Document:

MERIDIAN USA HOLDINGS, INC.

                          SECURITIES PURCHASE AGREEMENT
                                  JUNE 16, 2000

                           MERIDIAN USA HOLDINGS, INC.
                          SECURITIES PURCHASE AGREEMENT

     This Securities Purchase Agreement (the "Agreement") is made as of June 16,
2000,  by  and  among  Meridian  USA  Holdings, Inc., a Florida corporation (the
"Corporation",  and  together  with  its  Subsidiaries  (as  defined below), the
"Company"), and each of the persons identified as a "Purchaser" on the signature
pages  hereto  (each  such  person,  a  "Purchaser,"  and  collectively,  the
"Purchasers").

                                    SECTION 1

                   AUTHORIZATION AND SALE OF CONVERTIBLE NOTES

     1.1  Authorization.  The  Corporation  has authorized the issuance of up
to  $8,000,000  aggregate  principal  amount  of  the  Corporation's  Series  A
Convertible  Notes  (the "Notes"), having the rights and privileges set forth in
the  form  of  Note  attached  hereto  as  Exhibit  A.

    1.2  Sale  of Convertible Notes. Subject to the terms and conditions hereof,
each  of  the Purchasers, severally and not jointly, agrees to purchase from the
Corporation,  and  the  Corporation  agrees to issue and sell to each Purchaser,
Notes in the aggregate principal amount set forth under each Purchaser's name on
the  signature  pages  hereto,  at  a  purchase price of $1,000.00 per $1,000.00
principal  amount,  for  an  aggregate  purchase  price  of  $8,000,000.00.

                                    SECTION 2

                             CLOSING DATE; DELIVERY

     2.1  Closing  Date.  The  closing  of the purchase and sale of the Notes
hereunder  (the  "Closing") shall be held at the offices of Sidley & Austin, 555
West  Fifth Street, 40th Floor, Los Angeles, California  90013 on June 16, 2000,
or at such other time and place as may be agreed upon by the Corporation and the
Purchasers  who  have subscribed for a majority of the Notes.  The date on which
the  Closing  actually  occurs is hereinafter referred to as the "Closing Date".

     2.2  Delivery.  At the Closing, the  Corporation  shall  deliver  to  each
Purchaser  a  certificate  or certificates, registered in such Purchaser's name,
representing  the  aggregate  principal  amount  of  Notes  set forth under such
Purchaser's  name on the signature pages hereto, against payment of the purchase
price  therefor  by check payable to the Corporation or by wire transfer per the
Corporation's  instructions.

                                    SECTION 3

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     Except  as  set  forth  on  the  Schedule  of Exceptions attached hereto as
Exhibit  B  (the  "Schedule  of  Exceptions"),  the  Corporation  represents and
warrants  to  each  Purchaser  as  follows:

     3.1  Organization and Standing; Certificate and Bylaws.  The Corporation
and  each  of its Subsidiaries is a corporation duly organized, validly existing
and  in  good  standing under the laws of the State of Florida.  The Corporation
and  each of its Subsidiaries has all requisite corporate power and authority to
own  and  operate  its  properties  and  assets  and to carry on its business as
presently  conducted  and as proposed to be conducted.  The Corporation and each
of its Subsidiaries is qualified to do business as a foreign corporation in each
jurisdiction  where  failure  to  be  so qualified would have a material adverse
effect  on  the  Company's business as presently conducted and as proposed to be
conducted.  The Company has furnished to the Purchasers' legal counsel copies of
the Articles of Incorporation of the Corporation (the "Certificate") and each of
its subsidiaries, in each case as amended through the date hereof and the Bylaws
of  the  Corporation  (the "Bylaws") and each of its subsidiaries.  These copies
are  true,  correct  and  complete  and  give  effect  to all amendments to such
documents  through  the  date  hereof.

     3.2 Corporate Power.  The Corporation has all requisite corporate power and
authority  to  execute  and  deliver this Agreement, the Notes, the Registration
Rights  Agreement,  the  Securityholders  Agreement  and  the  Investor  Rights
Agreement  (each  as  defined  in  Section 5.5 hereof) (collectively, the "Other
Agreements"),  to  adopt  the  Certificate  of  Designation in the form attached
hereto as Exhibit C (the "Series II Designation") of the Corporation's Series II
Convertible  Preferred  Stock,  par  value  $.01  per  share  (the  "Series  II
Preferred")  to  issue  and  sell  the  Notes  hereunder, to issue the Series II
Preferred  issuable  upon  conversion  of  the  Notes, to issue the Common Stock
issuable  upon  conversion  of the Series II Preferred (the "Conversion Stock"),
and  to  carry  out and perform the Corporation's obligations under the terms of
this  Agreement  and  the  Other  Agreements.

      3.3  Subsidiaries. The Schedule of Exceptions set forth a list, as of the
date  hereof, of all direct or indirect entities in which the Corporation has an
equity  interest  (the  "Subsidiaries").  Except as set forth in the Schedule of
Exceptions,  the  Corporation  owns,  either  directly or indirectly, all of the
outstanding  capital stock of the Subsidiaries free and clear of any claim, lien
or  encumbrance.  All  of  the issued and outstanding shares of capital stock of
the  Subsidiaries  are validly issued, fully paid and non-assessable.  Except as
set  forth  in  the  Schedule of Exceptions, there are outstanding no securities
convertible  into,  exchangeable  for,  or carrying the right to acquire, equity
securities  of  any  of  the  Subsidiaries, or subscriptions, warrants, options,
rights  or  other arrangements or commitments obligating any Subsidiary to issue
or  acquire  any  of  its  equity  securities or any ownership interest therein.

     3.4  Capitalization. The authorized capital  stock  of  the  Corporation
consists  of  the  following:

     (a)     20,000,000  shares of Common Stock, $0.001 par value per share (the
"Common  Stock"),  6,191,399  of which are issued and outstanding as of the date
hereof.

     (b)  1,000,000 shares of Preferred  Stock, $1.00 par value (the "Preferred
Stock"),  3,500  of  which  have  been  designated Series I Preferred Stock (the
"Series  I Preferred") (3,500 of which are issued and outstanding as of the date
hereof);  and  8,500 of which as of the Closing will have been designated Series
II  Preferred  (none  of  which shall be issued and outstanding at the Closing).
The  Series II Preferred, when issued upon conversion of the Notes in accordance
with  the  terms  thereof  will be validly issued, fully paid and non-assessable
shares  of  Series  II  Preferred  with  no  personal liability attaching to the
ownership  thereof  and  will  be  free  and  clear  of  all  liens,  charges,
restrictions,  claims  and  encumbrances  imposed  by or through the Corporation
except  as  set  forth  in  the Certificate, the Bylaws, the Registration Rights
Agreement  and  the  Securityholders  Agreement.  The Conversion Shares, when so
issued,  will  be validly issued, fully paid and non-assessable shares of Common
Stock  with no personal liability attaching to the ownership thereof and will be
free  and  clear  of  all  liens, charges, restrictions, claims and encumbrances
imposed  by  or  through the Corporation except as set forth in the Certificate,
the Bylaws, the Registration Rights Agreement and the Securityholders Agreement.
The  issuance,  sale  or delivery of the Notes, the Series II Preferred Stock or
the  Conversion Shares is not subject to any preemptive right of stockholders of
the  Corporation or to any right of first refusal or other right in favor of any
person.

     (c)     The  Schedule  of  Exceptions  sets  forth  a  list, as of the date
hereof,  of  all  holders  of  subscriptions,  warrants,  options,  convertible
securities,  and other rights (contingent or otherwise) to purchase or otherwise
acquire  (directly  or  indirectly)  equity  securities  of the Corporation (the
"Other  Securities"),  along  with  the  number  of  shares of equity securities
underlying such Other Securities, the exercise or conversion price of such Other
Securities,  the  date  such  Other  Securities were issued, the date such Other
Securities  are  exercisable or convertible and any expiration date with respect
thereto.  The  Corporation  has  reserved  2,063,030  shares of Common Stock for
issuance  upon conversion of the currently outstanding shares of Preferred Stock
and  exercise  or  conversion  of  the  Other  Securities.  Each of the Series I
Preferred,  and  Series  II  Preferred  as  of the Closing will have the rights,
preferences,  privileges  and  restrictions  set  forth  in the Certificate, the
Certificate  of  Designation  of  Series  I  Preferred  Stock  (the  "Series  I
Designation"),  and  the  Series  II  Designation.

     (d)     The  Corporation  has  reserved  492,500 shares of Common Stock for
issuance  of options and restricted stock to directors, employees or consultants
pursuant to stock plans or other compensatory arrangements approved by the Board
of  Directors  of  the Corporation, of which shares 392,500 have been issued and
are  outstanding  as  of  the  date  hereof.

     Except  (i)  as  set  forth  above in this Section 3.4, (ii) for the rights
granted  in  this Agreement, the Notes, the Series II Preferred and in the Other
Agreements,  and  (iii)  for the rights granted to holders of Series I Preferred
pursuant  to  the  Series  I  Designation,  as  of  the  date  hereof  there are
outstanding  no  subscriptions, options, calls, warrants, conversion privileges,
preemptive  rights,  rights  of  first  refusal  or other similar commitments or
rights to which the Corporation is a party or by which the Corporation is bound,
with  respect  to the purchase or other acquisition of any of the authorized but
unissued capital stock of the Corporation.  All of the outstanding securities of
the  Corporation were issued in compliance with all applicable Federal and state
securities  laws.

     3.5  Authorization;  No Breach.  The execution, delivery and performance
of this Agreement, the Notes and the Other Agreements by the Corporation and the
consummation  by  the  Corporation  of  all  transactions contemplated hereby or
thereby,  including  but  not  limited to the offering, issuance and sale of the
Notes  pursuant  to  this  Agreement,  have been duly authorized by all required
corporate  actions  of  the  Corporation  and  its stockholders.  This Agreement
constitutes,  and  this  Agreement, the Notes and the Other Agreements as of the
Closing  will  constitute,  valid  and  binding  obligations of the Corporation,
enforceable  against  the Corporation in accordance with their respective terms,
except  (i)  as  limited  by  applicable bankruptcy, insolvency, reorganization,
moratorium  and  other  laws  of  general  application  affecting enforcement of
creditors'  rights  generally,  (ii)  as  limited  by  laws  relating  to  the
availability  of  specific  performance,  injunctive  relief, or other equitable
remedies,  or  (iii)  to  the  extent  the  indemnification  provisions  in  the
Registration  Rights  Agreement  may  be  limited by applicable federal or state
securities  laws.  The  execution  and  delivery  by  the  Corporation  of  this
Agreement,  the  Notes  and  the  Other  Agreements, and the consummation by the
Corporation  of  the transactions contemplated hereby and thereby, including but
not  limited  to  the  offering, issuance and sale of the Notes pursuant to this
Agreement,  do  not  and will not (with or without due notice, lapse of time, or
both) (i) conflict with or result in a breach of any of the terms, conditions or
provisions  of, (ii) constitute a default under, (iii) result in the creation of
any  lien,  security  interest,  charge or encumbrance upon the capital stock or
assets  of the Corporation or any of its Subsidiaries pursuant to, (iv) give any
third party the right to accelerate any obligation under, or terminate any right
of  the  Company  under,  (v)  result  in  a  violation  of, or (vi) require any
authorization,  consent,  qualification,  approval,  exemption,  filing or other
action  by  or notice to any court or administrative or governmental body or any
other  person  or entity (other than (A) the filing of the Series II Designation
with  the Secretary of State of the State of Florida and (B) filings pursuant to
Section  25102.1(d)  of  the  California  Corporate  Securities  Law of 1968, as
amended,  and  the  rules thereunder, other applicable state securities laws and
Regulation  D  of the Securities Act) pursuant to, any of (x) the Certificate or
Bylaws  of  the Corporation, (y) any law, statute, rule, regulation, instrument,
order,  judgment  or  decree  to  which the Company, or any of its properties is
subject,  or  (z)  any  contract,  evidence  of  indebtedness,  permit, license,
agreement  or  instrument to which the Company is a party or to which any of the
Company's  properties  is  subject.

     3.6  Financial Information.  Attached hereto as Exhibit D are the Company's
(i) unaudited consolidated balance sheet (the "Balance Sheet") at March 31, 2000
(the  "Balance  Sheet Date") and unaudited consolidated statement of operations,
statement  of  stockholders'  equity  and  statement  of cashflows, each for the
period  from  December 31, 1999 to the Balance Sheet Date (collectively with the
Balance  Sheet,  the  "Unaudited  Financial  Statements"),  and  (ii)  audited
consolidated  balance  sheet  as  of  December 31, 1999 and 1998 and the audited
consolidated  statement  of  operations,  statement  of stockholders' equity and
statement  of  cashflows  for the twelve-month periods then ended, including the
footnotes  thereto  (the  "Annual  Financial  Statement"  and  together with the
Unaudited  Financial  Statements,  the  "Financial  Statements").  The Financial
Statements  (a) are in accordance with the books and records of the Company, (b)
present  fairly  the financial condition and operating results of the Company at
the specified dates and for the periods then ended as indicated therein, and (c)
were  prepared  in  accordance  with  generally  accepted  accounting principles
("GAAP"),  consistently  applied  subject  to year-end audit adjustments and the
absence  of  footnotes in the case of the unaudited statements.  The Corporation
and  each  of the Subsidiaries has maintained their respective books and records
in  a  manner  sufficient  to  permit the preparation of financial statements in
accordance  with  GAAP,  such  books and records fairly reflect, in all material
respects,  the  income,  expenses, assets and liabilities of the Corporation and
each  of the Subsidiaries and the books and records provided a fair and accurate
basis  for the preparation of the Financial Statements.  The financial condition
and  results  of operations of each Subsidiary are, and for all periods referred
to  in  this  Section 3.6 have been, consolidated with those of the Corporation.

     3.7  Absence of Certain Changes. Since December 31, 1999 there has not been
any  event  or  condition  of  any character that has had, or is likely to have,
individually  or  together  with any other such events or conditions, a material
adverse  effect  on  the Company's business, operations, prospects, liabilities,
capitalization  or  financial  condition or the Company's ability to perform its
obligations  under  this  Agreement,  the  Notes or the Other Agreements (herein
generically  referred  to as a "Material Adverse Effect").  Without limiting the
generality  of  the  foregoing:

     (a) The  Company  is  not  subject  to  any  liability  determined  in
accordance  with  GAAP  (whether  secured  or  unsecured  and  whether  accrued,
absolute,  contingent,  direct, indirect or otherwise) that is not shown or that
is  in  excess  of the amounts shown or reserved for in the Balance Sheet, other
than  liabilities of the same nature as those set forth in the Balance Sheet and
the notes thereto and which are not material in amount and have been incurred in
the  ordinary  course  of  business  after  the  Balance  Sheet  Date;

     (b)  There has been no damage, destruction or loss of any of the properties
or  assets  of  the Company (whether or not covered by insurance) materially and
adversely  affecting  the  properties  or  business  of  the  Company;

     (c)  The Company has not  declared,  set aside, paid or otherwise made any
distribution  in  respect  of  any  of the Company's capital stock, or redeemed,
purchased  or  otherwise  acquired  any  of  such  stock;

    (d)  Except for the leases  encumbering the equipment and furniture of the
Company  as listed on the Schedule of Exceptions, the Company has not granted or
made  any mortgage, pledge, security interest or lien with respect to any of the
Company'  material  properties  or assets, except liens for taxes not yet due or
payable;

     (e)  There  has  been  no  increase  in  the  salary,  wages  or  other
compensation  of  any  officer,  employee  or  consultant of the Company, or any
establishment or modification of salary ranges, guidelines or similar provisions
in  respect  of  any benefit plan, employment-related contract or other employee
compensation  arrangement;

     (f)  There has been no material  change  in  (x) any pricing, accounting,
financial  reporting,  inventory, credit, allowance or tax practice or policy of
the Company, or (y) any method of calculating any bad debt, contingency or other
reserve  of  the Company for accounting, financial reporting or tax purposes, or
any  change  in  the  fiscal  year  of  the  Company;

    (g)  Any write-off or write-down of or any determination to write off or
write  down  any  of  the  assets  of  the  Company;

    (h)  Any acquisition or disposition of, or incurrence  of  a  lien  or
encumbrance  on, any assets of the Company, other than in the ordinary course of
business  consistent  with  past  practice;

    (i) Any capital expenditures or commitments for additions to property, plant
or  equipment  of the Company constituting capital assets in an aggregate amount
exceeding  $100,000;

    (j)  Any transaction by the Company with any officer, director, or affiliate
(other than any Subsidiary) other than pursuant to any contract in effect on the
date  of the Audited Financial Statements and disclosed pursuant to the Schedule
of  Exceptions;  or

     (k)  Any entering into of a contract, agreement or understanding to do or
engage  in  any  of  the  foregoing.

     3.8  Material  Contracts  and  Other  Commitments.

     (a)  The  Schedule  of  Exceptions  sets  forth  a  list, as of the date
hereof,  of:

     (i)  any contract for the purchase or sale of goods or services that
involved  the  payment  of  more  than $25,000 in 1999, and any contract for the
purchase  or  sale  of goods or services that the Company reasonably anticipates
will  involve  the  payment  of more than $25,000 in 2000 or that extends beyond
December  31,  2000  and cannot be terminated by the Company on not more than 60
days'  notice  and  without  cost  or  liability  to  the  Company;

    (ii) any contract for the purchase, licensing or development of Intellectual
Property  (as  defined  below);

     (iii)  any guarantee of  the obligations of customers, officers, directors,
employees,  affiliates  or  others;

    (iv)  any agreement that  provides for, or relates to, the incurring by the
Company  of  debt  for  borrowed  money;

    (v) any contract not made in the ordinary course of the Company's business
as  previously  conducted;

    (vi) any contracts providing for a commitment of employment or consultation
services for a specified or unspecified term or otherwise relating to employment
or  the  termination of employment, or any written or unwritten representations,
commitments,  promises,  communications  or  courses  of  conduct  involving  an
obligation  of  the  Company  to  make  payments  in  any  year, to any employee
exceeding $25,000 or any group of employees exceeding $100,000 in the aggregate;

     (vii)  any contracts containing any  pro-vision or covenant prohibiting or
limiting  the  ability  of  the  Company  to  engage in any business activity or
compete  with  any  person  or  entity;

     (viii)  any partnership, joint venture,  shareholders'  or  other  similar
contracts;

     (ix)  any contracts with distributors, dealers,  manufacturer's
representatives,  sales  agencies  or  franchisees;

     (x)  any contracts relating to (A) the future disposition or acquisition of
any  assets,  other  than dispositions or acquisitions in the ordinary course of
business  consistent  with  past  practice, and (B) any merger or other business
combination;  or

     (xi)  any other contract, commitment, understanding or instrument that is
material  to  the  Company.

     (b)  Except  as  set  forth  in  the  Schedule of Exceptions, all of the
Commitments  referred  to  in  the  preceding  paragraph  (a)  and listed in the
Schedule  of  Exceptions  are  valid,  binding,  in  full  force  and effect and
enforceable  in  accordance  with  their  terms  against the Company, and to the
knowledge  of  the  Company,  against  the  respective  counterparties  to  such
Commitments.  Complete  copies  (or,  if oral, full written descriptions) of all
Commitments  required  to  be  so  listed, including all amendments thereto, and
complete  copies  of  all  standard  form Commitments used in the conduct of the
Company's business, have been made available to Purchasers.  Except as set forth
in  the Schedule of Exceptions, (i) there is no breach, violation or default and
no event which, with notice or lapse of time or both, would constitute a breach,
violation  or  default,  or  give  rise  to  any lien or encumbrance or right of
termination,  modification,  cancellation,  prepayment,  suspension, limitation,
revocation  or  acceleration  under,  any  Commitment  listed in the Schedule of
Exceptions,  except  for  breaches,  violations  and  defaults,  or  lien  or
encumbrances  or  rights of termination, modification, cancellation, prepayment,
suspension, limitation, revocation or acceleration which, individually or in the
aggregate,  are  not material and (ii) neither the Company nor, to the knowledge
of the Company, any other party to any of the Commitments listed in the Schedule
of  Exceptions  is  in  material  arrears  in  respect  of  the  performance  or
satisfaction  of  the  terms  and  conditions  on  its  part  to be performed or
satisfied  under  any  of  such  Commitments  and no material waiver or material
indulgence  has  been  granted  by  any  of  the  parties  thereto.

     3.9  Stockholders,  Directors and Officers; Certain Transactions. Except
for  those transactions listed on the Schedule of Exceptions, the Company is not
indebted  to, has not guaranteed the indebtedness of, and has not engaged in any
business  transaction  with  (either  directly  or indirectly), any stockholder,
officer  or  director, or to any of their respective spouses or children, of any
amount  whatsoever, other than as provided in such person's employment agreement
with  the  Company,  if  any,  and  other than any travel, relocation, and other
expenses  that  are  advanced and reimbursed in the ordinary course of business.
No  officer,  director  or  stockholder  of  the  Company (nor any person in the
immediate  family  of  any  such  officer,  director  or  stockholder)  nor  any
significant  employee  of the Company (nor any person in the immediate family of
any such significant employee) is indebted to the Company or to the knowledge of
the  Company  has any material direct or indirect ownership interest in any firm
with  which  the  Company  is  affiliated, with which the Company has a business
relationship that is material to the Company or with which the Company competes.

    3.10  Litigation, etc. There is no action, suit, proceeding or investigation
pending  or,  to the Company's knowledge, threatened to which the Company or any
of  its  directors  or  officers, as such, is a party except as disclosed on the
Schedule  of  Exceptions,  none  of  which  is likely to have a Material Adverse
Effect,  result  in  a  material  adverse  change  in  the business, operations,
prospects,  liabilities, capitalization or financial condition of the Company or
that  questions  the  validity  as  against the Company of this Agreement or the
Other Agreements or any action taken by the Company or to be taken in connection
herewith  or  therewith.

     3.11  Title to Properties; Liens and Encumbrances. The Company has good and
marketable  title to its properties and assets and, with respect to the property
and  assets  leased  by the Company, holds valid leasehold interests therein, in
each  case  subject to no mortgage, pledge, lien, security interest, conditional
sale  agreement,  encumbrance  or  charge, except (a) tax, materialmen's or like
liens for obligations not yet due or payable or being contested in good faith by
appropriate  proceedings,  as  set  forth  on the Schedule of Exceptions, or (b)
liens  or  encumbrances  that do not individually or in the aggregate materially
impair  the  Company's  use  thereof or materially detract from the value of the
Company  and  that  have  arisen  in  the  ordinary  course of business.  To the
Company's  knowledge,  there  exists no default or other occurrence or condition
that  could  result  in  termination  of  any of the leases under which material
properties  and  assets  are  leased  by  the  Company.

      3.12  Intellectual  Property.

     (a)  Each  item  of  Company Intellectual Property (as defined below) is
set  forth  on  the  Schedule  of  Exceptions.

      (b)  Except as set forth  on  the Schedule of Exceptions: (i) each item of
Company  Intellectual Property will be owned or available for use by the Company
on  identical terms and conditions immediately subsequent to the Closing as they
were  by  the  Company  immediately  prior  to  the Closing; (ii) all registered
patents,  trademarks,  service  marks  and  copyrights listed on the Schedule of
Exceptions  are  valid  and  subsisting and in full force and effect and are not
subject  to  any  taxes  or  other fees except for annual filing and maintenance
fees;  (iii)  there  has  been  no  notice,  claim or assertion that any item of
Company  Intellectual  Property  is  invalid,  and there are no facts that would
cause  a  reasonable  person  to  conclude that any item of Company Intellectual
Property  is  invalid;  (iv) the Company has the right to use all of the Company
Intellectual Property in all jurisdictions in which its business is conducted or
proposed  to be conducted, and the consummation of the transactions contemplated
hereby  will  not  alter or impair any such rights; (v) the Company Intellectual
Property  is  all the Intellectual Property that is necessary for the Company to
own  or  license to carry on its business as presently conducted and as proposed
to  be  conducted;  and  (vi)  the Company has taken all necessary and desirable
action  to  maintain  and  protect  each  item of Company Intellectual Property.

     (c)  Other than as set forth on the Schedule of Exceptions, the Company has
not  interfered  with,  infringed  upon,  misappropriated or otherwise come into
conflict with any Intellectual Property rights of third parties, and the Company
has  not  received  any  charge, complaint, claim, demand or notice alleging any
such  interference,  infringement,  misappropriation or violation (including any
claim  that  the  Company  must  license  or refrain from using any Intellectual
Property rights of any third party).  Other than as set forth on the Schedule of
Exceptions,  no third party has interfered with, infringed upon, misappropriated
or  otherwise  come  into  conflict  with  any  Company  Intellectual  Property.

      (d)  With respect to each item of Company Intellectual Property, except as
set  forth  on  the Schedule of Exceptions: (i) the Company possesses all right,
title  and  interest  in  and  to  the  item,  free  and  clear  of  any lien or
encumbrance,  license  or other restriction; (ii) the item is not subject to any
outstanding  order, decree, ruling or charge; (iii) no action, suit, proceeding,
hearing, investigation, charge, complaint, claim or demand is pending or, to the
Company's  knowledge,  threatened,  which  challenges  the  legality,  validity,
enforceability,  use or ownership of the item; (iv) the Company has never agreed
to  indemnify  any  person  for  or  against  any  interference,  infringement,
misappropriation  or  other conflict with respect to the item; (v) each license,
sublicense,  agreement or permission covering the item is, and immediately after
the  Closing  will  be, legal, valid, binding, enforceable and in full force and
effect;  (vi) no party to any license, sublicense, agreement or permission is in
breach  or default, and no event has occurred which with notice or lapse of time
would  constitute  a  breach  or  default or permit termination, modification or
acceleration thereunder; (vii) no party to any license, sublicense, agreement or
permission  has  repudiated  any  provision  thereof; (viii) with respect to any
sublicense,  the  representations  and  warranties  set forth in subsections (i)
through (vii) above are true and correct with respect to the underlying license;
(ix)  with  respect  to  each  license, sublicense, agreement or permission, the
underlying  item  of  Company  Intellectual  Property  is  not  subject  to  any
outstanding  injunction,  judgment,  order,  decree,  ruling or charge; (x) with
respect  to  each license, sublicense, agreement or permission, no action, suit,
proceeding,  hearing,  investigation,  charge,  complaint,  claim  or  demand is
pending  or  is  threatened  which  challenges  the  legality,  validity  or
enforceability of the underlying item of Company Intellectual Property; and (xi)
with  respect  to  each  license,  sublicense,  agreement  or  permission,  the
Stockholders  have  not  granted any sublicense or similar right with respect to
the  license,  sublicense,  agreement  or  permission.

      (e)  To the Company's knowledge, there are  no new products, inventions,
procedures  or methods of processing that any competitors or other third parties
have  developed  or  marketed which reasonably could be expected to supercede or
make  obsolete  any  product  or  process  of  the  Company.

    (f) The continued operation of the Company's business as presently conducted
and  as  presently  proposed  to  be conducted will not interfere with, infringe
upon,  misappropriate,  or  otherwise  come into conflict with, any Intellectual
Property  rights  of  third  parties.

      (g)  None of the Company's  employees (x) are obligated under any contract
(including licenses, covenants or commitments of any nature) or other agreement,
or  (y)  are  subject  to  any  judgment,  decree  or  order  of  any  court  or
administrative agency, that would interfere with the use of such employee's best
efforts  to  promote  the  interests  of  the  Company's  business  as presently
conducted  or  proposed  to  be  conducted.

      (h)  The Company's business, as  currently conducted and as proposed to be
conducted,  does  not  and will not need to utilize any inventions of any of its
employees,  former  employees,  directors,  shareholders or persons it currently
intends  to  hire,  the  rights  to  which  have  not been fully assigned to the
Company.

      (i)     As  used  herein:

     "Intellectual  Property"  shall mean (A) all inventions (whether patentable
or  unpatentable  and  whether  or  not  reduced  to practice), all improvements
thereon,  and  all patents, patent applications and patent disclosures, together
with  all  reissuances,  continuations,  continuations-in  part,  revisions,
extensions  and reexaminations thereof, (B) all trademarks, service marks, trade
dress,  logos,  trade names, domain names and corporate names, together with all
translations,  adaptations,  derivations  and combinations thereof and including
all  goodwill  associated  therewith,  and  all  applications, registrations and
renewals  in  connection  therewith, (C) all copyrightable works, all copyrights
and  all  applications,  registrations and renewals in connection therewith, (D)
all  mask  works  and all applications, registrations and renewals in connection
therewith,  (E)  all  trade  secrets  and  confidential  business  information
(including  ideas,  research  and development, know-how, formulas, compositions,
manufacturing  and  production  processes  and  techniques, methods, schematics,
technology,  technical  data,  designs,  drawings,  flowcharts,  block diagrams,
specifications,  customer  and  supplier lists, pricing and cost information and
business  and  marketing  plans  and  proposals),  (F)  all  computer  software
(including  data  and related documentation) other than commercial off-the-shelf
software  (including,  without  limitation,  any  software  licensed  under  a
"shrink-wrap," "click-through," "break-the-seal" or other agreement or purported
agreement  not  signed by the parties thereto, (G) all other proprietary rights,
(H)  all  copies  and tangible embodiments of the foregoing (in whatever form or
medium)  and  (I)  all  licenses or agreements in connection with the foregoing.
"Company  Intellectual  Property"  shall  mean all Intellectual Property that is
material  to  the  operation  of  the  Business.

     3.13  Employee  Violations;  Proprietary  Information Agreement.  To the
best  of  the Company's knowledge, no employee of the Company is in violation of
any  term  of  any  employment  contract,  disclosure  agreement  or  any  other
agreement,  order  or  decree relating to the relationship of such employee with
the  Company  or any other party because of the nature of the business conducted
or to be conducted by the Company.  To the best of the Company's knowledge, none
of  its  employees has any obligation under any agreement, judgment or otherwise
that  would  interfere  with such employee exercising his or her best efforts to
promote  the  interests of the Company or that would conflict with the Company's
business  as  currently  proposed.

      3.14  Taxes.  Other than as set forth  on the Schedule of Exceptions, the
Company  has  not  requested  any  extensions and has timely filed and as of the
Closing  will  have  filed all tax returns required to be filed with appropriate
federal,  state,  county  and  local governmental agencies or instrumentalities.
The  Company  has  paid  or  established  adequate  reserves  on  the  Financial
Statements  for all income, franchise and other taxes, assessments, governmental
charges,  penalties,  interest  due  and  payable  by  the Company.  There is no
pending  dispute  with any taxing authority relating to any of the Company's tax
returns,  and the Company has no knowledge of any proposed liability for any tax
to  be  imposed  upon the properties or assets of the Company for which there is
not  an  adequate  reserve  reflected  on  the  Balance  Sheet.

     3.15  Compliance with Other Instruments. The Company is not in violation of
(i)  any  provision of the Corporation's Certificate or Bylaws, (ii) any term or
provision  of  any  material  agreement  or commitment to which the Company is a
party,  nor  (iii)  in  any  material  respect  of  any  order, statute, rule or
regulation  applicable  to  the  Company,  including  without  limitation  any
applicable  statute,  law,  or  regulation  relating  to  the  environment  or
occupational  health  and  safety.

     3.16 Brokers or Finders.  The Company has not incurred, and will not incur,
directly  or  indirectly,  as  a  result of any agreement entered into or action
taken  by  the  Company, any liability for brokerage or finders' fees or agents'
commissions or any similar charges in connection with this Agreement, other than
to  U.S. Bancorp Libra, a division of U.S. Bancorp Investments, Inc. pursuant to
the  engagement  agreement  dated  as  of  May  2,  2000.

     3.17  Minute Books.  The minute books and stock record books of the Company
provided  to  counsel  for  the  Purchasers contain, in all material respects, a
complete and accurate summary of all meetings and actions taken by the Company's
Board  and  its  stockholders.

     3.18  Indebtedness.  Each outstanding loan to  the Company and outstanding
indebtedness  of  the Company to any person in excess of $25,000 is set forth on
the Schedule of Exceptions (or in the case of affiliated parties in any amount),
together  with  the name of the creditor, all amounts owing, including principal
and  interest,  and  when  such  indebtedness  is due and payable.  For purposes
hereof,  "indebtedness"  includes  all  obligations (i) for borrowed money, (ii)
evidenced  by  notes,  bonds,  debentures  or similar instruments, (iii) for the
deferred  purchase  price  of  goods  or  services (other than trade payables or
accruals incurred in the ordinary course of business), (iv) under capital leases
or  (v)  in the nature of guarantees of the obligations described in clauses (i)
through  (iv) above.  The Company is not in default of any of its obligations to
such  creditors.

     3.19  Stockholder Agreements.  Except as required  by  this Agreement, the
Notes, the Other Agreements or as set forth in the Schedule of Exceptions, there
is  no  agreement  or  arrangement  between  the  Corporation  and  any  of  the
Corporation's  stockholders,  or  to  the  best  of the Corporation's knowledge,
between or among any of the Corporation's stockholders, that grant to any person
any special rights with respect to any shares of the Corporation's capital stock
or  that in any way affect any stockholder's ability or right freely to alienate
or  vote  such  shares.

     3.20  Offering.  Subject to the truth  and  accuracy  of  each Purchaser's
representations  in  Section 4 hereof, the offer, issuance and sale of the Notes
are exempt from the registration requirements of Section 5 of the Securities Act
of  1933,  as  amended  (the  "Securities Act"), and applicable state securities
laws.

     3.21  Use or Proceeds. The Company shall use the proceeds from the sale of
the  Notes,  for  marketing,  product  development,  working  capital  and other
corporate  uses.

     3.22  Ownership of Securities. Upon issuance and delivery of the Notes (and
upon  issuance  and  delivery  of the Series II Preferred upon conversion of the
Notes  in accordance with the terms thereof and the issuance and delivery of the
Conversion  Stock  upon conversion of the Series II Preferred in accordance with
the terms thereof) to each Purchaser pursuant to this Agreement in consideration
of  the  Purchasers' payments therefor, the Notes, shares of Series II Preferred
and  Conversion  Stock  will  be  duly  and  validly  issued,  fully  paid  and
nonassessable,  free and clear of any lien, charge or encumbrance other than (a)
restrictions  on transfer under federal or state securities laws or as set forth
herein  and  in the Other Agreements, and (b) any liens, charges or encumbrances
created  by  the  Purchaser  holding  such  shares.

      3.23  Registration Rights.  Upon the Closing,  except  as set forth in the
Registration  Rights  Agreement,  the  Company will not be under any contractual
obligation  to  register,  sell or otherwise transfer or cause the registration,
sale  or other transfer any of the Company's securities then outstanding or that
thereafter  may  be  issued.

     3.24     Disclosure.

     (a)  None  of the representations or warranties of the Company contained
in  this  Agreement or any of the Other Agreements is false or misleading in any
material  respect  or  omits  to  state  a  material  fact necessary to make the
statements  contained  herein or therein not misleading in any material respect,
nor  is  there  any fact known to the Company that has not been disclosed to the
Purchasers  that  would  make  such statements misleading or that would indicate
that  a  material  adverse  effect  is  reasonably  possible.

    (b)  All forms, reports and documents filed with the Securities and Exchange
Commission (the "Commission"), by the Corporation, did not at the time they were
filed  contain  any  untrue  statement  of  a  material  fact or omit to state a
material  fact  required  to be stated therein or necessary in order to make the
statements  made  therein,  in  light of the circumstances under which they were
made,  not  misleading.

     3.25  Products.  Except  as  set  forth  on  the Schedule of Exceptions,
there  are  no  statements,  citations  or  decisions  by  any  governmental  or
regulatory  authority  stating  that  any product or service manufactured, sold,
designed,  distributed  or  marketed  at any time by the Company ("Products") is
defective  or  unsafe  or  fails  to  meet  any  standards  promulgated  by  any
governmental  authority,  except  as  would  not have a Material Adverse Effect.
Except as set forth on the Schedule of Exceptions, there is no (i) fact relating
to any Product that, may impose upon the Company a duty to recall a Product or a
duty to warn customers of a defect in any Product, (ii) material latent or overt
design, manufacturing or other defect in any Product or (iii) material liability
for  warranty  claims  or  returns  with  respect  to  any  Product.

     3.26  Insurance.  All of the material assets of the Company and all aspects
of  its  business  that are of insurable character are covered by insurance with
reputable  insurers  against  risks  of  liability,  casualty and fire and other
losses  and liabilities as set forth on the Schedule of Exceptions.  The Company
is  not  in default with respect to its obligations under any material insurance
policy  maintained  by  it.  The Schedule of Exceptions sets forth a list of all
insurance  coverage carried by the Company, the carrier and the terms and amount
of  coverage,  the  period which such policy has been in effect and will expire,
and  whether it is a "claims made" or an "occurrence" policy.  All such policies
and  other  instruments  are in full force and effect and all premiums due on or
before the date hereof with respect thereto have been paid.  The Company has not
failed  to  give any notice or present any claim under any such insurance policy
in  due and timely fashion or as required by any of such insurance policies, and
the  Company  has  not  otherwise,  through any act, omission or non-disclosure,
jeopardized  or  impaired  full  recovery  of any claim under such policies, and
there  are  no  claims  by  the  Company under any of such policies to which any
insurance  company  is  denying  liability  or  defending under a reservation of
rights or similar clause.  The Company has not received notice of any pending or
threatened  termination  of  any  such policies or any premium increases for the
current  policy period with respect to any of such policies and the consummation
of  the  transactions  contemplated  by  this Agreement, the Notes and the Other
Agreements  will  not  result  in  any  such  termination  or  premium increase.

      3.27  Compliance with Law.  The Company is not in violation of any term of
its  Certificate  or  Bylaws  or  of  the provisions of any mortgage, indenture,
contract,  agreement,  instrument,  judgment,  decree,  order,  statute, rule or
regulation  to  which  it  is  subject  and  a violation of which could create a
material  adverse effect.  The Company has all franchises, permits, licenses and
approvals,  necessary  to  conduct  its  business  as  presently conducted.  The
Company  has no knowledge of or reason to expect any change to any law, statute,
rule  or  regulation  which could adversely affect the ability of the Company to
conduct  its  business  as  presently  conducted or as proposed to be conducted.

     3.28  No Insolvency.  No insolvency proceeding of any character, including
without  limitation  bankruptcy,  receivership,  reorganization,  composition or
arrangement  with  creditors, voluntary or involuntary, affecting the Company or
any  of  its assets or properties is pending or threatened.  The Company has not
taken  any  action  in contemplation of, or that would constitute the basis for,
the  institution  of  any  such  insolvency  proceedings.

     3.29  Substantial  Customers  and Suppliers.  The Schedule of Exceptions
lists  the  ten  (10) largest customers of the Company, on the basis of revenues
for  goods  sold  for  the  most recently-completed fiscal year and the ten (10)
largest  suppliers  of  the Company, on the basis of cost of goods purchased for
the most recently-completed fiscal year.  Except as disclosed in the Schedule of
Exceptions,  no  such  customer or supplier has ceased or materially reduced its
purchases  from, sales to or provision of services to the Company since the date
of  the  Audited  Financial  Statements,  or  to  the  knowledge of Company, has
threatened to cease or materially reduce such purchases, use, sales or provision
of  services  after  the  date hereof.  To the knowledge of the Company, no such
customer  or  supplier  is  threatened  with  bankruptcy  or  insolvency.

                                    SECTION 4

                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

     Each  Purchaser hereby severally and not jointly represents and warrants to
the  Corporation  with  respect  to  the  purchase  of  the  Notes  as  follows:

     4.1  Information Received.  Such Purchaser has received and reviewed, in
addition  to the Financial Statements, such information as it deemed appropriate
in  connection  with  an investment in the Notes.  Such Purchaser also has had a
full  opportunity  to ask questions and receive answers concerning the terms and
conditions  of  the  offering of the Notes, has had full access to the Company's
officers  and has received such other information concerning the Company as such
Purchaser  has  requested.  The foregoing, however, does not limit or modify the
representations and warranties of the Corporation set forth in Section 3 of this
Agreement  or  the  right  of  each  Purchaser  to  rely  thereon.

     4.2 Accredited Investor. Such Purchaser is an "accredited investor" as such
term  is  defined  in  Rule  501(a)  of  Regulation  D  of  the  Securities Act.

     4.3 Experience. Such Purchaser has substantial experience in evaluating and
investing  in  private placement transactions of securities in companies similar
to  the  Corporation  so that such Purchaser is capable of evaluating the merits
and  risks  of its investment in the Corporation and has the capacity to protect
its  own  interests.

      4.4 Economic Risk. Such Purchaser is able to bear the economic risk of its
investment  in the Notes for an indefinite period of time, including the risk of
a  complete  loss  of  such  Purchaser's  investment  in  such securities.  Such
Purchaser  acknowledges  that  the  Notes  have  not  been  registered under the
Securities  Act  or  registered or qualified under any state securities law and,
therefore,  cannot  be  sold  or  otherwise  transferred  or  disposed of unless
subsequently  registered  under  the  Securities Act and registered or qualified
under  applicable  state  securities  laws  or  unless  an  exemption  from such
registration  or  qualification  is available.  The foregoing does not, however,
limit or modify the representations, warranties, or covenants of the Corporation
set  forth  in this Agreement or any of the Other Agreements or the right to the
Purchasers  to  rely  thereon.

     4.5  Investment. Such Purchaser is  acquiring the Notes, and the shares of
the Series II Preferred and Conversion Stock for investment for such Purchaser's
own  account, not as a nominee or agent, and not with the view to, or for resale
in connection with, any distribution thereof in violation of the Securities Act.
Such  Purchaser  understands  that  the Notes to be purchased have not been, and
will  not  be,  registered  under  the  Securities  Act  by reason of a specific
exemption  from  the  registration  provisions  of  the  Securities  Act,  the
availability  of  which  depends  upon, among other things, the accuracy of such
Purchaser's  representations  as  expressed  herein.

     4.6  Execution, Delivery and Performance.  Such  Purchaser has full right,
power  and  authority  to  execute  and  deliver  this  Agreement  and the Other
Agreements  and  to  perform  its  obligations  hereunder and thereunder.  At or
before  the Closing, such Purchaser shall execute and deliver to the Company the
Other  Agreements,  and  the  Purchaser  acknowledges  and agrees that the Notes
purchased  will  be subject to the terms and provisions of the Other Agreements,
the  Series  II  Designation and the Corporation's Certificate and Bylaws.  This
Agreement is, and each of the Other Agreements when so executed and delivered by
the  Purchaser will constitute, a valid and binding obligation of the Purchaser,
enforceable  against  the  Purchaser  in accordance with such agreement's terms,
except  as  the  indemnification provisions of the Registration Rights Agreement
may  be  limited  by principles of public policy, and subject to laws of general
application  relating  to  bankruptcy,  insolvency and the relief of debtors and
rules  of  law  governing  specific  performance,  injunctive  relief  or  other
equitable  remedies.  No  consent,  approval,  authorization,  order,  filing,
registration  or  qualification  of or with any court, governmental authority or
third  person is required to be obtained by the Purchaser in connection with the
execution  and  delivery  of  this  Agreement  or  the  Other  Agreements or the
performance  of  the  Purchaser's  obligations  hereunder  or  thereunder.

    4.7  Brokers or Finders. Such Purchaser has not incurred and will not incur,
directly  or  indirectly, as a result of any action taken by such Purchaser, any
liability  for  brokerage or finders' fees or agents' commissions or any similar
charges in connection with this Agreement (other than the agreement dated May 2,
2000  between  U.S.  Bancorp  Libra  and  Marty  Klein).

                                    SECTION 5

                       CONDITIONS TO CLOSING OF PURCHASERS

     The  Purchasers'  obligations  to  purchase  the  Notes  at the Closing are
subject  to  the  fulfillment  on  or prior to the Closing Date of the following
conditions:

     5.1  Representations  and  Warranties  Correct.  The representations and
warranties made by the Corporation in Section 3 hereof shall be true and correct
as  of  the Closing Date with the same force and effect as if made on such date.

     5.2 Covenants. All  covenants and agreements contained in this Agreement to
be  performed  or  complied  with by the Company on or prior to the Closing Date
shall  have  been  performed  or  complied  with.

     5.3  Governmental Authorizations, etc. All material governmental
authorizations,  consents  or  approvals  required  to  be  obtained,  and  all
governmental  filings to be made, including state securities or "Blue Sky" laws,
by the Company in connection with the issuance and sale of the Notes pursuant to
this  Agreement  (other than any such filing as shall be permitted by applicable
law  to  be  made post-Closing) shall have been obtained or made and shall be in
full  force  and  effect.

     5.4  Series II Designation. The  Corporation  shall  have  filed  with the
Secretary  of  State  of  the State of Florida the Series II Designation and the
same  shall  be  effective.

     5.5  Good Standing Certificates.  The Company  shall have delivered to the
Purchasers  certificates  dated  as of the most recent practicable date prior to
the  Closing Date issued by the Secretaries of State of the States of Florida to
the effect that the Corporation and each of its Subsidiaries is legally existing
and in good standing in such State and each other state in which the Corporation
or  its  Subsidiaries  is  qualified or required to be qualified to do business.

     5.6  Secretary's Certificate.  The Corporation shall have delivered to the
Purchasers  a  certificate executed by the Secretary of the Corporation dated as
of  the  Closing  Date,  certifying as to the following matters: (a) resolutions
adopted  by the Board of Directors of the Corporation approving the transactions
contemplated  by  this  Agreement,  the  Notes and the Other Agreements, (b) the
Series  II  Designation  and  (c)  the  Bylaws.

     5.7  Opinion of Counsel. The Company shall have delivered to the Purchasers
an  opinion  of Aronauer, Goldfarb, Sills & Re, LLP, counsel to the Corporation,
in  form  reasonable  satisfactory  to  the  Purchasers and their counsel to the
substantive  effect  as  set  forth  in  Exhibit  E  hereto.

     5.8  Other Agreements.  Each of (a)  a  Registration  Rights  Agreement
substantially  in  the  form of Exhibit F (the "Registration Rights Agreement"),
(b)  a  Securityholders  Agreement  substantially  in the form of Exhibit G (the
"Securityholders Agreement"), and (c) an Investor Rights Agreement substantially
in  the  form  of  Exhibit  H  (the "Investor Rights Agreement") shall have been
executed  and  delivered by the Corporation and the Purchasers party thereto and
all  other  parties  thereto, and each such agreement shall be in full force and
effect  as  of  the  Closing.

     5.9  Board of Directors.  The directors and stockholders of the Corporation
shall  have  taken all such actions as shall be necessary to cause an individual
designated  by  the  Purchasers  to  be  appointed  to the Board of Directors in
accordance with the terms of the Securityholders Agreement immediately after the
Closing.

     5.10  Compliance Certificate.  The Corporation  shall have delivered to the
Purchasers  a certificate of the Corporation executed by the President or a Vice
President  of  the Corporation, dated the Closing Date, and certifying as to the
fulfillment  of  the  conditions  specified in Sections 5.1, 5.2, 5.3 and 5.9 of
this  Agreement.

     5.11 Due Diligence. The Purchasers and their respective advisers, including
legal  counsel,  shall  have completed their due diligence review of the Company
and  its  business  with  results  satisfactory to the Purchasers, in their sole
discretion, and, in the Purchasers' sole opinion, no Material Adverse Effect has
occurred  with  regard  to  the  Company  prior  to  such  Closing.

     5.12  Third Party Consents.  All necessary third party  consents  to the
transactions  described  herein  shall  have been received in form and substance
satisfactory  to  the  Purchasers.

                                    SECTION 6

                        CONDITIONS TO CLOSING OF COMPANY

     The Corporation's obligation to sell and issue the Notes at the Closing is,
at  the  option of the Corporation, subject to the fulfillment as of the Closing
Date  of  the  following  conditions:

     6.1  Representations.  The  representations  and  warranties made by the
Purchasers  in Section 4 hereof shall be true and correct as of the Closing Date
with  the  same  force  and  effect  as  if  made  on  that  date.
6.2     Covenants.  All covenants and agreements  contained in this Agreement to
be  performed or complied with by the Purchasers on or prior to the Closing Date
shall  have  been  performed  or  complied  with.

     6.3  Governmental Authorizations, etc.  All  material  governmental
                                          -
authorizations,  consents  or  approvals  required  to  be  obtained,  and  all
governmental  filings to be made, by the Company in connection with the issuance
and  sale of the Notes pursuant to this Agreement (other than any such filing as
shall  be  permitted  by applicable law to be made post-Closing) shall have been
obtained  or  made  and  shall  be  in  full  force  and  effect.

     6.4  Other Agreements.  Each of (a) the Registration Rights Agreement, (b)
the Securityholders Agreement, and (c) the Investor Rights Agreements shall have
been  executed  and delivered by the Purchasers and each such agreement shall be
in  full  force  and  effect  as  of  the  Closing.

                                    SECTION 7

  RESTRICTIONS ON TRANSFERABILITY OF SECURITIES; COMPLIANCE WITH SECURITIES ACT

     7.1  Restrictions on Transferability.  The Notes are, and  the shares of
the  Series II Preferred and Conversion Stock and all other securities issued in
respect of the Notes, Series II Preferred or the Conversion Stock upon any stock
split  or  stock  dividend,  or in any recapitalization, reorganization, merger,
consolidation  or  similar  event  not  registered under the Securities Act (the
Notes,  Shares,  the  Conversion  Stock  and  such  other  securities,  if  any,
collectively,  the  "Restricted  Securities")  when  issued will be, "restricted
securities" as defined by Rule 144 under the Securities Act ("Rule 144") and may
not be Transferred (as hereinafter defined) except upon the conditions specified
in  this Article 7 or Rule 144, which are intended to ensure compliance with the
provisions  of  the  Securities  Act.  Each  Purchaser  shall cause any proposed
Transferee  (as  hereinafter  defined) of the Restricted Securities held by such
Purchaser  to  agree  to take and hold such securities subject to the provisions
and  upon the conditions specified in this Article 7 and the Other Agreements as
applicable.

     As used in this Article 7, the term "Transfer" means and includes any sale,
exchange,  assignment, pledge or other transfer or encumbrance of the Restricted
Securities,  and  the  term  "Transferee"  means  any  Person  who  acquires any
Restricted  Securities  in  a  Transfer not registered under the Securities Act.

     7.2  Restrictive  Legends.  Each  certificate  representing  Restricted
Securities shall be stamped or otherwise imprinted with legends in the following
form  (in  addition  to  any  legend  required under applicable state securities
laws).

     (a)  "THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE NOT BEEN
REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933 (THE "ACT") AND ARE RESTRICTED
SECURITIES.  THESE  SECURITIES  HAVE  BEEN ACQUIRED FOR HOLDER'S OWN ACCOUNT FOR
INVESTMENT  AND  NOT  WITH  A  VIEW  TO,  OR  IN  CONNECTION  WITH,  THE SALE OR
DISTRIBUTION  THEREOF.  NO  SUCH  SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN
EFFECTIVE  REGISTRATION  STATEMENT  RELATED  THERETO  OR  EXEMPTION  FROM  SUCH
REGISTRATION  UNDER  THE  ACT  ."

     (b)  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS  ON  TRANSFER THAT ARE CONTAINED IN A REGISTRATION RIGHTS AGREEMENT
AND  A  SECURITYHOLDERS  AGREEMENT, COPIES OF WHICH ARE ON FILE AT THE PRINCIPAL
OFFICE  OF  THE  CORPORATION."

     Each Purchaser consents to the Corporation making a notation on its records
and  giving  instructions  to  any paying agent or registrar of the Notes or any
transfer  agent  of  the Series II Preferred or the Conversion Stock in order to
implement  the  restrictions  on  Transfer  established  in  this  Article  7.

     7.3  Notice  of  Proposed  Transfers.  The  holder  of  each certificate
representing Restricted Securities by acceptance thereof agrees to comply in all
respects  with  the  provisions  of this Section 7.3.  Prior to or in connection
with  any  proposed  Transfer  of  any Restricted Securities, unless there is in
effect  a  registration statement under the Securities Act covering the proposed
Transfer,  the  transferor  shall  deliver,  if  requested by the Corporation, a
written  opinion  of  legal counsel, addressed to the Corporation, to the effect
that  the proposed Transfer of the Restricted Securities may be effected without
registration  under  the  Securities  Act.  Each  certificate  evidencing  the
Restricted  Securities  Transferred as above provided shall bear, except if such
Transfer  is  made  pursuant to Rule 144, the appropriate restrictive legend set
forth  in  Section  7.2  above, except that such certificate shall not bear such
restrictive  legend if in the opinion of counsel for such holder and the Company
such  legend is not required in order to establish compliance with any provision
of  the  Securities  Act  or  applicable  state  securities  laws.

                                    SECTION 8

                                  MISCELLANEOUS

     8.1  Governing Law. This Agreement shall be governed by and interpreted
under  the laws of the State of New York as applied to agreements among New York
residents,  made  and  to  be  performed  entirely within the State of New York.

     8.2 Survival.  The representations and warranties made herein shall survive
any  investigation  made  by  the Purchasers and the closing of the transactions
contemplated  hereby.

     8.3 Successors and Assigns.  Except as otherwise expressly provided herein,
all  covenants and agreements contained in this Agreement by or on behalf of any
of  the  parties  hereto  will  bind  and inure to the benefit of the respective
successors  and assigns of such parties (including any subsequent holders of the
Notes,  the Series II Preferred or the Conversion Stock) whether so expressed or
not.  In  addition,  if an express assignment has been made (except as otherwise
expressly  provided  herein),  the provisions of this Agreement that are for any
Purchaser's  benefit  as  the  purchaser  or  holder  of Notes (or the Series II
Preferred  or  Conversion  Stock) are also for the benefit of and enforceable by
any  subsequent  holder  of  Notes (or Series II Preferred or Conversion Stock).
The  Company  may  not assign any of its obligations hereunder without the prior
written consent of the Purchasers.  None of the Purchasers may assign any of its
obligations  hereunder prior to the Closing without the prior written consent of
the  Corporation.  After the Closing, the Purchasers may assign their rights and
obligations  hereunder  (subject  to Section 7 hereof) without the prior written
consent  of  the  Corporation.

     8.4  Entire Agreement; Amendment.  This Agreement and the other documents
delivered  pursuant  hereto  at  the  Closing  constitute  the  full  and entire
understanding  and  agreement  between  the  parties with regard to the subjects
hereof  and thereof, and no party shall be liable or bound to any other party in
any  manner  by  any  warranties,  representations  or  covenants  except  as
specifically  set forth herein or therein.  Except as expressly provided herein,
neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated  other  than by a written instrument signed by the party against whom
enforcement  of  any such amendment, waiver, discharge or termination is sought;
provided,  however,  that holders of a majority of the Notes (including for this
purpose  the  Series  II  Preferred  and  the  Conversion  Stock)  may, with the
Corporation's  prior  written  consent, waive, modify or amend, on behalf of all
such  holders,  any  provision  hereof  other  than  the conditions set forth in
Section  5.

     8.5  Notices, etc.  All notices and other  communications  required  or
permitted hereunder shall be in writing (or in the form of a telecopy (confirmed
in writing) to be given only during the recipient's normal business hours unless
arrangements have otherwise been made to receive such notice by telecopy outside
of  normal  business hours) and shall be mailed by registered or certified mail,
postage  prepaid,  or  otherwise  delivered  by hand, messenger, or telecopy (as
provided  above)  addressed  (a)  if  to  a  Purchaser,  at the address for such
Purchaser  set  forth  beneath  its  signature  or at such other address as such
Purchaser  shall  have  furnished to the Corporation in writing or (b) if to any
other  holder of Notes, Series II Preferred or Conversion Stock, at such address
as  such holder shall have furnished the Corporation in writing or (c) if to the
Corporation,  to  its principal executive offices and addressed to the attention
of  the  Corporate  Secretary, or at such other address as the Corporation shall
have  furnished  in  writing  to  the  Purchasers.

     Each  such  notice  or  other  communication shall for all purposes of this
Agreement  be  treated  as  effective  or  having  been  given when delivered if
delivered  personally,  or,  if  sent  by mail, at the earlier of its receipt or
seventy-two  (72)  hours  after  the  same  has  been  deposited  in a regularly
maintained  receptacle  for the deposit of the United States mail, addressed and
mailed  as  aforesaid,  or, if by telecopy pursuant to the above, when received.

     8.6  Delays or Omissions.  Except as expressly provided herein, no delay
or omission to exercise any right, power or remedy accruing to any holder of any
Notes,  Series  II  Preferred or Conversion Stock, upon any breach or default of
the  Corporation  under  this  Agreement,  shall impair any such right, power or
remedy  of  such  holder  nor  shall  it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of or in any similar breach or
default  thereafter  occurring;  nor  shall  any  waiver of any single breach or
default  be  deemed  a  waiver  of  any  other  breach or default theretofore or
thereafter  occurring.  Any  waiver,  permit, consent or approval of any kind or
character  on  the  part  of  any  holder  of  any  breach or default under this
Agreement,  or  any  waiver  on  the  part  of  any  holder of any provisions or
conditions  of this Agreement, must be in writing and shall be effective only to
the  extent  specifically set forth in such writing.  All remedies, either under
this  Agreement  or  by  law  or  otherwise  afforded  to  any  holder, shall be
cumulative  and  not  alternative.

     8.7 Stamp Taxes. The Corporation shall pay, or reimburse the Purchasers and
hold  them  harmless  against  liability for the payment of, all stamp and other
similar such taxes which may be payable in respect to the execution and delivery
of  this  Agreement  or  the issuance, delivery and acquisition of any Notes (or
Series  II Preferred or Conversion Stock issued in the name of the holder of the
converted  Notes  or  Series  II  Preferred,  respectively)  hereunder.

     8.8  Expenses;  Attorneys' Fees.  Regardless of whether the Closing occurs,
the  Company shall pay all of it's own expenses and the Company shall pay all of
the Purchaser's out of pocket expenses (including without limitation, reasonable
attorneys'  fees  and  expenses), in each case, incurred in connection with this
Agreement,  the  Notes,  the  Other Agreements and the transactions contemplated
hereby  and  thereby.  If any action at law or in equity is necessary to enforce
or interpret the terms of this Agreement, the prevailing party shall be entitled
to  reasonable attorneys' fees, costs and necessary disbursements in addition to
any  other  relief  to  which  such  party  may  be  entitled.

     8.9  Remedies.  The holders of the Notes and Series II Preferred will have
all of the rights and remedies set forth in this Agreement, the Other Agreements
and the Series II Designation, all of the rights and remedies which such holders
have  been  granted at any time under any other agreement or contract and all of
the  rights  and  remedies  which such holders have under any law. Any Purchaser
having  any rights under any provision of this Agreement, the Notes or the Other
Agreements  will  be  entitled  to  enforce such rights specifically, to recover
damages by reason of any breach of any provision of this Agreement, the Notes or
the  Other  Agreements  and  to  exercise  all  other  rights  granted  by  law.

     8.10  Severability.  In the event that any provision  of  this Agreement
becomes  or  is  declared  by  a  court of competent jurisdiction to be illegal,
invalid,  unenforceable or void, this Agreement shall continue in full force and
effect  without  said provision.  In such event, the parties shall negotiate, in
good  faith,  a  legal,  valid  and  enforceable substitute provision which most
nearly  effects  the  intent  of  the  parties  in entering into this Agreement.

     8.11  Titles and Subtitles. The titles and subtitles used in this Agreement
are  used  for  convenience  only  and  are  not  considered  in  construing  or
interpreting  this  Agreement.

     8.12   Facsimile Signatures.  Any signature page delivered  by  a telecopy
machine  shall be binding to the same extent as an original signature page, with
regard  to  any  agreement subject to the terms hereof or any amendment thereto.
Any party who delivers such a signature page agrees to later deliver an original
counterpart  to  any  party  which  requests  it.

     8.13  Counterparts.  This Agreement may be executed  in  any  number  of
counterparts,  each  of  which shall be enforceable against the parties actually
executing  such  counterparts,  and  all  of which together shall constitute one
instrument.

<PAGE>

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

"CORPORATION":  MERIDIAN  USA  HOLDINGS,  INC.
                a  Florida  corporation

                By:  /s/  Mark  Streisfeld
                ---------------------
                Name:   Mark  Streisfeld
                Title:  President

Address:  3350  N.W.  2nd  Avenue
          Boca  Raton,  FL  33431
          Facsimile: 561-417-6888

"PURCHASERS":  U.S.  BANCORP  INVESTMENTS,  INC.

               By:  /s/Jess M. Ravich
                    -------------------
               Name:  Jess M. Ravich
               Title: Chairman

Purchase  Price:  $8,000,000

Aggregate  Principal  Amount  of  Notes:  $8,000,000

     Address:  11766  Wilshire  Boulevard
               Suite  870
               Los  Angeles,  CA  90025
               Attn:  General  Counsel
               Fax:  (310)  312-5640

                                    EXHIBITS
                                    --------

A     -     Form  of  Note
B     -     Schedule  of  Exceptions
C     -     Series  II  Designation
D     -     Financial  Statements
E     -     Opinion  of  Aronauer,  Goldfarb,  Sills  &  Re,  LLP
F     -     Registration  Rights  Agreement
G     -     Shareholders  Agreement
H          Investor  Rights  Agreement

                                    SCHEDULES

SCHEDULE  OF  EXCEPTIONS

SCHEDULE  B:     FINANCIAL  INFORMATIONREGISTRATION RIGHTS AGREEMENT

                                 by and between

                           MERIDIAN USA HOLDINGS, INC.

                                       and

                           THE INVESTOR PARTIES HERETO

                            Dated as of June 16, 2000

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

REGISTRATION  RIGHTS AGREEMENT, dated as of June 16, 2000 (this "Agreement"), by
and  among  MERIDIAN  USA HOLDINGS, INC., a Florida corporation (the "Company"),
and U.S. BANCORP INVESTMENTS, INC. (each of the foregoing, individually with its
Affiliates,  an  "Investor,"  and,  collectively,  the  "Investors").

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

     WHEREAS,  the  Company  and  the  Investors  have entered into that certain
Securities  Purchase  Agreement dated June     , 2000 (the "Purchase Agreement")
providing  for,  among other things, the sale by the Company and the purchase by
the Investors of $8,000,000 aggregate principal amount of the Company's Series A
Convertible  Notes  due  2010  (the  "Convertible  Notes");

     WHEREAS, in connection with the  transactions contemplated  by the Purchase
Agreement,  the  Company  agreed  to  issue  a  warrant (the "Libra Warrant") to
purchase  698,947  shares  of  the  Company's  common stock, par value $.001 per
share,  to  U.S.  Bancorp  Investments,  Inc.;  and

     WHEREAS, in connection with the Company and the Investors entering into the
Purchase  Agreement,  the  Company has agreed to provide the registration rights
set  forth  in  this  Agreement.

     ACCORDINGLY,  the  parties  hereto  agree  as  follows:

     1.     Certain  Definitions.  (a)  As used in this Agreement, the following
terms  shall  have  the  meanings  assigned  to  them  below:

     1.1     "Affiliate" shall mean with respect to any Person, any other Person
directly  or indirectly controlling or controlled by or under direct or indirect
common  control  with  such  specified  Person.

     1.2  "Commission" shall mean the United  States  Securities  and Exchange
Commission.

   1.3 "Common Stock" shall mean the common stock, $.001 par value per share of
the  Company.

    1.4  "Common  Stock  Equivalents"  means  and  includes  all  shares of the
Company's  Common Stock issued and outstanding at the relevant time plus (a) all
shares  of  Common  Stock  that  may  be  issued  upon  exercise of any options,
warrants,  including  without  limitation the Libra Warrant, and other rights of
any  kind that are then exercisable, and (b) all shares of Common Stock that may
be  issued  upon  conversion  or  exchange  of  (i)  any convertible securities,
including without limitation the Series I Preferred, Series II Preferred and all
other  preferred  stock and debt securities then outstanding, which are by their
terms  then  convertible into or exchangeable for Common Stock, or (ii) any such
convertible  securities  issuable  upon  exercise  of options, warrants or other
rights,  in  each  case  that  are  then  exercisable.

    1.5  "Exchange Act" shall mean the United States Securities Exchange Act of
1934,  as  amended.

     1.6  "Holder" means the Investor and any assignees or transferees acquiring
Convertible  Notes,  shares  of  Series  II Preferred or Registrable Securities.

     1.7  "NASD" shall have the meaning ascribed to such term in Section 2.3(g)
hereof.

    1.8  "Person" shall mean any natural person,  corporation,  partnership,
limited  liability  company,  firm, association, trust, government, governmental
agency  or  other  entity,  whether  acting in an individual, fiduciary or other
capacity.

    1.9 "Registrable Securities" shall mean (i) any shares of Common Stock held
as  of  the date hereof by any Investor or hereafter acquired by any Investor or
Holder;  (ii) any shares of Common Stock issued or issuable upon the conversion,
exercise  or  exchange of any other Common Stock Equivalents held as of the date
hereof by any Investor or hereafter acquired by any Investor or Holder; or (iii)
any  shares  issued  or  issuable, directly or indirectly, upon any subdivision,
combination,  reclassification or redesignation of such shares or share dividend
in  respect of the Common Stock referenced in clauses (i) and (ii) above.  As to
any  particular  Registrable  Securities,  such  securities  shall  cease  to be
Registrable  Securities  when  (i)  a registration statement with respect to the
sale  of such securities shall have been declared effective under the applicable
Securities  Laws  and  such securities shall have been disposed of in accordance
with  such  registration  statement or (ii) such securities shall have been sold
(other  than  in  a  privately  negotiated  sale)  pursuant  to Rule 144 (or any
successor  or  comparable  provision)  under  the  U.S.  Securities  Act  and in
compliance  with  the  requirements  of  Rule  144.

     (a)     Capitalized  terms used but not otherwise defined herein shall have
the  meaning  assigned  to  such  terms  in  the  Purchase  Agreement.

     2.     Registration  Rights.

     2.1     Shelf  Registration.

     (a)     The Company shall use its best efforts to prepare and file with the
Commission  pursuant  to  Rule 415 under the Securities Act a shelf registration
statement  on  Form  S-1, S-3 or other appropriate form (the "Shelf Registration
Statement") covering the resale of the Registrable Securities by the Holders and
shall  cause  the  Shelf  Registration  Statement  to become effective under the
Securities  Act  no  later  than December 31, 2000.  Such registration statement
shall  comply  in  all material respects with the requirements of the applicable
form and include all financial statements required by the Commission to be filed
therewith.  The  Company  shall  use best efforts to keep the Shelf Registration
Statement  continuously  effective, subject to Section 2.1(d) hereof, until such
time as all of the Registrable Securities have been resold pursuant to the Shelf
Registration  Statement  or  are  no  longer  Registrable  Securities.  (the
"Effectiveness  Period").  Prior  to  filing the Shelf Registration Statement or
any amendment or supplement thereto, the Company shall provide a copy thereof to
the  Holders  and  their  counsel  and  afford them a reasonable time to comment
thereon  and  the Company shall not file any registration statement or amendment
thereto  or  any  prospectus  or  supplement  thereto to which any Holder or the
underwriters,  if  any,  shall  reasonably  object  in  writing.

     (b)  Notwithstanding the foregoing, the  Company shall have the ability to
suspend  the  filing,  effectiveness or use of such Shelf Registration Statement
for  up  to  one 30-consecutive-day period during any consecutive 365-day period
if:

     (i)     an  event  or  circumstance occurs and is continuing as a result of
which  the  registration  statement,  any  related  prospectus  or  any document
incorporated  therein  by reference, as then amended or supplemented or proposed
to  be  filed,  would,  in the good faith determination of the Board, contain an
untrue  statement  of a material fact or omit to state a material fact necessary
in  order  to  make  the statements therein, in light of the circumstances under
which  they  were  made,  not  misleading;  and

     (ii) (i) the Board determines in good faith that the disclosure of such an
event  at  such  time  would  have  a  material  adverse effect on the business,
operations  or prospects of the Company or (ii) the disclosure otherwise relates
to  a  material  business transaction which has not yet been publicly disclosed.

     The  Company shall provide written notice of any such determination to each
Holder  at  the  address  set  forth  on the signature page hereto or such other
address as may hereafter be designated in writing by such Holder to the Company.

     2.2     Piggyback  Rights.

     (a)     If  the  Company proposes to file a registration statement with the
Commission  respecting  an  offering  of  any Common Stock (or other securities)
purchasable upon exercise of the Series II Preferred (other than (x) an offering
that  could  be  registered  solely  on  Form  S-4 or S-8, or any successor form
thereto,  and  (y)  securities  offered  or issued pursuant to any employment or
benefit  plan  or  arrangement  to  any  employee, director, partner, trustee or
consultant  or  advisor  of or to the Company or any subsidiary of the Company),
the  Company  shall  give  prompt written notice to all the Holders of Series II
Preferred  and  Registrable  Securities  at  least  30 days prior to the initial
filing  of  the  registration  statement  relating  to  such  offering  (the
"Registration  Statement").  Each  such  Holder  shall have the right, within 20
days  after  delivery  of  such  notice,  to request in writing that the Company
include  all  or  a  portion  of  such  of  the  Registrable  Securities in such
Registration  Statement  ("Piggyback  Registration  Rights").  The Company shall
include  in  the public offering all of the Registrable Securities that a Holder
has requested be included, unless the underwriter for the public offering or the
underwriter  managing  the  public  offering  (in  either  case,  the  "managing
underwriter")  delivers a notice (a "Cutback Notice") pursuant to Section 2.2(b)
or  2.2(c)  hereof.  The  managing  underwriter  may deliver one or more Cutback
Notices at any time prior to the execution of the underwriting agreement for the
public  offering.

    (b) If a proposed public offering includes both securities to be offered for
the  account  of  the  Company  ("Company  Shares")  and  shares  to  be sold by
shareholders,  the  provisions of this Section 2.2(b) shall be applicable if the
managing underwriter delivers a Cutback Notice stating that, in its opinion, the
number  of  shares  of  Common  Stock  that selling shareholders propose to sell
therein,  whether  or  not  such  selling shareholders have the right to include
shares  therein (the "Other Shares"), plus the number of  Registrable Securities
that  the  Holders  have  requested to be sold therein, plus the Company Shares,
exceeds  the  maximum  number of shares specified by the managing underwriter in
such  Cutback  Notice  that  may be distributed without materially and adversely
affecting the price, timing or distribution of the Company Shares.  Such maximum
number of shares that may be so sold, excluding the Company Shares, are referred
to  as  the  "Includible  Shares."

     If the managing underwriter delivers such Cutback Notice, the Company shall
be entitled to include all of the Company Shares in the public offering and each
requesting  Holder  (or  beneficiary)  exercising  its  registration  rights (or
privileges)  under  this  Agreement,  shall be entitled to include in the public
offering  up to its pro rata portion of the Includible Shares and in priority to
the  inclusion  of  any Other Shares that are proposed to be sold in such public
offering.  No  shareholder  that  proposes  to  sell Other Shares in such public
offering  may  sell  any  such  shares therein unless all Registrable Securities
requested  by  the  Holders  to  be  sold  therein  are  so  included.

     (c)     If a proposed public offering is entirely a secondary offering, the
provisions  of  this  Section  2.2(c)  shall  be  applicable  if  the  managing
underwriter  delivers  a  Cutback  Notice  stating  that,  in  its  opinion, the
aggregate  number of Registrable Securities and Other Shares proposed to be sold
therein exceeds the maximum number of shares (the "Includible Secondary Shares")
specified  by  the  managing  underwriter  in  such  Cutback  Notice that may be
distributed  without  materially  and  adversely  affecting the price, timing or
distribution  of  the  Common  Stock  being  distributed.

     If  the  managing underwriter delivers such Cutback Notice, each requesting
Holder shall be entitled to include up to its pro rata portion of the Includible
Secondary  Shares  and in priority to the inclusion of any Other Shares that are
proposed  to  be  sold  in  such  public  offering.
No  shareholder  that  proposes  to  sell  Other  Shares  in the proposed public
offering  may  sell  any  such  shares therein unless all Registrable Securities
requested  by  the  Holders  to  be  sold  therein  are  so  included.

     (d)     The  underwriting  agreement for such public offering shall provide
that  each  requesting  Holder  shall  have  the  right  to sell its Registrable
Securities  to  the  underwriters  and  that the underwriters shall purchase the
Registrable  Securities  at  the  price  paid by the underwriters for the Common
Stock  sold  by  the  Company  and/or  selling shareholders, as the case may be.

     2.3     Registration  Procedures.

     (a)     In  connection  with a registration pursuant to Section 2.1 or 2.2,
the  Company  agrees  to:

     (i)     make  available  for inspection by a representative of the Holders,
the managing underwriter participating in any disposition pursuant to such Shelf
Registration Statement and one firm of attorneys designated by the Holders (upon
execution of customary confidentiality agreements reasonably satisfactory to the
Company  and  its  counsel),  at  reasonable  times  and in a reasonable manner,
financial  and  other  records, documents and properties of the Company that are
pertinent  to  the  conduct  of  due  diligence  customary  for  an underwritten
offering,  and  cause  the  officers,  directors and employees of the Company to
supply  all  information  reasonably  requested  by  any  such  representative,
underwriter  or  attorney  in  connection with a Shelf Registration Statement as
shall  be necessary to enable such persons to conduct a reasonable investigation
within  the meaning of Section 11 of the Securities Act of 1933, as amended from
time  to  time;

     (ii)  use its best efforts to cause all Registrable Securities sold under a
Shelf  Registration  Statement  to  be  listed on any securities exchange or any
automated quotation system on which similar securities issued by the Company are
then  listed;

     (iii)  provide, without charge, to  Holders  that  are selling Registrable
Securities  pursuant to such Shelf Registration Statement a reasonable number of
copies of such registration statement, each amendment and supplement thereto (in
each  case  including  all  exhibits)  and the prospectus included in such Shelf
Registration  Statement  (including  each  Preliminary  Prospectus)  and  other
documents  such  Holders  may  reasonably  request;

    (iv)  use its best efforts to register or qualify the Registrable Securities
covered by such registration statement under such other securities or "blue sky"
laws  of  such  jurisdictions a Holder of Registrable Securities or any managing
underwriter, if any, shall reasonably request, and do any and all other acts and
things  which may be reasonably necessary or advisable to enable such sellers or
underwriter, if any, to consummate the disposition of the Registrable Securities
in  such jurisdictions, except that in no event shall the Company be required to
qualify  to  do  business  as a foreign corporation in any jurisdiction where it
would  not, but for the requirements of this paragraph (d), be required to be so
qualified,  to subject itself to taxation in any such jurisdiction or to consent
to  general  service  of  process  in  any  such  jurisdiction;

    (v)  cause  to  be provided to  the  Holders  that  are selling Registrable
Securities  pursuant  to  such  Shelf Registration Statement and to the managing
underwriter  if any disposition pursuant to such Shelf Registration Statement is
an  underwritten  offering,  upon  the effectiveness of such Shelf  Registration
Statement, a customary "10b-5" opinion of independent counsel (an "Opinion") and
a  customary  "cold comfort" letter of independent auditors (a "Comfort Letter")
in  each  case  addressed  to  such  Holders  and  managing underwriter, if any;

     (vi)  cause to be provided  to  the  Holders that are selling Registrable
Securities  pursuant  to  such  Shelf Registration Statement and to the managing
underwriter  if any disposition pursuant to such Shelf Registration Statement is
an  underwritten  offering,  an  Opinion and Comfort Letter with respect to each
document, including any amendments thereto, that is incorporated by reference in
such  Shelf  Registration  Statement; in each case addressed to such Holders and
managing  underwriter,  if  any;

    (vii)  notify in writing the Holders that are selling Registrable Securities
pursuant  to  such  Shelf Registration Statement and any managing underwriter if
any disposition pursuant to such Shelf Registration Statement is an underwritten
offering,  (A)  when  the  Shelf Registration Statement has become effective and
when  any post-effective amendment thereto has been filed and becomes effective,
(B)  of  any  request  by  the  Commission or any state securities authority for
amendments  and  supplements  to  the  Shelf  Registration  Statement  or of any
material  request  by  the  Commission  or  any  state  securities authority for
additional  information  after  the  Shelf  Registration  Statement  has  become
effective,  (C)  of  the  issuance  by  the  Commission  or any state securities
authority  of  any  stop  order  suspending  the  effectiveness  of  the  Shelf
Registration  Statement  or  the initiation of any proceedings for that purpose,
(D)  if,  between the effective date of the Shelf Registration Statement and the
closing  of  any  sale  of  Registrable  Securities  covered  thereby,  the
representations  and  warranties  of  the  Company contained in any underwriting
agreement, securities sales agreement or other similar agreement, including this
Agreement,  relating  to disclosure cease to be true and correct in all material
respects  or  if  the  Company  receives  any  notification  with respect to the
suspension  of  the  qualification of the Registrable Securities for sale in any
jurisdiction  or  the  initiation of any proceeding for such purpose, (E) of the
happening  of  any  event  during the period the Shelf Registration Statement is
effective  such that such Shelf Registration Statement or the related prospectus
contains  an  untrue  statement  of a material fact or omits to state a material
fact  required  to be stated therein or necessary to make statements therein not
misleading  (in  the case of a prospectus, in light of circumstances under which
they  were  made)  and  (F)  of  any  determination  by  the  Company  that  a
post-effective  amendment  to  the  Shelf  Registration  Statement  would  be
appropriate.  The  Holders  hereby  agree  to suspend, and to cause any managing
underwriter  to suspend, use of the prospectus contained in a Shelf Registration
Statement  upon receipt of such notice under clause (C), (E) or (F) above until,
in  the  case  of clause (C), such stop order is removed or rescinded or, in the
case  of  clauses  (E)  and  (F),  the  Company has amended or supplemented such
prospectus  to  correct  such  misstatement  or  omission  or  otherwise.

          If  the  notification  relates to an event described in clauses (E) or
(F),  the  Company  shall  promptly  prepare and furnish to such seller and each
underwriter,  if any, a reasonable number of copies of a prospectus supplemented
or  amended  so  that,  as  thereafter  delivered  to  the  purchasers  of  such
Registrable Securities, such prospectus shall not include an untrue statement of
a  material  fact or omit to state a material fact required to be stated therein
or  necessary  to  make  the  statements  therein  not  misleading;

     (viii)  comply with all applicable rules and regulations of the Commission
and  make  generally  available  to  its security holders, as soon as reasonably
practicable  after  the effective date of the registration statement (and in any
event  within  15  months  thereafter), an earnings statement (which need not be
audited)  covering  the  period  of at least twelve consecutive months beginning
with  the  first day of the Company's first calendar quarter after the effective
date  of  the registration statement, which earnings statement shall satisfy the
provisions  of  Section  11(a)  of  the  Securities Act and Rule 158 thereunder;

     (ix) provide and cause to be maintained a transfer agent and registrar for
all such Registrable Securities covered by such registration statement not later
than  the  effective  date  of  such  registration  statement;

     (x)  enter into such customary agreements  (including,  if applicable, an
underwriting  agreement)  and  take  such  other  actions  as  the Holders shall
reasonably  request  in  order to expedite or facilitate the disposition of such
Registrable  Securities.  The Holders of the Registrable Securities which are to
be  distributed  by  such  underwriters  shall  be  parties to such underwriting
agreement  and  may, at their option, require that the Company, and in such case
the  Company  will,  make  to,  and  for  the  benefit  of,  the  Holders  the
representations,  warranties  and  covenants of the Company which are being made
to,  and  for  the  benefit  of,  such  underwriters  and  which are of the type
customarily  provided  to  institutional  investors  in  secondary  offerings;

    (xi)  deliver promptly to each Holder participating in the offering and each
underwriter, if any, copies of all correspondence between the Commission and the
Company,  its counsel or auditors and all memoranda relating to discussions with
the  Commission  and its staff with respect to the registration statement, other
than  those  portions  of  any  such  correspondence and memoranda which contain
information  subject  to  attorney-client privilege with respect to the Company,
and,  upon  receipt  of  such  confidentiality  agreements  as  the  Company may
reasonably  request,  make  reasonably available for inspection by any Holder of
such  Registrable  Securities  covered  by  such  registration statement, by any
underwriter, if any, participating in any disposition to be effected pursuant to
such  registration  statement  and  by  any  attorney, accountant or other agent
retained by any such Holder or any such underwriter, all pertinent financial and
other  records, pertinent corporate documents and properties of the Company, and
cause  all  of  the  Company's  officers,  directors and employees to supply all
information  reasonably  requested  by  any  such Holder, underwriter, attorney,
accountant  or  agent  in  connection  with  such  registration  statement;

    (xii)  use its best efforts to obtain the withdrawal of any order suspending
the  effectiveness  of  the  registration  statement;

   (xiii)   provide a CUSIP number for all Registrable Securities not later than
the  effective  date  of  the  registration  statement;

    (xiv)  make reasonably available its employees and personnel and otherwise
provide  reasonable  assistance  to  the  underwriters  in  the  marketing  of
Registrable  Securities  in  any  underwritten  offering;

     (xv)  promptly prior to the filing of any  document  which  is  to  be
incorporated  by  reference  into  the  registration statement or the prospectus
(after the initial filing of such registration statement) provide copies of such
document  to counsel to the seller of Registrable Securities and to the managing
underwriter, if any, and make the Company's representatives reasonably available
for  discussion  of  such  document  and  make  such  changes  in  such document
concerning  such sellers prior to the filing thereof as counsel for such sellers
or  underwriters  may  reasonably  request;

     (xvi) cooperate with the sellers of Registrable Securities and the managing
underwriter,  if  any,  to  facilitate  the  timely  preparation and delivery of
certificates  not  bearing  any restrictive legends representing the Registrable
Securities  to  be  sold,  and cause such Registrable Securities to be issued in
such  denominations  and  registered  in  such  names  in  accordance  with  the
underwriting  agreement  prior  to  any  sale  of  Registrable Securities to the
underwriters  or,  if  not  an  underwritten  offering,  in  accordance with the
instructions  of  the  sellers of Registrable Securities at least three business
days  prior  to  any  sale  of  Registrable  Securities;  and

     (xvii) take all such other commercially reasonable actions as are necessary
or  advisable  in  order  to  expedite  or  facilitate  the  disposition of such
Registrable  Securities.

     (b)     Each  Holder  of  Registrable  Securities  sold  pursuant  to  a
registration  statement,  by  requesting  that  such securities be included such
registration  statement,  hereby  (i)  agrees  to  provide  the  Company  with
information  with respect to such Holder that the Company reasonably requests in
connection  with  such  registration  statement.

    (c)  If any such registration statement or comparable statement under "blue
sky"  laws  refers  to  any  Holder  by  name  or otherwise as the Holder of any
securities  of  the  Company,  then such Holder shall have the right to require,
acting  reasonably, (i) the insertion therein of language, in form and substance
satisfactory  to  such  Holder, to the effect that the holding by such Holder of
such securities is not to be construed as a recommendation by such Holder of the
investment  quality  of  the  Company's securities covered thereby and that such
holding  does  not  imply  that  such  Holder  will assist in meeting any future
financial  requirements of the Company, or (ii) in the event that such reference
to  such  Holder  by name or otherwise is not in the judgment of the Company, as
advised  by  counsel,  required  by  the  Securities  Act or any similar federal
statute  or  any state "blue sky" or United States securities law then in force,
the  deletion  of  the  reference  to  such  Holder.

     2.4     Registration  Expenses.

     2.4.1     "Expenses"  shall  mean any and all fees and expenses incident to
the  Company's  performance  of  or  compliance  with this Article 2, including,
without  limitation:  (i)  Commission,  stock  exchange or NASD registration and
filing  fees  and  all  listing  fees  and fees with respect to the inclusion of
securities  in  the Nasdaq National Market; (ii) fees and expenses of compliance
with  Securities  Laws or "blue sky" laws and in connection with the preparation
of  a  "blue  sky"  survey,  including,  without limitation, reasonable fees and
expenses  of  blue  sky  counsel;  (iii)  printing  and  copying  expenses; (iv)
messenger  and  delivery  expenses; (v) expenses incurred in connection with any
road  show;  (vi)  fees and disbursements of counsel for the Company; (vii) fees
and  disbursements of all independent public accountants (including the expenses
of  any  audit  and/or  "cold  comfort"  letter)  and fees and expenses of other
persons,  including  special  experts,  retained  by the Company; and (viii) any
other  reasonable  fees  and  disbursements of underwriters, if any, customarily
paid  by  issuers.

     2.4.2  The Company shall pay all Expenses  with  respect  to  any  Shelf
Registration  Statement  affected  pursuant  to  Section 2.1 whether or not such
Shelf  Registration Statement becomes effective or does not remain effective for
the  period  contemplated by Section 2.1(a).  The Company shall pay all Expenses
of  the  Holders  with  respect  to any registration effected under Section 2.2.

    2.4.3  Notwithstanding the foregoing, (i) the provisions of this Section 2.4
shall  be  deemed  amended  to  the  extent  necessary  to  cause  these expense
provisions  to  comply  with  United States "blue sky" laws of each state or the
Securities Laws of any other jurisdiction in which the offering is made; (ii) in
connection  with  any  registration  hereunder,  each  Holder  of  Registrable
Securities being registered shall pay all underwriting discounts and commissions
and  any transfer taxes, if any, attributable to the Registrable Securities, pro
rata  with  respect  to payments of discounts and commissions in accordance with
the  number  of  shares  included  in the offering by such Holder; and (iii) the
Company  shall  be  responsible  for  all  of  its internal expenses (including,
without  limitation,  all  salaries  and  expenses of its officers and employees
performing  legal  or  accounting  duties).

     2.5     Liquidated  Damages.  If  (i)  a  registration  statement  or
registration statements including all of the Registrable Securities has not been
declared effective by the Commission on or prior to the first anniversary of the
date  of  the  initial  issuance  of  the  Series  II Preferred, or (ii) a Shelf
Registration  Statement  is  declared  effective  but  prior  to the end  of the
Effective Period (A) shall thereafter cease to be effective or fail to be usable
for its intended purpose without being succeeded immediately by a post-effective
amendment  to such Shelf Registration Statement that cures such failure and that
is itself declared effective immediately thereafter or (B) the use of such Shelf
Registration  Statement  is  suspended  by  the  Company for one or more periods
exceeding  60  days  in  the aggregate (each event referred to in clause (i) and
(ii),  a  "Registration  Default"),  then  in addition to such other remedies as
shall  be  available  to  the Holder of such Registrable Securities, the Company
shall  pay  to each Holder of Registrable Securities affected thereby liquidated
damages  in  cash  in  an amount equal to three percent (3%) of the then current
Special  Liquidation  Payment (as defined in the Series II Designation) for each
thirty  (30)  day  period  or  portion  thereof  that  such Registration Default
continues;  provided  that  in  no  event  shall  the Company be required to pay
liquidated  damages  pursuant to this Section 2.5 (i) in excess of three percent
(3%)  of  the  then current Special Liquidation Payment for any such thirty (30)
day  period  or  (ii)  for  any  such  thirty  (30) day period if the Company is
required  to  pay  liquidated  damages pursuant to Section 6(j) of the Series II
Designation  for  such  thirty  (30)  day  period.

          All  accrued  and  liquidated  damages  shall  be  paid to the Holders
entitled  thereto,  monthly  in  arrears.  Notwithstanding  the  fact  that  any
securities  for  which  liquidated  damages  are  due  cease  to  be Registrable
Securities,  all  obligations  of  the  Company  to  pay liquidated damages with
respect  to  securities  shall  survive until such time as such obligations with
respect  to  such  securities  shall  have  been  satisfied  in  full.

     2.6     Certain  Limitations  on  Registration  Rights.  In the case of any
registration  under  Section 2.1 pursuant to an underwritten offering, or in the
case  of  registration  under Section 2.2 if the Company has determined to enter
into  an  underwriting  agreement  in connection therewith, all securities to be
included  in such registration shall be subject to an underwriting agreement and
no Person may participate in such registration unless such Person agrees to sell
such  Person's  securities  on  the  basis provided therein and completes and/or
executes  all  questionnaires  and  other  documents  which  must be executed in
connection  therewith, and provides such other information to the Company or the
underwriter  as  may  be  necessary  to  register  such  Person's  securities.

2.7     No  Required  Sale.  Nothing in this Agreement shall be deemed to create
an  independent  obligation  on  the  part of any Holder to sell any Registrable
Securities  pursuant  to  any  effective  registration  statement.

     3.     Indemnification.

     3.1     In  the  event of any registration of any securities of the Company
under  the  Securities  Act pursuant to Article 2, the Company shall, and hereby
does,  indemnify  and hold harmless, to the fullest extent permitted by law, the
Holder  of  any  Registrable  Securities,  its directors, officers, fiduciaries,
employees  and  shareholders or general and limited partners (and the directors,
officers,  employees  and  shareholders  thereof),  each  other  Person  who
participates  as  an  underwriter,  if  any,  in  the  offering  or sale of such
securities,  each  officer,  director,  employee, shareholder or partner of such
underwriter, and each other Person, if any, who controls such seller or any such
underwriter  within  the  meaning  of  the  Securities  Act, against any and all
losses, claims, damages or liabilities, joint or several, actions or proceedings
(whether  commenced  or  threatened)  in respect thereof and expenses (including
reasonable  fees of counsel and any amounts paid in any settlement effected with
the  Company's  consent,  which  consent  shall  not be unreasonably withheld or
delayed)  to  which  each  such  indemnified  party may become subject under the
Securities  Act  or otherwise ("Claims"), insofar as such Claims arise out of or
are  based  upon  (i)  any  untrue  statement  or  alleged untrue statement of a
material  fact  contained  in  any  registration  statement  under  which  such
securities  were  registered under the Securities Act or the omission or alleged
omission  to  state  therein  a  material  fact required to be stated therein or
necessary  to  make  the  statements  therein  not  misleading;  (ii) any untrue
statement  or  alleged  untrue  statement  of  a  material fact contained in any
preliminary, final or summary prospectus or any amendment or supplement thereto,
together  with  the documents incorporated by reference therein, or the omission
or  alleged  omission  to  state  therein  a material fact required to be stated
therein  or  necessary  in order to make the statements therein, in the light of
the  circumstances  under  which  they  were  made, not misleading; or (iii) any
violation by the Company of any federal, state, or common law rule or regulation
applicable  to  the  Company  and relating to action required or inaction of the
Company in connection with any such registration, and the Company will reimburse
any  such  indemnified party for any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such
Claim  as  such expenses are incurred; provided, however, that the Company shall
not  be liable to any such indemnified party in any such case to the extent such
Claim arises solely out of any untrue statement or alleged untrue statement of a
material  fact  or  omission or alleged omission of a material fact made in such
registration statement or amendment thereof or supplement thereto or in any such
prospectus or any preliminary, final or summary prospectus in reliance upon, and
in  conformity  with,  written  information  furnished  to the Company by, or on
behalf  of, such indemnified party specifically for use therein.  Such indemnity
and  reimbursement  of expenses shall remain in full force and effect regardless
of  any investigation made by, or on behalf of, such indemnified party and shall
survive  the  transfer  of  such  securities  by  such  seller.

   3.2  Each  Holder of Registrable Securities  that  are  included  in  the
securities  as  to  which  any  registration  under  Section 2.1 or 2.2 is being
effected  shall,  severally and not jointly, indemnify and hold harmless (in the
same  manner  and  to the same extent as set forth in Section 3.1) to the extent
permitted  by  law, the Company, its officers, directors, fiduciaries, employees
and  shareholders  or general and limited partners (and the directors, officers,
employees, and shareholders thereof), each Person controlling the Company within
the  meaning  of  the  Securities  Act  with  respect to any untrue statement or
alleged  untrue  statement  of  any  material  fact  in,  or omission or alleged
omission  of  any  material  fact  from,  such  registration  statement,  any
preliminary,  final or summary prospectus contained therein, or any amendment or
supplement  thereto,  if  such  statement  or  alleged  statement or omission or
alleged  omission  was  made  in  reliance upon, and in conformity with, written
information furnished to the Company or its representatives by, or on behalf of,
such  Holder  specifically  for use therein and shall reimburse such indemnified
party  for  any  legal  or other expenses reasonably incurred in connection with
investigating  or  defending  any  such  Claim  as  such  expenses are incurred;
provided,  however,  that  the  aggregate  amount which any such Holder shall be
required  to  pay pursuant to this Section 3.2 and Sections 3.3 and 3.5 shall in
no  case  be greater than the amount of the net proceeds received by such Holder
upon  the  sale  of  the  Registrable  Securities  pursuant  to the registration
statement  giving  rise  to  such  Claim.  Such  indemnity  and reimbursement of
expenses  shall  remain in full force and effect regardless of any investigation
made  by, or on behalf of, such indemnified party and shall survive the transfer
of  such  securities  by  such  Holder.

   3.3  Indemnification similar to that specified in the preceding  Sections 3.1
and  3.2  (with appropriate modifications) shall be given by the Company and the
seller  of  Registrable  Securities with respect to any required registration or
other  qualification  of  securities  under  any state securities and "blue sky"
laws.

     3.4 Any person entitled to indemnification under  this  Agreement shall
promptly  notify  the  indemnifying  party in writing of the commencement of any
action  or  proceeding  with respect to which a claim for indemnification may be
made  pursuant  to  this  Article 3, but the failure of any indemnified party to
provide  such notice shall not relieve the indemnifying party of its obligations
under  this Article 3, except to the extent the indemnifying party is materially
prejudiced  thereby  and  shall  not  relieve  the  indemnifying  party from any
liability  which  it may have to any indemnified party otherwise than under this
Article  3.  In  case any action or proceeding is brought against an indemnified
party,  it  shall notify the indemnifying party of the commencement thereof, the
indemnifying  party  shall be entitled to participate therein and, unless in the
reasonable  opinion  of  outside  counsel to the indemnified party a conflict of
interest  between such indemnified and indemnifying parties may exist in respect
of such Claim, to assume the defense thereof jointly with any other indemnifying
party similarly notified, to the extent that it chooses, with counsel reasonably
satisfactory  to  such indemnified party (who shall not, except with the written
consent  of  the  indemnified  party, be counsel to the indemnifying party), and
after  notice  from  the indemnifying party to such indemnified party that it so
chooses,  the  indemnifying  party shall not be liable to such indemnified party
for  any legal or other expenses subsequently incurred by such indemnified party
in  connection  with  the  defense  thereof  other  than  reasonable  costs  of
investigation;  provided,  however,  that (i) if the indemnifying party fails to
take  reasonable  steps  necessary to defend diligently the action or proceeding
within  20  days  after  receiving  notice  from such indemnified party that the
indemnified  party  believes  it  has  failed to do so; (ii) if such indemnified
party  who  is  a  defendant  in  any action or proceeding which is also brought
against the indemnifying party reasonably shall have concluded that there may be
one  or  more  legal  defenses available to such indemnified party which are not
available  to the indemnifying party; or (iii) if representation of both parties
by  the  same  counsel  is otherwise inappropriate under applicable standards of
professional  conduct,  then, in any such case, the indemnified party shall have
the  right to assume or continue its own defense as set forth above (but with no
more  than one firm of counsel for all indemnified parties in each jurisdiction,
except  to  the  extent  any  indemnified party or parties reasonably shall have
concluded  that  there  may be legal defenses available to such party or parties
which  are  not  available  to  the  other  indemnified parties or to the extent
representation  of  all  indemnified  parties  by  the same counsel is otherwise
inappropriate  under  applicable  standards  of  professional  conduct)  and the
indemnifying party shall be liable for any expenses therefor (including, without
limitation,  any such counsel's fees).  No indemnifying party shall, without the
written  consent  of  the indemnified party, effect the settlement or compromise
of,  or  consent  to  the  entry of any judgment with respect to, any pending or
threatened  action  or Claim in respect of which indemnification or contribution
may  be  sought  hereunder (whether or not the indemnified party is an actual or
potential  party  to such action or claim) unless such settlement, compromise or
judgment (A) includes an unconditional release of the indemnified party from all
liability  arising  out  of  such  action  or  claim  and (B) does not include a
statement as to, or an admission of, fault, culpability or a failure to act, by,
or  on  behalf  of,  any  indemnified  party.

      3.5  If for any reason the foregoing  indemnity  is  unavailable  or  is
insufficient  to  hold  harmless an indemnified party under Sections 3.1, 3.2 or
3.3, then each indemnifying party shall contribute to the amount paid or payable
by  such  indemnified  party  as  a result of any Claim in such proportion as is
appropriate  to reflect the relative fault of the indemnifying party, on the one
hand,  and  the  indemnified  party,  on  the  other  hand, with respect to such
offering of securities.  The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact  or  the  omission  or alleged omission to state a material fact relates to
information  supplied by the indemnifying party or the indemnified party and the
parties'  relative  intent,  knowledge, access to information and opportunity to
correct  or  prevent  such  untrue  statement  or  omission.  If,  however,  the
allocation  provided  in  the  second  preceding  sentence  is  not permitted by
applicable law, then each indemnifying party shall contribute to the amount paid
or  payable  by  such  indemnified party in such proportion as is appropriate to
reflect  not  only  such  relative faults, but also any other relevant equitable
considerations.  The  parties  hereto  agree  that  it  would  not  be  just and
equitable if contributions pursuant to this Section 3.5 were to be determined by
pro  rata  allocation  or  by any other method of allocation which does not take
into account the equitable considerations referred to in the preceding sentences
of  this  Section 3.5.  The amount paid or payable in respect of any Claim shall
be  deemed  to  include  any legal or other expenses reasonably incurred by such
indemnified  party in connection with investigating or defending any such Claim.
No  person guilty of fraudulent misrepresentation (within the meaning of Section
11(f)  of  the  U.S.  Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.  Notwithstanding
anything  in this Section 3.5 to the contrary, no indemnifying party (other than
the  Company)  shall  be required pursuant to this Section 3.5 to contribute any
amount  in  excess  of the net proceeds received by such indemnifying party from
the  sale of Registrable Securities in the offering to which the losses, claims,
damages or liabilities of the indemnified parties relate, less the amount of any
indemnification  payment  made  pursuant  to  Sections  3.2  and  3.3.

      3.6  The indemnity agreements contained herein shall be in addition to any
other  rights to indemnification or contribution which any indemnified party may
have  pursuant  to  law or contract and shall remain operative and in full force
and  effect regardless of any investigation made or omitted by, or on behalf of,
any  indemnified  party  and  shall  survive  the  transfer  of  the Registrable
Securities  by  any  such  party.

   3.7  The indemnification and contribution required by this Article 3 shall be
made  by  periodic  payments  of  the  amount  thereof  during the course of the
investigation  or  defense,  as  and  when  bills are received or expense, loss,
damage  or  liability  is  incurred.

     4.   Underwritten  Offerings

     4.1   Requested  Underwritten Offerings  If requested by the underwriters
for  any  underwritten  offering by the Holders pursuant to a registration under
Section  2.1,  the  Company  shall enter into a customary underwriting agreement
with  the  underwriters.  Such  underwriting  agreement shall be satisfactory in
form  and  substance  to  the Company and the Holders that own a majority of the
Registrable  Securities  included  by  the  Holders  in  such  offering  acting
reasonably  and  shall  contain such representations and warranties by, and such
other  agreements  on  the  part  of,  the  Company  and such other terms as are
generally  prevailing in agreements of that type, including, without limitation,
indemnities  and  contribution  agreements.  Any  Holder  participating  in  the
offering shall be a party to such underwriting agreement and may, at its option,
require  that  any or all of the representations and warranties made by, and the
other  agreements  on  the part of, the Company to, and for the benefit of, such
underwriters shall also be made to, and for the benefit of, such Holder and that
any  or  all of the conditions precedent to the obligations of such underwriters
under  such underwriting agreement be conditions precedent to the obligations of
such  Holder;  provided, however, that the Company shall not be required to make
any  representations  or  warranties  with  respect  to information specifically
provided  by  a  selling  Holder  of Registrable Securities for inclusion in the
registration  statement.  Such  underwriting  agreement  shall also contain such
representations  and warranties by the participating Holders as are customary in
agreements  of  that  type.

     4.2  Piggyback Underwritten Offerings.  In the case  of  a  registration
pursuant  to  Section  2.2 hereof, if the Company shall have determined to enter
into  any  underwriting  agreements in connection therewith, all of the Holders'
Registrable  Securities  to be included in such registration shall be subject to
such underwriting agreement.  Any Holder participating in such registration may,
at  it option, require that any or all of the representations and warranties by,
and the other agreements on the part of, the Company to, and for the benefit of,
such underwriters shall also be made to, and for the benefit of, such Holder and
that  any  or  all  of  the  conditions  precedent  to  the  obligations of such
underwriters  under  such  underwriting agreement be conditions precedent to the
obligations  of  such  Holder.  Such  underwriting agreements shall also contain
such  representations  and  warranties  by  the  participating  Holders  as  are
customary  in  agreements  of  that  type.

     4.3  Underwriting Services  If  a  registration  pursuant  to  Section  2.1
involves  an  underwritten  offering,  then  Holders  that own a majority of the
Registrable Securities included by the Holders in such offering shall select the
underwriter  from underwriting firms of national reputation in the United States
subject  to  the  approval  of the Company, such approval not to be unreasonably
withheld.

     5.   General

     5.1   Rule  144.  The  Company  covenants  that (a) so long as it remains
subject to the reporting provisions of the Exchange Act, it will timely file the
reports  required to be filed by it under the Securities Act or the Exchange Act
(including,  without  limitation, the reports under Sections 13 and 15(d) of the
Exchange Act referred to in subparagraph (c)(1) of Rule 144 under the Securities
Act),  and  (b)  will  take  such  further  action  as any Holder of Registrable
Securities  may reasonably request, all to the extent required from time to time
to  enable such Holder to sell Registrable Securities without registration under
the  Securities Act within the limitation of the exemptions provided by (i) Rule
144  under the Securities Act, as such Rule may be amended from time to time, or
(ii)  any  similar rule or regulation hereafter adopted by the Commission.  Upon
the request of any Holder of Registrable Securities, the Company will deliver to
such  Holder  a  written  statement  as  to  whether  it  has complied with such
requirements.

    5.2  Nominees for Beneficial Owners  If Registrable Securities are held by a
nominee  for  the beneficial owner thereof, the beneficial owner thereof may, at
its option, be treated as the Holder of such Registrable Securities for purposes
of  any request or other action by any Holder of Registrable Securities pursuant
to  this  Agreement  (or any determination of any number or percentage of shares
constituting Registrable Securities held by any Holder of Registrable Securities
contemplated  by this Agreement); provided, however, that the Company shall have
received  written  assurances  reasonably  satisfactory to it of such beneficial
ownership.

   5.3   Amendments.  The terms and provisions of this Agreement may be modified
or  amended, or any of the provisions hereof waived, temporarily or permanently,
pursuant  to  the  prior  written consent of the Company and the party adversely
affected  by  such  modification  or  waiver.

      5.4  Notices. All notices, requests, consents  and  other  communications
hereunder  to  any  party  shall  be  deemed  to be sufficient if contained in a
written  instrument  delivered  in  person  or  sent  by  telecopy,  nationally
recognized overnight courier or first class registered or certified mail, return
receipt  requested,  postage prepaid, addressed to such party at the address set
forth  below  or such other address as may hereafter be designated in writing by
such  party  to  the  other  parties:

      (i)  if  to  the  Company,  to:

           Meridian  USA  Holdings,  Inc.
           3350  N.W.  2nd  Avenue
           Boca  Raton,  FL  33431
           Attention:  Alan  J.  Posner
           Facsimile  (561)  417-6888

           with  copies  to:

           Aronauer,  Goldfarb,  Sills  &  Re,  LLP
           444  Madison  Avenue
           New  York,  NY  10022
           Attention:  Samuel  Goldfarb,  Esq.
           Facsimile:  (212)  755-6006

      (ii)  if to a Holder, at address set forth on the signature page hereto or
such  other  address as may hereafter be designated in writing by such Holder to
the  Company.

     Each Holder, by written notice given to the Company in accordance with this
Section 5.4, may change the address to which such notice or other communications
are  to  be sent to such Holder.  All such notices, requests, consents and other
communications  shall  be  deemed  to  have  been  given  when  received.

     5.5  Miscellaneous.

     5.5.1  This  Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and the respective successors, personal
representatives  and assigns of the parties hereto, whether so expressed or not.
No  Person  other  than  a  Holder  shall be entitled to any benefits under this
Agreement,  except  as  otherwise expressly provided herein.  This Agreement and
the rights of the parties hereunder may be assigned by any of the parties hereto
to any transferee of Registrable Securities; provided that upon the consummation
of,  and  as  a  condition  to,  any  such assignment the transferee assumes the
obligations  of the assignor under, and agrees to be bound by the terms of, this
Agreement.

     5.5.2 This Agreement and the other writings referred to herein or delivered
pursuant  hereto which form a part hereof contain the entire agreement among the
parties  with  respect  to the subject matter hereof and supersede all prior and
contemplated  arrangements  and  understandings  with  respect  thereto.

     5.5.3  This Agreement shall be governed by and construed in accordance with
the  laws  of  the  State of New York without giving effect to the principles of
conflicts  of  law  thereof.

     5.5.4 The headings of the sections of this Agreement have been inserted for
convenience  of  reference  only  and  shall  not be deemed to be a part of this
Agreement.

    5.5.5 This Agreement may be executed in any number of counterparts, and each
such  counterpart  hereof  shall  be deemed an original instrument, but all such
counterparts  together  shall  constitute  but  one  instrument.

     5.5.6   Whenever possible, each provision of this Agreement  shall  be
interpreted in such manner as to be effective and valid, but if any provision of
this  Agreement  is  held  to  be  invalid or unenforceable in any respect, such
invalidity  or  unenforceability  shall  not render invalid or unenforceable any
other  provision  of  this  Agreement.  If  any  provision  shall  be held to be
invalid,  such  provision  shall be deemed valid to the extent permitted by law.

     5.5.7    It is hereby agreed and acknowledged that it will be impossible to
measure  in  money  the  damages  that  would be suffered if the parties fail to
comply  with any of the obligations herein imposed on them and that in the event
of  any  such  failure, an aggrieved person will be irreparably damaged and will
not  have  an  adequate  remedy  at  law.  Any  such person, therefore, shall be
entitled  to  injunctive relief, including specific performance, to enforce such
obligations,  without  the  posting  of  any  bond, and, if any action should be
brought  in  equity  to enforce any of the provisions of this Agreement, none of
the  parties  hereto shall raise the defense that there is an adequate remedy at
law.

     5.5.8     Each party hereto shall do and perform  or  cause to be done and
performed  all  such  further  acts and things and shall execute and deliver all
such  other  agreements,  certificates,  instruments, and documents as any other
party  hereto  reasonably  may  request  in  order  to  carry out the intent and
accomplish  the  purposes  of  this  Agreement  and  the  consummation  of  the
transactions  contemplated  hereby.

     5.5.9     Each of the parties hereto hereby irrevocably and unconditionally
consents  to  submit to the exclusive jurisdiction of the courts of the State of
New York and of the United States of America, in each case located in the County
of  New York, for any action, proceeding or investigation in any court or before
any  governmental  authority  ("Litigation")  arising out of or relating to this
Agreement  and  the transactions contemplated hereby (and agrees not to commence
any  Litigation relating thereto except in such courts), and further agrees that
service  of  any  process, summons, notice or document by registered mail to its
respective  address  set  forth  in this Agreement shall be effective service of
process  for  any  Litigation brought against it in any such court.  Each of the
parties  hereto  hereby  irrevocably and unconditionally waives any objection to
the  laying  of  venue  of  any  Litigation arising out of this Agreement or the
transactions  contemplated  hereby in the courts of the State of New York or the
United  States  of  America, in each case located in the County of New York, and
hereby further irrevocably and unconditionally waives and agrees not to plead or
claim  in  any such court that any such Litigation brought in any such court has
been  brought  in  an  inconvenient  forum.  EACH OF THE PARTIES IRREVOCABLY AND
UNCONDITIONALLY  WAIVES,  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
AND ALL RIGHTS TO TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION ARISING OUT OF
OR  RELATING  TO  THIS  AGREEMENT  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY.

     5.6     No  Inconsistent  Agreements.  Without the prior written consent of
Holders  representing a majority of the Registrable Securities, the Company will
not,  on  or  after  the  date  of this Agreement, enter into any agreement with
respect  to its securities which is inconsistent with the rights granted in this
Agreement  or  otherwise  conflicts  with  the provisions hereof, other than any
lock-up  agreement  with  the  underwriters  in  connection  with any registered
offering  effected  hereunder,  pursuant to which the Company shall agree not to
register  for sale, and the Company shall agree not to sell or otherwise dispose
of,  Common  Stock  or  any  securities  convertible  into  or  exercisable  or
exchangeable  for  Common  Stock for a specified period following the registered
offering.

     IN  WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date  set  forth  above.

MERIDIAN  USA  HOLDINGS,  INC.
By:       /s/  Mark  Streisfeld
        -----------------------
     Name:  Mark  Streisfeld
     Title:  President

U.S.  BANCORP  INVESTMENTS,  INC.
      By:   /s/ Jess M. Ravich
      Name: Jess M. Ravich
      Title:Chairman

Address  for  Notice:
11766  Wilshire  Boulevard,  Suite  870
Los  Angeles,  CA  90025
Attention:  General  Counsel
Facsimile:  (310)  312-5640

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]