Document:

Unassociated Document

    Exhibit
      4.23

    

    SECURITIES
      PURCHASE AGREEMENT

    

    SECURITIES
      PURCHASE AGREEMENT effective as of the Closing of the purchase of Shares
      provided for herein, between VERSADIAL,
      INC. (a
      Nevada
      corporation, referred to herein as the "Company"), and the purchasers identified
      on the signature pages hereto (each, a “Purchaser”
and
      collectively, the “Purchasers”).

    

    WHEREAS,
      subject
      to the terms and conditions set forth in this Agreement and pursuant to Section
      4(2) of the Securities Act of 1933, as amended (the “Securities
      Act”),
      the
      Company desires to issue and sell to each Purchaser, and each Purchaser,
      severally and not jointly, desires to purchase from the Company, units (“Units”)
      consisting of shares (“Shares”) of Common Stock of the Company, par value
      $0.0001 per share (“Common Stock”) , and warrants (“Warrants”) to purchase
      shares of Common Stock of the Company (“Warrant Shares”) equal to 20% of the
      number of shares of Common Stock purchased at a price per Unit of $1.60
      (“Per
      Unit Purchase Price”),
      all
      upon the terms and conditions set forth in this Agreement;

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and of the mutual premises, covenants,
      representations and warranties herein contained, it is hereby agreed as
      follows:

    

    
      
        	1.	
                PURCHASE
                  PRICE; CLOSINGS; ISSUANCE.

              

      

    

    

    
      	
            	1.1.	
              Unit
                Purchase.
                In reliance on the representations and warranties contained herein
                and
                subject to the terms and conditions hereof, the Company shall issue
                and
                sell to each Purchaser, and each Purchaser shall, severally and not
                jointly, purchase from the Company, such number of Units indicated
                below
                such Purchaser’s name on the signature page of this Agreement at the Per
                Unit Purchase Price. Each Unit represents the purchase of one share
                of
                Common Stock and an appurtenant Warrant with an initial exercise
                price of
                $2.00 per share.

            

    

    

    
      	
            	1.2.	
              Closings.

            

    

    

    
      	
            	1.2.1.	
              The
                purchase and sale of the Units shall take place at the offices of
                counsel
                to the Company (or remotely via the exchange of documents and signatures)
                on one or more dates as the Company may elect prior to January 31,
                2008
                (each a “Closing”).

            

    

     

    
      	
            	1.2.2.	
              Unless
                extended by the Company as provided in the Term Sheet annexed to
                the
                Subscription Agreement, the last Closing shall not be after January
                31,
                2008.

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 1

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	1.3.	
              Closing
                Deliveries.
                At each Closing

            

    

    

    
      	
            	1.3.1.	
              the
                Company shall deliver or cause to be delivered to each Purchaser
                buying
                Units at such Closing, one or more stock certificates, representing
                the
                Shares comprising the Units and one or more warrant certificates
                representing the Warrants comprising the Units, free and clear of
                all
                restrictive and other legends (except as expressly provided herein),
                evidencing, respectively, the number of Shares equal to the number
                of
                Units, and such number of Warrants equal to 20% of the number of
                Units,
                indicated below such Purchaser’s name on the signature page of this
                Agreement, registered in the name of such
                Purchaser;

            

    

    

    
      	
            	1.3.2.	
              each
                Purchaser buying Units consisting of Shares and Warrants at such
                Closing,
                shall deliver or cause to be delivered an amount equal to the Per
                Unit
                Purchase Price multiplied by the number of Units indicated below
                such
                Purchaser’s name on the signature page of this Agreement under the heading
                “Units Purchased”, in United States dollars and in immediately available
                funds, by delivery of a check payable to the Company, or, with the
                Company’s consent, wire transfer to an account designated in writing to
                such Purchaser by the Company for such purpose. The total purchase
                price
                payable by each Purchaser shall be set forth under such Purchaser’s name
                on the signature page of this Agreement under the heading “Purchase
                Price.”

            

    

    

    
      
        	2.	
                REPRESENTATIONS
                  AND WARRANTIES OF THE COMPANY.
                  The Company represents and warrants to the Purchaser as
                  follows:

              

      

    

    

    
      	
            	2.1.	
              Organization
                and Qualification.
                Each of the Company and its subsidiary, Innopump, Inc., is an entity
                duly
                organized, validly existing and in good standing under the laws of
                the
                jurisdiction of its incorporation or organization (as applicable),
                with
                the requisite power and authority to own and use its properties and
                assets
                and to carry on its business as currently conducted. Neither the
                Company
                nor such subsidiary is in violation of any of the provisions of its
                respective articles of incorporation, bylaws or other organizational
                or
                charter documents, except where such violation would not have a Material
                Adverse Effect, as hereinafter defined. Each of the Company and
                Innopump,Inc. is duly qualified to do business and is in good standing
                as
                a foreign corporation or other entity in each jurisdiction in which
                the
                nature of the business conducted or property owned by it makes such
                qualification necessary, except where the failure to be so qualified
                or in
                good standing, as the case may be, could not, individually or in
                the
                aggregate, (i) adversely affect the legality, validity or enforceability
                of any Transaction Document (as defined below), (ii) have or result
                in a
                material adverse effect on the results of operations, assets, prospects,
                business or condition (financial or otherwise) of the Company and
                the
                Subsidiaries, taken as a whole on a consolidated basis, or (iii)
                adversely
                impair the Company’s ability to perform fully on a timely basis its
                obligations under any of the Transaction Documents (any of (i), (ii)
                or
                (iii), a “Material Adverse
                Effect”).

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 2

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	2.2.	
              Authority
                of Agreement.
                The Company has the power and authority to execute and deliver this
                Agreement, the Registration Rights Agreement , the Warrants and the
                Subscription Agreement (collectively referred to as the “Transaction
                Documents”) and to carry out its obligations hereunder. The execution,
                delivery and performance by the Company of this Agreement and the
                consummation of the transactions contemplated hereby have been duly
                authorized by all necessary corporate action on the part of the Company
                and the Transaction Documents constitute the valid and legally binding
                obligation of the Company enforceable against the Company in accordance
                with its respective terms, except as the same may be limited by
                bankruptcy, insolvency, reorganization or other laws affecting the
                enforcement of creditors' rights generally now or hereafter in effect
                and
                subject to the application of equitable principles and the availability
                of
                equitable remedies.

            

    

    

    
      	
            	2.3.	
              No
                Conflicts.
                The execution, delivery and performance of this Agreement and the
                other
                Transaction Documents and the consummation of the transactions
                contemplated hereby and thereby by the Company do not and will not
                with or
                without the giving of notice or the passage of time or both, violate
                or
                conflict with or result in a breach or termination of any provision
                of, or
                constitute a default under, the Articles of Incorporation or the
                By-Laws
                of the Company or any order, judgment, decree, statute, regulation,
                contract, agreement or any other restriction of any kind or description
                to
                which the Company or its assets may be bound or subject. The Company
                is
                not in violation of or (with or without notice or lapse of time or
                both)
                in default under, any material term or provision of its Articles
                of
                Incorporation or By-Laws or of any indenture, loan or credit agreement,
                note agreement, mortgage, security agreement or other agreement,
                lease or
                other instrument, commitment or arrangement to which the Company
                is a
                party or by which the Company’s assets are
                bound.

            

    

    

    
      	
            	2.4.	
              Articles
                and Bylaws.
                The copies of the Articles of Incorporation and Bylaws of the Company
                which have been made available for inspection by the Purchasers prior
                to
                the execution of this Agreement are true and complete and have not
                been
                amended or repealed. 

            

      	 	 	 

      	 	2.5.	
              Capital
                Stock.   Prior to the issuance and sale of the Units to the
                Purchasers, the authorized capital stock of the Company will consist
                of
                35,000,000 shares of Common Stock, of which (i) 15,309,194 shares
                shall be
                outstanding, (ii) additional shares reserved for issuance upon the
                exercise of outstanding warrants as adjusted pursuant to their terms
                by
                virtue of the sale of securities under this Agreement, and (iii)
                an
                additional 6,373,415 shares shall be reserved for issuance upon conversion
                of the Company’s 10% Redeemable Convertible Secured Notes in the principal
                amount of $7,500,000. All such outstanding shares of Common Stock
                have
                been duly authorized and validly issued and are fully paid and
                nonassessable.

            

      	 	 	 

      	 	2.6.	
              Binding
                Obligations.  This Agreement and the other Transaction Documents
                each constitutes the legal, valid and binding obligations of the
                Company,
                enforceable against the Company in accordance with its respective
                terms,
                except as such enforcement is limited by bankruptcy, insolvency and
                other
                similar laws affecting the enforcement of creditors’ rights generally, and
                by general equitable principles.

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 3

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	2.7.	
              Authorization
                of Shares.
                The Shares are duly authorized and, when issued and paid for in accordance
                with the terms of this Agreement, will be duly authorized, validly
                issued
                and outstanding, fully paid and nonassessable and free and clear
                of all
                liens and restrictions, other than liens that might have been created
                or
                suffered by any Purchaser with respect to the Shares and restrictions
                imposed by the Securities Act, state securities laws or this Agreement.
                

            

    

    

    
      	
            	2.8.	
              Reservation
                of Warrant Shares.
                The Warrant Shares have been duly reserved for issuance upon exercise
                of
                the Warrants and, when issued and paid for in accordance with the
                terms of
                the Warrants, will be duly authorized, validly issued and outstanding,
                fully paid and nonassessable and free and clear of all liens and
                restrictions, other than liens that might have been created or suffered
                by
                any Purchaser with respect to the Warrant Shares and restrictions
                imposed
                by the Securities Act, state securities laws or this
                Agreement.

            

    

    

    
      	
            	2.9.	
              Securities
                Laws.
                Subject to the accuracy of the representations and warranties of
                the
                Purchasers, the offer, issue and sale of the Units are and will be
                exempt
                from registration and prospectus delivery requirements of the Securities
                Act, are and will be issued in compliance with all applicable federal
                and
                state securities laws.

            

    

    

    
      	
            	2.10.	
              Financial
                Statements.
                The financial statements of the Company made available for inspection
                by
                the Purchasers (i) are complete and correct in all material respects
                and
                are in accordance with the books and records of the Company, (ii)
                present
                fairly the consolidated financial condition of the Company and its
                subsidiaries at September 30, 2007 (the “Balance Sheet Date”) and other
                dates therein specified and the results of operations and changes
                in
                financial position of the Company and its subsidiaries for the periods
                therein specified, and (iii) have been prepared in accordance with
                generally accepted accounting principles applied on a basis consistent
                with prior accounting periods, except that the unaudited financial
                statements are subject to year-end audit adjustments and do not contain
                complete footnotes or statement of stockholders equity. The Company
                and
                its subsidiaries have no liabilities or obligations, either acquired
                or
                absolute, contingent or otherwise, of a type required by generally
                accepted accounting principles to be reflected on, or reserved against
                in,
                a balance sheet, which are not reflected or provided for in the financial
                statements and related notes except liabilities arising after the
                Balance
                Sheet Date which were incurred in the ordinary course of
                business.

            

    

    

    
      	
            	2.11.	
              Changes.
                Since the Balance Sheet Date, neither the Company nor any of its
                subsidiaries has (a) mortgaged, pledged or subjected to lien any of
                its material assets, tangible or intangible, (b) sold, transferred
                or
                leased a material portion of its assets, (c) cancelled or compromised
                any
                material debt or claim, or waived or released any right, of material
                value, (d) suffered any physical damage, destruction or loss (whether
                or
                not covered by insurance) having a material effect, (e) declared
                or paid
                any dividends on or made any other distributions with respect to,
                or
                purchased or redeemed, any of its outstanding equity securities,
                or
                (f) suffered or experienced any material adverse change or loss in
                its business other than its continuing losses from
                operations.

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 4

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	2.12.	
              Litigation.
                There is no action pending and, to the best knowledge of the Company,
                there is no material action threatened against the Company, its
                subsidiaries or their properties or assets. The Company is not in
                default
                with respect to any order, writ, judgment, injunction, decree,
                determination or award of any court or of any governmental entity.
                

            

    

    

    
      	
            	2.13.	
              Disclosure.
                The representations and warranties of the Company contained herein
                do not
                contain any untrue statement of material fact or omit to state a
                material
                fact necessary to make the statements therein, in light of the
                circumstances under which they are made, not
                misleading.

            

    

    

    
      	
            	2.14.	
              No
                Governmental Consent or Approval Required.
                Based in part on the representations made by the Purchaser in the
                Transaction Documents, no authorization, consent, approval or other
                order
                of, declaration to, or registration, qualification, designation or
                filing
                with, any federal, state or local governmental agency or body is
                required
                by or from the Company for the valid and lawful authorization, execution
                and delivery by the Company of this Agreement or any other agreement
                entered into by the Company in connection with this Agreement, and
                consummation of the transactions contemplated hereby or thereby,
                or for
                the valid and lawful authorization, issuance, sale and delivery of
                the
                Shares and the Warrants comprising the Units, and the issuance of
                the
                Warrant Shares upon exercise of the Warrants other than the qualification
                (or taking of such action as may be necessary to secure an exemption
                from
                qualification, if available) of the offer and sale of the Shares,
                Warrants
                and Warrant Shares under applicable blue sky laws and federal securities
                laws, which filings and qualifications, if required, will be accomplished
                in a timely manner so as to comply with such qualification or exemption
                from qualification requirements.

            

    

    

    
      	3.	
              REPRESENTATIONS
                AND WARRANTIES OF EACH PURCHASER.
                Each Purchaser represents and warrants to the Company as
                follows:

            

    

    

    
      	
            	3.1.	
              Status.
                If the Purchaser is a corporation or other entity, the Purchaser
                is a
                corporation or other entity duly organized, validly existing and
                in good
                standing under the laws of the jurisdiction of its organization with
                full
                power and authority to execute, deliver and perform its obligations
                under
                this Agreement, and the other Transaction Documents. If the Purchaser
                is
                an individual, the Purchaser has legal capacity to execute, deliver
                and
                perform his or her obligations under this Agreement, and the other
                Transaction Documents.

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 5

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	3.2.	
              Authority
                for Agreements.
                The Purchaser has the power and authority to execute and deliver
                this
                Agreement and the other Transaction Documents and to carry out its
                obligations hereunder and thereunder. The execution, delivery and
                performance by the Purchaser of this Agreement and the other Transaction
                Documents and the consummation of the transactions contemplated hereby
                and
                thereby have been duly authorized by all necessary action on the
                part of
                the Purchaser and this Agreement and the other Transaction Documents
                each
                constitutes the valid and legally binding obligation of the Purchaser,
                enforceable against the Purchaser in accordance with its terms, except
                as
                the same may be limited by bankruptcy, insolvency, reorganization
                or other
                laws affecting the enforcement of creditors' rights generally now
                or
                hereafter in effect and subject to the application of equitable principles
                and the availability of equitable
                remedies.

            

    

    

    
      	
            	3.3.	
              No
                Conflicts.
                The execution, delivery and performance of this Agreement and the
                other
                Transaction Documents by the Purchaser and the consummation of the
                transactions contemplated hereby and thereby by the Purchaser does
                not and
                will not with or without the giving of notice or the passage of time
                or
                both, violate or conflict with or result in a breach or termination
                of any
                provision of, or constitute a default under, the Certificate of
                Incorporation or the By-Laws of the Purchaser (if the Purchaser is
                a
                corporation), any other organizational instrument (if the Purchaser
                is a
                legal entity other than a corporation) or any order, judgment, decree,
                statute, regulation, contract, agreement or any other restriction
                of any
                kind or description to which the Purchaser is a party or by which
                the
                Purchaser may be bound.

            

    

    

    
      	
            	3.4.	
              Purchaser
                Representations and Acknowledgments.

            

    

    

    
      	
            	3.4.1.	
              The
                Purchaser is acquiring the Units for the Purchaser’s own account for
                investment only and not as nominee or agent and not with a view to,
                or for
                sale in connection with, a distribution of the Shares and with no
                present
                intention of selling, transferring, granting a participation in or
                otherwise distributing, the Units, all within the meaning of the
                Securities Act of 1933, as amended, and the rules and regulations
                hereunder (the "Securities Act") and any applicable state, securities
                or
                blue-sky laws. 

            

    

     

    
      	
            	3.4.2.	
              The
                Purchaser is not a party or subject to or bound by any contract,
                undertaking, agreement or arrangement with any person to sell, transfer
                or
                pledge the Units or any part thereof to any person, and has no present
                intention to enter into such a contract, undertaking, agreement or
                arrangement.

            

    

    

    
      	
            	3.5.	
              The
                Purchaser acknowledges to the Company
                that:

            

    

    

    
      	
            	3.5.1.	
              The
                Company has advised the Purchaser that the Units and Warrant Shares
                have
                not been registered under the Securities Act or under the laws of
                any
                state on the basis that the issuance thereof contemplated by this
                Agreement is exempt from such
                registration;

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 6

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	3.5.2.	
              The
                Company has advised the Purchaser that a purchase of the Units involves
                a
                high degree of risk and is suitable only for persons of substantial
                financial means who have no need for liquidity in their
                investments;

            

    

    

    
      	
            	3.5.3.	
              The
                Company's reliance on the availability of such exemption is, in part,
                based upon the accuracy and truthfulness of the Purchaser's
                representations contained herein;

            

    

    

    
      	
            	3.5.4.	
              The
                Units and the Warrant Shares cannot be resold without registration
                or an
                exemption under the Securities Act and such state securities laws,
                and
                that certificates representing the Units and the Warrant Shares will
                bear
                a restrictive legend to such effect substantially as
                follow;

            

    

    

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") AND APPLICABLE STATE SECURITIES
      LAWS, AND ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AS SET FORTH IN THIS
      CERTIFICATE. THE SECURITIES REPRESENTED HEREBY MAY NOT BE SOLD, TRANSFERRED,
      OR
      OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE ACT OR AN OPINION OF COUNSEL, REASONABLY ACCEPTABLE TO COUNSEL FOR
      THE
      COMPANY, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER, OR DISPOSITION MAY
      BE
      EFFECTUATED WITHOUT REGISTRATION UNDER THE ACT.”

     

    
      	
            	3.5.5.	
              The
                Purchaser has evaluated the merits and risks of purchasing the Units,
                and
                has such knowledge and experience in financial and business matters
                that
                the Purchaser are capable of evaluating the merits and risks of such
                purchase, is aware of and has considered the financial risks and
                financial
                hazards of purchasing the Units, and is able to bear the economic
                risk of
                purchasing the Units, including the possibility of a complete loss
                with
                respect thereto; 

            

    

    

    
      	
            	3.5.6.	
              The
                Purchaser has had access to such information regarding the business
                and
                finances of the Company and its subsidiaries, and have been provided
                the
                opportunity to discuss with the Company's management the business,
                affairs
                and financial condition of the Company and its subsidiaries and such
                other
                matters with respect to the Company and its subsidiaries as would
                concern
                a reasonable person considering the transactions contemplated by
                this
                Agreement and/or concerned with the operation of the Company;
                

            

    

    

    
      	
            	3.5.7.	
              All
                of the Purchaser's representations and warranties set forth herein
                are
                correct and complete as of the date of this Agreement, shall be true
                and
                correct as of the closing of the transaction contemplated by this
                Agreement, shall survive such closing and if there should be any
                material
                change in such information prior to the sale to the Purchaser of
                the Units
                the Purchaser will immediately furnish such revised or corrected
                information to the Company; and

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 7

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	3.5.8.	
              The
                Purchaser, by initialing the applicable paragraphs in the Subscription
                Agreement that is a part of the Transaction Documents represents
                and
                warrants that the Purchaser is an "Accredited
                Investor"
                within the meaning of Rule 501 of Regulation D promulgated under
                Section 4(2) of the Securities Act, as presently in effect.
                

            

    

    

    
      	4.	
              CONDITIONS
                PRECEDENT TO CLOSING

            

    

    

    
      	
            	4.1.	
              Conditions
                Precedent to the Obligations of the Purchasers.
                The obligation of each Purchaser to acquire Units at the Closing
                is
                subject to the satisfaction or waiver by such Purchaser, at or before
                the
                Closing, of each of the following
                conditions:

            

    

    

    
      	
            	4.1.1.	
              Representations
                and Warranties.
                The representations and warranties of the Company contained herein
                shall
                be true and correct in all material respects as of the date when
                made and
                as of the Closing as though made on and as of such date;
                and

            

    

    

    
      	
            	4.1.2.	
              Performance.
                The Company and each other Purchaser shall have performed, satisfied
                and
                complied in all material respects with all covenants, agreements
                and
                conditions required by the Transaction Documents to be performed,
                satisfied or complied with by it at or prior to the
                Closing.

            

    

    

    
      	
            	4.1.3.	
              No
                Injunction.
                No statute, rule, regulation, executive order, decree, ruling or
                injunction shall have been enacted, entered, promulgated or endorsed
                by
                any court or governmental authority of competent jurisdiction that
                prohibits the consummation of any of the transactions contemplated
                by the
                Transaction Documents;

            

    

    

    
      	
            	4.1.4.	
              Adverse
                Changes.
                Since the date of execution of this Agreement, no event or series
                of
                events shall have occurred that reasonably would be expected to have
                or
                result in a Material Adverse
                Effect.

            

    

    

    
      	
            	4.2.	
              Conditions
                Precedent to the Obligations of the Company.
                The obligation of the Company to sell Units at the Closing is subject
                to
                the satisfaction or waiver by the Company, at or before the Closing,
                of
                each of the following conditions:

            

    

    

    
      	
            	4.2.1.	
              Representations
                and Warranties.
                The representations and warranties of the Purchasers contained herein
                shall be true and correct in all material respects as of the date
                when
                made and as of the Closing Date as though made on and as of such
                date;
                and

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 8

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	4.2.2.	
              Performance.
                The Purchasers shall have performed, satisfied and complied in all
                material respects with all covenants, agreements and conditions required
                by the Transaction Documents to be performed, satisfied or complied
                with
                by the Purchasers at or prior to the
                Closing.

            

    

     

    
      	5.	
              INDEPENDENT
                NATURE OF PURCHASERS’ OBLIGATIONS AND RIGHTS.
                The obligations of each Purchaser under any Transaction Document
                are
                several and not joint with the obligations of any other Purchaser,
                and no
                Purchaser shall be responsible in any way for the performance of
                the
                obligations of any other Purchaser under any Transaction Document.
                The
                decision of each Purchaser to purchase Units pursuant to this Agreement
                has been made by such Purchaser independently of any other Purchaser
                and
                independently of any information, materials, statements or opinions
                as to
                the business, affairs, operations, assets, properties, liabilities,
                results of operations, condition (financial or otherwise) or prospects
                of
                the Company or of the Subsidiary which may have been made or given
                by any
                other Purchaser or by any agent or employee of any other Purchaser,
                and no
                Purchaser or any of its agents or employees shall have any liability
                to
                any other Purchaser (or any other Person) relating to or arising
                from any
                such information, materials, statements or opinions. Nothing contained
                herein or in any Transaction Document, and no action taken by any
                Purchaser pursuant thereto, shall be deemed to constitute the Purchasers
                as a partnership, an association, a joint venture or any other kind
                of
                entity, or create a presumption that the Purchasers are in any way
                acting
                in concert or as a group with respect to such obligations or the
                transactions contemplated by the Transaction Document. The Company
                hereby
                confirms that it understands that the Purchasers are not acting as
                a
                “group” as that term is used in Section 13(d) of the Exchange Act. Each
                Purchaser acknowledges that no other Purchaser has acted as agent
                for such
                Purchaser in connection with making its investment hereunder and
                that no
                other Purchaser will be acting as agent of such Purchaser in connection
                with monitoring its investment hereunder. Each Purchaser shall be
                entitled
                to independently protect and enforce its rights, including without
                limitation the rights arising out of this Agreement or out of the
                other
                Transaction Documents, and it shall not be necessary for any other
                Purchaser to be joined as an additional party in any proceeding for
                such
                purpose. Each Purchaser represents that it has been represented by
                its own
                separate legal counsel in its review and negotiations of this Agreement
                and the Transaction Documents

            

    

    

    
      	6.	
              MISCELLANEOUS 

            

    

    

    
      	
            	6.1.	
              Entire
                Agreement; Survival of Provisions.
                The Transaction Documents constitute the entire agreement of the
                parties
                with respect to the transactions contemplated hereby and supersede
                all
                prior agreements and understandings with respect thereto, whether
                written
                or oral. All of the covenants of the parties made herein shall remain
                operative and in full force and effect pursuant to their respective
                terms
                regardless of acceptance of the Shares and payment therefor. The
                representations and warranties set forth herein shall survive the
                execution and delivery of this Agreement, and the issuance of the
                Shares
                and Warrants in each case until the second anniversary of the date
                of this
                Agreement (the "Expiration
                Date"),
                and shall in no way be affected by any investigation of the subject
                matter
                thereof made by or on behalf of the Purchaser or the Company.
                Notwithstanding the preceding sentence, any representation or warranty
                in
                respect of which an indemnity may be sought hereof shall survive
                the time
                at which it would otherwise terminate pursuant to the preceding sentence,
                if a claim for indemnification shall have been given to the party
                against
                whom such indemnity may be sought prior to the Expiration Date. The
                agreements and covenants of the parties set forth in a Transaction
                Document shall survive for the term of the Transaction Document.
                The
                representations, warranties, agreements and covenants made in the
                Transaction Documents shall be deemed to have been relied upon by
                the
                parties hereto.

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 9

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	6.2.	
              No
                Waiver; Modifications in Writing.
                No failure or delay by a party in exercising any right, power or
                remedy
                hereunder shall operate as a waiver thereof, nor shall any single
                or
                partial exercise of any such right, power or remedy preclude any
                other or
                further exercise thereof or the exercise of any other right, power
                or
                remedy. Except as otherwise expressly provided herein with respect
                to any
                right of indemnification, the remedies provided for herein are cumulative
                and are not exclusive of any remedies that may be available to any
                party
                at law or in equity or otherwise. No waiver of or consent to any
                departure
                by a party from any provision of this Agreement shall be effective
                unless
                signed in writing by the parties entitled to the benefit thereof.
                No
                amendment, modification or termination of any provision of this Agreement
                shall be effective unless signed in writing by all parties. Any amendment,
                supplement or modification of or to any provision of this Agreement,
                any
                waiver of any provision of this Agreement, and any consent to any
                departure from the terms of any provision of this Agreement, shall
                be
                effective only in the specific instance and for the specific purpose
                for
                which made or given.

            

    

     

    
      	
            	6.3.	
              Notices.
                All notices, demands and other communications provided for hereunder
                shall
                be in writing, shall be given by registered or certified mail, return
                receipt requested, on the date sent by telecopy with electronic
                confirmation of such transmission, the date given by electronic or
                email
                delivery, or the business day next following deposit with a courier
                service for overnight delivery with written confirmation of such
                delivery
                or upon personal delivery, addressed to the parties, as
                follows:

            

    

     

    If
      to the
      Company, to:

     

    Versadial,
      Inc.

    305
      Madison Avenue, Suite 4510

    New
      York,
      NY 10165

    Facsimile:
      212-808-0113

    

    with
      a
      copy to (which shall not constitute notice): 

    

    Robert
      Barandes, Esq.

    Beckman,
      Lieberman & Barandes, LLP

    Suite
      1313, 116 John Street

    New
      York,
      NY 10038

    Telecopy:
      (212) 608-9687

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 10

        

        
          

        

      

      
        
        

      

    

     

    If
      to a
      Purchaser, at the address set forth on the signature page hereto.

     

    or
      to
      such other address as any party shall designate in writing in compliance with
      the provisions of this Section.

     

    
      	
            	6.4.	
              Execution
                in Counterparts.
                This Agreement may be executed in any number of counterparts and
                by
                different parties hereto on separate counterparts, which may be delivered
                by facsimile or electronic copy, each of which counterparts, when
                so
                executed and delivered, shall be deemed to be an original and all
                of which
                counterparts, taken together, shall constitute but one and the same
                Agreement.

            

    

     

    
      	
            	6.5.	
              Binding
                Effect; Assignment.
                The rights and obligations of the parties under this Agreement may
                not be
                assigned or otherwise transferred to any other Person, without the
                prior
                written consent of the other party hereto. Except as expressly provided
                in
                this Agreement, this Agreement shall not be construed so as to confer
                any
                right or benefit upon any Person other than the parties to this Agreement
                and their respective successors and permitted assigns. This Agreement
                shall be binding upon and shall inure to the benefit of the Company,
                the
                Purchasers and their respective permitted successors and
                assigns.

            

    

     

    
      	
            	6.6.	
              Governing
                Law.
                This Agreement shall be deemed to be a contract made under and shall
                be
                governed by and construed in accordance with the internal laws of
                the
                State of New York without reference to the principles of conflict
                of laws,
                provided, however, that the due authorization, issuance and enforceability
                of the terms of the Common Stock or any requirement of stockholder
                approval or the validity or invalidity of any action by the Board
                of
                Directors or compliance by the Company or any subsidiary with its
                Certificate of Incorporation or bylaws or any of their corporate
                authority, shall be governed by, and construed in accordance with,
                the
                laws of the domicile of such entity, without giving effect to the
                principles thereof relating to the conflict of laws.
                

            

    

     

    
      	
            	6.7.	
              Consent
                to Jurisdiction and Service of Process.
                Any suit, action or proceeding arising out of or relating to the
                Transaction Documents or the transactions contemplated hereby or
                thereby
                may be instituted in any Federal court situated in the State of New
                York
                or any state court of the State of New York, in each case, in the
                Borough
                of Manhattan, City of New York, in the State of New York, and each
                party
                agrees not to assert, by way of motion, as a defense or otherwise,
                in any
                such suit, action or proceeding, any claim that it is not subject
                personally to the jurisdiction of such court, that the suit, action
                or
                proceeding is brought in an inconvenient forum, that the venue of
                the
                suit, action or proceeding is improper or that the Transaction Documents
                or the subject matter hereof or thereof may not be enforced in or
                by such
                court. Each party further irrevocably submits to the jurisdiction
                of such
                court in any such suit, action or proceeding. Any and all service
                of
                process and any other notice in any such suit, action or proceeding
                shall
                be effective against any party if given personally or by registered
                or
                certified mail, return receipt requested if sent to such party at
                the
                address for such party set forth in Section 6.3 hereof, or by any
                other
                means of mail that requires a signed receipt, postage fully prepaid,
                mailed to such party as herein provided. Nothing herein contained
                shall be
                deemed to affect the right of any party to serve process in any manner
                permitted by law or to commence legal proceedings or otherwise proceed
                against any other party in any other
                jurisdiction.

            

    

     

    
      
        
        

      

      
        
          Securities
            Purchase Agreement 11

        

        
          

        

      

      
        
        

      

    

     

    
      	
            	6.8.	
              Further
                Assurances.
                Each of the parties hereto shall execute and deliver such documents,
                instruments and agreements and take such further actions as may be
                reasonably required or desirable to carry out the provisions of the
                Transaction Documents and the transactions contemplated hereby and
                thereby, and each of the parties hereto shall cooperate with each
                other in
                connection with the foregoing.

            

    

     

    
      	
            	6.9.	
              Severability
                of Provisions.
                Any provision hereof that is prohibited or unenforceable in any
                jurisdiction shall, as to such jurisdiction, be ineffective to the
                extent
                of such prohibition or unenforceability without invalidating the
                remaining
                provisions hereof, and any such prohibition or unenforceability in
                any
                jurisdiction shall not invalidate or render unenforceable such provision
                in any other jurisdiction. To the extent permitted by law, the parties
                hereto waive any provision of law that renders any such provision
                prohibited or unenforceable in any
                respect.

            

    

     

    
      	
            	6.10.	
              Headings.
                The Article, Section and subsection headings used or contained in
                this
                Agreement are for convenience of reference only and shall not affect
                the
                construction of this Agreement.

            

    

     

    
      	
            	6.11.	
              Costs
                and Expenses.
                Other then as previously agreed to in a separate writing between
                the
                Company and Fursa Master Global Event Driven Fund, L.P., each party
                shall
                bear its own costs and expenses in connection with the execution
                and
                delivery of the Transaction
                Documents.

            

    

     

    
      	
            	6.12.	
              Waiver
                of Jury Trial.
                The parties hereto hereby irrevocably waive all right to a trial
                by jury
                in any action, proceeding or counterclaim arising out of or relating
                to
                this Agreement or any other Transaction Document or the transactions
                contemplated hereby or thereby.

            

    

     

    SIGNATURE
      PAGE 

     

    The
      Parties acknowledge that the signature page of the Subscription Agreement which
      is part of the Transaction Documents shall be deemed the signature page
      hereof.

     

    
      
        
        

      

      
        
          
            Securities
              Purchase Agreement 12Unassociated Document

    Exhibit
      4.24

    FORM
      OF WARRANT

    

    NEITHER
      THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HAVE BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
      OR UNDER ANY STATE SECURITIES LAW. THE COMPANY WILL NOT TRANSFER THIS WARRANT,
      OR ANY SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE, UNLESS (i) THERE IS AN
      EFFECTIVE REGISTRATION COVERING THIS WARRANT OR SHARES UNDER THE SECURITIES
      ACT
      AND APPLICABLE STATE SECURITIES LAWS, (ii) IT FIRST RECEIVES AN OPINION FROM
      COUNSEL, REASONABLY ACCEPTABLE TO COUNSEL FOR THE COMPANY, STATING THAT THE
      PROPOSED TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT AND
      UNDER
      ALL APPLICABLE STATE SECURITIES LAWS, OR (iii) THE TRANSFER IS MADE PURSUANT
      TO
      RULE 144 PROMULGATED UNDER THE SECURITIES ACT.

     

    Date
      of
      Issuance:      , 2008

     

    VERSADIAL,
      INC.

     

    Stock
      Purchase Warrant

     

    (Void
      after           , 2013
      )

    

    VERSADIAL,
      INC., a Nevada corporation (the “Company”),
      for
      value received, hereby certifies and agrees
      that                                                 
, or its registered assigns (the “Registered
      Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at
      any time or from time to time on or after the date hereof (the “Date
      of Issuance”)
      and on
      or before 5:00 p.m. New York time on [five years from original issue date]
      (such
      date and time, the “Expiration
      Time”),
      [                                                                
 ]
      (               
 ) duly authorized, validly issued, fully paid and non-assessable shares of
      the Company’s
      common stock, $0.0001 par value per share (the “Common
      Stock”),
      at an
      initial exercise price equal to $2.00 per share, subject to adjustment in
      certain cases as described herein. The shares issuable upon exercise of this
      Warrant, and the purchase price per share, are hereinafter referred to as the
      “Warrant Shares” and the “Exercise Price,” respectively. The term “Warrant” as
      used herein shall include this Warrant and any other warrants delivered in
      substitution or exchange therefor, as provided herein. This Warrant shall
      terminate at the Expiration Time. 

    

    This
      Warrant is one of the Warrants of the Company issued pursuant to that certain
      Securities Purchase Agreement dated as of January , 2008 by and among the
      Company and the Investors named on the signature pages thereof (the
“Securities
      Purchase Agreement”).
      Any
      capitalized term used and not otherwise defined herein shall have the meaning
      given such term in the Securities Purchase Agreement. The Warrant Shares are
      entitled to the benefits of a Registration Rights Agreement dated as of January
      , 2008 by and among the Company and the Investors named on the signature pages
      thereof.

    

    
      
        
        

      

      
        
          Warrant
            1

        

        
          

        

      

      
        
        

      

    

     

    1. Exercise.

     

    1.1  Method
      of Exercise

    

    (a) This
      Warrant may be exercised by the Registered Holder at any time from time to
      time,
      in whole or in part, prior to the Expiration Time by surrendering this Warrant,
      with a Notice of Exercise in the form of Annex A hereto (the “Notice of
      Exercise”) duly executed by such Registered Holder or by such Registered
      Holder’s duly authorized attorney, at the principal office of the Company set
      forth on the signature page hereto, or at such other office or agency as the
      Company may designate in writing (the “Company’s Office”), accompanied by
      payment in full, in lawful money of the United States (by wire transfer of
      immediately available funds or by bank cashier’s or certified check), of the
      Exercise Price payable in respect of the number of shares of Warrant Shares
      purchased upon such exercise. In lieu of cash payment, the Warrant may be
      exercised through a cashless exercise in the manner set forth in Section 1.2
      below.

     

    (b) Each
      exercise of this Warrant shall be deemed to have been effected immediately
      prior
      to the close of business on the day on which the appropriate Annex form shall
      be
      dated and directed to the Company (as evidenced by the applicable postmark
      or
      other evidence of transmittal) as provided in Section 1.1(a) hereof. At such
      time, the person or persons in whose name or names any certificates for Warrant
      Shares shall be issuable upon such exercise as provided in Section 1.1(c) hereof
      shall be deemed to have become the holder or holders of record of the Warrant
      Shares represented by such certificates.

    

    (c) As
      soon
      as practicable after the exercise of this Warrant, in full or in part, and
      in
      any event within five (5) Business Days thereafter, the Company, at its expense,
      will cause to be issued in the name of, and delivered to, the Registered Holder,
      or as such Registered Holder (upon payment by such Registered Holder of any
      applicable transfer taxes) may direct:

     

    (i) a
      certificate or certificates for the number of full Warrant Shares to which
      such
      Registered Holder shall be entitled upon such exercise plus, in lieu of any
      fractional share to which such Registered Holder would otherwise be entitled,
      cash in an amount determined pursuant to Section 3 hereof; and

     

    (ii) in
      case
      such exercise is in part only, a new warrant or warrants (dated the date hereof)
      of like tenor, representing in the aggregate on the face or faces thereof the
      number of Warrant Shares equal (without giving effect to any adjustment therein)
      to the number of such shares called for on the face of this Warrant minus the
      number of such shares purchased by the Registered Holder upon such exercise
      as
      provided in Section 3 hereof or received pursuant to Section 1.2
      hereof.

     

    
      
        
        

      

      
        
          Warrant
            2

        

        
          

        

      

      
        
        

      

    

     

    1.2. Exercise
      by Surrender of Warrant.
      In
      addition to the method of payment set forth in Section 1.1 and in lieu of any
      cash payment required thereunder, this Warrant may be exercised by surrendering
      this Warrant in the manner specified in this Section 1.2, together with
      irrevocable instructions to the Company to issue in exchange for this Warrant
      the number of shares of the Common Stock equal to the product of (x) the number
      of shares of the Common Stock underlying this Warrant multiplied by (y) a
      fraction, the numerator of which is the Market Value (as defined below) of
      the
      Common Stock less the Exercise Price and the denominator of which is such Market
      Value. As used herein, the phrase “Market Value” at any date shall be deemed to
      be the last reported sale price, or, in case no such reported sale takes place
      on such day, the average of the last reported sale prices for the last five
      (5)
      trading days, in either case as officially reported by the principal securities
      exchange on which the Common Stock is listed or the NASD’s OTC Bulletin Board if
      admitted to trading thereon, or, if the Common Stock is not so reported, the
      average closing bid price as furnished by the Pink Sheets LLC or similar
      organization if Pink Sheets LLC is no longer reporting such information, or
      if
      the Common Stock is not so quoted, as determined in good faith by resolution
      of
      the Board of Directors of the Company, based on the best information available
      to it.

     

    2. Shares
      to be Fully Paid; Reservation of Shares; Fractional
      Shares.The
      Company covenants and agrees that all shares of the Common Stock which may
      be
      issued upon the exercise of the rights represented by this Warrant will, upon
      issuance by the Company, be validly issued, fully paid and nonassessable, and
      free from preemptive rights and free from all taxes, liens, security interests
      and charges with respect thereto. The Company further covenants and agrees
      that,
      from and after the Date of Issuance and during the period within which the
      rights represented by this Warrant may be exercised, the Company will at all
      times have authorized, and reserve, free from preemptive rights, out of its
      authorized but unissued shares of the Common Stock, solely for the purpose
      of
      effecting the exercise of this Warrant, a sufficient number of shares of the
      Common Stock to provide for the exercise of the rights represented by this
      Warrant. The Company shall not be required upon the exercise of this Warrant
      to
      issue any fractional shares but shall make an adjustment therefor in cash on
      the
      basis of the Market Value for each fractional share of the Common Stock which
      would be issuable upon exercise of this Warrant.

    

    3. Requirements
      for Transfer.

    

    (a) Warrant
      Register. The Company will maintain a register (the “Warrant Register”)
      containing the names and addresses of the Registered Holder or Registered
      Holders. Any Registered Holder of this Warrant or any portion thereof may change
      its address as shown on the Warrant Register by written notice to the Company
      requesting such change, and the Company shall promptly make such change. Until
      this Warrant is transferred on the Warrant Register of the Company, the Company
      may treat the Registered Holder as shown on the Warrant Register as the absolute
      owner of this Warrant for all purposes, notwithstanding any notice to the
      contrary, provided, however, that if and when this Warrant is properly assigned
      in blank, the Company may, but shall not be obligated to, treat the bearer
      hereof as the absolute owner hereof for all purposes, notwithstanding any notice
      to the contrary. 

    

    
      
        
        

      

      
        
          Warrant
            3

        

        
          

        

      

      
        
        

      

       

    

    (b) Warrant
      Agent. The Company may, by written notice to the Registered Holder, appoint
      an agent for the purpose of maintaining the Warrant Register referred to in
      Section 3(a) hereof, issuing shares of the Common Stock issuable upon the
      exercise of this Warrant, exchanging this Warrant, replacing this Warrant or
      any
      or all of the foregoing. Thereafter, any such registration, issuance, exchange,
      or replacement, as the case may be, may be made at the office of such
      agent.

    

    (c) Transfer.
      Subject to the provisions of this Section 3, this Warrant and all rights
      hereunder are transferable, in whole or in part, upon the surrender of this
      Warrant with a properly executed Assignment Form in substantially the form
      attached hereto as Annex B (the “Assignment”) at the principal office of the
      Company.

    

    (d) Exchange
      of Warrant Upon a Transfer.
      On
      surrender of this Warrant for exchange, properly endorsed on the Assignment
      and
      subject to the provisions of this Warrant and with the limitations on
      assignments and transfers as contained in this Section 3, the Company at its
      expense shall issue to or on the order of the Registered Holder a new warrant
      or
      warrants of like tenor, in the name of the Registered Holder or as the
      Registered Holder (on payment by the Registered Holder of any applicable
      transfer taxes) may direct, for the number of shares issuable upon exercise
      hereof.

    

    4. Adjustment.
      

    

    (a) Computation
      of Adjusted Exercise Price.
      Except
      as hereinafter provided, in case the Company shall at any time after the date
      hereof issue or sell any shares of its Stock (as defined in Section 4(g)), other
      than the issuances or sales referred to in Section 4(h) hereof, for a
      consideration per share less than the Exercise Price in effect immediately
      prior
      to the issuance or sale of such shares, or without consideration, then forthwith
      upon such issuance or sale, the Exercise Price shall (until another such
      issuance or sale) be reduced to the price (calculated to the nearest full cent)
      equal to the quotient derived by dividing (A) an amount equal to the sum of
      (X)
      the product of (a) the Exercise Price in effect immediately prior to such
      issuance or sale, multiplied by (b) the total number of shares of Stock
      outstanding immediately prior to such issuance or sale, plus (Y) the aggregate
      of the amount of all consideration, if any, received by the Company upon such
      issuance or sale, by (B) the total number of shares of Stock outstanding
      immediately after such issuance or sale; provided, however, that in no event
      shall the Exercise Price be adjusted pursuant to this computation to an amount
      in excess of the Exercise Price in effect immediately prior to such computation,
      except in the case of a combination of outstanding shares of Stock, as provided
      by Section 4(c) hereof. For the purposes of this Section 4 the term Exercise
      Price shall mean the Exercise Price per share set forth on the first page of
      this Warrant, as adjusted from time to time pursuant to the provisions of this
      Section 4.

     

    (i) For
      purposes of any computation to be made in accordance with this Section 4(a),
      the
      following provisions shall be applicable:

     

    
      
        
        

      

      
        
          Warrant
            4

        

        
          

        

      

      
        
        

      

       

    

    (ii) In
      case
      of the issuance or sale of shares of Stock for a consideration part or all
      of
      which shall be cash, the amount of the cash consideration shall be deemed to
      be
      the amount of cash received by the Company for such shares (or, if shares of
      Stock are offered by the Company for subscription, the subscription price,
      or,
      if either of such securities shall be sold to underwriters or dealers for public
      offering without a subscription price, the public offering price, before
      deducting therefrom any compensation paid or discount allowed in the sale,
      underwriting or purchase thereof by underwriters or dealers or other persons
      or
      entities performing similar services), or any expenses incurred in connection
      therewith.

     

    (iii) In
      case
      of the issuance or sale (otherwise than as a dividend or other distribution
      on
      any stock of the Company) of shares of Stock for a consideration part or all
      of
      which shall be other than cash, the amount of the consideration therefor other
      than cash shall be deemed to be the value of such consideration as determined
      in
      good faith by the Board of Directors of the Company.

     

    (iv) Shares
      of
      Stock issuable by way of dividend or other distribution on any capital stock
      of
      the Company shall be deemed to have been issued immediately after the opening
      of
      business on the day following the record date for the determination of
      stockholders entitled to receive such dividend or other distribution and shall
      be deemed to have been issued without consideration.

     

    (v) The
      reclassification of securities of the Company other than shares of Stock into
      securities including shares of Stock shall be deemed to involve the issuance
      of
      such shares of Stock for consideration other than cash immediately prior to
      the
      close of business on the date fixed for the determination of security holders
      entitled to receive such shares, and the value of the consideration allocable
      to
      such shares of Stock shall be determined as provided in Section
      4(a)(iii).

     

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

     

    (b) Options,
      Rights, Warrants and Convertible and Exchangeable Securities.

     

    (i) In
      case
      the Company shall at any time after the date hereof issue options, rights or
      warrants to subscribe for shares of Stock (collectively, “Options” and
      individually, an “Option”), or issue any securities convertible into or
      exchangeable for shares of Stock (collectively, “Convertible Securities” and
      individually, “Convertible Security”), for a consideration per share less than
      the Exercise Price in effect immediately prior to the issuance of such Options
      or such Convertible Securities, or without consideration, the Exercise Price
      in
      effect immediately prior to the issuance of such Options or such Convertible
      Securities, as the case may be, shall be reduced to a price determined by making
      a computation in accordance with the provisions of Section 4(a) hereof, provided
      that:

     

    
      
        
        

      

      
        
          Warrant
            5

        

        
          

        

      

      
        
        

      

       

    

    (ii) The
      aggregate maximum number of shares of Stock, as the case may be, issuable under
      such Options shall be deemed to be issued and outstanding at the time such
      Options were issued, for a consideration equal to the minimum purchase price
      per
      share provided for in such Options at the time of issuance, plus the
      consideration (determined in the same manner as consideration received on the
      issue or sale of shares in accordance with the terms of this Warrant), if any,
      received by the Company for such Options. The aggregate maximum number of shares
      of Stock issuable upon conversion or exchange of any Convertible Securities
      shall be deemed to be issued and outstanding at the time of issuance of such
      Convertible Securities, and for a consideration equal to the consideration
      (determined in the same manner as consideration received on the issue or sale
      of
      shares of Stock in accordance with the terms of this Warrant) received by the
      Company for such Convertible Securities, plus the minimum consideration, if
      any,
      receivable by the Company upon the conversion or exchange thereof. If any change
      shall occur in the price per share provided for in any of the Options referred
      to in this subsection, or in the price per share at which the Convertible
      Securities referred to in this subsection are exchangeable, such Options or
      Convertible Securities, as the case may be, shall be deemed to have expired
      or
      terminated on the date when such price change became effective in respect to
      shares not theretofore issued pursuant to the exercise or exchange thereof,
      and
      the Company shall be deemed to have issued upon such date new Options or
      Convertible Securities at the new price in respect of the number of shares
      issuable upon the exercise of such Options or the conversion or exchange of
      such
      Convertible Securities.

     

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

     

    (d) Merger
      or Consolidation. In case of any consolidation of the Company with, or
      merger of the Company into any other corporation, or in case of any sale or
      conveyance of all or substantially all of the assets of the Company other than
      in connection with a plan of complete liquidation of the Company, then, as
      a
      condition of such consolidation, merger or sale or conveyance, adequate
      provision will be made whereby the Registered Holder will have the right to
      acquire and receive upon exercise of this Warrant in lieu of the shares of
      the
      Common Stock immediately theretofore subject to acquisition upon the exercise
      of
      this Warrant, such shares of stock, securities or assets as may be issued or
      payable with respect to or in exchange for the number of shares of the Common
      Stock immediately theretofore subject to acquisition and receivable upon
      exercise of this Warrant had such consolidation, merger or sale or conveyance
      not taken place. In any such case, the Company will make appropriate provision
      to insure that the provisions of this Section 4 hereof will thereafter be
      applicable as nearly as may be in relation to any shares of stock or securities
      thereafter deliverable upon the exercise of this Warrant. 

    

    
      
        
        

      

      
        
          Warrant
            6

        

        
          

        

      

      
        
        

      

       

    

    (e) Notice
      of Adjustment. Upon the occurrence of any event which requires any
      adjustment of the Exercise Price, then and in each such case the Company shall
      give notice thereof to the Registered Holder, which notice shall state the
      Exercise Price resulting from such adjustment and the increase or decrease,
      if
      any, in the number of Warrant Shares purchasable at such price upon exercise,
      setting forth in reasonable detail the method of calculation and the facts
      upon
      which such calculation is based.

    

    (f) Adjustment
      in Number of Securities. Upon each adjustment of the Exercise Price pursuant
      to the provisions of this Section 4, the number of securities issuable upon
      the
      exercise of this Warrant shall be adjusted to the nearest full amount by
      multiplying a number equal to the Exercise Price in effect immediately prior
      to
      such adjustment by the number of Warrant Shares issuable upon exercise of this
      Warrant immediately prior to such adjustment and dividing the product so
      obtained by the adjusted Exercise Price.

    

    (g) Definition
      of Stock.
      For the
      purpose of this Agreement, the term “Stock” shall mean (i) the class of stock
      designated as the Common Stock in the Articles of Incorporation of the Company
      as may be amended as of the date hereof, or (ii) any other class of stock
      resulting from successive changes or reclassifications of such Stock consisting
      solely of changes in par value, or from par value to no par value, or from
      no
      par value to par value. 

    

    (h) No
      Adjustment of Exercise Price in Certain Cases.
      No
      adjustment of the Exercise Price shall be made:

    

    (i) Upon
      issuance or sale of this Warrant or Warrant Shares, or the other Warrants,
      if
      any, issued pursuant to the Securities Purchase Agreement and Warrant Shares
      issued upon exercise thereof, or other options, warrants and convertible
      securities outstanding as of the date hereof into or for shares of the Common
      Stock.

     

    (ii) Upon
      the
      issuance or sale of any shares of capital stock, or the grant of options
      exercisable therefor, issued or issuable after the date of this Warrant, to
      directors, officers, employees, advisers and consultants of the Company or
      any
      subsidiary pursuant to any incentive or non-qualified stock option plan or
      agreement, stock purchase plan or agreement, stock restriction agreement or
      restricted stock plan, employee stock ownership plan (ESOP), consulting
      agreement, stock appreciation right (SAR), stock depreciation right (SDR),
      bonus
      stock arrangement, or such other similar compensatory options, issuances,
      arrangements, agreements or plans approved by the Board of
      Directors.

     

    
      
        
        

      

      
        
          Warrant
            7

        

        
          

        

      

      
        
        

      

       

    

    (iii) If
      the
      amount of said adjustment shall be less than one cent ($0.01) per security
      issuable upon exercise of this Warrant, provided, however, that in such case
      any
      adjustment that would otherwise be required then to be made shall be carried
      forward and shall be made at the time of and together with the next subsequent
      adjustment which, together with any adjustment so carried forward, shall amount
      to at least two cents ($0.02) per security issuable upon exercise of this
      Warrant.

     

    5. No
      Impairment.
      The
      Company will not, by amendment of its charter or through reorganization,
      consolidation, merger, dissolution, sale of assets 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 carry out all such terms and take all
      such
      action as may be reasonably necessary or appropriate in order to protect the
      rights of the holder of this Warrant against impairment.

     

    6. Notices
      of Record Date, Etc.If
      the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time deliverable upon the exercise of this Warrant) for
      the
      purpose of entitling or enabling them to receive any dividend or other
      distribution, or to receive any right to subscribe for or purchase any shares
      of
      stock of any class or any other securities, or to receive any other right;
      or of
      any capital reorganization of the Company, any reclassification of the capital
      stock of the Company, any consolidation or merger of the Company with or into
      another corporation (other than a consolidation or merger in which the Company
      is the surviving entity), or any transfer of all or substantially all of the
      assets of the Company; or of the voluntary or involuntary dissolution,
      liquidation or winding-up of the Company, then, and in each such case, the
      Company will mail or cause to be mailed to the Registered Holder of this Warrant
      a notice specifying, as the case may be, (i) the date on which a record is
      to be
      taken for the purpose of such dividend, distribution or right, and stating
      the
      amount and character of such dividend, distribution or right, or (ii) the
      effective date on which such reorganization, reclassification, consolidation,
      merger, transfer, dissolution, liquidation or winding-up is to take place,
      and
      the time, if any is to be fixed, as of which the holders of record of Common
      Stock (or such other stock or securities at the time deliverable upon the
      exercise of this Warrant) shall be entitled to exchange their shares of Common
      Stock (or such other stock or securities) for securities or other property
      deliverable upon such reorganization, reclassification, consolidation, merger,
      transfer, dissolution, liquidation or winding-up. Such notice shall be mailed
      at
      least ten (10) days prior to the record date or effective date for the event
      specified in such notice unless such prior notice is waived by the Registered
      Holder.

    

    7. No
      Rights of Stockholders.The
      Registered Holder shall not be entitled to vote, to receive dividends or
      subscription rights, nor shall anything contained herein be construed to confer
      upon the Registered Holder, as such, any of the rights of a stockholder of
      the
      Company, including without limitation any right to vote for the election of
      directors or upon any matter submitted to stockholders, to give or withhold
      consent to any corporate action (whether upon any recapitalization, issuance
      of
      stock, reclassification of stock, change of par value or change of stock to
      no
      par value, consolidation, merger, conveyance, or otherwise), to receive notices,
      or otherwise, until the Warrant shall have been exercised as provided herein..
      

     

    
      
        
        

      

      
        
          Warrant
            8

        

        
          

        

      

      
        
        

      

    

     

    8. Replacement
      of Warrant.Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and (in the case of loss, theft or
      destruction) upon delivery of an indemnity agreement reasonably satisfactory
      to
      the Company, or (in the case of mutilation) upon surrender and cancellation
      of
      this Warrant, the Company will issue, in lieu thereof, a new Warrant of like
      tenor.

    

    9. Limitation
      on Sales.
      The
      Registered Holder of this Warrant acknowledges that this Warrant and the Warrant
      Shares, as of the date of original issuance of this Warrant, have not been
      registered under the Securities Act of 1933, as amended (the "Securities Act"),
      and agrees not to sell, pledge, distribute, offer for sale, transfer or
      otherwise dispose of this Warrant or any Warrant Shares issued upon its exercise
      in the absence of (i) an effective registration statement under the Securities
      Act as to this Warrant or such Warrant Shares or (ii) an opinion of counsel,
      reasonably acceptable to the Company and its counsel, that such registration
      and
      qualification are not required. The Warrant Shares issued upon exercise thereof
      shall be imprinted with a legend in substantially the following
      form:

    

    “THE
      ISSUANCE OF THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD,
      PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
      UNDER
      SUCH ACT OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
      SAID
      ACT OR APPLICABLE STATE SECURITIES LAWS, SUPPORTED BY AN OPINION OF COUNSEL,
      REASONABLY ACCEPTABLE TO COUNSEL FOR THE COMPANY, THAT SUCH REGISTRATION IS
      NOT
      REQUIRED.”

    

    10. Mailing
      of Notices, Etc.
      All
      notices and other communications from the Company to the Registered Holder
      of
      this Warrant shall be mailed by first-class certified or registered mail,
      postage prepaid, to the address furnished to the Company in writing by the
      last
      Registered Holder of this Warrant who shall have furnished an address to the
      Company in writing. All notices and other communications from the Registered
      Holder of this Warrant or in connection herewith to the Company shall be mailed
      by first-class certified or registered mail, postage prepaid, to the Company
      at
      its principal office set forth below. If the Company should at any time change
      the location of its principal office to a place other than as set forth below,
      then it shall give prompt written notice to the Registered Holder of this
      Warrant and thereafter all references in this Warrant to the location of its
      principal office at the particular time shall be as so specified in such
      notice.

    

    11. Change
      or Waiver.Any
      term
      of this Warrant may be changed or waived only by an instrument in writing signed
      by the party against which enforcement of the change or waiver is
      sought.

     

    
      
        
        

      

      
        
          Warrant
            9

        

        
          

        

      

      
        
        

      

    

     

    12. Headings.The
      headings in this Warrant are for purposes of reference only and shall not limit
      or otherwise affect the meaning of any provision of this Warrant. 

    

    13. Severability.If
      any
      provision of this Warrant shall be held to be invalid and unenforceable, such
      invalidity or unenforceability shall not affect any other provision of this
      Warrant.

    

    14. Governing
      Law and Submission to Jurisdiction.This
      Warrant will be governed by and construed in accordance with the laws of the
      State of New York without regard to principles of conflict or choice of laws
      of
      any jurisdiction. The parties hereby agree that any action, proceeding or claim
      against it arising out of, or relating in any way to this Warrant shall be
      brought and enforced in the courts of the State of New York, and irrevocably
      submit to such jurisdiction, which jurisdiction shall be exclusive.

    

    15. Supplements
      and Amendments.The
      Company and the Registered Holder may from time to time supplement or amend
      this
      Warrant in order to cure any ambiguity, to correct or supplement any provision
      contained herein which may be defective or inconsistent with any provision
      herein, or to make any other provisions in regard to matters or questions
      arising hereunder which the Company and the Holder may deem necessary or
      desirable.

    

    16. Successors.This
      Warrant shall be binding upon and shall inure to the benefit of the respective
      successors and assigns of the parties, except that the Company shall not have
      the right to assign or otherwise transfer all or any part of its rights or
      obligations hereunder or any interest herein without the prior written consent
      of the Registered Holder.

    

    17. Benefits
      of this Warrant.Nothing
      in this Warrant shall be construed to give to any person, entity or corporation
      other than the Company and the Registered Holder of the Warrant Certificate
      any
      legal or equitable right, remedy or claim under this Warrant; and this Warrant
      shall be for the sole and exclusive benefit of the Company and the Registered
      Holder of the Warrant Certificate.

    

    Balance
      of Page Intentionally left Blank

    Signature
      Page Follows

     

    
      
        
        

      

      
        
          Warrant
            10

        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, VERSADIAL, INC. has caused this Warrant to be signed by its
      duly authorized officer under its corporate seal and to be dated on the day
      and
      year first written above.

    

    
      	 	
              VERSADIAL,
                INC.

            
	 	 	 
	 	
              By:

            	
               

            	
            
	 	 	
              Name:
                Geoffrey Donaldson

            
	 	 	
              Title:
                Chairman of the Board

            

    

     

    
      	 	
              Principal
                Office:

            	
              305
                Madison Avenue

            
	 	 	 	
              Suite
                4510

            
	 	 	 	
              New
                York, NY 10165

            

    

     

    
      
        
        

      

      
        
          Warrant
            11

        

        
          

        

      

      
        
        

      

    

     

    ANNEX
      A

    

    NOTICE
      OF EXERCISE FORM

    

    
      	
              To:

            	
              Dated:                                            
                

            

    

    

    The
      undersigned, pursuant to the provisions in the attached Warrant, hereby
      irrevocably elects to: [check the appropriate box]

    

    __
      (i) purchase
      _____ shares of Common Stock covered by such Warrant and hereby makes payment
      of
      $_______, representing the full purchase price for shares at the exercise price
      per share provided for in such Warrant. Enclosed herewith is payment of the
      exercise price of such shares in full; or 

    

    __
      (ii)
      exercise the Warrant on a “cashless” basis in the manner set forth in Section
      1.2 of the Warrant. Such calculation results in the net issuance of _______
      shares of Common Stock of the Company to the undersigned. 

    

    Please
      have the shares of Common Stock of the Company issuable pursuant to this
      exercise delivered to ________________.

    

    

    Signature:

    Dated: 

    Address:

     

    
      
        
        

      

      
        
          Warrant
            12

        

        
          

        

      

      
        
        

      

    

    

    ANNEX
      B

    

    ASSIGNMENT
      FORM

    

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

    

    
      	
              Name
                of Assignee

            	 	
              Address

            	 	
              No.
                of Shares

            

    

    

    
      	 	
              Dated:
                

            
	 	 
	 	
              Signature: 

            
	 	
              Dated:

            
	 	 
	 	
              Witness: 

            

    

     

    
      
        
        

      

      
        
          Warrant
            13

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