Document:

SUBSIDIARY
      GUARANTEE 

     

    THIS
      SUBSIDIARY GUARANTEE, dated as of [__________ __, 2007 (this “Guarantee”), is
      made by each of the signatories hereto (together with any other entity that
      may
      become a party hereto as provided herein, (the “Guarantors”), in favor of the
      purchasers (the "Purchasers") of the 8% Secured Convertible Debentures of
      TechnoConcepts, Inc., a Colorado corporation (the “Company”). 

     

    WITNESSETH:

     

    WHEREAS,
      pursuant to that subscription agreement, by and between the Company and each
      of
      the Purchasers (the “Subscription Agreement”), the Company has agreed to sell
      and issue to the Purchasers, and the Purchasers have agreed to purchase from
      the
      Company the Company’s 8% Secured Convertible Debentures, due [__________ ___,
      200__ (the “Debentures”), subject to the terms and conditions set forth therein;
      and 

     

    WHEREAS,
      each Guarantor will directly benefit from the extension of credit to the Company
      represented by the issuance of the Debentures; and 

     

    WHEREAS,
      the Purchasers have required that the Guarantors execute this Guarantee as
      a
      condition precedent to their purchase of the Debentures; and 

     

    NOW,
      THEREFORE, in consideration of the premises and to induce the Purchasers to
      enter into the Subscription Agreement and to carry out the transactions
      contemplated thereby, and for good and valuable consideration the sufficiency
      of
      which is hereby acknowledged each Guarantor hereby agrees with the Purchasers
      as
      follows: 

     

    1.
      Definitions. Unless otherwise defined herein, terms defined in the
      Subscription Agreement and used herein shall have the meanings given to them
      in
      the Subscription Agreement. The words “hereof,” “herein,” “hereto” and
“hereunder” and words of similar import when used in this Guarantee shall refer
      to this Guarantee as a whole and not to any particular provision of this
      Guarantee, and Section and Schedule references are to this Guarantee unless
      otherwise specified. The meanings given to terms defined herein shall be equally
      applicable to both the singular and plural forms of such terms. The following
      terms shall have the following meanings: 

     

    “Guarantee”
means
      this Subsidiary Guarantee, as the same may be amended, supplemented or otherwise
      modified from time to time. 

     

    “Obligations”
      means the collective reference to all obligations and undertakings of the
      Company of whatever nature, monetary or otherwise, under the Debentures, the
      Subscription Agreement, the Security Agreement, the Warrants, or any other
      future agreement or obligations undertaken by the Company to the Purchasers
      in
      connection therewith, together with all reasonable attorneys’ fees,
      disbursements and all other costs and expenses of collection incurred by
      Purchasers in enforcing any of such Obligations and/or this Guarantee.

     

    
      	 	
              2.

            	
              Guarantee.
                

            

    

     

    
      	 	
              (a)

            	
              Guarantee.
                

            

    

     

    
      	
            	(i)	
              The
                Guarantors hereby, jointly and severally, unconditionally and irrevocably,
                guarantee to the Purchasers and their respective successors, indorsees,
                transferees and assigns, the prompt and complete payment and performance
                by the Company when due (whether at the stated maturity, by acceleration
                or otherwise) of the Obligations. 

            

    

     

    
      	
            	(ii)	
              Anything
                herein or in any other Transaction Document to the contrary
                notwithstanding, the maximum liability of each Guarantor hereunder
                and
                under the
                other Transaction Documents shall in no event exceed the amount which
                can
                be guaranteed by such Guarantor under applicable federal and state
                laws,
                including laws relating to the insolvency of debtors, fraudulent
                conveyance or transfer or laws affecting the rights of creditors
                generally
                (after giving effect to the right of contribution established in
                Section
                2(b)). 

            

    

     

    
      
        
        

      

      
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              (iii)

            	
              Each
                Guarantor agrees that the Obligations may at any time and from time
                to
                time exceed the amount of the liability of such Guarantor hereunder
                without impairing the guarantee contained in this Section 2 or affecting
                the rights and remedies of the Purchasers hereunder.
                

            

    

     

    
      	
            	(iv)	
              The
                guarantee contained in this Section 2 shall remain in full force
                and
                effect until all the Obligations and the obligations of each Guarantor
                under the guarantee contained in this Section 2 shall have been satisfied
                by payment in full. 

            

    

     

    
      	
            	(v)	
              No
                payment made by the Company, any of the Guarantors, any other guarantor
                or
                any other Person or received or collected by the Purchasers from
                the
                Company, any of the Guarantors, any other guarantor or any other
                Person by
                virtue of any action or proceeding or any set-off or appropriation
                or
                application at any time or from time to time in reduction of or in
                payment
                of the Obligations shall be deemed to modify, reduce, release or
                otherwise
                affect the liability of any Guarantor hereunder which shall,
                notwithstanding any such payment (other than any payment made by
                such
                Guarantor in respect of the Obligations or any payment received or
                collected from such Guarantor in respect of the Obligations), remain
                liable for the Obligations up to the maximum liability of such Guarantor
                hereunder until the Obligations are paid in full.
                

            

    

     

    
      	
            	(vi)	
              Notwithstanding
                anything to the contrary in this Agreement, with respect to any defaulted
                non-monetary Obligations the specific performance of which by the
                Guarantors is not reasonably possible (e.g. the issuance of the Company's
                Common Stock), the Guarantors shall only be liable for making the
                Purchasers whole on a monetary basis for the Company's failure to
                perform
                such Obligations in accordance with the Transaction Documents.
                

            

    

    

      (b)
      Right of Contribution. Each Guarantor hereby agrees that to the extent
      that a Guarantor shall have paid more than its proportionate share of any
      payment made hereunder, such Guarantor shall be entitled to seek and receive
      contribution from and against any other Guarantor hereunder which has not paid
      its proportionate share of such payment. Each Guarantor's right of contribution
      shall be subject to the terms and conditions of Section 2(c). The provisions
      of
      this Section 2(b) shall in no respect limit the obligations and liabilities
      of
      any Guarantor to the Purchasers, and each Guarantor shall remain liable to
      the
      Purchasers for the full amount guaranteed by such Guarantor hereunder.

     

      (c)
      No
      Subrogation.
      Notwithstanding any payment made by any Guarantor hereunder or any set-off
      or
      application of funds of any Guarantor by the Purchasers, no Guarantor shall
      be
      entitled to be subrogated to any of the rights of the Purchasers against the
      Company or any other Guarantor or any collateral security or guarantee or right
      of offset held by the Purchasers for the payment of the Obligations, nor shall
      any Guarantor seek or be entitled to seek any contribution or reimbursement
      from
      the Company or any other Guarantor in respect of payments made by such Guarantor
      hereunder, until all amounts owing to the Purchasers by the Company on account
      of the Obligations are paid in full. If any amount shall be paid to any
      Guarantor on account of such subrogation rights at any time when all of the
      Obligations shall not have been paid in full, such amount shall be held by
      such
      Guarantor in trust for the Purchasers, segregated from other funds of such
      Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
      to the Purchasers in the exact form received by such Guarantor (duly indorsed
      by
      such Guarantor to the Purchasers, if required), to be applied against the
      Obligations, whether matured or unmatured, in such order as the Purchasers
      may
      determine. 

     

    
      
        
        

      

      
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    (d)
      Amendments, Etc. With Respect to the Obligations. Each Guarantor shall
      remain obligated hereunder notwithstanding that, without any reservation of
      rights against any Guarantor and without notice to or further assent by any
      Guarantor, any demand for payment of any of the Obligations made by the
      Purchasers may be rescinded by the Purchasers and any of the Obligations
      continued, and the Obligations, or the liability of any other Person upon or
      for
      any part thereof, or any collateral security or guarantee therefor or right
      of
      offset with respect thereto, may, from time to time, in whole or in part, be
      renewed, extended, amended, modified, accelerated, compromised, waived,
      surrendered or released by the Purchasers, and the Subscription Agreement and
      the other Transaction Documents and any other documents executed and delivered
      in connection therewith may be amended, modified, supplemented or terminated,
      in
      whole or in part, as the Purchasers may deem advisable from time to time, and
      any collateral security, guarantee or right of offset at any time held by the
      Purchasers for the payment of the Obligations may be sold, exchanged, waived,
      surrendered or released. The Purchasers shall have no obligation to protect,
      secure, perfect or insure any Lien at any time held by them as security for
      the
      Obligations or for the guarantee contained in this Section 2 or any property
      subject thereto. 

     

    (e)
      Guarantee Absolute and Unconditional. Each Guarantor waives any and all
      notice of the creation, renewal, extension or accrual of any of the Obligations
      and notice of or proof of reliance by the Purchasers upon the guarantee
      contained in this Section 2 or acceptance of the guarantee contained in this
      Section 2; the Obligations, and any of them, shall conclusively be deemed to
      have been created, contracted or incurred, or renewed, extended, amended or
      waived, in reliance upon the guarantee contained in this Section 2; and all
      dealings between the Company and any of the Guarantors, on the one hand, and
      the
      Purchasers, on the other hand, likewise shall be conclusively presumed to have
      been had or consummated in reliance upon the guarantee contained in this Section
      2. Each Guarantor waives to the extent permitted by law diligence, presentment,
      protest, demand for payment and notice of default or nonpayment to or upon
      the
      Company or any of the Guarantors with respect to the Obligations. Each Guarantor
      understands and agrees that the guarantee contained in this Section 2 shall
      be
      construed as a continuing, absolute and unconditional guarantee of payment
      without regard to (a) the validity or enforceability of the Subscription
      Agreement or any other Transaction Document, any of the Obligations or any
      other
      collateral security therefor or guarantee or right of offset with respect
      thereto at any time or from time to time held by the Purchasers, (b) any
      defense, set-off or counterclaim (other than a defense of payment or performance
      or fraud or misconduct by Purchasers) which may at any time be available to
      or
      be asserted by the Company or any other Person against the Purchasers, or (c)
      any other circumstance whatsoever (with or without notice to or knowledge of
      the
      Company or such Guarantor) which constitutes, or might be construed to
      constitute, an equitable or legal discharge of the Company for the Obligations,
      or of such Guarantor under the guarantee contained in this Section 2, in
      bankruptcy or in any other instance. When making any demand hereunder or
      otherwise pursuing its rights and remedies hereunder against any Guarantor,
      the
      Purchasers may, but shall be under no obligation to, make a similar demand
      on or
      otherwise pursue such rights and remedies as they may have against the Company,
      any other Guarantor or any other Person or against any collateral security
      or
      guarantee for the Obligations or any right of offset with respect thereto,
      and
      any failure by the Purchasers to make any such demand, to pursue such other
      rights or remedies or to collect any payments from the Company, any other
      Guarantor or any other Person or to realize upon any such collateral security
      or
      guarantee or to exercise any such right of offset, or any release of the
      Company, any other Guarantor or any other Person or any such collateral
      security, guarantee or right of offset, shall not relieve any Guarantor of
      any
      obligation or liability hereunder, and shall not impair or affect the rights
      and
      remedies, whether express, implied or available as a matter of law, of the
      Purchasers against any Guarantor. For the purposes hereof, "demand" shall
      include the commencement and continuance of any legal proceedings. 

     

    (f)
      Reinstatement. The guarantee contained in this Section 2 shall continue
      to be effective, or be reinstated, as the case may be, if at any time payment,
      or any part thereof, of any of the Obligations is rescinded or must otherwise
      be
      restored or returned by the Purchasers upon the insolvency, bankruptcy,
      dissolution, liquidation or reorganization of the Company or any Guarantor,
      or
      upon or as a result of the appointment of a receiver, intervenor or conservator
      of, or trustee or similar officer for, the Company or any Guarantor or any
      substantial part of its property, or otherwise, all as though such payments
      had
      not been made. 

     

    
      
        
        

      

      
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    (g)
      Payments. Each Guarantor hereby guarantees that payments hereunder will
      be paid to the Purchasers without set-off or counterclaim in U.S. dollars at
      the
      address set forth or referred to in the Subscription Agreement. 

    

    3.
      Representations and Warranties. Each Guarantor hereby makes the following
      representations and warranties to Purchasers as of the date hereof:

     

    (a)
      Organization and Qualification. The Guarantor is a corporation, duly
      incorporated, validly existing and in good standing under the laws of the
      applicable jurisdiction set forth on Schedule 1, with the requisite corporate
      power and authority to own and use its properties and assets and to carry on
      its
      business as currently conducted. The Guarantor has no subsidiaries other than
      those identified as such on the Disclosure Schedules to the Subscription
      Agreement. The Guarantor is duly qualified to do business and is in good
      standing as a foreign corporation 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, individually or in the aggregate, (x) adversely
      affect the legality, validity or enforceability of any of this Guaranty in
      any
      material respect, (y) have a material adverse effect on the results of
      operations, assets, prospects, or financial condition of the Guarantor or (z)
      adversely impair in any material respect the Guarantor's ability to perform
      fully on a timely basis its obligations under this Guaranty (each, a "Material
      Adverse Effect"). 

     

    (b)
      Authorization;
      Enforcement.
      The
      Guarantor has the requisite corporate power and authority to enter into and
      to
      consummate the transactions contemplated by this Guaranty, and otherwise to
      carry out its obligations hereunder. The execution and delivery of this Guaranty
      by the Guarantor and the consummation by it of the transactions contemplated
      hereby have been duly authorized by all requisite corporate action on the part
      of the Guarantor. This Guaranty has been duly executed and delivered by the
      Guarantor and constitutes the valid and binding obligation of the Guarantor
      enforceable against the Guarantor in accordance with its terms, except as such
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally the enforcement of, creditors' rights and remedies or by
      other equitable principles of general application and insofar as indemnification
      and contribution provisions may be limited by applicable law. 

     

    (c)
No
      Conflicts. The execution, delivery and performance of this Guaranty by the
      Guarantor and the consummation by the Guarantor of the transactions contemplated
      thereby do not and will not (i) conflict with or violate any provision of its
      Certificate of Incorporation or By-laws or (ii) conflict with, constitute a
      default (or an event which with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation of, any material agreement, indenture or instrument
      to which the Guarantor is a party, or (iii) 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 Guarantor is subject (including
      Federal and state securities laws and regulations), or by which any material
      property or asset of the Guarantor is bound or affected, except in the case
      of
      each of clauses (ii) and (iii), such conflicts, defaults, terminations,
      amendments, accelerations, cancellations and violations as would not,
      individually or in the aggregate, have or result in a Material Adverse Effect.
      The business of the Guarantor is not being conducted in violation of any law,
      ordinance or regulation of any governmental authority, except for violations
      which, individually or in the aggregate, do not have a Material Adverse Effect.
      

     

    (d)
      Consents and Approvals. The Guarantor is not required to obtain any
      consent, waiver, authorization or order of, or make any filing or registration
      with, any court or other federal, state, local, foreign or other governmental
      authority or other person in connection with the execution, delivery and
      performance by the Guarantor of this Guaranty. 

     

    (e)
      Subscription Agreement. The representations and warranties of the Company
      set forth in the Subscription Agreement as they relate to such Guarantor, each
      of which is hereby incorporated herein by reference, are true and correct as
      of
      each time such representations are deemed to be made pursuant to such
      Subscription Agreement, and the Purchasers shall be entitled to rely on each
      of
      them as if they were fully
      set
      forth herein, provided, that each reference in each such representation and
      warranty to the Company's knowledge shall, for the purposes of this Section
      3,
      be deemed to be a reference to such Guarantor's knowledge.

     

    
      
        
        

      

      
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    (f)
      Foreign
      Law.
      Each
      Guarantor has consulted with appropriate foreign legal counsel with respect
      to
      any of the above representations for which non-U.S. law is applicable. Such
      foreign counsel have advised each applicable Guarantor that such counsel knows
      of no reason why any of the above representations would not be true and
      accurate. Such foreign counsel were provided with copies of this Subsidiary
      Guarantee and the Transaction Documents prior to rendering their advice.

    

    4.
      Covenants.

     

    (a)
      Each
      Guarantor covenants and agrees with the Purchasers that, from and after the
      date
      of this Guarantee until the Obligations shall have been paid in full, such
      Guarantor shall take, and/or shall refrain from taking, as the case may be,
      each
      commercially reasonable action that is necessary to be taken or not taken,
      as
      the case may be, so that no Event of Default is caused by the failure to take
      such action or to refrain from taking such action by such Guarantor.

     

    (b)
      So
      long as any of the Obligations are outstanding, each Guarantor will not directly
      or indirectly on or after the date of this Guarantee: 

    

    i.
      except
      with the prior written consent of the Agent (as defined in the Security
      Agreement), enter into, create, incur, assume or suffer to exist any
      indebtedness for borrowed money of any kind, including but not limited to,
      a
      guarantee, on or with respect to any of its property or assets now owned or
      hereafter acquired or any interest therein or any income or profits therefrom
      that is senior to, or pari passu with, in any respect, such Guarantor’s
      obligations hereunder in amount greater than $150,000; 

     

    ii.
      except with the prior written consent of the Agent, enter into, create, incur,
      assume or suffer to exist any liens of any kind, on or with respect to any
      of
      its property or assets now owned or hereafter acquired or any interest therein
      or any income or profits therefrom that is senior to, in any respect, such
      Guarantor’s obligations hereunder in amount greater than $150,000; 

     

    iii.
      amend its certificate of incorporation, bylaws or other charter documents so
      as
      to adversely affect any rights of the Holder hereunder; 

     

    iv.
      repay, repurchase or offer to repay, repurchase or otherwise acquire more than
      a
      de minimis number of shares of its Common Stock or Common Stock Equivalents;
      

     

    v.
      enter
      into any agreement with respect to any of the foregoing. 

     

    5.
      Miscellaneous.
      

     

    (a)
      Amendments
      in Writing.
      None of
      the terms or provisions of this Guarantee may be waived, amended, supplemented
      or otherwise modified except in writing by the Purchasers. 

     

    (b)
      Notices. All notices, requests and demands to or upon the Purchasers or
      any Guarantor hereunder shall be effected in the manner provided for in the
      Subscription Agreement; provided that any such notice, request or demand to
      or
      upon any Guarantor shall be addressed to such Guarantor at its notice address
      set forth on Schedule 5(b). 

     

    (c)
No
      Waiver By Course Of Conduct; Cumulative Remedies. The Purchasers shall not
      by any act (except by a written instrument pursuant to Section 5(a)), delay,
      indulgence, omission or otherwise be deemed to have waived any right or remedy
      hereunder or to have acquiesced in any default under the Transaction Documents
      or Event of Default. No failure to exercise, nor any delay in exercising, on
      the
      part of the Purchasers, any right, power or privilege hereunder shall operate
      as
      a waiver thereof. No single or partial
      exercise of any right, power or privilege hereunder shall preclude any other
      or
      further exercise thereof or the exercise of any other right, power or privilege.
      A waiver by the Purchasers of any right or remedy hereunder on any one occasion
      shall not be construed as a bar to any right or remedy which the Purchasers
      would otherwise have on any future occasion. The rights and remedies herein
      provided are cumulative, may be exercised singly or concurrently and are not
      exclusive of any other rights or remedies provided by law. 

     

    
      
        
        

      

      
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        (d)
          Enforcement
          Expenses; Indemnification. 

      

    

     

    
      	
            	(i)	
              Each
                Guarantor agrees to pay, or reimburse the Purchasers for, all its
                reasonable costs and expenses incurred in collecting against such
                Guarantor under the guarantee contained in Section 2 or otherwise
                enforcing or preserving any rights under this Guarantee and the other
                Transaction Documents to which such Guarantor is a party, including,
                without limitation, the reasonable fees and disbursements of counsel
                to
                the Purchasers. 

            

    

     

    
      	
            	(ii)	
              Each
                Guarantor agrees to pay, and to save the Purchasers harmless from,
                any and
                all liabilities with respect to, or resulting from any delay in paying,
                any and all stamp, excise, sales or other taxes which may be payable
                or
                determined to be payable in connection with any of the transactions
                contemplated by this Guarantee. 

            

    

    

    
      	 	
              (iii)

            	
              Each
                Guarantor agrees to pay, and to save the Purchasers harmless from,
                any and
                all liabilities, obligations, losses, damages, penalties, actions,
                judgments, suits, costs, expenses or disbursements of any kind or
                nature
                whatsoever with respect to the execution, delivery, enforcement,
                performance and administration of this Guarantee to the extent the
                Company
                would be required to do so pursuant to the Subscription Agreement.
                

            

    

     

    
      	 	
              (iv)

            	
              The
                agreements in this Section shall survive repayment of the Obligations
                and
                all other amounts payable under the Subscription Agreement and the
                other
                Transaction Documents. 

            

    

     

    (e)
      Successor and Assigns. This Guarantee shall be binding upon the
      successors and assigns of each Guarantor and shall inure to the benefit of
      the
      Purchasers and their respective successors and assigns; provided
      that no
      Guarantor may assign, transfer or delegate any of its rights or obligations
      under this Guarantee without the prior written consent of the Purchasers.

     

    (f)
      Set-Off. Each Guarantor hereby irrevocably authorizes the Purchasers at
      any time and from time to time while an Event of Default under any of the
      Transaction Documents shall have occurred and be continuing, without notice
      to
      such Guarantor or any other Guarantor, any such notice being expressly waived
      by
      each Guarantor, to set-off and appropriate and apply any and all deposits,
      credits, indebtedness or claims, in any currency, in each case whether direct
      or
      indirect, absolute or contingent, matured or unmatured, at any time held or
      owing by the Purchasers to or for the credit or the account of such Guarantor,
      or any part thereof in such amounts as the Purchasers may elect, against and
      on
      account of the obligations and liabilities of such Guarantor to the Purchasers
      hereunder and claims of every nature and description of the Purchasers against
      such Guarantor, in any currency, whether arising hereunder, under the
      Subscription Agreement, any other Transaction Document or otherwise, as the
      Purchasers may elect, whether or not the Purchasers have made any demand for
      payment and although such obligations, liabilities and claims may be contingent
      or unmatured. The Purchasers shall notify such Guarantor promptly of any such
      set-off and the application made by the Purchasers of the proceeds thereof,
      provided that the failure to give such notice shall not affect the validity
      of
      such set-off and application. The rights of the Purchasers under this Section
      are in addition to other rights and remedies (including, without limitation,
      other rights of set-off) which the Purchasers may have. 

     

    
      
        
        

      

      
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    (g)
      Counterparts.
      This
      Guarantee may be executed by one or more of the parties to this Guarantee on
      any
      number of separate counterparts (including by telecopy), and all of said
      counterparts taken together shall be deemed to constitute one and the same
      instrument. 

     

    (h)
      Severability. Any provision of this Guarantee which is prohibited or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction. 

     

    (i)
      Section Headings. The Section headings used in this Guarantee are for
      convenience of reference only and are not to affect the construction hereof
      or
      be taken into consideration in the interpretation hereof. 

     

    (j)
      Integration. This Guarantee and the other Transaction Documents represent
      the agreement of the Guarantors and the Purchasers with respect to the subject
      matter hereof and thereof, and there are no promises, undertakings,
      representations or warranties by the Purchasers relative to subject matter
      hereof and thereof not expressly set forth or referred to herein or in the
      other
      Transaction Documents. 

     

    (k)
      Governing
      Law.
      THIS
      GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY PRINCIPLES OF
      CONFLICTS OF LAWS. 

     

    (l)
      Submission to Jurisdictional; Waiver. Each Guarantor hereby irrevocably and
      unconditionally: 

     

    
      	
            	(i)	
              submits
                for itself and its property in any legal action or proceeding relating
                to
                this Guarantee and the other Transaction Documents to which it is
                a party,
                or for recognition and enforcement of any judgment in respect thereof,
                to
                the nonexclusive general jurisdiction of the Courts of the State
                of New
                York, located in New York County, New York, the courts of the United
                States of America for the Southern District of New York, and appellate
                courts from any thereof; 

            

    

     

    
      	
            	(ii)	
              consents
                that any such action or proceeding may be brought in such courts
                and
                waives any objection that it may now or hereafter have to the venue
                of any
                such action or proceeding in any such court or that such action or
                proceeding was brought in an inconvenient court and agrees not to
                plead or
                claim the same; 

            

    

     

    
      	
            	(iii)	
              agrees
                that service of process in any such action or proceeding may be effected
                by mailing a copy thereof by registered or certified mail (or any
                substantially similar form of mail), postage prepaid, to such Guarantor
                at
                its address referred to in the Subscription Agreement or at such
                other
                address of which the Purchasers shall have been notified pursuant
                thereto;
                

            

    

     

    
      	
            	(iv)	
              agrees
                that nothing herein shall affect the right to effect service of process
                in
                any other manner permitted by law or shall limit the right to sue
                in any
                other jurisdiction; and 

            

    

     

    
      	
            	(v)	
              waives,
                to the maximum extent not prohibited by law, any right it may have
                to
                claim or recover in any legal action or proceeding referred to in
                this
                Section any special, exemplary, punitive or consequential damages.
                

            

    

     

    (m)
      Acknowledgements.
      Each
      Guarantor hereby acknowledges that: 

     

    
      	
            	(i)	
              it
                has been advised by counsel in the negotiation, execution and delivery
                of
                this Guarantee and the other Transaction Documents to which it is
                a party;
                

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
            	(ii)	
              the
                Purchasers have no fiduciary relationship with or duty to any Guarantor
                arising out of or in connection with this Guarantee or any of the
                other
                Transaction Documents, and the relationship between the Guarantors,
                on the
                one hand, and the Purchasers, on the other hand, in connection herewith
                or
                therewith is solely that of debtor and creditor; and
                

            

    

     

    
      	
            	(iii)	
              no
                joint venture is created hereby or by the other Transaction Documents
                or
                otherwise exists by virtue of the transactions contemplated hereby
                among
                the Guarantors and the Purchasers. 

            

    

     

    (n)
      Additional
      Guarantors.
      The
      Company shall cause each of its subsidiaries formed or acquired on or subsequent
      to the date hereof to become a Guarantor for all purposes of this Guarantee
      by
      executing and delivering an Assumption Agreement in the form of Annex 1 hereto.
      

     

    (o)
      Release of Guarantors. Subject to Section 2.6, each Guarantor will be
      released from all liability hereunder concurrently with the repayment in full
      of
      all amounts owed under the Subscription Agreement, the Debentures and the other
      Transaction Documents. 

     

    (p)
      Seniority. As of the Closing Date, no Indebtedness or other claim against
      the Company or Guarantor is senior to the Debentures in right of payment,
      whether with respect to interest or upon liquidation or dissolution, or
      otherwise, other than indebtedness secured by purchase money security interests
      (which is senior only as to underlying assets covered thereby) and capital
      lease
      obligations (which is senior only as to the property covered thereby).

     

    (q)
      Waiver of Jury Trial. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS
      HEREOF, THE PURCHASERS, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL
      BY
      JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY
      COUNTERCLAIM THEREIN. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly
      executed and delivered as of the date first above written. 

     

    
      	
              ASANTE
                NETWORKS, INC.

            	 	 	 
	 	 	 	 
	By:	 	 	
            
	
              
                

              

              Name:
                

            	 	 	
            
	
              Title:
                

            	 	 	
            

    

     

    
      	
              
                TECHNOCONCEPTS,
                  INC. (NEVADA) 

              

            	 	 	 
	 	 	 	 
	By:	 	 	
            
	
              
                

              

              Name:
                

            	 	 	
            
	
              Title:
                

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

     

    GUARANTORS

     

    The
      following are the names, notice addresses and jurisdiction of organization
      of
      each Guarantor. 

    

      
        	 	 	
                JURISDICTION
                  OF INCORPORATION

              	 	
                COMPANY
                  OWNED BY PERCENTAGE

              
	
                Asante
                  Networks, Inc. 

              	 	
                Delaware
                  

              	 	
                85%
                  

              
	
                TechnoConcepts,
                  Inc. (Nevada) 

              	 	
                Nevada
                  

              	 	
                100%
                  

              

      

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Annex
      1 to 

    SUBSIDIARY
      GUARANTEE 

     

    ASSUMPTION
      AGREEMENT, dated as of ____ __, ______ made by ______________________________,
      a
      ______________ corporation (the "Additional Guarantor"), in favor of the
      Purchasers pursuant to the Subscription Agreement referred to below. All
      capitalized terms not defined herein shall have the meaning ascribed to them
      in
      such Subscription Agreement. 

     

    WITNESSETH
      :

     

    WHEREAS,
      TechnoConcepts, Inc., a Colorado corporation (the "Company"), and the
      Purchasers have each entered into a Subscription Agreement with respect to
      the
      purchase by the Purchasers of the Company’s 8% Secured Convertible Debentures
      (as amended, supplemented or otherwise modified from time to time, the
      "Subscription Agreement");
      

     

    WHEREAS,
      in connection with each Subscription Agreement, the Company and its Subsidiaries
      (other than the Additional Guarantor) have entered into the Subsidiary
      Guarantee, dated as of [______________ ____, 200__ (as amended, supplemented
      or
      otherwise modified from time to time, the "Guarantee") in favor of the
      Purchasers; 

     

    WHEREAS,
      the Subscription Agreement requires the Additional Guarantor to become a party
      to the Guarantee; and 

     

    WHEREAS,
      the Additional Guarantor has agreed to execute and deliver this Assumption
      Agreement in order to become a party to the Guarantee; 

    

    NOW,
      THEREFORE, IT IS AGREED: 

     

    1.
      Guarantee. By executing and delivering this Assumption Agreement, the
      Additional Guarantor, as provided in Section 5(n) of the Guarantee, hereby
      becomes a party to the Guarantee as a Guarantor thereunder with the same force
      and effect as if originally named therein as a Guarantor and, without limiting
      the generality of the foregoing, hereby expressly assumes all obligations and
      liabilities of a Guarantor thereunder. The information set forth in Annex 1-A
      hereto is hereby added to the information set forth in Schedule 1 to the
      Guarantee. The Additional Guarantor hereby represents and warrants that each
      of
      the representations and warranties contained in Section 3 of the Guarantee
      is
      true and correct on and as the date hereof as to such Additional Guarantor
      (after giving effect to this Assumption Agreement) as if made on and as of
      such
      date. 

     

    2.
      Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
      CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
      

    

    IN
      WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be
      duly
      executed and delivered as of the date first above written. 

     

    
      	
              [ADDITIONALGUARANTOR]

            	 	 	 
	 	 	 	 
	
              By:
                

            	 	 	
            
	
              
                

              

              Name:

            	 	 	
            
	
              Title:

            	 	 	
            

    

    

    
      
        
        

      

      
        11TECHNOCONCEPTS,
      INC.

    

    PLACEMENT
      AGENT AGREEMENT

    

    Dated:
      __________,
      2007

    

    Westminster
      Securities Corporation

    100
      Wall
      Street

    New
      York,
      NY 10005

    

    Ladies
      and Gentlemen:

    

    The
      undersigned, TechnoConcepts, Inc., a Colorado corporation (the “Company”),
      proposes to issue and sell a minimum of $2,000,000 of investment units (“Units”)
      (the “Minimum Offering”) and a maximum of $4,000,000 of Units (the “Maximum
      Offering”) (subject to an over-allotment allowance of up to an additional
      $2,000,000). The terms and conditions of the sale, issuance, and rights held
      by
      the securities underlying these Units are as set forth in the subscription
      agreements among the Company and the investors in the offering (“Investors”),
      which shall be prepared by the Company and subject to the approval of the
      Placement Agent (together with all exhibits, schedules and supplements thereto,
      the “Subscription Documents”). The Units, the 8% Secured Convertible Debentures
      forming a part of the Units (“Debentures”), the common stock underlying the
      Debentures (“Shares”), the warrants forming a part of the Units and the
      additional warrants issuable in respect of certain sales of Units (collectively,
      the “Warrants”), the common stock underlying the Warrants (“Warrant Shares”),
      and the Placement Agent Warrants (as hereinafter defined) are referred to
      collectively herein as the “Equity”.

    

    The
      offering of Units in the Company (the “Offering”) will be conducted on a “best
      efforts, all or none” basis with respect to the Minimum Offering and on a “best
      efforts” basis with respect to the remainder of the Maximum Offering in excess
      of the Minimum Offering. Fractional Units may be sold at the discretion of
      the
      Company. As used herein, including with respect to the representations and
      warranties contained herein, unless the context otherwise requires, the term
      “Company” shall include the Company together with all of its direct and indirect
      wholly owned subsidiaries, and all representations and warranties of the Company
      herein shall also be deemed made on behalf of and with respect to each such
      subsidiary of the Company, except where the context indicates that such
      representation and warranty applies only to the Company, including, without
      limitation, any representations and warranties relating to the capital stock
      of
      the Company. This Placement Agent Agreement (“Agreement”) is to confirm the
      arrangements with you (the “Placement Agent”), with respect to the sale of the
      Units by the Placement Agent as exclusive agent for the Company in the
      Offering.

    

    The
      Offering will not be registered with the Securities and Exchange Commission
      (“SEC”) nor with any state securities authority, but rather will be offered as a
      private placement pursuant to an exemption from registration under Regulation
      D
      (“Regulation D”) promulgated under Section 4(2) and Rule 506 of the Securities
      Act of 1933, as amended (“Securities Act”), and available state securities law
      exemptions. The Units are to be sold in the Offering only to “accredited
      investors”, as that term is defined in Regulation D, pursuant to the
      Subscription Documents. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SECTION
      1. Description
      of Capital Stock.
      The
      Equity shall conform in all respects to descriptions thereof contained in the
      Subscription Documents.

    

    SECTION
      2. Representations
      and Warranties of the Company.
      The
      Company hereby represents, warrants and covenants with the Placement Agent
      as
      follows:

    

    (a)
      The
      Subscription Documents, copies of which will be delivered to the Placement
      Agent, will be carefully prepared to disclose or incorporate by reference all
      information concerning the Company which would be material to an investment
      decision by a reasonable investor. The date on which the Offering is authorized
      by the Company to commence is January 19, 2007 and is herein called the
“Commencement Date.” The time and date of each issuance of Units hereunder is
      herein called an “Issuance Date” or a “Closing.”

    

    (b)
      The
      Company is duly incorporated and validly existing as a corporation in good
      standing under the laws of the state of its incorporation, having corporate
      power and authority to own its properties and conduct its business and is duly
      qualified and in good standing in each foreign jurisdiction where the conduct
      of
      its business so requires such qualification, except where the failure to be
      so
      qualified would not have a material adverse effect on the financial condition,
      results of operations, assets or business of the Company or the Material
      Subsidiaries, taken as a whole (a “Material Adverse Effect”). No direct or
      indirect rights to acquire Common Stock exist, except as have been previously
      disclosed to the public or as disclosed in the Subscription
      Documents.

    

    (c)
      The
      audited financial statements of the Company for the years ended September 30,
      2006 and 2005, each included in the SEC Reports (defined below) (collectively,
      the “Financial Statements”), fairly present in all material respects the
      information purported to be shown therein of the Company, at the respective
      dates to which they apply; and such Financial Statements have been prepared
      in
      conformity with GAAP consistently applied throughout the periods involved and
      are in accordance in all material respects with the books and records of the
      Company.

    

    (d)
      The
      assets of the Company, as shown in the Financial Statements, are owned by the
      Company with good title, free and clear of all liens, encumbrances and equities
      of record or otherwise, except (i) those specifically referred to in the
      Subscription Documents, (ii) those which do not materially adversely affect
      the
      use or value of such assets, (iii) the lien of current taxes not now due or
      which are being contested in good faith and for which adequate reserves have
      been set aside and (iv) those disclosed in the Financial Statements or elsewhere
      in the Subscription Documents. The Company has the full corporate right, power
      and authority to maintain and operate its business and properties as the same
      are now operated or proposed to be operated and is complying with all laws,
      ordinances and regulations applicable thereto, except where the failure to
      so
      comply would not have a Material Adverse Effect.

    

    (e)
      There
      are no actions, suits or proceedings at law or in equity pending, or to the
      Company’s knowledge, threatened, against the Company before or by any federal or
      state commission, regulatory body, administrative agency or other governmental
      body wherein, either in any case or in the aggregate, an unfavorable ruling,
      decision or finding would have a Material Adverse Effect which are not disclosed
      in the Subscription Documents or the SEC Reports. 

    

    (f)
      The
      execution and delivery by the Company of this Agreement, the consummation and
      performance of the transactions herein contemplated, and compliance with the
      terms of this Agreement by the Company will not conflict with, result in a
      material breach of, or constitute a material default under, the Certificate
      of
      Incorporation or the bylaws of the Company, in each case as amended, or any
      indenture, mortgage, deed of trust or other agreement or instrument to which
      the
      Company is now a party or by which it or any of its assets or properties is
      bound and which is filed as an exhibit to the Company’s Annual Report on Form
      10-K for the year ended September 30, 2006, or any other periodic or current
      report filed by the Company with the Securities and Exchange Commission since
      September 30, 2006 (the “SEC Reports”) (such agreements or instruments, the
“Material Contracts”), or any law, order, rule, regulation, writ, injunction,
      judgment or decree of any government, governmental instrumentality or court,
      domestic or foreign, having jurisdiction over the Company or any of its business
      or properties, to the extent that such conflict, breach or default could have
      a
      Material Adverse Effect.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (g)
      Except as set forth in the Subscription Documents or the SEC Reports, all
      material licenses, permits and approvals referred to in the Subscription
      Documents or the SEC Reports (including the Financial Statements) (the
“Permits”) have been obtained and are valid and in full force and effect. There
      are no proceedings pending, or to the knowledge of the Company threatened,
      seeking to cancel, terminate or limit such Permits. Neither the Company nor,
      to
      the knowledge of the Company, any other party is in default under any of the
      Material Contracts, and to the knowledge of the Company, no event has occurred
      which with the passage of time or the giving of notice, or both, would
      constitute a default thereunder. 

    

    (h)
      Except as described in the Subscription Documents or the SEC Reports, the
      Company has timely filed all federal, state and local tax
      returns
      required to be filed, including without limitation, all sales tax returns,
      or
      has obtained extensions thereof and has paid, or is contesting in good faith,
      all taxes shown on such returns.

    

    (i)
      The
      Company shall use the net proceeds from the sale of the Units hereunder
      primarily as described in the Subscription
      Documents.
      The
      Company will not use any proceeds from the sale of the Units for the
      satisfaction of any indebtedness for borrowed money, to redeem any Common Stock
      or Common Stock Equivalents or to settle any litigation outstanding as of any
      Closing. 

    

    (j)
      The
      SEC Reports describe all material patents, trademarks, trade names, copyright
      registrations and applications therefor now or heretofore used or presently
      proposed to be used in the conduct of the business of the Company and the
      failure of which the Company to have would have a Material Adverse Effect (the
      “IP Rights”). Except as set forth in the SEC Reports: (i) the Company owns
      or possesses adequate licenses or other valid rights to use all IP Rights
      necessary to the conduct of the business of the Company as presently being
      conducted; (ii) the validity of such IP Rights and the rights of the
      Company thereto have not been questioned in any litigation to which the Company
      is or has been a party, nor, to the best knowledge of the Company, is any such
      litigation threatened, other than as set forth in the SEC Reports; (iii) to
      the best knowledge of the Company, the conduct of the business of the Company
      as
      now conducted does not and will not conflict with IP Rights of others in any
      way
      which has or might reasonably be expected to have a Material Adverse Effect;
      and
      (iv) no proceedings are pending against the Company nor, to the best
      knowledge of the Company, are any proceedings threatened against the Company,
      alleging any violation of IP Rights of any third person. The Company does not
      know of (x) any
      use that has heretofore been or is now being made of any IP Rights owned by
      the
      Company, except by the Company, any licensor of such IP Rights to the Company
      or
      by a person duly licensed by the Company to use the same under an agreement
      described in the SEC Reports or (y) any
      material infringement of any IP Right owned by or licensed by or to the Company.
      To the best knowledge of the Company, all IP Rights heretofore owned or held
      by
      any agent, independent contractor, employee or officer of the Company or any
      subsidiary thereof and used in the business of the Company in any manner have
      been duly and effectively transferred to the Company. The consummation of the
      transactions contemplated by this Agreement will not alter or impair the rights
      and interests of the Company in any of the IP Rights.

     

    (k)
      All
      of the representations, agreements and warranties in this Section 2 shall
      survive delivery of and payment for all or any part of the Units for two years
      from and after such delivery and payment.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (l)  The
      Company has no subsidiaries other than as disclosed in the Subscription
      Documents.

    

    (m)  
      All of
      the SEC Reports were true and correct in all material respects upon the dates
      of
      filing thereof except as subsequently amended or disclosed in the SEC
      Reports.

    

    SECTION
      3. Issuance,
      Sale and Delivery of the Units.

    

    (a)
      The
      Company hereby agrees to sell the Units directly to subscribers identified
      by
      the Placement Agent on a “best efforts all-or-none” basis with respect to the
      Minimum Offering, and thereafter on a “best efforts” basis with respect to the
      remaining Units up to the Maximum Offering. The offering will commence on the
      Commencement Date and continue until January 31, 2007. Pending the closing
      of
      the sale of the Minimum Offering, the proceeds of the Offering will be deposited
      in escrow in a non-interest bearing account at Signature Bank. Unless the
      Minimum Offering of Units is sold, the Offering will terminate and all funds
      theretofore received from the sale of the Units will be promptly returned to
      the
      subscribers without deduction therefrom or interest thereon. During the period
      of escrow, subscribers will not be entitled to a return of their subscriptions,
      except as required by law. If the Minimum Offering is completed, the remaining
      Units up to the amount of the Maximum Offering will be offered on a “best
      efforts” basis until the first to occur of (i) the completion of the Maximum
      Offering (including any over-allotment sales), (ii) February 28, 2007 or (iii)
      the termination of the Offering by mutual agreement of the Placement Agent
      and
      the Company (“Final Closing”). The Units will be offered for cash and, in
      certain cases, in exchange for debt securities of the Company, and delivery
      of
      the purchase price for the Units and the certificates representing the
      Debentures and Warrants shall be pursuant to the procedures set forth in the
      Subscription Documents.

    

    (b)
      As
      its basic compensation, the Placement Agent (or its designees) shall receive
      (i)
      cash compensation equal to seven percent (7%) of the gross cash proceeds
      received by the Company from the sale of Units, as commission; and (ii)
      additional compensation in the form of warrants (“Placement Agent Warrants”) to
      purchase shares of Common Stock, in an amount equal to 9% of the Shares and
      Warrant Shares underlying Units sold in the Offering, exercisable at the
      conversion price of the Debentures or the exercise price of the Warrants. The
      Placement Agent Warrants and the shares of Common Stock issuable upon exercise
      of the Placement Agent Warrants shall have registration, anti-dilution and
      other
      rights identical to the Shares and Warrant Shares included in or issuable upon
      sale of the Units, and shall be exercisable any time from the Issuance Date
      through the last expiration date of any of the Warrants. Cash compensation
      shall
      be paid in full on the Issuance Date with respect to gross proceeds for Units
      deliverable on such date. 

    

    (c)
      The
      parties hereto represent that at the Issuance Date, the representations and
      warranties herein contained, and the statements contained in all certificates
      theretofore or simultaneously delivered by any party to another pursuant to
      this
      Agreement, shall be true and correct, except as otherwise disclosed in any
      certificate delivered on the Issuance Date.

    

    SECTION
      4. Covenants
      of the Company.
      The
      Company covenants and agrees with the Placement Agent that:

    

    (a)
      On
      the Commencement Date, and on each Issuance Date, the Subscription Documents
      (as
      amended or as supplemented, if the same shall have been amended or supplemented)
      will not (i) contain an untrue statement of a material fact and will not omit
      to
      state a material fact required to be stated therein or necessary in order to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading and (ii) contain any material, non-public information
      required to be disclosed to the general public in order to comply with
      Regulation FD promulgated under the Securities Exchange Act of 1934, as amended,
      unless all recipients of the Subscription Documents execute a confidentiality
      agreement in form and substance acceptable to the Company and the Placement
      Agent, prior to receipt of the Subscription Documents.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (b)
      The
      Company will prepare promptly upon the reasonable request of the Placement
      Agent, such amendments or supplements to the Subscription Documents, in such
      form as in the opinion of counsel to the Placement Agent may be reasonably
      necessary or advisable in connection with the Offering. In addition, if at
      any
      time prior to the last date on which Units shall be issued, (i) an event
      relating to or affecting the Company shall have occurred which, in the judgment
      of the Company or in the opinion of counsel for the Placement Agent, would
      cause
      the Subscription Documents as then in effect to include an untrue statement of a
      material fact or to omit to state a material fact required to be stated therein
      or necessary in order to make the statements therein, in light of the
      circumstances under which they were made, not misleading, or (ii) it is
      otherwise necessary to amend or supplement the Subscription Documents, the
      Company shall promptly notify the Placement Agent of the occurrence and shall
      promptly prepare and deliver to the Placement Agent, without charge, sufficient
      copies of any amended or supplemented Subscription Documents, and shall use
      its
      reasonable best efforts to cause the appropriate state securities authorities
      to
      take any required action with regard to any amendment as may be necessary to
      permit the lawful use of the Subscription Documents, as so amended and
      supplemented, in connection with the Offering.

    

    (c)
      The
      Company’s counsel shall prepare and file any necessary filings, in the
      reasonable opinion of Company’s counsel or Placement Agent’s counsel, under the
      state securities, or so-called “blue sky” laws and regulations (the “Blue Sky
      Laws”) and the Company shall pay the filing fees and all other expenses in
      connection with any such qualification in such jurisdictions as the Placement
      Agent shall designate, and to continue such qualification in effect so long
      as
      required for the purposes of the Offering; provided, however, that the Company
      shall not be required to qualify as a foreign corporation or to file a consent
      to service of process in any jurisdiction in any action other than one arising
      out of the offering or sale of the Units. The Company will provide copies to
      the
      Placement Agent of all documents, exhibits and information filed in connection
      with the qualification of the Units for sale under the Blue Sky
      Laws.

    

    (d)
      The
      Company, at its own expense, will give and continue to give such financial
      statements and other information to and as may be required by the proper public
      bodies of the jurisdictions in which the Offering may be qualified.

    

    (e)
      The
      Company will pay all fees, taxes (excluding any taxes on the income or revenue
      of the purchasers of the Units) and expenses incident to the preparation and
      distribution of the Subscription Documents, the establishment of the escrow
      account with the Escrow Agent, the issuance of the Units and the fees and
      expenses of counsel and accountants for the Company. The Company will pay all
      of
      Placement Agent’s accountable fees and expenses (including printing, mailing,
      travel, etc), payable at the earlier of each Closing or the termination of
      the
      Offering. The Company also agrees to pay all the reasonable fees of Feldman
      Weinstein LLP, Westminster Securities Corp.’s counsel, in addition to all
      reasonable and customary disbursements of such counsel, subject to a maximum
      aggregate amount of $25,000. The Company will additionally pay the Placement
      Agent for its non-accountable fees and expenses at the rate of one percent
      (1%)
      of the gross proceeds received by the Company from the sale of the Units,
      payable at each Closing. In the event that any payment due to the Placement
      Agent or its counsel hereunder shall not be made when due, interest shall accrue
      on the unpaid balance of such overdue payments at the rate of twelve percent
      (12%) per annum until paid.

    

    (f)
      The
      form of Subscription Documents, Debentures, Warrants and Placement Agent Warrant
      shall contain the registration rights, anti-dilution protection and such other
      information, representations, warranties and covenants as shall be reasonably
      acceptable to the Placement Agent. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (g)
      The
      Company shall not release any Offering documents or the Subscription Documents
      unless they are reasonably acceptable to the Placement Agent.

    

    (h)
      Except as described in the SEC Reports or the Subscription Documents, all
      Permits will be valid on the Issuance Date, the Company shall in all material
      respects be complying therewith and there shall be no proceedings pending,
      or to
      the knowledge of the Company threatened, seeking to cancel, terminate, suspend
      or limit any such Permits.

    

    (i)
      At
      each Issuance Date, the Company shall not have failed to qualify to do business
      as a 

    foreign
      corporation in any jurisdiction where required, except where failure to so
      qualify would not have a Material Adverse Effect or where any qualification
      is
      required solely as a result of conducting business over the
      Internet.

    

    (j)
      At
      the Commencement Date and at each Issuance Date, the Company will be validly
      existing as a corporation in good standing under the laws of the state of its
      incorporation, having corporate power and authority to own its properties and
      conduct its business, and will have a capitalization as described in the SEC
      Reports. Other than as described in the Subscription Documents or the SEC
      Reports, 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 exchangeable for, or giving any person
      or entity any right to subscribe for or acquire, any shares of Common Stock,
      or
      contracts, commitments, understandings or arrangements by which the Company
      or
      any Material Subsidiary is or may become bound to issue additional shares of
      Common Stock, or securities or rights convertible or exchangeable into shares
      of
      Common Stock. Following the date of publication of the Subscription Documents
      and prior to the first Issuance Date, the only additional securities issued
      in
      addition to those described in the previous sentence shall be the Equity.

    

    (k)
      At
      each Closing, (i) the Equity will conform, in all material respects, to all
      statements with regard thereto contained in the Subscription Documents, (ii)
      the
      Equity shall have been duly and validly authorized by proper corporate
      authority, (iii) each portion of the Equity, when issued, exercised and/or
      paid
      for (as applicable), or otherwise earned, each in accordance with its terms,
      will be validly issued, fully paid and nonassessable and (iv) all shares of
      Common Stock that comprise the Equity shall have been duly and validly reserved
      for issuance. The Company shall ensure that all exercises properly requested
      shall be effected promptly by the Company.

    

    SECTION
      5. Indemnification.
      

    

    (a)  The
      Company hereby agrees to indemnify and hold harmless the Placement Agent, its
      directors, officers, agents, employees, members, affiliates, counsel and each
      other person or entity who controls the Placement Agent within the meaning
      of
      Section 15 of the Securities Act (collectively, the “Agent Indemnified Parties”)
      from and against any and all losses, claims, damages or liabilities (or actions
      in respect thereof), joint or several, to which they or any of them may become
      subject under the Securities Act or any other statute or at common law, and
      to
      reimburse such Agent Indemnified Parties for any reasonable legal or other
      expense (including the cost of any investigation and preparation) incurred
      by
      them in connection with any litigation, whether or not resulting in any
      liability, but only insofar as such losses, claims, liabilities and litigation
      arise out of or are based upon (i) any untrue statement or alleged untrue
      statement of a material fact required to be stated in the Subscription
      Documents, or omission to state therein a material fact necessary in order
      to
      make the statements therein, in the light of the circumstances under which
      they
      are made, not misleading (including, but not limited to, any documents deemed
      to
      be incorporated into the Subscription Documents by reference), (ii) any breach
      by the Company of any representation, warranty or covenant contained herein,
      (iii) any matter otherwise relating to, arising out of or in connection with
      the
      Offering or (iv) Placement Agent’s service as Placement Agent hereunder;
      provided, however, that the indemnity provisions contained in this subsection
      (a) shall not apply to (x) amounts paid in settlement of any such litigation
      if
      such settlement is effected without the consent of the Company (which shall
      not
      be unreasonably withheld, delayed or denied), or (y) the Placement Agent or
      any
      other Agent Indemnified Parties in respect of any such losses, claims, damages,
      liabilities or actions (A) arising out of, or based upon any such untrue
      statement or alleged untrue statement, or any such omission or alleged omission,
      if such statement or omission was made in reliance upon information furnished
      in
      writing to the Company by the Placement Agent or such Agent Indemnified Parties
      specifically for use in connection with the preparation of the Subscription
      Documents or any amendment thereof or supplement thereto or (B) arising from
      the
      willful misconduct or gross negligence of the Placement Agent or any other
      Agent
      Indemnified Party.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (b)  The
      Placement Agent hereby agrees to indemnify and hold harmless the Company, its
      directors, officers, agents, employees, members, affiliates, counsel and each
      other person or entity who controls the Company within the meaning of Section
      15
      of the Securities Act (collectively, the “Company Indemnified Parties”) from and
      against any and all losses, claims, damages or liabilities (or actions in
      respect thereof), joint or several, to which they or any of them may become
      subject under the Securities Act or any other statute or at common law, and
      to
      reimburse such Company Indemnified Parties for any reasonable legal or other
      expense (including the cost of any investigation and preparation) incurred
      by
      them in connection with any litigation, whether or not resulting in any
      liability, but only insofar as such losses, claims, liabilities and litigation
      arise out of or are based upon Placement Agent’s service as Placement Agent
      hereunder; provided, however, that the indemnity provisions contained in this
      subsection (b) shall only apply to losses, claims, damages, liabilities or
      actions arising from the willful misconduct or gross negligence of the Placement
      Agent or any other Agent Indemnified Party and shall not apply to amounts paid
      in settlement of any such litigation if such settlement is effected without
      the
      consent of the Placement Agent (which shall not be unreasonably withheld,
      delayed or denied).

    

    (c)  Each
      party will reimburse all the other’s Indemnified Parties for all reasonable
      expenses (including, but not limited to, reasonable fees and disbursements
      of
      counsel for the applicable Indemnified Parties) incurred by any such Indemnified
      Parties in connection with investigating, preparing and defending any such
      action or claim, whether or not in connection with pending or threatened
      litigation in connection with the transaction to which an Indemnified Party
      is a
      party, as such expenses are incurred or paid. Each party agrees, within thirty
      (30) days of receipt, to notify the other party in writing of the receipt of
      written notice of the commencement of any action against it or against any
      other
      Indemnified Parties, in respect of which indemnity may be sought from the other
      party on account of the indemnity provisions contained in this Section 5. In
      case any such action shall be brought against the any Indemnified Parties,
      the
      indemnifying party shall be entitled to participate in (and, to the extent
      that
      it shall wish, to direct) the defense thereof at its own expense, but such
      defense shall be conducted by counsel reasonably satisfactory to the Indemnified
      Parties.

    

    (d)  The
      indemnity provisions set forth herein, and the representations and warranties
      of
      each party set forth in this Agreement, shall remain operative and in full
      force
      and effect, regardless of any investigation made by or on behalf of the other
      party, subject to the limitations contained herein, and shall survive the
      delivery of the Units, and any successor of any Indemnified Parties shall be
      entitled to the benefit of the respective indemnity provisions.

    

    (e)  In
      order
      to provide for just and equitable contribution in any case in which (i) any
      person entitled to indemnification under this Section 5 makes claim for
      indemnification pursuant hereto but it is judicially determined (by the entry
      of
      a final judgment or decree by a court of competent jurisdiction and the
      expiration of time to appeal or the denial of the last right of appeal) that
      such indemnification may not be enforced in such case notwithstanding the fact
      that this Section 5 provides for indemnification in such case, or (ii)
      contribution under the Securities Act may be required on the part of any such
      person in circumstances for which indemnification is provided under this Section
      5, then and in each such case, the Company and the Placement Agent shall
      contribute to the aggregate losses, claims, damages or liabilities to which
      they
      may be subject (after any contribution from others) in such proportion so that
      the Placement Agent is responsible for an aggregate of seven percent (7.0%)
      of
      the gross proceeds received by the Company on account of the sale of Units
      by
      the Placement Agent (being the Placement Agent’s cash commission with respect to
      such Units), and the Company is responsible for the remaining portion; provided
      however, that in any such case, no person guilty of a fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Securities Act)
      shall be entitled to contribution from any person who was not guilty of such
      fraudulent misrepresentation.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (f)  Promptly
      after receipt by any party to this Agreement (or its representative) of notice
      of the commencement of any action, suit or proceeding, such party will, if
      a
      claim for contribution in respect thereof is to be made against another party
      (the “Contributing Party”), notify the Contributing Party in writing of the
      commencement thereof, but the omission to so notify the Contributing Party
      will
      not relieve it from any liability which it may have to any other party other
      than for contribution hereunder. In case any such action, suit or proceeding
      is
      brought against any party and such party so notifies a Contributing Party or
      his
      or its representative of the commencement thereof within the aforesaid period,
      the Contributing Party will be entitled to participate therein, with the
      notifying party and any other Contributing Party similarly notified. Any such
      Contributing Party shall not be liable to any party seeking contribution on
      account of any settlement of any claim, action or proceeding effected by such
      party seeking contribution without the written consent of such Contributing
      Party. The contribution provisions contained in this Section 5 are in addition
      to any other rights or remedies which the Company and the Placement Agent may
      have hereunder or otherwise.

    

    SECTION
      6. Effectiveness
      of Agreement.
      This
      Agreement shall become effective as of the date hereof.

    

    SECTION
      7. Conditions
      of the Placement Agent’s Obligations.
      The
      Placement Agent’s obligation to act as the agent of the Company hereunder, and
      the Placement Agent's obligation to use its best efforts to find purchasers
      for
      the Units, shall be subject to the satisfactory completion of its due diligence
      examination and the accuracy, as of each Issuance Date, of the representations
      and warranties on the part of the Company herein contained, to the performance
      by the Company of all its agreements herein contained, to the fulfillment of
      or
      compliance by the Company with all covenants and conditions hereof, and to
      the
      following additional conditions:

    

    (a)
      The
      Placement Agent shall not have disclosed in writing to the Company that the
      Subscription Documents or any amendment or supplement thereto contains an untrue
      statement of a fact which in the opinion of counsel to the Placement Agent,
      is
      material or omits to state a fact which, in the opinion of such counsel, is
      material and is required to be stated therein or is necessary to make the
      statements therein not misleading.

    

    (b)
      Between the date hereof and each Issuance Date, the Company shall not have
      sustained any loss on account of fire, explosion, flood, accident, calamity
      or
      other cause, of such character as shall, in the sole discretion of the Placement
      Agent, materially adversely affect its business or property.

    

    (c)
      Between the date hereof and each Issuance Date, there shall be no litigation
      instituted, or to the knowledge of the Company threatened, against the Company
      and there shall be no proceeding instituted or threatened against the Company
      or
      before or by any federal or state commission, regulatory body or administrative
      agency or other governmental body, domestic or foreign, wherein an unfavorable
      ruling, decision or finding would have a Material Adverse Effect.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (d)
      During the period subsequent to the Commencement Date and prior to each Issuance
      Date, the Company (i) shall have conducted its business in the usual and
      ordinary manner as the same was being conducted on the Commencement Date and
      (ii) the Company shall not have suffered or experienced any Material Adverse
      Effect. 

    

    (e)
      The
      authorization of the Units, the Placement Agent Warrants, the Equity, the
      Subscription Documents, and all corporate proceedings and other legal matters
      incident thereto and to this Agreement shall be reasonably satisfactory in
      all
      material respects to counsel to the Placement Agent.

    

    (f)
      The
      Company shall have furnished to the Placement Agent the opinion of its counsel,
      that:

    

    (i)
      The
      Company is a validly existing corporation in good standing under the laws of
      the
      state of its incorporation with full corporate power and authority to enter
      into
      this Agreement and perform its obligations hereunder, and the Company is in
      good
      standing as a foreign corporation in the jurisdictions where it is qualified
      to
      do business and where its business requires such qualification.

    

    (ii)
      The
      Company has an authorized capitalization as described in the Subscription
      Documents. The Units, Additional Warrants and Placement Agent Warrants are
      in
      due and proper form and conform in all material respects to the rights set
      forth
      in the instruments defining the same. Except as set forth in the Subscription
      Documents or in the Company’s filings with the SEC, no direct or indirect rights
      to acquire Common Stock exist.

    

    (iii)
      The
      Equity has been duly and validly issued and are fully paid and does not have
      any
      preemptive rights applicable thereto; and all of the Common Stock underlying
      the
      Equity has been duly authorized, reserved for issuance and, upon payment or
      conversion therefor (as applicable) in accordance with the terms of the
      applicable security, will be duly and validly issued, fully paid and
      non-assessable and will have no preemptive rights applicable
      thereto.

    

    (iv)
      This
      Agreement, the Subscription Documents and all transactions contemplated hereby
      and thereby have been duly authorized, executed and delivered by the Company
      and
      are valid and binding obligations of the Company legally enforceable against
      the
      Company in accordance with its terms except as enforceability may be limited
      by
      bankruptcy, insolvency, reorganization and other laws of general applicability
      relating to or affecting creditors’ rights now or hereafter in effect, and to
      general equitable principles.

    

    (v)
      Neither the execution, delivery or performance of this Agreement nor the
      consummation of the transactions herein contemplated, nor compliance with the
      terms hereof by the Company do or will conflict with or result in a breach
      of
      any of the terms or provisions of, or constitute a default under, the articles
      of incorporation, as amended, or the bylaws, as amended, of the Company, any
      indenture, mortgage, deed of trust or other agreement or instrument to which
      the
      Company is a party or by which it or any of its assets or properties is bound,
      or any law, order, rule, regulation, judgment, writ, injunction or decree of
      any
      government, governmental instrumentality or court, domestic or foreign, having
      jurisdiction over the Company or its business or any of its properties, the
      violation of which could prevent the Company from performing its obligations
      hereunder or otherwise materially adversely affect the Company; and no consent,
      approvals, authorizations or orders of agencies, officers or other regulatory
      authorities are necessary for the valid authorization, issue or sale of the
      Equity, and the performance by the Company of this Agreement and its
      consummation of the transactions contemplated hereby and under the Subscription
      Documents, except under state securities or Blue Sky Laws, as to which no
      opinion need be expressed. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (vi) There
      are
      no actions, suits or proceedings at law or in equity pending or threatened,
      against the Company and there are no proceedings pending or threatened against
      the Company before or by any federal or state commission, regulatory body or
      administrative agency or other governmental body wherein, either in any case
      or
      in the aggregate, an unfavorable ruling, decision or finding could materially
      adversely affect the business, franchise, licenses, permits, operations,
      financial condition or income of the Company which are not disclosed in the
      Subscription Documents.

    

    (vii)
      The
      issuance of the Equity is exempt from registration under the Securities Act
      of
      1933, as amended.

    

    (g)
      The
      Company shall have furnished to the Placement Agent a certificate of the Chief
      Executive Officer and the Chief Financial Officer of the Company dated as of
      each Issuance Date, in the form attached hereto as Exhibit A.

    

    All
      the
      opinions, letters, certificates and evidence mentioned above or elsewhere in
      this Agreement shall be deemed to be in compliance with the provisions hereof
      only if they are in form and substance satisfactory to counsel of the Placement
      Agent, whose approval shall not be unreasonably withheld. 

    

    SECTION
      8. Termination.

    

    (a)
      This
      Agreement may be terminated by the Placement Agent by notice to the Company
      in
      the event that the Company shall have failed or been unable to comply with
      any
      of the terms, conditions or provisions of this Agreement on the part of the
      Company to be performed, complied with or fulfilled within the respective times
      herein provided for, unless compliance therewith or performance or satisfaction
      thereof shall have been expressly waived by the Placement Agent in
      writing.

    

    (b)
      This
      Agreement may be terminated by the Placement Agent by notice to the Company
      at
      any time if, in the sole judgment of the Placement Agent, the Offering or the
      sale or the payment for or the delivery of the Units is rendered impracticable
      or inadvisable because (i) additional material governmental restrictions not
      in
      force and effect on the date hereof shall have been imposed upon trading in
      securities generally, or minimum or maximum prices shall have been generally
      established, or trading in securities generally on the Over-The-Counter Bulletin
      Board shall have been suspended or a general banking moratorium shall have
      been
      established by federal or New York State authorities, (ii) a war, major
      hostilities, terrorist or similar activity, act of God or other calamity shall
      have occurred which materially adversely affects the ability of the Placement
      Agent to perform its obligations hereunder, (iii) of a Material Adverse Effect
      or (iv) the Placement Agent, in its sole discretion, shall be dissatisfied
      with
      the results of its due diligence investigation.

     

    (c)
      Any
      termination of this Agreement pursuant to this section shall be without
      liability of any character (including, but not limited to, loss of anticipated
      profits or consequential damages) on the part of any party hereto, except that
      the Company shall remain obligated to pay the costs and expenses provided to
      be
      paid by it specified in Section 4(e) through the date of termination, and the
      Company shall be obligated to pay all losses, claims, damages or liabilities,
      joint or several, payable by the Company under Section 5(a).

    

    SECTION
      9. Finders.
      The
      Company and the Placement Agent mutually represent that they know of no third
      party who rendered any service in connection with the introduction of the
      Company to the Placement Agent and who is making a claim against anyone for
      a
“finder’s fee” or similar type of fee in connection with the Offering. Each
      party hereby indemnifies the other against any claims by any person known to
      it
      and not known to the other parties hereto, who shall claim to have rendered
      services in connection with the introduction of the Company to the Placement
      Agent or to have such a claim and who shall make a claim for a fee in connection
      therewith.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    SECTION
      10. Placement
      Agent’s Representations and Warranties.
      The
      Placement Agent represents and warrants to and agrees with the Company
      that:

    

    (a)
      The
      Placement Agent is registered as a broker-dealer with the Securities and
      Exchange Commission and is a member in good standing of the National Association
      of Securities Dealers, Inc. (“NASD”).

    

    (b)
      The
      Placement Agent will not effect offers or sales of the Units in any jurisdiction
      unless it or its representative is duly licensed to effect offers and sales
      in
      such jurisdiction and the offer and sale of the Units are registered or exempt
      from registration in such jurisdiction.

    

    (c)
      The
      Placement Agent has duly authorized this Agreement and this Agreement is the
      valid, binding and enforceable obligation of the Placement Agent. 

    

    (d)
      In
      making any offer of the Units, the Placement Agent will not make any material
      representation to potential investors not contained in the Subscription
      Documents which has not been authorized in writing by the Company.

    

    (e)
      The
      Placement Agent shall not utilize any general advertising or solicitation to
      offer the Units. 

    

    SECTION
      11. Notice.
      Except
      as otherwise expressly provided in this Agreement, (a) whenever notice is
      required by the provisions of this Agreement to be given to the Company, such
      notice shall be given
      in
      writing, addressed to the Company at the address set forth in the Subscription
      Documents,
      with a
      copy to David
      L.
      Kagel, Esq., 1801 Century Park East, Suite 2500, Los Angeles, CA
      90067
      and (b)
      whenever notice is required by the provisions of this Agreement to be given
      to
      the Placement Agent,
      such notice
      shall be in writing addressed
      to the Placement Agent at the address set forth
      above,
      with a copy to Feldman Weinstein Smith LLP, 420 Lexington Avenue, Suite 2620,
      New York, NY 10170, Attn: Joseph Smith,
      Esq.

    

    SECTION
      12. Miscellaneous.
      

    

    (a)
      This
      Agreement is made solely for the benefit of the Placement Agent, the Company
      and
      any controlling person referred to in Section 15 of the Securities Act, and
      their respective successors and assigns, and no other person shall acquire
      or
      have any right under or by virtue of this Agreement. The term “successor” or the
      term “successors and assigns” as used in this Agreement shall not include any
      purchaser, as such, of any of the Units.

    

    (b)
      The
      headings in this Agreement are for reference only and shall not limit or
      otherwise affect any of the terms or provisions hereof.

    

    (c)
      The
      provisions of this Agreement shall be deemed severable, so that if any part,
      section or provision hereof shall be declared unlawful or unenforceable, the
      remaining parts, sections or provisions hereof shall not be affected thereby
      and
      shall remain in full force and effect.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    (d)
      This
      Agreement shall be deemed to have been drafted jointly by the parties
      hereto.

    

    (e)
      The
      Placement Agent shall have the right to associate itself with such other members
      of the NASD and/or foreign investment firms duly licensed, if required, in
      their
      respective locales offering the Units only offshore to the United States as
      additional agents as the Placement Agent may elect, in its sole discretion.
      Such
      additional agents may become selected dealers subject to this Agreement in
      the
      sole discretion of the Placement Agent by signing a Selected Dealer Agreement
      in
      form satisfactory to the Placement Agent. The Placement Agent shall have the
      right to share any compensation due to the Placement Agent hereunder, with
      such
      additional agents and in such amounts as the Placement Agent deems fit, in
      its
      sole judgment. In addition, such additional agents shall be afforded the same
      indemnification by the Company as offered to the Placement Agent
      hereunder.

    

    (f)
      The
      validity, interpretation and construction of this Agreement, and of each part
      hereof, will be governed by the local laws of the State of New York, without
      giving effect to its conflict of law principles or rules. In the event of a
      dispute, the parties hereto agree to be bound by the arbitration procedures
      of
      the American Arbitration Association, and that such arbitration shall take
      place
      in the New York City metropolitan area. In actions not involving collection
      by a
      Placement Agent of compensation and/or reimbursement expenses, the prevailing
      party shall be reimbursed by the nonprevailing party for all reasonable
      attorney’s fees and costs (including all arbitration costs) incurred by the
      prevailing party in resolving such dispute. In any action in which a Placement
      Agent seeks compensation and/or reimbursement of expenses, the Company shall
      reimburse such Placement Agent for all costs associated with such action
      (including but not limited to reasonable attorney fees) as and when the
      Placement Agent provides the Company with invoices for such costs and expenses.
      

    

    (g)
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and all of which together will constitute one and the same instrument.
      This Agreement may be executed by facsimile signatures or scanned electronic
      mail (e-mail) attachment.

    

    (h)
      The
      Placement Agent shall not be obligated to provide advice or perform services
      to
      the Company that are not specifically addressed in this Agreement and/or the
      engagement letter between the Company and Westminster Securities Corp. effective
      as of April 10, 2006 (the “Engagement Letter”). The obligations of the Placement
      Agent described in this Agreement and the Engagement Letter consist solely
      of
      best efforts services to the Company. In no event shall the Placement Agent
      be
      required or permitted without express authorization by this Agreement or the
      Engagement Letter to make decisions for the Company or to provide legal or
      accounting services. All final decisions with respect to acts of the Company
      or
      its affiliates, whether or not made pursuant to or in reliance upon information
      or advice furnished by the Placement Agent hereunder, shall be those of the
      Company or such affiliates, and the Placement Agent shall under no circumstances
      be liable for any expense incurred or loss suffered by the Company as a
      consequence of such decisions.

    

    (i)
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and authorized assigns. Any attempt by either party
      to assign any rights, duties, or obligations which may arise under this
      Agreement without the prior written consent of the other party shall be
      void.

    

    (j)
      This
      Agreement and the Engagement Letter contain the entirety of the agreements
      between the parties with respect to the subject matters hereof and thereof,
      and
      neither party is relying on any agreement, representation, warranty, or other
      understanding not expressly stated in this Agreement and/or the Engagement
      Letter. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (k)
      The
      parties acknowledge that certain provisions of this Agreement must survive
      any
      termination or expiration thereof in order to be fair and equitable to the
      party
      to whom any promise or duty to perform is owed under such provision prior to
      such termination or expiration of the Agreement. Therefore, the parties agree
      that the provisions of Sections 1, 2, 3, 4, 5, 7, 8(c), 9, 10, 11, and 12 shall
      survive the termination or expiration of this Agreement for the period required
      to meet and satisfy any obligations and promises arising therein and
      thereunder

     

    Please
      confirm that the foregoing correctly sets forth the Agreement between the
      Placement Agent and the Company.

     

    
      	 	 	TECHNOCONCEPTS,
              INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
              

            

    

    We
      hereby
      confirm as of the date hereof that the above letter sets forth the agreement
      between the Company and us.

    
      	 	 	 
	 	 	
              WESTMINSTER
                SECURITIES CORPORATION

            
	 	 	 
	 	By:  	 
	 	
              
John
              P. O’Shea, Chairman &
CEO

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    FORM
      OF OFFICER’S CERTIFICATE

    

    [Date]

    

    Westminster
      Securities Corporation

    100
      Wall
      Street, 7th
      Floor

    New
      York,
      NY 10005

    

    Ladies
      and Gentlemen:

    

    We,
      the
      Chief Executive Officer and Chief Financial Officer of TechnoConcepts, Inc.
      (the
“Company”), in connection with the execution and delivery by the Company of each
      Subscription Agreement (the "Subscription Agreements"), by and among the Company
      and the investors identified on each signature page thereto (the “Investors”) as
      of the date above (“Closing”), do hereby certify as follows (Capitalized terms
      not otherwise defined herein are defined as set forth in the Subscription
      Agreements.):

    

    (i)
      The
      representations and warranties of the Company in each Subscription Agreement
      are
      true and correct in all material respects at and as of the Closing and the
      Company has complied in all material respects with all the agreements and
      satisfied all the conditions on its part to be performed or satisfied at or
      prior to the Closing.

    

    (ii)
      The
      Subscription Documents and any amendments and supplements thereto, and all
      statements contained therein, are true and correct, and neither the Subscription
      Documents nor any amendment or supplement thereto includes any untrue statement
      of a material fact or omits to state any material fact required to be stated
      therein in light of the circumstances in which they were made or necessary
      to
      make the statements therein not misleading, and since the Commencement Date,
      there has occurred no event required to be set forth in amended or supplemented
      Subscription Documents which has not been so set forth.

     

    
      	Very
              truly
              yours,	 	 	 
	
               

               

            	 	 	 
	
              
                

              

              Antonio E. Turgeon

              Chief Executive Officer

            	 	 	
              
                

              

              Michael Handelman

              Chief Financial
                Officer

            

    
      
        
        

      

      
        14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]