Document:

EXHIBIT
      10.01

     

    THIRTEENTH
      AMENDMENT TO CREDIT AND SECURITY AGREEMENT

     

    This
      Amendment, dated as of August 6, 2007, is made by and among SANZ INC., formerly
      known as Storage Area Networks, Inc., a Colorado corporation (“SANZ” or a
“Borrower”), SOLUNET STORAGE, INC., a Delaware corporation (“Solunet” or a
“Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”), acting
      through its WELLS FARGO BUSINESS CREDIT operating division.

     

    Recitals

     

    The
      Borrowers and the Lender are parties to a Credit and Security Agreement dated
      as
      of May 31, 2001, as amended by (i) the First Amendment to Credit and Security
      Agreement and Waiver of Defaults dated as of January 17, 2002; (ii) the Second
      Amendment to Credit and Security Agreement dated as of July 1, 2002; (iii)
      the
      Third Amendment to Credit and Security Agreement dated as of August 15, 2002;
      (iv) the Fourth Amendment to Credit and Security Agreement and Waiver of
      Defaults dated as of March 31, 2003; (v) the Fifth Amendment to Credit and
      Security Agreement and Waiver of Defaults dated as of September 22, 2003; (vi)
      the Sixth Amendment to Credit and Security Agreement dated as of February 12,
      2004; (vii) the Seventh Amendment to Credit and Security Agreement and Waiver
      of
      Defaults dated as of September 3, 2004; (viii) the Eighth Amendment to Credit
      and Security Agreement and Waiver of Defaults dated as of October 29, 2004;
      (ix)
      the Ninth Amendment to Credit and Security Agreement and Waiver of Defaults
      dated as of March 29, 2005; (x) the Tenth Amendment to Credit and Security
      Agreement and Waiver of Defaults dated as of November 11, 2005; (xi) the
      Eleventh Amendment to Credit and Security Agreement and Waiver of Defaults
      dated
      as of April 17, 2006; and (xii) the Twelfth Amendment to Credit and Security
      Agreement dated as of March 29, 2007 (as so amended, the “Credit Agreement”).
      Capitalized terms used in these recitals have the meanings given to them in
      the
      Credit Agreement unless otherwise specified.

     

    The
      Borrowers have requested that certain amendments be made to the Credit
      Agreement, which the Lender is willing to make pursuant to the terms and
      conditions set forth herein.

     

    NOW,
      THEREFORE, in consideration of the premises and of the mutual covenants and
      agreements herein contained, it is agreed as follows:

     

    1.
      Defined
      Terms.
      Capitalized terms used in this Amendment which are defined in the Credit
      Agreement shall have the same meanings as defined therein, unless otherwise
      defined herein.

     

    2.
      Section
      8.1.
      Section
      8.1 (q) of the Credit Agreement is amended and restated in its entirety to
      read
      as follows:

     

    “(q) Todd
      A.
      Oseth shall cease to be the President and Chief Executive Officer of the
      Borrower or David Rosenthal shall cease to be the Chief Financial Officer of
      the
      Borrower, and the Borrower shall fail to employ a replacement acceptable to
      the
      Lender, which acceptance shall not be unreasonably withheld.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.
      Consent
      to the Sale of the EarthWhere Division; Covenant to Identify Post-Closing
      Accounts.

     

    Pursuant
      to Section 7.6 of the Credit Agreement, Sale
      or Transfer of Assets; Suspension of Business Operations,
      the
      Borrowers have requested the Lender’s consent for the sale of the EarthWhere
      division, which is SANZ’s division that is responsible for the development and
      marketing of its EarthWhereTM software. The net sales price is approximately
      $600,000 and will include the sale of the following, among other things: 1)
      EarthWhereTM trademark, and 2) computer equipment exclusively used by this
      division. The sale will result in the termination of the 25 employees that
      work
      exclusively in this division. Closing of the sale is targeted for August 6,
      2007. Net proceeds from the sale will be deposited into the collateral account
      and pay down the line of credit.

     

    Borrowers
      covenant and agree that upon the sale of the EarthWhere division, unpaid
      Accounts of the Borrowers that arise after the closing of the sale of the
      EarthWhere division that are required to be paid to the purchaser, if any,
      pursuant to an asset purchase agreement or otherwise, will be clearly identified
      to the Lender as such, and Borrowers agree that such Accounts will be deemed
      ineligible Accounts.

     

    Upon
      the
      terms and subject to the conditions set forth in this Amendment, the Lender
      hereby consents to the sale of the EarthWhere division.

     

    4.
      No
      Other Changes.
      Except
      as explicitly amended by this Amendment, all of the terms and conditions of
      the
      Credit Agreement shall remain in full force and effect and shall apply to any
      advance thereunder.

     

    5.
      Accommodation
      Fee.
      The
      Borrowers shall pay the Lender as of the date hereof a fully earned,
      non-refundable fee in the amount of $7,500 in consideration of the Lender’s
      execution and delivery of this Amendment.

     

    6.
      Conditions
      Precedent.
      This
      Amendment shall be effective when the Lender shall have received an executed
      original hereof, together with each of the following, each in substance and
      form
      acceptable to the Lender in its sole discretion:

     

    (a)
      The
      Acknowledgment and Agreement of Guarantor and the Acknowledgment and Agreement
      of Subordinated Creditor set forth at the end of this Amendment, duly executed
      by the Guarantor and the Subordinated Creditor.

     

    (b)
      Payment
      of the fee described in Paragraph 5.

     

    (c)
      Deposit
      into the Collateral Account with the Lender the net proceeds of the sale of
      the
      EarthWhere division, with one half of the net proceeds to be deposited upon
      the
      closing of the EarthWhere division, and the remaining amount to be deposited
      when received from the purchaser.

     

    
      
        
        

      

      
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    (d)
      Such
      other matters as the Lender may require.

     

    7.
      Representations
      and Warranties.
      Each
      Borrower hereby represents and warrants to the Lender as follows:

     

    (a)
      Each
      Borrower has all requisite corporate power and authority to execute this
      Amendment and to perform all of its obligations hereunder, and this Amendment
      has been duly executed and delivered by each Borrower and constitutes the legal,
      valid and binding obligation of each Borrower, enforceable in accordance with
      its terms.

     

    (b)
      The
      execution, delivery and performance by each Borrower of this Amendment has
      been
      duly authorized by all necessary corporate action and does not (i) require
      any authorization, consent or approval by any governmental department,
      commission, board, bureau, agency or instrumentality, domestic or foreign,
      (ii) violate any provision of any law, rule or regulation or of any order,
      writ, injunction or decree presently in effect, having applicability to either
      Borrower, or the articles of incorporation or by-laws of either Borrower, or
      (iii) result in a breach of or constitute a default under any indenture or
      loan or credit agreement or any other agreement, lease or instrument to which
      either Borrower is a party or by which either Borrower or its properties may
      be
      bound or affected.

     

    (c)
      All
      of
      the representations and warranties contained in Article V of the Credit
      Agreement are correct on and as of the date hereof as though made on and as
      of
      such date, except to the extent that such representations and warranties relate
      solely to an earlier date.

     

    8.
      References.
      All
      references in the Credit Agreement to “this Agreement” shall be deemed to refer
      to the Credit Agreement as amended hereby; and any and all references in the
      Security Documents to the Credit Agreement shall be deemed to refer to the
      Credit Agreement as amended hereby.

     

    9.
      No
      Waiver.
      The
      execution of this Amendment and acceptance of any documents related hereto
      shall
      not be deemed to be a waiver of any Default or Event of Default under the Credit
      Agreement or breach, default or event of default under any Security Document
      or
      other document held by the Lender, whether or not known to the Lender and
      whether or not existing on the date of this Amendment.

     

    10.
      Release.
      Each
      Borrower, and the Guarantor by signing the Acknowledgment and Agreement of
      Guarantor set forth below, and the Subordinated Creditor by signing the
      Acknowledgment and Agreement of Subordinated Creditor set forth below, each
      hereby absolutely and unconditionally releases and forever discharges the
      Lender, and any and all participants, parent corporations, subsidiary
      corporations, affiliated corporations, insurers, indemnitors, successors and
      assigns thereof, together with all of the present and former directors,
      officers, agents and employees of any of the foregoing, from any and all claims,
      demands or causes of action of any kind, nature or description, whether arising
      in law or equity or upon contract or tort or under any state or federal law
      or
      otherwise, which such Borrower or such Guarantor or such Subordinated Creditor
      has had, now has or has made claim to have against any such person for or by
      reason of any act, omission, matter, cause or thing whatsoever arising from
      the
      beginning of time to and including the date of this Amendment, whether such
      claims, demands and causes of action are matured or unmatured or known or
      unknown.

     

    
      
        
        

      

      
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    11.
      Costs
      and Expenses.
      Each
      Borrower hereby reaffirms its agreement under the Credit Agreement to pay or
      reimburse the Lender on demand for all costs and expenses incurred by the Lender
      in connection with the Loan Documents, including without limitation all
      reasonable fees and disbursements of legal counsel. Without limiting the
      generality of the foregoing, each Borrower specifically agrees to pay all fees
      and disbursements of counsel to the Lender for the services performed by such
      counsel in connection with the preparation of this Amendment and the documents
      and instruments incidental hereto. Each Borrower hereby agrees that the Lender
      may, at any time or from time to time in its sole discretion and without further
      authorization by such Borrower, make a loan to such Borrower under the Credit
      Agreement, or apply the proceeds of any loan, for the purpose of paying any
      such
      fees, disbursements, costs and expenses and the fee required under Paragraph
      5
      hereof.

     

    12.
      Joint
      and Several Liability.
      All
      obligations of SANZ and Solunet under this Amendment shall be joint and several.
      All references to the term “Borrower” herein shall refer to each of them
      separately and to both or all of them jointly and each such Person shall be
      bound both severally and jointly with the other. Each of SANZ and Solunet is
      responsible for all of the Borrower obligations under this Amendment. Notices
      from the Lender to either Borrower shall constitute notice to both. Directions,
      instructions, representations, warranties or covenants made by either Borrower
      to the Lender shall be binding on both.

     

    13.
      Miscellaneous.
      This
      Amendment and the Acknowledgment and Agreement of Guarantor and the
      Acknowledgment and Agreement of Subordinated Creditor may be executed in any
      number of counterparts, each of which when so executed and delivered shall
      be
      deemed an original and all of which counterparts, taken together, shall
      constitute one and the same instrument.

     

    [The
      remainder of this page intentionally left blank.]

    
      
        
           

        

        
        

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed as of the date first written above.

     

    
      	WELLS
              FARGO BANK,
              NATIONAL ASSOCIATION, acting through its WELLS FARGO BUSINESS CREDIT
              operating division	 	 	SANZ
              INC.
	 	 	 	 	 
	By:	/s/
              Aida M. Sunglao-Canlas	 	By:	/s/
              Todd A. Oseth
	 	
              

              Name: Aida
                M. Sunglao-Canlas

              Its: Vice
                President

            	 	 	
              

              Name: Todd
                A. Oseth

              Its: President

            
	 	 	 	 	 

    

    
      	 	 	 	 	SOLUNET
              STORAGE, INC.
	 	 	 	 	 
	 	 	 	By:	/s/
              David Rosenthal
	 	
            	 	 	
              

              Name: David
                Rosenthal

              Its: Chief
                Financial Officer

            

    

    

      
        
          
             

          

          
          

        

        
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    ACKNOWLEDGMENT
      AND AGREEMENT OF GUARANTOR

     

    The
      undersigned, a guarantor of the indebtedness of SANZ Inc., formerly known as
      Storage Area Networks, Inc. (“SANZ”), to Wells Fargo Bank, National Association
      (the “Lender”), acting through its Wells Fargo Business Credit operating
      division, pursuant to a separate Guaranty dated as of May 31, 2001 (the
“Guaranty”), hereby (i) acknowledges receipt of the foregoing Amendment; (ii)
      agrees and acknowledges that the Guaranty extends to the obligations of Solunet
      to the Lender to the same extent, in the same manner and on the same terms
      as to
      SANZ; (iii) consents to the terms (including without limitation the release
      set
      forth in Paragraph 10 of the Amendment) and execution thereof;
      (iv) reaffirms its obligations to the Lender pursuant to the terms of its
      Guaranty; and (v) acknowledges that the Lender may amend, restate, extend,
      renew or otherwise modify the Credit Agreement and any indebtedness or agreement
      of the Borrower, or enter into any agreement or extend additional or other
      credit accommodations, without notifying or obtaining the consent of the
      undersigned and without impairing the liability of the undersigned under its
      Guaranty for all of the Borrower’s present and future indebtedness to the
      Lender.

     

    
      	 	 	 
	 	SAN
              HOLDINGS,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Todd
              A. Oseth
	 	
              

              Name: Todd
                A. Oseth

              Its: President

            
	 	 

    

     

    
      
        
           

        

        
        

      

      
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    ACKNOWLEDGMENT
      AND AGREEMENT OF SUBORDINATED CREDITOR

     

    The
      undersigned, a subordinated creditor of SANZ Inc., formerly known as Storage
      Area Networks, Inc. (the “Borrower”), to Wells Fargo Bank, National Association
      (the “Lender”), acting through its Wells Fargo Business Credit operating
      division, pursuant to a Subordination Agreement dated as of January 17, 2002
      (the “Subordination Agreement”), hereby (i) acknowledges receipt of the
      foregoing Amendment; (ii) consents to the terms (including without
      limitation the release set forth in Paragraph 10 of the Amendment) and execution
      thereof; (iii) reaffirms its obligations to the Lender pursuant to the
      terms of its Subordination Agreement; and (iv) acknowledges that the Lender
      may amend, restate, extend, renew or otherwise modify the Loan Documents and
      any
      indebtedness or agreement of the Borrower, or enter into any agreement or extend
      additional or other credit accommodations, without notifying or obtaining the
      consent of the undersigned and without impairing the obligations of the
      undersigned under its Subordination Agreement.

     

    
      	 	 	 
	 	SAN
              HOLDINGS,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Todd
              A. Oseth
	 	
              

              Name: Todd
                A. Oseth

              Its: President

            
	 	 

    

     

    
      
        
        

      

      
        7Unassociated Document

    THIS
      WARRANT AND THE SHARES OF CAPITAL STOCK ISSUED UPON ANY EXERCISE HEREOF HAVE
      NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE
      TRANSFERRED BY ANY PERSON, INCLUDING A PLEDGEE, UNLESS (1) EITHER (A) A
      REGISTRATION WITH RESPECT TO THERETO SHALL BE EFFECTIVE UNDER THE SECURITIES
      ACT, OR (B) THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL SATISFACTORY
      TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
      IS
      AVAILABLE, AND (2) THERE SHALL HAVE BEEN COMPLIANCE WITH ALL APPLICABLE STATE
      SECURITIES OR “BLUE SKY” LAWS.

     

    
      
        	
                No. W-06-001
Dated: April 11, 2006

              	
                For
                  the Purchase 
                  of
                    361,992 shares

                  of
                    Common Stock

                

              

      

       

      WARRANT
        TO PURCHASE COMMON STOCK

    

     

    OF

     

    CAMPUSTECH,
      INC.

    

    CampusTech,
      Inc., a Delaware corporation (the “Company”),
      for
      value received, hereby certifies that Smithfield Fiduciary LLC (the
“Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at
      any time or from time to time at or before the earlier of 5:00 p.m. on the
      “Expiration
      Date”,
      THREE
      HUNDRED SIXTY-ONE THOUSAND NINE HUNDRED NINETY-TWO (361,992) shares of common
      stock, par value $0.0001 per share, of the Company (the “Common
      Stock”),
      at a
      purchase price per share equal to the “Base
      Price”,
      subject to adjustment of the Base Price upon the occurrence of certain events
      as
      set forth in Section 2 of this warrant (this “Warrant,” and together with the
      other Warrants issued pursuant to the Subscription Agreement (the
      “Subscription Agreement”), dated as of April 11, 2006, between the Company and
      the Holder, the “Warrants”). The “Expiration Date” shall be April 11, 2011. The
“Base Price” initially shall be $0.01 per share. The shares of stock issuable
      upon exercise of this Warrant, and the aggregate purchase price, are hereinafter
      referred to as the “Warrant
      Stock”
and
      the
“Purchase
      Price,”
      respectively. 

     

    1. Exercise.

     

    1.1 Manner
      of Exercise; Payment in Cash.
      This
      Warrant may be exercised by the Holder, in whole or in part, by surrendering
      this Warrant, with the “Notice
      of Exercise”
form
      appended hereto as Exhibit
      A,
      duly
      executed by the Holder, at the principal office of the Company, or at such
      other
      place as the Company may designate, accompanied by payment in full of the
      Purchase Price payable in respect of the number of shares of Warrant Stock
      purchased upon such exercise. Payment of the Purchase Price shall be in cash
      or
      by certified or official bank check payable to the order of the
      Company.

     

    
      
        
        

      

      
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    1.2 Effectiveness.
      Each
      exercise of this Warrant shall be deemed to have been effected immediately
      prior
      to the close of business on the day on which this Warrant shall have been
      surrendered to the Company as provided in Section 1.1 above. At such time,
      the
      Person or Persons in whose name or names any certificates for Warrant Stock
      shall be issuable upon such exercise as provided in Section 1.3 below shall
      be
      deemed to have become the holder or holders of record of the Warrant Stock
      represented by such certificates.

     

    1.3 Delivery
      of Certificates.
      As soon
      as practicable after the exercise of this Warrant in full or in part, and in
      any
      event within three (3) Trading Days thereafter, the Company at its sole expense
      will cause to be issued in the name of, and delivered to, the Holder or, subject
      to the terms and conditions hereof, as such Holder (upon payment by such Holder
      of any applicable transfer taxes) may direct, as follows:

     

    
      	 	
              (a)

            	
              A
                certificate or certificates for the number of full shares of Warrant
                Stock
                to which the Holder shall be entitled upon such exercise plus, in
                lieu of
                any fractional share to which the Holder would otherwise be entitled,
                cash
                in an amount determined pursuant to Section 1.6
                hereof.

            

    

     

    
      	 	
              (b)

            	
              In
                case such exercise is in part only, a new warrant or warrants (dated
                the
                date hereof) of like tenor, providing in the aggregate on the face
                or
                faces thereof for the number of shares of Warrant Stock (without
                giving
                effect to any adjustment therein) equal to the number of such shares
                called for on the face of this Warrant minus the number of such shares
                purchased by the Holder upon such exercise as provided in Section
                1.1
                above.

            

    

     

    
      	 	
              (c)

            	
              In
                the event the shares of the Warrant Stock are duly registered under
                the
                Securities Act, at the Holder’s request, the shares purchased hereunder
                shall be transmitted by the Company to the Holder by crediting the
                account
                of the Holder’s prime broker with the Depository Trust Company through its
                Deposit Withdrawal Agent Commission system, if the Company is a
                participant in such system. 

            

    

     

    1.4 Cashless
      Exercise.
      This
      Warrant may also be exercised by means of a “cashless exercise” in which the
      Holder shall be entitled to receive a certificate for the number of shares
      of
      Warrant Stock equal to the quotient obtained by dividing [(A-B) (X)] by (A),
      where:

     

    (A)
      = if
      the Common Stock is duly registered under the Securities Act, the Closing Sales
      Price of the Common Stock (as reported by Bloomberg Financial Markets
      (“Bloomberg”)), or, if the Common Stock is not duly registered under the
      Securities Act, the fair market value of one share of Warrant Stock on the
      date
      immediately proceeding such election;

    

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

    

    
      
        
        

      

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

    

    For
      purposes of this Section 1.4 the fair market value of a shares of Warrant Stock
      shall mean the price per share of Common Stock that the Company could obtain
      from a willing buyer for a share of Common Stock sold by the Company from
      authorized but unissued shares, as mutually determined in good faith by the
      Company’s Board of Directors and the Holder. If the Company and the Holder are
      unable to agree upon the fair market value of such security, then such dispute
      shall be resolved pursuant to Section 15.

    

    1.5 Exercise
      Limitations; Holder’s Restrictions.
      The
      Holder shall not have the right to exercise any portion of this Warrant to
      the
      extent that after giving effect to such issuance after exercise, the Holder
      (together with the Holder’s affiliates), as set forth on the applicable Notice
      of Exercise, would beneficially own in excess of 4.99% (the “Maximum
      Percentage”) of the number of shares of the Common Stock outstanding immediately
      after giving effect to such issuance.  For purposes of the foregoing
      sentence, the number of shares of Common Stock beneficially owned by the Holder
      and its affiliates shall include the number of shares of Warrant Stock respect
      to which the determination of such sentence is being made, but shall exclude
      the
      number of shares of Warrant Stock which would be issuable upon exercise of
      the
      remaining, nonexercised portion of this Warrant.  To the extent that the
      limitation contained in this Section 1.5 applies, the determination of whether
      this Warrant is exercisable (in relation to other securities owned by the
      Holder) and of which a portion of this Warrant is exercisable shall be in the
      sole discretion of such Holder, and the submission of a Notice of Exercise
      shall
      be deemed to be such Holder’s determination of whether this Warrant is
      exercisable and of which portion of this Warrant is exercisable, in each case
      subject to such aggregate percentage limitation, and the Company shall have
      no
      obligation to verify or confirm the accuracy of such determination. Upon the
      written or oral request of the Holder, the Company shall within five days
      confirm orally and in writing to the Holder the number of shares of Common
      Stock
      then outstanding.  By written notice to the Company, the Holder may from
      time to time increase or decrease the Maximum Percentage to any other percentage
      not in excess of 9.99% specified in such notice; provided that any such increase
      will not be effective until the sixty-first (61st)
      day
      after such notice is delivered to the Company.

    

    1.6 Fractional
      Shares.
      The
      Company shall not be required upon the exercise of this Warrant to issue any
      fractional shares, but shall make an adjustment therefor in cash on the basis
      of
      the fair market value of the Warrant Stock reasonably determined by the board
      of
      directors of the Company.

     

    1.7 Company’s
      Failure to Timely Deliver Securities.
      If the
      Company shall fail for any reason or for no reason to issue to the Holder within
      three (3) Trading Days of receipt of the Notice of Exercise, a certificate
      for
      the number of shares of Common Stock to which the Holder is entitled and
      register such shares of Common Stock on the Company’s share register or to
      credit the Holder’s balance account with DTC for such number of shares of Common
      Stock to which the Holder is entitled upon the Holder’s exercise of this
      Warrant, then, in addition to all other remedies available to the Holder, the
      Company shall pay in cash to the Holder on each day after such third Trading
      Day
      that the issuance of such shares of Common Stock is not timely effected an
      amount equal to 2.0% of the product of (A) the number of shares of Common Stock
      not issued to the Holder on a timely basis and to which the Holder is entitled
      and (B) the Closing Sale Price of the shares of Common Stock on the Trading
      Day
      immediately preceding the last possible date which the Company could have issued
      such shares of Common Stock to the Holder without violating Section 1.3. In
      addition to the foregoing, if within three (3) Trading Days after the Company’s
      receipt of the facsimile copy of a Notice of Exercise the Company shall fail
      to
      issue and deliver a certificate to the Holder and register such shares of Common
      Stock on the Company’s share register or credit the Holder’s balance account
      with DTC for the number of shares of Common Stock to which the Holder is
      entitled upon the Holder’s exercise hereunder, and if on or after such Trading
      Day the Holder purchases (in an open market transaction or otherwise) shares
      of
      Common Stock to deliver in satisfaction of a sale by the Holder of shares of
      Common Stock issuable upon such exercise that the Holder anticipated receiving
      from the Company (a “Buy-In”),
      then
      the Company shall, within three (3) Trading Days after the Holder’s request and
      in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal
      to the Holder’s total purchase price (including brokerage commissions, if any)
      for the shares of Common Stock so purchased (the “Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such shares of Common Stock) shall terminate, or (ii) promptly honor its
      obligation to deliver to the Holder a certificate or certificates representing
      such shares of Common Stock and pay cash to the Holder in an amount equal to
      the
      excess (if any) of the Buy-In Price over the product of (A) such number of
      shares of Common Stock, times (B) the Closing Bid Price on the date of
      exercise.

     

    
      
        
        

      

      
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    2. Adjustment
      and Dilutive Issuances; Purchase Rights; Participation Rights.

     

    2.1 Changes
      in Common Stock.
      If the
      Company shall (i) combine the outstanding shares of Common Stock into a lesser
      number of shares, (ii) subdivide the outstanding shares of Common Stock into
      a
      greater number of shares, or (iii) issue additional shares of Common Stock
      as a
      dividend or other distribution with respect to the Common Stock, the number
      of
      shares of Warrant Stock shall be equal to the number of shares which the Holder
      would have been entitled to receive after the happening of any of the events
      described above if such shares had been issued immediately prior to the
      happening of such event, such adjustment to become effective concurrently with
      the effectiveness of such event. The Base Price in effect immediately prior
      to
      any such combination, subdivision or dividend or distribution shall, upon the
      effectiveness of such combination, subdivision or dividend or distribution,
      be
      proportionately adjusted. 

     

    2.2 Reorganizations
      and Reclassifications.
      If
      there shall occur any capital reorganization or reclassification of the Common
      Stock (other than a change in par value or a subdivision or combination as
      provided for in Section 2.1), then, as part of any such reorganization or
      reclassification, lawful provision shall be made so that the Holder shall have
      the right thereafter to receive upon the exercise hereof the kind and amount
      of
      shares of stock or other securities or property which such Holder would have
      been entitled to receive if, immediately prior to any such reorganization or
      reclassification, such Holder had held all the Warrant Stock purchasable upon
      the exercise of this Warrant. In any such case, appropriate adjustment (as
      reasonably determined by the Company’s Board of Directors) shall be made in the
      application of the provisions of this Section 2.2 (including provisions with
      respect to adjustment of the Base Price), as nearly as is reasonably
      practicable, in relation to any shares of stock or other securities or property
      thereafter deliverable upon the exercise of this Warrant.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    2.3 Merger,
      Consolidation or Sale of Assets.
      If the
      Company shall, directly or indirectly, (i) merge or consolidate with or into
      another corporation (other than a merger or reorganization involving only a
      change in the state of incorporation of the Company or the acquisition by the
      Company of other businesses where the Company survives as a going concern),
      (ii)
      sell all or substantially all of the Company’s capital stock or assets to any
      other Person, (iii) allow another Person to make a purchase, tender or exchange
      offer that is accepted by the holders of more than the 50% of either the
      outstanding shares of Common Stock (not including any shares of Common Stock
      held by the Person or Persons making or party to, or associated or affiliated
      with the Persons making or party to, such purchase, tender or exchange offer),
      or (iv) consummate a stock purchase agreement or other business combination
      (including, without limitation, a reorganization, recapitalization, spin-off
      or
      scheme of arrangement) with another Person whereby such other Person acquires
      more than the 50% of the outstanding shares of Common Stock (not including
      any
      shares of Common Stock held by the other Person or other Persons making or
      party
      to, or associated or affiliated with the other Persons making or party to,
      such
      stock purchase agreement or other business combination) (each a “Fundamental
      Transaction”),
      then
      (i) the Successor Entity shall assume in writing all of the obligations of
      the
      Company under this Warrant pursuant to written agreements in form and substance
      satisfactory to the Holder and approved by the Holder prior to such Fundamental
      Transaction, including agreements to deliver to the Holder in exchange for
      such
      Warrants a security of the Successor Entity evidenced by a written instrument
      substantially similar in form and substance to this Warrant, including, without
      limitation, an adjusted exercise price equal to the value for the shares of
      Common Stock reflected by the terms of such Fundamental Transaction, and
      exercisable for a corresponding number of shares of capital stock equivalent
      to
      the shares of Common Stock issuable upon exercise of this Warrant (without
      regard to any limitations on the exercise of this Warrant) prior to such
      Fundamental Transaction, and satisfactory to the Holder and (ii) provision
      shall
      be made so that the Holder shall thereafter be entitled to receive the number
      of
      shares of stock or other securities or property of the Company, or of the
      successor corporation resulting from the merger, consolidation or sale, to
      which
      the Holder would have been entitled if the Holder had exercised its rights
      pursuant to the Warrant immediately prior thereto. In any such case, appropriate
      adjustment (as
      reasonably determined by the Company’s Board of Directors) shall
      be
      made in the application of the provisions of this Section 2.3 (including
      provisions with respect to adjustment of the Base Price), as nearly as is
      reasonably practicable, in relation to any shares of stock or other securities
      or property thereafter deliverable upon the exercise of this Warrant.
      Notwithstanding the foregoing, in the event of a Fundamental Transaction, at
      the
      request of the Holder delivered before the 90th
      day
      after such Fundamental Transaction, the Company (or the Successor Entity) shall
      purchase this Warrant from the Holder by paying to the Holder, within five
      (5)
      business days after such request (or, if later, on the effective date of the
      Fundamental Transaction), cash in an amount equal to the value of the remaining
      unexercised portion of this Warrant on the date of such Fundamental Transaction,
      which value shall be determined by use of the Black-Scholes option pricing
      model.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    2.4 Purchase
      Rights.
      In
      addition to any adjustments pursuant to Section 2.5 below, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of shares of Common Stock (the “Purchase
      Rights”),
      then
      the Holder will be entitled to acquire, upon the terms applicable to such
      Purchase Rights, the aggregate Purchase Rights which the Holder could have
      acquired if the Holder had held the number of shares of Common Stock issuable
      upon exercise of this Warrant (without regard to any limitations on the exercise
      of this Warrant) immediately before the date on which a record is taken for
      the
      grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
      the date as of which the record holders of shares of Common Stock are to be
      determined for the grant, issue or sale of such Purchase Rights.

     

    2.5 Subsequent
      Equity Sales.
      If the
      Company, at any time while this Warrant is outstanding, shall sell or grant
      any
      Option to purchase its securities, or sell or grant any right to re-price its
      securities, or otherwise dispose of or issue any Common Stock or any Convertible
      Securities at an effective price per share less than the then Base Price (such
      lower per share price, the “New
      Base Price”
and
      such issuances, collectively, a “New
      Dilutive Issuance”),
      as
      adjusted hereunder, then, the Base Price shall be reduced to equal the New
      Base
      Price for any future exercise of the Warrant (i.e.,
      so-called “full ratchet” anti-dilution protection). The Company shall notify the
      Holder in writing, no later than the five (5) days following the issuance of
      any
      New Dilutive Issuance, indicating therein the New Base Price (the “Dilutive
      Issuance Notice”).
      Notwithstanding the foregoing, no adjustments shall be made, paid or issued
      under this Section 2.5 in respect of an “Exempt
      Issuance.”
An
      Exempt Issuance is defined as any and all issuances of Common Stock, or
      securities convertible into Common Stock, sold, granted or otherwise issued
      pursuant to (i) an option plan or contractual agreement with the officers,
      directors, employees, agents, and/or consultants of the Company, and (ii)
      securities issued pursuant to acquisitions or strategic transactions approved
      by
      a majority of the disinterested directors, provided any such issuance shall
      only
      be to a Person which is, itself or through its subsidiaries, an operating
      company in a business synergistic with the business of the Company and in which
      the Company receives benefits in addition to the investment of funds, but shall
      not include a transaction in which the Company is issuing securities primarily
      for the purpose of raising capital or to an entity whose primary business is
      investing in securities. Upon each such adjustment of the Base Price hereunder,
      the number of shares of Warrant Stock shall be adjusted to the number of shares
      of Common Stock determined by multiplying the Base Price in effect immediately
      prior to such adjustment by the number of shares of Warrant Stock issuable
      upon
      exercise of this Warrant immediately prior to such adjustment and dividing
      the
      product thereof by the New Base Price. For purposes of determining the adjusted
      Base Price under this Section 2.5, the following shall be
      applicable:

     

    
      
        
        

      

      
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              (i)

            	
              Issuance
                of Options.
                If the Company in any manner grants any Options and the lowest price
                per
                share for which one share of Common Stock is issuable upon the exercise
                of
                any such Option or upon conversion, exercise or exchange of any
                Convertible Securities issuable upon exercise of any such Option
                is less
                than the Base Price, then such share of Common Stock shall be deemed
                to be
                outstanding and to have been issued and sold by the Company at the
                time of
                the granting or sale of such Option for such price per share. For
                purposes
                of this Section 2.5(i), the “lowest price per share for which one share of
                Common Stock is issuable upon exercise of such Options or upon conversion,
                exercise or exchange of such Convertible Securities” shall be equal to the
                sum of the lowest amounts of consideration (if any) received or receivable
                by the Company with respect to any one share of Common Stock upon
                the
                granting or sale of the Option, upon exercise of the Option and upon
                conversion, exercise or exchange of any Convertible Security issuable
                upon
                exercise of such Option. No further adjustment of the Base Price
                or number
                of shares of Warrant Stock shall be made upon the actual issuance
                of such
                shares of Common Stock or of such Convertible Securities upon the
                exercise
                of such Options or upon the actual issuance of such shares of Common
                Stock
                upon conversion, exercise or exchange of such Convertible Securities.
                

            

    

     

    
      	 	
              (ii)

            	
              Issuance
                of Convertible Securities.
                If the Company in any manner issues or sells any Convertible Securities
                and the lowest price per share for which one share of Common Stock
                is
                issuable upon the conversion, exercise or exchange thereof is less
                than
                the Base Price, then such share of Common Stock shall be deemed to
                be
                outstanding and to have been issued and sold by the Company at the
                time of
                the issuance or sale of such Convertible Securities for such price
                per
                share. For the purposes of this Section 2.5(ii), the “lowest price per
                share for which one share of Common Stock is issuable upon the conversion,
                exercise or exchange” shall be equal to the sum of the lowest amounts of
                consideration (if any) received or receivable by the Company with
                respect
                to one share of Common Stock upon the issuance or sale of the Convertible
                Security and upon conversion, exercise or exchange of such Convertible
                Security. No further adjustment of the Base Price or number of shares
                of
                Warrant Stock shall be made upon the actual issuance of such shares
                of
                Common Stock upon conversion, exercise or exchange of such Convertible
                Securities, and if any such issue or sale of such Convertible Securities
                is made upon exercise of any Options for which adjustment of this
                Warrant
                has been or is to be made pursuant to other provisions of this Section
                2.5, no further adjustment of the Base Price
                or number of shares of Warrant Stock shall be made by reason of such
                issue
                or sale. 

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              Change
                in Option Price or Rate of Conversion.
                If the purchase price provided for in any Options, the additional
                consideration, if any, payable upon the issue, conversion, exercise
                or
                exchange of any Convertible Securities, or the rate at which any
                Convertible Securities are convertible into or exercisable or exchangeable
                for shares of Common Stock increases or decreases at any time, the
                Base
                Price and the number of shares of Warrant Stock in effect at the
                time of
                such increase or decrease shall be adjusted to the Base Price and
                the
                number of shares of Warrant Stock that would have been in effect
                at such
                time had such Options or Convertible Securities provided for such
                increased or decreased purchase price, additional consideration or
                increased or decreased conversion rate, as the case may be, at the
                time
                initially granted, issued or sold. For purposes of this Section 2.5(iii),
                if the terms of any Option or Convertible Security that was outstanding
                as
                of the date of issuance of this Warrant are increased or decreased
                in the
                manner described in the immediately preceding sentence, then such
                Option
                or Convertible Security and the shares of Common Stock deemed issuable
                upon exercise, conversion or exchange thereof shall be deemed to
                have been
                issued as of the date of such increase or decrease. No adjustment
                pursuant
                to this Section 2.5 shall be made if such adjustment would result
                in an
                increase of the Base Price then in effect or a decrease in the number
                of
                shares of Warrant Stock.

            

    

     

    
      	 	
              (iv)

            	
              Calculation
                of Consideration Received.
                In case any Option is issued in connection with the issue or sale
                of other
                securities of the Company, together comprising one integrated transaction
                in which no specific consideration is allocated to such Options by
                the
                parties thereto, the Options will be deemed to have been issued for
                a
                consideration of $0.01. If any shares of Common Stock, Options or
                Convertible Securities are issued or sold or deemed to have been
                issued or
                sold for cash, the consideration received therefor will be deemed
                to be
                the net amount received by the Company therefor. If any shares of
                Common
                Stock, Options or Convertible Securities are issued or sold for a
                consideration other than cash, the amount of such consideration received
                by the Company will be the fair value of such consideration, except
                where
                such consideration consists of securities, in which case the amount
                of
                consideration received by the Company will be the Closing Sale Price
                of
                such security on the date of receipt. If any shares of Common Stock,
                Options or Convertible Securities are issued to the owners of the
                non-surviving entity in connection with any merger in which the Company
                is
                the surviving entity, the amount of consideration therefor will be
                deemed
                to be the fair value of such portion of the net assets and business
                of the
                non-surviving entity as is attributable to such shares of Common
                Stock,
                Options or Convertible Securities, as the case may be. The fair value
                of
                any consideration other than cash or securities will be determined
                jointly
                by the Company and the Holder. If such parties are unable to reach
                agreement within ten (10) days after the occurrence of an event requiring
                valuation, then such dispute shall be resolved pursuant to Section
                15.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (v)

            	
              Record
                Date.
                If the Company takes a record of the holders of shares of Common
                Stock for
                the purpose of entitling them (A) to receive a dividend or other
                distribution payable in shares of Common Stock, Options or in Convertible
                Securities or (B) to subscribe for or purchase shares of Common Stock,
                Options or Convertible Securities, then such record date will be
                deemed to
                be the date of the issue or sale of the shares of Common Stock deemed
                to
                have been issued or sold upon the declaration of such dividend or
                the
                making of such other distribution or the date of the granting of
                such
                right of subscription or purchase, as the case may
                be.

            

    

     

    2.6 Rights
      Upon Distribution of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of shares of Common Stock, by
      way
      of return of capital or otherwise (including, without limitation, any
      distribution of cash, stock or other securities, property or options by way
      of a
      dividend, spin off, reclassification, corporate rearrangement, scheme of
      arrangement or other similar transaction) (a “Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    
      	 	
              (a)

            	
              any
                Base Price in effect immediately prior to the close of business on
                the
                record date fixed for the determination of holders of shares of Common
                Stock entitled to receive the Distribution shall be reduced, effective
                as
                of the close of business on such record date, to a price determined
                by
                multiplying such Base Price by a fraction of which (i) the numerator
                shall
                be the Closing Bid Price of the shares of Common Stock on the trading
                day
                immediately preceding such record date minus the value of the Distribution
                (as determined in good faith by the Company’s Board of Directors)
                applicable to one share of shares of Common Stock, and (ii) the
                denominator shall be the Closing Bid Price of the shares of Common
                Stock
                on the trading day immediately preceding such record date;
                and

            

    

     

    
      	 	
              (b)

            	
              the
                number of shares of Warrant Stock shall be increased to a number
                of shares
                equal to the number of shares of Common Stock obtainable immediately
                prior
                to the close of business on the record date fixed for the determination
                of
                holders of shares of Common Stock entitled to receive the Distribution
                multiplied by the reciprocal of the fraction set forth in the immediately
                preceding paragraph (a); provided that in the event that the Distribution
                is of shares of Common Stock (or common stock) (“Other
                Shares of Common Stock”)
                of a company whose common shares are traded on a national securities
                exchange or a national automated quotation system, then the Holder
                may
                elect to receive a warrant to purchase Other Shares of Common Stock
                in
                lieu of an increase in the number of shares of Warrant Stock, the
                terms of
                which shall be identical to those of this Warrant, except that such
                warrant shall be exercisable into the number of shares of Other Shares
                of
                Common Stock that would have been payable to the Holder pursuant
                to the
                Distribution had the Holder exercised this Warrant immediately prior
                to
                such record date and with an aggregate exercise price equal to the
                product
                of the amount by which the exercise price of this Warrant was decreased
                with respect to the Distribution pursuant to the terms of the immediately
                preceding paragraph (a) and the number of shares of Warrant Stock
                calculated in accordance with the first part of this paragraph
                (b).

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    2.7 Voluntary
      Adjustment.
      The
      Company may at any time during the term of this Warrant reduce the then Base
      Price to any amount and for any period of time deemed appropriate by the
      Company’s Board of Directors.

     

    2.8 Certificate
      of Adjustment.
      When
      any adjustment is required to be made in the Base Price, the Company shall
      promptly mail to the Holder a “Certificate
      of Adjustment”
setting
      forth the Base Price and number of shares of Warrant Stock after such adjustment
      and setting forth a brief statement of the facts requiring such adjustment.
      Delivery of such certificate shall be deemed to be a final and binding
      determination with respect to such adjustment unless challenged by the Holder
      within ten (10) days of receipt thereof. Such certificate shall also set forth
      the kind and amount of stock or other securities or property into which this
      Warrant shall be exercisable following the occurrence of any of the events
      specified in this Section 2.

     

    
      	
              3.

            	
              Pre-Emptive
                Right to Invest.
                The Company hereby grants to Holder the right of first offer with
                respect
                to future sales by the Company of any “New
                Securities”
                (as hereinafter defined). The Holder shall be entitled to apportion
                the
                right of first offer hereby granted it among itself and its partners
                and
                affiliates in such proportions as it deems appropriate. New Securities
                means any offering of Common Stock, or securities convertible into
                Common
                Stock, or debt convertible into Common Stock that is not subject
                to prior
                registration with the U.S. Securities and Exchange Commission (the
                “SEC”).

            

    

     

    3.1 Process.
      Each
      time the Company proposes to offer any New Securities, the Company shall first
      make an offering of such New Securities to the Holder as follows: 

     

    
      	 	
              (a)

            	
              The
                Company shall deliver an irrevocable written notice to the Holder
                stating
                (i) its bona fide intention to offer New Securities, (ii) the amount
                and
                number of such New Securities to be offered, (iii) the price and
                terms, if
                any, upon which it proposes to offer such New Securities, and (iv)
                the
                Holder’s pro rata
                portion as determined in Section
                3.1(c).

            

    

     

    
      	 	
              (b)

            	
              Within
                seven (7) calendar days after receipt of the Company’s notice, the Holder
                shall deliver a written notice to the Company electing to purchase,
                at the
                price and on the terms specified in the Company’s notice, up to its
                pro rata
                portion of such New Securities.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              The
                Holder’s pro rata
                portion is equal to the percentage of (A) the sum of the number of
                shares
                of Warrant Stock still issuable pursuant to this Warrant and the
                number of
                shares of Common Stock issued to and still held by Holder, divided
                by (B)
                the total number of shares of Common Stock of the Company outstanding
                on a
                fully-diluted basis (i.e.,
                assuming full conversion of all convertible and exercisable securities);
                provided, however, that in no event shall the Holder’s pro rata
                portion in the aggregate be less than $3,000,000 of the New
                Securities.

            

    

     

    
      	 	
              (d)

            	
              Thereafter,
                for a period of up to one hundred twenty (120) days the Company may
                offer
                and consummate a transaction with respect to the remaining New Securities
                to any Person or Persons at a price not less than, and upon terms
                no more
                favorable to the offeree, than those specified in the Company’s notice.
                After such 120-day period or if there is a material change in the
                price
                and/or terms of the New Securities, then the Company shall first
                re-offer
                the New Securities or such materially changed New Securities to the
                Holder
                as set forth herein.

            

    

     

    3.2 Limitations.
      The
      right of first offer in this Section 3 shall not be applicable to Exempt
      Issuances (as defined above). Any Holder, by prior written consent, may waive
      its rights under this Section 3 and such a waiver shall only apply to the
      extent specifically set forth. The right of first offer set forth in this
      Section 3 may not be assigned or transferred, except to (i) a limited partner,
      general partner or an affiliate of the Holder, (ii) a parent, sibling or lineal
      descendant of the Holder, (iii) a trust for the benefit of a Holder or a parent,
      sibling or lineal descendant of the Holder, or (iv) another Holder.

     

    
      	
              4.

            	
              Representations
                and Warranties and Covenants of the Company.
                

            

    

     

    4.1 The
      Subscription Agreement has been entered into by the Holder in reliance upon
      the
      following representations and covenants of the Company:

     

    
      	(a)  	
              Organization
                and Qualification.
                The Company and Campus Tech, Inc. (the “Subsidiary”)
                are entities duly organized and validly existing in good standing
                under
                the laws of the jurisdiction in which they are formed, and have the
                requisite power and authorization to own their properties and to
                carry on
                their business as now being conducted. Each of the Company and the
                Subsidiary is duly qualified as a foreign entity to do business and
                is in
                good standing in every jurisdiction in which its ownership of property
                or
                the nature of the business conducted by it makes such qualification
                necessary, except to the extent that the failure to be so qualified
                or be
                in good standing would not have a Material Adverse Effect. As used
                in this
                Warrant, “Material
                Adverse Effect”
                means any material adverse effect on the business, properties, assets,
                operations, results of operations, condition (financial or otherwise)
                or
                prospects of the Company and the Subsidiary, taken as a whole, or
                on the
                transactions contemplated hereby, the Subscription Agreement and
                the
                Warrants or by the agreements and instruments to be entered into
                in
                connection herewith or therewith (collectively, the “Transaction
                Documents”),
                or on the authority or ability of the Company to perform its obligations
                under the Transaction Documents. Except for the Subsidiary, the Company
                does not own capital stock or hold an equity or similar interest
                in any
                other entity.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              Authorization;
                Enforcement; Validity.
                The Company has the requisite power and authority to enter into and
                perform its obligations under the Transaction Documents and to issue
                the
                shares Common Stock to the Holder pursuant to the Subscription Agreement
                (the “Subscription
                Shares”)
                and the Warrants (the Subscription Shares and the Warrants, collectively,
                the “Securities”)
                in accordance with the terms hereof and thereof. The execution and
                delivery of the Transaction Documents by the Company and the consummation
                by the Company of the transactions contemplated hereby and thereby,
                including, without limitation, the issuance of the Securities, the
                reservation for issuance and the issuance of the Warrant Stock issuable
                upon exercise of the Warrants have been duly authorized by the Company’s
                Board of Directors and (other than the filing with the SEC of one
                or more
                registration statements in accordance with the requirements of the
                Registration Rights Agreement, dated as of April [ ], 2006, between
                the
                Company and the Holder (the “Registration Rights Agreement”)) no further
                filing, consent, or authorization is required by the Company, its
                Board of
                Directors or its stockholders. This Warrant and the other Transaction
                Documents of even date herewith have been duly executed and delivered
                by
                the Company, and constitute the legal, valid and binding obligations
                of
                the Company, enforceable against the Company in accordance with their
                respective terms, except as such enforceability may be limited by
                general
                principles of equity or applicable bankruptcy, insolvency, reorganization,
                moratorium, liquidation or similar laws relating to, or affecting
                generally, the enforcement of applicable creditors’ rights and remedies.
                Upon consummation of the transactions contemplated by the Transaction
                Agreement and the Private Placement Memorandum of the Company, dated
                as of
                December 1, 2005 (the “Private
                Placement Memorandum”),
                the Company shall have received gross proceeds of $3,000,000 in connection
                with the sale of Common Stock and the
                Warrants.

            

    

     

    
      	(c)  	
              Issuance
                of Securities.
                The Securities are duly authorized and, upon issuance in accordance
                with
                the terms hereof, shall be validly issued and free from all taxes,
                liens
                and charges with respect to the issue thereof and the Subscription
                Shares
                shall be fully paid and nonassessable with the holders being entitled
                to
                all rights accorded to a holder of Common Stock. As of the date of
                the
                Warrant, a number of shares of Common Stock shall have been duly
                authorized and reserved for issuance which equals 130% of the maximum
                number of shares Common Stock issuable upon exercise of the Warrants.
                Upon
                exercise in accordance with the Warrants, the Warrant Stock will
                be
                validly issued, fully paid and nonassessable and free from all preemptive
                or similar rights, taxes, liens and charges with respect to the issue
                thereof, with the holders being entitled to all rights accorded to
                a
                holder of Common Stock. The offer and issuance by the Company of
                the
                Securities is exempt from registration under the Securities
                Act.

            

    

     

    
      
        
        

      

      
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      	(d)  	
              No
                Conflicts.
                The execution, delivery and performance of the Transaction Documents
                by
                the Company and the consummation by the Company of the transactions
                contemplated hereby and thereby (including, without limitation, the
                issuance of the Securities and reservation for issuance and issuance
                of
                the Warrant Stock) will not (i) result in a violation of the Certificate
                of Incorporation (as defined in Section 4.1(q)) of the Company or
                of the
                Subsidiary, any capital stock of the Company or Bylaws (as defined
                in
                Section 4.1(q)) of the Company or of the Subsidiary or (ii) conflict
                with,
                or constitute a default (or an event which with notice or lapse of
                time or
                both would become a default) under, or give to others any rights
                of
                termination, amendment, acceleration or cancellation of, any agreement,
                indenture or instrument to which the Company or the Subsidiary is
                a party,
                or (iii) result in a violation of any law, rule, regulation, order,
                judgment or decree (including federal and state securities laws)
                applicable to the Company or the Subsidiary or by which any property
                or
                asset of the Company or the Subsidiary is bound or
                affected.

            

    

     

    
      	(e)  	
              Consents.
                The Company is not required to obtain any consent, authorization
                or order
                of, or make any filing or registration with, any court, governmental
                agency or any regulatory or self-regulatory agency or any other Person
                in
                order for it to execute, deliver or perform any of its obligations
                under
                or contemplated by the Transaction Documents, in each case in accordance
                with the terms hereof or thereof. All consents, authorizations, orders,
                filings and registrations which the Company is required to obtain
                pursuant
                to the preceding sentence have been obtained or effected on or prior
                to
                the Closing Date, and the Company and the Subsidiary are unaware
                of any
                facts or circumstances which might prevent the Company from obtaining
                or
                effecting any of the registration, application or filings pursuant
                to the
                preceding sentence. 

            

    

     

    
      	(f)  	
              Acknowledgment
                Regarding Holder’s Purchase of Securities.
                The Company acknowledges and agrees that the Holder is acting solely
                in
                the capacity of arm’s length purchaser with respect to the Transaction
                Documents and the transactions contemplated hereby and thereby and
                that
                the Holder is not (i) an officer or director of the Company, (ii)
                an
                “affiliate” of the Company (as defined in Rule 144) or (iii) to the
                knowledge of the Company, a “beneficial owner” of more than 10% of the
                shares of Common Stock (as defined for purposes of Rule 13d-3 of
                the
                Securities Exchange Act of 1934, as amended). The Company further
                acknowledges that the Holder is not is acting as a financial advisor
                or
                fiduciary of the Company (or in any similar capacity) with respect
                to the
                Transaction Documents and the transactions contemplated hereby and
                thereby, and any advice given by the Holder or any of its representatives
                or agents in connection with the Transaction Documents and the
                transactions contemplated hereby and thereby is merely incidental
                to the
                Holder’s purchase of the Securities. The Company further represents to the
                Holder that the Company’s decision to enter into the Transaction Documents
                has been based solely on the independent evaluation by the Company
                and its
                representatives.

            

    

     

    
      
        
        

      

      
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      	(g)  	
              No
                General Solicitation; Placement Agent’s Fees.
                Neither the Company, nor any of its affiliates, nor any Person acting
                on
                its or their behalf, has engaged in any form of general solicitation
                or
                general advertising (within the meaning of Regulation D) in connection
                with the offer or sale of the Securities. The Company shall be responsible
                for the payment of any placement agent’s fees, financial advisory fees, or
                brokers’ commissions (other than for persons engaged by the Holder or its
                investment advisor) relating to or arising out of the transactions
                contemplated hereby. The Company shall pay, and hold the Holder harmless
                against, any liability, loss or expense (including, without limitation,
                attorney’s fees and out-of-pocket expenses) arising in connection with any
                such claim. The Company has not engaged any placement agent or other
                agent
                in connection with the sale of the Securities.

            

    

     

    
      	(h)  	
              No
                Integrated Offering.
                None of the Company, the Subsidiary, any of their affiliates, and
                any
                Person acting on their behalf has, directly or indirectly, made any
                offers
                or sales of any security or solicited any offers to buy any security,
                under circumstances that would require registration of any of the
                Securities under the Securities Act or cause this offering of the
                Securities to be integrated with prior offerings by the Company for
                purposes of the Securities Act or any applicable stockholder approval
                provisions. None of the Company, its Subsidiary, their affiliates
                and any
                Person acting on their behalf will take any action or steps referred
                to in
                the preceding sentence that would require registration of any of
                the
                Securities under the Securities Act or cause the offering of the
                Securities to be integrated with other
                offerings.

            

    

     

    
      	(i)  	
              Dilutive
                Effect.
                The Company understands and acknowledges that the number of shares
                of
                Warrant Stock issuable upon exercise of the Warrants will increase
                in
                certain circumstances. The Company further acknowledges that its
                obligation to issue the Warrant Stock upon exercise of the Warrants
                in
                accordance with the Warrants, in each case, is absolute and unconditional
                regardless of the dilutive effect that such issuance may have on
                the
                ownership interests of other stockholders of the
                Company.

            

    

     

    
      	(j)  	
              Application
                of Takeover Protections; Rights Agreement.
                The Company and its board of directors have taken all necessary action,
                if
                any, in order to render inapplicable any control share acquisition,
                business combination, poison pill (including any distribution under
                a
                rights agreement) or other similar anti-takeover provision under
                the
                Certificate of Incorporation or the laws of the jurisdiction of its
                formation which is or could become applicable to the Holder as a
                result of
                the transactions contemplated by the Transaction Documents, including,
                without limitation, the Company’s issuance of the Securities and the
                Holder’s ownership of the Securities. The Company has not adopted a
                stockholder rights plan or similar arrangement relating to accumulations
                of beneficial ownership of Common Stock or a change in control of
                the
                Company.

            

    

     

    
      
        
        

      

      
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      	(k)  	
              Financial
                Statements.
                The financial statements of the Company (the "Financial Statements")
                included in the Private Placement Memorandum fairly present in all
                material respects the financial condition and position of the Company
                at
                the dates and for the periods indicated; and have been prepared in
                conformity with generally accepted accounting principles in the United
                States (“GAAP”)
                consistently applied throughout the periods covered thereby, except
                as may
                be otherwise specified in such Financial Statements or the notes
                thereto,
                and fairly present in all material respects the financial position
                of the
                Company as of and for the dates thereof and the results of operations
                and
                cash flows for the periods then ended. Since the date of the most
                recent
                balance sheet included as part of the Financial Statements, there
                has not
                been to the Company’s knowledge: (i) any change in the assets,
                liabilities, financial condition or operations of the Company from
                that
                reflected in the Financial Statements, other than changes in the
                ordinary
                course of business, none of which individually or in the aggregate
                would
                reasonably be expected to have a Material Adverse Effect; or (ii)
                any
                other event or condition of any character that, either individually
                or
                cumulatively, would reasonably be expected to have a Material Adverse
                Effect, except for the expenses incurred in connection with the
                transactions contemplated by the Transaction
                Documents.

            

    

     

    
      	(l)  	
              Absence
                of Certain Changes.
                Since December 31, 2004, there has been no material adverse change
                and no
                material adverse development in the business, properties, operations,
                condition (financial or otherwise), results of operations or prospects
                of
                the Company or the Subsidiary. Since December 31, 2004, the Company
                has
                not (i) declared or paid any dividends, (ii) sold any assets, individually
                or in the aggregate, in excess of $50,000 outside of the ordinary
                course
                of business or (iii) had capital expenditures, individually or in
                the
                aggregate, in excess of $50,000. The Company has not taken any steps
                to
                seek protection pursuant to any bankruptcy law nor does the Company
                have
                any knowledge or reason to believe that its creditors intend to initiate
                involuntary bankruptcy proceedings or any actual knowledge of any
                fact
                which would reasonably lead a creditor to do so. The Company is not
                as of
                the date hereof, and after giving effect to the transactions contemplated
                hereby to occur at the Closing, will not be Insolvent (as defined
                below).
                “Insolvent”
                means (i) the present fair saleable value of the Company’s assets is less
                than the amount required to pay the Company’s total Indebtedness (as
                defined in Section 4.1(r)), (ii) the Company is unable to pay its
                debts
                and liabilities, subordinated, contingent or otherwise, as such debts
                and
                liabilities become absolute and matured, (iii) the Company intends
                to
                incur or believes that it will incur debts that would be beyond its
                ability to pay as such debts mature or (iv) the Company has unreasonably
                small capital with which to conduct the business in which it is engaged
                as
                such business is now conducted and is proposed to be
                conducted.

            

    

     

    
      
        
        

      

      
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      	(m)  	
              No
                Undisclosed Events, Liabilities, Developments or
                Circumstances.
                No event, liability, development or circumstance has occurred or
                exists,
                or is contemplated to occur with respect to the Company, the Subsidiary
                or
                their respective business, properties, prospects, operations or financial
                condition, that is not reflected in the Financial
                Statements.

            

    

     

    
      	(n)  	
              Conduct
                of Business; Regulatory Permits.
                Neither the Company nor the Subsidiary is in violation of any term
                of or
                in default under its Certificate of Incorporation or Bylaws or their
                organizational charter or certificate of incorporation or bylaws,
                respectively. Neither the Company nor the Subsidiary is in violation
                of
                any judgment, decree or order or any statute, ordinance, rule or
                regulation applicable to the Company or the Subsidiary, and neither
                the
                Company nor the Subsidiary will conduct its business in violation
                of any
                of the foregoing, except for possible violations which would not,
                individually or in the aggregate, have a Material Adverse Effect.
                The
                Company and the Subsidiary possess all certificates, authorizations
                and
                permits issued by the appropriate regulatory authorities necessary
                to
                conduct their respective businesses, except where the failure to
                possess
                such certificates, authorizations or permits would not have, individually
                or in the aggregate, a Material Adverse Effect, and neither the Company
                nor the Subsidiary has received any notice of proceedings relating
                to the
                revocation or modification of any such certificate, authorization
                or
                permit.

            

    

     

    
      	(o)  	
              Foreign
                Corrupt Practices.
                Neither the Company, nor the Subsidiary, nor any director, officer,
                agent,
                employee or other Person acting on behalf of the Company or the Subsidiary
                has, in the course of its actions for, or on behalf of, the Company
                (i)
                used any corporate funds for any unlawful contribution, gift,
                entertainment or other unlawful expenses relating to political activity;
                (ii) made any direct or indirect unlawful payment to any foreign
                or
                domestic government official or employee from corporate funds; (iii)
                violated or is in violation of any provision of the U.S. Foreign
                Corrupt
                Practices Act of 1977, as amended; or (iv) made any unlawful bribe,
                rebate, payoff, influence payment, kickback or other unlawful payment
                to
                any foreign or domestic government official or
                employee.

            

    

     

    
      	(p)  	
              Transactions
                With Affiliates.
                Except as set forth in the Financial Statements or the Private Placement
                Memorandum, none of the officers, directors or employees of the Company
                is
                presently a party to any transaction with the Company or the Subsidiary
                (other than for ordinary course services as employees, officers or
                directors), including any contract, agreement or other arrangement
                providing for the furnishing of services to or by, providing for
                rental of
                real or personal property to or from, or otherwise requiring payments
                to
                or from any such officer, director or employee or, to the knowledge
                of the
                Company, any corporation, partnership, trust or other entity in which
                any
                such officer, director, or employee has a substantial interest or
                is an
                officer, director, trustee or
                partner.

            

    

     

    
      
        
        

      

      
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      	(q)  	
              Equity
                Capitalization.
                The Private Placement Memorandum sets forth the true and correct
                capital
                structure of the Company. Except as contemplated by the Private Placement
                Memorandum, there have been no changes to the capital structure of
                the
                Company since the date of the Private Placement Memorandum. All
                outstanding shares of capital stock of the Company have been, or
                upon
                issuance will be, validly issued and are fully paid and nonassessable.
                Except as disclosed in the Private Placement Memorandum: (i) none
                of the
                Company’s capital stock is subject to preemptive rights or any other
                similar rights or any liens or encumbrances suffered or permitted
                by the
                Company; (ii) there are no outstanding options, warrants, scrip,
                rights to
                subscribe to, calls or commitments of any character whatsoever relating
                to, or securities or rights convertible into, or exercisable or
                exchangeable for, any capital stock of the Company or the Subsidiary,
                or
                contracts, commitments, understandings or arrangements by which the
                Company or the Subsidiary is or may become bound to issue additional
                capital stock of the Company or the Subsidiary or options, warrants,
                scrip, rights to subscribe to, calls or commitments of any character
                whatsoever relating to, or securities or rights convertible into,
                or
                exercisable or exchangeable for, any capital stock of the Company
                or the
                Subsidiary; (iii) there are no outstanding debt securities, notes,
                credit
                agreements, credit facilities or other agreements, documents or
                instruments evidencing Indebtedness of the Company or the Subsidiary
                or by
                which the Company or the Subsidiary is or may become bound; (iv)
                there are
                no financing statements securing obligations in any material amounts,
                either singly or in the aggregate, filed in connection with the Company
                or
                the Subsidiary; (v) there are no agreements or arrangements under
                which
                the Company or the Subsidiary is obligated to register the sale of
                any of
                their securities under the Securities Act (except the Registration
                Rights
                Agreement); (vi) there are no outstanding securities or instruments
                of the
                Company or the Subsidiary that contain any redemption or similar
                provisions, and there are no contracts, commitments, understandings
                or
                arrangements by which the Company or the Subsidiary is or may become
                bound
                to redeem a security of the Company or the Subsidiary; (vii) there
                are no
                securities or instruments containing anti-dilution or similar provisions
                that will be triggered by the issuance of the Securities; (viii)
                the
                Company does not have any stock appreciation rights or “phantom stock”
                plans or agreements or any similar plan or agreement; and (ix) the
                Company
                and the Subsidiary have no liabilities or obligations required to
                be
                disclosed in the Financial Statements pursuant to GAAP but not so
                disclosed in the Financial Statements, other than those incurred
                in the
                ordinary course of the Company’s or the Subsidiary’s respective businesses
                and which, individually or in the aggregate, do not or would not
                have a
                Material Adverse Effect. The Company has furnished to the Holder
                true,
                correct and complete copies of the Company’s Certificate of Incorporation,
                as amended and as in effect on the date hereof (the “Certificate
                of Incorporation”),
                and the Company’s Bylaws, as amended and as in effect on the date hereof
                (the “Bylaws”),
                and the terms of all securities convertible into, or exercisable
                or
                exchangeable for, shares of Common Stock and the material rights
                of the
                holders thereof in respect thereto.

            

    

     

    
      
        
        

      

      
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      	(r)  	
              Indebtedness
                and Other Contracts.
                Except as disclosed in Financial Statements, neither the Company
                nor the
                Subsidiary (i) has any outstanding Indebtedness (as defined below),
                (ii)
                is a party to any contract, agreement or instrument, the violation
                of
                which, or default under which, by the other party(ies) to such contract,
                agreement or instrument would result in a Material Adverse Effect,
                (iii)
                is in violation of any term of or in default under any contract,
                agreement
                or instrument relating to any Indebtedness, except where such violations
                and defaults would not result, individually or in the aggregate,
                in a
                Material Adverse Effect, or (iv) is a party to any contract, agreement
                or
                instrument relating to any Indebtedness, the performance of which,
                in the
                judgment of the Company’s officers, has or is expected to have a Material
                Adverse Effect. Following the consummation of the transactions
                contemplated by the Transaction Documents, the Company and the Subsidiary
                shall not have any outstanding Indebtedness. For purposes of this
                Warrant:
                (x) “Indebtedness”
                of any Person means, without duplication (A) all indebtedness for
                borrowed
                money, (B) all obligations issued, undertaken or assumed as the deferred
                purchase price of property or services (other than trade payables
                entered
                into in the ordinary course of business), (C) all reimbursement or
                payment
                obligations with respect to letters of credit, surety bonds and other
                similar instruments, (D) all obligations evidenced by notes, bonds,
                debentures or similar instruments, including obligations so evidenced
                incurred in connection with the acquisition of property, assets or
                businesses, (E) all indebtedness created or arising under any conditional
                sale or other title retention agreement, or incurred as financing,
                in
                either case with respect to any property or assets acquired with
                the
                proceeds of such indebtedness (even though the rights and remedies
                of the
                seller or bank under such agreement in the event of default are limited
                to
                repossession or sale of such property), (F) all monetary obligations
                under
                any leasing or similar arrangement which, in connection with generally
                accepted accounting principles, consistently applied for the periods
                covered thereby, is classified as a capital lease, (G) all indebtedness
                referred to in clauses (A) through (F) above secured by (or for which
                the
                holder of such Indebtedness has an existing right, contingent or
                otherwise, to be secured by) any mortgage, lien, pledge, charge,
                security
                interest or other encumbrance upon or in any property or assets (including
                accounts and contract rights) owned by any Person, even though the
                Person
                which owns such assets or property has not assumed or become liable
                for
                the payment of such indebtedness, and (H) all Contingent Obligations
                in
                respect of indebtedness or obligations of others of the kinds referred
                to
                in clauses (A) through (G) above; and (y) “Contingent
                Obligation”
                means, as to any Person, any direct or indirect liability, contingent
                or
                otherwise, of that Person with respect to any indebtedness, lease,
                dividend or other obligation of another Person if the primary purpose
                or
                intent of the Person incurring such liability, or the primary effect
                thereof, is to provide assurance to the obligee of such liability
                that
                such liability will be paid or discharged, or that any agreements
                relating
                thereto will be complied with, or that the holders of such liability
                will
                be protected (in whole or in part) against loss with respect
                thereto.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	(s)  	
              Absence
                of Litigation.
                There is no action, suit, proceeding, inquiry or investigation before
                or
                by any court, public board, government agency, self-regulatory
                organization or body pending or, to the knowledge of the Company,
                threatened against or affecting the Company, the Common Stock or
                the
                Subsidiary or any of the Company’s or the Subsidiary’s officers or
                directors in their capacities as
                such.

            

    

     

    
      	(t)  	
              Insurance.
                The Company and the Subsidiary are insured by insurers of recognized
                financial responsibility against such losses and risks and in such
                amounts
                as management of the Company believes to be prudent and customary
                in the
                businesses in which the Company and the Subsidiary are engaged. Neither
                the Company nor the Subsidiary has been refused any insurance coverage
                sought or applied for and neither the Company nor the Subsidiary
                has any
                reason to believe that it will not be able to renew its existing
                insurance
                coverage as and when such coverage expires or to obtain similar coverage
                from similar insurers as may be necessary to continue its business
                at a
                cost that would not have a Material Adverse
                Effect.

            

    

     

    
      	(u)  	
              Employee
                Relations.
                Neither the Company nor the Subsidiary is a party to any collective
                bargaining agreement or employs any member of a union. The Company
                and the
                Subsidiary believe that their relations with their employees are
                good. No
                executive officer of the Company or the Subsidiary (as defined in
                Rule
                501(f) of the Securities Act) has notified the Company or the Subsidiary
                that such officer intends to leave the Company or otherwise terminate
                such
                officer’s employment with the Company or the Subsidiary. No executive
                officer of the Company or the Subsidiary, to the knowledge of the
                Company,
                is, or is now expected to be, in violation of any material term of
                any
                employment contract, confidentiality, disclosure or proprietary
                information agreement, non-competition agreement, or any other contract
                or
                agreement or any restrictive covenant, and the continued employment
                of
                each such executive officer does not subject the Company or the Subsidiary
                to any liability with respect to any of the foregoing matters. The
                Company
                and the Subsidiary are in compliance with all federal, state, local
                and
                foreign laws and regulations respecting labor, employment and employment
                practices and benefits, terms and conditions of employment and wages
                and
                hours, except where failure to be in compliance would not, either
                individually or in the aggregate, reasonably be expected to result
                in a
                Material Adverse Effect. 

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	(v)  	
              Title.
                The Company and the Subsidiary have good and marketable title in
                fee
                simple to all real property and good and marketable title to all
                personal
                property owned by them which is material to the business of the Company
                and the Subsidiary, in each case free and clear of all liens, encumbrances
                and defects except such as do not materially affect the value of
                such
                property and do not interfere with the use made and proposed to be
                made of
                such property by the Company and the Subsidiary. Any real property
                and
                facilities held under lease by the Company and the Subsidiary are
                held by
                them under valid, subsisting and enforceable leases with such exceptions
                as are not material and do not interfere with the use made and proposed
                to
                be made of such property and buildings by the Company and the
                Subsidiary.

            

    

     

    
      	(w)  	
              Intellectual
                Property Rights.
                The Company and the Subsidiary own or possess adequate rights or
                licenses
                to use all trademarks, trade names, service marks, service mark
                registrations, service names, patents, patent rights, copyrights,
                inventions, licenses, approvals, governmental authorizations, trade
                secrets and other intellectual property rights (“Intellectual
                Property Rights”)
                necessary to conduct their respective businesses as now conducted.
                None of
                the Company’s Intellectual Property Rights have expired or terminated, or
                are expected to expire or terminate, within three years from the
                date of
                this Warrant. The Company does not have any knowledge of any infringement
                by the Company or the Subsidiary of Intellectual Property Rights
                of
                others. There is no claim, action or proceeding being made or brought,
                or
                to the knowledge of the Company, being threatened, against the Company
                or
                the Subsidiary regarding its Intellectual Property Rights. The Company
                is
                unaware of any facts or circumstances which might give rise to any
                of the
                foregoing infringements or claims, actions or proceedings. The Company
                and
                the Subsidiary have taken reasonable security measures to protect
                the
                secrecy, confidentiality and value of all of their intellectual
                properties. 

            

    

     

    
      	(x)  	
              Environmental
                Laws.
                The Company and the Subsidiary (i) are in compliance with any and
                all
                Environmental Laws (as hereinafter defined), (ii) have received all
                permits, licenses or other approvals required of them under applicable
                Environmental Laws to conduct their respective businesses and (iii)
                are in
                compliance with all terms and conditions of any such permit, license
                or
                approval where, in each of the foregoing clauses (i), (ii) and (iii),
                the
                failure to so comply could be reasonably expected to have, individually
                or
                in the aggregate, a Material Adverse Effect. The term “Environmental
                Laws”
                means all federal, state, local or foreign laws relating to pollution
                or
                protection of human health or the environment (including, without
                limitation, ambient air, surface water, groundwater, land surface
                or
                subsurface strata), including, without limitation, laws relating
                to
                emissions, discharges, releases or threatened releases of chemicals,
                pollutants, contaminants, or toxic or hazardous substances or wastes
                (collectively, “Hazardous
                Materials”) into
                the environment, or otherwise relating to the manufacture, processing,
                distribution, use, treatment, storage, disposal, transport or handling
                of
                Hazardous Materials, as well as all authorizations, codes, decrees,
                demands or demand letters, injunctions, judgments, licenses, notices
                or
                notice letters, orders, permits, plans or regulations issued, entered,
                promulgated or approved thereunder.

            

    

     

    
      
        
        

      

      
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      	(y)  	
              Subsidiary
                Rights.
                The Company has the unrestricted right to vote, and (subject to
                limitations imposed by applicable law) to receive dividends and
                distributions on, all capital securities of the Subsidiary as owned
                by the
                Company.

            

    

     

    
      	(z)  	
              Tax
                Status.
                The Company and the Subsidiary (i) has made or filed all foreign,
                federal
                and state income and all other tax returns, reports and declarations
                required by any jurisdiction to which it is subject, (ii) has paid
                all
                taxes and other governmental assessments and charges that are material
                in
                amount, shown or determined to be due on such returns, reports and
                declarations, except those being contested in good faith and (iii)
                has set
                aside on its books provision reasonably adequate for the payment
                of all
                taxes for periods subsequent to the periods to which such returns,
                reports
                or declarations apply. There are no unpaid taxes in any material
                amount
                claimed to be due by the taxing authority of any jurisdiction, and
                the
                officers of the Company know of no basis for any such
                claim.

            

    

     

    
      	(aa)  	
              Internal
                Accounting Controls.
                The Company and the Subsidiary maintain a system of internal accounting
                controls sufficient to provide reasonable assurance that (i) transactions
                are executed in accordance with management’s general or specific
                authorizations, (ii) transactions are recorded as necessary to permit
                preparation of financial statements in conformity with generally
                accepted
                accounting principles and to maintain asset and liability accountability,
                (iii) access to assets or incurrence of liabilities is permitted
                only in
                accordance with management’s general or specific authorization and (iv)
                the recorded accountability for assets and liabilities is compared
                with
                the existing assets and liabilities at reasonable intervals and
                appropriate action is taken with respect to any
                difference.

            

    

     

    4.2 Use
      of
      Proceeds.
      Except
      for the application of $500,000 to pay existing Indebtedness, the Company will
      apply the net proceeds from the sale of the Common Stock pursuant to the Private
      Placement Memorandum for general corporate purposes. 

    

    4.3 Limitation
      on Indebtedness.
      Until
      such time as the Company has consummated an Initial Public Offering, the Company
      shall not, and shall not permit the Subsidiary to, incur, create, issue, assume,
      guarantee or otherwise become liable for any outstanding Indebtedness in an
      aggregate principal amount in excess of $1,000,000.

    

    
      	
              5.

            	
              Representations
                and Covenants of the Holder.
                This Warrant has been entered into by the Company in reliance upon
                the
                following representations and covenants of the
                Holder:

            

    

     

    5.1 Investment
      Purpose.
      The
      Warrant and the Warrant Stock will be acquired for investment and not with
      a
      view to the sale or distribution of any part thereof, and the Holder has no
      present intention of selling or engaging in any public distribution of the
      same
      except pursuant to a registration or exemption pursuant to the Securities
      Act. 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    5.2
      Financial
      Risk.
      The
      Holder has such knowledge and experience in financial and business matters
      as to
      be capable of evaluating the merits and risks of its investment, and has the
      ability to bear the economic risks of its investment.

     

    5.3 Risk
      of No Registration.
      The
      Holder understands that if the Company does not register the Warrant Stock
      pursuant to Securities Act, or if a registration statement covering the Warrant
      Stock is not in effect when it desires to sell the Warrant Stock, it may be
      required to hold such securities for an indefinite period. The Holder also
      understands that any sale of the Warrant Stock which might be made by it in
      reliance upon Rule 144 may be made only in accordance with the terms and
      conditions of that Rule.

     

    5.4 Unregistered
      Securities.
      The
      Holder acknowledges that the Warrant Stock has not been registered under the
      Securities Act, as amended, and the rules and regulations thereunder, or any
      successor legislation, and agrees not to sell, pledge, distribute, offer for
      sale, transfer or otherwise dispose of any Warrant Stock in the absence of
      (i)
      an effective registration statement under the Securities Act covering the
      Warrant Stock and registration or qualification of the Warrant Stock under
      any
      applicable “blue sky” or state securities law then in effect, or (ii) an opinion
      of counsel, satisfactory to the Company, that such registration and
      qualification are not required. The Company may delay issuance of the Warrant
      Stock until completion of any action or obtaining of any consent, which the
      Company deems necessary under any applicable law (including without limitation
      state securities or “blue sky” laws).

     

    5.5 Legend.
      Certificates delivered to the Holder pursuant to Section 1 shall bear the
      following legend or a legend in substantially similar form:

     

    
      	 	 	
              “THE
                SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
                THE
                SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
                LAWS.
                THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
                ASSIGNED,
                INCLUDING BY A PLEDGE, (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
                STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
                AMENDED,
                OR APPLICABLE STATE SECURITIES LAWS OR (B) AN OPINION OF COUNSEL,
                IN A
                FORM AND FROM COUNSEL GENERALLY AND REASONABLY ACCEPTABLE TO THE
                COMPANY,
                THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
                SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
                ACT.
                NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
                WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE SECURITIES.
                

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              THE
                CORPORATION IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OR SERIES
                OF STOCK.
                THE CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO
                SO
                REQUESTS THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE,
                PARTICIPATING, OPTIONAL, OR OTHER SPECIAL RIGHTS OF EACH CLASS OF
                STOCK OR
                SERIES THEREOF, AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS
                OF
                SUCH PREFERENCES AND/OR RIGHTS.”

            

    

     

    The
      legend set forth above shall be removed and the Company shall issue a
      certificate without such legend to the holder of the Warrant Stock upon which
      it
      is stamped, if, unless otherwise required by state securities laws, (i) such
      Warrant Stock are registered for resale under the Securities Act, (ii) in
      connection with a sale, assignment or other transfer, such holder provides
      the
      Company with an opinion of counsel, in a generally acceptable form, to the
      effect that such sale, assignment or transfer of the Warrant Stock may be made
      without registration under the applicable requirements of the Securities Act,
      or
      (iii) such holder provides the Company with reasonable assurance that the
      Warrant Stock can be sold, assigned or transferred pursuant to Rule 144 or
      Rule
      144A of the Securities Act.

    

    
      	
              6.

            	
              Reservation
                of Stock.
                The Company will at all times reserve and keep available, solely
                for
                issuance and delivery upon the exercise of this Warrant, such shares
                of
                Common Stock and other stock, securities and property, as from time
                to
                time shall be issuable upon the exercise of this Warrant. The Company
                covenants that all shares of Common Stock so issuable will, when
                issued,
                be duly and validly issued and fully paid and
                nonassessable.

            

    

     

    
      	
              7.

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

            

    

     

    
      	
              8.

            	
              Transferability.
                This Warrant may be offered for sale, sold, transferred or assigned,
                in
                whole or in part, without the consent of the Company. If this Warrant
                is
                to be transferred, the Holder shall surrender this Warrant to the
                Company,
                whereupon the Company will forthwith issue and deliver upon the order
                of
                the Holder a new Warrant, registered as the Holder may request,
                representing the right to purchase the number of Warrant Stock being
                transferred by the Holder and, if less then the total number of shares
                of
                Warrant Stock then underlying this Warrant is being transferred,
                a new
                Warrant to the Holder representing the right to purchase the number
                of
                shares of Warrant Stock not being
                transferred.

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              No
                Rights as Stockholder.
                Until the exercise of this Warrant, the Holder shall not have or
                exercise
                any rights by virtue hereof as a stockholder of the
                Company.

            

    

     

    
      	
              10.

            	
              Notices.
                All notices, requests and other communications hereunder shall be
                in
                writing, shall be either (i) delivered by hand, (ii) made by telex,
                telecopy or facsimile transmission, (iii) sent by overnight courier,
                or
                (iv) sent by registered mail, postage prepaid, return receipt requested.
                

            

    

     

    All
      notices to the Holder shall be delivered to Holder at:

    

    Highbridge
      Capital Management, LLC

    9
      West
      57th
      Street,
      27th
      Floor

    New
      York,
      NY 10019

    Tel:
      212-287-4720

    Fax:
      212-751-0755

    Attn:
      Ari
      J. Storch / Adam J. Chill

    

    All
      notices to the Company shall be delivered to the Company at:

    

    CampusTech,
      Inc.

    803
      Sycolin Road

    Suite
      204

    Leesburg,
      VA 20175 

    Tel:
      703-777-9110 x110

    Fax:
      703-777-3871

    Attn:
      Chief Executive Officer

    

    with
      a
      copy to:

    

    Mintz,
      Levin, Cohn, Ferris, Glovsky & Popeo, P.C.

    666
      Third
      Avenue

    Suite
      2500

    New
      York,
      NY 10017

    Tel:
      212-692-6768

    Fax:
      212-983-3115

    Attn:
      Ken
      Koch, Esq.

    

    All
      notices, requests and other communications hereunder shall be deemed to have
      been given (i) by hand, at the time of the delivery thereof to the receiving
      party at the address of such party described above, (ii) if made by telex,
      telecopy or facsimile transmission, at the time that receipt thereof has been
      acknowledged by electronic confirmation or otherwise, (iii) if sent by overnight
      courier, on the next business day following the day such notices is delivered
      to
      the courier service, or (iv) if sent by registered mail, on the fifth business
      day following the day such mailing is made.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
              11.

            	
              Waivers
                and Modifications.
                Any term or provision of this Warrant may be waived only by written
                document executed by the party entitled to the benefits of such terms
                or
                provisions. The terms and provisions of this Warrant may be modified
                or
                amended only by written agreement executed by the parties
                hereto.

            

    

     

    
      	
              12.

            	
              Headings.
                The headings in this Warrant are for convenience of reference only
                and
                shall in no way modify or affect the meaning or construction of any
                of the
                terms or provisions of this
                Warrant.

            

    

     

    
      	
              13.
                

            	
              Governing
                Law.
                This Warrant will be governed by and construed in accordance with
                and
                governed by the law of the State of Delaware, without giving effect
                to the
                conflict of law principles thereof.

            

    

     

    
      	
              14.

            	
              Indemnification.
                In consideration of the Holder’s execution and delivery of the
                Subscription Agreement, and acquiring the Subscription Shares and
                the
                Warrants thereunder and in addition to all of the Company’s other
                obligations under the Transaction Documents, the Company shall defend,
                protect, indemnify and hold harmless the Holder and each other holder
                of
                the Common Stock or this Warrant and all of their stockholders, partners,
                members, officers, directors, employees and direct or indirect investors
                and any of the foregoing Persons’ agents or other representatives
                (including, without limitation, those retained in connection with
                the
                transactions contemplated by the Transaction Documents) (collectively,
                the
                “Indemnitees”)
                from and against any and all actions, causes of action, suits, claims,
                losses, costs, penalties, fees, liabilities and damages, and expenses
                in
                connection therewith (irrespective of whether any such Indemnitee
                is a
                party to the action for which indemnification hereunder is sought),
                and
                including reasonable attorneys’ fees and disbursements (the “Indemnified
                Liabilities”),
                incurred by any Indemnitee as a result of, or arising out of, or
                relating
                to (a) any misrepresentation or breach of any representation or warranty
                made by the Company in the Transaction Documents or any other certificate,
                instrument or document contemplated hereby or thereby, (b) any breach
                of
                any covenant, agreement or obligation of the Company contained in
                the
                Transaction Documents or any other certificate, instrument or document
                contemplated hereby or thereby or (c) any cause of action, suit or
                claim
                brought or made against such Indemnitee by a third party (including
                for
                these purposes a derivative action brought on behalf of the Company)
                and
                arising out of or resulting from (i) the execution, delivery, performance
                or enforcement of the Transaction Documents or any other certificate,
                instrument or document contemplated hereby or thereby, (ii) any
                transaction financed or to be financed in whole or in part, directly
                or
                indirectly, with the proceeds of the issuance of the Common Stock,
                or
                (iii) the status of such holder of the Common Stock as an investor
                in the
                Company pursuant to the transactions contemplated by Transaction
                Documents. To the extent that the foregoing undertaking by the Company
                may
                be unenforceable for any reason, the Company shall make the maximum
                contribution to the payment and satisfaction of each of the Indemnified
                Liabilities which is permissible under applicable law. Except as
                otherwise
                set forth herein, the mechanics and procedures with respect to the
                rights
                and obligations under this Section 14 shall be the same as those
                set forth
                in Section 5 of the Registration Rights
                Agreement.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
              15.

            	
              Dispute
                Resolution.
                In the case of a dispute as to the determination of fair market value,
                the
                Base Price, the Purchase Price or the arithmetic calculation of the
                number
                of shares of Warrant Stock, the Company shall submit the disputed
                determinations or arithmetic calculations via facsimile within two
                (2)
                business days of receipt of the Notice of Exercise giving rise to
                such
                dispute, as the case may be, to the Holder. If the Holder and the
                Company
                are unable to agree upon such determination or calculation of fair
                market
                value, the Base Price or the Warrant Stock within three (3) business
                days
                of such disputed determination or arithmetic calculation being submitted
                to the Holder, then the Company shall, within two (2) business days
                submit
                via facsimile (a) the disputed determination of fair market value
                or the
                Base Price to an independent, reputable investment bank selected
                by the
                Company and approved by the Holder or (b) the disputed arithmetic
                calculation of the Warrant Stock to the Company’s independent, outside
                accountant. The Company shall cause at its expense the investment
                bank or
                the accountant, as the case may be, to perform the determinations
                or
                calculations and notify the Company and the Holder of the results
                no later
                than ten (10) business days from the time it receives the disputed
                determinations or calculations. Such investment bank’s or accountant’s
                determination or calculation, as the case may be, shall be binding
                upon
                all parties absent demonstrable
                error.

            

    

     

    
      	
              16.

            	
              Certain
                Definitions.
                For purposes of this Warrant, the following terms shall have the
                following
                meanings:

            

    

     

    
      	 	
              (i)
                

            	
              “Closing
                Bid Price”
                or “Closing
                Sale Price”
                shall mean, for any security as of any date, the last closing bid
                price
                and last closing trade price, respectively, for such security on
                any of
                the following markets or exchanges on which the Common Stock is listed
                or
                quoted for trading on the date in question: the Nasdaq Capital Market,
                the
                American Stock Exchange, the New York Stock Exchange or the Nasdaq
                National Market (any of the foregoing, the “Trading
                Market”),
                as reported by Bloomberg, or, if the Trading Market begins to operate
                on
                an extended hours basis and does not designate the closing bid price
                or
                the closing trade price, as the case may be, then the last bid price
                or
                last trade price, respectively, of such security prior to 4:00:00
                p.m.,
                New York time, as reported by Bloomberg, or, if the Trading Market
                is not
                the principal securities exchange or trading market for such security,
                the
                last closing bid price or last trade price, respectively, of such
                security
                on the principal securities exchange or trading market where such
                security
                is listed or traded as reported by Bloomberg, or if the foregoing
                do not
                apply, the last closing bid price or last trade price, respectively,
                of
                such security in the over-the-counter market on the electronic bulletin
                board for such security as reported by Bloomberg, or, if no closing
                bid
                price or last trade price, respectively, is reported for such security
                by
                Bloomberg, the average of the bid prices, or the ask prices, respectively,
                of any market makers for such security as reported in the “pink sheets” by
                Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If
                the
                Closing Bid Price or the Closing Sale Price cannot be calculated
                for a
                security on a particular date on any of the foregoing bases, the
                Closing
                Bid Price or the Closing Sale Price, as the case may be, of such
                security
                on such date shall be the fair market value as mutually determined
                in good
                faith by the Company and the Holder. If the Company and the Holder
                are
                unable to agree upon the fair market value of such security, then
                such
                dispute shall be resolved pursuant to Section 15. All such determinations
                to be appropriately adjusted for any stock dividend, stock split,
                stock
                combination or other similar transaction during the applicable calculation
                period.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              “Convertible
                Securities”
                means any stock or securities (other than Options) directly or indirectly
                convertible into or exercisable or exchangeable for shares of Common
                Stock.

            

    

     

    
      	 	
              (iii)
                

            	
              “Initial
                Public Offering”
                shall mean the sale of the Company’s securities pursuant to a registration
                statement filed by the Company under the Securities Act in connection
                with
                the initial firm commitment underwritten offering of its securities
                to the
                general public in which the Company receives gross proceeds of at
                least
                $10,000,000 and which reflects an equity valuation of
                $50,000,000.

            

    

     

    
      	 	
              (iv)

            	
              “Options”
                means any rights, warrants or options to subscribe for or purchase
                shares
                of Common Stock or Convertible
                Securities.

            

    

     

    
      	 	
              (v)

            	
              “Parent
                Entity”
                of a Person means an entity that, directly or indirectly, controls
                the
                applicable Person.

            

    

     

    
      	 	
              (vi)

            	
              “Person”
                means an individual, a limited liability company, a partnership,
                a joint
                venture, a corporation, a trust, an unincorporated organization,
                any other
                entity and a government or any department or agency
                thereof.

            

    

     

    
      	 	
              (vii)

            	
              “Successor
                Entity”
                means the Person (or, if so elected by the Holder, the Parent Entity)
                formed by, resulting from or surviving any Fundamental Transaction
                or the
                Person (or, if so elected by the Holder, the Parent Entity) with
                which
                such Fundamental Transaction shall have been entered
                into.

            

    

     

    
      	 	
              (viii)

            	
              “Trading
                Day”
                shall mean any day on which the Common Stock are traded on the Trading
                Market, or, if the Trading Market is not the principal trading market
                for
                the Common Stock, then on the principal securities exchange or securities
                market on which the Common Stock are then traded; provided that
                “Trading
                Day”
                shall not include any day on which the Common Stock are scheduled
                to trade
                on such exchange or market for less than 4.5 hours or any day that
                the
                Common Stock are suspended from trading during the final hour of
                trading
                on such exchange or market (or if such exchange or market does not
                designate in advance the closing time of trading on such exchange
                or
                market, then during the hour ending at 4:00:00 p.m., New York
                Time).

            

    

     

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as
      of
      this 11th
      of
      April, 2006.

     

    

     

    CampusTech,
      Inc., a Delaware corporation

     

    By:
      /s/ Robert S.
      Frank                                    
   

    
      	 	 	 	 	 	 	
              Name:
                Robert S. Frank

            

    

    
      	 	 	 	 	 	 	
              Title:
                President

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    NOTICE
      OF EXERCISE

     

    To:
      CampusTech, Inc.  

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant (No.
      W- ),
      hereby
      irrevocably elects to purchase  
      shares
      of the common stock, par value $0.0001 per share (the “Common Stock”), of
      CampusTech, Inc., covered by such Warrant. The Holder intends that payment
      of
      the Purchase Price shall be made as:

     

    _____ a
“cash
      exercise” with respect to _________________ shares of Warrant Stock;
      and/or

     

    _____ a
      “cashless exercise” with respect to _________________ shares of Warrant
      Stock.

     

    The
      Company shall deliver to the holder _________________ shares of Warrant Stock
      in
      accordance with the terms of the Warrant. Capitalized terms used herein and
      not
      otherwise defined shall have the respective meanings set forth in the
      Warrant.

     

    

     

    By:                                                          
                         

     

    Name:
      _______________________________

    
      	 	 	 	 	 	 	
              Title:
                ________________________________

            

    

    Date: ________________________________

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