Document:

EXHIBIT 10.3

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                 To Purchase 3,476,190 Shares of Common Stock of

                           NEW CENTURY COMPANIES, INC.

         THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for
value received, CAMOFI MASTER LDC (the "Holder"), is entitled, upon the terms
and subject to the limitations on exercise and the conditions hereinafter set
forth, at any time on or after the date hereof (the "Initial Exercise Date") and
on or prior to the close of business on February 28, 2013, the seven year
anniversary of the Initial Exercise Date (the "Termination Date") but not
thereafter, to subscribe for and purchase from New Century Companies, Inc., a
Delaware corporation (the "Company"), 3,476,190 shares (the "Warrant Shares") of
Common Stock, $0.10 par value, of the Company (the "Common Stock"). The purchase
price of one share of Common Stock under this Warrant shall be equal to the
Exercise Price, as defined in Section 2(b).

Section 1.        Definitions. Capitalized terms used and not otherwise
                  defined herein shall have the meanings set forth in that
                  certain Securities Purchase Agreement (the "Purchase
                  Agreement"), dated February 28, 2006, between the Company and
                  the purchaser signatory thereto.

Section 2.        Exercise.
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                  a)       Exercise of Warrant. Exercise of the purchase rights
                           represented by this Warrant may be made at any time
                           or times on or after the Initial Exercise Date and on
                           or before the Termination Date by delivery to the
                           Company of a duly executed facsimile copy of the
                           Notice of Exercise Form annexed hereto (or such other
                           office or agency of the Company as it may designate
                           by notice in writing to the registered Holder at the
                           address of such Holder appearing on the books of the
                           Company); provided, however, within 5 Trading Days of
                           the date said Notice of Exercise is delivered to the
                           Company, the Holder shall have surrendered this
                           Warrant to the Company and the Company shall have
                           received payment of the aggregate Exercise Price of
                           the shares thereby purchased by wire transfer or
                           cashier's check drawn on a United States bank.
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                  b)       Exercise Price. The exercise price of the Common
                           Stock under this Warrant shall be $0.63 (the
                           "Exercise Price"). The Exercise Price shall be
                           subject to adjustment pursuant to Section 3 hereof.

                  c)       Cashless Exercise. In the event that there is no
                           effective registration statement covering the resale
                           of the shares underlying this Warrant, this Warrant
                           may also be exercised by means of a "cashless
                           exercise" in which the Holder shall be entitled to
                           receive a certificate for the number of Warrant
                           Shares equal to the quotient obtained by dividing
                           [(A-B) (X)] by (A), where:

                           (A)      = the VWAP on the Trading Day immediately
                                    preceding the date of such election;

                           (B)      = the Exercise Price of this Warrant, as
                                    adjusted; and

                           (X)      = the number of Warrant Shares issuable upon
                                    exercise of this Warrant in accordance with
                                    the terms of this Warrant by means of a cash
                                    exercise rather than a cashless exercise.

                  d)       Exercise Limitations; Holder's Restrictions. The
                           Holder shall not have the right to exercise any
                           portion of this Warrant, pursuant to Section 2(c) or
                           otherwise, to the extent that after giving effect to
                           such issuance after exercise, the Holder (together
                           with the Holder's affiliates), as set forth on the
                           applicable Notice of Exercise, would beneficially own
                           in excess of 4.99% of the number of shares of the
                           Common Stock outstanding immediately after giving
                           effect to such issuance. For purposes of the
                           foregoing sentence, the number of shares of Common
                           Stock beneficially owned by the Holder and its
                           affiliates shall include the number of shares of
                           Common Stock issuable upon exercise of this Warrant
                           with respect to which the determination of such
                           sentence is being made, but shall exclude the number
                           of shares of Common Stock which would be issuable
                           upon (A) exercise of the remaining, nonexercised
                           portion of this Warrant beneficially owned by the
                           Holder or any of its affiliates and (B) exercise or
                           conversion of the unexercised or nonconverted portion
                           of any other securities of the Company (including,
                           without limitation, any other Notes or Warrants)
                           subject to a limitation on conversion or exercise
                           analogous to the limitation contained herein
                           beneficially owned by the Holder or any of its
                           affiliates. Except as set forth in the preceding
                           sentence, for purposes of this Section 2(d),
                           beneficial ownership shall be calculated in
                           accordance with Section 13(d) of the Exchange Act, it
                           being acknowledged by Holder that the Company is not
                           representing to Holder that such calculation is in
                           compliance with Section 13(d) of the Exchange Act and
                           Holder is solely responsible for any schedules
                           required to be filed in accordance therewith. To the
                           extent that the limitation contained in this Section
                           2(d) applies, the determination of whether this
                           Warrant is exercisable (in relation to other
                           securities owned by the Holder) and of which a
                           portion of this Warrant is exercisable shall be in
                           the sole discretion of such Holder, and the
                           submission of a Notice of Exercise shall be deemed to
                           be such Holder's determination of whether this
                           Warrant is exercisable (in relation to other
                           securities owned by such Holder) and of which portion
                           of this Warrant is exercisable, in each case subject
                           to such aggregate percentage limitation, and the
                           Company shall have no obligation to verify or confirm
                           the accuracy of such determination. For purposes of

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                           this Section 2(d), in determining the number of
                           outstanding shares of Common Stock, the Holder may
                           rely on the number of outstanding shares of Common
                           Stock as reflected in (x) the Company's most recent
                           Form 10-QSB or Form 10-KSB (or similar form), as the
                           case may be, (y) a more recent public announcement by
                           the Company or (z) any other notice by the Company or
                           the Company's Transfer Agent setting forth the number
                           of shares of Common Stock outstanding. Upon the
                           written or oral request of the Holder, the Company
                           shall within two Trading Days confirm orally and in
                           writing to the Holder the number of shares of Common
                           Stock then outstanding. In any case, the number of
                           outstanding shares of Common Stock shall be
                           determined after giving effect to the conversion or
                           exercise of securities of the Company, including this
                           Warrant, by the Holder or its affiliates since the
                           date as of which such number of outstanding shares of
                           Common Stock was reported. The provisions of this
                           Section 2(d) may be waived by the Holder upon, at the
                           election of the Holder, not less than 61 days' prior
                           notice to the Company, and the provisions of this
                           Section 2(d) shall continue to apply until such 61st
                           day (or such later date, as determined by the Holder,
                           as may be specified in such notice of waiver).

                  e)       Mechanics of Exercise.

                           i)       Authorization of Warrant Shares. The Company
                                    covenants that all Warrant Shares which may
                                    be issued upon the exercise of the purchase
                                    rights represented by this Warrant will,
                                    upon exercise of the purchase rights
                                    represented by this Warrant, be duly
                                    authorized, validly issued, fully paid and
                                    nonassessable and free from all taxes, liens
                                    and charges in respect of the issue thereof
                                    (other than taxes in respect of any transfer
                                    occurring contemporaneously with such
                                    issue). The Company covenants that during
                                    the period the Warrant is outstanding, it
                                    will reserve from its authorized and
                                    unissued Common Stock a sufficient number of
                                    shares to provide for the issuance of the
                                    Warrant Shares upon the exercise of any
                                    purchase rights under this Warrant. The
                                    Company further covenants that its issuance
                                    of this Warrant shall constitute full
                                    authority to its officers who are charged
                                    with the duty of executing stock
                                    certificates to execute and issue the
                                    necessary certificates for the Warrant
                                    Shares upon the exercise of the purchase
                                    rights under this Warrant. The Company will
                                    take all such reasonable action as may be
                                    necessary to assure that such Warrant Shares
                                    may be issued as provided herein without
                                    violation of any applicable law or
                                    regulation, or of any requirements of the
                                    Trading Market upon which the Common Stock
                                    may be listed.

                           ii)      Delivery of Certificates Upon Exercise.
                                    Certificates for shares purchased hereunder
                                    shall be transmitted by the transfer agent
                                    of the Company to the Holder by crediting
                                    the account of the Holder's prime broker
                                    with the Depository Trust Company through
                                    its Deposit Withdrawal Agent Commission
                                    ("DWAC") system if the Company is a
                                    participant in such system, and otherwise by
                                    physical delivery to the address specified
                                    by the Holder in the Notice of Exercise
                                    within 3 Trading Days from the delivery to
                                    the Company of the Notice of Exercise Form,
                                    surrender of this Warrant and payment of the
                                    aggregate Exercise Price as set forth above
                                    ("Warrant Share Delivery Date"). This
                                    Warrant shall be deemed to have been
                                    exercised on the date the Exercise Price is

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                                    received by the Company. The Warrant Shares
                                    shall be deemed to have been issued, and
                                    Holder or any other person so designated to
                                    be named therein shall be deemed to have
                                    become a holder of record of such shares for
                                    all purposes, as of the date the Warrant has
                                    been exercised by payment to the Company of
                                    the Exercise Price and all taxes required to
                                    be paid by the Holder, if any, pursuant to
                                    Section 2(e)(vii) prior to the issuance of
                                    such shares, have been paid.

                           iii)     Delivery of New Warrants Upon Exercise. If
                                    this Warrant shall have been exercised in
                                    part, the Company shall, at the time of
                                    delivery of the certificate or certificates
                                    representing Warrant Shares, deliver to
                                    Holder a new Warrant evidencing the rights
                                    of Holder to purchase the unpurchased
                                    Warrant Shares called for by this Warrant,
                                    which new Warrant shall in all other
                                    respects be identical with this Warrant.

                           iv)      Rescission Rights. If the Company fails to
                                    cause its transfer agent to transmit to the
                                    Holder a certificate or certificates
                                    representing the Warrant Shares pursuant to
                                    this Section 2(e)(iv) by the Warrant Share
                                    Delivery Date, then the Holder will have the
                                    right to rescind such exercise.

                           v)       Compensation for Buy-In on Failure to Timely
                                    Deliver Certificates Upon Exercise. In
                                    addition to any other rights available to
                                    the Holder, if the Company fails to cause
                                    its transfer agent to transmit to the Holder
                                    a certificate or certificates representing
                                    the Warrant Shares pursuant to an exercise
                                    on or before the Warrant Share Delivery
                                    Date, and if after such date the Holder is
                                    required by its broker to purchase (in an
                                    open market transaction or otherwise) shares
                                    of Common Stock to deliver in satisfaction
                                    of a sale by the Holder of the Warrant
                                    Shares which the Holder anticipated
                                    receiving upon such exercise (a "Buy-In"),
                                    then the Company shall (1) pay in cash to
                                    the Holder the amount by which (x) the
                                    Holder's total purchase price (including
                                    brokerage commissions, if any) for the
                                    shares of Common Stock so purchased exceeds
                                    (y) the amount obtained by multiplying (A)
                                    the number of Warrant Shares that the
                                    Company was required to deliver to the
                                    Holder in connection with the exercise at
                                    issue times (B) the price at which the sell
                                    order giving rise to such purchase
                                    obligation was executed, and (2) at the
                                    option of the Holder, either reinstate the
                                    portion of the Warrant and equivalent number
                                    of Warrant Shares for which such exercise
                                    was not honored or deliver to the Holder the
                                    number of shares of Common Stock that would
                                    have been issued had the Company timely
                                    complied with its exercise and delivery
                                    obligations hereunder. For example, if the
                                    Holder purchases Common Stock having a total
                                    purchase price of $11,000 to cover a Buy-In
                                    with respect to an attempted exercise of
                                    shares of Common Stock with an aggregate
                                    sale price giving rise to such purchase
                                    obligation of $10,000, under clause (1) of

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                                    the immediately preceding sentence the
                                    Company shall be required to pay the Holder
                                    $1,000. The Holder shall provide the Company
                                    written notice indicating the amounts
                                    payable to the Holder in respect of the
                                    Buy-In, together with applicable
                                    confirmations and other evidence reasonably
                                    requested by the Company. Nothing herein
                                    shall limit a Holder's right to pursue any
                                    other remedies available to it hereunder, at
                                    law or in equity including, without
                                    limitation, a decree of specific performance
                                    and/or injunctive relief with respect to the
                                    Company's failure to timely deliver
                                    certificates representing shares of Common
                                    Stock upon exercise of the Warrant as
                                    required pursuant to the terms hereof.

                           vi)      No Fractional Shares or Scrip. No fractional
                                    shares or scrip representing fractional
                                    shares shall be issued upon the exercise of
                                    this Warrant. As to any fraction of a share
                                    which Holder would otherwise be entitled to
                                    purchase upon such exercise, the Company
                                    shall pay a cash adjustment in respect of
                                    such final fraction in an amount equal to
                                    such fraction multiplied by the Exercise
                                    Price.

                           vii)     Charges, Taxes and Expenses. Issuance of
                                    certificates for Warrant Shares shall be
                                    made without charge to the Holder for any
                                    issue or transfer tax or other incidental
                                    expense in respect of the issuance of such
                                    certificate, all of which taxes and expenses
                                    shall be paid by the Company, and such
                                    certificates shall be issued in the name of
                                    the Holder or in such name or names as may
                                    be directed by the Holder; provided,
                                    however, that in the event certificates for
                                    Warrant Shares are to be issued in a name
                                    other than the name of the Holder, this
                                    Warrant when surrendered for exercise shall
                                    be accompanied by the Assignment Form
                                    attached hereto duly executed by the Holder;
                                    and the Company may require, as a condition
                                    thereto, the payment of a sum sufficient to
                                    reimburse it for any transfer tax incidental
                                    thereto.

                           viii)    Closing of Books. The Company will not close
                                    its stockholder books or records in any
                                    manner which prevents the timely exercise of
                                    this Warrant, pursuant to the terms hereof.

Section 3. Certain Adjustments.

         a)       Stock Dividends and Splits. If the Company, at any time while
                  this Warrant is outstanding: (A) pays a stock dividend or
                  otherwise make a distribution or distributions on shares of
                  its Common Stock or any other equity or equity equivalent
                  securities payable in shares of Common Stock (which, for
                  avoidance of doubt, shall not include any shares of Common
                  Stock issued by the Company pursuant to this Warrant), (B)
                  subdivides outstanding shares of Common Stock into a larger
                  number of shares, (C) combines (including by way of reverse
                  stock split) outstanding shares of Common Stock into a smaller
                  number of shares, or (D) issues by reclassification of shares
                  of the Common Stock any shares of capital stock of the
                  Company, then in each case the Exercise Price shall be
                  multiplied by a fraction of which the numerator shall be the
                  number of shares of Common Stock (excluding treasury shares,
                  if any) outstanding before such event and of which the
                  denominator shall be the number of shares of Common Stock
                  outstanding after such event and the number of shares issuable
                  upon exercise of this Warrant shall be proportionately
                  adjusted. Any adjustment made pursuant to this Section 3(a)
                  shall become effective immediately after the record date for
                  the determination of stockholders entitled to receive such
                  dividend or distribution and shall become effective
                  immediately after the effective date in the case of a
                  subdivision, combination or re-classification.

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         b)       Subsequent Equity Sales. If the Company or any Subsidiary
                  thereof, as applicable, at any time while this Warrant is
                  outstanding, shall offer, sell, grant any option to purchase
                  or offer, sell or grant any right to reprice its securities,
                  or otherwise dispose of or issue (or announce any offer, sale,
                  grant or any option to purchase or other disposition) any
                  Common Stock or Common Stock Equivalents entitling any Person
                  to acquire shares of Common Stock, at an effective price per
                  share less than the then Exercise Price (such lower price, the
                  "Base Share Price" and such issuances collectively, a
                  "Dilutive Issuance"), as adjusted hereunder (if the holder of
                  the Common Stock or Common Stock Equivalents so issued shall
                  at any time, whether by operation of purchase price
                  adjustments, reset provisions, floating conversion, exercise
                  or exchange prices or otherwise, or due to warrants, options
                  or rights per share which is issued in connection with such
                  issuance, be entitled to receive shares of Common Stock at an
                  effective price per share which is less than the Exercise
                  Price, such issuance shall be deemed to have occurred for less
                  than the Exercise Price), then, the Exercise Price shall be
                  reduced to equal the Base Share Price and the number of
                  Warrant Shares issuable hereunder shall be increased such that
                  the aggregate Exercise Price payable hereunder, after taking
                  into account the decrease in the Exercise Price, shall be
                  equal to the aggregate Exercise Price prior to such
                  adjustment. Such adjustment shall be made whenever such Common
                  Stock or Common Stock Equivalents are issued. Such adjustment
                  shall be made whenever such Common Stock or Common Stock
                  Equivalents are issued. The Company shall notify the Holder in
                  writing, no later than the Trading Day following the issuance
                  of any Common Stock or Common Stock Equivalents subject to
                  this section, indicating therein the applicable issuance
                  price, or of applicable reset price, exchange price,
                  conversion price and other pricing terms (such notice the
                  "Dilutive Issuance Notice"). For purposes of clarification,
                  whether or not the Company provides a Dilutive Issuance Notice
                  pursuant to this Section 3(b), upon the occurrence of any
                  Dilutive Issuance, after the date of such Dilutive Issuance
                  the Holder is entitled to receive a number of Warrant Shares
                  based upon the Base Share Price regardless of whether the
                  Holder accurately refers to the Base Share Price in the Notice
                  of Exercise.

         c)       Pro Rata Distributions. If the Company, at any time prior to
                  the Termination Date, shall distribute to all holders of
                  Common Stock (and not to Holders of the Warrants) evidences of
                  its indebtedness or assets or rights or warrants to subscribe
                  for or purchase any security other than the Common Stock
                  (which shall be subject to Section 3(b)), then in each such
                  case the Exercise Price shall be adjusted by multiplying the
                  Exercise Price in effect immediately prior to the record date
                  fixed for determination of stockholders entitled to receive
                  such distribution by a fraction of which the denominator shall
                  be the VWAP determined as of the record date mentioned above,
                  and of which the numerator shall be such VWAP on such record
                  date less the then per share fair market value at such record
                  date of the portion of such assets or evidence of indebtedness
                  so distributed applicable to one outstanding share of the
                  Common Stock as determined by the Board of Directors in good

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                  faith. In either case the adjustments shall be described in a
                  statement provided to the Holders of the portion of assets or
                  evidences of indebtedness so distributed or such subscription
                  rights applicable to one share of Common Stock. Such
                  adjustment shall be made whenever any such distribution is
                  made and shall become effective immediately after the record
                  date mentioned above.

         d)       Calculations. All calculations under this Section 3 shall be
                  made to the nearest cent or the nearest 1/100th of a share, as
                  the case may be. The number of shares of Common Stock
                  outstanding at any given time shall not includes shares of
                  Common Stock owned or held by or for the account of the
                  Company, and the description of any such shares of Common
                  Stock shall be considered on issue or sale of Common Stock.
                  For purposes of this Section 3, the number of shares of Common
                  Stock deemed to be issued and outstanding as of a given date
                  shall be the sum of the number of shares of Common Stock
                  (excluding treasury shares, if any) issued and outstanding.

         e)       Notice to Holders.

                           i. Adjustment to Exercise Price. Whenever the
                  Exercise Price is adjusted pursuant to this Section 3, the
                  Company shall promptly mail to each Holder a notice setting
                  forth the Exercise Price after such adjustment and setting
                  forth a brief statement of the facts requiring such
                  adjustment. If the Company issues a variable rate security,
                  despite the prohibition thereon in the Purchase Agreement, the
                  Company shall be deemed to have issued Common Stock or Common
                  Stock Equivalents at the lowest possible conversion or
                  exercise price at which such securities may be converted or
                  exercised in the case of a Variable Rate Transaction (as
                  defined in the Purchase Agreement), or the lowest possible
                  adjustment price in the case of an MFN Transaction (as defined
                  in the Purchase Agreement.

                           ii. Notice to Allow Exercise by Holder. If (A) the
                  Company shall declare a dividend (or any other distribution)
                  on the Common Stock; (B) the Company shall declare a special
                  nonrecurring cash dividend on or a redemption of the Common
                  Stock; (C) the Company shall authorize the granting to all
                  holders of the Common Stock rights or warrants to subscribe
                  for or purchase any shares of capital stock of any class or of
                  any rights; (D) the approval of any stockholders of the
                  Company shall be required in connection with any
                  reclassification of the Common Stock, any consolidation or
                  merger to which the Company is a party, any sale or transfer
                  of all or substantially all of the assets of the Company, of
                  any compulsory share exchange whereby the Common Stock is
                  converted into other securities, cash or property; (E) the
                  Company shall authorize the voluntary or involuntary
                  dissolution, liquidation or winding up of the affairs of the
                  Company; then, in each case, the Company shall cause to be
                  mailed to the Holder at its last addresses as it shall appear
                  upon the Warrant Register of the Company, at least 20 calendar
                  days prior to the applicable record or effective date
                  hereinafter specified, a notice stating (x) the date on which
                  a record is to be taken for the purpose of such dividend,
                  distribution, redemption, rights or warrants, or if a record
                  is not to be taken, the date as of which the holders of the
                  Common Stock of record to be entitled to such dividend,
                  distributions, redemption, rights or warrants are to be

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                  determined or (y) the date on which such reclassification,
                  consolidation, merger, sale, transfer or share exchange is
                  expected to become effective or close, and the date as of
                  which it is expected that holders of the Common Stock of
                  record shall be entitled to exchange their shares of the
                  Common Stock for securities, cash or other property
                  deliverable upon such reclassification, consolidation, merger,
                  sale, transfer or share exchange; provided, that the failure
                  to mail such notice or any defect therein or in the mailing
                  thereof shall not affect the validity of the corporate action
                  required to be specified in such notice. The Holder is
                  entitled to exercise this Warrant during the 20-day period
                  commencing the date of such notice to the effective date of
                  the event triggering such notice.

         f)       Fundamental Transaction. If, at any time while this Warrant is
                  outstanding, (A) the Company effects any merger or
                  consolidation of the Company with or into another Person, (B)
                  the Company effects any sale of all or substantially all of
                  its assets in one or a series of related transactions, (C) any
                  tender offer or exchange offer (whether by the Company or
                  another Person) is completed pursuant to which holders of
                  Common Stock are permitted to tender or exchange their shares
                  for other securities, cash or property, or (D) the Company
                  effects any reclassification of the Common Stock or any
                  compulsory share exchange pursuant to which the Common Stock
                  is effectively converted into or exchanged for other
                  securities, cash or property (in any such case, a "Fundamental
                  Transaction"), then, upon any subsequent conversion of this
                  Warrant, the Holder shall have the right to receive, for each
                  Warrant Share that would have been issuable upon such exercise
                  absent such Fundamental Transaction, at the option of the
                  Holder, (a) upon exercise of this Warrant, the number of
                  shares of Common Stock of the successor or acquiring
                  corporation or of the Company, if it is the surviving
                  corporation, and Alternate Consideration receivable upon or as
                  a result of such reorganization, reclassification, merger,
                  consolidation or disposition of assets by a Holder of the
                  number of shares of Common Stock for which this Warrant is
                  exercisable immediately prior to such event or (b) cash equal
                  to the value of this Warrant as determined in accordance with
                  the Black-Scholes option pricing formula (the "Alternate
                  Consideration"). For purposes of any such exercise, the
                  determination of the Exercise Price shall be appropriately
                  adjusted to apply to such Alternate Consideration based on the
                  amount of Alternate Consideration issuable in respect of one
                  share of Common Stock in such Fundamental Transaction, and the
                  Company shall apportion the Exercise Price among the Alternate
                  Consideration in a reasonable manner reflecting the relative
                  value of any different components of the Alternate
                  Consideration. If holders of Common Stock are given any choice
                  as to the securities, cash or property to be received in a
                  Fundamental Transaction, then the Holder shall be given the
                  same choice as to the Alternate Consideration it receives upon
                  any exercise of this Warrant following such Fundamental
                  Transaction. To the extent necessary to effectuate the
                  foregoing provisions, any successor to the Company or
                  surviving entity in such Fundamental Transaction shall issue
                  to the Holder a new warrant consistent with the foregoing
                  provisions and evidencing the Holder's right to exercise such
                  warrant into Alternate Consideration. The terms of any
                  agreement pursuant to which a Fundamental Transaction is
                  effected shall include terms requiring any such successor or
                  surviving entity to comply with the provisions of this
                  paragraph (f) and insuring that this Warrant (or any such
                  replacement security) will be similarly adjusted upon any
                  subsequent transaction analogous to a Fundamental Transaction.

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         g)       Exempt Issuance. Notwithstanding the foregoing, no
                  adjustments, Alternate Consideration nor notices shall be
                  made, paid or issued under this Section 3 in respect of an
                  Exempt Issuance.

         h)       Voluntary Adjustment By Company. The Company may at any time
                  during the term of this Warrant reduce the then current
                  Exercise Price to any amount and for any period of time deemed
                  appropriate by the Board of Directors of the Company.

         Section  4. Transfer of Warrant.

         a)       Transferability. Subject to compliance with any applicable
                  securities laws and the conditions set forth in Sections 5(a)
                  and 4(d) hereof and to the provisions of Section 4.1 of the
                  Purchase Agreement, this Warrant and all rights hereunder are
                  transferable, in whole or in part, upon surrender of this
                  Warrant at the principal office of the Company, together with
                  a written assignment of this Warrant substantially in the form
                  attached hereto duly executed by the Holder or its agent or
                  attorney and funds sufficient to pay any transfer taxes
                  payable upon the making of such transfer. Upon such surrender
                  and, if required, such payment, the Company shall execute and
                  deliver a new Warrant or Warrants in the name of the assignee
                  or assignees and in the denomination or denominations
                  specified in such instrument of assignment, and shall issue to
                  the assignor a new Warrant evidencing the portion of this
                  Warrant not so assigned, and this Warrant shall promptly be
                  cancelled. A Warrant, if properly assigned, may be exercised
                  by a new holder for the purchase of Warrant Shares without
                  having a new Warrant issued.

         b)       New Warrants. This Warrant may be divided or combined with
                  other Warrants upon presentation hereof at the aforesaid
                  office of the Company, together with a written notice
                  specifying the names and denominations in which new Warrants
                  are to be issued, signed by the Holder or its agent or
                  attorney. Subject to compliance with Section 4(a), as to any
                  transfer which may be involved in such division or
                  combination, the Company shall execute and deliver a new
                  Warrant or Warrants in exchange for the Warrant or Warrants to
                  be divided or combined in accordance with such notice.

         c)       Warrant Register. The Company shall register this Warrant,
                  upon records to be maintained by the Company for that purpose
                  (the "Warrant Register"), in the name of the record Holder
                  hereof from time to time. The Company may deem and treat the
                  registered Holder of this Warrant as the absolute owner hereof
                  for the purpose of any exercise hereof or any distribution to
                  the Holder, and for all other purposes, absent actual notice
                  to the contrary.

         d)       Transfer Restrictions. If, at the time of the surrender of
                  this Warrant in connection with any transfer of this Warrant,
                  the transfer of this Warrant shall not be registered pursuant
                  to an effective registration statement under the Securities
                  Act and under applicable state securities or blue sky laws,
                  the Company may require, as a condition of allowing such
                  transfer (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 shall be in form, substance and scope
                  customary for opinions of counsel in comparable transactions)
                  to the effect that such transfer may be made without
                  registration under the Securities Act and under applicable

                                    9 of 15
<PAGE>

                  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)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
                  promulgated under the Securities Act or a qualified
                  institutional buyer as defined in Rule 144A(a) under the
                  Securities Act.

         Section  5. Miscellaneous.

         a)       Title to Warrant. Prior to the Termination Date and subject to
                  compliance with applicable laws and Section 4 of this Warrant,
                  this Warrant and all rights hereunder are transferable, in
                  whole or in part, at the office or agency of the Company by
                  the Holder in person or by duly authorized attorney, upon
                  surrender of this Warrant together with the Assignment Form
                  annexed hereto properly endorsed. The transferee shall sign an
                  investment letter in form and substance reasonably
                  satisfactory to the Company.

         b)       No Rights as Shareholder Until Exercise. This Warrant does not
                  entitle the Holder to any voting rights or other rights as a
                  shareholder of the Company prior to the exercise hereof. Upon
                  the surrender of this Warrant and the payment of the aggregate
                  Exercise Price (or by means of a cashless exercise), the
                  Warrant Shares so purchased shall be and be deemed to be
                  issued to such Holder as the record owner of such shares as of
                  the close of business on the later of the date of such
                  surrender or payment.

         c)       Loss, Theft, Destruction or Mutilation of Warrant. The Company
                  covenants that upon receipt by the Company of evidence
                  reasonably satisfactory to it of the loss, theft, destruction
                  or mutilation of this Warrant or any stock certificate
                  relating to the Warrant Shares, and in case of loss, theft or
                  destruction, of indemnity or security reasonably satisfactory
                  to it (which, in the case of the Warrant, shall not include
                  the posting of any bond), and upon surrender and cancellation
                  of such Warrant or stock certificate, if mutilated, the
                  Company will make and deliver a new Warrant or stock
                  certificate of like tenor and dated as of such cancellation,
                  in lieu of such Warrant or stock certificate.

         d)       Saturdays, Sundays, Holidays, etc. If the last or appointed
                  day for the taking of any action or the expiration of any
                  right required or granted herein shall be a Saturday, Sunday
                  or a legal holiday, then such action may be taken or such
                  right may be exercised on the next succeeding day not a
                  Saturday, Sunday or legal holiday.

         e)       Authorized Shares. The Company covenants that during the
                  period the Warrant is outstanding, it will
                  reserve from its authorized and unissued Common Stock a
                  sufficient number of shares to provide for the issuance of the
                  Warrant Shares upon the exercise of any purchase rights under
                  this Warrant. The Company further covenants that its issuance
                  of this Warrant shall constitute full authority to its
                  officers who are charged with the duty of executing stock
                  certificates to execute and issue the necessary certificates
                  for the Warrant Shares upon the exercise of the purchase
                  rights under this Warrant. The Company will take all such
                  reasonable action as may be necessary to assure that such
                  Warrant Shares may be issued as provided herein without
                  violation of any applicable law or regulation, or of any
                  requirements of the Trading Market upon which the Common Stock
                  may be listed.

                                    10 of 15
<PAGE>

                  Except and to the extent as waived or consented to by the
                  Holder, the Company shall not by any action, including,
                  without limitation, amending its certificate of incorporation
                  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 of
                  this Warrant, but will at all times in good faith assist in
                  the carrying out of all such terms and in the taking of all
                  such actions as may be necessary or appropriate to protect the
                  rights of Holder as set forth in this Warrant against
                  impairment. Without limiting the generality of the foregoing,
                  the Company will (a) not increase the par value of any Warrant
                  Shares above the amount payable therefor upon such exercise
                  immediately prior to such increase in par value, (b) take all
                  such action as may be necessary or appropriate in order that
                  the Company may validly and legally issue fully paid and
                  nonassessable Warrant Shares upon the exercise of this
                  Warrant, and (c) use commercially reasonable efforts to obtain
                  all such authorizations, exemptions or consents from any
                  public regulatory body having jurisdiction thereof as may be
                  necessary to enable the Company to perform its obligations
                  under this Warrant.

                  Before taking any action which would result in an adjustment
                  in the number of Warrant Shares for which this Warrant is
                  exercisable or in the Exercise Price, the Company shall obtain
                  all such authorizations or exemptions thereof, or consents
                  thereto, as may be necessary from any public regulatory body
                  or bodies having jurisdiction thereof.

         f)       Jurisdiction. All questions concerning the construction,
                  validity, enforcement and interpretation of this Warrant shall
                  be determined in accordance with the provisions of the
                  Purchase Agreement.

         g)       Restrictions. The Holder acknowledges that the Warrant Shares
                  acquired upon the exercise of this Warrant, if not registered,
                  will have restrictions upon resale imposed by state and
                  federal securities laws.

         h)       Nonwaiver and Expenses. No course of dealing or any delay or
                  failure to exercise any right hereunder on the part of Holder
                  shall operate as a waiver of such right or otherwise prejudice
                  Holder's rights, powers or remedies, notwithstanding the fact
                  that all rights hereunder terminate on the Termination Date.
                  If the Company willfully and knowingly fails to comply with
                  any provision of this Warrant, which results in any material
                  damages to the Holder, the Company shall pay to Holder such
                  amounts as shall be sufficient to cover any costs and expenses
                  including, but not limited to, reasonable attorneys' fees,
                  including those of appellate proceedings, incurred by Holder
                  in collecting any amounts due pursuant hereto or in otherwise
                  enforcing any of its rights, powers or remedies hereunder.

         i)       Notices. Any notice, request or other document required or
                  permitted to be given or delivered to the Holder by the
                  Company shall be delivered in accordance with the notice
                  provisions of the Purchase Agreement.

                                    11 of 15
<PAGE>

         j)       Limitation of Liability. No provision hereof, in the absence
                  of any affirmative action by Holder to exercise this Warrant
                  or purchase Warrant Shares, and no enumeration herein of the
                  rights or privileges of Holder, shall give rise to any
                  liability of Holder for the purchase price of any Common Stock
                  or as a stockholder of the Company, whether such liability is
                  asserted by the Company or by creditors of the Company.

         k)       Remedies. Holder, in addition to being entitled to exercise
                  all rights granted by law, including recovery of damages, will
                  be entitled to specific performance of its rights under this
                  Warrant. The Company agrees that monetary damages would not be
                  adequate compensation for any loss incurred by reason of a
                  breach by it of the provisions of this Warrant and hereby
                  agrees to waive the defense in any action for specific
                  performance that a remedy at law would be adequate.

         l)       Successors and Assigns. Subject to applicable securities laws,
                  this Warrant and the rights and obligations evidenced hereby
                  shall inure to the benefit of and be binding upon the
                  successors of the Company and the successors and permitted
                  assigns of Holder. The provisions of this Warrant are intended
                  to be for the benefit of all Holders from time to time of this
                  Warrant and shall be enforceable by any such Holder or holder
                  of Warrant Shares.

         m)       Amendment. This Warrant may be modified or amended or the
                  provisions hereof waived with the written consent of the
                  Company and the Holder.

         n)       Severability. Wherever possible, each provision of this
                  Warrant shall be interpreted in such manner as to be effective
                  and valid under applicable law, but if any provision of this
                  Warrant shall be prohibited by or invalid under applicable
                  law, such provision shall be ineffective to the extent of such
                  prohibition or invalidity, without invalidating the remainder
                  of such provisions or the remaining provisions of this
                  Warrant.

         o)       Headings. The headings used in this Warrant are for the
                  convenience of reference only and shall not, for any purpose,
                  be deemed a part of this Warrant.

                              ********************

                                    12 of 15
<PAGE>

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

Dated:  February 28, 2006

                                         NEW CENTURY COMPANIES, INC.

                                         ---------------------------------------
                                         Name:
                                         Title:

                                    13 of 15
<PAGE>

                               NOTICE OF EXERCISE

TO:             NEW CENTURY COMPANIES, INC.

         (1) The undersigned hereby elects to purchase ________ Warrant Shares
of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together
with all applicable transfer taxes, if any.

         (2)Payment shall take the form of (check applicable box):

                  [ ] in lawful money of the United States; or

                  [ ] the cancellation of such number of Warrant Shares as is
                  necessary, in accordance with the formula set forth in
                  subsection 2(c), to exercise this Warrant with respect to the
                  maximum number of Warrant Shares purchasable pursuant to the
                  cashless exercise procedure set forth in subsection 2(c).

         (3)Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

                  -------------------------------

The Warrant Shares shall be delivered to the following:

                  -------------------------------

                  -------------------------------

                  -------------------------------

         (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity:
                         -------------------------------------------------------
Signature of Authorized Signatory of Investing Entity:
                                                      --------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
Date:
     ---------------------------------------------------------------------------

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

         FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

                                whose address is
--------------------------------

------------------------------------------------.

-----------------------------------------------------------------

                               Dated:
                                     -----------,--------------

                               Holder's Signature:
                                                  ------------------------------
                               Holder's Address:
                                                  ------------------------------

                                                  ------------------------------

Signature Guaranteed:
                     -----------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.EXHIBIT 10.4

                          REGISTRATION RIGHTS AGREEMENT

            This Registration Rights Agreement (this "Agreement") is made and
entered into as of February 28, 2006, between New Century Companies, Inc., a
Delaware corporation (the "Company"), and the purchaser signatory hereto (the
"Purchaser").

            This Agreement is made pursuant to the Securities Purchase
Agreement, dated as of the date hereof among the Company and the Purchaser (the
"Purchase Agreement").

            The Company and the Purchaser hereby agree as follows:

      1. Definitions

            CAPITALIZED TERMS USED AND NOT OTHERWISE DEFINED HEREIN THAT ARE
DEFINED IN THE PURCHASE AGREEMENT SHALL HAVE THE MEANINGS GIVEN SUCH TERMS IN
THE PURCHASE AGREEMENT. As used in this Agreement, the following terms shall
have the following meanings:

            "Advice" shall have the meaning set forth in Section 6(d).

            "Effectiveness Date" means, with respect to the initial Registration
      Statement required to be filed hereunder, the 90th calendar day following
      the date hereof (120th calendar day if such Registration Statement is
      reviewed by the Commission) and, with respect to any additional
      Registration Statements which may be required pursuant to Section 3(c),
      the 90th calendar day following the date on which the Company first knows,
      or reasonably should have known, that such additional Registration
      Statement is required hereunder; provided, however, in the event the
      Company is notified by the Commission that one of the above Registration
      Statements will not be reviewed or is no longer subject to further review
      and comments, the Effectiveness Date as to such Registration Statement
      shall be the fifth Trading Day following the date on which the Company is
      so notified if such date precedes the dates required above.

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

            "Event" shall have the meaning set forth in Section 2(b).

            "Event Date" shall have the meaning set forth in Section 2(b).

            "Filing Date" means, with respect to the initial Registration
      Statement required hereunder, the 55th calendar day following the date
      hereof and, with respect to any additional Registration Statements which
      may be required pursuant to Section 3(c), the 55th day following the date
      on which the Company first knows, or reasonably should have known that
      such additional Registration Statement is required hereunder.

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

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

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

                                       1
<PAGE>

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

            "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 a 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 a 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 (i) all of the shares of Common Stock
      issuable upon conversion of the Notes or as interest on the Notes assuming
      all of the Notes are converted and all permissible interest payments are
      made in shares of Common Stock and the Notes are held until maturity, (ii)
      all shares issuable as amortization payments on the Notes assuming all
      permissible amortization payments are made in shares of Common Stock and
      the Notes are held until maturity, (iii) all Warrant Shares, (iv) any
      securities issued or issuable upon any stock split, dividend or other
      distribution recapitalization or similar event with respect to the
      foregoing and (v) any additional shares issuable in connection with any
      anti-dilution provisions in the Notes or the Warrants.

            "Registration Statement" means the registration statements required
      to be filed hereunder and any additional registration statements
      contemplated by Section 3(c), including (in each case) the Prospectus,
      amendments and supplements to such registration statement or Prospectus,
      including pre- and post-effective amendments, all exhibits thereto, and
      all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

            "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 purpose and effect as such Rule.

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

                                       2
<PAGE>

      2. Registration

            (a) The Company shall prepare and file with the Commission a
      Registration Statement covering the resale of 125% of the Registrable
      Securities for an 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) and shall contain (unless
      otherwise directed by the Holders) substantially the "Plan of
      Distribution" attached hereto as Annex A. Subject to the terms of this
      Agreement, the Company shall use its best efforts to cause the
      Registration Statement to be declared effective under the Securities Act
      as promptly as possible after the filing thereof, but in any event prior
      to the applicable Effectiveness Date, and shall use its best efforts to
      keep such Registration Statement continuously effective under the
      Securities Act until all Registrable Securities covered by such
      Registration Statement have been sold or may be sold 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"). The Company shall immediately notify the Holders
      via facsimile of the effectiveness of the Registration Statement on the
      same day that the Company receives notification of the effectiveness from
      the Commission. Failure to so notify the Holder within 1 Trading Day of
      such notification shall be deemed an Event under Section 2(b).

            (b) If: (i) a Registration Statement is not filed on or prior to its
      Filing Date (if the Company files a Registration Statement without
      affording the Holders the opportunity to review and comment on the same as
      required by Section 3(a), the Company shall not be deemed to have
      satisfied this clause (i)), or (ii) the Company fails to file with the
      Commission a request for acceleration in accordance with Rule 461
      promulgated under the Securities Act, within five Trading Days of the date
      that the Company is notified (orally or in writing, whichever is earlier)
      by the Commission that a Registration Statement will not be "reviewed," or
      not subject to further review; or (iii) prior to its Effectiveness Date,
      the Company fails to file a pre-effective amendment and otherwise respond
      in writing to comments made by the Commission in respect of such
      Registration Statement within 14 calendar days after the receipt of
      comments by or notice from the Commission that such amendment is required
      in order for a Registration Statement to be declared effective; or (iv) a
      Registration Statement filed or required to be filed hereunder is not
      declared effective by the Commission by its Effectiveness Date; or (v)
      after the Effectiveness Date, a Registration Statement ceases for any
      reason to remain continuously effective as to all Registrable Securities
      for which it is required to be effective, or the Holders are not permitted
      to utilize the Prospectus therein to resell such Registrable Securities
      for 10 consecutive calendar days but no more than an aggregate of 15
      calendar days during any 12-month period (which need not be consecutive
      Trading Days) (any such failure or breach being referred to as an "Event",
      and for purposes of clause (ii) or (iv) the date on which such Event
      occurs, or for purposes of clause (ii) the date on which such five Trading
      Day period is exceeded, or for purposes of clause (iii) the date which
      such 14 calendar day period is exceeded, or for purposes of clause (v) the
      date on which such 10 or 15 calendar day period, as applicable, is
      exceeded being referred to as "Event Date"), then in addition to any other
      rights the Holders may have hereunder or under applicable law, on each
      such Event Date and on each monthly anniversary of each such Event Date
      (if the applicable Event shall not have been cured by such date) until the
      applicable Event is cured, the Company shall pay to each Holder an amount
      in cash, as partial liquidated damages and not as a penalty, equal to 1.5%
      of the outstanding principal of the Notes for any Registrable Securities
      then held by such Holder for the first 30 days (or part thereof) after the
      Event Date and an additional 1.5% for any subsequent 30-day period (or
      part thereof), thereafter. If the Company fails to pay any partial
      liquidated damages pursuant to this Section in full within seven days
      after the date payable, the Company will pay interest thereon at a rate of
      20% per annum (or such lesser maximum amount that is permitted to be paid
      by applicable law) to the Holder, accruing daily from the date such
      partial liquidated damages are due until such amounts, plus all such
      interest thereon, are paid in full. The partial liquidated damages
      pursuant to the terms hereof shall apply on a daily pro-rata basis for any
      portion of a month prior to the cure of an Event.

                                       3
<PAGE>

      3. Registration Procedures

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

            (a) Not less than five Trading Days prior to the filing of each
      Registration Statement or any related Prospectus or any amendment or
      supplement thereto (including any document that would be incorporated or
      deemed to be incorporated therein by reference), the Company shall, (i)
      furnish to each Holder copies of all such documents proposed to be filed,
      which documents (other than those incorporated or deemed to be
      incorporated by reference) will be subject to the review of such Holders,
      and (ii) cause its officers and directors, counsel and independent
      certified public accountants to respond to such inquiries as shall be
      necessary, in the reasonable opinion of respective counsel to conduct a
      reasonable investigation within the meaning of the Securities Act. The
      Company shall not file the Registration Statement or any such Prospectus
      or any amendments or supplements thereto to which the Holders of a
      majority of the Registrable Securities shall reasonably object in good
      faith, provided that, the Company is notified of such objection in writing
      no later than 5 Trading Days after the Holders have been so furnished
      copies of such documents. Each Holder agrees to furnish to the Company a
      completed Questionnaire in the form attached to this Agreement as Annex B
      (a "Selling Holder Questionnaire") not less than two Trading Days prior to
      the Filing Date or by the end of the fourth Trading Day following the date
      on which such Holder receives draft materials in accordance with this
      Section.

            (b) (i) Prepare and file with the Commission such amendments,
      including post-effective amendments, to a Registration Statement and the
      Prospectus used in connection therewith as may be necessary to keep a
      Registration Statement continuously effective as to the applicable
      Registrable Securities for the Effectiveness Period and prepare and file
      with the Commission such additional Registration Statements in order to
      register for resale under the Securities Act all of the Registrable
      Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms
      of this Agreement), and as so supplemented or amended to be filed pursuant
      to Rule 424; (iii) respond as promptly as reasonably possible to any
      comments received from the Commission with respect to a Registration
      Statement or any amendment thereto and as promptly as reasonably possible
      provide the Holders true and complete copies of all correspondence from
      and to the Commission relating to a Registration Statement; and (iv)
      comply in all material respects with the provisions of the Securities Act
      and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by a Registration Statement during the applicable
      period in accordance (subject to the terms of this Agreement) with the
      intended methods of disposition by the Holders thereof set forth in such
      Registration Statement as so amended or in such Prospectus as so
      supplemented.

            (c) If during the Effectiveness Period, the number of Registrable
      Securities at any time exceeds 90% of the number of shares of Common Stock
      then registered in a Registration Statement, then the Company shall file
      as soon as reasonably practicable but in any case prior to the applicable
      Filing Date, an additional Registration Statement covering the resale by
      the Holders of not less than 125% of the number of such Registrable
      Securities.

                                       4
<PAGE>

            (d) Notify the Holders of Registrable Securities to be sold (which
      notice shall, pursuant to clauses (ii) through (vi) hereof, be accompanied
      by an instruction to suspend the use of the Prospectus until the requisite
      changes have been made) as promptly as reasonably possible (and, in the
      case of (i)(A) below, not less than five Trading Days prior to such
      filing) and (if requested by any such Person) confirm such notice in
      writing no later than one Trading Day following the day (i)(A) when a
      Prospectus or any Prospectus supplement or post-effective amendment to a
      Registration Statement is proposed to be filed; (B) when the Commission
      notifies the Company whether there will be a "review" of such Registration
      Statement and whenever the Commission comments in writing on such
      Registration Statement (the Company shall provide true and complete copies
      thereof and all written responses thereto to each of the Holders); and (C)
      with respect to a Registration Statement or any post-effective amendment,
      when the same has become effective; (ii) of any request by the Commission
      or any other Federal or state governmental authority for amendments or
      supplements to a Registration Statement or Prospectus or for additional
      information; (iii) of the issuance by the Commission or any other federal
      or state governmental authority of any stop order suspending the
      effectiveness of a Registration Statement covering any or all of the
      Registrable Securities or the initiation of any Proceedings for that
      purpose; (iv) of the receipt by the Company of any notification with
      respect to the suspension of the qualification or exemption from
      qualification of any of the Registrable Securities for sale in any
      jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; (v) of the occurrence of any event or passage of time that makes
      the financial statements included in a Registration Statement ineligible
      for inclusion therein or any statement made in a 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 a Registration Statement, Prospectus or other documents so
      that, in the case of a Registration Statement or the Prospectus, as the
      case may be, it will not contain any untrue statement of a material fact
      or omit to state any material fact required to be stated therein or
      necessary to make the statements therein, in light of the circumstances
      under which they were made, not misleading; and (vi) the occurrence or
      existence of any pending corporate development with respect to the Company
      that the Company believes may be material and that, in the determination
      of the Company, makes it not in the best interest of the Company to allow
      continued availability of the Registration Statement or Prospectus;
      provided that any and all of such information shall remain confidential to
      each Holder until such information otherwise becomes public, unless
      disclosure by a Holder is required by law; provided, further,
      notwithstanding each Holder's agreement to keep such information
      confidential, the Holders make no acknowledgement that any such
      information is material, non-public information.

            (e) Use its best efforts to avoid the issuance of, or, if issued,
      obtain the withdrawal of (i) any order suspending the effectiveness of a
      Registration Statement, or (ii) any suspension of the qualification (or
      exemption from qualification) of any of the Registrable Securities for
      sale in any jurisdiction, at the earliest practicable moment.

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

            (g) Promptly deliver to each Holder, without charge, as many copies
      of the Prospectus or Prospectuses (including each form of prospectus) and
      each amendment or supplement thereto as such Persons may reasonably
      request in connection with resales by the Holder of Registrable
      Securities. Subject to the terms of this Agreement, the Company hereby
      consents to the use of such Prospectus and each amendment or supplement
      thereto by each of the selling Holders in connection with the offering and
      sale of the Registrable Securities covered by such Prospectus and any
      amendment or supplement thereto, except after the giving on any notice
      pursuant to Section 3(d).

                                       5
<PAGE>

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

            (i) If requested by the Holders, cooperate with the Holders to
      facilitate the timely preparation and delivery of certificates
      representing Registrable Securities to be delivered to a transferee
      pursuant to a Registration Statement, which certificates shall be free, to
      the extent permitted by the Purchase Agreement, of all restrictive
      legends, and to enable such Registrable Securities to be in such
      denominations and registered in such names as any such Holders may
      request.

            (j) Upon the occurrence of any event contemplated by this Section 3,
      as promptly as reasonably possible under the circumstances taking into
      account the Company's good faith assessment of any adverse consequences to
      the Company and its stockholders of the premature disclosure of such
      event, prepare a supplement or amendment, including a post-effective
      amendment, to a Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated
      therein by reference, and file any other required document so that, as
      thereafter delivered, neither a Registration Statement nor such Prospectus
      will contain an untrue statement of a material fact or omit to state a
      material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were
      made, not misleading. If the Company notifies the Holders in accordance
      with clauses (ii) through (v) of Section 3(d) above to suspend the use of
      any Prospectus until the requisite changes to such Prospectus have been
      made, then the Holders shall suspend use of such Prospectus. The Company
      will use its best efforts to ensure that the use of the Prospectus may be
      resumed as promptly as is practicable. The Company shall be entitled to
      exercise its right under this Section 3(j) to suspend the availability of
      a Registration Statement and Prospectus, subject to the payment of partial
      liquidated damages pursuant to Section 2(b), for a period not to exceed 60
      days (which need not be consecutive days) in any 12 month period.

            (k) Comply with all applicable rules and regulations of the
      Commission.

            (l) The Company may require each selling Holder to furnish to the
      Company a certified statement as to the number of shares of Common Stock
      beneficially owned by such Holder and, if required by the Commission, the
      person thereof that has voting and dispositive control over the Shares.
      During any periods that the Company is unable to meet its obligations
      hereunder with respect to the registration of the Registrable Securities
      solely because any Holder fails to furnish such information within three
      Trading Days of the Company's request, any liquidated damages that are
      accruing at such time as to such Holder only shall be tolled and any Event
      that may otherwise occur solely because of such delay shall be suspended
      as to such Holder only, until such information is delivered to the
      Company.

                                       6
<PAGE>

            4. Registration Expenses. All fees and expenses incident to the
      performance of or compliance with this Agreement by the Company shall be
      borne by the Company whether or not any Registrable Securities are sold
      pursuant to the Registration Statement. The fees and expenses referred to
      in the foregoing sentence shall include, without limitation, (i) all
      registration and filing fees (including, without limitation, fees and
      expenses (A) with respect to filings required to be made with the Trading
      Market on which the Common Stock is then listed for trading, and (B) in
      compliance with applicable state securities or Blue Sky laws reasonably
      agreed to by the Company in writing (including, without limitation, fees
      and disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities and
      determination of the eligibility of the Registrable Securities for
      investment under the laws of such jurisdictions as requested by the
      Holders), (ii) printing expenses (including, without limitation, expenses
      of printing certificates for Registrable Securities and of printing
      prospectuses if the printing of prospectuses is reasonably requested by
      the holders of a majority of the Registrable Securities included in a
      Registration Statement), (iii) messenger, telephone and delivery expenses,
      (iv) fees and disbursements of counsel for the Company, (v) Securities Act
      liability insurance, if the Company so desires such insurance, and (vi)
      fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by this
      Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without
      limitation, all salaries and expenses of its officers and employees
      performing legal or accounting duties), the expense of any annual audit
      and the fees and expenses incurred in connection with the listing of the
      Registrable Securities on any securities exchange as required hereunder.
      In no event shall the Company be responsible for any broker or similar
      commissions or, except to the extent provided for in the Transaction
      Documents, any legal fees or other costs of the Holders.

      5. Indemnification

            (a) Indemnification by the Company. The Company shall,
      notwithstanding any termination of this Agreement, indemnify and hold
      harmless each Holder, the officers, directors, agents, brokers (including
      brokers who offer and sell Registrable Securities as principal as a result
      of a pledge or any failure to perform under a margin call of Common
      Stock), investment advisors and employees of each of them, each Person who
      controls any such Holder (within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, agents and employees of each such controlling Person, to the
      fullest extent permitted by applicable law, from and against any and all
      losses, claims, damages, liabilities, costs (including, without
      limitation, reasonable attorneys' fees) and expenses (collectively,
      "Losses"), as incurred, arising out of or relating to any untrue or
      alleged untrue statement of a material fact contained in a Registration
      Statement, any Prospectus or any form of prospectus or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required
      to be stated therein or necessary to make the statements therein (in the
      case of any Prospectus or form of prospectus or supplement thereto, in
      light of the circumstances under which they were made) not misleading,
      except to the extent, but only to the extent, that (i) such untrue
      statements or omissions are based solely upon information regarding such
      Holder furnished in writing to the Company by such Holder expressly for
      use therein, or to the extent that such information relates to such Holder
      or such Holder's proposed method of distribution of Registrable Securities
      and was reviewed and expressly approved in writing by such Holder
      expressly for use in a Registration Statement, such Prospectus or such
      form of Prospectus or in any amendment or supplement thereto (it being
      understood that the Holder has approved Annex A hereto for this purpose)
      or (ii) in the case of an occurrence of an event of the type specified in
      Section 3(d)(ii)-(vi), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder in writing that the
      Prospectus is outdated or defective and prior to the receipt by such
      Holder of the Advice contemplated in Section 6(d). The Company shall
      notify the Holders promptly of the institution, threat or assertion of any
      Proceeding arising from or in connection with the transactions
      contemplated by this Agreement of which the Company is aware.

                                       7
<PAGE>

            (b) Indemnification by Holders. Each Holder shall, severally and not
      jointly, indemnify and hold harmless the Company, its directors, officers,
      agents and employees, each Person who controls the Company (within the
      meaning of Section 15 of the Securities Act and Section 20 of the Exchange
      Act), and the directors, officers, agents or employees of such controlling
      Persons, to the fullest extent permitted by applicable law, from and
      against all Losses, as incurred, to the extent arising out of or based
      solely upon: (x) such Holder's failure to comply with the prospectus
      delivery requirements of the Securities Act or (y) any untrue or alleged
      untrue statement of a material fact contained in any Registration
      Statement, any Prospectus, or any form of prospectus, or in any amendment
      or supplement thereto or in any preliminary prospectus, or arising out of
      or relating to any omission or alleged omission of a material fact
      required to be stated therein or necessary to make the statements therein
      not misleading (i) to the extent, but only to the extent, that such untrue
      statement or omission is contained in any information so furnished in
      writing by such Holder to the Company specifically for inclusion in such
      Registration Statement or such Prospectus or (ii) to the extent that (1)
      such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates
      to such Holder or such Holder's proposed method of distribution of
      Registrable Securities and was reviewed and expressly approved in writing
      by such Holder expressly for use in the Registration Statement (it being
      understood that the Holder has approved Annex A hereto for this purpose),
      such Prospectus or such form of Prospectus or in any amendment or
      supplement thereto or (2) in the case of an occurrence of an event of the
      type specified in Section 3(d)(ii)-(vi), the use by such Holder of an
      outdated or defective Prospectus after the Company has notified such
      Holder in writing that the Prospectus is outdated or defective and prior
      to the receipt by such Holder of the Advice contemplated in Section 6(d).
      In no event shall the liability of any selling Holder hereunder be greater
      in amount than the dollar amount of the net proceeds received by such
      Holder upon the sale of the Registrable Securities giving rise to such
      indemnification obligation.

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

                                       8
<PAGE>

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

            Subject to the terms of this Agreement, all reasonable fees and
      expenses of the Indemnified Party (including reasonable fees and expenses
      to the extent incurred in connection with investigating or preparing to
      defend such Proceeding in a manner not inconsistent with this Section)
      shall be paid to the Indemnified Party, as incurred, within ten Trading
      Days of written notice thereof to the Indemnifying Party; provided, that
      the Indemnified Party shall promptly reimburse the Indemnifying Party for
      that portion of such fees and expenses applicable to such actions for
      which such Indemnified Party is not entitled to indemnification hereunder,
      determined based upon the relative faults of the parties.

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

            The parties hereto agree that it would not be just and equitable if
      contribution pursuant to this Section 5(d) were determined by pro rata
      allocation or by any other method of allocation that does not take into
      account the equitable considerations referred to in the immediately
      preceding paragraph. Notwithstanding the provisions of this Section 5(d),
      no Holder shall be required to contribute, in the aggregate, any amount in
      excess of the amount by which the proceeds actually received by such
      Holder from the sale of the Registrable Securities subject to the
      Proceeding exceeds the amount of any damages that such Holder has
      otherwise been required to pay by reason of such untrue or alleged untrue
      statement or omission or alleged omission, except in the case of fraud by
      such Holder.

                                       9
<PAGE>

            The indemnity and contribution agreements contained in this Section
      are in addition to any liability that the Indemnifying Parties may have to
      the Indemnified Parties.

      6. Miscellaneous

            (a) Remedies. In the event of a breach by the Company or by a
      Holder, of any of their 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. The Company and each Holder agree that monetary damages would
      not provide adequate compensation for any losses incurred by reason of a
      breach by it of any of the provisions of this Agreement and hereby further
      agrees that, in the event of any action for specific performance in
      respect of such breach, it shall waive the defense that a remedy at law
      would be adequate.

            (b) No Piggyback on Registrations. Except as set forth on Schedule
      6(i), 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 the Registration Statement other than the Registrable
      Securities. Each Purchaser acknowledges and agrees that the Company may,
      in its sole discretion, file one registration statement to fulfill its
      obligations to the Purchaser hereunder. The Company shall not file any
      other registration statements until the initial Registration Statement
      required hereunder is declared effective by the Commission, provided that
      this Section 6(b) shall not prohibit the Company from filing amendments to
      registration statements already filed.

            (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 any event of the kind described in Section
      3(d), such Holder will forthwith discontinue disposition of such
      Registrable Securities under a 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 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 will use its best
      efforts to ensure that the use of the Prospectus may be resumed as
      promptly as it practicable. The Company agrees and acknowledges that any
      periods during which the Holder is required to discontinue the disposition
      of the Registrable Securities hereunder shall be subject to the provisions
      of Section 2(b).

            (e) Piggy-Back Registrations. If at any time during the
      Effectiveness Period there is not an effective Registration Statement
      covering all of the Registrable Securities 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 the stock option or other employee
      benefit plans, then the Company shall send to each Holder a written notice
      of such determination and, if within fifteen days after the date 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; provided, that, the
      Company shall not be required to register any Registrable Securities
      pursuant to this Section 6(e) that are eligible for resale pursuant to
      Rule 144(k) promulgated under the Securities Act or that are the subject
      of a then effective Registration Statement.

                                       10
<PAGE>

            (f) Amendments and Waivers. The provisions of this Agreement,
      including the provisions of this sentence, may not be amended, modified or
      supplemented, and waivers or consents to departures from the provisions
      hereof may not be given, unless the same shall be in writing and signed by
      the Company and each Holder 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 Holders and that does not directly or
      indirectly affect the rights of other Holders may be given by Holders of
      all 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 and all notices or other communications or
      deliveries required or permitted to be provided hereunder shall be
      delivered as set forth in the Purchase Agreement.

            (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 all of the Holders of the then-outstanding
      Registrable Securities. Each Holder may assign their respective rights
      hereunder in the manner and to the Persons as permitted under the Purchase
      Agreement.

            (i) No Inconsistent Agreements. Neither the Company nor any of its
      subsidiaries has entered, as of the date hereof, nor shall the Company or
      any of its subsidiaries, on or after the date of this Agreement, enter
      into any agreement with respect to its securities, that would have the
      effect of impairing the rights granted to the Holders in this Agreement or
      otherwise conflicts with the provisions hereof. Except as set forth on
      Schedule 6(i), neither the Company nor any of its subsidiaries has
      previously entered into any agreement granting any registration rights
      with respect to any of its securities to any Person that have not been
      satisfied in full.

            (j) 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.

            (k) Governing Law. All questions concerning the construction,
      validity, enforcement and interpretation of this Agreement shall be
      determined with the provisions of the Purchase Agreement.

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

                                       11
<PAGE>

            (m) 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 commercially reasonable efforts to find and
      employ an alternative means to achieve the same or substantially the same
      result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of
      the parties that they would have executed the remaining terms, provisions,
      covenants and restrictions without including any of such that may be
      hereafter declared invalid, illegal, void or unenforceable.

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

            (o) Independent Nature of Holders' Obligations and Rights. The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be
      responsible in any way for the performance of the obligations of any other
      Holder hereunder. Nothing contained herein or in any other agreement or
      document delivered at any closing, and no action taken by any Holder
      pursuant hereto or thereto, shall be deemed to constitute the Holders as a
      partnership, an association, a joint venture or any other kind of entity,
      or create a presumption that the Holders are in any way acting in concert
      with respect to such obligations or the transactions contemplated by this
      Agreement. Each Holder shall be entitled to protect and enforce its
      rights, including without limitation the rights arising out of this
      Agreement, and it shall not be necessary for any other Holder to be joined
      as an additional party in any proceeding for such purpose.

                              ********************

                                       12
<PAGE>

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

                                      NEW CENTURY COMPANIES, INC.

                                      ------------------------------------------
                                      Name:
                                      Title:

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       13
<PAGE>

            [SIGNATURE PAGE OF HOLDERS TO NEW CENTURY COMPANIES RRA]

Name of Investing Entity:  CAMOFI Master LDC
Signature of Authorized Signatory of Investing Entity: _________________________
Name of Authorized Signatory: _________________________
Title of Authorized Signatory: __________________________

                                       14
<PAGE>

                              Plan of Distribution
                              --------------------

      Each Selling Stockholder (the "Selling Stockholders") of the common stock
("Common Stock") of New Century Companies, Inc., a Delaware corporation (the
"Company") and any of their pledgees, assignees and successors-in-interest may,
from time to time, sell any or all of their shares of Common Stock on the
Trading Market or any other stock exchange, market or trading facility on which
the shares are traded or in private transactions. These sales may be at fixed or
negotiated prices. A Selling Stockholder may use any one or more of the
following methods when selling shares:

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

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

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

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

      o     privately negotiated transactions;

      o     settlement of short sales entered into after the date of this
            prospectus;

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

      o     a combination of any such methods of sale;

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

      o     any other method permitted pursuant to applicable law.

      The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act of 1933, as amended (the "Securities Act"), if available, rather
than under this prospectus.

      Broker-dealers engaged by the Selling Stockholders may arrange for other
brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as
agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated. Each Selling Stockholder does not expect these commissions and
discounts relating to its sales of shares to exceed what is customary in the
types of transactions involved.

                                       15
<PAGE>

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

      The Selling Stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. Each Selling Stockholder has
informed the Company that it does not have any agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock.

      The Company is required to pay certain fees and expenses incurred by the
Company incident to the registration of the shares. The Company has agreed to
indemnify the Selling Stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

      Because Selling Stockholders may be deemed to be "underwriters" within the
meaning of the Securities Act, they will be subject to the prospectus delivery
requirements of the Securities Act. In addition, any securities covered by this
prospectus which qualify for sale pursuant to Rule 144 under the Securities Act
may be sold under Rule 144 rather than under this prospectus. Each Selling
Stockholder has advised us that they have not entered into any agreements,
understandings or arrangements with any underwriter or broker-dealer regarding
the sale of the resale shares. There is no underwriter or coordinating broker
acting in connection with the proposed sale of the resale shares by the Selling
Stockholders.

      We agreed to keep this prospectus effective until the earlier of (i) the
date on which the shares may be resold by the Selling Stockholders without
registration and without regard to any volume limitations by reason of Rule
144(e) under the Securities Act or any other rule of similar effect or (ii) all
of the shares have been sold pursuant to the prospectus or Rule 144 under the
Securities Act or any other rule of similar effect. The resale shares will be
sold only through registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states, the resale
shares may not be sold unless they have been registered or qualified for sale in
the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

      Under applicable rules and regulations under the Exchange Act, any person
engaged in the distribution of the resale shares may not simultaneously engage
in market making activities with respect to our common stock for a period of two
business days prior to the commencement of the distribution. In addition, the
Selling Stockholders will be subject to applicable provisions of the Exchange
Act and the rules and regulations thereunder, including Regulation M, which may
limit the timing of purchases and sales of shares of our common stock by the
Selling Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to
deliver a copy of this prospectus to each purchaser at or prior to the time of
the sale.

                                       16
<PAGE>

                                                                         ANNEX B

                           NEW CENTURY COMPANIES, INC.

                 SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

      The undersigned beneficial owner of common stock, par value $0.10 (the
"Common Stock"), of New Century Companies, Inc., a Delaware corporation (the
"Company"), (the "Registrable Securities") understands that the Company has
filed or intends to file with the Securities and Exchange Commission (the
"Commission") a registration statement on Form SB-2 (the "Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities Act"), of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement, dated as of
February 28, 2006 (the "Registration Rights Agreement"), among the Company and
the Purchaser named therein. A copy of the Registration Rights Agreement is
available from the Company upon request at the address set forth below. All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

      Certain legal consequences arise from being named as a selling
securityholder in the Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Registration
Statement and the related prospectus.

                                     NOTICE

      The undersigned beneficial owner (the "Selling Securityholder") of
Registrable Securities hereby elects to include the Registrable Securities owned
by it and listed below in Item 3 (unless otherwise specified under such Item 3)
in the Registration Statement.

      The undersigned hereby provides the following information to the Company
and represents and warrants that such information is accurate:

                                  QUESTIONNAIRE

1. NAME.

         (a)      Full Legal Name of Selling Securityholder

                  --------------------------------------------------------------

         (b)      Full Legal Name of Registered Holder (if not the same as (a)
                  above) through which Registrable Securities Listed in Item 3
                  below are held:

                  --------------------------------------------------------------

                                       17
<PAGE>

         (c)      Full Legal Name of Natural Control Person (which means a
                  natural person who directly you indirectly alone or with
                  others has power to vote or dispose of the securities covered
                  by the questionnaire):

                  --------------------------------------------------------------

2. ADDRESS FOR NOTICES TO SELLING SECURITYHOLDER:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Telephone:
          ----------------------------------------------------------------------
Fax:
          ----------------------------------------------------------------------
Contact Person:
          ----------------------------------------------------------------------

3. BENEFICIAL OWNERSHIP OF REGISTRABLE SECURITIES:

         (a) Type and Principal Amount of Registrable Securities beneficially
owned:

                  --------------------------------------------------------------

                  --------------------------------------------------------------

                  --------------------------------------------------------------

4. BROKER-DEALER STATUS:

         (a) Are you a broker-dealer?

                                 Yes |_| No |_|

         Note:    If yes, the  Commission's  staff has indicated that you should
                  be identified as an underwriter in the Registration Statement.

         (b) Are you an affiliate of a broker-dealer?

                                 Yes |_| No |_|

         (c)      If you are an affiliate of a broker-dealer, do you certify
                  that you bought the Registrable Securities in the ordinary
                  course of business, and at the time of the purchase of the
                  Registrable Securities to be resold, you had no agreements or
                  understandings, directly or indirectly, with any person to
                  distribute the Registrable Securities?

                                 Yes |_| No |_|

         Note:    If no, the  Commission's  staff has indicated  that you should
                  be identified as an underwriter in the Registration Statement.

                                       18
<PAGE>

5. BENEFICIAL OWNERSHIP OF OTHER SECURITIES OF THE COMPANY OWNED BY THE SELLING
SECURITYHOLDER.

         Except as set forth below in this Item 5, the undersigned is not the
         beneficial or registered owner of any securities of the Company other
         than the Registrable Securities listed above in Item 3.

         (a)      Type and Amount of Other Securities beneficially owned by the
                  Selling Securityholder:

                  --------------------------------------------------------------

                  --------------------------------------------------------------

6. RELATIONSHIPS WITH THE COMPANY:

         Except as set forth below, neither the undersigned nor any of its
         affiliates, officers, directors or principal equity holders (owners of
         5% of more of the equity securities of the undersigned) has held any
         position or office or has had any other material relationship with the
         Company (or its predecessors or affiliates) during the past three
         years.

         State any exceptions here:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         The undersigned agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Registration Statement
remains effective.

         By signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items 1 through 6 and the
inclusion of such information in the Registration Statement and the related
prospectus. The undersigned understands that such information will be relied
upon by the Company in connection with the preparation or amendment of the
Registration Statement and the related prospectus.

         IN WITNESS WHEREOF the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

Dated:                              Beneficial Owner:
       -------------------------                     ---------------------------

                                    By:
                                        ----------------------------------------
                                        Name:
                                        Title:

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND
RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

                                       19

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