Document:

Unassociated Document

     

    IRREVOCABLE
      TRANSFER AGENT INSTRUCTIONS

     

    March
      16,
      2007

    

     

    Continental
      Stock Transfer & Trust Company

    2
      Broadway

    New
      York,
      New York 10004

     

    RE: COMPLIANCE
      SYSTEMS CORPORATION

    

    Ladies
      and Gentlemen:

    

     

    Reference
      is made to that certain Securities Purchase Agreement (the “Securities
      Purchase Agreement”)
      of
      even date herewith by and between Compliance Systems Corporation, a Nevada
      corporation (the “Company”),
      and
      the Buyers set forth on Schedule I attached thereto (collectively the
“Buyers”)
      and
      that certain Pledge and Escrow Agreement (the “Pledge
      Agreement”)
      of
      even date herewith among the Company, the Buyers and David Gonzalez, as escrow
      agent (the “Escrow
      Agent”).
      Pursuant to the Securities Purchase Agreement, the Company shall sell to the
      Buyers, an the Buyers shall purchase from the Company, convertible debentures
      (collectively, the “Debentures”)
      in the
      aggregate principal amount of One Hundred Fifty Thousand Dollars ($150,000),
      plus accrued interest, which are convertible into shares of the Company’s common
      stock, par value $0.001 per share (the “Common
      Stock”),
      at
      the Buyers discretion. These instructions relate to the following stock or
      proposed stock issuances or transfers:

     

     

    
      	 	
              1.

            	
              The
                Company has agreed to issue to the Buyers shares of the Company’s Common
                Stock upon conversion of the Debentures (“Conversion
                Shares”)
                plus the shares of Common Stock to be issued to the Buyers upon conversion
                of accrued interest and liquidated damages into Common Stock (the
                “Interest
                Shares”)
                

            

    

     

     

    
      	 	
              2.

            	
              The
                Company has prepared, or will promptly prepare, a stock certificate
                representing shares (the “Escrowed
                Shares”)
                of the Company’s Common Stock, in the Company’s name, that have been or
                are being delivered to the Escrow Agent pursuant to the Pledge Agreement.
                

            

    

     

    This
      letter shall serve as our irrevocable authorization and direction to Continental
      Stock Transfer & Trust Company (provided that you are acting as Transfer
      Agent of the Company at such time) (the “Transfer
      Agent”)
      to do
      the following:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              1.

            	
              Conversion
                Shares.
                

            

    

     

    
      	 	
              a.

            	
              Instructions
                Applicable to Transfer Agent.
                With respect to the Conversion Shares and the Interest Shares, the
                Transfer Agent shall issue the Conversion Shares and the Interest
                Shares
                to the Buyers from time to time upon delivery to the Transfer Agent
                of a
                properly completed and duly executed Conversion Notice (the “Conversion
                Notice”),
                in the form attached hereto as Exhibit I,
                delivered on behalf of the Company to the Transfer Agent by the Escrow
                Agent. Upon receipt of a Conversion Notice, the Transfer Agent shall
                within three (3) Trading Days thereafter (i) issue and surrender
                to a
                common carrier for overnight delivery to the address as specified
                in the
                Conversion Notice, a certificate, registered in the name of the Buyers
                or
                their designees, for the number of shares of Common Stock to which
                the
                Buyers shall be entitled as set forth in the Conversion Notice or
                (ii)
                provided Transfer Agent are participating in The Depository Trust
                Company
                (“DTC”)
                Fast Automated Securities Transfer Program, upon the request of the
                Buyers, credit such aggregate number of shares of Common Stock to
                which
                the Buyers shall be entitled to the Buyers’ or their designees’ balance
                account with DTC through its Deposit Withdrawal At
                Custodian (“DWAC”)
                system provided the Buyers causes its bank or broker to initiate
                the DWAC
                transaction. For purposes hereof “Trading
                Day”
                shall mean any day on which the Nasdaq Market is open for customary
                trading.

            

    

     

    
      	 	
              b.

            	
              The
                Company hereby confirms to the Transfer Agent and the Buyers that
                certificates representing the Conversion Shares shall not bear any
                legend
                restricting transfer and should not be subject to any stop-transfer
                restrictions and shall otherwise be freely transferable on the books
                and
                records of the Company; provided
                that
                counsel to the Company delivers (i) the Notice of Effectiveness set
                forth
                in Exhibit
                II
                attached hereto and (ii) an opinion of counsel in the form set forth
                in
                Exhibit
                III
                attached hereto, and that if the Conversion Shares and the Interest
                Shares
                are not registered for sale under the Securities Act of 1933, as
                amended
                (the “Act”),
                and the Transfer Agent has received an opinion of counsel to the
                Company
                or an opinion of counsel as provided for in Section 2(b) herein that
                the
                issuances of the Conversion Shares and the Interest Shares are an
                exempt
                transaction under the Act, then the certificates for the Conversion
                Shares
                and Interest Shares shall bear the following
                legend:

            

    

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY
      ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              c.

            	
              In
                the event that counsel to the Company fails or refuses to render
                an
                opinion as required to issue the Conversion Shares in accordance
                with the
                preceding paragraph (either with or without restrictive legends,
                as
                applicable), then the Company irrevocably and expressly authorizes
                counsel
                to the Buyers to render such opinion. The Transfer Agent shall accept
                and
                be entitled to rely on such opinion for the purposes of issuing the
                Conversion Shares. 

            

    

     

    
      	 	
              d.

            	
              Instructions
                Applicable to Escrow Agent.
                Upon the Escrow Agent’s receipt of a properly completed conversion notice
                substantially in the form attached as an exhibit to the Debentures,
                the
                Escrow Agent shall, within one (1) Trading Day thereafter, send to
                the
                Transfer Agent and to the Company a Conversion Notice in the form
                attached
                hereto as Exhibit
                I,
                which shall constitute an irrevocable instruction to the Transfer
                Agent to
                process such Conversion Notice in accordance with the terms of these
                instructions.

            

    

     

    
      	 	
              2.

            	
              Escrowed
                Shares.
                

            

    

     

    
      	 	
              a.

            	
              With
                respect to the Escrowed Shares, upon an event of default as set forth
                in
                the Pledge Agreement, the Escrow Agent shall send written notice
                to the
                Transfer Agent and to the Company (“Escrow
                Notice”)
                to transfer such number of Escrow Shares as set forth in the Escrow
                Notice
                to the Buyers. Upon receipt of an Escrow Notice, the certificate
                or
                certificates representing the Escrowed Shares with appropriately
                guaranteed Stock power or powers, the Transfer Agent shall promptly
                transfer such number of Escrow Shares to the Buyers as shall be set
                forth
                in the Escrow Notice delivered to the Transfer Agent by the Escrow
                Agent.
                Further, the Transfer Agent shall promptly transfer such shares from
                the
                Buyers to any subsequent transferee promptly upon receipt of written
                notice from the Buyers or their counsel. If the Escrow Shares are
                not
                registered for sale under the Securities Act of 1933, as amended,
                and the
                Transfer Agent has received an opinion of counsel to the Company
                or an
                opinion of counsel as provided for in Section 2(b) herein that the
                issuances of the Conversion Shares and the Interest Shares are an
                exempt
                transaction under the Act, then the certificates for the Escrow Shares
                shall bear the legend set forth in Section
                1b.

            

    

     

    
      	 	
              b.

            	
              In
                the event that counsel to the Company fails or refuses to render
                an
                opinion as may be required by the Transfer Agent to affect a transfer
                of
                the Escrowed Shares (either with or without restrictive legends,
                as
                applicable), then the Company irrevocably and expressly authorizes
                counsel
                to the Buyers to render such opinion. The Transfer Agent shall accept
                and
                be entitles to rely on such opinion for the purpose of transferring
                the
                Escrow Shares. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.

            	
              All
                Shares.

            

    

     

    
      	 	
              a.

            	
              The
                Transfer Agent shall reserve for issuance to the Buyers the Conversion
                Shares. All such shares shall remain in reserve with the Transfer
                Agent
                until the Buyers provides the Transfer Agent instructions that the
                shares
                or any part of them shall be taken out of reserve and shall no longer
                be
                subject to the terms of these instructions.

            

    

     

    
      	 	
              b.

            	
              The
                Transfer Agent shall rely exclusively on the Conversion Notice or
                the
                Escrow Notice and shall have no liability for relying on such
                instructions. Any Conversion Notice or Escrow Notice delivered hereunder
                shall constitute an irrevocable instruction to the Transfer Agent
                to
                process such notice or notices in accordance with the terms thereof.
                Such
                notice or notices may be transmitted to the Transfer Agent by facsimile
                or
                any commercially reasonable method.

            

    

     

    
      	 	
              c.

            	
              The
                Company hereby confirms to the Transfer Agent and the Buyers that
                no
                instructions other than as contemplated herein will be given to Transfer
                Agent by the Company with respect to the matters referenced herein.
                The
                Company hereby authorizes the Transfer Agent, and the Transfer Agent
                shall
                be obligated, to disregard any contrary instructions received by
                or on
                behalf of the Company.

            

    

     

    Certain
      Notice Regarding the Escrow Agent.
      The
      Company and the Transfer Agent hereby acknowledge that the Escrow Agent is
      general counsel to the Buyers, a partner of the general partner of the Buyers
      and counsel to the Buyers in connection with the transactions contemplated
      and
      referred herein. The Company and the Transfer Agent agree that in the event
      of
      any dispute arising in connection with this Agreement or otherwise in connection
      with any transaction or agreement contemplated and referred herein, the Escrow
      Agent shall be permitted to continue to represent the Buyers and neither the
      Company nor the Transfer Agent will seek to disqualify such
      counsel.

     

    The
      Company hereby agrees that it shall not replace the Transfer Agent as the
      Company’s transfer agent without the prior written consent of the
      Buyers.

     

    The
      Company agrees that in the event that the Transfer Agent resigns as the
      Company’s transfer agent the Company shall engage a suitable replacement
      Transfer Agent that will agree to serve as transfer agent and to be bound by
      the
      terms and conditions of these Irrevocable Transfer Agent
      Instructions.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company hereby confirms and the Transfer Agent acknowledges that while any
      portion of the Debenture
      remains unpaid and unconverted, the Company and the
      Transfer Agent
      shall
      not, without the prior consent of the Buyers, (i) issue any Common Stock or
      Preferred Stock without consideration or for a consideration per share less
      than
      its closing bid price determined immediately prior to its issuance,
      (ii) issue any Preferred Stock, warrant, option, right, contract, call, or
      other security or instrument granting the holder thereof the right to acquire
      Common Stock without consideration or for a consideration per share less than
      the closing bid price of such Common Stock determined immediately prior to
      its
      issuance, (iii)
      issue any S-8
      shares of the Company’s Common Stock.

     

     The
      Company acknowledges and confirms that complying with the terms of this
      Agreement does not and shall not prohibit the Transfer Agent from satisfying
      any
      and all responsibilities and duties it may owe to the Company.

     

    The
      Company acknowledges that the Buyers is relying on the representations and
      covenants made by the Company hereunder and are a material inducement to the
      Buyers purchasing convertible debentures under the Securities Purchase
      Agreement. The Company further acknowledges that without such representations
      and covenants of the Company and the Transfer Agent made hereunder, the Buyers
      would not purchase the Debentures.

     

    Each
      party hereto specifically acknowledges and agrees that in the event of a breach
      or threatened breach by a party hereto of any provision hereof, the Buyers
      will
      be irreparably damaged and that damages at law would be an inadequate remedy
      if
      these Irrevocable Transfer Agent Instructions were not specifically enforced.
      Therefore, in the event of a breach or threatened breach by a party hereto,
      including, without limitation, the attempted termination of the agency
      relationship created by this instrument, the Buyers shall be entitled, in
      addition to all other rights or remedies, to an injunction restraining such
      breach, without being required to show any actual damage or to post any bond
      or
      other security, and/or to a decree for specific performance of the provisions
      of
      these Irrevocable Transfer Agent Instructions.

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this letter agreement regarding Irrevocable Transfer Agent
      Instructions to be duly executed and delivered as of the date first written
      above.

     

    
      	 	
              COMPANY:

            
	 	 
	 	
              COMPLIANCE
                SYSTEMS CORPORATION

            
	 	 
	 	
              By: /s/
                Dean Garfinkel     

            
	 	
              
                

                Name: Dean
                Garfinkel

            
	 	
              Title: Chairman

            
	 	 
	 	 
	 	/s/ David
              Gonzalez,
              Esq.
	 	
              
                

                David Gonzalez, Esq.

            
	 	 
	 	 

    

    CONTINENTAL
      STOCK TRANSFER & TRUST COMPANY

    

    By: /s/
      Authorize Person     

    Name:
      /s/ Authorize Person

    Title: Officer      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

     

    SCHEDULE
      OF BUYERS 

     

    
      	
              Name

            	
              Signature

            	
              Address/Facsimile
                

              Number
                of Buyers

            
	 	 	 
	
              Cornell
                Capital Partners, L.P. 

            	
              By: Yorkville
                Advisors, LLC

            	
              101
                Hudson Street - Suite 3700

            
	 	
              Its: Investment
                Manager

            	
              Jersey
                City, NJ 07303

            
	 	 	
              Facsimile:
                 (201)
                985-8266

            
	 	 	 
	 	
              By: /s/
                Mark Angelo    

            	 
	 	
              
                

                Name: Mark
                Angelo

            	 
	 	
              Its: Portfolio
                Manager

            	 
	 	 	 

    

    

    

      
        
          
            SCHEDULE
              I-1

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
EXHIBIT
      I

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF CONVERSION NOTICE

     

     

    Reference
      is made to the Securities Purchase Agreement (the “Securities
      Purchase Agreement”)
      between Compliance Systems Corporation, (the “Company”),
      and
      the Buyers set forth on Schedule I attached thereto dated March 16, 2007. In
      accordance with and pursuant to the Securities Purchase Agreement, the
      undersigned hereby elects to convert convertible debentures into shares of
      common stock, par value $0.001 per share (the “Common
      Stock”),
      of
      the Company for the amount indicated below as of the date specified
      below.

     

    
      	
              Conversion
                Date:

            	_______________________________
	 	 
	
              Amount
                to be converted:

            	
              $
                _______________________________     

            
	 	 
	
              Conversion
                Price:

            	
              $
                _______________________________    

            
	 	 
	
              Shares
                of Common Stock Issuable:

            	 _______________________________
	 	 
	
              Amount
                of Debenture unconverted:

            	
              $
                _______________________________

            
	 	 
	
              Amount
                of Interest Converted:

            	
              $
                _______________________________

            
	 	 
	
              Conversion
                Price of Interest:

            	
              $
                _______________________________

            
	 	 
	
              Shares
                of Common Stock Issuable:

            	_______________________________
	 	 
	
              Amount
                of Liquidated Damages:

            	
              $
                _______________________________

            
	 	 
	
              Conversion
                Price of Liquidated Damages:

            	
              $
                _______________________________

            
	 	 
	
              Shares
                of Common Stock Issuable:

            	_______________________________
	 	 
	
              Total
                Number of shares of Common Stock to be issued:

            	_______________________________
	 	 

    

    

    

      
        
          
            SCHEDULE
              I-1

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    Please
      issue the shares of Common Stock in the following name and to the following
      address:

    

    
      	
              Issue
                to:

            	_______________________________
	 	 
	
              Authorized
                Signature:

            	_______________________________
	 	 
	
              Name:

            	_______________________________
	 	 
	
              Title:

            	_______________________________
	 	 
	
              Phone
                #:

            	_______________________________
	 	 
	
              Broker
                DTC Participant Code:

            	_______________________________
	 	 
	
              Account
                Number*:

            	_______________________________
	 	 

    

    

    

    *
      Note that receiving broker must initiate transaction on DWAC
      System.

    

      
        
          
            SCHEDULE
              I-2

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    EXHIBIT
      II

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF NOTICE OF EFFECTIVENESS

     

    OF
      REGISTRATION STATEMENT

     

    

    _________,
      2007

    

    ________

    

    

    Attention: 

    

    RE: COMPLIANCE
      SYSTEMS CORPORATION

    

    Ladies
      and Gentlemen:

    

    We
      are
      counsel to Compliance Systems Corporation, (the “Company”),
      and
      have represented the Company in connection with that certain Securities Purchase
      Agreement, dated as of March 16, 2007 (the “Securities
      Purchase Agreement”),
      entered into by and among the Company and the Buyers set forth on Schedule
      I
      attached thereto (collectively the “Buyers”)
      pursuant to which the Company has agreed to sell to the Buyers up to One Hundred
      Fifty Thousand Dollars ($150,000) of secured convertible debentures, which
      shall
      be convertible into shares (the “Conversion
      Shares”)
      of the
      Company’s common stock, par value $0.001 per share (the “Common
      Stock”),
      in
      accordance with the terms of the Securities Purchase Agreement. Pursuant to
      the
      Securities Purchase Agreement, the Company also has entered into a Registration
      Rights Agreement, dated as of March 16, 2007, with the Buyers (the “Investor
      Registration Rights Agreement”)
      pursuant to which the Company agreed, among other things, to register the
      Conversion Shares under the Securities Act of 1933, as amended (the
“1933
      Act”).
      In
      connection with the Company’s obligations under the Securities Purchase
      Agreement and the Registration Rights Agreement, on _______, 2007, the Company
      filed a Registration Statement (File No. ___-_________) (the “Registration
      Statement”)
      with
      the Securities and Exchange Commission (the “SEC”)
      relating to the sale of the Conversion Shares.

     

    In
      connection with the foregoing, we advise the Transfer Agent that a member of
      the
      SEC’s staff has advised us by telephone that the SEC has entered an order
      declaring the Registration Statement effective under the 1933 Act at ____ P.M.
      on __________, 2007 and we have no knowledge, after telephonic inquiry of a
      member of the SEC’s staff, that any stop order suspending its effectiveness has
      been issued or that any proceedings for that purpose are pending before, or
      threatened by, the SEC and the Conversion Shares are available for sale under
      the 1933 Act pursuant to the Registration Statement.

    

      
        
          
            EXHIBIT
              II-1

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

     

    The
      Buyers has confirmed it shall comply with all securities laws and regulations
      applicable to it including applicable prospectus delivery requirements upon
      sale
      of the Conversion Shares.

     

    

    Very
      truly yours,

    

     

    

    By:
      _________________________     

     

    
      
        
          EXHIBIT
            II-2

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

     

    EXHIBIT
      III

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF OPINION

     

    

    ________________
      2007

    

    VIA
      FACSIMILE AND REGULAR MAIL

    

    ________

    

    

    Attention: 

    

    RE: COMPLIANCE
      SYSTEMS CORPORATION

    

    Ladies
      and Gentlemen:

     

    We
      have
      acted as special counsel to Compliance Systems Corporation (the “Company”),
      in
      connection with the registration of ___________shares (the “Shares”)
      of its
      common stock with the Securities and Exchange Commission (the “SEC”).
      We
      have
      not acted as your counsel. This opinion is given at the request and with the
      consent of the Company.

     

    In
      rendering this opinion we have relied on the accuracy of the Company’s
      Registration Statement on Form SB-2, as amended (the “Registration
      Statement”),
      filed
      by the Company with the SEC on _________ ___, 2007. The Company filed the
      Registration Statement on behalf of certain selling stockholders (the
“Selling
      Stockholders”).
      This
      opinion relates solely
      to the
      Selling Shareholders listed on Exhibit
      “A”
      hereto
      and number of Shares set forth opposite such Selling Stockholders’ names. The
      SEC declared the Registration Statement effective on __________ ___,
      2007.

     

    We
      understand that the Selling Stockholders acquired the Shares in a private
      offering exempt from registration under the Securities Act of 1933, as amended.
      Information regarding the Shares to be sold by the Selling Shareholders is
      contained under the heading “Selling Stockholders” in the Registration
      Statement, which information is incorporated herein by reference. This opinion
      does not relate to the issuance of the Shares to the Selling Stockholders.
      The
      opinions set forth herein relate solely to the sale or transfer by the Selling
      Stockholders pursuant to the Registration Statement under the Federal laws
      of
      the United States of America. We do not express any opinion concerning any
      law
      of any state or other jurisdiction.

     

    In
      rendering this opinion we have relied upon the accuracy of the foregoing
      statements.

     

     

    
      
        
          EXHIBIT
            III-1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Based
      on
      the foregoing, it is our opinion that the Shares have been registered with
      the
      Securities and Exchange Commission under the Securities Act of 1933, as amended,
      and that ________ may remove the restrictive legends contained on the Shares.
      This opinion relates solely
      to the
      number of Shares set forth opposite the Selling Stockholders listed on
Exhibit
      “A”
      hereto.

     

     

    This
      opinion is furnished to Transfer Agent specifically in connection with the
      sale
      or transfer of the Shares, and solely for your information and benefit. This
      letter may not be relied upon by Transfer Agent in any other connection, and
      it
      may not be relied upon by any other person or entity for any purpose without
      our
      prior written consent. This opinion may not be assigned, quoted or used without
      our prior written consent. The opinions set forth herein are rendered as of
      the
      date hereof and we will not supplement this opinion with respect to changes
      in
      the law or factual matters subsequent to the date hereof.

     

    Very
      truly yours,

    

     

    
      
        
          EXHIBIT
            III-2

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      “A”

     

    (LIST
      OF SELLING STOCKHOLDERS)

     

    

    
      	
              Name:

            	 	
              No.
                of Shares:

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

    
      
        
          EXHIBIT
            A-1Unassociated Document

     

    AMENDED
      AND RESTATED

     

    IRREVOCABLE
      TRANSFER AGENT INSTRUCTIONS

     

    

    March
      16,
      2007

    

    

    
      	
              Continental
                Stock Transfer & Trust Company

            
	
              17
                Battery Place, South

              8th
                Floor

              New
                York, NY 10004

            

    

    

    RE: COMPLIANCE
      SYSTEMS CORPORATION (f/k/a GSA PUBLISHING, INC.)

    

    Ladies
      and Gentlemen:

     

    The
      parties hereto entered into Irrevocable Transfer Agent Instructions on November
      30, 2005 (the “November
      Agreement”)
      and
      amended the Irrevocable Transfer Agent Instructions on March 8, 2006 (the
“March
      2006 Agreement”).
      This
      Amended and Restated Irrevocable Transfer Agent Instructions (the “March
      2007 Agreement”)
      shall
      amend and replace the November Agreement and March 2006 Agreement. Reference
      is
      made to that certain Securities Purchase Agreement (the “November
      Securities Purchase Agreement”)
      dated
      November 30, 2005 by and between Compliance Systems Corporation (f/k/a GSA
      Publishing, Inc.), a Nevada corporation (the “Company”),
      and
      the Buyers set forth on Schedule I attached thereto (collectively the
“Buyers”)
      and
      those certain Pledge and Escrow Agreements (collectively, the “November
      Pledge Agreements”)
      between each of (i) the Company, (ii) Dean Garfinkel, and (iii) Barry
      Brookstein, and the Buyers and David Gonzalez, as escrow agent (the
“Escrow
      Agent”).
      Pursuant to the November Securities Purchase Agreement, the Company has sold
      to
      the Buyers, and the Buyers have purchased from the Company, a convertible
      debenture (the “November
      Debenture”)
      in the
      aggregate principal amount of Six Hundred Thousand Dollars ($600,000), plus
      accrued interest. On March 8, 2006, the Company and the Buyers terminated the
      November Securities Purchase Agreement, November Pledge Agreements and November
      Debenture and entered into a Securities Purchase Agreement dated March 8, 2006
      (the “March
      Securities Purchase Agreement”),
      certain Pledge and Escrow Agreements (collectively, the “March
      Pledge Agreements”)
      between each of the (i) Company, (ii) Dean Garfinkel, and (iii) Barry Brookstein
      and the Buyers and David Gonzalez as escrow Agent (the “Escrow
      Agent”).
      Pursuant to the March Securities Purchase Agreement the Company sold to the
      Buyers and the Buyers purchased from the Company a convertible debenture (the
      “March
      Debenture”)
      in the
      aggregate principal amount of One Million Dollars ($1,000,000) (of which Six
      Hundred Thousand Dollars {$600,000} was previously funded pursuant to the
      terminated November Debenture), which is convertible into shares of the
      Company’s common stock, par value $0.001 per share (the “Common
      Stock”),
      at
      the Buyers discretion. These instructions relate to the proposed stock issuances
      or transfers related to the March Debenture. The purpose of this March 2007
      Agreement is to record the change in the Company’s Stock Transfer Agent
      effective October
      16, 2006,
      to
      Continental Stock Transfer & Trust Company, 17 Battery Place South,
      8th
      Floor,
      New York, NY 10004. 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              1.

            	
              The
                Company has agreed to issue to the Buyers shares of the Company’s Common
                Stock upon conversion of the March Debenture (“Conversion
                Shares”)
                plus the shares of Common Stock to be issued to the Buyers upon conversion
                of accrued interest and liquidated damages into Common Stock (the
                “Interest
                Shares”)
                

            

    

     

     

    
      	 	
              2.

            	
              The
                Company, Dean Garfinkel and Barry Brookstein have prepared a stock
                certificate (or the stock certificates, as necessary) representing
                shares
                (the “Escrowed
                Shares”)
                of the Common Stock that have been delivered to the Escrow Agent
                pursuant
                to the March Pledge Agreements. 

            

    

     

    This
      letter shall serve as our irrevocable authorization and direction to Continental
      Stock Transfer & Trust Company (provided that you are acting as Transfer
      Agent of the Company at such time) (the “Transfer
      Agent”)
      to do
      the following:

     

    
      	 	
              1.

            	
              Conversion
                Shares.
                

            

    

     

     

    
      	 	
              a.

            	
              Instructions
                Applicable to Transfer Agent.
                With respect to the Conversion Shares and the Interest Shares, the
                Transfer Agent shall issue the Conversion Shares and the Interest
                Shares
                to the Buyers from time to time upon delivery to the Transfer Agent
                of a
                properly completed and duly executed Conversion Notice (the “Conversion
                Notice”),
                in the form attached hereto as Exhibit I,
                delivered on behalf of the Company to the Transfer Agent by the Escrow
                Agent with a copy being provided to the Company. Upon receipt of
                a
                Conversion Notice, the Transfer Agent shall within three (3) Trading
                Days
                thereafter (i) issue and surrender to a common carrier for overnight
                delivery to the address as specified in the Conversion Notice, a
                certificate, registered in the name of the Buyers or their designees,
                for
                the number of shares of Common Stock to which the Buyers shall be
                entitled
                as set forth in the Conversion Notice or (ii) provided Transfer Agent
                are
                participating in The Depository Trust Company (“DTC”)
                Fast Automated Securities Transfer Program, upon the request of the
                Buyers, credit such aggregate number of shares of Common Stock to
                which
                the Buyers shall be entitled to the Buyers’ or their designees’ balance
                account with DTC through its Deposit Withdrawal At
                Custodian (“DWAC”)
                system provided the Buyers causes its bank or broker to initiate
                the DWAC
                transaction. For purposes hereof “Trading
                Day”
                shall mean any day on which the Nasdaq Market is open for customary
                trading.

            

    

     

     

    
      	 	
              b.

            	
              The
                Company hereby confirms to the Transfer Agent and the Buyers that
                certificates representing the Conversion Shares shall not bear any
                legend
                restricting transfer and should not be subject to any stop-transfer
                restrictions and shall otherwise be freely transferable on the books
                and
                records of the Company; provided
                that
                counsel to the Company delivers (i) the Notice of Effectiveness set
                forth
                in Exhibit
                II
                attached hereto and (ii) an opinion of counsel in the form set forth
                in
                Exhibit
                III
                attached hereto, and that if the Conversion Shares and the Interest
                Shares
                are not registered for sale under the Securities Act of 1933, as
                amended
                (the “Act”)
                and the Transfer Agent has received an opinion of counsel to the
                Company
                or an opinion of counsel as provided for in Section 2(b) herein that
                the
                issuances of the Conversion Shares and the Interest Shares are an
                exempt
                transaction under the Act, then the certificates for the Conversion
                Shares
                and Interest Shares shall bear the following
                legend:

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY
      ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT.”

     

     

    
      	 	
              c.

            	
              In
                the event that counsel to the Company fails or refuses to render
                an
                opinion as required to issue the Conversion Shares in accordance
                with the
                preceding paragraph (either with or without restrictive legends,
                as
                applicable), then the Company irrevocably and expressly authorizes
                counsel
                to the Buyers to render such opinion. The Transfer Agent shall accept
                and
                be entitled to rely on such opinion for the purposes of issuing the
                Conversion Shares. 

            

    

     

     

    
      	 	
              d.

            	
              Instructions
                Applicable to Escrow Agent.
                Upon the Escrow Agent’s receipt of a properly completed conversion notice
                substantially in the form attached as an exhibit to the March Debenture,
                the Escrow Agent shall, within one (1) Trading Day thereafter, send
                to the
                Transfer Agent and to the Company a Conversion Notice in the form
                attached
                hereto as Exhibit
                I,
                which shall constitute an irrevocable instruction to the Transfer
                Agent to
                process such Conversion Notice in accordance with the terms of these
                instructions.

            

    

     

     

    
      	 	
              2.

            	
              Escrowed
                Shares.
                

            

    

     

     

    
      	 	
              a.

            	
              With
                respect to the Escrowed Shares, upon an event of default as set forth
                in
                the Pledge Agreements, the Escrow Agent shall send written notice
                to the
                Transfer Agent and to the Company (“Escrow
                Notice”)
                to transfer such number of Escrow Shares as set forth in the Escrow
                Notice
                to the Buyers. Upon receipt of an Escrow Notice, the certificate
                or
                certificates representing the Escrowed Shares with appropriately
                guaranteed stock power or powers, the Transfer Agent shall promptly
                transfer such number of Escrow Shares to the Buyers as shall be set
                forth
                in the Escrow Notice delivered to the Transfer Agent by the Escrow
                Agent.
                Further, the Transfer Agent shall promptly transfer such shares from
                the
                Buyers to any subsequent transferee promptly upon receipt of written
                notice from the Buyers or their counsel. If the Escrow Shares are
                not
                registered for sale under the Securities Act of 1933, as amended,
                and the
                Transfer Agent has received an opinion of counsel to the Company
                or an
                opinion of counsel as provided for in Section 2(b) below that the
                transfer
                of the Escrowed Shares is an exempt transaction under the Act, then
                the
                certificates for the Escrow Shares shall bear the legend set forth
                in
                Section 1b.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	 	
              b.

            	
              In
                the event that counsel to the Company fails or refuses to render
                an
                opinion as may be required by the Transfer Agent to affect a transfer
                of
                the Escrowed Shares (either with or without restrictive legends,
                as
                applicable), then the Company irrevocably and expressly authorizes
                counsel
                to the Buyers to render such opinion. The Transfer Agent shall accept
                and
                be entitles to rely on such opinion for the purpose of transferring
                the
                Escrow Shares. 

            

    

     

     

    
      	 	
              3.

            	
              All
                Shares.

            

    

     

     

    
      	 	
              a.

            	
              The
                Transfer Agent shall reserve for issuance to the Buyers the Conversion
                Shares. All such shares shall remain in reserve with the Transfer
                Agent
                until the Buyers provides the Transfer Agent instructions that the
                shares
                or any part of them shall be taken out of reserve and shall no longer
                be
                subject to the terms of these instructions.

            

    

     

     

    
      	 	
              b.

            	
              The
                Transfer Agent shall rely exclusively on the Conversion Notice or
                the
                Escrow Notice and shall have no liability for relying on such
                instructions. Any Conversion Notice or Escrow Notice delivered hereunder
                shall constitute an irrevocable instruction to the Transfer Agent
                to
                process such notice or notices in accordance with the terms thereof.
                Such
                notice or notices may be transmitted to the Transfer Agent by facsimile
                or
                any commercially reasonable method.

            

    

     

     

    
      	 	
              c.

            	
              The
                Company hereby confirms to the Transfer Agent and the Buyers that
                no
                instructions other than as contemplated herein will be given to Transfer
                Agent by the Company with respect to the matters referenced herein.
                The
                Company hereby authorizes the Transfer Agent, and the Transfer Agent
                shall
                be obligated, to disregard any contrary instructions received by
                or on
                behalf of the Company.

            

    

     

     

    Certain
      Notice Regarding the Escrow Agent.
      The
      Company and the Transfer Agent hereby acknowledge that the Escrow Agent is
      general counsel to the Buyers, a partner of the general partner of the Buyers
      and counsel to the Buyers in connection with the transactions contemplated
      and
      referred herein. The Company and the Transfer Agent agree that in the event
      of
      any dispute arising in connection with this Agreement or otherwise in connection
      with any transaction or agreement contemplated and referred herein, the Escrow
      Agent shall be permitted to continue to represent the Buyers and neither the
      Company nor the Transfer Agent will seek to disqualify such
      counsel.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    The
      Company hereby agrees that it shall not replace the Transfer Agent as the
      Company’s transfer agent without the prior written consent of the
      Buyers.

     

    The
      Company agrees that in the event that the Transfer Agent resigns as the
      Company’s transfer agent, the Company shall engage a suitable replacement
      Transfer Agent that will agree to serve as transfer agent and to be bound by
      the
      terms and conditions of these Irrevocable Transfer Agent
      Instructions.

     

    The
      Company hereby confirms and the Transfer Agent acknowledges that while any
      portion of the Debenture
      remains unpaid and unconverted the Company and the
      Transfer Agent
      shall
      not, without the prior consent of the Buyers, (i) issue any Common Stock or
      Preferred Stock without consideration or for a consideration per share less
      than
      the closing bid price determined immediately prior to its issuance,
      (ii) issue any Preferred Stock, warrant, option, right, contract, call, or
      other security or instrument granting the holder thereof the right to acquire
      Common Stock without consideration or for a consideration per share less than
      the closing bid price of the Common Stock determined immediately prior to its
      issuance, (iii)
      issue any S-8
      shares of the Company’s Common Stock.

     

     The
      Company hereby acknowledges and confirms that complying with the terms of this
      Agreement does not and shall not prohibit the Transfer Agent from satisfying
      any
      and all responsibilities and duties it may owe to the Company.

     

    The
      Company acknowledges that the Buyers is relying on the representations and
      covenants made by the Company hereunder and are a material inducement to the
      Buyers purchasing convertible debentures under the Securities Purchase
      Agreement. The Company further acknowledges that without such representations
      and covenants of the Company and the Transfer Agent made hereunder, the Buyers
      would not purchase the March Debenture.

     

    Each
      party hereto specifically acknowledges and agrees that in the event of a breach
      or threatened breach by a party hereto of any provision hereof, the Buyers
      will
      be irreparably damaged and that damages at law would be an inadequate remedy
      if
      these Irrevocable Transfer Agent Instructions were not specifically enforced.
      Therefore, in the event of a breach or threatened breach by a party hereto,
      including, without limitation, the attempted termination of the agency
      relationship created by this instrument, the Buyers shall be entitled, in
      addition to all other rights or remedies, to an injunction restraining such
      breach, without being required to show any actual damage or to post any bond
      or
      other security, and/or to a decree for specific performance of the provisions
      of
      these Irrevocable Transfer Agent Instructions.

     

     

    [SIGNATURE
      PAGE FOLLOWS: REMAINDER OF PAGE INTENTIONALLY BLANK]

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties have caused this letter agreement regarding Irrevocable Transfer Agent
      Instructions to be duly executed and delivered as of the date first written
      above.

     

    
      	 	
              COMPANY:

            
	 	 
	 	
              COMPLIANCE
                SYSTEMS CORPORATION

              (f/k/a
                GSA Publishing, Inc.)

            
	 	 
	 	
              By: /s/ Dean
                Garfinkel     

            
	 	
              
                

                Name: Dean
                Garfinkel

            
	 	
              Title: Chairman

            
	 	 
	 	 
	 	/s/
              David Gonzalez, Esq. 	
            
	 	
              David
                Gonzalez, Esq.

            
	 	 
	 	 

    

    

    

    ACKNOWLEDGED,
      AGREED TO AND ACCEPTED:

    

    CONTINENTAL
      STOCK TRANSFER & TRUST COMPANY

    
      By: /s/
        Authorize Person     

      Name:
        /s/ Authorize Person

      Title: Officer      

    

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

     

     

    SCHEDULE
      OF BUYERS 

     

    
      	
              Name

            	
              Signature

            	
              Address/Facsimile
                

              Number
                of Buyers

            
	 	 	 
	
              Montgomery
                Equity Partners, Ltd. 

            	
              By: Yorkville
                Advisors, LLC

            	
              101
                Hudson Street - Suite 3700

            
	 	
              Its: General
                Partner

            	
              Jersey
                City, NJ 07303

            
	 	 	
              Facsimile:
                 (201)
                985-8266

            
	 	 	 
	 	
              By:
                ___________________________    

            	 
	 	
              Name: Mark
                Angelo

            	 
	 	
              Its: Portfolio
                Manager

            	 
	 	 	 

    

     

    
      
        
          SCHEDULE
            I- 1

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF CONVERSION NOTICE

     

     

    Reference
      is made to the Securities Purchase Agreement (the “Securities
      Purchase Agreement”)
      between Compliance Systems Corporation (f/k/a GSA Publishing, Inc.), (the
“Company”),
      and
      the Buyers set forth on Schedule I attached thereto dated March 8, 2006. In
      accordance with and pursuant to the Securities Purchase Agreement, the
      undersigned hereby elects to convert convertible March Debenture into shares
      of
      common stock, par value $0.001 per share (the “Common
      Stock”),
      of
      the Company for the amount indicated below as of the date specified
      below.

     

    
      	
              Conversion
                Date:

            	____________________________________
	 	 
	
              Amount
                to be converted:

            	
              $____________________________________     

            
	 	 
	
              Conversion
                Price:

            	
              $
                ____________________________________     

            
	 	 
	
              Shares
                of Common Stock Issuable:

            	____________________________________
	 	 
	
              Amount
                of Debenture unconverted:

            	
              $
                ____________________________________    

            
	 	 
	
              Amount
                of Interest Converted:

            	
              $
                ____________________________________     

            
	 	 
	
              Conversion
                Price of Interest:

            	
              $
                ____________________________________    

            
	 	 
	
              Shares
                of Common Stock Issuable:

            	____________________________________
	 	 
	
              Amount
                of Liquidated Damages:

            	
              $
                ____________________________________     

            
	 	 
	
              Conversion
                Price of Liquidated Damages:

            	
              $
                ____________________________________    

            
	 	 
	
              Shares
                of Common Stock Issuable:

            	____________________________________
	 	 
	
              Total
                Number of shares of Common Stock to be issued:

            	____________________________________
	 	 

    

    

    
      

      

      
        
          
            EXHIBIT
              I-1

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    Please
      issue the shares of Common Stock in the following name and to the following
      address:

    

    
      	
              Issue
                to:

            	____________________________________
	 	 
	
              Authorized
                Signature:

            	____________________________________
	 	 
	
              Name:

            	____________________________________
	 	 
	
              Title:

            	____________________________________
	 	 
	
              Phone
                #:

            	____________________________________
	 	 
	
              Broker
                DTC Participant Code:

            	____________________________________
	 	 
	
              Account
                Number*:

            	____________________________________
	 	 

    

    

    

    *
      Note that receiving broker must initiate transaction on DWAC
      System.

     

    
      
        
          EXHIBIT
            I-2

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      II

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF NOTICE OF EFFECTIVENESS

     

    OF
      REGISTRATION STATEMENT

     

    

    _________,
      2007

    

    _______________

    _______________

    _______________

    

    Attention:
      _______________________________ 

    

    RE: COMPLIANCE
      SYSTEMS CORPORATION (f/k/a GSA Publishing, Inc.)

    

    Ladies
      and Gentlemen:

    

    We
      are
      counsel to Compliance Systems Corporation (f/k/a GSA Publishing, Inc.), (the
      “Company”),
      and
      have represented the Company in connection with that certain Securities Purchase
      Agreement, dated as of March 8, 2006 (the “Securities
      Purchase Agreement”),
      entered into by and among the Company and the Buyers set forth on Schedule
      I
      attached thereto (collectively the “Buyers”)
      pursuant to which the Company has agreed to sell to the Buyers up to One Million
      Dollars ($1,000,000) of secured convertible debentures, which shall be
      convertible into shares (the “Conversion
      Shares”)
      of the
      Company’s common stock, par value $0.001 per share (the “Common
      Stock”),
      in
      accordance with the terms of the Securities Purchase Agreement. Pursuant to
      the
      Securities Purchase Agreement, the Company also has entered into a Registration
      Rights Agreement, dated as of March 8, 2006, with the Buyers (the “Investor
      Registration Rights Agreement”)
      pursuant to which the Company agreed, among other things, to register the
      Conversion Shares under the Securities Act of 1933, as amended (the
“1933
      Act”).
      In
      connection with the Company’s obligations under the Securities Purchase
      Agreement and the Registration Rights Agreement, on _______, 2007, the Company
      filed a Registration Statement (File No. ___-_________) (the “Registration
      Statement”)
      with
      the Securities and Exchange Commission (the “SEC”)
      relating to the sale of the Conversion Shares.

     

    In
      connection with the foregoing, we advise the Transfer Agent that a member of
      the
      SEC’s staff has advised us by telephone that the SEC has entered an order
      declaring the Registration Statement effective under the 1933 Act at ____ P.M.
      on __________, 2007 and we have no knowledge, after telephonic inquiry of a
      member of the SEC’s staff, that any stop order suspending its effectiveness has
      been issued or that any proceedings for that purpose are pending before, or
      threatened by, the SEC and the Conversion Shares are available for sale under
      the 1933 Act pursuant to the Registration Statement.

     

    

      
        
          
            EXHIBIT
              II-1

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    The
      Buyers has confirmed it shall comply with all securities laws and regulations
      applicable to it including applicable prospectus delivery requirements upon
      sale
      of the Conversion Shares.

     

    

    Very
      truly yours,

    

    

    

    

    By:
      ____________________________________     

    

    
      
        
          EXHIBIT
            II-2

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      III

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF OPINION

     

    

    ________________
      2007

    

    VIA
      FACSIMILE AND REGULAR MAIL

    

    _______________

    _______________

    _______________

    

    Attention:
      _______________

    

    RE: COMPLIANCE
      SYSTEMS CORPORATION (f/k/a GSA Publishing, Inc.)

    

    Ladies
      and Gentlemen:

     

    We
      have
      acted as special counsel to Compliance Systems Corporation (f/k/a GSA
      Publishing, Inc.) (the “Company”),
      in
      connection with the registration of ___________shares (the “Shares”)
      of its
      common stock with the Securities and Exchange Commission (the “SEC”).
      We
      have
      not acted as your counsel. This opinion is given at the request and with the
      consent of the Company.

     

    In
      rendering this opinion we have relied on the accuracy of the Company’s
      Registration Statement on Form SB-2, as amended (the “Registration
      Statement”),
      filed
      by the Company with the SEC on _________ ___, 2007. The Company filed the
      Registration Statement on behalf of certain selling stockholders (the
“Selling
      Stockholders”).
      This
      opinion relates solely
      to the
      Selling Shareholders listed on Exhibit
      “A”
      hereto
      and number of Shares set forth opposite such Selling Stockholders’ names. The
      SEC declared the Registration Statement effective on __________ ___,
      2007.

     

    We
      understand that the Selling Stockholders acquired the Shares in a private
      offering exempt from registration under the Securities Act of 1933, as amended.
      Information regarding the Shares to be sold by the Selling Shareholders is
      contained under the heading “Selling Stockholders” in the Registration
      Statement, which information is incorporated herein by reference. This opinion
      does not relate to the issuance of the Shares to the Selling Stockholders.
      The
      opinions set forth herein relate solely to the sale or transfer by the Selling
      Stockholders pursuant to the Registration Statement under the Federal laws
      of
      the United States of America. We do not express any opinion concerning any
      law
      of any state or other jurisdiction.

     

    In
      rendering this opinion we have relied upon the accuracy of the foregoing
      statements.

    
      

      
        
          
            EXHIBIT
              III-1

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Based
      on
      the foregoing, it is our opinion that the Shares have been registered with
      the
      Securities and Exchange Commission under the Securities Act of 1933, as amended,
      and that ________ may remove the restrictive legends contained on the Shares.
      This opinion relates solely
      to the
      number of Shares set forth opposite the Selling Stockholders listed on
Exhibit
      “A”
      hereto.

     

    This
      opinion is furnished to Transfer Agent specifically in connection with the
      issuance of the Shares, and solely for your information and benefit. This letter
      may not be relied upon by Transfer Agent in any other connection, and it may
      not
      be relied upon by any other person or entity for any purpose without our prior
      written consent. This opinion may not be assigned, quoted or used without our
      prior written consent. The opinions set forth herein are rendered as of the
      date
      hereof and we will not supplement this opinion with respect to changes in the
      law or factual matters subsequent to the date hereof.

     

    Very
      truly yours,

    

     

    
      
        
          EXHIBIT
            III-2

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    (LIST
      OF SELLING STOCKHOLDERS)

     

    

    
      	
              Name:

            	 	
              No.
                of Shares:

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

    

    
      
        
          EXHIBIT
            A-1

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