Document:

Exhibit
10.1

August 31, 2007

 

 

Mr. Scott J. Cromie

2510 Lennox Drive

Germantown, TN  38138

Re:          Termination of
Employment with The ServiceMaster Company

 

Dear Mr. Cromie:

 

Reference is hereby made to your Change in Control Severance Agreement
(the “Agreement”) dated as of October 31, 2001 by and between you and
The ServiceMaster Company, as assumed by ServiceMaster Global Holdings, Inc.
(collectively, “ServiceMaster”). 
The terms used in this letter and not otherwise defined herein shall
have the meanings set forth in the Agreement. 

 

This letter serves as an acknowledgement by you and ServiceMaster that
(i) your employment with ServiceMaster, and all offices and other positions
therewith, shall terminate on August 31, 2007 (the “Date of Termination”), (ii)
that your employment is being terminated by ServiceMaster for reasons other
than Cause and (iii) that such termination will occur during the Termination
Period pursuant to Sections 3(a) and 3(b) of the Agreement, other than by
reason of a Nonqualifying Termination. 

 

This letter is not intended to limit any of your rights under the
Agreement, including your entitlement to the payments made under Sections 3(a)
and 3(b) of the Agreement and certain additional payments under Section 4 of
the Agreement.  If your employment
terminates prior to the Date of Termination by reason of a Nonqualifying
Termination (i.e., resignation without Good Reason, termination for Cause,
death or disability), then you shall be entitled only to the payments described
in Section 3(c) of the Agreement.

 

Please acknowledge your agreement with this letter below and return it
to my attention.

 

	
  

  	
  THE SERVICEMASTER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lisa V. Goettel

  
	
   

  	
   

  	
  Lisa V. Goettel

  
	
   

  	
   

  	
  Sr. Vice President/Human Resources

  
	
  Agreed and
  acknowledged:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Scott J.
  Cromie

  	
   

  	
   

  
	
  Scott J. Cromie

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  September 4,
  2007Exhibit
4.1

SECURITIES
PURCHASE AGREEMENT

among

VUBOTICS,
INC.

as Issuer

JAY WEIL

as Collateral Agent

and

THE
ADDITIONAL PERSONS LISTED ON THE SIGNATURE PAGES HERETO

as Purchasers

August
28, 2007

Duane Morris LLP

Suite 700

1180 West Peachtree Street

Atlanta, Georgia 30309

404.253.6900

Counsel for Issuer

	
  EXHIBITS

  
	
   

  
	
  Exhibit A

  	
   

  	
  Form of Note

  
	
  Exhibit B

  	
   

  	
  Form of Registration Rights Agreement

  
	
  Exhibit C-1

  	
   

  	
  Form of Security Agreement

  
	
  Exhibit C-2

  	
   

  	
  Form of Notice of Collateral Assignment of Security
  Interest in Patent Applications

  
	
  Exhibit C-3

  	
   

  	
  Form of Notice of Collateral Assignment of Security
  Interest in Trademarks

  
	
  Exhibit C-4

  	
   

  	
  Form of Notice of Collateral Assignment of Security
  Interest in Copyrights

  
	
  Exhibit D

  	
   

  	
  Form of Warrant

  
	
  Exhibit E

  	
   

  	
  Form of Escrow Agreement

  
	
  Exhibit F

  	
   

  	
  Form of Accredited Investor Questionnaire

  
	
  Exhibit G

  	
   

  	
  Form of Legal Opinion of Issuer’s Counsel

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  
	
   

  
	
  Schedule 3.1.6

  	
   

  	
  Capitalization

  
	
  Schedule 3.1.9

  	
   

  	
  Brokerage or Finder’s Fees

  
	
  Schedule 4.1.1

  	
   

  	
  Accrued Payables

  

 

 i

SECURITIES PURCHASE AGREEMENT

THIS AGREEMENT is made as of
August 28, 2007 among VUBOTICS, INC.,
a Georgia corporation (“Issuer”), Jay
Weil, as collateral agent for the purchasers (“Collateral
Agent”), and the additional persons listed on the signature pages (“Purchasers”).

For value received, the
parties agree as follows:

1.                                     DEFINITIONS

1.1                               Definitions.  In this Agreement:

“Affiliate”
of a Person means any other Person who directly or indirectly controls, is
controlled by, or is under common control with, such Person.

“Common Stock”
means common stock of Issuer, par value $0.001 per share, and any other class
of securities into which such securities may hereafter be reclassified or
changed.

“Exchange Act”
means the U.S. Securities Exchange Act of 1934, any successor act of Congress,
and the regulations promulgated thereunder, as amended from time to time.

“Material Adverse Effect”
means a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of Issuer, or a material
adverse effect on Issuer’s ability to perform its obligations under the
Transaction Documents.

“Note” means
each senior, secured, convertible loan note issued by Issuer to a Purchaser
pursuant to this Agreement, and Notes means
some or all such Notes together, as the context requires.

“Person”
means an individual, corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity
of any kind.

“Proceeding”
means any action, claim, suit, arbitration, inquiry, notice of violation,
investigation or other proceeding.

“SEC” means
the U.S. Securities and Exchange Commission and any successor Person.

“Securities”
means the Notes, Warrants and other Registrable Securities.

“Securities Act”
means the U.S. Securities Act of 1933, any successor act of Congress, and the
regulations promulgated thereunder, as amended from time to time.

“Transaction Documents”
means this Agreement, the Notes, the Registration Rights Agreement, the
Security Agreement, the Warrants, the Escrow Agreement and any other documents
or agreements executed in connection with the transactions contemplated
hereunder.

“Warrant”
means each Common Stock purchase warrant issued by Issuer to a Purchaser
pursuant to this Agreement, and Warrants
means some or all of such Warrants together, as the context requires.

2.                                    PURCHASE
AND SALE OF NOTES AND WARRANTS

2.1                             Commitment.
Upon and subject to the terms and conditions set forth herein, each Purchaser
hereby subscribes for and commits to purchase from Issuer, and Issuer hereby
reserves for issuance and commits to issue and sell to each Purchaser, a Note
in the face amount, and a Warrant covering the number of shares of Common
Stock, set forth on such Purchaser’s signature page to this Agreement, for the
subscription price set forth on such signature page (the “Subscription Price”).

2.2                             Minimum
and Maximum Amounts.  Each Note
and Warrant will be issued as part of a series of issuances of one or more
Notes and Warrants for (a) a minimum cumulative Subscription Price for all
participating Purchasers of $800,000, and (b) a maximum cumulative Subscription
Price for all Purchasers of $2,000,000.

2.3                               Terms
of Notes.  Each Note will:

2.3.1                 be
substantially in the form attached hereto as Exhibit A;

2.3.2                 be issued in
a face amount equal to 120% of the Subscription Price paid by the Purchaser;

2.3.3                 mature, and
be due and payable in full, on March 28, 2008 (the “Maturity Date”), or
such later date as may hereafter be approved by Issuer and the holders of Notes
comprising more than 50% of the cumulative outstanding amount under all Notes
at the time such extension is approved;

2.3.4                 not bear
interest prior to (a) the Maturity Date or (b) the acceleration of the Note as
a result of the occurrence of an Event of Default thereunder, but after the
Maturity Date or the acceleration of the Note as a result of the occurrence of
an Event of Default thereunder, bear interest at the rate set forth therein or
such other rate as may be agreed;

2.3.5                 be
convertible at any time and from time to time prior to repayment, at the option
of the holder or, under the circumstances described therein, at the option of
Issuer, into that number of shares of Common Stock equal to quotient obtained
by dividing (a) 83.33% of the principal and interest of the Note being
converted,  by (b) the conversion price
of the Note, which will initially be $0.10 and be subject to adjustment in
certain circumstances as set forth in the Note;

2.3.6                 entitle the
holder to have Issuer register the Common Stock issuable upon conversion of the
Note with the SEC under the Securities Act pursuant to the registration rights
agreement (the “Registration Rights Agreement”)
to be entered into among Issuer, Purchasers and the placement agents for the
securities contemplated herein, in substantially the form attached hereto as Exhibit B;

 2
 

2.3.7                 be secured, pari passu with all other Notes, as to repayment, by a first
priority security interest in all of Issuer’s assets, including its
intellectual property rights, pursuant to a security agreement, in
substantially the form attached hereto as Exhibit
C-1, to be given by Issuer in favor of the Purchasers (the “Security Agreement”) and Collateral
Assignments of Patents, Trademarks and Copyrights, in substantially the forms
attached hereto as Exhibit C-2,  Exhibit C-3 and Exhibit C-4,
respectively (collectively, the “Collateral
Assignments”);

2.3.8                 except as
expressly set forth therein, have no preemptive or anti-dilution rights in
respect of Common Stock or any other debt or equity security now, heretofore or
hereafter issued or sold by Issuer;

2.3.9                 not be
prepaid by Issuer without the written consent of the holder;

2.3.10          only be repaid by
Issuer, in whole or in part, pro rata, based
on relative outstanding amounts, with all other outstanding Notes at the time
of each such repayment; and

2.3.11          not be transferable
by the Purchaser or any subsequent holder, except in accordance with Section
5.1 hereof.

2.4                               Terms
of Warrants.  Each Warrant will:

2.4.1                 be in
substantially the form attached hereto as Exhibit
D;

2.4.2                 entitle the
holder to purchase ten shares of Common Stock for every $1.00 in Subscription
Price paid for such Warrant and the related Note;

2.4.3                 entitle the
holder to have Issuer register the Common Stock issuable upon exercise of the
Warrant with the SEC under the Securities Act pursuant to the Registration
Rights Agreement;

2.4.4                 be
exercisable, in whole or in part, from time to time from the date of issuance
through the fifth anniversary of the Closing, in cash, at $0.20 per share;

2.4.5                 entitle the
holder to cashless exercise, which will result in the holder receiving that
number of shares of Common Stock equal to (a) the excess of the fair market
value (as defined therein) per share over the exercise price per share at the
date of exercise, multiplied by (b) the total number of shares as to which
exercised, and then divided by (c) the exercise price per share;

2.4.6                 except as
expressly set forth therein, have no preemptive or anti-dilution rights in
respect of Common Stock or any other debt or equity security now, heretofore or
hereafter issued or sold by Issuer; and

2.4.7                 not be
transferable by the Purchaser or any subsequent holder except in accordance
with Section 5.1 hereof.

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2.5                               Subscription
Documents and Payments.  Each
Purchaser has delivered, or will deliver, the following concurrently with such
Purchaser’s execution and delivery of this Agreement:

2.5.1                 a
counterpart, executed by such Purchaser, of the Registration Rights Agreement;

2.5.2                 a
counterpart, executed by such Purchaser, of the escrow agreement (the “Escrow Agreement”) to be entered into among
Issuer, Purchasers, Collateral Agent and Duane Morris LLP as escrow agent (“Escrow Agent”), in substantially the form
attached hereto as Exhibit E;

2.5.3                 payment to
Escrow Agent of the Subscription Price for the Note and Warrant subscribed for
by such Purchaser; and

2.5.4                 a fully
completed and signed accredited investor questionnaire (the “Investor
Questionnaire”) with respect to such Purchaser, in substantially the form
attached hereto as Exhibit F.

2.6                             Purchaser
Conditions Precedent.  The
obligations of each Purchaser to consummate the transactions contemplated in
Section 2.1 are subject to the satisfaction of the following conditions
precedent on or prior to the date of the relevant Closing (as defined in
Section 2.8):

2.6.1                 Issuer’s
obligation to offer preemptive rights pursuant to Section 4.6 of the Common
Stock and Warrant Purchase Agreement dated August 21, 2006 (the “2006 Agreement”), among VuBotics, Inc., a
Nevada corporation (as predecessor by merger of Issuer), and the purchasers who
are parties thereto (the “2006 Purchasers”)
will have been fulfilled or otherwise settled to the reasonable satisfaction of
the parties thereto;

2.6.2                 the
liquidated damages owed to the 2006 Purchasers pursuant to Section 1.5 of the
Registration Rights Agreement dated August 21, 2006 among the parties
referenced above in Section 2.6.1 will have been paid or otherwise settled;

2.6.3                 Issuer and
Collateral Agent will have executed and delivered to the Purchaser this
Agreement, and Issuer will have countersigned such Purchaser’s signature page
to this Agreement;

2.6.4                 Issuer will
have executed and delivered to the Purchaser and the placement agents the
Registration Rights Agreement;

2.6.5                 Issuer and
Collateral Agent will have executed and delivered to the Purchaser the Security
Agreement and such additional financing statements, collateral assignments and
other instruments and documents as may be necessary or prudent, in the
reasonable discretion of the Purchaser and the Collateral Agent, to perfect the
security interests of the Purchasers under the Security Agreement;

 4
 

2.6.6                 Issuer and
Escrow Agent will have executed and delivered to the Purchaser the Escrow
Agreement;

2.6.7                 Issuer shall
have accepted subscriptions for and a cumulative Subscription Price of at least
$800,000 must be available for release by Escrow Agent to Issuer;

2.6.8                 after
receiving the cumulative Subscription Price to be paid at such Closing, Issuer
must not have received a cumulative Subscription Price at all Closings in
excess of $2,000,000 (excluding any amounts received as a Subscription Price
from these 2006 Purchasers exercising their preemptive rights as referenced in
Section 2.6.1);

2.6.9                 at each Closing, Issuer must deliver a
bring-down certificate signed by an officer of Issuer to the effect that, as of
the date of such Closing, (a) Issuer has performed all obligations required to
be performed hereunder at or before such Closing, (b) Issuer has not defaulted
hereunder, and (c) all representations and warranties of Issuer herein and in
the other Transaction Documents are true and correct as of the date of such Closing;
and

2.6.10          Issuer’s counsel will have delivered to the
Purchaser a legal opinion in substantially the form attached hereto as Exhibit G.

2.7                             Issuer
Conditions Precedent.  The
obligations of Issuer to consummate the transactions contemplated in Section
2.1 are subject to the satisfaction of the following conditions precedent on or
prior to the date of the relevant Closing with respect to the relevant
Purchaser:

2.7.1                 such
Purchaser must have executed and delivered to Issuer a fully completed
signature page to this Agreement for such Purchaser;

2.7.2                 such
Purchaser must have executed and delivered to Issuer a counterpart of the
Registration Rights Agreement;

2.7.3                 Collateral
Agent must have executed and delivered to Issuer this Agreement and the
Security Agreement;

2.7.4                 such
Purchaser and Escrow Agent must have executed and delivered to Issuer the
Escrow Agreement;

2.7.5                 Issuer must
have received from such Purchaser a fully completed Investor Questionnaire, and
must have found the contents of such questionnaire to be satisfactory in Issuer’s
sole discretion;

2.7.6                 Issuer must
have received confirmation from Escrow Agent that it has received the
Subscription Price payable by such Purchaser; and

2.7.7                 at the
initial Closing, a cumulative Subscription Price of at least $250,000 must be
available for release by Escrow Agent to Issuer.

 5
 

2.8                             Closings.
The transactions contemplated in Section 2.1 will be consummated in one or more
closings (each, a “Closing”),
which will be held on those date(s) designated by Purchaser that occur (a) on
or after the date hereof and (b) on or before October 30, 2007.  At each Closing:

2.8.1                 Issuer will
execute and deliver to each Purchaser a signature page to this Agreement with
respect to each Purchaser participating in such Closing;

2.8.2                 Issuer will
issue the relevant Note(s) and Warrant(s) to each such Purchaser;

2.8.3                 commencing
with the Closing, Collateral Agent may take all actions necessary or
appropriate to perfect the security interests under the Security Agreement; and

2.8.4                 Issuer and
Collateral Agent will jointly instruct the Escrow Agent to release the
Subscription Price paid by the relevant Purchaser(s) to Issuer and/or to make
such other permitted payment(s) as Issuer may instruct.

2.9                             Cancellation
and Refund.  If the Closing of
any Purchaser’s subscription has not occurred prior to October 30, 2007, or if,
at any earlier date, events occur that preclude the conditions precedent to
Closing such Purchaser’s subscription from occurring, and such Purchaser has
not consented to otherwise extend the date of such Closing, then the Escrow
Agent will refund such Purchaser’s Subscription Price and the subscription by
such Purchaser to purchase the Notes and Warrants will automatically be
cancelled.

3.                                      REPRESENTATIONS,
WARRANTIES AND COVENANTS

3.1                               Representations, Warranties
and Covenants of Issuer.  Issuer represents, warrants and covenants to
Collateral Agent and Purchasers that:

3.1.1                 Organization
and Qualification. Issuer is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Georgia, with the requisite power and authority to enter into
the Transaction Documents and to own, lease and use its properties and assets
and to carry on its business as currently conducted.  Issuer is duly qualified to conduct business
and is in good standing as a foreign corporation in each jurisdiction in which
it conducts business as necessary, except where the failure to be so qualified
would not have a Material Adverse Effect, and no Proceeding has been instituted
in any such jurisdiction revoking, limiting or curtailing or seeking to revoke,
limit or curtail such power and authority or qualification.

3.1.2                 Authorization;
Enforcement. Issuer has the requisite corporate power and authority to
enter into and perform all of the Transaction Documents. The execution, delivery and performance of the Transaction Documents
by Issuer have been duly authorized by all necessary corporate action by Issuer
and no further consent or action is required by Issuer, its board of directors
or its shareholders in connection therewith, other than actions necessary to
satisfy Issuer’s post-Closing obligations under the Transaction Documents,
which actions could not be authorized in advance. Each Transaction Document has
been duly executed by Issuer and, when delivered in accordance with the terms
hereof and thereof, will constitute the valid and 

 6
 

legally
binding obligation of Issuer enforceable against Issuer in accordance with its
terms, except (a) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (b) as
limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies, and (c) insofar as indemnification and
contribution provisions may be limited by applicable law.

3.1.3                 No Conflicts.
The execution, delivery and performance of the Transaction Documents by Issuer
do not and will not: (a) conflict with or violate Issuer’s articles of incorporation or bylaws, (b) conflict with,
constitute a default (or an event that with notice or lapse of time or both
would become a default) under, result in the creation of any Lien on any asset
of Issuer pursuant to, or give others any right to terminate, amend, accelerate
or cancel (with or without notice, lapse of time or both), any agreement,
credit facility, debt or other instrument (evidencing a Issuer debt or
otherwise) or other understanding to which Issuer is a party or by which any
asset of Issuer is bound or affected, or (c) subject to any Required Actions
(as such term is hereinafter defined), conflict with or result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which Issuer is subject
(including U.S. federal and state securities laws and regulations), or by which
any asset of Issuer is bound or affected, except, in the case of each of clauses
(b) and (c), such as could not have or reasonably be expected to result in a
Material Adverse Effect.  There is
no Proceeding pending or, to the knowledge of Issuer, threatened against or
affecting Issuer or its assets before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local
or foreign) which adversely affects or challenges the legality, validity or
enforceability of any Transaction Document.

3.1.4                 Required
Actions. Except for (a) filings
required pursuant to the Registration Rights Agreement, (b) any filings
required under applicable securities laws, and (c) those notices and actions
required to be made by Issuer in respect of preemptive rights and anti-dilution
rights under the 2006 Agreement (collectively, the “Required Actions”), Issuer is not required to take any
action or obtain any consent, waiver, authorization or order of, give any
notice to, or make any filing or registration with, any court or other federal,
state, local or other governmental authority or other Person in connection with its execution, delivery
and performance of the Transaction Documents.

3.1.5                 Issuance of
the Securities. The Notes, Warrants and shares of Common Stock issuable
upon conversion of the Notes and/or exercise of the Warrants (collectively, the
“Registrable Securities”) are duly
authorized and, when issued and paid for in accordance with this Agreement, the
Notes and the Warrants, will be duly and validly issued, fully paid and
non-assessable, free and clear of all liens, claims and encumbrances imposed by
Issuer other than those provided for in the Transaction Documents, and will be issued in compliance with an exemption from
registration under all applicable U.S. federal and state securities laws.
Issuer has reserved from its duly authorized Common Stock such number of shares
as required in connection with the issuance of the Registrable Securities.

3.1.6                 Capitalization.
Schedule 3.1.6 sets forth
the capitalization of Issuer as of the date hereof, before giving effect to the
issuance of the Securities pursuant hereto,

 7
 

including the amount and kind of authorized shares, the number of each
kind of shares issued and outstanding, the number of shares issued and held as
treasury stock, and the number of shares reserved for issuance pursuant to
Issuer’s stock option plans and all outstanding securities convertible into or
exchangeable for any shares of Issuer, including a description of the relevant
options, convertible securities and exchangeable securities.  Except for the preemptive rights and
anti-dilution rights of the purchasers under the 2006 Agreement as more fully
described in Schedule 3.1.6,
no Person has any right of first refusal, preemptive right, right of
participation, anti-dilution right or any similar right to participate in, or
that is triggered by, the transactions contemplated by the Transaction
Documents.

3.1.7                 SEC Reports.  Issuer is currently required to file
information, documents and reports with the SEC pursuant to Section 13(a) of
the Exchange Act, and Issuer has filed all such reports and schedules, forms,
statements and other documents required to be filed by Issuer under the
Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) thereof, for the year preceding the date hereof (or such shorter period
as Issuer was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension.  As of their respective dates of filing with
the SEC, the SEC Reports, together with any amendments thereto, complied in all
material respects with all applicable requirements of the Securities Act and
the Exchange Act.  No SEC Report, when
filed, contained any materially untrue statement of a material fact or omitted
to state 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 materially misleading. 
There is nothing that would be deemed to be of a materially negative
nature to a potential investor in the Common Stock that has not been disclosed
in the SEC Reports.

3.1.8                 Financial
Statements.  The financial
statements of Issuer included in the SEC Reports comply in all material
respects with applicable accounting requirements and the SEC’s rules and
regulations with respect thereto as in effect at the time of filing.  Such financial statements have been prepared
in accordance with U.S. generally accepted accounting principles consistently
applied, except as may be otherwise specified therein or the notes thereto and
except that un-audited financial statements may not contain all required notes
and are subject to routine year-end adjustments that are not material in the
aggregate.  Such financial statements
fairly present in all material respects the financial position of Issuer as of
and for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of un-audited statements, to normal,
year-end audit adjustments as referred to above.

3.1.9                 Brokerage or
Finder’s Fees.  Other than as set
forth on Schedule 3.1.9, no
brokerage, success or finder’s fee or commission is or will be payable by
Issuer to any broker, financial adviser or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents.

3.1.10          Private Placement.
Assuming the accuracy of each Purchaser’s representations and warranties set
forth in Section 3.2, no registration under the Securities Act is required for
the offer and sale of the Securities by Issuer to Purchaser as contemplated
hereby.

 8
 

3.1.11          Investment Company.
Issuer is not, and is not an Affiliate of, and immediately after receipt of
payment for the Securities will not be or be an Affiliate of, an “investment
company” within the meaning of the Investment Issuer Act of 1940, as
amended.  Issuer will conduct its
business in a manner so that it will not become subject to the Investment
Company Act of 1940, as amended.

3.2                             Representations,
Warranties and Covenants of Purchasers. 
Each Purchaser represents, warrants and covenants to Issuer, with
respect to itself only and not the other Purchasers, as follows:

3.2.1                 Organization;
Authority. Such Purchaser is an entity duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization
with the requisite power and authority to enter into and perform the
Transaction Documents. The execution, delivery and performance of the Transaction
Documents by such Purchaser have been duly authorized by all necessary action
by such Purchaser. Each Transaction Document to which such Purchaser is a party
has been duly executed by it and, when delivered in accordance with the terms
hereof and thereof, will constitute the valid and legally binding obligation of
such Purchaser, enforceable against it in accordance with its terms, except (a)
as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (b) as limited by laws
relating to the availability of specific performance, injunctive relief or
other equitable remedies and (c) insofar as indemnification and contribution
provisions may be limited by applicable law.

3.2.2                 Own Account.
Such Purchaser understands that the Securities are “restricted securities” and
have not been registered under the Securities Act or any applicable state or
foreign securities law.  Such Purchaser
is acquiring the Securities as principal for its own account and not with a
view to or for distributing or reselling such Securities or any part thereof,
has no present intention of distributing any such Securities in violation of
the Securities Act, any applicable state securities law and/or any foreign laws
and has no direct or indirect arrangement or understandings with any other
Person to distribute or regarding the distribution of such Securities (this
representation and warranty not limiting such Purchaser’s right to sell the
Securities in compliance with applicable U.S. federal and state and foreign
securities laws) in violation of the Securities Act or any applicable state
securities law. Such Purchaser is acquiring the Securities hereunder in the
ordinary course of its business.

3.2.3                 Purchaser
Status. At the time such Purchaser was offered the Securities and as of
the date hereof, either (a) it was and is an “accredited investor” as that term
is defined under Regulation D, or (b) it was not and is not a “U.S. Person” as
that term is defined in Rule 902(o) of Regulation S and the sale of the
Securities constituted an “offshore transaction” as that term is defined in
Rule 902(i) of Regulation S, and that all statements and answers provided to
Issuer by such Purchaser in its Investor Questionnaire are true and accurate as
of the date given and as of the date of the relevant Closing.

3.2.4                 Experience of
Purchaser. Such Purchaser has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating
the merits and risks of the investment in the Securities, and has so evaluated
the merits and risks 

 9
 

of such investment. Such Purchaser is able to bear the economic risk of
an investment in the Securities and, at the present time, is able to afford a
complete loss of such investment.

3.2.5                 General
Solicitation. Such Purchaser is not purchasing the Securities as a
result of any advertisement, article, notice or other communication regarding
the Securities published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

3.2.6                 Available
Information.  Such Purchaser
acknowledges that, prior to executing this Agreement, it has been given an
opportunity to ask questions of and receive answers from, Issuer concerning the
terms and conditions of the offering of the Securities and to obtain any other
information that it has requested with respect to Issuer’s operations and its
proposed investment in Issuer in order to evaluate the investment and verify
the accuracy of all information furnished to it regarding Issuer; and access to
all of the SEC Reports that have been filed on Issuer’s behalf with the SEC.

4.                                      ISSUER
COVENANTS

4.1                             Use
of Proceeds.  Issuer may use the
proceeds from the issuance of the Notes and Warrants for working capital
purposes, including the payment of current liabilities existing at Closing,
subject to the following limitations: 

4.1.1                 Issuer will
not use such proceeds to repay (a) loans made by officers or related parties
(which excludes those, but only those accrued payables of fees, compensation
and expense reimbursements set forth on Schedule
4.1.1), and (b) unless otherwise approved by the Collateral
Agent, Issuer’s  indebtedness existing on
the date of this Agreement and as of the Closing Date to the Estate of H. Gerry
Guerin and Mr. Larry Rodammer, except for regularly scheduled quarterly
payments set forth on Schedule 4.1.1;
and

4.1.2                 Issuer will
reimburse Adam Cabibi $9,295 for legal fees incurred in connection with a
consent solicitation undertaken in 2006 on behalf of Issuer.

4.2                               Affirmative
Covenants.

4.2.1                 Board Matters.

(a)                                 As
soon as practical, Issuer will expand the size of its board of directors to 5
directors, and will add suitably qualified individuals as necessary to fill any
vacant director seats.  In filling any
such vacancies, Issuer will entertain in good faith all suitably qualified
individuals recommended by Purchasers, both for interim vacancies to be filled
by Issuer’s board of directors and for vacancies on the slate of nominees to be
presented to the shareholders for a vote at the annual meeting of
shareholders.  For purposes of this
Section 4.2.1, a suitably qualified director candidate will be someone (1) with
qualifications and strengths that balance and complement the qualifications and
strengths of other board members, (2) who possesses independence, knowledge,
judgment, character, leadership skills, requisite education and relevant
experience, and (3) who has a high moral standing and is not currently and has
not previously been the subject of any Proceedings, whether or not convicted of
any wrongdoing, that call into question such person’s character, judgment or
integrity. Until such time as all Notes 

 10
 

have been either fully
repaid or fully converted into Common Stock, Issuer will maintain a board
comprised of 5 directors and will use all reasonable efforts to keep all board
positions continuously filled with suitably qualified individuals, and to keep
vacancies to a minimum, so as to provide Issuer with adequate corporate
governance resources.  During such
period, Issuer will also procure and maintain directors and officers liability
insurance with customary liability limits and coverage terms.

(b)                                Notwithstanding
the foregoing, so long as any principal or interest on any of the Notes is
outstanding, if the foregoing process of recommending candidates for Issuer’s
board of directors does not result in a candidate recommended by the holders of
a majority of the outstanding principal amount of the Notes serving on Issuer’s
board of directors at any time, then during such time such holders shall have
the right to appoint a non-voting representative (the “Observer”)
to attend meetings of the board of directors of Issuer, to change the
representative so appointed at any time and, upon the resignation of such
representative for any reason, to reappoint such a representative.  Issuer shall provide the Observer with a copy
of any materials to be distributed or discussed at such meetings at the same
time as provided to members of the Board. 
Nothing herein shall require Issuer to change the place or time of any
meeting for which notice has been provided by Issuer to the Observer
simultaneously with that provided to Issuer’s directors.  Observer will be expected to conduct himself
or herself in accordance with those reasonable rules of order applicable to
members of Issuer’s board of directors and not otherwise to interfere with or
disrupt the conduct of business by Issuer’s board of directors, and will be
subject to dismissal (and subsequently replacement by his or her appointers)
for failure to comply therewith.  Upon
presentation of reasonable documentation therefore, Issuer shall promptly
reimburse the Observer for all reasonable and necessary out of pocket expenses
actually incurred by the Observer in attending any meeting of the board of
directors, but Observer will not otherwise be compensated for attending and observing
meetings of Issuer’s board of directors. 
As a condition precedent to attending meetings of Issuer’s board of
directors and receiving materials distributed or discussed at such meetings,
Observer must execute and deliver a non-disclosure agreement in favor of Issuer
pursuant to which Observer undertakes contractual duties respecting his or her
use and disclosure of all confidential and proprietary information of Issuer
contained therein of similar scope to those duties by which members of  Issuer’s board of directors are bound.

4.2.2                 Issuer will
maintain a reserve from its duly authorized shares of Common Stock for issuance
pursuant to the Transaction Documents in such amount as may be required to
fulfill its obligations in full under the Transaction Documents.

4.2.3                 Issuer will
timely file with the SEC such current reports on Form 8-K as required by the
Exchange Act, including all required exhibits, that describe the terms of the
transactions contemplated by the Transaction Documents. Any public announcement
or publicity regarding the Transaction Documents and the transaction (other
than SEC Reports) will be issued, if at all, by Issuer at such time and in such
manner as Issuer determines.

4.2.4                 After the final Closing, Issuer will
within 30 days issue to the Purchasers participating in any of the Closings, on
a pro rata basis based on their Subscription Price paid, warrants to purchase a
total of 7,333,333 shares of Common Stock on the same terms and conditions as
in the warrants issued pursuant to the 2006 Agreement, except that the exercise
price per share will be $0.30.  At the
same time, Issuer will adjust the exercise price under the 

 11
 

warrants issued to the
placement agents in connection with the 2006 Agreement from $0.60 to $0.30 per
share, and will double the number of shares of Common Stock purchasable
thereunder.

4.3                             Negative
Covenants.  Until each Note has
been fully repaid and/or fully converted into Common Stock, Issuer covenants
with the holder thereof that Issuer will not:

4.3.1                 without the
prior approval of the Collateral Agent (not to be unreasonably withheld or
delayed), create, incur, assume or guarantee any contractual or other
non-cancelable commitment requiring Issuer to make cash payments, individually
or in the aggregate with respect to the same obligee, of $100,000 or more
(other than success fees or other similar contingent commitments relating to
future financings by the Company, provided such payments in excess of $100,000
are due and payable only out of the proceeds of the funds raised);

4.3.2                 without the
prior written consent of the Collateral Agent, create any security interest or
other lien for funded indebtedness on any asset subject to the Security
Agreement other than (a) security interests and liens that are subordinate to
those created under the Security Agreement on terms reasonably acceptable to
the Collateral Agent (such approval not to be unreasonably withheld or
delayed), (b) purchase money security interests incurred in connection with the
acquisition of assets in a transaction otherwise not prohibited hereunder or
(c) the sale and issuance of additional Notes and Warrants at subsequent
Closings pursuant to this Agreement; or

4.3.3                 redeem or
re-purchase for cash any Common Stock or other equity security or security (other
than convertible debt) exercisable to purchase any equity security of Issuer,
or pay or declare any cash dividend or other cash distribution in respect
thereof.

4.4                             “No
Regrets” Option.  If at any time
prior to the Maturity Date, Issuer issues Common Stock (other than pursuant to
the exercise of rights by holders of securities convertible into or exercisable
to purchase Common Stock that are already outstanding on the date hereof), or
issues securities convertible into or exercisable to purchase Common Stock, in
either case at a price per share of Common Stock to be issued that is less than
$0.10 per share and for a cumulative issuance price of at least $500,000, then
Issuer will, within 5 days after the date of such issuance, provide Purchasers
with written notice of the terms and conditions of such issuance.  Each Purchaser will then have an additional
15 days after receipt of such notice to elect, in its sole discretion, which
may be exercised by giving written notice of such election to Issuer, to convert
all but not less than all of its investment in the Notes and Warrants hereunder
into an investment in such other securities on identical terms and conditions
as the other investors therein (except as to the amount invested and the
closing date).  If any Purchaser so
elects, then such Purchaser and Issuer will within 5 days thereafter execute
and deliver all documents, and take all such other actions, as may be necessary
or appropriate to give effect to such election.

5.                                      TRANSFER
RESTRICTIONS

5.1                             Securities
Law Compliance.  Each Purchaser
acknowledges that the Securities may only be disposed of in compliance with
applicable U.S. federal and state securities laws and 

 12
 

foreign laws.  In connection with
any transfer of the Securities other than (a) pursuant to an effective
registration statement or SEC Rule 144, (b) to Issuer, or (c) to an Affiliate
of a Purchaser, Issuer may require the transferor thereof to provide to Issuer
an opinion of counsel selected by the transferor and reasonably acceptable to Issuer,
the form and substance of which opinion will be reasonably satisfactory to
Issuer, to the effect that such transfer does not require registration of such
transferred Securities under the Securities Act.  In the case of (c) above, as a condition of transfer,
any such transferee will agree in writing to be bound by the terms of this
Agreement.

5.2                             Legend.  So long as is required by applicable U.S.
federal and state and/or foreign securities laws, all documents evidencing any
of the Securities must contain the following legend:

NEITHER THIS SECURITY NOR ANY SECURITIES INTO
WHICH THIS SECURITY IS EXERCISABLE HAS BEEN REGISTERED WITH THE U.S. SECURITIES
AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY U.S. STATE OR OTHER
JURISDICTION OR ANY EXCHANGE OR SELF-REGULATORY ORGANIZATION, IN RELIANCE UPON
EXEMPTIONS FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED,
AND SUCH OTHER LAWS AND REQUIREMENTS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR LISTING OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
SUCH REGISTRATION AND/OR LISTING REQUIREMENTS AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH WILL BE
REASONABLY ACCEPTABLE TO THE COMPANY.

5.3                             Acknowledgement.
Each Purchaser acknowledges that the removal of the restrictive legend from
certificates representing Securities as set forth in Section 5.2 is predicated
upon Issuer’s reliance that Purchaser will sell any Securities pursuant either
to applicable registration and/or listing requirements, including any
applicable prospectus delivery requirements, or an exemption therefrom, and
that if Securities are sold pursuant to a registration statement or listing,
they will be sold in compliance with the plan of distribution set forth therein
and upon compliance with the prospectus delivery requirement.

6.                                     COLLATERAL
AGENT

6.1                             Appointment
of Collateral Agent.  Each
Purchaser hereby appoints and designates Collateral Agent as its agent to act
as herein specified.  Each Purchaser
irrevocably authorizes Collateral Agent to take such action on its behalf under
the provisions of the Security Agreement, the Collateral Assignments and the
other Transaction Documents and to exercise such powers and to perform such
duties hereunder and thereunder as are specifically delegated to or required of
Collateral Agent by the terms hereof and thereof and such other powers as are
reasonably incidental thereto. 
Collateral Agent may perform any of its duties hereunder by or through
its agents or employees, and may appoint sub-agents to perform any or all of
its duties as Collateral Agent hereunder without the prior consent of Issuer
and Purchasers.

 13
 

6.2                             Nature of Duties of Collateral Agent.  Collateral Agent will have no duties or
responsibilities, except those expressly set forth in the Transaction
Documents.  Neither Collateral Agent nor
any of its officers, directors, employees or agents will be liable for any
action taken or omitted by it as such hereunder or in connection herewith,
unless caused by or resulting from its or their gross negligence, willful
misconduct or fraudulent act.  The duties
of Collateral Agent will be mechanical and ministerial in nature.  Collateral Agent will not have, by reason of
this Agreement, a fiduciary relationship in respect of any Purchaser. Nothing
in this Agreement, express or implied, is intended to or will be so construed
as to impose upon Collateral Agent any obligations in respect of this Agreement
and the Security Agreement, except as expressly set forth herein and therein.

6.3                             Lack
of Reliance on Collateral Agent.

6.3.1                 Independently and without reliance on
Collateral Agent, each Purchaser, to the extent it deems appropriate, has made
and will continue to make (i) its own independent investigation of the
financial condition and affairs of Issuer in connection with the taking or not
taking of any action in connection herewith and with the other Transaction
Documents, and (ii) its own appraisal of the creditworthiness of Issuer, and,
except as expressly provided in this Agreement and the Security Agreement,
Collateral Agent will have no duty or responsibility, either initially or on a
continuing basis, to provide any Purchaser with any credit or other information
with respect thereto, whether coming into its possession before or after the
delivery of the Notes and Warrants.

6.3.2                 Collateral Agent will not be
responsible to any Purchaser for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other
writing delivered in connection herewith or in connection with the Security
Agreement or Collateral Assignments or for the execution, effectiveness,
genuineness, validity, enforceability, collectability, priority or sufficiency
of this Agreement or the other Transaction Documents, or the financial
condition of Issuer, or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or the other Transaction Documents, or the financial condition of
Issuer, or the existence or possible existence of any or Event of Default or
other breach or default by Issuer.

6.4                             Certain
Rights of Collateral Agent.  If
Collateral Agent requests instructions from Purchasers with respect to any act
or action (including forbearance from taking action) in connection with this
Agreement or the Security Agreement, then Collateral Agent will be entitled to
act or refrain from such act or taking such action unless and until Collateral
Agent has received instructions from Purchasers, and Collateral Agent will not
incur liability to any Person by reason of so refraining.  Without limiting the foregoing, no Purchaser
will have any right of action whatsoever against Collateral Agent as a result
of Collateral Agent’s acting or refraining from acting hereunder in accordance
with the instructions of Purchasers

6.5                             Reliance
by Collateral Agent.  Collateral
Agent will be entitled to rely, and will be fully protected in relying, upon
any note, writing, resolution, notice, statement, certificate, email, fax,
telex, teletype, message, cablegram, radiogram, order or other documentary,
teletransmission or telephone message believed by it to be genuine and correct
and to have been signed, sent or made by the proper Person.  Collateral Agent may consult with legal
counsel 

 14
 

(including Issuer’s counsel), independent public accountants and other
experts selected by it and will not be liable for any action taken or omitted
by it in good faith in accordance with the advice of such counsel, accountants
or experts.

6.6                             Collateral
Agent in Its Individual Capacity. 
If Collateral Agent is also a Purchaser, then with respect to its Note
and Warrant, Collateral Agent will have the same rights and powers hereunder as
any other Purchaser and may exercise the same as though it were not performing
the duties specified herein, and the terms “Purchaser” and “Purchasers” or any
similar terms will, unless the context clearly otherwise indicates, include
Collateral Agent in its individual capacity. 
Collateral Agent may accept deposits from, lend money to, and generally
engage in any kind of securities purchase, trust, financial advisory or other
business with Issuer or any subsidiary as if it were not performing the duties
specified herein, and may accept fees and other consideration from Issuer or
any subsidiary for such services without having to account for the same to
Purchasers.

6.7                             Successor
Collateral Agent.

6.7.1                 Collateral Agent
may resign at any time by giving written notice thereof to Purchasers and
Issuer, and Collateral Agent may be removed at any time with or without cause
by the decision of Purchasers holding a majority in face amount of the Notes.  Upon any such resignation or removal,
Purchasers will have the right, with the prior written consent of Issuer, which
consent will not be unreasonably withheld or delayed, to appoint a successor
agent to serve as Collateral Agent hereunder and under the Security Agreement.  If no successor Collateral Agent has been so
appointed by the Purchasers and has accepted such appointment within 30 days
after retiring Collateral Agent’s giving of notice of resignation or Purchasers’
removal of retiring Collateral Agent, then, upon the prior written consent of
Issuer, which consent will not be unreasonably withheld or delayed, retiring
Collateral Agent may, on behalf of Purchasers, appoint a successor Collateral
Agent, which must be acceptable to the holders of a majority of the outstanding
indebtedness under the Notes.

6.7.2                 Upon the acceptance by a successor
person meeting such qualifications of any appointment as Collateral Agent
hereunder, such successor will thereupon succeed to and become vested with all
the rights, powers, privileges and duties of retiring Collateral Agent, and
retiring Collateral Agent will be discharged from its duties and obligations
under this Agreement.  After any retiring
Collateral Agent’s resignation or removal hereunder as Collateral Agent, the
provisions hereof will survive as to any actions taken or omitted by it while
it was Collateral Agent under this Agreement.

6.8                             Transaction
Documents.

6.8.1                 Each Purchaser hereby authorizes
Collateral Agent to enter into each of the Transaction Documents in the respective
forms of the Exhibits hereto and to take all action contemplated thereby.  All rights and remedies under the Transaction
Documents may be exercised by Collateral Agent for the benefit of Purchasers
upon the terms hereof and thereof.

6.8.2                 Whenever under any provision of any
Transaction Document Collateral Agent has the right to grant or withhold any
consent, exercise any remedy, make any 

 15
 

determination or direct any action by Issuer under such Transaction
Document, Collateral Agent will act in respect of such consent, exercise of
remedies, determination or action, as the case may be, with the consent of and
at the direction of Purchasers holding Notes representing in the aggregate a
majority of the outstanding principal amount of the Notes; however, no such
consent of the Purchasers will be required with respect to any consent,
determination or other matter that is ministerial or administrative in
nature.  Whenever any consent of or
direction from the Purchasers is required, Collateral Agent will send to
Purchasers a notice setting forth a description in reasonable detail of the
matter as to which consent or direction is requested and Collateral Agent’s
proposed course of action with respect thereto. 
If Collateral Agent has not received a response from any Purchaser
within three business days after giving such notice, then such Purchaser will
be deemed to have agreed to the course of action proposed by Collateral Agent.

6.9                             Indemnification
of Collateral Agent.  Purchasers
will indemnify and hold Collateral Agent harmless from and against any and all
claims, liabilities, losses, costs and expenses (including, without limitation,
reasonable attorneys’ fees and expenses actually incurred) that Collateral
Agent may incur as a consequence, directly or indirectly, of its services as
Collateral Agent for Purchasers, other than such items arising out of
Collateral Agent’s gross negligence, willful misconduct or fraudulent act.  Any amounts due Collateral Agent from
Purchasers pursuant to this Section 6.9 will be paid to Collateral Agent by
Purchasers promptly upon request therefor in accordance with their pro rata
ownership of the face amount of the Notes.

7.                                     MISCELLANEOUS

7.1                           Fees
and Expenses.  Except as
otherwise set forth in the Transaction Documents and any engagement letter or
agreement between Issuer and any placement agent, each party will pay its own
fees and expenses incident to the negotiation, preparation, execution and
delivery of this Agreement.

7.2                             Entire
Agreement.  The Transaction
Documents, together with the exhibits and schedules thereto and the engagement
letters or agreements between Issuer and placement agents, contain the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior and contemporaneous agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.

7.3                             Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder will be in writing
and will be deemed given and effective on the earliest of (a) the date of
transmission if such notice or communication is delivered by fax prior to 5:30
p.m. (Atlanta time) on a business day, (b) the next business day after the date
of transmission if such notice or communication is delivered via fax on a day
that is not a business day or later than 5:30 p.m. (Atlanta time) on a business
day, (c) the 2nd business day after the date of mailing if sent
by U.S. nationally recognized overnight courier service, or (d) upon actual
receipt by the party to whom such notice is required to be given. The facsimile
number and address for such notices and communications are as set forth on the
signature pages hereto or as otherwise notified by any party to the others in
accordance herewith from time to time.

 16
 

7.4                             Amendments;
Waivers.  No waiver or any right
under this Agreement will be effective unless set forth in a writing signed by
the party waiving such right. No waiver of any default under this Agreement
will be deemed to be a continuing waiver or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor will
any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right.

7.5                             Headings.  The headings herein are for convenience only,
do not constitute a part of this Agreement and do not limit, expand or modify
the meaning hereof.

7.6                             Successors
and Assigns.  This Agreement
binds and benefits the parties and their successors and permitted assigns.  Issuer may not transfer or assign its rights
or obligations hereunder, but each Purchaser, subject to Section 5.1, may
assign its rights and obligations under this Agreement to any Person.

7.7                             No
Third-Party Beneficiaries.  This
Agreement is intended for the benefit of the parties hereto and their
respective successors and permitted assigns and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person.

7.8                             Governing
Law; Forum; Jury Trial Waiver. 
THIS AGREEMENT IS GOVERNED BY GEORGIA LAW.  FEDERAL AND STATE COURTS WITHIN THE STATE OF
GEORGIA WILL HAVE JURISDICTION OVER ALL DISPUTES BETWEEN AND AMONG THE PARTIES
HERETO ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE AGREEMENTS,
INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY. THE PARTIES HEREBY CONSENT TO,
AND WAIVE ANY OBJECTIONS TO, PERSONAL JURISDICTION AND VENUE IN SUCH COURTS OR
THAT ANY LITIGATION COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT
FORUM. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
PROCEEDING (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THE TRANSACTION DOCUMENTS.

7.9                             Survival.  The representations, warranties and covenants
contained herein will survive the Closing and the delivery of the Securities.

7.10                      Execution.  The parties contemplate that each Purchaser
will sign a separate signature page to this Agreement and deliver the same to
Issuer as part of its subscription documents, and which signature pages will
collectively be appended to a single copy of this Agreement by Issuer for all
Purchasers whose investor questionnaires are approved and who otherwise become
subscribers for a Note and Warrant, and when so appended will collectively
constitute a single original.  If
desired, the parties may execute additional counterparts of this Agreement,
each of which when executed will be an original, and all such counterparts will
together constitute one and the same agreement. 
This Agreement will become effective with respect to each Purchaser when
at least one counterpart has been executed and delivered by such Purchaser,
Issuer and Collateral Agent, and counter-signed by Issuer on the original or a
counterpart of the signature page for such Purchaser. If any signature is
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format
data file, then such signature will create a 

 17
 

valid and
binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original.

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

7.12                      Replacement
of Securities.  If any
certificate or instrument evidencing any Securities is mutilated, lost, stolen
or destroyed, Issuer will issue or cause to be issued in exchange and
substitution for and upon cancellation thereof (in the case of mutilation), or
in lieu of and substitution therefor, a new certificate or instrument, but only
upon receipt of evidence reasonably satisfactory to Issuer of such loss, theft
or destruction and upon provision of an indemnity reasonably acceptable to
Issuer. The applicant for a new certificate or instrument under such
circumstances will also pay any reasonable third-party costs (including
customary indemnity) associated with the issuance of such replacement
Securities.

7.13                      Remedies.  In addition to being entitled to exercise all
rights provided herein or granted by law, including recovery of damages, each
Purchaser and Issuer will be entitled to specific performance under the
Transaction Documents. The parties acknowledge that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations contained in the Transaction Documents and hereby waive and
covenant not to assert in any Proceeding for specific performance of any such
obligation the defense that a remedy at law would be adequate.

7.14                      Usury.
Notwithstanding any provision to the contrary contained in any Transaction
Document, the total liability of Issuer under the Transaction Documents for
payments in the nature of interest will not exceed the maximum lawful rate,
and, without limiting the foregoing, in no event will any rate of interest or
default interest, or both of them, when aggregated with any other sums in the
nature of interest that Issuer may be obligated to pay under the Transaction
Documents exceed such maximum rate. If the maximum contract rate of interest
allowed by law and applicable to the Transaction Documents is increased or
decreased by statute or any official governmental action subsequent to the date
hereof, then the new maximum contract rate of interest allowed by law will be
the maximum rate applicable to the Transaction Documents from the effective
date forward, unless such application is precluded by applicable law. If under
any circumstances whatsoever, interest in excess of the maximum rate is paid by
Issuer to any Purchaser with respect to indebtedness evidenced by the
Transaction Documents, then such excess will be applied by such Purchaser to
the unpaid principal balance of any such indebtedness or be refunded to Issuer,
the manner of handling such excess to be at such Purchaser’s election.

 18
 

[counter-part
signature page for Securities Purchase Agreement]

SIGNED AND DELIVERED
as of the date first indicated above.

VUBOTICS, INC.

as Issuer

	
  By:

  	
   

  	
  /s/ Philip E. Lundquist

  	
   

  
	
  Name: Philip E. Lundquist

  
	
  Title: Chief Executive Officer

  
	
   

  
	
   

  
	
  /s/ Jay Weil

  	
   

  
	
  as Collateral Agent

  
					

 

and as executed, or to be executed, by each Purchaser hereunder in its
respective capacity by its authorized signatory.

 19

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