Document:

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                                                                    EXHIBIT 10.1

                          SECURITIES PURCHASE AGREEMENT

     This Securities Purchase Agreement (this "Agreement") is dated as of March
27, 2007, among VendingData Corporation, a Nevada corporation (the "Company"),
and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a "Purchaser" and collectively the "Purchasers").

                                    RECITALS

     WHEREAS, subject to the terms and conditions set forth in this Agreement
and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the
"Securities Act") and Rule 506 promulgated thereunder, the Company desires to
issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase from the Company, securities of the Company as more fully
described in this Agreement.

                                    AGREEMENT

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agree
as follows:

                                   ARTICLE I.
                                   DEFINITIONS

     1.1 Definitions. In addition to the terms defined elsewhere in this
Agreement, for all purposes of this Agreement, the following terms have the
meanings indicated in this Section 1.1:

          "Action" shall have the meaning ascribed to such term in Section
     3.1(j).

          "Affiliate" means any Person that, directly or indirectly through one
     or more intermediaries, controls or is controlled by or is under common
     control with a Person as such terms are used in and construed under Rule
     144 under the Securities Act. With respect to a Purchaser, any investment
     fund or managed account that is managed on a discretionary basis by the
     same investment manager as such Purchaser will be deemed to be an Affiliate
     of such Purchaser.

          "Business Day" means any day except Saturday, Sunday and any day which
     shall be a federal legal holiday in the United States.

          "Closing" means the Closing of the purchase and sale of the Shares
     pursuant to Section 2.1.

          "Closing Date" means the Business Day when all of the Transaction
     Documents have been executed and delivered by the applicable parties
     thereto, and all conditions precedent to (i) the Purchasers' obligations to
     pay the Subscription Amount and (ii) the Company's obligations to deliver
     the applicable Shares have been satisfied or waived.

          "Commission" means the Securities and Exchange Commission.

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

          "Common Stock Equivalents" means any securities of the Company or the
     Subsidiaries which would entitle the holder thereof to acquire at any time
     Common Stock, including, without limitation, any debt, preferred stock,
     rights, options, warrants or other instrument that is at any time
     convertible into or exercisable or exchangeable for, or otherwise entitles
     the holder thereof to receive, Common Stock.

          "Disclosure Schedules" means the Disclosure Schedules of the Company
     delivered in connection with the Closing.

          "Effective Date" means the date that the initial Registration
     Statement filed by the Company pursuant to the Registration Rights
     Agreement is first declared effective by the Commission.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
     and the rules and regulations promulgated thereunder.

          "GAAP" shall have the meaning ascribed to such term in Section 3.1(h).

          "Intellectual Property Rights" shall have the meaning ascribed to such
     term in Section 3.1(o).

          "Liens" means a lien, charge, security interest, encumbrance, right of
     first refusal, preemptive right or other restriction.

          "Material Adverse Effect" shall have the meaning assigned to such term
     in Section 3.1(b).

          "Material Permits" shall have the meaning ascribed to such term in
     Section 3.1(m).

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

          "Proceeding" means an action, claim, suit, investigation or proceeding
     (including, without limitation, an investigation or partial proceeding,
     such as a deposition), whether commenced or threatened.

          "Registration Rights Agreement" means the Registration Rights
     Agreement, dated the date hereof, among the Company and the Purchasers, in
     the form of Exhibit A attached hereto.

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          "Registration Statement" means a registration statement meeting the
     requirements set forth in the Registration Rights Agreement and covering
     the resale by the Purchasers of the Shares.

          "Required Approvals" shall have the meaning ascribed to such term in
     Section 3.1(e).

          "Rule 144" means Rule 144 promulgated by the Commission pursuant to
     the Securities Act, as such Rule may be amended from time to time, or any
     similar rule or regulation hereafter adopted by the Commission having
     substantially the same effect as such Rule.

          "Securities" means the Shares, the Warrants and the Underlying Shares.

          "SEC Reports" shall have the meaning ascribed to such term in Section
     3.1(h).

          "Shares" means the One Million, Six Hundred and Twenty Five Thousand
     (1,625,000) shares of Common Stock issued or issuable to the Purchasers
     pursuant to this Agreement.

          "Short Sales" shall include all "short sales" as defined in Rule 200
     of Regulation SHO under the Exchange Act (but shall not be deemed to
     include the location and/or reservation of borrowable shares of Common
     Stock).

          "Subscription Amount" means, as to each Purchaser, the aggregate
     amount to be paid for Shares and Warrants purchased hereunder as specified
     below such Purchaser's name on the signature page of this Agreement and
     next to the heading "Subscription Amount," in United States Dollars and in
     immediately available funds.

          "Subsidiary" means any subsidiary of the Company as set forth on
     Schedule 3.1(a).

          "Trading Market" means the following markets or exchanges on which the
     Common Stock is listed or quoted for trading on the date in question: the
     American Stock Exchange, the New York Stock Exchange, the NASDAQ Global
     Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or the
     OTC Bulletin Board.

          "Transaction Documents" means this Agreement, the Warrants and the
     Registration Rights Agreement executed in connection with the transactions
     contemplated hereunder.

          "Underlying Shares" means the shares of Common Stock issuable upon
     exercise of the Warrants.

          "Warrant" and "Warrants" means a Common Stock purchase warrant, in the
     form of Exhibit B, and all Warrants collectively.

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                                  ARTICLE II.
                                PURCHASE AND SALE

     2.1 Closing. Upon the terms and subject to the conditions set forth herein,
the Company agrees to sell, and each Purchaser agrees to purchase, severally and
not jointly, the number of Shares and Warrants set forth on each respective
Purchaser's signature page attached hereto, for the Subscription Amount set
forth thereon, which in the aggregate shall equal up to Four Million, Three
Hundred and Six Thousand and Two Hundred and Fifty Dollars ($4,306,250) of
Shares. On the Closing Date (the "Closing Date"), each Purchaser shall deliver
to the Company, via wire transfer or a certified check, immediately available
funds equal to their Subscription Amount, and the Company shall deliver to each
Purchaser their respective Shares and Warrants to be issued at the Closing (the
"Closing") at the Closing. Upon satisfaction of the conditions set forth in
Sections 2.2 and 2.3, the Closing shall occur at the offices of Greenberg
Traurig, LLP, 650 Town Center Drive, Suite 1700, Costa Mesa, California 92626,
or such other location as the parties shall mutually agree.

     2.2 Deliveries.

          (a) On or prior to the Closing Date, the Company shall deliver or
     cause to be delivered to each Purchaser the following:

               (i) this Agreement duly executed by the Company;

               (ii) one or more stock certificates evidencing that number of
          Shares purchased by each Purchaser hereunder, registered in the name
          of such Purchaser;

               (iii) an originally executed Warrant evidencing that number of
          Warrants purchased by each Purchaser hereunder, registered in the name
          of such Purchaser;

               (iv) the Registration Rights Agreement duly executed by the
          Company;

               (v) an opinion of Greenberg Traurig, LLP ("Company Counsel"),
          dated as of the Closing Date, in substantially the form of Exhibit C
          attached hereto;

               (vi) a certificate evidencing the incorporation and good standing
          of the Company and each of its U.S domiciled operating Subsidiaries in
          such corporation's state of incorporation issued by the Secretary of
          State of such state of incorporation as of a date within 10 days of
          the Closing Date; and

               (vii) a certificate, executed by the Secretary of the Company and
          dated as of the Closing Date, as to (i) the resolutions consistent
          with Section 3.1(c) as adopted by the Company's Board of Directors in
          a form reasonably acceptable to such Purchaser, (ii) the Certificate
          of Incorporation and (iii) the Bylaws, each as in effect at the
          Closing, in the form attached hereto as Exhibit D.

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          (b) On or prior to the Closing Date, each Purchaser shall deliver or
     cause to be delivered to the Company the following:

               (i) this Agreement duly executed by such Purchaser;

               (ii) such Purchaser's Subscription Amount by wire transfer or
          cashier's check to the account as specified by the Company in writing;
          and

               (iii) the Registration Rights Agreement duly executed by such
          Purchaser.

     2.3 Closing Conditions.

          (a) The obligations of the Company hereunder in connection with the
     Closing are subject to the following conditions being met:

               (i) the representations and warranties of the Purchasers shall be
          true and correct in all material respects (except for those
          representations and warranties that are qualified by materiality or
          Material Adverse Effect, which shall be true and correct in all
          respects) as of the date when made and as of the Closing Date as
          though made at that time (except for representations and warranties
          that speak as of a specific date, which shall remain true and correct
          as of such specific date);

               (ii) all obligations, covenants and agreements of the Purchasers
          required to be performed at or prior to the Closing Date shall have
          been performed; and

               (iii) the delivery by the Purchasers of the items set forth in
          Section 2.2(b) of this Agreement.

          (b) The respective obligations of the Purchasers hereunder in
     connection with the Closing are subject to the following conditions being
     met:

               (i) the representations and warranties of the Company and its
          Subsidiaries shall be true and correct in all material respects
          (except for those representations and warranties that are qualified by
          materiality or Material Adverse Effect, which shall be true and
          correct in all respects) as of the date when made and as of the
          Closing Date as though made at that time (except for representations
          and warranties that speak as of a specific date, which shall remain
          true and correct as of such specific date);

               (ii) all obligations, covenants and agreements of the Company
          required to be performed at or prior to the Closing Date shall have
          been performed;

               (iii) the delivery by the Company of the items set forth in
          Section 2.2(a) of this Agreement;

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               (iv) the Common Stock (I) shall be listed on the Principal Market
          and (II) shall not have been suspended, as of the Closing Date, by the
          SEC or the Principal Market from trading on the Principal Market nor
          shall suspension by the SEC or the Principal Market have been
          threatened, as of the Closing Date, either (A) in writing by the SEC
          or the Principal Market or (B) by falling below the minimum listing
          maintenance requirements of the Principal Market; and

               (v) the Company shall have obtained all governmental, regulatory
          or third party consents and approvals, if any, necessary for the sale
          of the Shares and the Warrants.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

     3.1 Representations and Warranties of the Company. Except as set forth
under the corresponding section of the disclosure schedules delivered to the
Purchasers concurrently herewith (the "Disclosure Schedules") which Disclosure
Schedules shall be deemed a part hereof, the Company hereby makes the
representations and warranties set forth below to each Purchaser:

          (a) Subsidiaries. All of the direct and indirect subsidiaries of the
     Company are set forth on Schedule 3.1(a). The Company owns, directly or
     indirectly, all of the capital stock or other equity interests of each
     Subsidiary free and clear of any Liens, and all the issued and outstanding
     shares of capital stock of each Subsidiary are validly issued and are fully
     paid, non-assessable and free of preemptive and similar rights to subscribe
     for or purchase securities.

          (b) Organization and Qualification. The Company and each of the
     Subsidiaries is an entity duly incorporated or otherwise organized, validly
     existing and in good standing under the laws of the jurisdiction of its
     incorporation or organization (as applicable), with the requisite power and
     authority to own and use its properties and assets and to carry on its
     business as currently conducted. Neither the Company nor any Subsidiary is
     in violation or default of any of the provisions of its respective
     certificate or articles of incorporation, bylaws or other organizational or
     charter documents. Each of the Company and the Subsidiaries is duly
     qualified to conduct business and is in good standing as a foreign
     corporation or other entity in each jurisdiction in which the nature of the
     business conducted or property owned by it makes such qualification
     necessary, except where the failure to be so qualified or in good standing,
     as the case may be, could not have or reasonably be expected to result in
     (i) a material adverse effect on the legality, validity or enforceability
     of any Transaction Document, (ii) a material adverse effect on the
     business, properties, assets, operations, prospects, results of operations
     or financial condition of the Company and the Subsidiaries, taken as a
     whole, or (iii) a material adverse effect on the Company's ability to
     perform in any material respect on a timely basis its obligations under any
     Transaction Document (any of (i), (ii) or (iii), a "Material Adverse
     Effect") and no Proceeding has been instituted in any such jurisdiction
     revoking, limiting or curtailing or seeking to revoke, limit or curtail
     such power and authority or qualification.

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          (c) Authorization; Enforcement. The Company has the requisite
     corporate power and authority to enter into and to consummate the
     transactions contemplated by each of the Transaction Documents and
     otherwise to carry out its obligations hereunder and thereunder. The
     execution and delivery of each of the Transaction Documents by the Company
     and the consummation by it of the transactions contemplated hereby and
     thereby have been duly authorized by all necessary action on the part of
     the Company and no further action is required by the Company, its board of
     directors or its stockholders in connection therewith other than in
     connection with the required approvals set forth on Schedule 3.1(c)
     attached hereto (the "Required Approvals"). Each Transaction Document has
     been (or upon delivery will have been) duly executed by the Company and,
     when delivered in accordance with the terms hereof and thereof, will
     constitute the valid and binding obligation of the Company enforceable
     against the Company in accordance with its terms except (i) as limited by
     general equitable principles and applicable bankruptcy, insolvency,
     reorganization, moratorium and other laws of general application affecting
     enforcement of creditors' rights generally, (ii) as limited by laws
     relating to the availability of specific performance, injunctive relief or
     other equitable remedies and (iii) insofar as indemnification and
     contribution provisions may be limited by applicable law.

          (d) No Conflicts. The execution, delivery and performance of the
     Transaction Documents by the Company, the issuance and sale of the
     Securities and the consummation by the Company of the other transactions
     contemplated hereby and thereby do not and will not (i) conflict with or
     violate any provision of the Company's or any Subsidiary's certificate or
     articles of incorporation, bylaws or other organizational or charter
     documents, or (ii) conflict with, or constitute a default (or an event that
     with notice or lapse of time or both would become a default) under, result
     in the creation of any Lien upon any of the properties or assets of the
     Company or any Subsidiary, or give to others any rights of termination,
     amendment, acceleration or cancellation (with or without notice, lapse of
     time or both) of, any agreement, credit facility, debt or other instrument
     (evidencing a Company or Subsidiary debt or otherwise) or other
     understanding to which the Company or any Subsidiary is a party or by which
     any property or asset of the Company or any Subsidiary is bound or
     affected, or (iii) subject to the Required Approvals, conflict with or
     result in a violation of any law, rule, regulation, order, judgment,
     injunction, decree or other restriction of any court or governmental
     authority to which the Company or a Subsidiary is subject (including
     federal and state securities laws and regulations), or by which any
     property or asset of the Company or a Subsidiary is bound or affected;
     except in the case of each of clauses (ii) and (iii), such as could not
     have or reasonably be expected to result in a Material Adverse Effect.

          (e) Filings, Consents and Approvals. The Company is not required to
     obtain any consent, waiver, authorization or order of, give any notice to,
     or make any filing or registration with, any court or other federal, state,
     local or other governmental authority or other Person in connection with
     the execution, delivery and performance by the Company of the Transaction
     Documents, other than (i) filings required pursuant to Section 4.4 of this
     Agreement, (ii) the filing with the Commission of the Registration
     Statement, (iii) application(s) to each applicable Trading Market for the
     listing of the

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     Shares and the Underlying Shares for trading thereon in the time and manner
     required thereby, and (iv) the filing of Form D with the Commission and
     such filings as are required to be made under applicable state securities
     laws (collectively, the "Required Approvals").

          (f) Issuance of the Securities. The Securities are duly authorized
     and, when issued and paid for in accordance with the applicable Transaction
     Documents, will be duly and validly issued, fully paid and nonassessable,
     free and clear of all Liens imposed by the Company other than restrictions
     on transfer provided for in the Transaction Documents. The Company has
     reserved from its duly authorized capital stock the Shares and Underlying
     Shares issuable pursuant to this Agreement.

          (g) Capitalization. The capitalization of the Company is as set forth
     on Schedule 3.1(g). No Person has any right of first refusal, preemptive
     right, right of participation, or any similar right to participate in the
     transactions contemplated by the Transaction Documents. Except as a result
     of the purchase and sale of the Securities or as set forth on Schedule
     3.1(g), there are no outstanding options, warrants, script rights to
     subscribe to, calls or commitments of any character whatsoever relating to,
     or securities, rights or obligations convertible into or exercisable or
     exchangeable for, or giving any Person any right to subscribe for or
     acquire, any shares of Common Stock, or contracts, commitments,
     understandings or arrangements by which the Company or any Subsidiary is or
     may become bound to issue additional shares of Common Stock or Common Stock
     Equivalents. The issuance and sale of the Securities will not obligate the
     Company to issue shares of Common Stock or other securities to any Person
     (other than the Purchasers) and will not result in a right of any holder of
     Company securities to adjust the exercise, conversion, exchange or reset
     price under any of such securities. All of the outstanding shares of
     capital stock of the Company are validly issued, fully paid and
     nonassessable, have been issued in compliance with all federal and state
     securities laws, and none of such outstanding shares was issued in
     violation of any preemptive rights or similar rights to subscribe for or
     purchase securities. No further approval or authorization of any
     stockholder, the Board of Directors of the Company or others is required
     for the issuance and sale of the Securities. Except as set forth on
     Schedule 3.1(g), there are no stockholders agreements, voting agreements or
     other similar agreements with respect to the Company's capital stock to
     which the Company is a party or, to the knowledge of the Company, between
     or among any of the Company's stockholders.

          (h) SEC Reports; Financial Statements. The Company has filed all
     reports, schedules, forms, statements and other documents required to be
     filed by it under the Securities Act and the Exchange Act, including
     pursuant to Section 13(a) or 15(d) thereof, for the period commencing on
     January 1, 2006 through the date hereof (the foregoing materials, including
     the exhibits thereto and documents incorporated by reference therein, being
     collectively referred to herein as the "SEC Reports") on a timely basis or
     has received a valid extension of such time of filing and has filed any
     such SEC Reports prior to the expiration of any such extension. As of their
     respective dates, the SEC Reports complied in all material respects with
     the requirements of the Securities Act and the Exchange Act and the rules
     and regulations of the Commission promulgated thereunder, as applicable,
     and none of the SEC Reports, when filed, contained any untrue

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     statement of a material fact or omitted to state a material fact required
     to be stated therein or necessary in order to make the statements therein,
     in the light of the circumstances under which they were made, not
     misleading. The financial statements of the Company included in the SEC
     Reports complied in all material respects with applicable accounting
     requirements and the rules and regulations of the Commission with respect
     thereto as in effect at the time of filing. Such financial statements have
     been prepared in accordance with United States generally accepted
     accounting principles applied on a consistent basis during the periods
     involved ("GAAP"), except as may be otherwise specified in such financial
     statements or the notes thereto and except that unaudited financial
     statements may not contain all footnotes required by GAAP, and fairly
     present in all material respects the financial position of the Company and
     its consolidated subsidiaries as of and for the dates thereof and the
     results of operations and cash flows for the periods then ended, subject,
     in the case of unaudited statements, to normal, immaterial, year-end audit
     adjustments.

          (i) Material Changes; Undisclosed Events, Liabilities or Developments.
     Since the date of the latest audited financial statements included within
     the SEC Reports, except as specifically disclosed in a subsequent SEC
     Report, (i) there has been no event, occurrence or development that has had
     or that could reasonably be expected by the Company to result in a Material
     Adverse Effect, (ii) the Company has not incurred any liabilities
     (contingent or otherwise) other than (A) trade payables and accrued
     expenses incurred in the ordinary course of business consistent with past
     practice and (B) liabilities not required to be reflected in the Company's
     financial statements pursuant to GAAP or disclosed in filings made with the
     Commission, (iii) the Company has not altered its method of accounting,
     (iv) the Company has not declared or made any dividend or distribution of
     cash or other property to its stockholders or purchased, redeemed or made
     any agreements to purchase or redeem any shares of its capital stock and
     (v) the Company has not issued any equity securities to any officer,
     director or Affiliate, except pursuant to existing Company stock option
     plans. The Company does not have pending before the Commission any request
     for confidential treatment of information.

          (j) Litigation. There is no action, suit, inquiry, notice of
     violation, proceeding or investigation pending or, to the knowledge of the
     Company, threatened against or affecting the Company, any Subsidiary or any
     of their respective properties before or by any court, arbitrator,
     governmental or administrative agency or regulatory authority (federal,
     state, county, local or foreign) (collectively, an "Action") which
     materially adversely affects or challenges the legality, validity or
     enforceability of any of the Transaction Documents or the Securities. The
     Commission has not issued any stop order or other order suspending the
     effectiveness of any registration statement filed by the Company or any
     Subsidiary under the Exchange Act or the Securities Act.

          (k) Labor Relations. No material labor dispute exists or, to the
     knowledge of the Company, is imminent with respect to any of the employees
     of the Company which could reasonably be expected to result in a Material
     Adverse Effect. None of the Company's or its Subsidiaries' employees is a
     member of a union that relates to such employee's relationship with the
     Company, and neither the Company or any of its Subsidiaries is a party to a
     collective bargaining agreement, and the Company and its

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     Subsidiaries believe that their relationships with their employees are
     good. No executive officer, 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
     or 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 any of its Subsidiaries to any
     liability with respect to any of the foregoing matters. The Company and its
     Subsidiaries are in compliance with all U.S. federal, state, local and
     foreign laws and regulations relating to employment and employment
     practices, terms and conditions of employment and wages and hours, except
     where the failure to be in compliance could not, individually or in the
     aggregate, reasonably be expected to have a Material Adverse Effect.

          (l) Compliance. Neither the Company nor any Subsidiary (i) is in
     default under or in violation of (and no event has occurred that has not
     been waived that, with notice or lapse of time or both, would result in a
     default by the Company or any Subsidiary under), nor has the Company or any
     Subsidiary received notice of a claim that it is in default under or that
     it is in violation of, any indenture, loan or credit agreement or any other
     agreement or instrument to which it is a party or by which it or any of its
     properties is bound (whether or not such default or violation has been
     waived), (ii) is in violation of any order of any court, arbitrator or
     governmental body, or (iii) is or has been in violation of any statute,
     rule or regulation of any governmental authority, including without
     limitation all foreign, federal, state and local laws applicable to its
     business and all such laws that affect the environment, except in each case
     as could not have or reasonably be expected to result in a Material Adverse
     Effect.

          (m) Regulatory Permits. The Company and the Subsidiaries possess all
     certificates, authorizations and permits issued by the appropriate federal,
     state, local or foreign regulatory authorities necessary to conduct their
     respective businesses as described in the SEC Reports, except where the
     failure to possess such permits could not have or reasonably be expected to
     result in a Material Adverse Effect ("Material Permits"), and neither the
     Company nor any Subsidiary has received any notice of proceedings relating
     to the revocation or modification of any Material Permit.

          (n) Title to Assets. The Company and the Subsidiaries have good and
     marketable title in fee simple to all real property owned by them that is
     material to the business of the Company and the Subsidiaries and good and
     marketable title in all personal property owned by them that is material to
     the business of the Company and the Subsidiaries, in each case free and
     clear of all Liens, except for Liens as do not materially affect the value
     of such property and do not materially interfere with the use made and
     proposed to be made of such property by the Company and the Subsidiaries
     and Liens for the payment of federal, state or other taxes, the payment of
     which is neither delinquent nor subject to penalties. Any real property and
     facilities held under lease by the Company and the Subsidiaries are held by
     them under valid, subsisting and enforceable leases with which the Company
     and the Subsidiaries are in compliance.

          (o) Patents and Trademarks. The Company and the Subsidiaries have, or
     have rights to use, all patents, patent applications, trademarks, trademark
     applications, service

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     marks, trade names, trade secrets, inventions, copyrights, licenses and
     other intellectual property rights and similar rights necessary or material
     for use in connection with their respective businesses as described in the
     SEC Reports and which the failure to so have could have a Material Adverse
     Effect (collectively, the "Intellectual Property Rights"). Neither the
     Company nor any Subsidiary has received a notice (written or otherwise)
     that the Intellectual Property Rights used by the Company or any Subsidiary
     violates or infringes upon the rights of any Person. To the knowledge of
     the Company, all such Intellectual Property Rights are enforceable and
     there is no existing infringement by another Person of any of the
     Intellectual Property Rights. The Company and its Subsidiaries have taken
     reasonable security measures to protect the secrecy, confidentiality and
     value of all of their intellectual properties, except where failure to do
     so could not, individually or in the aggregate, reasonably be expected to
     have a Material Adverse Effect.

          (p) Insurance. The Company and the Subsidiaries are insured by
     insurers of recognized financial responsibility against such losses and
     risks and in such amounts as are prudent and customary in the businesses in
     which the Company and the Subsidiaries are engaged, including, but not
     limited to, directors and officers insurance coverage at least equal to the
     aggregate Subscription Amount. Neither the Company nor any 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
     without a significant increase in cost.

          (q) Transactions With Affiliates and Employees. Except as set forth in
     the SEC Reports, none of the officers or directors of the Company and, to
     the knowledge of the Company, none of the employees of the Company is
     presently a party to any transaction with the Company or any Subsidiary
     (other than for services as employees, officers and 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 officer, director
     or such employee or, to the knowledge of the Company, any entity in which
     any officer, director, or any such employee has a substantial interest or
     is an officer, director, trustee or partner, in each case in excess of
     $60,000 other than (i) for payment of salary or consulting fees for
     services rendered, (ii) reimbursement for expenses incurred on behalf of
     the Company and (iii) for other employee benefits, including stock option
     agreements under any stock option plan of the Company.

          (r) Sarbanes-Oxley; Internal Accounting Controls. The Company is in
     material compliance with all provisions of the Sarbanes-Oxley Act of 2002
     which are applicable to it as of the Closing Date. The Company maintains
     disclosure controls and procedures (as such term is defined in Rule
     13a-15(e) under the Exchange Act) that are effective in ensuring that
     information required to be disclosed by the Company in the reports that it
     files or submits under the Exchange Act is recorded, processed, summarized
     and reported, within the time periods specified in the rules and forms of
     the SEC, including, without limitation, controls and procedures designed in
     to ensure that information required to be disclosed by the Company in the
     reports that it files or submits

                                      -11-

<PAGE>

     under the Exchange Act is accumulated and communicated to the Company's
     management, including its principal executive officer or officers and its
     principal financial officer or officers, as appropriate, to allow timely
     decisions regarding required disclosure.

          (s) Certain Fees. No brokerage or finder's fees or commissions are or
     will be payable by the Company to any broker, financial advisor or
     consultant, finder, placement agent, investment banker, bank or other
     Person with respect to the transactions contemplated by the Transaction
     Documents. The Purchasers shall have no obligation with respect to any fees
     or with respect to any claims made by or on behalf of other Persons for
     fees of a type contemplated in this Section that may be due in connection
     with the transactions contemplated by the Transaction Documents as a result
     of any action taken by the Company or its Affiliates.

          (t) Private Placement. Assuming the accuracy of the Purchasers
     representations and warranties set forth in Section 3.2, no registration
     under the Securities Act is required for the offer and sale of the
     Securities by the Company to the Purchasers as contemplated hereby. The
     issuance and sale of the Securities hereunder does not contravene the rules
     and regulations of the Trading Market.

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

          (v) Registration Rights. Other than each of the Purchasers, no Person
     has any right to cause the Company to effect the registration under the
     Securities Act of any securities of the Company.

          (w) Listing and Maintenance Requirements. The Company's Common Stock
     is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and
     the Company has taken no action designed to, or which to its knowledge is
     likely to have the effect of, terminating the registration of the Common
     Stock under the Exchange Act nor has the Company received any notification
     that the Commission is contemplating terminating such registration. The
     Company has not, in the 12 months preceding the date hereof, received
     notice from any Trading Market on which the Common Stock is or has been
     listed or quoted to the effect that the Company is not in compliance with
     the listing or maintenance requirements of such Trading Market. The Company
     is, and has no reason to believe that it will not in the foreseeable future
     continue to be, in compliance with all such listing and maintenance
     requirements.

          (x) Application of Takeover Protections. 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 Company's Certificate of Incorporation
     (or similar charter documents) or the laws of its state of

                                      -12-

<PAGE>

     incorporation that is or could become applicable to the Purchasers as a
     result of the Purchasers and the Company fulfilling their obligations or
     exercising their rights under the Transaction Documents, including without
     limitation as a result of the Company's issuance of the Securities and the
     Purchasers' ownership of the Securities.

          (y) Disclosure. All disclosure furnished by or on behalf of the
     Company to the Purchasers regarding the Company, its business and the
     transactions contemplated hereby, including the Disclosure Schedules to
     this Agreement, with respect to the representations and warranties made
     herein are true and correct with respect to such representations and
     warranties and do not contain any untrue statement of a material fact or
     omit to state any material fact necessary in order to make the statements
     made therein, in light of the circumstances under which they were made, not
     misleading.

          (z) No Integrated Offering. Assuming the accuracy of the Purchasers'
     representations and warranties set forth in Section 3.2, neither the
     Company, nor any of its Affiliates, nor any Person acting on its or 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 cause this offering of the Securities to be integrated with
     prior offerings by the Company for purposes of the Securities Act or any
     applicable shareholder approval provisions of any Trading Market on which
     any of the securities of the Company are listed or designated.

          (aa) Tax Status. Except for matters that would not, individually or in
     the aggregate, have or reasonably be expected to result in a Material
     Adverse Effect, the Company and each Subsidiary has filed all necessary
     federal, state and foreign income and franchise tax returns and has paid or
     accrued all taxes shown as due thereon, and the Company has no knowledge of
     a tax deficiency which has been asserted or threatened against the Company
     or any Subsidiary.

          (bb) No General Solicitation. Neither the Company nor any person
     acting on behalf of the Company has offered or sold any of the Securities
     by any form of general solicitation or general advertising. The Company has
     offered the Securities for sale only to the Purchasers and certain other
     "accredited investors" within the meaning of Rule 501 under the Securities
     Act.

          (cc) Insolvency. 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). For purposes of this
     Section 3.1(cc), "Insolvent" means, with respect to any Person , (i) the
     present fair saleable value of such Person's assets is less than the amount
     required to pay such Person's total indebtedness, (ii) such Person is
     unable to pay its debts and liabilities, subordinated, contingent or
     otherwise, as such debts and liabilities become absolute and matured, (iii)
     such Person intends to incur or believes that it will incur debts that
     would be beyond its ability to pay as such debts mature or (iv) such Person
     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.

                                      -13-

<PAGE>

          (dd) Off Balance Sheet Arrangements. There is no transaction,
     arrangement, or other relationship between the Company and an
     unconsolidated or other off balance sheet entity that is required to be
     disclosed by the Company in its Exchange Act filings and is not so
     disclosed or that otherwise would be reasonably likely to have a Material
     Adverse Effect.

          (ee) No Undisclosed Events, Liabilities, Developments or
     Circumstances. Except for the transactions contemplated by this Agreement,
     no event, liability, development or circumstance has occurred or exists
     with respect to the Company or its business, properties, prospects,
     operations or financial condition, that would be required to be disclosed
     by the Company under applicable securities laws on a Current Report on Form
     8-K filed with the SEC.

          (ff) Environmental Laws. The Company is 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 would 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.

          (gg) Manipulation of Price. The Company has not, and to its knowledge
     no one acting on its behalf has taken, directly or indirectly, any action
     designed to cause or to result in the stabilization or manipulation of the
     price of any security of the Company to facilitate the sale or resale of
     any of the Securities.

          (hh) Foreign Corrupt Practices. Neither the Company, nor any of its
     Subsidiaries, nor to the Company's knowledge, any director, officer, agent,
     employee or other Person acting on behalf of the Company or any of its
     Subsidiaries 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.

                                      -14-

<PAGE>

     3.2 Representations and Warranties of the Purchasers. Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the
date hereof and as of the Closing Date to the Company as follows:

          (a) Organization; Authority. Such Purchaser is an entity duly
     organized, validly existing and in good standing under the laws of the
     jurisdiction of its organization with full right, corporate or partnership
     power and authority to enter into and to consummate the transactions
     contemplated by the Transaction Documents and otherwise to carry out its
     obligations hereunder and thereunder. The execution, delivery and
     performance by such Purchaser of the transactions contemplated by this
     Agreement have been duly authorized by all necessary corporate or similar
     action on the part of such Purchaser. Each Transaction Document to which it
     is a party has been duly executed by such Purchaser, and when delivered by
     such Purchaser in accordance with the terms hereof, will constitute the
     valid and legally binding obligation of such Purchaser, enforceable against
     it in accordance with its terms, except (i) as limited by general equitable
     principles and applicable bankruptcy, insolvency, reorganization,
     moratorium and other laws of general application affecting enforcement of
     creditors' rights generally, (ii) as limited by laws relating to the
     availability of specific performance, injunctive relief or other equitable
     remedies and (iii) insofar as indemnification and contribution provisions
     may be limited by applicable law.

          (b) Own Account. Such Purchaser understands that the Securities are
     "restricted securities" and have not been registered under the Securities
     Act or any applicable state securities law and is acquiring the Securities
     as principal for its own account and not with a view to or for distributing
     or reselling such Securities or any part thereof in violation of the
     Securities Act or any applicable state securities law, has no present
     intention of distributing any of such Securities in violation of the
     Securities Act or any applicable state securities law and has no direct or
     indirect arrangement or understandings with any other persons to distribute
     or regarding the distribution of such Securities (this representation and
     warranty not limiting such Purchaser's right to sell the Shares and
     Underlying Shares pursuant to the Registration Statement or otherwise in
     compliance with applicable federal and state securities laws) in violation
     of the Securities Act or any applicable state securities law. Such
     Purchaser is acquiring the Securities hereunder in the ordinary course of
     its business.

          (c) Purchaser Status. At the time such Purchaser was offered the
     Shares and Warrants, it was, and at the date hereof it is, an "accredited
     investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8)
     under the Securities Act. Such Purchaser is not required to be registered
     as a broker-dealer under Section 15 of the Exchange Act.

          (d) Experience of Such Purchaser. Such Purchaser, either alone or
     together with its representatives, has such knowledge, sophistication and
     experience in business and financial matters so as to be capable of
     evaluating the merits and risks of the prospective investment in the
     Securities, and has so evaluated the merits and risks of such investment.
     Such Purchaser is able to bear the economic risk of an investment in the
     Securities and, at the present time, is able to afford a complete loss of
     such investment.

                                      -15-

<PAGE>

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

          (f) Short Sales and Confidentiality Prior To The Date Hereof. Other
     than the transaction contemplated hereunder, such Purchaser has not
     directly or indirectly, nor has any Person acting on behalf of or pursuant
     to any understanding with such Purchaser, engaged in any transaction,
     including Short Sales, in the securities of the Company since the earlier
     to occur of (i) the time that such Purchaser was first contacted by the
     Company regarding an investment in the Company, or (ii) the 30th day prior
     to the date of this Agreement (such earlier date, "Discussion Date").
     Notwithstanding the foregoing, in the case of a Purchaser that is a
     multi-managed investment vehicle whereby separate portfolio managers manage
     separate portions of such Purchaser's assets and the portfolio managers
     have no direct knowledge of the investment decisions made by the portfolio
     managers managing other portions of such Purchaser's assets, the
     representation set forth above shall only apply with respect to the portion
     of assets managed by the portfolio manager that made the investment
     decision to purchase the Securities covered by this Agreement. Other than
     to other Persons party to this Agreement, such Purchaser has maintained the
     confidentiality of all disclosures made to it in connection with this
     transaction (including the existence and terms of this transaction).

          (g) Access to Information. Such Purchaser acknowledges that it has
     received and had the opportunity to review (i) copies of the SEC Reports,
     and (ii) all exhibits thereto. Such Purchaser further acknowledges that it
     or its representatives have been afforded (iii) the opportunity to ask such
     questions as it has deemed necessary of, and to receive answers from,
     representatives of the Company concerning the terms and conditions of the
     offering of the Securities, the merits and risks of investing in the
     Securities, (iv) access to information about the Company and the Company's
     financial condition, results of operations, business, properties,
     management and prospects sufficient to enable it to evaluate its investment
     in the Securities; and (v) the opportunity to obtain such additional
     information which the Company possesses or can acquire without unreasonable
     effort or expense that is necessary to verify the accuracy and completeness
     of the information contained in the SEC Reports.

          (h) Restrictions on Securities. Such Purchaser understands that the
     Securities have not been registered under the Securities Act and may not be
     offered, resold, pledged or otherwise transferred except (a) pursuant to an
     exemption from registration under the Securities Act or pursuant to an
     effective registration statement in compliance with Section 5 under the
     Securities Act and (b) in accordance with all applicable securities laws of
     the states of the United States and other jurisdictions.

                                      -16-

<PAGE>

                                   ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

     4.1 Transfer Restrictions.

          (a) The Securities may only be disposed of in compliance with state
     and federal securities laws. In connection with any transfer of Securities
     other than pursuant to an effective registration statement or Rule 144, the
     Company may require the transferor thereof to provide to the Company an
     opinion of counsel to the Company, the form and substance of which opinion
     shall be reasonably satisfactory to the Company, to the effect that such
     transfer does not require registration of such transferred Securities under
     the Securities Act.

          (b) The Purchasers agree to the imprinting, so long as is required by
     this Section 4.1(b), of a legend on any of the Securities in the following
     form:

          THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
          ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND ARE
          "RESTRICTED SECURITIES" AS THAT TERM IS DEFINED IN RULE 144 UNDER THE
          SECURITIES ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
          PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
          REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND THE APPLICABLE
          STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
          THEREUNDER, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE
          REASONABLE SATISFACTION OF COUNSEL TO THE ISSUER.

     4.2 Furnishing of Information. As long as any Purchaser owns Securities,
the Company covenants to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by
the Company after the date hereof pursuant to the Exchange Act. As long as any
Purchaser owns Securities, if the Company is not required to file reports
pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and
make publicly available in accordance with Rule 144(c) such information as is
required for the Purchasers to sell the Shares and Underlying Shares under Rule
144. The Company further covenants that it will take such further action as any
holder of Shares and Underlying Shares may reasonably request, to the extent
required from time to time to enable such Person to sell such Shares and
Underlying Shares without registration under the Securities Act within the
requirements of the exemption provided by Rule 144.

     4.3 Integration. The Company shall not sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the Securities in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Purchasers or that would be
integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market such that it would require shareholder
approval prior to the closing of such other transaction unless shareholder
approval is obtained before the closing of such subsequent transaction.

                                      -17-

<PAGE>

     4.4 Securities Laws Disclosure; Publicity. The Company shall, within one
Business Day of the Closing Date, issue a press release disclosing the material
terms of the transactions contemplated hereby, and shall file a Current Report
on Form 8-K (the "Closing 8-K") which shall attach the Transaction Documents
thereto by the first Business Day following the Closing Date. The press release
and the Closing 8-K shall be acceptable to the Purchasers in their reasonable
discretion. No Purchaser shall issue any such press release or otherwise make
any such public statement without the prior consent of the Company. The Company
shall not publicly disclose the name of any Purchaser, or include the name of
any Purchaser in any filing with the Commission or any regulatory agency or
Trading Market, without the prior written consent of such Purchaser, except (i)
as required by federal securities law in connection with (A) any registration
statement contemplated by the Registration Rights Agreement and (B) the filing
of final Transaction Documents (including signature pages thereto) with the
Commission and (ii) to the extent such disclosure is required by law or Trading
Market regulations, in which case the Company shall provide the Purchasers with
prior notice of such disclosure permitted under this subclause (ii).

     4.5 Use of Proceeds. The Company shall use the net proceeds from the sale
of the Shares hereunder as set forth on Schedule 4.5 of the Disclosure Schedule.

     4.6 Listing of Common Stock. The Company hereby agrees to use best efforts
to maintain the listing of the Common Stock on a Trading Market, and as soon as
reasonably practicable following the Closing to list all of the Shares and
Underlying Shares on such Trading Market. The Company further agrees, if the
Company applies to have the Common Stock traded on any other Trading Market, it
will include in such application all of the Shares and Underlying Shares, and
will take such other action as is necessary to cause all of the Shares and
Underlying Shares to be listed on such other Trading Market as promptly as
possible. The Company will take all action reasonably necessary to continue the
listing and trading of its Common Stock on a Trading Market and will comply in
all respects with the Company's reporting, filing and other obligations under
the bylaws or rules of the Trading Market.

     4.7 Short Sales and Confidentiality After The Date Hereof. Each Purchaser,
severally and not jointly with the other Purchasers, covenants that neither it
nor any Affiliate acting on its behalf or pursuant to any understanding with it
will engage in any transactions, including any Short Sales, in the securities of
the Company during the period commencing at the Discussion Time and ending at
the time that the transactions contemplated by this Agreement are first publicly
announced as described in Section 4.4. Each Purchaser, severally and not jointly
with the other Purchasers, covenants that neither it nor any Affiliate acting on
its behalf or pursuant to any understanding with it will engage in any Short
Sales in the securities of the Company during the period commencing at the
Discussion Time and ending on the date the Closing 8-K is filed with the SEC
("Black-out Termination Date"). Each Purchaser, severally and not jointly with
the other Purchasers, covenants that until such time as the transactions
contemplated by this Agreement are publicly disclosed by the Company as
described in Section 4.4, such Purchaser will maintain the confidentiality of
all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction). Each Purchaser understands and

                                      -18-

<PAGE>

acknowledges, severally and not jointly with any other Purchaser, that the
Commission currently takes the position that coverage of short sales of shares
of the Common Stock "against the box" prior to the Effective Date of the
Registration Statement with respect to the Shares is a violation of Section 5 of
the Securities Act, as set forth in Item 65, Section A, of the Manual of
Publicly Available Telephone Interpretations, dated July 1997, compiled by the
Office of Chief Counsel, Division of Corporation Finance. Notwithstanding the
foregoing, no Purchaser makes any representation, warranty or covenant hereby
that it will not engage in Short Sales in the securities of the Company after
the Black-out Termination Date. Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser's assets and the portfolio
managers have no direct knowledge of the investment decisions made by the
portfolio managers managing other portions of such Purchaser's assets, the
covenant set forth above shall only apply with respect to the portion of assets
managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement.

     4.8 Form D; Blue Sky Filings. The Company agrees to timely file a Form D
with respect to the Securities as required under Regulation D and to provide a
copy thereof, promptly upon request of any Purchaser. The Company shall take
such action as the Company shall reasonably determine is necessary in order to
obtain an exemption for, or to qualify the Securities for, sale to the
Purchasers at the Closing under applicable securities or "Blue Sky" laws of the
states of the United States, and shall provide evidence of such actions promptly
upon request of any Purchaser.

     4.9 Closing Documents. On or prior to fourteen (14) calendar days after the
Closing Date, the Company agrees to deliver, or cause to be delivered, to each
Purchaser and Schulte Roth & Zabel LLP executed copies of the Transaction
Documents, Securities and any other document required to be delivered to any
party pursuant to Section 2.2 hereof.

     4.10 Additional Issuances of Securities.

          (a) For purposes of this Section 4.10, the following definitions shall
     apply.

               (i) "Approved Stock Plan" means any employee benefit plan which
has been approved by the Board of Directors of the Company, pursuant to which
the Company's securities may be issued to any employee, officer or director for
services provided to the Company.

               (ii) "Common Stock Equivalents" means, collectively, Options and
Convertible Securities.

               (iii) "Convertible Securities" means any stock or securities
(other than Options) convertible into or exercisable or exchangeable for shares
of Common Stock.

               (iv) "Excluded Securities" means (i) any Common Stock or Options
issued or issuable in connection with any Approved Stock Plan; (ii) any Common
Stock issuable upon the exercise of the Warrants; (iii) any Common Stock
issuable upon conversion, exercise or exchange of any Options or Convertible
Securities which are outstanding on the day immediately preceding the date
hereof, provided that the terms of any such Options or Convertible Securities

                                      -19-

<PAGE>

are not amended, modified or changed on or after the date hereof; or (iv) any
Common Stock or Common Stock Equivalents issued (whether in exchange for Options
or Convertible Securities or otherwise) in any Change of Control Transaction (as
defined below).

               (v) "Options" means any rights, warrants or options to subscribe
for or purchase shares of Common Stock or Convertible Securities.

               (vi) "Ownership Interest" means, with respect to any Purchaser at
any given time, the quotient of (x) the Purchaser Securities Amount of such
Purchaser and (y) the sum of (I) the Common Stock Deemed Outstanding (as defined
in the Warrants) as of such time and (II) the Warrant Shares issuable upon
exercise of the Warrants held by, or issuable to, such Purchaser pursuant to the
Transaction Documents as of such time, without regard for any limitations on
exercise in the Warrants held by such Purchaser.

               (vii) "Purchaser Securities Amount" means, with respect to any
Purchaser at any given time, the number of Shares and Common Stock issuable upon
exercise of the Warrants held by, or issuable to, such Purchaser pursuant to the
Transaction Documents as of such time, without regard for any limitations on
exercise in the Warrants held by such Purchaser.

               (viii) "Subsequent Placement" means any offer or sale by or on
behalf of the Company of the Company's equity or equity equivalent securities,
including without limitation any debt, preferred stock or other instrument or
security that is, at any time during its life and under any circumstances,
convertible into or exchangeable or exercisable for shares of Common Stock or
Common Stock Equivalents, for direct or indirect consideration of cash or cash
equivalents, pursuant to either (a) a transaction exempt from Section 5 of the
Securities Act; (b) a bona fide underwritten public offering with a nationally
recognized underwriter which generates gross proceeds to the Company of less
than $10,000,000; (c) a bona fide underwritten public offering with a nationally
recognized underwriter which generates gross proceeds to the Company of at least
$10,000,000 in an "at-the-market offering" as defined in Rule 415(a)(4) under
the 1933 Act or containing any "equity lines"; or (d) an offering pursuant to a
registration statement filed under Section 5 of the Securities Act other than a
bona fide underwritten public offering with a nationally recognized underwriter
which generates gross proceeds to the Company of at least $10,000,000.

          (b) From the date hereof until the date that is sixty (60) Trading
     Days following the Effective Date (the "Trigger Date"), the Company will
     not, directly or indirectly, (x) file any registration statement with the
     SEC prior to the filing of the Registration Statement (as defined in the
     Registration Rights Agreement) or (y) cause any registration statement
     filed on or after the date hereof to become effective under the 1933 Act
     prior to the Effective Date (as defined in the Registration Rights
     Agreement); provided, that, the Company shall not be required to comply
     with clause (y) above if the Company has acted in good faith with respect
     to its agreements and obligations set forth in the Registration Rights
     Agreement and used its reasonable best efforts to have the Registration
     Statement declared effective under the 1933 Act prior to the Effective
     Date.

          (c) From the Trigger Date until the earlier to occur of (x) the second
     anniversary of the Closing Date and (y) such date after which the Company
     has, directly or

                                      -20-

<PAGE>

     indirectly, in one or more related transactions (collectively, the "Change
     of Control Transaction"): (I) allowed another Person to make a purchase,
     tender or exchange offer that is accepted by the holders of more than 50%
     of 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 (II) consummated a stock purchase
     agreement or other business combination (including, without limitation, a
     merger or consolidation, reorganization, recapitalization, spin-off or
     scheme of arrangement) with another Person whereby such other Person, after
     giving effect to such Change of Control Transaction, is the beneficial
     owner of 50% or more of the outstanding shares of Common Stock, the Company
     will not, directly or indirectly, effect any Subsequent Placement unless
     the Company shall have first complied with this Section 4.10(c).

               (i) The Company shall deliver to each Purchaser an irrevocable
          written notice (the "Offer Notice") of any proposed or intended
          issuance or sale (the "Offer") of the securities being offered (the
          "Offered Securities") in a Subsequent Placement, which Offer Notice
          shall (w) identify and describe the Offered Securities, (x) describe
          the price and other terms upon which they are to be issued or sold,
          and the number or amount of the Offered Securities to be issued or
          sold, (y) identify the persons or entities (if known) to which or with
          which the Offered Securities are to be offered, issued or sold and (z)
          offer to issue and sell to such Purchasers such percentage of the
          Offered Securities that would permit the Purchasers to maintain their
          aggregate Ownership Interest in the Company as in effect immediately
          prior to the consummation of such Subsequent Placement, allocated
          among such Purchasers (a) based on such Purchaser's pro rata portion
          of the aggregate Purchaser Securities Amount of all the Purchasers at
          such time (the "Basic Amount"), and (b) with respect to each Purchaser
          that elects to purchase its Basic Amount, any additional portion of
          the Offered Securities attributable to the Basic Amounts of other
          Purchasers as such Purchaser shall indicate it will purchase or
          acquire should the other Purchasers subscribe for less than their
          Basic Amounts (the "Undersubscription Amount"), which process shall be
          repeated until the Purchasers shall have an opportunity to subscribe
          for any remaining Undersubscription Amount.

               (ii) To accept an Offer, in whole or in part, such Purchaser must
          deliver a written notice to the Company prior to the end of the fifth
          (5th) Business Day after such Purchaser's receipt of the Offer Notice
          (the "Offer Period"), setting forth the portion of such Purchaser's
          Basic Amount that such Purchaser elects to purchase and, if such
          Purchaser shall elect to purchase all of its Basic Amount, the
          Undersubscription Amount, if any, that such Purchaser elects to
          purchase (in either case, the "Notice of Acceptance"). If the Basic
          Amounts subscribed for by all Purchasers are less than the total of
          all of the Basic Amounts, then each Purchaser who has set forth an
          Undersubscription Amount in its Notice of Acceptance shall be entitled
          to purchase, in addition to the Basic Amounts subscribed for, the
          Undersubscription Amount it has subscribed for; provided, however,
          that if the Undersubscription Amounts subscribed for exceed the
          difference between the total of all the Basic Amounts and the Basic
          Amounts subscribed for (the "Available Undersubscription Amount"),
          each Purchaser who has subscribed for any Undersubscription Amount
          shall be entitled to purchase only that portion of the Available
          Undersubscription Amount as the Basic Amount of such

                                      -21-

<PAGE>

          Purchaser bears to the total Basic Amounts of all Purchasers that have
          subscribed for Undersubscription Amounts, subject to rounding by the
          Company to the extent its deems reasonably necessary. Notwithstanding
          the foregoing, if the Company desires to modify or amend the terms and
          conditions of the Offer prior to the expiration of the Offer Period,
          the Company may deliver to the Purchasers a new Offer Notice and the
          Offer Period shall expire on the third (3rd) Business Day after such
          Purchaser's receipt of such new Offer Notice.

               (iii) The Company shall have twenty (20) Business Days from the
          expiration of the Offer Period above to offer, issue or sell all or
          any part of such Offered Securities as to which a Notice of Acceptance
          has not been given by the Purchasers (the "Refused Securities")
          pursuant to a definitive agreement(s) (the "Subsequent Placement
          Agreement"), but only upon terms and conditions (including, without
          limitation, unit prices and interest rates) that are not more
          favorable to the acquiring person or persons or less favorable to the
          Company than those set forth in the Offer Notice.

               (iv) In the event the Company shall propose to sell less than all
          the Refused Securities (any such sale to be in the manner and on the
          terms specified in Section 4.10(c)(iii) above), then each Purchaser
          may, at its sole option and in its sole discretion, reduce the number
          or amount of the Offered Securities specified in its Notice of
          Acceptance to an amount that shall be not less than the number or
          amount of the Offered Securities that such Purchaser elected to
          purchase pursuant to Section 4.10(c)(ii) above multiplied by a
          fraction, (a) the numerator of which shall be the number or amount of
          Offered Securities the Company actually proposes to issue or sell
          (including Offered Securities to be issued or sold to Purchasers
          pursuant to Section 4.10(c)(iii) above prior to such reduction) and
          (b) the denominator of which shall be the original amount of the
          Offered Securities. In the event that any Purchaser so elects to
          reduce the number or amount of Offered Securities specified in its
          Notice of Acceptance, the Company may not issue or sell more than the
          reduced number or amount of the Offered Securities unless and until
          such securities have again been offered to the Purchasers in
          accordance with Section 4.10(c)(i) above.

               (v) Upon the closing of the issuance or sale of all or less than
          all of the Refused Securities, the Purchasers shall acquire from the
          Company, and the Company shall issue to the Purchasers, the number or
          amount of Offered Securities specified in the Notices of Acceptance,
          as reduced pursuant to Section 4.10(c)(iv) above if the Purchasers
          have so elected, upon the terms and conditions specified in the Offer.
          The purchase by the Purchasers of any Offered Securities is subject in
          all cases to the preparation, execution and delivery by the Company
          and the Purchasers of a purchase agreement relating to such Offered
          Securities reasonably satisfactory in form and substance to the
          Purchasers and their respective counsel.

               (vi) Any Offered Securities not acquired by the Purchasers or
          other persons in accordance with Section 4.10(c)(iii) above may not be
          issued or sold until they are again offered to the Purchasers under
          the procedures specified in this Agreement.

                                      -22-

<PAGE>

               (vii) The Company and the Purchasers agree that if any Purchaser
          elects to participate in the Offer, (x) neither the Subsequent
          Placement Agreement with respect to such Offer nor any other
          transaction documents related thereto (collectively, the "Subsequent
          Placement Documents") shall include any term or provisions whereby any
          Purchaser shall be required to agree to any restrictions in trading as
          to any securities of the Company owned by such Purchaser prior to such
          Subsequent Placement, and (y) such Purchaser shall be entitled to
          registration rights, if any, no less favorable than such registration
          rights, if any, provided to any other Persons acquiring securities in
          such Subsequent Placement.

               (viii) Notwithstanding anything to the contrary in this Section
          4.10 and unless otherwise agreed to by the Purchasers, the Company
          shall either confirm in writing to the Purchasers that the transaction
          with respect to the Subsequent Placement has been abandoned or shall
          publicly disclose its intention to issue the Offered Securities, in
          either case in such a manner such that the Purchasers will not be in
          possession of material non-public information, by the twentieth (20th)
          Business Day following the expiration of the Offer Period (the "Offer
          Information Deadline"). If by the Offer Information Deadline no public
          disclosure regarding a transaction with respect to the Offered
          Securities has been made, and no notice regarding the abandonment of
          such transaction has been received by the Purchasers, such transaction
          shall be deemed to have been abandoned and the Purchasers shall not be
          deemed to be in possession of any material, non-public information
          with respect to the Company. Should the Company decide to pursue such
          transaction with respect to the Offered Securities, the Company shall
          provide each Purchaser with another Offer Notice and each Purchaser
          will again have the right of participation set forth in this Section
          4.10(c). After any Offer Information Deadline, the Company shall not
          be permitted to deliver an additional Offer Notice to the Purchasers
          prior to the fifth (5th) Business Day after such Offer Information
          Deadline.

               (ix) The restrictions contained in subsections (b) and (c) of
          this Section 4.10 shall not apply in connection with the issuance of
          any Excluded Securities.

     4.11 Fair Market Value. The Company hereby covenants and agrees that the
fair market value of the Securities for purposes of Article IX of the Charter or
any repurchase of any of the Securities in accordance with applicable law by the
Company shall be the Subscription Amount of such Securities.

                                   ARTICLE V.
                                  MISCELLANEOUS

     5.1 Termination. This Agreement may be terminated by any Purchaser, as to
such Purchaser's obligations hereunder only and without any effect whatsoever on
the obligations between the Company and the other Purchasers, or the Company by
written notice to the other parties, if the Closing has not been consummated on
or before April 15, 2007, provided, however, that no such termination will
affect the right of any party to sue for any breach by the other party (or
parties).

                                      -23-

<PAGE>

     5.2 Fees and Expenses. Except as expressly set forth in the Transaction
Documents to the contrary, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all transfer
agent fees, stamp taxes and other taxes and duties levied in connection with the
delivery of any Securities to the Purchasers.

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

     5.4 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
set forth on the signature pages attached hereto prior to 3:30 p.m. (Las Vegas
time) on a Business Day, (b) the next Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto on a day that
is not a Business Day or later than 3:30 p.m. (Las Vegas time) on any Business
Day, (c) the 2nd Business Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service, or (d) upon actual receipt by
the party to whom such notice is required to be given. The address for such
notices and communications shall be as set forth on the signature pages attached
hereto, and a copy of any notices to any Purchaser (for informational purposes
only) shall also be delivered to:

                           Schulte Roth & Zabel LLP
                           919 Third Avenue
                           New York, New York  10022
                           Telephone: (212) 756-2000
                           Facsimile: (212) 593-5955
                           Attention: Eleazer N. Klein, Esq.

     5.5 Amendments; Waivers. No provision of this Agreement may be waived or
amended except in a written instrument signed, in the case of an amendment, by
the Company and the Purchasers holding not less than 51% of the Shares or, in
the case of a waiver, by the party against whom enforcement of any such waived
provision is sought. No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right.

     5.6 Indemnification.

          (a) In consideration of each Purchaser's execution and delivery of the
     Transaction Documents and acquiring the Securities thereunder and in
     addition to all of the

                                      -24-

<PAGE>

     Company's other obligations under the Transaction Documents, the Company
     shall defend, protect, indemnify and hold harmless each Purchaser 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 this Agreement)
     (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 (i) 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, (ii) 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 (iii) 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 (x) the execution, delivery, performance
     or enforcement of the Transaction Documents or any other certificate,
     instrument or document contemplated hereby or thereby or (y) any
     transaction financed or to be financed in whole or in part, directly or
     indirectly, with the proceeds of the issuance of the Securities, in each
     case, solely to the extent arising with respect to any willful misconduct,
     gross negligence or fraud of the Company or any of its Subsidiaries, or any
     of their directors, officers, employees, agents, or representatives,
     respectively. 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.

          (b) Promptly after receipt by an Indemnitee under this Section 5.6 of
     notice of the commencement of any action or proceeding (including any
     governmental action or proceeding) involving an Indemnified Liability, such
     Indemnitee shall, if a claim for indemnification in respect thereof is to
     be made against any indemnifying party under this Section 5.6, deliver to
     the indemnifying party a written notice of the commencement thereof, and
     the indemnifying party shall have the right to participate in, and, to the
     extent the indemnifying party so desires, jointly with any other
     indemnifying party similarly noticed, to assume control of the defense
     thereof with counsel mutually satisfactory to the indemnifying party and
     the Indemnitee; provided, however, that an Indemnitee shall have the right
     to retain its own counsel with the fees and expenses of not more than one
     counsel for such Indemnitee to be paid by the indemnifying party, if, in
     the reasonable opinion of the Indemnitee, the representation by such
     counsel of the Indemnitee and the indemnifying party would be inappropriate
     due to actual or potential conflicts of interests between such Indemnitee
     and any other party represented by such counsel in such proceeding. Legal
     counsel referred to in the immediately preceding sentence shall be selected
     by the Investors holding at least a majority of the Shares. The Indemnitee
     shall cooperate fully with the indemnifying party in connection with any
     negotiation or defense of any such action or Indemnified Liabilities by the
     indemnifying party and shall furnish to the indemnifying party all
     information reasonably available to the Indemnitee that relates to such
     action or Indemnified Liabilities. The indemnifying party shall keep the
     Indemnitee fully apprised at all times as to the status of the defense or
     any settlement negotiations with respect

                                      -25-

<PAGE>

     thereto. No indemnifying party shall be liable for any settlement of any
     action, claim or proceeding effected without its prior written consent,
     provided, however, that the indemnifying party shall not unreasonably
     withhold, delay or condition its consent. No indemnifying party shall,
     without the prior written consent of the Indemnitee, consent to entry of
     any judgment or enter into any settlement or other compromise which does
     not include as an unconditional term thereof the giving by the claimant or
     plaintiff to such Indemnitee of a release from all liability in respect to
     such Indemnified Liabilities or litigation. Following indemnification as
     provided for hereunder, the indemnifying party shall be subrogated to all
     rights of the Indemnitee with respect to all third parties, firms or
     corporations relating to the matter for which indemnification has been
     made. The failure to deliver written notice to the indemnifying party
     within a reasonable time of the commencement of any such action shall not
     relieve such indemnifying party of any liability to the Indemnitee under
     this Section 5.6, except to the extent that the indemnifying party is
     prejudiced in its ability to defend such action.

          (c) The indemnification required by this Section 5.6 shall be made by
     periodic payments of the amount thereof during the course of the
     investigation or defense, as and when bills become due or Indemnified
     Liabilities become due.

          (d) The indemnity agreements contained herein shall be in addition to
     (x) any cause of action or similar right of the Indemnitee against the
     indemnifying party or others, and (y) any liabilities the indemnifying
     party may be subject to pursuant to the law.

     5.7 Headings. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

     5.8 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and permitted assigns. The
Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Required Holders, including by way of a
Fundamental Transaction (unless the Company is in compliance with the applicable
provisions governing Fundamental Transactions set forth in the Warrants). No
Purchaser may assign any of its rights hereunder without the consent of the
Company.

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

     5.10 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and
any other Transaction Documents (whether brought against a party hereto or its
respective affiliates, directors, officers, shareholders, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the
State of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the State of New York,
for the adjudication of any dispute hereunder or in connection herewith or with
any

                                      -26-

<PAGE>

transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY. If either party shall commence an action or
proceeding to enforce any provisions of the Transaction Documents, then the
prevailing party in such action or proceeding shall be reimbursed by the other
party for its reasonable attorneys' fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or
proceeding.

     5.11 Survival. The representations and warranties contained herein shall
survive the Closing and the delivery of the Shares.

     5.12 Execution. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a ".pdf" format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or ".pdf" signature page were an original thereof.

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

     5.14 Rescission and Withdrawal Right. Notwithstanding anything to the
contrary contained in (and without limiting any similar provisions of) any of
the other Transaction Documents, whenever any Purchaser exercises a right,
election, demand or option under a Transaction Document and the Company does not
timely perform its related obligations within the periods therein provided, then
such Purchaser may rescind or withdraw, in its sole discretion from time to time
upon written notice to the Company, any relevant notice, demand or election in
whole or in part without prejudice to its future actions and rights.

     5.15 Replacement of Securities. If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue
or cause to be issued in exchange and substitution for and upon cancellation
thereof (in the case of mutilation), or in lieu

                                      -27-

<PAGE>

of and substitution therefor, a new certificate or instrument, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft
or destruction. The applicant for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs (including
customary indemnity) associated with the issuance of such replacement
Securities.

     5.16 Construction. The parties agree that each of them and/or their
respective counsel has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of the Transaction Documents or any amendments hereto.

                            (Signature Pages Follow)

                                      -28-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

VENDINGDATA CORPORATION                 Address for Notice:

By: /s/ Mark R. Newburg                 1120 Town Center
    ---------------------------------   Suite 260
    Mark R. Newburg,                    Las Vegas, NV 89144
    President and Chief Executive       Fax: 702.733.7197
    Officer

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

GLG NORTH AMERICAN OPPORTUNITY FUND     Address for Notice:

By: /s/ Tim Kuschill                    Walker House
    ---------------------------------   87 Mary Street
Name: Tim Kuschill                      George Town
Title: Legal Counsel, GLG Partners LP   Grand Cayman K41-9002
                                        Cayman Islands

Subscription Amount: $4,306,250

                                        with a copy to:
Shares: 1,625,000

                                        c/o GLG Partners, LP
Warrants: 1,625,000                     1 Curzon Street
                                        London WIJ 5HB
                                        Facsimile: +44 20 7016 7200
                                        Telephone: +44 20 7016 7302
                                        Attention: Antonio Dossantos
                                        E-mail:
                                        antonio.dossantos@glgpartners.com

                                        Address for Delivery of Shares and
                                        Warrants for Purchaser:

                                        c/o GLG Partners, LP
                                        1 Curzon Street
                                        London WIJ 5HB
                                        Facsimile: +44 20 7016 7200
                                        Telephone: +44 20 7016 7302
                                        Attention: Antonio Dossantos
                                        E-mail:
                                        antonio.dossantos@glgpartners.com<PAGE>

                                                                    EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (this "Agreement") is made and
entered into as of March 28, 2007, among VendingData Corporation, a Nevada
corporation (the "Company"), and purchaser identified on the signature pages
hereto (each, including its successors and assigns, a "Purchaser" and
collectively the "Purchasers").

                                    RECITALS

     WHEREAS, the Company will sell $4,306,250 of the Company's Common Stock and
Warrants to the Purchasers pursuant to that certain Securities Purchase
Agreement ("Purchase Agreement") dated as of March 27, 2007 by and among the
Company and the Purchasers.

                                    AGREEMENT

          NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Lenders agree as
follows:

     1. Definitions. Capitalized terms used and not otherwise defined herein
that are defined in the Purchase Agreement shall have the meanings given such
terms in the Purchase Agreement. As used in this Agreement, the following terms
shall have the following meanings:

          "Advice" shall have the meaning set forth in Section 6(d).

          "Effectiveness Period" shall have the meaning set forth in Section 2.

          "Effective Date" means the date that the Registration Statement has
     been declared effective by the Commission.

          "Effectiveness Deadline" means the date (i) in the event that the
     Registration Statement is not subject to a full review by the Commission,
     one-hundred and fifty (150) calendar days after the Closing Date or (ii) in
     the event that the Registration Statement is subject to a full review by
     the Commission, one-hundred and eighty (180) calendar days after the
     Closing Date.

          "Filing Date" means, with respect to the initial Registration
     Statement required hereunder, means June 15, 2007.

          "Holder" or "Holders" means the holder or holders, as the case may be,
     from time to time of Registrable Securities.

          "Indemnified Party" shall have the meaning set forth in Section 5(c).

                                      -1-

<PAGE>

          "Indemnifying Party" shall have the meaning set forth in Section 5(c).

          "Legal Counsel" shall be Schulte Roth & Zabel LLP or such other
     counsel as hereafter designated by the Holders of a majority of the
     Registrable Securities.

          "Losses" shall have the meaning set forth in Section 5(a).

          "Plan of Distribution" shall have the meaning set forth in Section 2.

          "Prospectus" means the prospectus included in a Registration Statement
     (including, without limitation, a prospectus that includes any information
     previously omitted from a prospectus filed as part of an effective
     registration statement in reliance upon Rule 430A promulgated under the
     Securities Act), as amended or supplemented by any prospectus supplement,
     with respect to the terms of the offering of any portion of the Registrable
     Securities covered by a Registration Statement, and all other amendments
     and supplements to the Prospectus, including post-effective amendments, and
     all material incorporated by reference or deemed to be incorporated by
     reference in such Prospectus.

          "Registrable Securities" means all of (i) the Shares; (ii) the
     Underlying Shares; and (iii) any shares of Common Stock issued or issuable
     upon any stock split, dividend or other distribution, recapitalization or
     similar event with respect to the foregoing; provided, however, a security
     shall no longer be a Registrable Security once it has been sold, or may be
     sold, without volume restrictions pursuant to Rule 144(k) or sold pursuant
     to a Registration Statement.

          "Registration Statement" means the registration statements required to
     be filed hereunder, including (in each case) the Prospectus, amendments and
     supplements to such registration statement or Prospectus, including pre-
     and post-effective amendments, all exhibits thereto, and all material
     incorporated by reference or deemed to be incorporated by reference in such
     registration statement.

          "Rule 415" means Rule 415 promulgated by the Commission pursuant to
     the Securities Act, as such Rule may be amended from time to time, or any
     similar rule or regulation hereafter adopted by the Commission having
     substantially the same purpose and effect as such Rule.

          "Rule 424" means Rule 424 promulgated by the Commission pursuant to
     the Securities Act, as such Rule may be amended from time to time, or any
     similar rule or regulation hereafter adopted by the Commission having
     substantially the same purpose and effect as such Rule.

          "Selling Shareholder Questionnaire" shall have the meaning set forth
     in Section 3(a).

2.

          (a) Shelf Registration. On or prior to the Filing Date, and subject to
     the availability of Rule 415, the Company shall prepare and file with the
     Commission a "Shelf"

                                      -2-

<PAGE>

     Registration Statement covering the resale of the Registrable Securities
     for an offering to be made on a continuous basis pursuant to Rule 415. The
     Registration Statement shall be on Form S-3 (except if the Company is not
     then eligible to register for resale the Registrable Securities on Form
     S-3, in which case such registration shall be on another appropriate form
     in accordance herewith) and shall contain substantially the "Plan of
     Distribution" attached hereto as Annex A, as modified by the Company as
     necessary to conform to comments from the Commission. Subject to the terms
     of this Agreement, the Company shall use its best efforts to cause a
     Registration Statement to be declared effective under the Securities Act as
     promptly as possible after the filing thereof, and shall use its best
     efforts to keep such Registration Statement continuously effective under
     the Securities Act until the earlier of (i) all Registrable Securities
     covered by such Registration Statement have been sold, or may be sold
     without volume restrictions pursuant to Rule 144(k), as determined by the
     counsel to the Company pursuant to a written opinion letter to such effect,
     addressed and acceptable to the Company's transfer agent and the affected
     Holders, or (ii) March 28, 2009 (the "Effectiveness Period"). Within two
     Trading Days after the Registration Statement is declared effective, the
     Company shall (i) file a final Prospectus with the Commission pursuant to
     Rule 424 and (ii) notify the Holders via facsimile of effectiveness of the
     Registration Statement.

          (b) Sufficient Number of Shares Registered. In the event the number of
     shares available under a Registration Statement filed pursuant to Section
     2(a) is insufficient to cover all of the Registrable Securities required to
     be covered by such Registration Statement or an Holder's allocated portion
     of the Registrable Securities pursuant to Section 2(b), the Company shall
     amend the applicable Registration Statement, or file a new Registration
     Statement (on the short form available therefor, if applicable), or both,
     so as to cover all of the Registrable Securities as of the trading day
     immediately preceding the date of the filing of such amendment or new
     Registration Statement, in each case, as soon as practicable, but in any
     event not later than fifteen (15) days after the necessity therefor arises.
     The Company shall use its best efforts to cause such amendment and/or new
     Registration Statement to become effective as soon as practicable following
     the filing thereof. For purposes of the foregoing provision, the number of
     shares available under a Registration Statement shall be deemed
     "insufficient to cover all of the Registrable Securities" if at any time
     the number of shares of Common Stock available for resale under the
     Registration Statement is less than the product determined by multiplying
     (i) the total number of Registrable Securities as of such time by (ii)
     0.90. The calculation set forth in the foregoing sentence shall be made
     without regard to any limitations on the exercise of the Warrants and such
     calculation shall assume that the Warrants are then exercisable for shares
     of Common Stock at the then prevailing Exercise Price (as defined in the
     Warrants).

          (c) Effect of Failure to File and Obtain and Maintain Effectiveness of
     Registration Statement. If (i) a Registration Statement covering all of the
     Registrable Securities required to be covered thereby and required to be
     filed by the Company pursuant to this Agreement is (A) not filed with the
     Commission on or before the respective Filing Date (a "FILING FAILURE") or
     (B) not declared effective by the Commission on or before the respective
     Effectiveness Deadline (an "EFFECTIVENESS FAILURE") or (ii) on any day
     after the Effective Date sales of all of the Registrable Securities
     required to be included on such Registration Statement cannot be made
     (other than during an Allowable Grace Period (as defined in Section 3(j))
     pursuant to such Registration Statement or otherwise (including, without
     limitation, because of a failure to keep such Registration Statement
     effective, to disclose such information as is necessary

                                      -3-

<PAGE>

     for sales to be made pursuant to such Registration Statement, to register a
     sufficient number of shares of Common Stock or to maintain the listing of
     the Common Stock) (a "MAINTENANCE FAILURE") then, as partial relief for the
     damages to any holder by reason of any such delay in or reduction of its
     ability to sell the underlying shares of Common Stock (which remedy shall
     not be exclusive of any other remedies available at law or in equity), the
     Company shall pay to each holder of Registrable Securities relating to such
     Registration Statement an amount in cash equal to one percent (1%) of the
     aggregate Subscription Amount (as such term is defined in the Purchase
     Agreement) of such Holder's Registrable Securities included in such
     Registration Statement on each of the following dates: (i) the day of a
     Filing Failure; (ii) the day of an Effectiveness Failure; (iii) the initial
     day of a Maintenance Failure; (iv) on every thirtieth day after the day of
     a Filing Failure and thereafter (pro rated for periods totaling less than
     thirty days) until such Filing Failure is cured; (v) on every thirtieth day
     after the day of an Effectiveness Failure and thereafter (pro rated for
     periods totaling less than thirty days) until such Effectiveness Failure is
     cured; and (vi) on every thirtieth day after the initial day of a
     Maintenance Failure and thereafter (pro rated for periods totaling less
     than thirty days) until such Maintenance Failure is cured. The payments to
     which a holder shall be entitled pursuant to this Section 2(c) are referred
     to herein as "REGISTRATION DELAY PAYMENTS." Registration Delay Payments
     shall be paid on the earlier of (I) the dates set forth above and (II) the
     third Business Day after the event or failure giving rise to the
     Registration Delay Payments is cured. Notwithstanding anything herein or in
     the Purchase Agreement to the contrary, in no event shall the aggregate
     amount of Registration Delay Payments exceed, in the aggregate, five
     percent (5%) of the aggregate Subscription Amount.

     3. Registration Procedures

          In connection with the Company's registration obligations hereunder,
the Company shall:

          (a) Not less than five Trading Days prior to the filing of each
     Registration Statement and not less than two Trading Day prior to the
     filing of any related amendment or supplement thereto, the Company shall,
     (i) furnish to each Holder the selling stockholder and plan of distribution
     sections made a part thereof, along with any other section that
     specifically references a Holder, (ii) cause its officers, directors and
     counsel to respond to all reasonable inquiries from the Holders as shall be
     necessary for each Holder to conduct a reasonable investigation within the
     meaning of the Securities Act and (iii) permit each Holder and Legal
     Counsel to review and comment upon the Registration Statement and all
     amendments and supplements to all Registration Statements. Each Holder
     agrees to be named in the Registration Statement and to carry out the offer
     and sale of Registrable Securities held by such Holder in a conformance
     with the Plan of Distribution attached hereto as Annex A, as modified by
     the Company as necessary to conform to comments from the Commission. Each
     Holder agrees to furnish to the Company a completed Questionnaire in the
     form attached to this Agreement as Annex B (a "Selling Shareholder
     Questionnaire") by the end of the fourth Trading Day following the date on
     which such Holder receives the Selling Shareholder Questionnaire and draft
     materials in accordance with this Section. The Company shall ensure that
     each Registration Statement (including any amendments or supplements
     thereto and prospectuses contained therein) shall not contain any untrue
     statement of a material fact

                                      -4-

<PAGE>

     or omit to state a material fact required to be stated therein, or
     necessary to make the statements therein (in the case of prospectuses, in
     the light of the circumstances in which they were made) not misleading.

          (b) (i) Prepare and file with the Commission such amendments,
     including post-effective amendments, to a Registration Statement and the
     Prospectus used in connection therewith as may be necessary to keep a
     Registration Statement continuously effective as to the applicable
     Registrable Securities for the Effectiveness Period; (ii) cause the related
     Prospectus to be amended or supplemented by any required Prospectus
     supplement (subject to the terms of this Agreement), and as so supplemented
     or amended to be filed pursuant to Rule 424; (iii) respond as promptly as
     reasonably possible to any comments received from the Commission with
     respect to a Registration Statement or any amendment thereto; and (iv)
     comply in all material respects with the provisions of the Securities Act
     and the Exchange Act applicable to the Company with respect to the
     disposition of all Registrable Securities covered by a Registration
     Statement during the applicable period in accordance with the intended
     methods of disposition by the Holders thereof set forth in such
     Registration Statement as so amended or in such Prospectus as so
     supplemented. The Company shall furnish to Legal Counsel, without charge
     copies of any correspondence from the Commission or the staff of the
     Commission to the Company or its representatives relating to any
     Registration Statement.

          (c) Notify the Holders of Registrable Securities to be sold (which
     notice shall, pursuant to clauses (ii) through (iv) hereof, be accompanied
     by an instruction to suspend the use of the Prospectus until the requisite
     changes have been made) as promptly as reasonably possible (i) with respect
     to a Registration Statement or any post-effective amendment, when the same
     has become effective; (ii) of the issuance by the Commission or any other
     federal or state governmental authority of any stop order suspending the
     effectiveness of a Registration Statement covering any or all of the
     Registrable Securities; (iii) of the receipt by the Company of any
     notification with respect to the suspension of the qualification or
     exemption from qualification of any of the Registrable Securities for sale
     in any jurisdiction; or (iv) of the occurrence of any event or passage of
     time that makes the financial statements included in a Registration
     Statement ineligible for inclusion therein or any statement made in a
     Registration Statement or Prospectus or any document incorporated or deemed
     to be incorporated therein by reference untrue in any material respect or
     that requires any revisions to a Registration Statement, Prospectus or
     other documents so that, in the case of a Registration Statement or the
     Prospectus, as the case may be, it will not contain any untrue statement of
     a material fact or omit to state any material fact required to be stated
     therein or necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading. Any and all of
     such information contemplated by subparagraphs (i) through (iv) shall
     remain confidential to each Holder until such information otherwise becomes
     public, unless disclosure by a Holder is required by law.

                                      -5-

<PAGE>

          (d) Use its best efforts to avoid the issuance of, or, if issued,
     obtain the withdrawal of (i) any order suspending the effectiveness of a
     Registration Statement, or (ii) any suspension of the qualification (or
     exemption from qualification) of any of the Registrable Securities for sale
     in any jurisdiction, at the earliest practicable moment.

          (e) Furnish to each Holder, without charge, at least one conformed
     copy of each such final Prospectus and each final amendment or supplement
     thereto, promptly after the filing of such documents with the Commission,
     for Holder's delivery in connection with a sale of the Registrable
     Securities.

          (f) Subject to the terms of this Agreement, the Company hereby
     consents to the use of each Prospectus and each amendment or supplement
     thereto, provided by the Company pursuant to subpart (e) above, by each of
     the selling Holders in connection with the offering and sale of the
     Registrable Securities covered by such Prospectus and any amendment or
     supplement thereto, except after the giving of any notice pursuant to
     Section 3(d).

          (g) If NASDR Rule 2710 requires any broker-dealer to make a filing
     prior to executing a sale by a Holder, the Company shall (i) make an Issuer
     Filing with the NASDR, Inc. Corporate Financing Department pursuant to
     proposed NASDR Rule 2710(b)(10)(A)(i), (ii) respond within five Trading
     Days to any comments received from NASDR in connection therewith, and (iii)
     pay the filing fee required in connection therewith.

          (h) Prior to any resale of Registrable Securities by a Holder, use its
     commercially reasonable efforts to register or qualify or cooperate with
     the selling Holders in connection with the registration or qualification
     (or exemption from the Registration or qualification) of such Registrable
     Securities for the resale by the Holder under the securities or Blue Sky
     laws of such jurisdictions within the United States as any Holder
     reasonably requests in writing, to keep each registration or qualification
     (or exemption therefrom) effective during the Effectiveness Period and to
     do any and all other acts or things reasonably necessary to enable the
     disposition in such jurisdictions of the Registrable Securities covered by
     each Registration Statement; provided, that the Company shall not be
     required to qualify generally to do business in any jurisdiction where it
     is not then so qualified, subject the Company to any material tax in any
     such jurisdiction where it is not then so subject or file a general consent
     to service of process in any such jurisdiction.

          (i) If requested by the Holders, cooperate with the Holders to
     facilitate the timely preparation and delivery of certificates representing
     Registrable Securities to be delivered to a transferee pursuant to a
     Registration Statement, which certificates shall be free, to the extent
     permitted by the Securities Act, of all restrictive legends, and to enable
     such Registrable Securities to be in such denominations and registered in
     such names as any such Holders may request.

          (j) Upon the occurrence of any event contemplated by this Section 3,
     as promptly as reasonably possible under the circumstances taking into
     account the Company's good faith assessment of any adverse consequences to
     the Company and its stockholders of the premature disclosure of such event,
     prepare a supplement or

                                      -6-

<PAGE>

     amendment, including a post-effective amendment, to a Registration
     Statement or a supplement to the related Prospectus or any document
     incorporated or deemed to be incorporated therein by reference, and file
     any other required document so that, as thereafter delivered, neither a
     Registration Statement nor such Prospectus will contain an untrue statement
     of a material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading. If the Company
     notifies the Holders in accordance with clauses (ii) through (iv) of
     Section 3(c) above to suspend the use of any Prospectus until the requisite
     changes to such Prospectus have been made, then the Holders shall suspend
     use of such Prospectus. The Company will use its best efforts to ensure
     that the use of the Prospectus may be resumed as promptly as is
     practicable. The Company shall be entitled to exercise its right under this
     Section 3(j) to suspend the availability of a Registration Statement and
     Prospectus, provided that each period (each, a Grace Period") shall not
     exceed thirty (30) consecutive days and during any three hundred sixty five
     (365) such Grace Periods shall not exceed an aggregate of sixty (60) days
     and the first day of any Grace Period must be at least five (5) trading
     days after the last day of any prior Grace Period (each, an "Allowable
     Grace Period").

          (k) Comply with all applicable rules and regulations of the
     Commission.

          (l) The Company may require each selling Holder to furnish to the
     Company a certified statement as to (i) the number of shares of Common
     Stock beneficially owned by such Holder, (ii) the natural persons thereof
     that have voting and dispositive control over the shares of Common Stock,
     and (iii) any affiliation between the Holder and either the Company's
     independent accountants or any member of the NASD.

          (m) The Company shall use its best efforts either to cause all of the
     Registrable Securities covered by a Registration Statement to be listed on
     the primary securities exchange or stock market on which securities of the
     same class or series issued by the Company are then listed, if any, if the
     listing of such Registrable Securities is then permitted under the rules of
     such exchange or stock market.

          (n) If requested by a Holder, the Company shall as soon as practicable
     (i) incorporate in a prospectus supplement or post-effective amendment such
     information as a Holder reasonably requests to be included therein relating
     to the sale and distribution of Registrable Securities, including, without
     limitation, information with respect to the number of Registrable
     Securities being offered or sold, the purchase price being paid therefor
     and any other terms of the offering of the Registrable Securities to be
     sold in such offering; (ii) make all required filings of such prospectus
     supplement or post-effective amendment after being notified of the matters
     to be incorporated in such prospectus supplement or post-effective
     amendment; and (iii) supplement or make amendments to any Registration
     Statement if reasonably requested by a Holder holding any Registrable
     Securities.

     4. Registration Expenses. All fees and expenses incident to the performance
of or compliance with this Agreement by the Company shall be borne by the
Company whether or not any Registrable Securities are sold pursuant to a
Registration Statement. The fees and expenses

                                      -7-

<PAGE>

referred to in the foregoing sentence shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with any Trading Market on which
the Common Stock is then listed for trading, (B) in compliance with applicable
state securities or Blue Sky laws reasonably agreed to by the Company in writing
(including, without limitation, fees and disbursements of counsel for the
Company in connection with Blue Sky qualifications or exemptions of the
Registrable Securities) and (C) if not previously paid by the Company in
connection with an Issuer Filing, with respect to any filing that may be
required to be made by any broker through which a Holder intends to make sales
of Registrable Securities with NASD Regulation, Inc. pursuant to the NASD Rule
2710, so long as the broker is receiving no more than a customary brokerage
commission in connection with such sale, (ii) printing expenses incurred by the
Company (including, without limitation, expenses of printing certificates for
Registrable Securities, (iii) messenger, telephone and delivery expenses
incurred by the Company, (iv) fees and disbursements of counsel for the Company,
(v) Securities Act liability insurance incurred by the Company, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation of
the transactions contemplated by this Agreement (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder. In no event shall the Company be
responsible for any broker or similar commissions of any Holder or, except to
the extent provided for in the Transaction Documents, any legal fees or other
costs of the Holders.

     5. Indemnification

          (a) Indemnification by the Company. The Company shall, notwithstanding
     any termination of this Agreement, indemnify and hold harmless each Holder,
     the officers, directors, members, partners, employees of each of them, each
     Person who controls any such Holder (within the meaning of Section 15 of
     the Securities Act or Section 20 of the Exchange Act) and the officers,
     directors, members, shareholders, partners, and employees of each such
     controlling Person, to the fullest extent permitted by applicable law, from
     and against any and all losses, claims, damages, liabilities, costs
     (including, without limitation, reasonable attorneys' fees) and expenses
     (collectively, "Losses"), as incurred, arising out of or relating to
     (1) any untrue statement of a material fact contained in a Registration
     Statement, any Prospectus or any form of prospectus or in any amendment or
     supplement thereto or in any preliminary prospectus, or arising out of or
     relating to any omission of a material fact required to be stated therein
     or necessary to make the statements therein (in the case of any Prospectus
     or form of prospectus or supplement thereto, in light of the circumstances
     under which they were made) not misleading, (2) any violation by the
     Company of the Securities Act, Exchange Act or any state securities law, or
     any rule or regulation thereunder, in connection with the performance of
     its obligations under this Agreement, except to the extent, but only to the
     extent, that (i) such untrue statements or omissions are based solely upon
     information regarding such Holder furnished in writing to the Company by
     such Holder expressly for use therein, or to the extent that such
     information relates to such Holder or such Holder's

                                      -8-

<PAGE>

     proposed method of distribution of Registrable Securities and was reviewed
     and expressly approved in writing by such Holder expressly for use in a
     Registration Statement, such Prospectus or such form of Prospectus or in
     any amendment or supplement thereto (it being understood that the Holder
     has approved Annex A hereto for this purpose), (ii) in the case of an
     occurrence of an event of the type specified in Section 3(c)(ii)-(iv), the
     use by such Holder of an outdated or defective Prospectus after the Company
     has notified such Holder in writing that the Prospectus is outdated or
     defective and prior to the receipt by such Holder of the Advice
     contemplated in Section 6(d), or (iii) any such untrue statement, omission
     or violation is directly related to and primarily the result of a material
     breach of this Agreement or violation of law by Holder; or (3) any
     violation of this Agreement.

          (b) Indemnification by Holders. Each Holder shall, severally and not
     jointly, indemnify and hold harmless the Company, its directors, officers,
     agents, attorneys and employees, each Person who controls the Company
     (within the meaning of Section 15 of the Securities Act and Section 20 of
     the Exchange Act), and the directors, officers, agents, attorneys or
     employees of such controlling Persons, to the fullest extent permitted by
     applicable law, from and against all Losses, as incurred, to the extent
     arising out of or based solely upon: (x) such Holder's failure to comply
     with the prospectus delivery requirements of the Securities Act, (y) a
     material breach of this Agreement or violation of law by Holder, or (z) any
     untrue or alleged untrue statement of a material fact contained in any
     Registration Statement, any Prospectus, or any form of prospectus, or in
     any amendment or supplement thereto or in any preliminary prospectus, or
     arising out of or relating to any omission or alleged omission of a
     material fact required to be stated therein or necessary to make the
     statements therein not misleading (i) to the extent, but only to the
     extent, that such untrue statement or omission is contained in any
     information so furnished in writing by such Holder to the Company
     specifically for inclusion in such Registration Statement or such
     Prospectus or (ii) to the extent that such information relates to such
     Holder's proposed method of distribution of Registrable Securities and was
     reviewed and expressly approved in writing by such Holder expressly for use
     in a Registration Statement (it being understood that the Holder has
     approved Annex A hereto for this purpose), such Prospectus or such form of
     Prospectus or in any amendment or supplement thereto or (iii) in the case
     of an occurrence of an event of the type specified in Section
     3(c)(ii)-(iv), the use by such Holder of an outdated or defective
     Prospectus after the Company has notified such Holder in writing that the
     Prospectus is outdated or defective and prior to the receipt by such Holder
     of the Advice contemplated in Section 6(d). In no event shall the liability
     of any selling Holder hereunder be greater in amount than the dollar amount
     of the net proceeds received by such Holder upon the sale of the
     Registrable Securities giving rise to such indemnification obligation.

          (c) Conduct of Indemnification Proceedings. If any Proceeding shall be
     brought or asserted against any Person entitled to indemnity hereunder (an
     "Indemnified Party"), such Indemnified Party shall promptly notify the
     Person from whom indemnity is sought (the "Indemnifying Party") in writing,
     and the Indemnifying Party shall have the right to assume the defense
     thereof, including the employment of counsel reasonably satisfactory to the
     Indemnified Party and the payment of all fees and expenses incurred in
     connection with defense thereof; provided, that the failure of any
     Indemnified Party to

                                      -9-

<PAGE>

     give such notice shall not relieve the Indemnifying Party of its
     obligations or liabilities pursuant to this Agreement, except (and only) to
     the extent that such failure shall have prejudiced the Indemnifying Party.

          An Indemnified Party shall have the right to employ separate counsel
     in any such Proceeding and to participate in the defense thereof, but the
     fees and expenses of such counsel shall be at the expense of such
     Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed
     in writing to pay such fees and expenses; (2) the Indemnifying Party shall
     have failed promptly to assume the defense of such Proceeding and to employ
     counsel reasonably satisfactory to such Indemnified Party in any such
     Proceeding; or (3) the named parties to any such Proceeding (including any
     impleaded parties) include both such Indemnified Party and the Indemnifying
     Party, and a material conflict of interest is likely to exist if the same
     counsel were to represent such Indemnified Party and the Indemnifying
     Party, in which case, if such Indemnified Party notifies the Indemnifying
     Party in writing that it elects to employ separate counsel at the expense
     of the Indemnifying Party, the Indemnifying Party shall not have the right
     to assume the defense thereof and the reasonable fees and expenses of no
     more than one separate counsel shall be at the expense of the Indemnifying
     Party. The Indemnifying Party shall not be liable for any settlement of any
     such Proceeding effected without its written consent, which consent shall
     not be unreasonably withheld or delayed.

          Subject to the terms of this Agreement, all reasonable fees and
     expenses of the Indemnified Party owing under this Section 5 (including
     reasonable fees and expenses to the extent incurred in connection with
     investigating or preparing to defend such Proceeding in a manner not
     inconsistent with this Section) shall be paid to the Indemnified Party.

          (d) Contribution. If the indemnification under Section 5(a) or 5(b) is
     unavailable to an Indemnified Party or insufficient to hold an Indemnified
     Party harmless for any Losses, then each Indemnifying Party shall
     contribute to the amount paid or payable by such Indemnified Party, in such
     proportion as is appropriate to reflect the relative fault of the
     Indemnifying Party and Indemnified Party in connection with the actions,
     statements or omissions that resulted in such Losses as well as any other
     relevant equitable considerations. The relative fault of such Indemnifying
     Party and Indemnified Party shall be determined by reference to, among
     other things, whether any action in question, including any untrue
     statement of a material fact or omission of a material fact, has been taken
     or made by, or relates to information supplied by, such Indemnifying Party
     or Indemnified Party, and the parties' relative intent, knowledge, access
     to information and opportunity to correct or prevent such action, statement
     or omission. The amount paid or payable by a party as a result of any
     Losses shall be deemed to include, subject to the limitations set forth in
     this Agreement, any reasonable attorneys' or other fees or expenses
     incurred by such party in connection with any Proceeding to the extent such
     party would have been indemnified for such fees or expenses if the
     indemnification provided for in this Section was available to such party in
     accordance with its terms.

                                      -10-

<PAGE>

          The parties hereto agree that it would not be just and equitable if
     contribution pursuant to this Section 5(d) were determined by pro rata
     allocation or by any other method of allocation that does not take into
     account the equitable considerations referred to in the immediately
     preceding paragraph. Notwithstanding the provisions of this Section 5(d),
     no Holder shall be required to contribute, in the aggregate, any amount in
     excess of the amount by which the proceeds actually received by such Holder
     from the sale of the Registrable Securities subject to the Proceeding
     exceeds the amount of any damages that such Holder has otherwise been
     required to pay by reason of such untrue or alleged untrue statement or
     omission or alleged omission, except in the case of fraud by such Holder.

          The indemnity and contribution agreements contained in this Section
     are in addition to any liability that the Indemnifying Parties may have to
     the Indemnified Parties.

     6. Reports Under the 1934 Act.

     With a view to making available to the Holders the benefits of Rule 144
promulgated under the Securities Act or any other similar rule or regulation of
the Commission that may at any time permit the Holders to sell securities of the
Company to the public without registration ("Rule 144"), the Company agrees to:

          (a) make and keep public information available, as those terms are
     understood and defined in Rule 144;

          (b) file with the Commission in a timely manner all reports and other
     documents required of the Company under the Securities Act and the
     Securities Exchange Act of 1934, as amended (the "1934 Act") so long as the
     Company remains subject to such requirements and the filing of such reports
     and other documents is required for the applicable provisions of Rule 144;
     and

          (c) furnish to each Holder so long as such Holder owns Registrable
     Securities, promptly upon request, (i) a written statement by the Company,
     if true, that it has complied with the reporting requirements of Rule 144,
     the Securities Act and the 1934 Act, (ii) a copy of the most recent annual
     or quarterly report of the Company and such other reports and documents so
     filed by the Company, and (iii) such other information as may be reasonably
     requested to permit the Holders to sell such securities pursuant to Rule
     144 without registration.

     7. Miscellaneous

          (a) Remedies. In the event of a breach by the Company or by a Holder,
     of any of their respective obligations under this Agreement, each Holder or
     the Company, as the case may be, in addition to being entitled to exercise
     all rights granted by law and under this Agreement, including recovery of
     damages, will be entitled to specific performance of its rights under this
     Agreement. The Company and each Holder agree that monetary damages would
     not provide adequate compensation for any losses incurred by reason of a
     breach by it of any of the provisions of this Agreement and hereby further
     agrees that, in the event of any action for specific performance in respect
     of such breach, it shall not assert or shall waive the defense that a
     remedy at law would be adequate.

                                      -11-

<PAGE>

          (b) No Piggyback on Registrations. Except as set forth on Schedule
     6(b) attached hereto, neither the Company nor any of its security holders
     (other than the Holders in such capacity pursuant hereto) may include
     securities of the Company in the initial Registration Statement other than
     the Registrable Securities.

          (c) Compliance. Each Holder covenants and agrees that it will comply
     with the prospectus delivery requirements of the Securities Act as
     applicable or an exemption therefrom to it in connection with sales of
     Registrable Securities pursuant to a Registration Statement.

          (d) Discontinued Disposition. Each Holder agrees by its acquisition of
     Registrable Securities that, upon receipt of a notice from the Company of
     the occurrence of any event of the kind described in Section 3(c), such
     Holder will forthwith discontinue disposition of such Registrable
     Securities under a Registration Statement until it is advised in writing
     (the "Advice") by the Company that the use of the applicable Prospectus (as
     it may have been supplemented or amended) may be resumed. The Company will
     use its best efforts to ensure that the use of the Prospectus may be
     resumed as promptly as it practicable.

          (e) Piggy-Back Registrations. If at any time during the Effectiveness
     Period there is not an effective Registration Statement covering all of the
     Registrable Securities and the Company shall determine to prepare and file
     with the Commission a registration statement relating to an offering for
     its own account or the account of others under the Securities Act of any of
     its equity securities, other than on Form S-4 or Form S-8 (each as
     promulgated under the Securities Act) or their then equivalents relating to
     equity securities to be issued solely in connection with any acquisition of
     any entity or business or equity securities issuable in connection with the
     stock option or other employee benefit plans, then the Company shall send
     to each Holder a written notice of such determination and, if within
     fifteen days after the date of such notice, any such Holder shall so
     request in writing, the Company shall include in such registration
     statement all or any part of such Registrable Securities such Holder
     requests to be registered.

          (f) Amendments and Waivers. The provisions of this Agreement,
     including the provisions of this sentence, may not be amended, modified or
     supplemented, and waivers or consents to departures from the provisions
     hereof may not be given, unless the same shall be in writing and signed by
     the Company and the Holders of at least a majority the then outstanding
     Registrable Securities. Notwithstanding the foregoing, a waiver or consent
     to depart from the provisions hereof with respect to a matter that relates
     exclusively to the rights of Holders and that does not directly or
     indirectly affect the rights of other Holders may be given by Holders of
     all of the Registrable Securities to which such waiver or consent relates;
     provided, however, that the provisions of this sentence may not be amended,
     modified, or supplemented except in accordance with the provisions of the
     immediately preceding sentence.

                                      -12-

<PAGE>

          (g) Notices. Any and all notices or other communications or deliveries
     required or permitted to be provided hereunder shall be delivered as set
     forth in the Purchase Agreement, as the case may be.

          (h) Successors and Assigns. This Agreement shall inure to the benefit
     of and be binding upon the successors and permitted assigns of each of the
     parties and shall inure to the benefit of each Holder. The Company may not
     assign its rights (except by merger) or obligations hereunder without the
     prior written consent of at least a majority of the Holders of the
     then-outstanding Registrable Securities. The rights under this Agreement
     shall be automatically assignable by any Holder to any transferee of 50% or
     more of such Holder's Registrable Securities if: (i) such Holder agrees in
     writing with the transferee or assignee to assign such rights and a copy of
     such agreement is furnished to the Company promptly after such assignment;
     (ii) the Company is, promptly after such transfer or assignment, furnished
     with written notice of (a) the name and address of such transferee or
     assignee and (b) the securities with respect to which such registration
     rights are being transferred or assigned; (iii) immediately following such
     transfer or assignment the further disposition of such securities by the
     transferee or assignee is restricted under the Securities Act and
     applicable state securities laws; (iv) at or before the time the Company
     receives the written notice contemplated by clause (ii) of this sentence
     the transferee or assignee agrees in writing with the Company to be bound
     by all of the provisions contained herein; and (v) such transfer shall have
     been made in accordance with the applicable requirements of the Purchase
     Agreement.

          (i) No Inconsistent Agreements. Neither the Company nor any of its
     Subsidiaries has entered, as of the date hereof, nor shall the Company or
     any of its Subsidiaries, on or after the date of this Agreement, enter into
     any agreement with respect to its securities, that would have the effect of
     impairing the rights granted to the Holders in this Agreement or otherwise
     conflicts with the provisions hereof.

          (j) Execution and Counterparts. This Agreement may be executed in two
     or more counterparts, all of which when taken together shall be considered
     one and the same agreement and shall become effective when counterparts
     have been signed by each party and delivered to the other party, it being
     understood that both parties need not sign the same counterpart. In the
     event that any signature is delivered by facsimile transmission or by
     e-mail delivery of a ".pdf" format data file, such signature shall create a
     valid and binding obligation of the party executing (or on whose behalf
     such signature is executed) with the same force and effect as if such
     facsimile or ".pdf" signature page were an original thereof.

          (k) Governing Law. All questions concerning the construction,
     validity, enforcement and interpretation of this Agreement shall be
     governed by and construed and enforced in accordance with the internal laws
     of the State of New York, without regard to the principles of conflicts of
     law thereof. Each party agrees that all legal proceedings concerning the
     interpretations, enforcement and defense of the transactions contemplated
     by this Agreement (whether brought against a party hereto or its respective
     affiliates, directors, officers, shareholders, employees or agents) shall
     be commenced exclusively in the state and federal courts sitting in the
     State of New York. The parties hereby waive all

                                      -13-

<PAGE>

     rights to a trial by jury. If either party shall commence an action or
     proceeding to enforce any provisions of this Agreement, then the prevailing
     party in such action or proceeding shall be reimbursed by the other party
     for its reasonable attorneys' fees and other costs and expenses incurred
     with the investigation, preparation and prosecution of such action or
     proceeding..

          (l) Cumulative Remedies. The remedies provided herein are cumulative
     and not exclusive of any other remedies provided by law.

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

          (n) Headings. The headings in this Agreement are for convenience only,
     do not constitute a part of this Agreement, and shall not be deemed to
     limit or affect any of the provisions hereof.

          (o) Independent Nature of Holders' Obligations and Rights. The
     obligations of each Holder hereunder are several and not joint with the
     obligations of any other Holder hereunder, and no Holder shall be
     responsible in any way for the performance of the obligations of any other
     Holder hereunder. Nothing contained herein or in any other agreement or
     document delivered at any closing, and no action taken by any Holder
     pursuant hereto or thereto, shall be deemed to constitute the Holders as a
     partnership, an association, a joint venture or any other kind of entity,
     or create a presumption that the Holders are in any way acting in concert
     with respect to such obligations or the transactions contemplated by this
     Agreement. Each Holder shall be entitled to protect and enforce its rights,
     including without limitation the rights arising out of this Agreement, and
     it shall not be necessary for any other Holder to be joined as an
     additional party in any proceeding for such purpose.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                             SIGNATURE PAGES FOLLOW]

                                      -14-

<PAGE>

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

                                        VENDINGDATA CORPORATION

                                        By: /s/ Mark Newburg
                                            ------------------------------------
                                            Mark Newburg,
                                            President and Chief Executive
                                            Officer

<PAGE>

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

                                        GLG NORTH AMERICAN OPPORTUNITY FUND

                                        By: /s/ Tim Kuschill
                                            ------------------------------------
                                        Name: Tim Kuschill
                                        Title: Legal Counsel, GLG Partners LP

<PAGE>

                                     ANNEX A

                              Plan of Distribution

     The selling stockholders may, from time to time, sell any or all of their
shares of common stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These sales may be at
fixed prices, at prevailing market prices at the time of the sale, at varying
prices determined at the time of sale, or at negotiated prices. The selling
stockholders may use any one or more of the following methods when selling
shares:

     -    ordinary brokerage transactions and transactions in which the
          broker-dealer solicits purchasers;

     -    block trades in which the broker-dealer will attempt to sell the
          shares as agent but may position and resell a portion of the block as
          principal to facilitate the transaction;

     -    purchases by a broker-dealer as principal and resale by the
          broker-dealer for its account;

     -    an exchange distribution in accordance with the rules of the
          applicable exchange;

     -    privately negotiated transactions;

     -    short sales;

     -    broker-dealers may agree with the selling stockholders to sell a
          specified number of such shares at a stipulated price per share;

     -    a combination of any such methods of sale; and

     -    any other method permitted pursuant to applicable law.

     The selling stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

     The selling stockholders may also engage in puts and calls and other
transactions in our securities or derivatives of our securities and may sell or
deliver shares in connection with these trades.

     Broker-dealers engaged by the selling stockholders may arrange for other
brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the selling stockholders (or, if any broker-dealer acts as
agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated. The selling stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved. Any
profits on the resale of shares of common stock by a broker-dealer acting as
principal might be deemed to be underwriting discounts or commissions under the
Securities Act. Discounts, concessions, commissions and similar selling
expenses, if any, attributable to the sale of shares will be borne by a selling
stockholder. The selling stockholders may agree to indemnify any agent, dealer
or broker-dealer that participates in transactions involving sales of the shares
if liabilities are imposed on that person under the Securities Act. In
connection with sales of the shares of common stock or otherwise, the selling
stockholders may enter into hedging transactions with broker-dealers, which may
in turn engage in short sales of the shares of

                                      -17-

<PAGE>

common stock in the course of hedging in positions they assume. The selling
stockholders may also sell shares of common stock short and deliver shares of
common stock covered by this prospectus to close out short positions and to
return borrowed shares in connection with such short sales. The selling
stockholders may also loan or pledge shares of common stock to broker-dealers
that in turn may sell such shares.

     The selling stockholders may from time to time pledge or grant a security
interest in some or all of the shares of common stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured
parties may offer and sell the shares of common stock from time to time under
this prospectus after we have filed a supplement to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933 amending
the list of selling stockholders to include the pledgee, transferee or other
successors in interest as selling stockholders under this prospectus.

     The selling stockholders also may transfer the shares of common stock in
other circumstances, in which case the transferees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this
prospectus and may sell the shares of common stock from time to time under this
prospectus after we have filed a supplement to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933 amending
the list of selling stockholders to include the pledgee, transferee or other
successors in interest as selling stockholders under this prospectus.

     The selling stockholders and any broker-dealers or agents that are involved
in selling the shares of common stock may be deemed to be "underwriters" within
the meaning of the Securities Act in connection with such sales. In such event,
any commissions received by such broker-dealers or agents and any profit on the
resale of the shares of common stock purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act.

     We are required to pay all fees and expenses incident to the registration
of the shares of common stock. We have agreed to indemnify the selling
stockholders against certain claims, damages and liabilities, including
liabilities under the Securities Act.

     The selling stockholders have advised us that they have not entered into
any agreements, understandings or arrangements with any underwriters or
broker-dealers regarding the sale of their shares of common stock, nor is there
an underwriter or coordinating broker acting in connection with a proposed sale
of shares of common stock by any selling stockholder. If we are notified by any
selling stockholder that any material arrangement has been entered into with a
broker-dealer for the sale of shares of common stock, if required, we will file
a supplement to this prospectus. If the selling stockholders use this prospectus
for any sale of the shares of common stock, they will be subject to the
prospectus delivery requirements of the Securities Act.

     Under the securities laws of some states, the shares of common stock may be
sold in such states only through registered or licensed brokers or dealers. In
addition, in some states the shares of common stock may not be sold unless such
shares have been registered or qualified for sale in such state or an exemption
from registration or qualification is available and is complied with.

                                      -18-

<PAGE>

     There can be no assurance that any selling stockholder will sell any or all
of the shares of common stock registered pursuant to the shelf registration
statement, of which this prospectus forms a part.

     The selling stockholders and any other person participating in such
distribution will be subject to applicable provisions of the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder, including,
without limitation, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of common stock by the selling
stockholders and any other participating person. Regulation M may also restrict
the ability of any person engaged in the distribution of the shares of common
stock to engage in market-making activities with respect to the shares of common
stock. All of the foregoing may affect the marketability of the shares of common
stock and the ability of any person or entity to engage in market-making
activities with respect to the shares of common stock.

     Once sold under the shelf registration statement, of which this prospectus
forms a part, the shares of common stock will be freely tradable in the hands of
persons other than our affiliates.

                                      -19-

<PAGE>

                                     ANNEX B

                             VENDINGDATA CORPORATION

                 SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

     The undersigned beneficial owner of common stock, par value $0.001 per
share (the "Common Stock"), of VendingData Corporation, a Nevada corporation
(the "Company"), (the "Registrable Securities") understands that the Company has
filed or intends to file with the Securities and Exchange Commission (the
"Commission") a registration statement on Form S-3 (the "Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities Act"), of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement, dated as of
_______, 2007 (the "Registration Rights Agreement"), among the Company and the
Holders named therein. A copy of the Registration Rights Agreement is available
from the Company upon request at the address set forth below. All capitalized
terms not otherwise defined herein shall have the meanings ascribed thereto in
the Registration Rights Agreement.

     Certain legal consequences arise from being named as a selling
securityholder in the Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Registration
Statement and the related prospectus.

                                     NOTICE

     The undersigned beneficial owner (the "Selling Securityholder") of
Registrable Securities hereby elects to include the Registrable Securities owned
by it and listed below in Item 3 (unless otherwise specified under such Item 3)
in the Registration Statement.

                                      -20-

<PAGE>

The undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:

                                  QUESTIONNAIRE

1.   NAME.

     (a)  Full Legal Name of Selling Securityholder

          ______________________________________________________________________

     (b)  Full Legal Name of Registered Holder (if not the same as (a) above)
          through which Registrable Securities Listed in Item 3 below are held:

          ______________________________________________________________________

     (c)  Full Legal Name of Natural Control Person (which means a natural
          person who directly or indirectly alone or with others has power to
          vote or dispose of the securities covered by the questionnaire):

          ______________________________________________________________________

2.   ADDRESS FOR NOTICES TO SELLING SECURITYHOLDER:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Telephone: _____________________________________________________________________

Fax: ___________________________________________________________________________

Contact Person: ________________________________________________________________

3.   BENEFICIAL OWNERSHIP OF REGISTRABLE SECURITIES:

     (a)  Type and Number of Registrable Securities beneficially owned:

          ______________________________________________________________________

          ______________________________________________________________________

          ______________________________________________________________________

                                      -21-

<PAGE>

4.   BROKER-DEALER STATUS:

     (a)  Are you a broker-dealer?

                                  Yes[ ]   No [ ]

     (b)  If "yes" to Section 4(a), did you receive your Registrable Securities
          as compensation for investment banking services to the Company.

                                  Yes[ ]   No [ ]

     Note: If no, the Commission's staff has indicated that you should be
          identified as an underwriter in the Registration Statement.

     (c)  Are you an affiliate of a broker-dealer?

                                  Yes[ ]   No [ ]

     (d)  If you are an affiliate of a broker-dealer, do you certify that you
          bought the Registrable Securities in the ordinary course of business,
          and at the time of the purchase of the Registrable Securities to be
          resold, you had no agreements or understandings, directly or
          indirectly, with any person to distribute the Registrable Securities?

                                  Yes[ ]   No [ ]

     Note: If no, the Commission's staff has indicated that you should be
          identified as an underwriter in the Registration Statement.

5.   BENEFICIAL OWNERSHIP OF OTHER SECURITIES OF THE COMPANY OWNED BY THE
     SELLING SECURITYHOLDER.

     Except as set forth below in this Item 5, the undersigned is not the
     beneficial or registered owner of any securities of the Company other than
     the Registrable Securities listed above in Item 3.

     (a)  Type and Amount of Other Securities beneficially owned by the Selling
          Securityholder:

          ______________________________________________________________________

          ______________________________________________________________________

                                      -22-

<PAGE>

6.   RELATIONSHIPS WITH THE COMPANY:

     Except as set forth below, neither the undersigned nor any of its
     affiliates, officers, directors or principal equity holders (owners of 5%
     of more of the equity securities of the undersigned) has held any position
     or office or has had any other material relationship with the Company (or
     its predecessors or affiliates) during the past three years.

     State any exceptions here:

     ___________________________________________________________________________

     ___________________________________________________________________________

7.   RELATIONSHIPS WITH THE COMPANY'S INDEPENDENT ACCOUNTANT:

     Except as set forth below, neither the undersigned nor any of its
     affiliates, officers, directors or principal equity holders (owners of 5%
     of more of the equity securities of the undersigned) has held any position
     or office or has had any other material relationship with the Company's
     independent accountants, Piercy Bowler Taylor & Kern, of Las Vegas , Nevada
     (or its predecessors or affiliates) during the past three years.

     State any exceptions here:

     ___________________________________________________________________________

     ___________________________________________________________________________

     The undersigned agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective.

     By signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items 1 through 7 and the
inclusion of such information in the Registration Statement and the related
prospectus and any amendments or supplements thereto. The undersigned
understands that such information will be relied upon by the Company in
connection with the preparation or amendment of the Registration Statement and
the related prospectus.

                                      -23-

<PAGE>

     IN WITNESS WHEREOF the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

Dated:                                  Beneficial Owner:
       ------------------------------                     ----------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND
RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

Daniel Donahue, Esq.
Greenberg Traurig, LLP
650 Town Center Drive, Suite 1700
Costa Mesa, CA 92626

Fax: 714-708-6501

                                      -24-

<PAGE>

                                  SCHEDULE 6(B)

                             PIGGYBACK REGISTRATIONS

     The Company intends to include on the initial Registration Statement:

                                      -25-

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