Document:

Exhibit 4.5

                             FUNDS ESCROW AGREEMENT

This Agreement (this "AGREEMENT") is dated as of the 31 day of August 2006 among
TRINITY  LEARNING CORPORATION, a Utah corporation (the "COMPANY"), Laurus Master
Fund,  Ltd.  ("LAURUS"),  and  Loeb  &  Loeb  LLP  (the  "ESCROW  AGENT"):

                              W I T N E S S E T H:
                              - - - - - - - - - -

WHEREAS,  Laurus  has  advised  the Escrow Agent that (a) the Company and Laurus
have  entered  into a Security Agreement (the "SECURITY AGREEMENT") for the sale
by  the Company to Laurus of a secured term note (the "SECURED TERM NOTE") and a
secured  revolving  note  (the  "SECURED  REVOLVING  NOTE"), (b) the Company has
issued  to  Laurus  7%  convertible  preferred  stock  of  the  Company (the "7%
PREFERRED  STOCK")  in connection with the issuance of the Secured Term Note and
the  Secured  Revolving Note, and (c) the Company and Laurus have entered into a
Registration  Rights Agreement covering the registration of the Company's common
stock  underlying  the 7% Preferred Stock (the "REGISTRATION RIGHTS AGREEMENT");

WHEREAS,  the  Company  and Laurus wish to deliver to the Escrow Agent copies of
the  Documents  (as  hereafter  defined)  and, following the satisfaction of all
closing  conditions  relating  to  the Documents, Laurus to deliver the Escrowed
Payment  (as hereafter defined), in each case, to be held and released by Escrow
Agent  in  accordance  with  the  terms  and  conditions  of this Agreement; and

WHEREAS,  the  Escrow  Agent is willing to serve as escrow agent pursuant to the
terms  and  conditions  of  this  Agreement;

NOW  THEREFORE,  the  parties  agree  as  follows:

                                    ARTICLE I

                                 INTERPRETATION

1.1.     Definitions.  Whenever  used  in  this  Agreement,  the following terms
         -----------
shall  have  the  meanings  set  forth  below.

(a)     "AGREEMENT"  means  this  Agreement,  as  amended,  modified  and/or
supplemented  from  time  to time by written agreement among the parties hereto.

(b)     "DISBURSEMENT  LETTER" means that certain letter delivered to the Escrow
Agent  by the Company, acceptable in form and substance to Laurus, setting forth
wire  instructions  and  amounts  to  be  funded  at  the  Closing.

(c)     "DOCUMENTS"  means  copies  of  the  Disbursement  Letter,  the Security
Agreement,  the  Secured Term Note, the Secured Revolving Note, the 7% Preferred
Stock  and  the  Registration  Rights  Agreement.

(d)     "ESCROWED  PAYMENT"  means  $[7,500,000].

<PAGE>

(e)     "LCM PAYMENT" means the payment to be paid to Laurus Capital Management,
LLC,  the  fund  manager,  as  set  forth  on  Schedule  A  hereto.

1.2.     Entire  Agreement.  This  Agreement  constitutes  the  entire agreement
         -----------------
among  the  parties hereto with respect to the arrangement with the Escrow Agent
and  supersedes  all  prior  agreements,  understandings,  negotiations  and
discussions  of  the  parties,  whether  oral  or  written  with  respect to the
arrangement with the Escrow Agent.  There are no warranties, representations and
other agreements made by the parties in connection with the arrangement with the
Escrow  Agent  except  as  specifically  set  forth  in  this  Agreement.

1.3.     Extended  Meanings.  In  this  Agreement  words  importing the singular
         ------------------
number  include  the plural and vice versa; words importing the masculine gender
include  the  feminine  and  neuter  genders.  The  word  "PERSON"  includes  an
individual,  body  corporate,  partnership,  trustee  or trust or unincorporated
association,  executor,  administrator  or  legal  representative.

1.4.     Waivers  and  Amendments.  This  Agreement  may  be  amended, modified,
         ------------------------
superseded,  cancelled, renewed or extended, and the terms and conditions hereof
may  be  waived, in each case only by a written instrument signed by all parties
hereto, or, in the case of a waiver, by the party waiving compliance.  Except as
expressly  stated  herein,  no  delay on the part of any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof, nor shall
any  waiver  on the part of any party of any right, power or privilege hereunder
preclude  any  other  or  future exercise of any other right, power or privilege
hereunder.

1.5.     Headings.  The  division  of  this  Agreement  into articles, sections,
         --------
subsections  and paragraphs and the insertion of headings are for convenience of
reference  only  and shall not affect the construction or interpretation of this
Agreement.

1.6.     Law  Governing this Agreement; Consent to Jurisdiction.  THIS AGREEMENT
         ------------------------------------------------------
SHALL  BE  GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW  YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. With respect to any
suit,  action  or  proceeding  relating to this Agreement or to the transactions
contemplated  hereby  ("PROCEEDINGS"),  each party hereto irrevocably submits to
the exclusive jurisdiction of the courts of the County of New York, State of New
York  and  the United States District court located in the county of New York in
the State of New York.  Each party hereto hereby irrevocably and unconditionally
(a)  waives  trial  by jury in any Proceeding relating to this Agreement and for
any  related  counterclaim and (b) waives any objection which it may have at any
time  to the laying of venue of any Proceeding brought in any such court, waives
any  claim  that such Proceedings have been brought in an inconvenient forum and
further  waives the right to object, with respect to such Proceedings, that such
court  does  not  have jurisdiction over such party.  As between the Company and
Laurus,  the  prevailing party shall be entitled to recover from the other party
its  reasonable  attorneys'  fees and costs.  In the event that any provision of
this  Agreement is determined by a court of competent jurisdiction to be invalid
or unenforceable, then the remainder of this Agreement shall not be affected and
shall  remain  in  full  force  and  effect.

1.7.     Construction.  Each  party  acknowledges  that  its  legal  counsel
         ------------
participated  in  the  preparation  of this Agreement and, therefore, stipulates
that  the  rule  of  construction  that

<PAGE>

ambiguities  are  to be resolved against the drafting party shall not be applied
in  the  interpretation  of this Agreement to favor any party against the other.

                                   ARTICLE II

                APPOINTMENT OF AND DELIVERIES TO THE ESCROW AGENT

2.1.     Appointment.  The  Company  and Laurus hereby irrevocably designate and
         -----------
appoint  the  Escrow  Agent  as  their  escrow  agent for the purposes set forth
herein,  and  the  Escrow  Agent by its execution and delivery of this Agreement
hereby accepts such appointment under the terms and conditions set forth herein.

2.2.     Copies  of  Documents  to  Escrow  Agent.  On or about the date hereof,
         ----------------------------------------
Laurus and the Company shall deliver to the Escrow Agent copies of the Documents
executed  by  such  parties.

2.3.     Delivery  of  Escrowed  Payment  to  Escrow  Agent.  Following  the
         ---------------------------------------------------
satisfaction of all closing conditions relating to the Documents (other than the
         -
funding  of  the Escrowed Payment), Laurus shall deliver to the Escrow Agent the
Escrowed  Payment.  At  such  time,  the  Escrow  Agent  shall hold the Escrowed
Payment  as  agent  for the Company, subject to the terms and conditions of this
Agreement.

2.4.      Intention  to  Create Escrow Over the Escrowed Payment. Laurus and the
         -------------------------------------------------------
Company  intend  that the Escrowed Payment shall be held in escrow by the Escrow
Agent  and  released from escrow by the Escrow Agent only in accordance with the
terms  and  conditions  of  this  Agreement.

                                   ARTICLE III

                                RELEASE OF ESCROW

3.1.     Release  of  Escrow.  Subject  to  the  provisions  of Section 4.2, the
         -------------------
Escrow  Agent  shall  release  the  Escrowed  Payment  from  escrow  as follows:

(a)     Upon  receipt  by  the  Escrow Agent of (i) oral instructions from David
Grin and/or Eugene Grin (each of whom is a director of Laurus) consenting to the
release  of the Escrowed Payment from escrow in accordance with the Disbursement
Letter  following  the  Escrow Agent's receipt of the Escrowed Payment, (ii) the
Disbursement  Letter  signed  by  the Company, and (iii) the Escrowed Payment in
immediately available funds, the Escrowed Payment shall promptly be disbursed in
accordance  with the Disbursement Letter. The Disbursement Letter shall include,
without  limitation,  Escrow  Agent's  authorization to retain from the Escrowed
Payment  Escrow  Agent's  fee  for  acting as Escrow Agent hereunder and the LCM
Payment  for  delivery  to Laurus Capital Management, LLC in accordance with the
Disbursement  Letter.

(b)     Upon receipt by the Escrow Agent of a final and non-appealable judgment,
order,  decree  or  award of a court of competent jurisdiction (a "COURT ORDER")
relating  to  the  Escrowed  Payment,  the Escrow Agent shall remit the Escrowed
Payment

<PAGE>

in  accordance with the Court Order.  Any Court Order shall be accompanied by an
opinion  of counsel for the party presenting the Court Order to the Escrow Agent
(which opinion shall be satisfactory to the Escrow Agent) to the effect that the
court  issuing the Court Order is a court of competent jurisdiction and that the
Court  Order  is  final  and  non-appealable.

3.2.     Acknowledgement  of  the  Company andLaurus; Disputes.  The Company and
         -------------------------------------      ----------
Laurus  acknowledge  that  the only terms and conditions upon which the Escrowed
Payment  are  to be released from escrow are as set forth in Sections 3 and 4 of
this Agreement.  The Company and Laurus reaffirm their agreement to abide by the
terms  and  conditions  of  this  Agreement  with  respect to the release of the
Escrowed  Payment.  Any  dispute  with  respect  to  the release of the Escrowed
Payment  shall  be  resolved  pursuant  to  Section  4.2 or by written agreement
between  the  Company  and  Laurus.

                                   ARTICLE IV

                           CONCERNING THE ESCROW AGENT

4.1.     Duties  and  Responsibilities  of the Escrow Agent.  The Escrow Agent's
         --------------------------------------------------
duties  and  responsibilities  shall  be  subject  to  the  following  terms and
conditions:

(a)     Laurus  and  the Company acknowledge and agree that the Escrow Agent (i)
shall  not  be required to inquire into whether Laurus, the Company or any other
party  is  entitled  to  receipt  of  any  Document or all or any portion of the
Escrowed  Payment;  (ii)  shall  not  be  called  upon to construe or review any
Document  or  any  other  document,  instrument  or  agreement  entered  into in
connection  therewith; (iii) shall be obligated only for the performance of such
duties  as  are  specifically  assumed  by  the  Escrow  Agent  pursuant to this
Agreement;  (iv) may rely on and shall be protected in acting or refraining from
acting  upon  any written notice, instruction, instrument, statement, request or
document  furnished  to  it  hereunder  and believed by the Escrow Agent in good
faith to be genuine and to have been signed or presented by the proper person or
party,  without  being  required to determine the authenticity or correctness of
any fact stated therein or the propriety or validity or the service thereof; (v)
may  assume  that  any person purporting to give notice or make any statement or
execute  any  document  in  connection  with the provisions hereof has been duly
authorized  to  do so; (vi) shall not be responsible for the identity, authority
or  rights  of any person, firm or company executing or delivering or purporting
to  execute  or  deliver  this  Agreement or any Document or any funds deposited
hereunder  or  any endorsement thereon or assignment thereof; (vii) shall not be
under  any  duty to give the property held by Escrow Agent hereunder any greater
degree  of care than Escrow Agent gives its own similar property; and (viii) may
consult  counsel  satisfactory  to  Escrow Agent (including, without limitation,
Loeb  & Loeb, LLP or such other counsel of Escrow Agent's choosing), the opinion
of  such counsel to be full and complete authorization and protection in respect
of any action taken, suffered or omitted by Escrow Agent hereunder in good faith
and  in  accordance  with  the  opinion  of  such  counsel.

(b)     Laurus  and  the  Company  acknowledge  that  the Escrow Agent is acting
solely  as a stakeholder at their request and that the Escrow Agent shall not be
liable  for

<PAGE>

any  action  taken by Escrow Agent in good faith and believed by Escrow Agent to
be authorized or within the rights or powers conferred upon Escrow Agent by this
Agreement.  Laurus  and the Company hereby, jointly and severally, indemnify and
hold  harmless  the  Escrow Agent and any of Escrow Agent's partners, employees,
agents and representatives from and against any and all actions taken or omitted
to  be  taken  by  Escrow Agent or any of them hereunder and any and all claims,
losses, liabilities, costs, damages and expenses suffered and/or incurred by the
Escrow  Agent  arising  in  any  manner  whatsoever  out  of  the  transactions
contemplated by this Agreement and/or any transaction related in any way hereto,
including  the fees of outside counsel and other costs and expenses of defending
itself  against  any  claims,  losses,  liabilities, costs, damages and expenses
arising  in  any  manner  whatsoever  out  the transactions contemplated by this
Agreement  and/or  any  transaction  related  in any way hereto, except for such
claims,  losses,  liabilities, costs, damages and expenses incurred by reason of
the  Escrow  Agent's  gross  negligence or willful misconduct.  The Escrow Agent
shall  owe  a duty only to Laurus and the Company under this Agreement and to no
other  person.

(c)     Laurus  and the Company shall jointly and severally reimburse the Escrow
Agent  for  its reasonable out-of-pocket expenses (including counsel fees (which
counsel  may  be  Loeb  &  Loeb  LLP or such other counsel of the Escrow Agent's
choosing)  incurred  in  connection  with  the  performance  of  its  duties and
responsibilities  hereunder,  which shall not (subject to Section 4.1(b)) exceed
$2,000.

(d)     The  Escrow  Agent  may  at any time resign as Escrow Agent hereunder by
giving  five (5) business days prior written notice of resignation to Laurus and
the  Company.  Prior  to  the effective date of resignation as specified in such
notice,  Laurus  and  Company will issue to the Escrow Agent a joint instruction
authorizing  delivery  of the Documents and the Escrowed Payment to a substitute
Escrow  Agent  selected by Laurus and the Company.  If no successor Escrow Agent
is  named  by  Laurus  and the Company, the Escrow Agent may apply to a court of
competent  jurisdiction  in the State of New York for appointment of a successor
Escrow  Agent, and deposit the Documents and the Escrowed Payment with the clerk
of  any  such court, and/or otherwise commence an interpleader or similar action
for  a  determination  of  where  to  deposit  the  same.

(e)     The  Escrow  Agent  does  not have and will not have any interest in the
Documents  and the Escrowed Payment, but is serving only as escrow agent, having
only  possession  thereof.

(f)     The  Escrow Agent shall not be liable for any action taken or omitted by
it in good faith and reasonably believed by it to be authorized hereby or within
the  rights  or  powers  conferred  upon  it  hereunder, nor for action taken or
omitted  by  it  in  good faith, and in accordance with advice of counsel (which
counsel  may  be  Loeb  &  Loeb, LLP or such other counsel of the Escrow Agent's
choosing),  and shall not be liable for any mistake of fact or error of judgment
or for any acts or omissions of any kind except to the extent any such liability
arose  from  its  own  willful  misconduct  or  gross  negligence.

<PAGE>

(g)     This  Agreement  sets  forth  exclusively the duties of the Escrow Agent
with  respect  to any and all matters pertinent thereto and no implied duties or
obligations  shall  be  read  into  this  Agreement.

(h)     The  Escrow Agent shall be permitted to act as counsel for Laurus or the
Company,  as  the  case  may  be,  in  any  dispute as to the disposition of the
Documents  and the Escrowed Payment, in any other dispute between Laurus and the
Company,  whether  or  not the Escrow Agent is then holding the Documents and/or
the  Escrowed  Payment  and  continues  to  act  as  the Escrow Agent hereunder.

(i)     The  provisions of this Section 4.1 shall survive the resignation of the
Escrow  Agent  or  the  termination  of  this  Agreement.

4.2.     Dispute  Resolution;  Judgments.  Resolution  of disputes arising under
         -------------------------------
this  Agreement  shall  be  subject  to  the  following  terms  and  conditions:

(a)     If  any  dispute  shall  arise  with respect to the delivery, ownership,
right of possession or disposition of the Documents and/or the Escrowed Payment,
or  if  the  Escrow  Agent  shall in good faith be uncertain as to its duties or
rights  hereunder,  the  Escrow  Agent shall be authorized, without liability to
anyone, to (i) refrain from taking any action other than to continue to hold the
Documents  and  the Escrowed Payment pending receipt of a joint instruction from
Laurus and the Company, (ii) commence an interpleader or similar action, suit or
proceeding  for  the  resolution  of  any such dispute; and/or (iii) deposit the
Documents  and  the Escrowed Payment with any court of competent jurisdiction in
the State of New York, in which event the Escrow Agent shall give written notice
thereof to Laurus and the Company and shall thereupon be relieved and discharged
from  all further obligations pursuant to this Agreement.  The Escrow Agent may,
but  shall  be under no duty to, institute or defend any legal proceedings which
relate  to  the Documents and the Escrowed Payment.  The Escrow Agent shall have
the  right to retain counsel if it becomes involved in any disagreement, dispute
or  litigation  on  account of this Agreement or otherwise determines that it is
necessary  to  consult counsel which such counsel may be Loeb & Loeb LLP or such
other  counsel  of  the  Escrow  Agent's  choosing.

(b)     The  Escrow Agent is hereby expressly authorized to comply with and obey
any Court Order.  In case the Escrow Agent obeys or complies with a Court Order,
the  Escrow  Agent shall not be liable to Laurus and the Company or to any other
person,  firm,  company  or  entity  by  reason  of  such  compliance.

                                    ARTICLE V

                                 GENERAL MATTERS

5.1.     Termination.  This  escrow  shall  terminate  upon  disbursement of the
         -----------
Escrowed  Payment in accordance with the terms of this Agreement or earlier upon
the  agreement in writing of Laurus and the Company or resignation of the Escrow
Agent  in  accordance  with  the  terms  hereof.

<PAGE>
5.2.     Notices.  All  notices,  requests,  demands  and  other  communications
         -------
required  or permitted hereunder shall be in writing and shall be deemed to have
been duly given one (1) day after being sent by telecopy (with copy delivered by
overnight  courier,  regular  or  certified  mail):

(a)     If  to  the  Company,  to:

     TRINITY  LEARNING  CORPORATION
     4101  International  Parkway
     Carrollton,  Texas  75007
     Fax:  (972)  309-5105
     Attention:  Patrick  R.  Quinn

     With  a  copy  to:     Sichenzia  Ross  Friedman  Ference  LLP

     1065  Avenue  of  the  Americas,  21st  Floor
     New  York,  NY  10018
     Fax:  (212)  930-9725
     Attention:  Darrin  M.  Ocasio

(b)     If  to  Laurus,  to:     Laurus  Master  Fund,  Ltd.

     M&C  Corporate  Services  Limited,
     P.O.  Box  309  GT,  Ugland  House
     South  Church  Street,  George  Town
     Grand  Cayman,  Cayman  Islands
     Fax:     345-949-8080
     Attention:     John  Tucker,  Esq.

(c)     If  to  the  Escrow  Agent,  to:

     Loeb  &  Loeb  LLP
     345  Park  Avenue
     New  York,  New  York  10154
     Fax:     (212)  407-4990
     Attention:     Scott  J.  Giordano,  Esq.

or  to such other address as any of them shall give to the others by notice made
pursuant  to  this  Section  5.2.

5.3.     Interest.  The  Escrowed  Payment  shall  not  be  held  in an interest
         --------
bearing  account  nor  will  interest  be  payable  in  connection  therewith.

5.4.     Assignment; Binding Agreement.  Neither this Agreement nor any right or
         -----------------------------
obligation  hereunder shall be assignable by any party without the prior written
consent  of the other parties hereto.  This Agreement shall inure to the benefit
of  and  be  binding  upon  the  parties  hereto  and  their  respective  legal
representatives,  successors  and  assigns.

5.5.     Invalidity.  In  the  event  that  any  one  or  more of the provisions
         ----------
contained  herein,  or  the  application  thereof  in  any circumstance, is held
invalid,  illegal, or unenforceable in any respect for any reason, the validity,
legality  and enforceability of any such provision in every other respect and of
the  remaining  provisions  contained  herein  shall  not be in any way impaired
thereby,  it being intended that all of the rights and privileges of the parties
hereto  shall  be  enforceable  to  the  fullest  extent  permitted  by  law.

<PAGE>

5.6.     Counterparts/Execution.  This  Agreement  may be executed in any number
         ----------------------
of  counterparts  and  by different signatories hereto on separate counterparts,
each  of  which,  when  so  executed,  shall be deemed an original, but all such
counterparts  shall  constitute  but one and the same agreement.  This Agreement
may  be  executed  by  facsimile  transmission.

<PAGE>
IN  WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of the
date  and  year  first  above  written.

COMPANY:

TRINITY  LEARNING  CORPORATION

By:
Name:  Dennis  J.  Cagan
Title:  President  and  Chief  Executive  Officer

PURCHASER:

LAURUS  MASTER  FUND,  LTD.

By:
Name:
Title:

ESCROW  AGENT:

LOEB  &  LOEB  LLP

By:
Name:
Title:

<PAGE>

                      SCHEDULE A TO FUNDS ESCROW AGREEMENT

PURCHASER                                      PRINCIPAL NOTE AMOUNT
LAURUS MASTER FUND, LTD.,                      Secured Term Note in an aggregate
M&C Corporate Services Limited,                principal amount of $2,500,000;
P.O. Box 309 GT,                               and Secured Revolving Note
Ugland House, South Church Street,             in an aggregate principal
George Town, Grand Cayman, Cayman Islands      amount of $5,000,000.
Fax:     345-949-8080

TOTAL                                          $7,500,000

FUND MANAGER
                                               LCM PAYMENT
LAURUS CAPITAL MANAGEMENT, L.L.C.              Payment payable in connection
825 Third Avenue, 14th Floor                   with investment by Laurus
New York, New York 10022                       Master Fund, Ltd. for
Fax: 212-541-4434                              which Laurus Capital
                                               Management, L.L.C.
                                               is the Manager.
TOTAL                                          $270,000

7% PREFERRED STOCK

7% PREFERRED STOCK RECIPIENT
                                               7% PREFERRED STOCK IN
                                               CONNECTION WITH OFFERING
LAURUS MASTER FUND, LTD.                       1,500,000 shares of 7%
M&C Corporate Services Limited,                Preferred Stock convertible
P.O. Box 309 GT,                               into 15,000,000 shares
Ugland House, South Church Street,             of common stock of
George Town, Grand Cayman, Cayman Islands      the Company.
Fax:     345-949-8080
TOTAL                                          1,500,000 shares of 7% Preferred
                                               Stock convertible into 15,000,000
                                               shares of common stock of the
                                               CompanyExhibit 4.7

                          REGISTRATION RIGHTS AGREEMENT

This  Registration  Rights Agreement (this "Agreement") is made and entered into
as  of  August  31,  2006,  by  and between Trinity Learning Corporation, a Utah
corporation  (the  "Company"),  and  Laurus  Master  Fund,  Ltd.  ("Laurus").

This  Agreement is made pursuant to the Security Agreement, dated as of the date
hereof,  by  and  between  Laurus  and  the  Company  (as  amended,  modified or
supplemented  from  time to time, the "Security Agreement"), and pursuant to the
7%  Preferred  Stock  referred  to  therein.

The  Company  and  Laurus  hereby  agree  as  follows:

1.     DEFINITIONS.  Capitalized  terms  used  and  not otherwise defined herein
that  are  defined  in the Security Agreement shall have the meanings given such
terms in the Security Agreement.  As used in this Agreement, the following terms
shall  have  the  following  meanings:

"Commission"  means  the  Securities  and  Exchange  Commission.

"Common  Stock"  means  shares  of  the Company's common stock, no par value per
share.

"Effectiveness  Date"  means  (i)  with  respect  to  the  initial  Registration
Statement  required  to  be  filed  hereunder,  a date no later than one hundred
eighty  (180)  days  following  the  date  hereof  and (ii) with respect to each
additional  Registration  Statement  required  to  be filed hereunder, a date no
later  than  thirty  (30)  days  following  the  applicable  Filing  Date.

"Effectiveness  Period"  has  the  meaning  set  forth  in  Section  2(a).

"Exchange  Act"  means  the Securities Exchange Act of 1934, as amended, and any
successor  statute.

"Filing  Date" means, with respect to (i) the Registration Statement required to
be  filed  hereunder  in  respect  of  the  shares of Common Stock issuable upon
conversion  of  the  7%  Preferred Stock issued as of the date hereof, a date no
later  than  sixty  (60)  days following the date hereof, and (ii) the shares of
Common  Stock  issuable  to  the  Holder as a result of adjustments to the Fixed
Conversion  Price  made  pursuant to the 7% Preferred Stock or otherwise, thirty
(30)  days  after the occurrence such event or the date of the adjustment of the
Fixed  Conversion  Price.

"Fixed  Conversion  Price"  means  $0.10.

"Holder"  or  "Holders"  means Laurus or any of its affiliates or transferees to
the  extent any of them hold Registrable Securities, other than those purchasing
Registrable  Securities  in  a  market  transaction.

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

<PAGE>

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

"Note"  has  the  meaning  set  forth  in  the  Security  Agreement.

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

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

"Registrable  Securities"  means  the  shares  of  Common  Stock  issuable  upon
conversion  of  the  7%  Preferred  Stock.

"Registration  Statement" means each registration statement required to be filed
hereunder,  including the Prospectus therein, amendments and supplements to such
registration  statement  or  Prospectus,  including  pre-  and  post-effective
amendments,  all exhibits thereto, and all material incorporated by reference or
deemed  to  be  incorporated  by  reference  in  such  registration  statement.

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

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

"Securities Act" means the Securities Act of 1933, as amended, and any successor
statute.

"Security  Agreement" has the meaning given to such term in the Preamble hereto.

"7% Preferred Stock" means 1,500,000 shares of preferred stock, no par value per
share,  issued  by  the  Company  in  connection  with  the  Security Agreement.

"Trading  Market"  means any of the NASD Over-The-Counter Bulletin Board, NASDAQ
Capital  Market, the NASDAQ National Markets System, the American Stock Exchange
or  the  New  York  Stock  Exchange.

<PAGE>

2.     Registration.

(a)     On  or  prior to the Filing Date the Company shall prepare and file with
the  Commission a Registration Statement covering the Registrable Securities for
a  selling stockholder resale offering to be made on a continuous basis pursuant
to  Rule  415.  The  Registration Statement shall be on Form SB-2 (except if the
Company  is  not then eligible to register for resale the Registrable Securities
on  Form  SB-2,  in which case such registration shall be on another appropriate
form  in  accordance  herewith).  The  Company  shall  cause  each  Registration
Statement  to  become  effective  and  remain effective as provided herein.  The
Company  shall  use  its best efforts to cause each Registration Statement to be
declared  effective  under  the Securities Act as promptly as possible after the
filing  thereof,  but  in  any  event no later than the Effectiveness Date.  The
Company  shall  use  its reasonable commercial efforts to keep each Registration
Statement  continuously  effective under the Securities Act until the date which
is  the  earlier  date  of when (i) all Registrable Securities have been sold or
(ii)  all  Registrable  Securities covered by such Registration Statement may be
sold  immediately  without  registration  under  the  Securities Act and without
volume restrictions pursuant to Rule 144(k), as determined by the counsel to the
Company  pursuant  to  a  written  opinion  letter to such effect, addressed and
acceptable  to  the  Company's  transfer  agent  and  the  affected Holders (the
"Effectiveness  Period").

(b)     If:  (i)  the  Registration  Statement  is  not filed on or prior to the
Filing  Date;  (ii)  the Registration Statement is not declared effective by the
Commission  by the Effectiveness Date; (iii) after the Registration Statement is
filed  with and declared effective by the Commission, the Registration Statement
ceases  to  be  effective  (by  suspension  or  otherwise) as to all Registrable
Securities to which it is required to relate at any time prior to the expiration
of  the  Effectiveness  Period  (without  being  succeeded  immediately  by  an
additional  registration statement filed and declared effective) for a period of
time  which  shall  exceed  30  days  in  the aggregate per year or more than 20
consecutive  calendar  days  (defined  as a period of 365 days commencing on the
date the Registration Statement is declared effective); or (iv) the Common Stock
is  not listed or quoted, or is suspended from trading on any Trading Market for
a  period  of three (3) consecutive Trading Days (provided the Company shall not
have  been  able  to  cure  such trading suspension within 30 days of the notice
thereof  or  list the Common Stock on another Trading Market); (any such failure
or  breach  being  referred  to as an "Event," and for purposes of clause (i) or
(ii)  the  date  on which such Event occurs, or for purposes of clause (iii) the
date  which  such  30  day  or 20 consecutive day period (as the case may be) is
exceeded,  or  for  purposes  of  clause  (iv)  the date on which such three (3)
Trading  Day  period is exceeded, being referred to as "Event Date"), then until
the applicable Event is cured, the Company shall pay to each Holder an amount in
cash,  as liquidated damages and not as a penalty, equal to 1.0% for each thirty
(30)  day period (prorated for partial periods) on a daily basis of the original
principal  amount  of  the  Note; provided that, the maximum aggregate amount of
liquidated  damages  that may be charged to the Company pursuant to this Section
2(b)  shall  not  exceed  10%  of the Total Investment Amount.  While such Event
continues, such liquidated damages shall be paid not less often than each thirty
(30)  days.  Any  unpaid  liquidated  damages  as  of the date when an Event has

<PAGE>

been cured by the Company shall be paid within three (3) days following the date
on  which  such  Event  has  been  cured  by  the  Company.

(c)     Within  three business days of the Effectiveness Date, the Company shall
cause  its  counsel  to  issue  a blanket opinion in the form attached hereto as
Exhibit  A,  to  the  transfer  agent  stating that the shares are subject to an
effective  registration statement and can be reissued free of restrictive legend
upon  notice of a sale by Laurus and confirmation by Laurus that it has complied
with  the  prospectus  delivery  requirements, provided that the Company has not
advised  the  transfer  agent  orally  or  in  writing that the opinion has been
withdrawn.  Copies of the blanket opinion required by this Section 2(c) shall be
delivered  to  Laurus  within  the  time  frame  set  forth  above.

3.     REGISTRATION  PROCEDURES.  If and whenever the Company is required by the
provisions hereof to effect the registration of any Registrable Securities under
the  Securities  Act,  the  Company  will,  as  expeditiously  as  possible:

(a)     prepare  and  file  with  the  Commission  a Registration Statement with
respect  to  such Registrable Securities, respond as promptly as possible to any
comments  received  from  the  Commission, and use its best efforts to cause the
Registration  Statement  to  become  and  remain effective for the Effectiveness
Period  with  respect  thereto,  and  promptly  provide  to Laurus copies of all
filings  and  Commission  letters  of  comment  relating  thereto;

(b)     prepare  and file with the Commission such amendments and supplements to
the  Registration  Statement  and the Prospectus used in connection therewith as
may  be  necessary  to  comply  with  the  provisions of the Securities Act with
respect  to  the  disposition  of  all  Registrable  Securities  covered by such
Registration  Statement  and to keep such Registration Statement effective until
the  expiration  of  the  Effectiveness  Period  applicable to such Registration
Statement;

(c)     furnish  to  Laurus  such number of copies of the Registration Statement
and  the  Prospectus included therein (including each preliminary Prospectus) as
Laurus  reasonably  may  request to facilitate the public sale or disposition of
the  Registrable  Securities  covered  by  the  Registration  Statement;

(d)     use  its  best  efforts  to  register  or  qualify  Laurus'  Registrable
Securities  covered by such Registration Statement under the securities or "blue
sky"  laws  of  such  jurisdictions  within  the  United  States  as  Laurus may
reasonably  request,  provided, however, that the Company shall not for any such
purpose  be  required  to  qualify  generally  to transact business as a foreign
corporation  in  any  jurisdiction where it is not so qualified or to consent to
general  service  of  process  in  any  such  jurisdiction;

(e)     list  the  Registrable Securities covered by such Registration Statement
with  any  securities  exchange on which the Common Stock of the Company is then
listed;

(f)     immediately notify Laurus at any time when a Prospectus relating thereto
is  required  to  be delivered under the Securities Act, of the happening of any
event  of

<PAGE>

which the Company has knowledge as a result of which the Prospectus contained in
such  Registration Statement, as then in effect, includes an untrue statement of
a  material fact or omits to state a material fact required to be stated therein
or  necessary  to  make  the  statements  therein not misleading in light of the
circumstances  then  existing;  and

(g)     make  available for inspection by Laurus and any attorney, accountant or
other  agent  retained  by  Laurus,  all  publicly  available,  non-confidential
financial and other records, pertinent corporate documents and properties of the
Company, and cause the Company's officers, directors and employees to supply all
publicly  available,  non-confidential  information  reasonably requested by the
attorney,  accountant  or  agent  of  Laurus.

4.     REGISTRATION EXPENSES.  All expenses relating to the Company's compliance
with  Sections  2  and 3 hereof, including, without limitation, all registration
and  filing  fees,  printing  expenses,  fees  and  disbursements of counsel and
independent  public  accountants  for  the Company, fees and expenses (including
reasonable  counsel  fees)  incurred  in  connection  with  complying with state
securities  or  "blue  sky"  laws,  fees  of  the  NASD, transfer taxes, fees of
transfer  agents  and  registrars,  fees  of, and disbursements incurred by, one
counsel  for  the  Holders,  are  called  "Registration  Expenses".  All selling
commissions applicable to the sale of Registrable Securities, including any fees
and disbursements of any special counsel to the Holders beyond those included in
Registration Expenses, are called "Selling Expenses."  The Company shall only be
responsible  for  all  Registration  Expenses.

5.     INDEMNIFICATION.

(a)     In  the  event of a registration of any Registrable Securities under the
Securities  Act  pursuant to this Agreement, the Company will indemnify and hold
harmless  Laurus, and its officers, directors and each other person, if any, who
controls  Laurus  within  the meaning of the Securities Act, against any losses,
claims,  damages  or  liabilities,  joint  or  several, to which Laurus, or such
persons  may  become  subject  under the Securities Act or otherwise, insofar as
such  losses,  claims,  damages  or  liabilities (or actions in respect thereof)
arise  out of or are based upon any untrue statement or alleged untrue statement
of  any  material  fact contained in any Registration Statement under which such
Registrable Securities were registered under the Securities Act pursuant to this
Agreement,  any preliminary Prospectus or final Prospectus contained therein, or
any  amendment  or  supplement  thereof,  or  arise out of or are based upon the
omission  or  alleged  omission  to state therein a material fact required to be
stated  therein  or necessary to make the statements therein not misleading, and
will  reimburse  Laurus,  and each such person for any reasonable legal or other
expenses incurred by them in connection with investigating or defending any such
loss,  claim,  damage,  liability or action; provided, however, that the Company
                                             --------  -------
will  not  be  liable  in any such case if and to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged  untrue  statement or omission or alleged omission so made in conformity
with  information  furnished  by  or  on  behalf of Laurus or any such person in
writing  specifically  for  use  in  any  such  document.

<PAGE>

(b)     In  the  event of a registration of the Registrable Securities under the
Securities  Act  pursuant  to  this  Agreement,  Laurus  will indemnify and hold
harmless the Company, and its officers, directors and each other person, if any,
who  controls  the Company within the meaning of the Securities Act, against all
losses,  claims,  damages or liabilities, joint or several, to which the Company
or  such  persons  may  become  subject  under  the Securities Act or otherwise,
insofar  as  such  losses, claims, damages or liabilities (or actions in respect
thereof)  arise  out of or are based upon any untrue statement or alleged untrue
statement  of  any material fact which was furnished in writing by Laurus to the
Company  expressly  for  use  in  (and  such  information  is  contained in) the
Registration  Statement  under which such Registrable Securities were registered
under  the Securities Act pursuant to this Agreement, any preliminary Prospectus
or  final  Prospectus contained therein, or any amendment or supplement thereof,
or  arise  out  of  or  are based upon the omission or alleged omission to state
therein  a  material fact required to be stated therein or necessary to make the
statements  therein not misleading, and will reimburse the Company and each such
person for any reasonable legal or other expenses incurred by them in connection
with  investigating  or  defending  any  such  loss, claim, damage, liability or
action,  provided,  however,  that Laurus will be liable in any such case if and
         --------   -------
only  to the extent that any such loss, claim, damage or liability arises out of
or  is based upon an untrue statement or alleged untrue statement or omission or
alleged  omission so made in conformity with information furnished in writing to
the Company by or on behalf of Laurus specifically for use in any such document.
Notwithstanding  the  provisions of this paragraph, Laurus shall not be required
to  indemnify  any person or entity in excess of the amount of the aggregate net
proceeds  received  by Laurus in respect of Registrable Securities in connection
with  any  such  registration  under  the  Securities  Act.

(c)     Promptly  after  receipt  by  a  party entitled to claim indemnification
hereunder  (an "Indemnified Party") of notice of the commencement of any action,
such  Indemnified Party shall, if a claim for indemnification in respect thereof
is  to  be  made  against a party hereto obligated to indemnify such Indemnified
Party  (an  "Indemnifying  Party"),  notify  the  Indemnifying  Party in writing
thereof,  but the omission so to notify the Indemnifying Party shall not relieve
it  from  any  liability  which it may have to such Indemnified Party other than
under  this  Section  5(c) and shall only relieve it from any liability which it
may  have to such Indemnified Party under this Section 5(c) if and to the extent
the  Indemnifying  Party is prejudiced by such omission. In case any such action
shall  be  brought  against  any  Indemnified  Party  and  it  shall  notify the
Indemnifying  Party of the commencement thereof, the Indemnifying Party shall be
entitled  to  participate  in  and,  to  the extent it shall wish, to assume and
undertake  the  defense  thereof  with  counsel satisfactory to such Indemnified
Party,  and,  after notice from the Indemnifying Party to such Indemnified Party
of its election so to assume and undertake the defense thereof, the Indemnifying
Party  shall not be liable to such Indemnified Party under this Section 5(c) for
any legal expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof; if the Indemnified Party retains its own counsel, then
the  Indemnified  Party  shall pay all fees, costs and expenses of such counsel,
provided,  however,  that, if the defendants in any such action include both the
  ------   -------
Indemnified  Party  and  the  Indemnifying Party and the Indemnified Party shall
have  reasonably  concluded  that

<PAGE>

there  may  be  reasonable  defenses available to it which are different from or
additional  to  those available to the Indemnifying Party or if the interests of
the Indemnified Party reasonably may be deemed to conflict with the interests of
the Indemnifying Party, the Indemnified Party shall have the right to select one
separate  counsel and to assume such legal defenses and otherwise to participate
in  the  defense  of  such action, with the reasonable expenses and fees of such
separate  counsel  and  other  expenses  related  to  such  participation  to be
reimbursed  by  the  Indemnifying  Party  as  incurred.

(d)     In  order to provide for just and equitable contribution in the event of
joint liability under the Securities Act in any case in which either (i) Laurus,
or  any  officer,  director  or  controlling person of Laurus, makes a claim for
indemnification  pursuant  to this Section 5 but it is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction and
the expiration of time to appeal or the denial of the last right of appeal) that
such  indemnification  may not be enforced in such case notwithstanding the fact
that  this  Section  5  provides  for  indemnification  in  such  case,  or (ii)
contribution  under  the Securities Act may be required on the part of Laurus or
such  officer,  director  or  controlling  person of Laurus in circumstances for
which  indemnification  is provided under this Section 5; then, and in each such
case,  the  Company  and Laurus will contribute to the aggregate losses, claims,
damages  or  liabilities  to  which they may be subject (after contribution from
others)  in  such  proportion so that Laurus is responsible only for the portion
represented  by  the percentage that the public offering price of its securities
offered  by the Registration Statement bears to the public offering price of all
securities  offered  by such Registration Statement, provided, however, that, in
                                                     --------  -------
any  such  case,  (A)  Laurus  will  not be required to contribute any amount in
excess  of  the  public  offering  price  of  all  such securities offered by it
pursuant  to  such Registration Statement; and (B) no person or entity guilty of
fraudulent  misrepresentation  (within  the meaning of Section 10(f) of the Act)
will be entitled to contribution from any person or entity who was not guilty of
such  fraudulent  misrepresentation.

6.     REPRESENTATIONS  AND  WARRANTIES.

(a)     The Common Stock is registered pursuant to Section 12(b) or 12(g) of the
Exchange  Act  and, except with respect to certain matters which the Company has
disclosed  to Laurus on Schedule 4.21 to the Security Agreement, the Company has
timely  filed  all  proxy  statements, reports, schedules, forms, statements and
other  documents required to be filed by it under the Exchange Act.  The Company
has  filed  (i)  its Annual Report on Form 10-KSB for its fiscal year ended June
30,  2005  and  (ii) its Quarterly Report on Form 10-QSB for the fiscal quarters
ended  September  30,  2005, December 31, 2005 and March 31, 2006 (collectively,
the  "SEC  Reports").  Each  SEC  Report  was,  at  the  time  of its filing, in
substantial  compliance with the requirements of its respective form and none of
the  SEC  Reports, nor the financial statements (and the notes thereto) included
in  the  SEC  Reports, as of their respective filing dates, contained any untrue
statement  of a material fact or omitted to state a material fact required to be
stated  therein  or  necessary  to  make the statements therein, in light of the
circumstances  under  which

<PAGE>

they  were  made,  not  misleading.  The  financial  statements  of  the Company
included  in  the  SEC  Reports  comply as to form in all material respects with
applicable  accounting  requirements  and the published rules and regulations of
the  Commission  or other applicable rules and regulations with respect thereto.
Such  financial  statements  have  been  prepared  in  accordance with generally
accepted accounting principles ("GAAP") applied on a consistent basis during the
periods  involved  (except  (i)  as may be otherwise indicated in such financial
statements  or  the  notes  thereto  or  (ii)  in  the case of unaudited interim
statements,  to  the  extent they may not include footnotes or may be condensed)
and fairly present in all material respects the financial condition, the results
of  operations  and  the  cash  flows  of the Company and its subsidiaries, on a
consolidated  basis,  as  of,  and  for,  the periods presented in each such SEC
Report.

(b)     The  Common Stock is listed or quoted, as applicable, for trading on the
NASDAQ  Over  The  Counter Bulletin Board and satisfies all requirements for the
continuation  of such listing or quotation, as applicable, and the Company shall
do  all  things  necessary for the continuation of such listing or quotation, as
applicable.  The  Company has not received any notice that its Common Stock will
be  delisted  from or no longer be quoted on, as applicable, the NASDAQ Over The
Counter Bulletin Board (except for prior notices which have been fully remedied)
or  that the Common Stock does not meet all requirements for the continuation of
such  listing  or  quotation,  as  applicable.

(c)     Neither the Company, nor any of its affiliates, nor any person acting on
its  or their behalf, has directly or indirectly made any offers or sales of any
security  or  solicited  any offers to buy any security under circumstances that
would cause the offering of the Securities pursuant to the Security Agreement to
be integrated with prior offerings by the Company for purposes of the Securities
Act  which  would  prevent the Company from selling the Common Stock pursuant to
Rule  506  under  the  Securities  Act,  or  any  applicable  exchange-related
stockholder  approval  provisions, nor will the Company or any of its affiliates
or  subsidiaries  take  any action or steps that would cause the offering of the
Securities  to  be  integrated  with  other  offerings.

(d)     The  7%  Preferred Stock and the shares of Common Stock which Laurus may
acquire  pursuant  to the 7% Preferred Stock are all restricted securities under
the Securities Act as of the date of this Agreement.  The Company will not issue
any  stop transfer order or other order impeding the sale and delivery of any of
the  Registrable  Securities  at  such  time  as such Registrable Securities are
registered  for  public  sale  or  an  exemption from registration is available,
except  as  required  by  federal  or  state  securities  laws.

(e)     The  Company  understands  the  nature  of  the  Registrable  Securities
issuable  upon  conversion  of  the  7%  Preferred Stock and recognizes that the
issuance  of  such  Registrable Securities may have a potential dilutive effect.
The  Company  specifically  acknowledges  that  its  obligation  to  issue  the
Registrable Securities is binding upon the Company and enforceable regardless of
the  dilution  such  issuance  may  have  on  the  ownership  interests of other
shareholders  of  the  Company.

<PAGE>

(f)     Except  for agreements made in the ordinary course of business, there is
no  agreement  that  has  not  been filed with the Commission as an exhibit to a
registration  statement  or  to a form required to be filed by the Company under
the  Exchange  Act,  the  breach of which could reasonably be expected to have a
material  and  adverse  effect  on  the  Company  and its subsidiaries, or would
prohibit  or  otherwise  interfere with the ability of the Company to enter into
and perform any of its obligations under this Agreement in any material respect.

(g)     Except as set forth on Schedule 6(g), the Company will at all times have
authorized  and  reserved  a sufficient number of shares of Common Stock for the
full  conversion  of  the  7%  Preferred  Stock.

(h)     The  Company  shall  provide  written  notice  to each Holder of (i) the
occurrence  of  each  Discontinuation  Event  (as  defined  below)  and (ii) the
declaration  of effectiveness by the SEC of each Registration Statement required
to  be  filed hereunder, in each case within one (1) business day of the date of
each  such  occurrence  and/or  declaration.

7.     MISCELLANEOUS.

(a)     REMEDIES.  In  the  event  of a breach by the Company or by a Holder, of
any  of  their  respective  obligations under this Agreement, each Holder or the
Company,  as  the  case  may  be,  in addition to being entitled to exercise all
rights  granted  by law and under this Agreement, including recovery of damages,
will  be  entitled  to  specific performance of its rights under this Agreement.

(b)     NO PIGGYBACK ON REGISTRATIONS.  Except as and to the extent specified in
Schedule 7(b) hereto, neither the Company nor any of its security holders (other
than the Holders in such capacity pursuant hereto) may include securities of the
Company in any Registration Statement other than the Registrable Securities, and
the  Company  shall not after the date hereof enter into any agreement providing
any  such  right for inclusion of shares in the Registration Statement to any of
its  security  holders.  Except  as and to the extent specified in Schedule 7(b)
hereto,  the  Company has not previously entered into any agreement granting any
registration  rights  with  respect  to  any  of its securities to any person or
entity  that  have  not  been  fully  satisfied.

(c)     COMPLIANCE.  Each  Holder  covenants and agrees that it will comply with
the  prospectus  delivery requirements of the Securities Act as applicable to it
in  connection with sales of Registrable Securities pursuant to the Registration
Statement.

(d)     DISCONTINUED DISPOSITION.  Each Holder agrees by its acquisition of such
Registrable  Securities  that,  upon receipt of a notice from the Company of the
occurrence  of  a  Discontinuation  Event  (as  defined below), such Holder will
forthwith  discontinue  disposition  of  such  Registrable  Securities under the
applicable  Registration  Statement until such Holder's receipt of the copies of
the supplemented Prospectus and/or amended Registration Statement or until it is
advised  in writing (the "Advice") by the Company that the use of the applicable
Prospectus  may  be  resumed,  and,  in  either  case,  has

<PAGE>

received  copies of any additional or supplemental filings that are incorporated
or  deemed  to  be  incorporated by reference in such Prospectus or Registration
Statement.  The  Company  may  provide  appropriate  stop  orders to enforce the
provisions  of  this  paragraph.  For  purposes  of  this  Agreement,  a
"Discontinuation  Event" shall mean (i) when the Commission notifies the Company
whether there will be a "review" of such Registration Statement and whenever the
Commission comments in writing on such Registration Statement (the Company shall
provide  true  and  complete copies thereof and all written responses thereto to
each of the Holders); (ii) any request by the Commission or any other Federal or
state  governmental authority for amendments or supplements to such Registration
Statement or Prospectus or for additional information; (iii) the issuance by the
Commission  of  any stop order suspending the effectiveness of such Registration
Statement covering any or all of the Registrable Securities or the initiation of
any  Proceedings  for  that  purpose;  (iv)  the  receipt  by the Company of any
notification  with  respect  to the suspension of the qualification or exemption
from  qualification  of  any  of  the  Registrable  Securities  for  sale in any
jurisdiction,  or  the  initiation  or  threatening  of  any Proceeding for such
purpose;  and/or  (v)  the occurrence of any event or passage of time that makes
the  financial statements included in such Registration Statement ineligible for
inclusion  therein  or  any  statement  made  in  such Registration Statement or
Prospectus  or any document incorporated or deemed to be incorporated therein by
reference  untrue in any material respect or that requires any revisions to such
Registration  Statement,  Prospectus  or other documents so that, in the case of
such  Registration  Statement  or  Prospectus,  as  the case may be, it will not
contain  any  untrue  statement of a material fact or omit to state any material
fact  required to be stated therein or necessary to make the statements therein,
in  light  of  the  circumstances  under  which  they were made, not misleading.

(e)     PIGGY-BACK REGISTRATIONS.  If at any time after the date hereof there is
not  an  effective  Registration  Statement  covering  all  of  the  Registrable
Securities  required  to be covered hereunder and the Company shall determine to
prepare  and  file  with  the Commission a registration statement relating to an
offering  for  its own account or the account of others under the Securities Act
of  any  of  its  equity securities, other than on Form S-4 or Form S-8 (each as
promulgated  under  the  Securities  Act)  or their then equivalents relating to
equity  securities to be issued solely in connection with any acquisition of any
entity or business or equity securities issuable in connection with stock option
or  other  employee  benefit  plans,  then the Company shall send to each Holder
written  notice  of  such  determination  and, if within fifteen (15) days after
receipt of such notice, any such Holder shall so request in writing, the Company
shall include in such registration statement all or any part of such Registrable
Securities  such  Holder requests to be registered to the extent the Company may
do so without violating registration rights of others which exist as of the date
of  this  Agreement, subject to customary underwriter cutbacks applicable to all
holders  of registration rights and subject to obtaining any required consent of
any  selling stockholder(s) to such inclusion under such registration statement.

(f)     AMENDMENTS AND WAIVERS.  The provisions of this Agreement, including the
provisions  of  this sentence, may not be amended, modified or supplemented, and

<PAGE>

waivers  or  consents to departures from the provisions hereof may not be given,
unless the same shall be in writing and signed by the Company and the Holders of
the  then  outstanding Registrable Securities.  Notwithstanding the foregoing, a
waiver  or consent to depart from the provisions hereof with respect to a matter
that  relates  exclusively  to  the  rights of certain Holders and that does not
directly  or  indirectly  affect  the  rights  of  other Holders may be given by
Holders  of  at  least  a  majority  of the Registrable Securities to which such
waiver  or  consent  relates;  provided,  however,  that  the provisions of this
                               --------   -------
sentence may not be amended, modified, or supplemented except in accordance with
the  provisions  of  the  immediately  preceding  sentence.

(g)     NOTICES.  Any notice or request hereunder may be given to the Company or
Laurus  at  the  respective  addresses  set  forth  below or as may hereafter be
specified in a notice designated as a change of address under this Section 7(g).
Any  notice or request hereunder shall be given by registered or certified mail,
return  receipt  requested,  hand  delivery,  overnight mail, Federal Express or
other  national overnight next day carrier (collectively, "Courier") or telecopy
(confirmed  by  mail).  Notices  and  requests shall be, in the case of those by
hand  delivery, deemed to have been given when delivered to any party to whom it
is  addressed,  in  the  case of those by mail or overnight mail, deemed to have
been  given three (3) business days after the date when deposited in the mail or
with the overnight mail carrier, in the case of a Courier, the next business day
following timely delivery of the package with the Courier, and, in the case of a
telecopy, when confirmed.  The address for such notices and communications shall
be  as  follows:

If  to  the  Company:

Trinity  Learning  Corporation
4101  International  Parkway
Carrollton,  TX  75007

Attention:     Chief  Financial  Officer
Facsimile:     (972)  309-5105

with  a  copy  to:

Sichenzia  Ross  Friedman  Ference  LLP
1065  Avenue  of  the  Americas
21st  Floor
New  York,  NY  10018

Attention:     Darrin  M.  Ocasio
Facsimile:     (212)  930-9725

If  to  a  Laurus:     To  the  address  set forth under such Laurus name on the
signature  pages  hereto.

If  to  any  other  Person  who  is
then  the  registered Holder:     To the address of such Holder as it appears in
the  stock  transfer  books  of  the  Company

or  such  other  address as may be designated in writing hereafter in accordance
with  this  Section  7(g)  by  such  Person.

<PAGE>

(h)     SUCCESSORS  AND  ASSIGNS.  This  Agreement shall inure to the benefit of
and  be binding upon the successors and permitted assigns of each of the parties
and  shall  inure to the benefit of each Holder.  The Company may not assign its
rights  or  obligations  hereunder  without  the  prior  written consent of each
Holder.  Each  Holder may assign their respective rights hereunder in the manner
and  to  the  persons  and  entities  as permitted under the 7% Preferred Stock.

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

(j)     GOVERNING  LAW,  JURISDICTION  AND WAIVER OF JURY TRIAL.  THIS AGREEMENT
SHALL  BE  GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE  STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE,
WITHOUT  REGARD  TO PRINCIPLES OF CONFLICTS OF LAW.  The Company hereby consents
and  agrees  that the state or federal courts located in the County of New York,
State  of  New  York shall have exclusion jurisdiction to hear and determine any
Proceeding  between the Company, on the one hand, and Laurus, on the other hand,
pertaining  to this Agreement or to any matter arising out of or related to this
Agreement;  provided,  that  Laurus and the Company acknowledge that any appeals
            --------
from  those courts may have to be heard by a court located outside of the County
of  New  York,  State  of  New  York, and further provided, that nothing in this
                                          ------- --------
Agreement  shall  be  deemed  or  operate  to  preclude  Laurus  from bringing a
Proceeding  in  any other jurisdiction to collect the obligations, to realize on
the  Collateral  or  any  other  security  for  the obligations, or to enforce a
judgment or other court order in favor of Laurus.  The Company expressly submits
and  consents in advance to such jurisdiction in any Proceeding commenced in any
such  court, and the Company hereby waives any objection which it may have based
upon lack of personal jurisdiction, improper venue or forum non conveniens.  The
                                                      --------------------
Company  hereby  waives  personal  service  of  the summons, complaint and other
process  issued  in any such Proceeding and agrees that service of such summons,
complaint  and  other  process  may  be  made  by  registered  or certified mail
addressed  to  the  Company  at  the  address set forth in Section 7(g) and that
service  so  made  shall  be  deemed completed upon the earlier of the Company's
actual receipt thereof or three (3) days after deposit in the U.S. mails, proper
postage prepaid.  The parties hereto desire that their disputes be resolved by a
judge applying such applicable laws.  Therefore, to achieve the best combination
of  the  benefits  of the judicial system and of arbitration, the parties hereto
waive  all  rights  to  trial  by  jury in any Proceeding brought to resolve any
dispute,  whether  arising in contract, tort, or otherwise between Laurus and/or
the  Company  arising  out  of,  connected  with,  related  or incidental to the
relationship  established  between  then  in connection with this Agreement.  If
either  party  hereto  shall  commence a Proceeding to enforce any provisions of
this  Agreement,  the  Security  Agreement  or  any  other  Ancillary

<PAGE>

Agreement,  then  the prevailing party in such Proceeding shall be reimbursed by
the  other party for its reasonable attorneys' fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such Proceeding.

(k)     CUMULATIVE  REMEDIES.  The  remedies  provided herein are cumulative and
not  exclusive  of  any  remedies  provided  by  law.

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

(m)     HEADINGS.  The  headings  in  this  Agreement  are  for  convenience  of
reference  only  and  shall  not  limit  or otherwise affect the meaning hereof.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

<PAGE>
IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
as  of  the  date  first  written  above.

TRINITY  LEARNING  CORPORATION     LAURUS  MASTER  FUND,  LTD.

   By:________________                By:________________
 Name:________________              Name:________________
Title:________________             Title:________________

     Address  for  Notices:

     Laurus  Master  Fund,  Ltd.
     c/o  M&C  Corporate  Services  Limited
     P.O.  Box  309  GT
     Ugland  House
     George  Town
     South  Church  Street
     Grand  Cayman,  Cayman  Islands
     Facsimile:  345-949-8080

     with  copy  to:

     Laurus  Capital  Management,  LLC
     825  Third  Avenue,  17th  Floor
     New  York,  NY  10022
     Attention:  Portfolio  Services
     Facsimile:  212-541-4410

<PAGE>

                                    EXHIBIT A

                             [__________ __, 200__]

Standard  Registrar  &  Transfer
Attn:  Ron  Harrington
12528  So.  1840  East
Draper,  Utah  84020
Attn:  Ron  Harrington

Re:     Trinity  Learning  Corporation  Registration  Statement  on  Form  SB-2
        -----------------------------------------------------------------------

Ladies  and  Gentlemen:

As  counsel to Trinity Learning Corporation, a Utah corporation (the "Company"),
we  have  been  requested  to  render  our opinion to you in connection with the
resale  by the individuals or entitles listed on Schedule A attached hereto (the
"Selling  Stockholders"), of an aggregate of __________ shares (the "Shares") of
the  Company's  Common  Stock.

A  Registration  Statement  on  Form  SB-2  under the Securities Act of 1933, as
amended  (the  "Act"),  with  respect  to  the resale of the Shares was declared
effective  by the Securities and Exchange Commission on [date].  Enclosed is the
Prospectus  dated  [date].  We  understand that the Shares are to be offered and
sold  in  the  manner  described  in  the  Prospectus.

Based  upon  the foregoing, upon request by the Selling Stockholders at any time
while  the  registration statement remains effective, it is our opinion that the
Shares  have  been  registered  for  resale  under  the Act and new certificates
evidencing  the  Shares  upon  their  transfer or re-registration by the Selling
Stockholders  may  be  issued without restrictive legend.  We will advise you if
the  registration  statement  is  not available or effective at any point in the
future.

Very  truly  yours,

[Company  counsel]

<PAGE>

                             SCHEDULE A TO EXHIBIT A

                                        Shares
                      Selling Stockholder     Being Offered
                      -------------------     -------------

<PAGE>

                                  SCHEDULE 6(G)
                                  -------------

                           RESERVATION OF COMMON STOCK
                           ---------------------------

As  of  August31,  2006,the  Company  does  not  have  the  requisite  number of
------------------------
authorized  Common  Stock  in  order to reserve a sufficient number of shares of
---------
Common  Stock for the full conversion of the 7% Preferred Stock. The Company has
---
filed  a  definitive  Proxy  Statement  (the "Proxy") on Schedule 14(a) with the
Securities and Exchange Commission (the "SEC") on August 18, 2006 and subject to
obtaining  Shareholder Approval at the Special Meeting of stockholders scheduled
for  September  26,  2006,  intends  to  take  all necessary actions in order to
increase  its  authorized  common  stock  from 100,000,000 shares to 750,000,000
shares.  For more information, please see the Proxy filed with the SEC on August
18,  2006.

Also  see  Stockholder  Approval  as  defined in the Security Agreement of equal
date.

<PAGE>

                                  SCHEDULE 7(B)
                                  -------------

                          PIGGYBACK REGISTRATION RIGHTS
                          -----------------------------

The  Parent owes Registration Rights to Palisades Master Fund LP pursuant to the
Registration  Rights  Agreement  entered  into with Palisades on March 31, 2006.

In  connection with a bridge funding in March 2005, the Parent offered piggyback
registration rights to three investors holding an aggregate of 937,500 shares of
Common  Stock.  In  addition, the Parent notified certain of its warrant holders
that  the  shares  underlying  their  warrants  would  be registered in the next
applicable  registration  statements.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]