Document:

EXHIBIT 4.4

                               GASCO ENERGY, Inc.

                                  STOCK OPTION

         When  duly  signed  by an  authorized  officer  of GASCO  ENERGY,  inc.
(hereinafter referred to as "the Company"),  this document grants to the natural
person  whose  name is  printed  at the  bottom  of this  document  (hereinafter
"Optionee")  an option to  acquire  shares of the  Common  Stock of the  Company
("hereinafter  "the Option").  The terms of this Stock Option are set out below.
This Stock Option is effective as of the date of the authorized signature at the
end of this document.

         The  Option  recognizes  that  Optionee  has  made  a  significant  and
important  contribution  to the  success  of the  Company,  and is  capable  and
inclined to make further important  contributions to the success of the Company.
The Board of Directors of the Company has  authorized the grant of the Option to
Optionee.

         1. Term of Option;  When  Exercisable.  The Option may be  exercised in
whole or in part, and at any time, during the period shown on the signature page
hereof, but only upon and to the extent of vesting of the Option as shown on the
signature  page  (hereinafter  "the  Term");  subject to the  provisions  of the
Optionee's employment agreement with the Company.

                  The Option will  expire at 5:00 PM  Mountain  Time on the date
shown on the signature page hereof,  and thereafter shall be of no further force
or effect.

     2. How  Exercisable.  Optionee  may  exercise  the Option by  delivery of a
Written  Exercise  in the form  attached  as  Exhibit  "A," which must be dated,
signed and fully  completed.  The Company must receive your Written Exercise (a)
within the Term;  and (b)  accompanied by the full exercise price for the shares
to be acquired. The exercise price may be paid in one of the following ways:

          (a) in the form of a  cashier's  check  payable to the  Company in the
     amount of the exercise  price per share  multiplied by the number of shares
     being exercised.

          (b) in the form of a written  request  that the full  number of shares
     covered by the Option be  exercised,  but also  directing  that the Company
     retain  and cancel the number of shares  having an  aggregate  Fair  Market
     Value equal to the total exercise price due. (For example,  assume that the
     Option  covered 16 shares with an  exercise  price of $2.00 per share and a
     Fair  Market  Value of $4.00  per  share at the time of  exercise.  In this
     example,  Optionee  could direct that 8 shares be retained and cancelled in
     full payment for the delivery of 8 shares, net, to Optionee.)

                                       1
<PAGE>

         Certificate(s)  evidencing  the shares you  acquire  through the Option
will be issued within a reasonable time following exercise.

     3. By Whom Exercisable. The Option may be exercised only by the Optionee or
Optionee's legal personal representative.

     4.  No  Stockholder  Rights.  Optionee  will  not  have  any  rights  as  a
stockholder  of the  Company  with  respect to any shares  covered by the Option
until exercise of the Option with respect to such shares.

     5.  Tax  Effects;   Securities  Law   Compliance.   The  Company  makes  no
representations  as to the tax effects as a result of Optionee's  receipt of the
Option or as a result of the exercise of the Option.

         The shares  underlying  the Option  and which may be  acquired  through
exercise of the Option have not been registered under the Securities Act of 1933
or under any  applicable  state  securities  registration  laws,  and may not be
resold  or  transferred  without  such a  registration  being  in  force  or the
availability  of  an  exemption  from  such  registration.  Optionee  is  solely
responsible to ascertain,  determine and comply with all  applicable  securities
laws in  connection  with the exercise of the Option and the sale or transfer of
the underlying shares. Share certificates issued upon the exercise of the Option
shall be legended in accordance with this Section 5.

     6. Miscellaneous.

         This Option shall be construed in accordance with, and governed by, the
substantive laws of Nevada without  reference to principles  governing choice or
conflicts of law.

         All  provisions  of this Option are subject to the terms of  Optionee's
employment agreement with the Company.

         This Option may not be amended or modified by the Company  except by an
agreement in writing that is signed by the Company and Optionee.

         The captions  used herein are for ease of reference  only and shall not
define or limit the provisions hereof.

                                       2
<PAGE>

         "Fair  Market  Value" as used in this Option shall mean the most recent
appraised value of the Company divided by the total number of outstanding shares
of Common  Stock,  including  all shares  covered by  outstanding  stock options
regardless of vesting; provided that if there is an independently derived market
price  for  shares  of the  Company's  Common  Stock,  as on a public  market or
exchange, that reported value will be Fair Market Value.

         NAME OF OPTIONEE:  _______________________

         The date vested,  expiration date, number of shares, and exercise price
per share of this option are set forth  below  provided  that  Optionee is still
employed by the Company on the day before the vesting date in question.

Grant Date   Date Vested    Expiration Date    Number of    Exercise Price/Share
                                                Shares             $

                                                     GASCO ENERGY, inc.

                                                     By:
                                                       ----------------------
                                                     Its:  President

                               GASCO ENERGY, inc.

                           WRITTEN EXERCISE OF OPTION

To:      GASCO ENERGY, Inc.:

         Optionee was granted an option ("the Option") to purchase shares of the
Common  Stock  of the  Company,  a copy of  which is  attached  to this  Written
Exercise.  Optionee  acknowledges  that the validity of the Option is contingent
upon the  fulfillment  of the  conditions  contained  in the  Option and in this
Written Exercise.  Optionee hereby affirms the terms of the Option, and declares
that  Optionee  is not  currently  in breach or  derogation  of the terms of the
Option.

         Seeking to be bound thereby,  and  understanding  that the Company will
rely  hereon,  Optionee  hereby  exercises  the Option  and makes the  following
representations:

                                       3
<PAGE>

         1.  Optionee  hereby  exercises  the Option and  purchases  thereby the
number of shares of Common Stock of the Company set forth in the place  provided
below, for a total exercise price set forth in the space provided below.

         2. The exercise price is fair and the undersigned  waives any challenge
as to its determination.

         3. The Option is governed by federal and state tax and securities  laws
and by its own terms.  Optionee has consulted with tax and securities counsel or
other  advisor(s) and has been satisfied as to the federal and state  securities
law and tax incidents of the exercise of this Option. Optionee holds the Company
harmless as to the  disclosure  or failure to  disclose  part or all of any such
securities  law or tax  incidents.  Optionee  hereby  waives  any  challenge  or
objection to the Option based on any such changes in federal or state law.

         4. Access has been  provided  to the  Company's  most recent  financial
statements  and  Optionee  has been given an  opportunity,  directly  or through
agents,  to discuss  the affairs of the Company  with  members of the  Company's
senior management.

NO. OF SHARES:                            TOTAL EXERCISE PRICE:  $
              -------------------------                         ----------------

Exercise Price is: (check one) /  / Cashier's Check  /  / Net-Out of Shares
                                        (enclosed)       (according to formula)

         DATED this __________ day of _____________________,________

         OPTIONEE NAME:
                         -------------------------------------------------------
                                     (print)

         OPTIONEE SIGNATURE:
                              --------------------------------------------------

                                       4
<PAGE>

Gasco Energy, Inc.
Schedule of Options Issued Pursuant to the Attached Form of Option Agreement
<TABLE>
<CAPTION>

                             Number of Shares
                                Underlying   Exercise                                          Expiration
Individual                        Options     Price         Grant Date       Vesting Date         Date

<S>                               <C>         <C>             <C>               <C>              <C>
Stadelhofer, Carl                 50,000      $3.00           2/8/01            2/8/01           2/8/11
Bowes, Timothy                    50,000      $3.00           2/8/01            2/8/01           2/8/11
                                  50,000      $3.00           2/8/01            8/8/01           8/8/11
Dean, Robin                       62,500      $3.00           2/8/01            8/8/01           8/8/11
                                  62,500      $3.00           2/8/01            2/8/02           2/8/12
                                  62,500      $3.00           2/8/01            8/8/02           8/8/12
                                  62,500      $3.00           2/8/01            2/8/03           2/8/13
Thorup, Robert                    50,000      $3.00           2/8/01            2/8/01           2/8/11
Wright, Suzanne                   20,000      $3.15           5/4/01            5/4/01           5/4/06
                                   3,750      $3.15           5/4/01            8/4/01           8/4/06
                                   3,750      $3.15           5/4/01           11/4/01           11/4/06
                                   3,750      $3.15           5/4/01            2/4/02           2/4/07
                                   3,750      $3.15           5/4/01            5/4/02           5/4/07
                                   3,750      $3.15           5/4/01            8/4/02           8/4/07
                                   3,750      $3.15           5/4/01           11/4/02           11/4/07
                                   3,750      $3.15           5/4/01            2/4/03           2/4/08
                                   3,750      $3.15           5/4/01            5/4/03           5/4/08
Lotito, Carmen                    50,000      $3.15           5/4/01            5/4/01           5/4/06
                                   6,250      $3.15           5/4/01            8/4/01           8/4/06
                                   6,250      $3.15           5/4/01           11/4/01           11/4/06
                                   6,250      $3.15           5/4/01            2/4/02           2/4/07
                                   6,250      $3.15           5/4/01            5/4/02           5/4/07
                                   6,250      $3.15           5/4/01            8/4/02           8/4/07
                                   6,250      $3.15           5/4/01           11/4/02           11/4/07
                                   6,250      $3.15           5/4/01            2/4/03           2/4/08
                                   6,250      $3.15           5/4/01            5/4/03           5/4/08
Hartfield, Sonnier & Blue         20,000      $3.10           5/3/01            5/4/01           5/4/06
                                  12,500      $3.10           5/3/01            8/4/01           8/4/06
                                  12,500      $3.10           5/3/01           11/4/01           11/4/06
                                  12,500      $3.10           5/3/01            2/4/02           2/4/07
                                  12,500      $3.10           5/3/01            5/4/02           5/4/07
                                  12,500      $3.10           5/3/01            8/4/02           8/4/07
Matsukage, Fay                     6,250      $3.15           5/4/01            8/4/01           8/4/06
                                   6,250      $3.15           5/4/01           11/4/01           11/4/06
                                   6,250      $3.15           5/4/01            2/4/02           2/4/07
                                   6,250      $3.15           5/4/01            5/4/02           5/4/07
                                   6,250      $3.15           5/4/01            8/4/02           8/4/07
                                   6,250      $3.15           5/4/01           11/4/02           11/4/07
                                   6,250      $3.15           5/4/01            2/4/03           2/4/08
                                   6,250      $3.15           5/4/01            5/4/03           5/4/08
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>

                                Number of
                                  Shares
                                Underlying   Exercise                                              Expiration
Individual                        Options      Price          Grant Date        Vesting Date           Date

<S>                                <C>         <C>             <C>                <C>                <C>
Grant, King                        25,000      $3.00           6/22/01            9/22/01            9/22/06
                                   25,000      $3.00           6/22/01            12/22/01           12/22/06
                                   25,000      $3.00           6/22/01            3/22/02            3/22/07
                                   25,000      $3.00           6/22/01            6/22/02            6/22/07
                                   25,000      $3.15           6/22/01            9/22/02            9/22/07
                                   25,000      $3.15           6/22/01            12/22/02           12/22/07
                                   25,000      $3.15           6/22/01            3/22/03            3/22/08
                                   25,000      $3.15           6/22/01            6/22/03            6/22/08
                                  100,000      $3.00           6/22/01            6/22/01            6/22/06
                                  137,000      $2.00           12/31/01           12/31/01           12/31/11
Hendricks, Sherrill                10,000      $3.15            5/4/01             5/4/01             5/4/06
                                    3,750      $3.15            5/4/01             8/4/01             8/4/06
Wells, John                        20,000      $3.70            5/3/01             5/4/01             5/4/06
                                   12,500      $3.70            5/3/01             8/4/01             8/4/06
                                   12,500      $3.70            5/3/01            11/4/01            11/4/06
                                   12,500      $3.70            5/3/01             2/4/02             2/4/07
                                   12,500      $3.70            5/3/01             5/4/02             5/4/07
                                   12,500      $3.70            5/3/01             8/4/02             8/4/07
                                   12,500      $3.70            5/3/01            11/4/02            11/4/07
                                   12,500      $3.70            5/3/01             2/4/03             2/4/08
                                   12,500      $3.70            5/3/01             5/4/03             5/4/08
Decker, Mike                       50,000      $3.15            7/2/01             7/2/01             7/2/06
                                   50,000      $3.15            7/2/01             7/2/01             7/2/06
                                   25,000      $3.15            7/2/01            10/2/01            10/2/06
                                   25,000      $3.15            7/2/01             1/2/02             1/2/07
                                   25,000      $3.15            7/2/01             4/2/02             4/2/07
                                   25,000      $3.15            7/2/01             7/2/02             7/2/07
                                   25,000      $3.15            7/2/01            10/2/02            10/2/07
                                   25,000      $3.15            7/2/01             1/2/03             1/2/08
                                   25,000      $3.15            7/2/01             4/2/03             4/2/08
                                   25,000      $3.15            7/2/01             7/2/03             7/2/08
                                  114,000      $2.00           12/31/01           12/31/01           12/31/11
Pek, Gregory                       50,000      $1.80           8/29/01            8/29/01            8/29/11
Bruner, Marc                    1,025,000      $2.00           12/31/01           12/31/01           12/31/11

</TABLE>

                                       6
<PAGE>EXHIBIT 10.1

 

PARTICLE DRILLING TECHNOLOGIES, INC.

 

SECURITIES PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of February 9,
2005, is by and among PARTICLE DRILLING
TECHNOLOGIES, INC., a Nevada corporation (formerly known as MedXLink
Corp.) (the “Company”), and each of the investors listed on Schedule I
hereto (each of the persons or entities listed on Schedule I,
individually, a “Purchaser” and, collectively, the “Purchasers”).

 

WHEREAS,
the Company desires to issue and sell to the Purchasers, and the Purchasers
desire to purchase from the Company, severally and not jointly, an aggregate of
9,000,000 shares (the “Shares”) of the authorized but unissued shares of
the Company’s common stock, $0.001 par value per share (including any
securities into which or for which such shares may be exchanged for, or
converted into, pursuant to any stock dividend, stock split, stock combination,
recapitalization, reclassification, reorganization or other similar event, the “Common
Stock”), at an aggregate purchase price of 
$18,000,000, all upon the terms and subject to the conditions set forth
in this Agreement; and

 

WHEREAS,
simultaneously with entering into this Agreement, the Company and the
Purchasers are entering into that certain Registration Rights Agreement, dated
as of the date hereof (the “Registration Rights Agreement”), pursuant to
which the Company will assume obligations with respect to the registration of
the Shares and the Warrant Shares (as defined below) on the terms set forth
therein.

 

NOW
THEREFORE, in consideration of the mutual agreements, representations,
warranties and covenants herein contained, the parties hereto agree as follows:

 

1                                          Definitions;
Certain Rules of Construction.  As used in this Agreement, the following
terms shall have the following respective meanings:

 

“Affiliate” means, with respect to any Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. 
For the purposes of this Agreement, “control,” when used with respect to
any specified Person means the power to direct or cause the direction of the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Board” means the board of directors
of the Company.

 

“business day” (whether such term is capitalized or not)
means any day except Saturday, Sunday and any day which shall be a federal
legal holiday or a day on which banking institutions in the State of New York
or the State of Texas are authorized or required by law or other governmental
action to close.

 

“Closing Date” means the date hereof.

 

“Code” means the Internal Revenue Code
of 1986.

 

“Environmental Protection Laws” means
any law, statute or regulation enacted by any jurisdiction in connection with
or relating to the protection or regulation of the environment, including,
without limitation, those laws, statutes and regulations regulating the
disposal, removal, production, storing, refining, handling, transferring,
processing or transporting of hazardous or toxic substances, and 

 

1

 

any orders, decrees or judgments issued by any court of competent
jurisdiction in connection with any of the foregoing.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974.

 

“ERISA Affiliate” means any Person
required to be aggregated with the Company or any Subsidiary of the Company
under Sections 414(b), (c), (m) or (o) of the Code.

 

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

 

“Exchange Act Reports” means the Company’s reports filed with
the SEC pursuant to Section 13 of the Exchange Act at any time on or after
February 9, 2003.

 

“Governmental Authority” means any
nation or government, any state or other political subdivision thereof and any
entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

 

“Indebtedness” means, as applied to any Person, all indebtedness for borrowed money,
whether current or funded, or secured or unsecured.

 

“Lien” means, with respect to any
property or asset, any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind in respect of such property or asset, whether or not
filed, recorded or otherwise perfected under applicable law, other than (a) those
resulting from taxes which have not yet become delinquent, (b) minor liens and
encumbrances that do not materially detract from the value of the property or
materially impair the operations of the Company or materially interfere with
the use of such property or asset or (c) those relating to Indebtedness
incurred prior to the date hereof and any replacement thereof.

 

“Majority Purchasers” means Purchasers
holding, at any time, a majority of the outstanding Shares purchased hereunder
on such date.

 

“Margin Stock” is defined in
Regulation U of the Board of Governors of the Federal Reserve System.

 

“Material Adverse Effect” means a
material adverse effect on the business, assets, liabilities (contingent or
otherwise), properties, operations, prospects or condition (financial or
otherwise) of the Company and its Subsidiaries taken as a whole or a material
adverse effect on the Company’s ability to perform in any material respect on a
timely basis its obligations under this Agreement or the Transaction Documents.

 

“Offering Memorandum” means the Private Placement Memorandum of
the Company, dated as of February 8, 2005.

 

“PBGC” means the Pension Benefit
Guaranty Corporation.

 

“PDTI” means Particle Drilling
Technologies, Inc., a Delaware corporation and Subsidiary of the Company.

 

2

 

“Person” (whether or not capitalized)
means an individual, entity, partnership, limited liability company,
corporation, association, trust, joint venture, unincorporated organization,
and any Governmental Authority.

 

“Plan” means any employee benefit
plan, program or arrangement, whether oral or written, maintained or
contributed to by the Company, any Subsidiary of the Company or any ERISA
Affiliate, or with respect to which the Company, any Subsidiary of the Company
or any ERISA Affiliate may incur liability.

 

“Registration Statements” means the
Company’s registration statements filed with the SEC pursuant to the Securities
Act at any time on or after February 9, 2003.

 

“Rule 144” means Rule 144 promulgated
under the Securities Act and any successor or substitute rule, law or
provision.

 

“SEC” means the United States
Securities and Exchange Commission.

 

“SEC Reports” means the Exchange Act
Reports and the Registration Statements filed with the SEC at any time on or
after February 9, 2003.

 

“Securities Act” means the Securities
Act of 1933, as amended, and all of the rules and regulations promulgated
thereunder.

 

“Series A Convertible Preferred Stock”
means the Series A Convertible Preferred Stock of PDTI, par value $0.0001 per
share.

 

“Subsidiary” means with respect to any
Person at any time, (a) any other Person the accounts of which would be
consolidated with those of such first Person in its consolidated financial
statements as of such time, and (b) any other Person (i) which is, at such
time, controlled by, or (ii) capital securities of which having ordinary voting
power to elect a majority of the board of directors (or other persons having
similar functions), or other ownership interest of which ordinarily
constituting a majority voting interest, are at such time, directly or
indirectly, owned or controlled by, in the case of each of clauses (i) and
(ii), such first Person or one or more of its Subsidiaries or by such first
Person and one or more of its Subsidiaries. 
Unless otherwise expressly provided, all references herein to “Subsidiary”
means a Subsidiary of the Company.

 

“Transaction Documents” means,
collectively, the Registration Rights Agreement and the Warrants.

 

“Transfer  Agent  Instruction
Letter” means the letter, dated as of the Closing Date, from the Company
to its transfer agent in the form attached hereto as Exhibit  G.

 

“Warrant Shares” means the shares of
Common Stock issued or issuable upon the exercise of the Warrants.

 

“in writing” means any form of written communication or a
communication by means of facsimile transmission.

 

The following table sets forth certain other
defined terms and the section of this Agreement in which the meaning of
each such term appears:

 

3

 

	
   

  	
   

  	
  Section(s)

  
	
  “Aggregate Purchase Price”

  	
   

  	
  2.1

  
	
  “Agreement”

  	
   

  	
  Preamble

  
	
  “Closing”

  	
   

  	
  2.2

  
	
  “Common Stock”

  	
   

  	
  Preamble

  
	
  “Company”

  	
   

  	
  Preamble

  
	
  “DGCL”

  	
   

  	
  3.34

  
	
  “Disclosure Schedules”

  	
   

  	
  3

  
	
  “Intellectual Property”

  	
   

  	
  3.27

  
	
  “Losses”

  	
   

  	
  7.1

  
	
  “Number of Warrant Shares”

  	
   

  	
  2.3

  
	
  “Permits”

  	
   

  	
  3.20

  
	
  “Purchase Price Per Share”

  	
   

  	
  2.1

  
	
  “Purchaser”

  	
   

  	
  Preamble

  
	
  “Purchaser  Indemnitee”

  	
   

  	
  7.1

  
	
  “Registration Rights Agreement”

  	
   

  	
  Preamble

  
	
  “Sarbanes-Oxley Act” 

  	
   

  	
  3.21

  
	
  “Securities Laws Exemption”

  	
   

  	
  3.32

  
	
  “Shares”

  	
   

  	
  Preamble

  
	
  “Warrant(s)”

  	
   

  	
  2.3

  
	
  “8-K Filing”

  	
   

  	
  6.3

  

 

2                                          Purchase and Sale of Shares.

 

2.1                                           Purchase and Sale. Subject to and upon the terms and
conditions set forth in this Agreement, the Company agrees to issue and sell to
each Purchaser, and each Purchaser hereby agrees, severally and not jointly, to
purchase from the Company, at the Closing, the number of Shares set forth
opposite such Purchaser’s name on Schedule I hereto, at a purchase
price equal to $2.00 per share (the “Purchase  Price Per  Share”).
The aggregate purchase price payable by the Purchasers to the Company for all
of the Shares shall be $18,000,000 (the “Aggregate Purchase Price”).

 

2.2                                           Closing. The closing of the transactions contemplated under
this Agreement (the “Closing”) shall take place at 5:00 pm (Eastern
Time) at the offices of Vinson & Elkins L.L.P., Houston, Texas, on the
Closing Date, or on such other date and at such time as may be agreed upon
between the Purchasers, on the one hand, and the Company, on the other hand.  At the Closing, the Company shall deliver to
each Purchaser a single stock certificate, registered in the name of such
Purchaser, representing the number of Shares purchased by such Purchaser,
against payment by such Purchaser of its respective aggregate Purchase Price
Per Share by wire transfer of immediately available funds to such account as
the Company shall designate in advance in writing, which stock certificate
shall bear the legend set forth in Section 6.2(a).  The stock certificates delivered to the
Purchasers and representing the Shares will be registered in the names and
addresses of the Purchasers set forth on Schedule I hereto.

 

4

 

2.3                                           Issuance of Common Stock Purchase
Warrants at Closing.  Subject to and upon the terms and conditions
set forth in this Agreement, the Company agrees to issue to each Purchaser, at
the Closing, a Common Stock Purchase Warrant, substantially in the form
attached as Exhibit  A hereto (each individually, a “Warrant”
and, collectively with all Common Stock Purchase Warrants issued pursuant to
this Section 2.3 to the other Purchasers, the “Warrants”),
exercisable for the number of shares of Common Stock set forth opposite the
name of such Purchaser under the heading “Number of Warrant Shares” on Schedule I
hereto, at an exercise price equal to the Purchase Price Per Share.  No additional consideration shall be payable
by any Purchaser in respect of the issuance by the Company of such Purchaser’s
Warrant at the Closing.

 

3                                          Representations and Warranties of the
Company. In order
to induce the Purchasers to enter into this Agreement and to purchase the
Shares, except as set forth in the corresponding sections of the Disclosure
Schedules delivered concurrently herewith (the “Disclosure Schedules”),
the Company hereby makes the following representations and warranties as of the
Closing Date, all of which shall survive the execution and delivery of this
Agreement and the purchase of the Shares:

 

3.1                                           Corporate Status. 
Each of the Company and its Subsidiaries (a) is duly incorporated,
validly existing and in good standing under the laws of the jurisdiction of its
organization and has the corporate power and authority to own its property and
assets and to transact the business in which it is engaged and presently
proposes to engage and (b) has been duly qualified to do business and is in
good standing in each jurisdiction where it is required to be so qualified and
where the failure to be so qualified would reasonably be expected to have a
Material Adverse Effect.  Neither the
Company nor any of its Subsidiaries is currently in violation of any of the
provisions of its Certificate of Incorporation (or other charter document) or
By-laws, each as amended to date.

 

3.2                                           Corporate Power and Authority. 
All corporate action on the part of the Company, its officers, directors
and shareholders necessary for the authorization, execution, delivery and
performance of this Agreement and the Transaction Documents and the
consummation of the transactions contemplated herein and therein has been
taken. When executed and delivered by the Company, this Agreement and each of
the Transaction Documents shall constitute the legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, except as such may be limited by bankruptcy, insolvency,
reorganization or other laws affecting creditors’ rights generally and by
general equitable principles. The Company has all requisite corporate power and
authority to enter into this Agreement and the Transaction Documents and to
carry out and perform its obligations under the terms hereof and thereof.

 

3.3                                           No Violation. 
Neither the execution, delivery and performance by the Company of this
Agreement and the Transaction Documents nor compliance with the terms and
provisions hereof and thereof (a) will contravene any applicable provision of
any law, statute, rule, regulation, order, writ, injunction or decree of any
court or Governmental Authority, except as would not have a Material Adverse
Effect, (b) will conflict with or result in any breach of, any of the material
terms, covenants, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of (or the obligation to create or
impose) any Lien upon any of the property or assets of the Company or any
Subsidiary pursuant to the terms of, any indenture, mortgage, deed of trust,
agreement or other instrument to which the Company or any of its Subsidiaries
is a party or by which it or any of its or their property or assets are bound
or to which it may be subject or result in the acceleration of any material
obligation of the Company or any Subsidiary, except as would not have a
Material Adverse Effect or (c) will violate any provision of the Certificate of
Incorporation or By-laws of the Company or any of its Subsidiaries, each as
amended to date.

 

5

 

3.4                                           Capitalization.

 

(a)                                  Section 3.4(a) of the Disclosure
Schedules sets forth the number of authorized, issued and outstanding shares of
capital stock of the Company, and outstanding warrants, options or other rights
to purchase capital stock of the Company (i) as of the date hereof and (ii) as
of the date hereof pro forma to give effect to the sale of the Shares and
Warrants hereunder.  As of the date
hereof, the authorized capital stock of the Company consists of 100,000,000
shares of Common Stock, of which 14,866,556 shares are issued and outstanding.  As of the date hereof, 4,033,000 shares of
Common Stock were reserved for future issuance pursuant to outstanding options
and warrants issued by the Company and 3,381,538 shares of Common Stock were
reserved for issuance upon conversion of the Series A Convertible Preferred
Stock.

 

(b)                                 Section 3.4(b) of the Disclosure
Schedules sets forth the number of authorized, issued and outstanding shares of
capital stock of each Subsidiary of the Company, and outstanding warrants,
options or other rights to purchase capital stock of each Subsidiary of the
Company as of the date hereof.  As of the
date hereof, the authorized capital stock of the only Subsidiary of the Company
consists of 50,000,000 shares of common stock, of which 50,000,000 shares are
issued and outstanding and all of which are owned by the Company, and 20,000,000
shares of preferred stock, of which 10,000,000 shares have been designated as
Series A Convertible Preferred Stock.  As
of the date hereof, 3,381,538 shares of Series A Convertible Preferred Stock
are issued and outstanding.  As of the
date hereof, no shares of capital stock of any Subsidiary were reserved for
future issuance pursuant to outstanding options, warrants or other rights to
acquire shares of capital stock of any Subsidiary issued by any Subsidiary of
the Company.

 

(c)                                  As of the date hereof, except as set
forth above in (a) and (b), and for the exercise rights of the Warrants, there
are no other outstanding options, warrants, rights (including conversion or
preemptive rights) or any agreement for the purchase or acquisition from the
Company or any Subsidiary of any shares of the Company’s or any Subsidiary’s
capital stock or voting agreements with respect to equity of the Company or any
Subsidiary. All shares of the capital stock of the Company and its Subsidiaries
subject to issuance as aforesaid, upon issuance on the terms and conditions
specified in the instruments pursuant to which they are issuable, shall, to the
knowledge of the Company after due inquiry, be duly authorized, validly issued,
fully paid and nonassessable. Except as disclosed in Section 3.4(c) of the
Disclosure Schedules or in the SEC Report or as set forth above in (a) and (b),
there are no obligations, contingent or otherwise, of the Company or any
Subsidiary to repurchase, redeem or otherwise acquire any shares of Common Stock
or other equity securities of the Company or any Subsidiary or to provide funds
to or make any investment (in the form of a loan, capital contribution,
guaranty or otherwise) in any other entity. 
The sale of the Shares and the issuance of the Warrants under this
Agreement, and the issuance of any Warrant Shares upon exercise of the Warrants
in their current form, will not result in the Company or any Subsidiary being
obligated to issue, sell or purchase, pursuant to any existing pre-emptive,
anti-dilution, redemption or other right of third parties, shares of Common
Stock or other securities to or from any Person (other than the Purchasers),
and will not result in a right of any holder of convertible or contingent
securities issued by the Company or any Subsidiary to adjust the exercise,
conversion, exchange or reset price under such securities, including, in any
such case, pursuant to any “poison pill” or shareholders rights plan.  To the knowledge of the Company after due
inquiry, none of the outstanding shares of capital stock of the Company or any
Subsidiary were issued in violation of the Securities Act or any state
securities laws.

 

3.5                                           Valid Issuance of the Shares. The Shares, the Warrants and the
Warrant Shares have been duly authorized, and the Shares and the Warrant
Shares, upon issuance pursuant to the terms hereof and the terms of the
Warrants, respectively, (a) will be validly issued, fully paid and
nonassessable, (b) will not be subject to any encumbrances, preemptive rights
or any other similar contractual rights of the stockholders of the Company or
any other Person, and (c) the applicable Purchaser (with respect to the Shares)
and the applicable Holder (as defined in the Warrant) will obtain sole record
and beneficial 

 

6

 

ownership
of such Shares and Warrant Shares (as applicable) and take good marketable
title thereto, free and clear of any Liens (defined for purposes hereof without
regard to the carve-outs set forth in clauses (a) through (c) of the definition
of Lien), claims, charges, taxes, options or transfer restrictions of any kind,
other than those transfer restrictions explicitly set forth in this Agreement
and in the Warrants. The Company has reserved from its duly authorized capital
stock the number of shares of Common Stock issuable upon execution of this
Agreement and upon exercise in full of the Warrants (assuming the Warrants vest
in full).

 

3.6                                           Litigation.  Except as
disclosed in the SEC Reports, no actions, suits, claims, investigations or
proceedings are pending or, to the Company’s knowledge, threatened that could
reasonably be expected to have, individually or in the aggregate (a) a Material
Adverse Effect or (b) an adverse effect on the rights or remedies of the
Purchasers or on the ability of the Company or its Subsidiaries to perform when
due to be performed their respective obligations under this Agreement or the
Transaction Documents.  Except as
disclosed in Section 3.6 of the Disclosure Schedules or the SEC Reports,
neither the Company nor any Subsidiary is a party to or named in or subject to
any order, writ, injunction, judgment or decree of any court or Governmental
Authority. Except as disclosed in Section 3.6 of the Disclosure Schedules
or the SEC Reports, there is no action, suit, claim, proceeding or
investigation by the Company or any Subsidiary currently pending or that the
Company or any Subsidiary currently intends to initiate.

 

3.7                                           Approvals.  Assuming the
accuracy of the Purchasers’ representations and warranties set forth in Section 4
below and in the Investor Questionnaire executed and delivered by each
Purchaser to the Company, such Investor Questionnaire in the form attached
hereto as Exhibit B, except for (a) any required filings and recordings which
have been made and are in full force and effect, (b) the filing of a
registration statement with the SEC pursuant to the Registration Rights
Agreement and (c) applicable blue sky notice filings or a Form D to be timely
filed with the SEC, no order, consent, approval, license, authorization or
validation of, or filing, recording or registration with, or exemption by, any
Person or Governmental Authority, is required to authorize or is required for
or as a condition to (i) the execution, delivery and performance of this
Agreement or the Transaction Documents or (ii) the legality, validity, binding
effect or enforceability of this Agreement or the Transaction Documents.  The execution and delivery by the Company of
this Agreement and the Transaction Documents, the consummation of the
transactions contemplated herein and therein, and the issuance of the Shares
and the Warrants and, upon exercise of the Warrants, the Warrant Shares, do not
require the consent or approval of the stockholders of the Company or any other
Person.

 

3.8                                           Contracts.  All material
agreements to which the Company or any Subsidiary is a party or to which the
property or assets of the Company or any Subsidiary are subject are included as
part of or specifically identified in the SEC Reports to the extent required by
the rules and regulations of the SEC as in effect at the time of filing of such
SEC Reports.  All such material
agreements required to be filed as exhibits to the SEC Reports are legal, valid
and binding obligations of the Company in accordance with their respective
terms and, to the knowledge of the Company, the other parties thereto, except
in any case as may be limited by bankruptcy, insolvency, reorganization or
other laws affecting creditors’ rights generally and by general equitable
principles.  The Company and its
Subsidiaries are not, nor to their knowledge is any counterparty, in violation
of or default under, any agreement to which any of them is a party, except as
would not reasonably be expected to have a Material Adverse Effect.

 

3.9                                           Conformity to Securities Act and Exchange
Act; No Misstatement or Omission.  To the
knowledge of the Company after due inquiry, each of the SEC Reports as of the
date it was filed with the SEC in the case of filings under the Exchange Act or
declared effective in the case of the Registration Statements, complied in all
material respects with the applicable requirements of the Securities Act or the
Exchange Act (as applicable) and the respective rules and regulations of the
SEC 

 

7

 

thereunder
and did not contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein not
misleading.  To the knowledge of the
Company after due inquiry, the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant
to the reporting requirements of the Exchange Act at any time on or after February 9,
2003.

 

3.10                                     Financial Statements; Indebtedness.

 

(a)                                  The financial statements and supporting
schedules of PDTI, for the year ended September 30, 2004, and to be filed
in an SEC Report within one business day following the Closing Date, are
complete and correct and present fairly in all material respects the
consolidated financial position of PDTI as of the dates specified and the
consolidated results of their operations and cash flows for the periods
specified, in each case, in conformity with generally accepted accounting
principles applied on a consistent basis during the periods involved, except as
indicated therein or in the notes thereto.

 

(b)                                 Except as set forth in Section 3.10(b)
of the Disclosure Schedules, the Company and its Subsidiaries have no
Indebtedness outstanding at the date hereof. 
Except as set forth in Section 3.10(b) of the Disclosure Schedules,
none of the Company and its Subsidiaries is in default with respect to any
outstanding Indebtedness or any instrument relating thereto, and no event has
occurred, or facts and circumstances exist, which, after passage of time, would
result in such a default.

 

3.11                                     Margin Regulations.  Neither the sale of the Shares
and Warrants, nor the use of the proceeds thereof, will violate Regulation T, U
or X of the Board of Governors of the Federal Reserve System.

 

3.12                                     Investment Company Act. 
The Company is not an “investment company” or a company “controlled” by
an “investment company,” within the meaning of the Investment Company Act of
1940.

 

3.13                                     Public Utility Holding Company Act. 
The Company is not a “holding company,” or a “subsidiary company” of a “holding
company,” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935.

 

3.14                                     No Material Adverse Changes. 
Since September 30, 2004, except as described in the SEC Reports or
otherwise set forth in Section 3.14 of the Disclosure Schedules, (a) no
event has occurred which has had, or could reasonably be expected to have, a
Material Adverse Effect; (b) except as contemplated by this Agreement, there
has been no transaction entered into by the Company or any of its Subsidiaries
other than transactions in the ordinary course of business or transactions
which would not, individually or in the aggregate, be material to the Company;
(c) there have not been any changes in the Company’s or any Subsidiary’s
authorized capital or any increases in the Indebtedness of the Company and its
Subsidiaries taken as a whole; (d) there has been no actual or, to the
knowledge of the Company, threatened revocation of, or default under, any
contract to which the Company or any of its Subsidiaries is a party, except as
would not have a Material Adverse Effect; (e) there have not been any
amendments or changes in the charter documents or by-laws of the Company or the
Subsidiaries; (f) there have not been any entry into, amendment of,
relinquishment, termination or non-renewal by the Company or the Subsidiaries
of any material contract, license, lease, transaction, commitment or other
right or obligation, other than in the ordinary course of business, consistent
with past practice; and (g) there has not been any transfer or grant of a right
with respect to the Intellectual Property owned or licensed by the Company or
the Subsidiaries, except as among the Company and the Subsidiaries.

 

8

 

3.15                                     Tax Returns and Payments. 
Except as set forth in Section 3.15 of the Disclosure Schedules,
each of the Company and each of its Subsidiaries has filed all federal income
tax returns and all other domestic and foreign tax returns and reports required
to be filed by it and has paid all taxes and assessments payable by it which
have become due, except for those contested in good faith and adequately
reserved against (in the good faith determination of the Company), all of
which, to the extent outstanding on the Closing Date, have been disclosed by
the Company in the SEC Reports.  All such
returns and reports are true and correct in all material respects. Each of the
Company and each of its Subsidiaries has paid, or has provided adequate
reserves (in the good faith judgment of the Company) for the payment of, all
material federal, state and foreign taxes that are not yet due and payable for
all fiscal years, including the current fiscal year, to date.  No action, suit, proceeding, investigation,
audit or claim is now pending or, to the knowledge of the Company or its
Subsidiaries, threatened by any authority regarding any taxes relating to the
Company or any of its Subsidiaries which could reasonably be expected to have a
Material Adverse Effect.  As of the
Closing Date, neither the Company nor any of its Subsidiaries has entered into
an agreement or waiver or been requested to enter into an agreement or waiver
extending any statute of limitations relating to the payment or collection of
taxes of the Company or any of its Subsidiaries.  No tax return of the Company or any of its
Subsidiaries is or has been the subject of an audit or examination by any
taxing authority, other than any such audit or examination which has been
completed or closed.  Each of the Company
and its Subsidiaries has withheld from each payment made to any of its past or
present employees, officers and directors, and any other Person, the amount of
all material taxes and other deductions required to be withheld therefrom and
paid the same to the proper taxing authority within the time required by law.

 

3.16                                     Subsidiaries. 
As of the Closing Date, the Company has no directly or indirectly held
Subsidiary other than PDTI.  Each of the
Company and each Subsidiary has good and marketable title to all of the shares
it purports to own of the stock of each Subsidiary, free and clear in each case
of any Lien (defined for purposes hereof without regard to the carve-outs
contained in (a) to (c) of the definition of Lien).  All such shares have been duly authorized,
validly issued and are fully paid and nonassessable.  As of the Closing Date, the Company is not
party to any joint venture or similar arrangement.

 

3.17                                     Properties.  The Company
and each of its Subsidiaries owns its properties and assets free and clear of
all Liens.  With respect to leased
property and assets, the Company and its Subsidiaries are in compliance with
such leases and hold a valid leasehold interest, free and clear of any Liens.

 

3.18                                     Labor Relations. 
The Company and its Subsidiaries are not engaging in any unfair labor
practice.  No unfair labor practice
complaint is pending against the Company or any of its Subsidiaries or, to the
best of its knowledge, threatened against it or any of its Subsidiaries, before
the National Labor Relations Board or similar foreign labor relations
authority, and no grievance or arbitration proceeding arising out of or under
any collective bargaining agreement is so pending against the Company or any of
its Subsidiaries, or, to the best of its knowledge, threatened against it or
any of its Subsidiaries.  No strike,
labor dispute, slowdown or stoppage is pending against the Company or any of
its Subsidiaries or, to the best of its knowledge, threatened against the
Company or any of it Subsidiaries.  No
union representation question exists with respect to the employees of the
Company or any of its Subsidiaries and no union organizing activities are
taking place.  The Company and its
Subsidiaries have complied in all material respects with all applicable state
and federal equal opportunity and other laws related to employment. To the
Company’s knowledge, no employee of the Company or any Subsidiary is or will be
in violation of any judgment, decree, or order, or any term of any employment
contract, patent disclosure agreement, or other contract or agreement relating
to the relationship of any such employee with the Company or any Subsidiary, or
any other party because of the nature of the business presently conducted or
presently proposed to be conducted by the Company and its Subsidiaries. The
Company is 

 

9

 

not
aware that any officer or key employee, or that any group of key employees,
intends to terminate their employment with the Company or any Subsidiary, nor
does the Company or any Subsidiary have a present intention to terminate the
employment of any of the foregoing. Subject to general principles related to
wrongful termination of employees, the employment of each officer and employee
of the Company and its Subsidiaries is terminable at the will of the Company or
the applicable Subsidiary.

 

3.19                                     Compliance with Law. 
The conduct of the Company’s business complies with all applicable U.S.,
state, local and foreign laws, ordinances, rules, regulations, and orders,
except where the failure to so comply would not reasonably be expected to have
a Material Adverse Effect.

 

3.20                                     Permits. The Company and its Subsidiaries have all
franchises, permits, licenses, certificates, registrations and any similar
authority (the “Permits”) necessary or material for the conduct of their
business as described in the SEC Reports, the lack of which could, individually
or in the aggregate, reasonably be expected to have a Material Adverse
Effect.  As of the date hereof, no
suspension or cancellation of any of the Permits is pending or, to the
knowledge of the Company, threatened which could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.  The Company believes it can obtain, without
undue burden or expense, any similar authority for the conduct of its business
as presently proposed to be conducted. The Company and its Subsidiaries are not
in default under any of such franchises, permits, licenses or other similar
authorities.

 

3.21                                     ERISA.  Neither the
Company, any Subsidiary of the Company nor any ERISA Affiliate maintains or
contributes to any Plan other than those listed in Section 3.21 of the
Disclosure Schedules.

 

(a)                                  Compliance with ERISA. 
The Company and each ERISA Affiliate is in compliance with ERISA, except
for such failures to comply that, in the aggregate for all such failures, would
not reasonably be expected to have a Material Adverse Effect and no  contributions required to be made by the
Company or any ERISA Affiliate to any pension plan are overdue.

 

(b)                                 PBGC. No liability to the PBGC has been or is expected to
be incurred by the Company or any ERISA Affiliate with respect to any pension
plan that, individually or in the aggregate, would reasonably be expected to
have a Material Adverse Effect.  No
circumstance exists that constitutes grounds under section 4042 of ERISA
entitling the PBGC to institute proceedings to terminate, or appoint a trustee
to administer, any pension plan or trust created thereunder, nor has the PBGC
instituted any such proceeding.

 

(c)                                  Multiemployer Plans. 
Neither the Company nor any ERISA Affiliate has incurred or presently
expects to incur any withdrawal liability under Title IV of ERISA with respect
to any multiemployer plan except for such withdrawal liability that, in the
aggregate of all such liabilities, would not reasonably be expected to have a
Material Adverse Effect.  There have been
no “reportable events” (as such term is defined in section 4043 of ERISA)
with respect to any multiemployer plan that could result in the termination of
such multiemployer plan and give rise to a liability of the Company or any
ERISA Affiliate in respect thereof except for such “reportable events” that, in
the aggregate for all such “reportable events,” would not reasonably be
expected to have a Material Adverse Effect. 
Neither the Company nor any Subsidiary has incurred or does it expect to
incur liability under Sections 412 or 4971 of the Code, including the
regulations and published interpretations thereunder; and each “pension plan”
for which the Company would have any liability that is intended to be qualified
under Section 401(a) of the Code has been determined by the Internal
Revenue Service to be so qualified and nothing has occurred, whether by action
or by failure to act, which could reasonably be expected to cause the loss of
such qualification.

 

10

 

3.22                                     No Undisclosed Liabilities.  There are no material liabilities of the Company
or any Subsidiary, other than liabilities incurred in the ordinary course of
business consistent with past practice since September 30, 2004 or which
in the aggregate would not reasonably be expected to result in a Material
Adverse Effect.

 

3.23                                     Insurance.  The Company maintains insurance of
the types and in the amounts and covering such risks as is prudent and adequate
for its business as currently conducted and for the value of its properties as
is customary for companies engaged in similar lines of business in similar
industries, all of which insurance is in full force and effect.  Neither the Company nor any Subsidiary has (i)
received notice from any insurer or agent of such insurer that capital
improvements or other expenditures are required or necessary to be made in
order to continue such insurance or (ii) any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage at reasonable cost from similar insurers
as may be necessary to continue its business.

 

3.24                                     Accounts Receivable.  The accounts and notes receivable of PDTI
reflected on its balance sheet as of September 30, 2004, and all accounts
and notes receivable of PDTI arising subsequent to September 30, 2004, (i)
arose from bona fide sales transactions in the ordinary course of business
consistent with past practice and are payable on ordinary trade terms, (ii) to
the knowledge of the Company and each Subsidiary, are legal, valid and binding
obligations of the respective debtors enforceable in accordance with their
respective terms, (iii) to the knowledge of the Company and each Subsidiary,
are not subject to any valid set-off or counterclaim, and (iv) are not the
subject of any actions or proceedings brought by or on behalf of the Company or
any Subsidiary.

 

3.25                                     Brokers.  Except as
disclosed in Section 3.25 of the Disclosure Schedules, neither the Company
nor any Subsidiary has any liability to pay any fees, commissions or other
similar compensation to any broker, finder, investment banker, financial
advisor or other similar Person in connection with the transactions
contemplated by this Agreement.

 

3.26                                     Leases.  Each of the
Company and its Subsidiaries has complied with all material obligations under
all leases for real property to which it is a party as a lessee.  All leases relating to the leasehold estates
of each of the Company and its Subsidiaries necessary for the conduct of the
business of such Person are, with respect to the Company and its Subsidiaries,
valid and enforceable, and, to the knowledge of the Company, are, valid and
enforceable with respect to the lessor, and each of the Company and its
Subsidiaries that is the lessee in respect thereof currently enjoys peaceful
and undisturbed possession of the premises subject thereto. 

 

3.27                                     Intellectual Property. 
Each of the Company and the Subsidiaries owns, possesses or has the
right to use all of the patents, trademarks, service marks, trade names,
copyrights, franchises and licenses, and rights with respect thereto
(collectively, “Intellectual Property”), necessary for the conduct of
its business as described in the SEC Reports and as such business is proposed
to be conducted as described in the SEC Reports, without any infringement of
the rights of others.  None of the
Company’s Intellectual Property has expired or terminated, or is expected to
expire or terminate within 3 years from the date of this Agreement.  There are no outstanding options, licenses,
or agreements of any kind relating to the Company’s and/or its Subsidiaries’
Intellectual Property with the exception of agreements for the sale or license
of the Company’s products or services in the ordinary course of business. The
Company has not received any communications alleging that the Company or any
Subsidiary has violated or infringed or, by conducting its business as
presently proposed, would violate or infringe any of the Intellectual Property
of any other Person.  Except as disclosed
in the SEC Reports, there is no claim, action or proceeding being made or
brought, or to the knowledge of the Company, being threatened, against the
Company or its Subsidiaries regarding its Intellectual Property.  The Company is unaware of any facts or
circumstances which might give rise to any of the foregoing 

 

11

 

infringements
or claims, actions or proceedings.  To
date the only patents which have issued and are now owned in all right, title
and interest by the Company are United States Patents Nos. 6,386,300 and
6,581,700, which United States patents are valid under United States
patent laws.

 

3.28                                     Environmental Compliance.

 

(a)                                  Compliance.  Each of the
Company and its Subsidiaries is in compliance with all Environmental Protection
Laws in effect in each jurisdiction where it is currently doing business and no
material expenditures will be required in order to comply with any
Environmental Protection Law.

 

(b)                                 Liability.  Neither the
Company nor any Subsidiary is subject to any liability under any Environmental
Protection Law that, in the aggregate for all such liabilities, would
reasonably be expected to have a Material Adverse Effect.

 

(c)                                  Notices.  Neither the
Company nor any Subsidiary has received any

 

(i)  notice from any Governmental
Authority by which any of its currently or previously owned or leased
properties has been identified in any manner by any Governmental Authority as a
hazardous substance disposal or removal site, “Super Fund” clean-up site, or
candidate for removal or closure pursuant to any Environmental Protection Law,

 

(ii)  notice of any Lien arising
under or in connection with any Environmental Protection Law that has attached
to any revenues of, or to, any of its currently or previously owned or leased
properties, or

 

(iii) communication, written or oral, from any Governmental Authority
concerning any action or omission in connection with its currently or
previously owned or leased properties resulting in the release of any hazardous
substance resulting in any violation of any Environmental Protection Law,

 

in each case where the effect of which, in
the aggregate for all such notices and communications, would reasonably be
expected to have a Material Adverse Effect.

 

3.29                                     Registration Rights. 
Except as set forth on Section 3.29 of the Disclosure Schedules,
the Company is not currently subject to any agreement providing any Person any
rights (including piggyback registration rights) to have any securities of the
Company or any Subsidiary registered with the SEC or registered or qualified
with any other Governmental Authority. 
Except as set forth in Section 3.29 of the Disclosure Schedules, no
Person has, with respect to the Company or any Subsidiary, and the Company and
its Subsidiaries  will not grant to any
Person any registration rights (including demand and “piggyback” registration
rights) inconsistent with or superior to any of those contained in the
Registration Rights Agreement, so long as any of the registration rights under
the Registration Rights Agreement remain in effect.

 

3.30                                     Transactions with Affiliates and
Employees. Except
as disclosed in the SEC Reports, none of the officers, directors or employees
of the Company (or members of any such Person’s immediate family) is presently
a party to any transaction or agreement with the Company (other than for
services as employees, officers and directors entered into in the ordinary
course of business consistent with past practices) exceeding $60,000 in value,
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in
which any officer, director, or any such employee has a 

 

12

 

substantial
interest or is an officer, director, trustee or partner.  Except in connection with the Transaction
Documents or as disclosed in the SEC Reports or the Offering Memorandum, there
are no agreements, understandings or proposed transactions between the Company
or any Subsidiary, on the one hand, and any of its officers, affiliates or
directors, or any of their affiliates, on the other hand.

 

3.31                                     Sarbanes-Oxley Act; Internal Accounting
Controls. The
Company is in material compliance with all provisions of the Sarbanes-Oxley Act
of 2002 (the “Sarbanes-Oxley Act”) and any related rules and regulations
promulgated by the SEC, which are applicable to it as of the Closing Date.  The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with United States generally
accepted accounting principles and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or
specific authorizations, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences.   The Company and its Subsidiaries have
established and maintained disclosure controls and procedures (as such term is
defined in Rule 13a-14 and Rule l5d-14 under the Exchange Act); such disclosure
controls and procedures are designed to ensure that material information
relating to the Company and its Subsidiaries is made known to the Company’s
principal executive officer and its principal financial officer by others
within those entities, and such disclosure controls and procedures are
effective to perform the functions for which they were established; the Company’s
auditors and the audit committee of the board of directors of the Company have
been advised of: (i) any significant deficiencies in the design or operation of
internal controls which could adversely affect the Company’s or its
Subsidiaries’ ability to record, process, summarize, and report financial data;
and (ii) any fraud, whether or not material, that involves management or other
employees who have a role in the Company’s or its Subsidiaries’ internal
controls; any material weaknesses in internal controls have been identified for
the Company’s auditors; since the date of the most recent evaluation of such
disclosure controls and procedures, there have been no significant changes in
internal controls or in other factors that could significantly affect internal
controls, including any corrective actions with regard to significant
deficiencies and material weaknesses; the principal executive officer and
principal financial officer of the Company have made all certifications
required by the Sarbanes-Oxley Act and any related rules and regulations
promulgated by the SEC, and the statements contained in any such certification
are complete and correct; and the Company and its Subsidiaries are otherwise in
compliance with all applicable provisions of the Sarbanes-Oxley Act that are
effective.

 

3.32                                     Securities Laws. Subject to the accuracy of the
Purchasers’ representations and warranties set forth in Section 4 below
and an Investor Questionnaire executed and delivered by each Purchaser to the
Company, such Investor Questionnaire in the form attached hereto as Exhibit
B, the offer, sale and issuance of the Shares and the Warrants, and
issuance of Warrant Shares, as provided in this Agreement and the Warrants, is
and is intended to be (a) exempt from the registration requirements of the
Securities Act pursuant to Section 4(2) thereof and Regulation D
promulgated thereunder, and (b) exempt from registration or qualification
requirements of applicable state securities laws (together, the “Securities
Laws Exemptions”). Neither the Company or its Subsidiaries nor anyone
acting on its or their behalf has taken any action that would cause the loss of
such exemptions.

 

3.33                                     No Integrated Offering. 
Neither the Company, nor any Affiliate of the Company, nor any Person
acting on its or their behalf has, directly or indirectly, engaged in any form
of general solicitation or general advertising with respect to any security or
made any offers or sales of any security or solicited any offers to buy any
security, under circumstances that would cause the offering or issuance of the
Shares, the Warrants or any Warrant Shares pursuant to this Agreement and the
Transaction Documents to be integrated with prior offerings by the Company for
purposes of the Securities Act which 

 

13

 

would
cause the exemptions from SEC registration upon which the Company is relying
for the offering or issuance of the Shares, the Warrants or any Warrant Shares
pursuant to this Agreement to be unavailable, or would cause any applicable
state securities laws exemptions or any applicable stockholder approval
provisions exemptions, including, without limitation, under the rules and regulations
of any national securities exchange or automated quotation system on which any
of the securities of the Company are listed or designated to be unavailable,
nor will the Company take any action or steps that would cause the offering or
issuance of the Shares, the Warrants or any Warrant Shares pursuant to this
Agreement and the Transaction Documents to be integrated with other offerings.

 

3.34                                     Interested Stockholder.  To the knowledge of the Company, each
Purchaser is not an “interested stockholder” (as defined in Nevada Revised
Statute 78.423) of the Company as of the Closing Date, nor will a Purchaser be
deemed an “interested stockholder” as a result of the consummation of the
transactions contemplated herein, and the restrictions on “combinations” (as
defined in Nevada Revised Statute 78.416) set forth in Nevada Revised Statute
78.438 do not apply to the transactions contemplated hereby. The Board of
Directors of the Company has approved the issuance to each Purchaser of the
Warrant Shares issuable upon exercise of the Warrants, and the restrictions on “combinations”
set forth in Nevada Revised Statute 78.438 will not apply to any exercise of
the Warrants by a Purchaser.

 

3.35                                     Merger Agreement. The representations and
warranties provided by the parties to the Merger Agreement dated as of July 14,
2004, as amended, by and among MedXLink Corp., the Company, PDTI Acquisition
Corp., Dean Becker, ProDrill Partners LLC, and Thomas Hardisty, are true and
correct.

 

3.36                                     Application of Takeover Protections.  The
Company and the Board have taken all necessary action, if any, in order to
render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s charter documents or the laws of
its state of incorporation that is or could become applicable to the Purchasers
as a result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under this Agreement and the Transaction Documents,
including without limitation the Company’s issuance of the Shares and the
Purchasers’ ownership of the Shares.

 

3.37                                     Solvency. Based on the consolidated financial condition of the
Company and the Subsidiaries as of the date hereof, (i) the fair saleable value
of the Company’s assets exceeds the amount that will be required to be paid on
or in respect of the Company’s existing debts and other liabilities (including
known and contingent liabilities) as they mature; (ii) the Company’s assets do
not constitute unreasonably small capital to carry on its business for the
current fiscal year as now conducted and as proposed to be conducted, including
its capital needs taking into account the particular capital requirements of
the business conducted by the Company, projected capital requirements and
capital availability thereof; and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive were it to liquidate all
of its assets, after taking into account all anticipated uses of the cash,
would be sufficient to pay all amounts on or in respect of its debts when such
amounts are required to be paid. The Company has no present intention to incur
debts beyond its ability to pay such debts as they mature (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).

 

3.38                                     Disclosure. Neither this Agreement, the Registration Rights
Agreement, the Warrants, the Offering Memorandum, nor any other statements or
certificates made or delivered in connection herewith or therewith, when taken
as a whole, contains any untrue statement of a material fact 

 

14

 

or
omits to state a material fact necessary to make the statements contained
herein or therein not misleading in light of the circumstances under which they
were made.

 

4                                          Representations and Warranties of the
Purchasers. In
order to induce the Company to enter into this Agreement and to sell the Shares
and the Warrants, each Purchaser represents and warrants, severally (as to such
Purchaser only) and not jointly, as of the Closing Date:

 

4.1                                           Authorization. All corporate, partnership or limited
liability company action on the part of such Purchaser necessary for the
authorization, execution, delivery and performance of this Agreement and the
Registration Rights Agreement, and the consummation of the transactions
contemplated herein and therein, has been taken. When executed and delivered by
such Purchaser, each of this Agreement and the Registration Rights Agreement
will constitute the legal, valid and binding obligation of such Purchaser,
enforceable against such Purchaser in accordance with its terms, except as such
may be limited by bankruptcy, insolvency, reorganization or other laws
affecting creditors’ rights generally and by general equitable principles. Such
Purchaser has all requisite corporate, partnership or limited liability company
power and authority to enter into each of this Agreement and the Registration
Rights Agreement, and to carry out and perform its obligations under the terms
hereof and thereof.

 

4.2                                           Purchase Entirely for Own Account. Such Purchaser is acquiring the Shares
and the Warrants for its own account for investment and not for resale or with
a view to distribution thereof in violation of the Securities Act.

 

4.3                                           Investor Status; Etc. Such Purchaser certifies and represents
to the Company that (i) it is an “accredited investor” as defined in Rule 501
of Regulation D promulgated under the Securities Act and was not organized for
the purpose of acquiring any of the Shares or the Warrants and (ii) such
Purchaser’s Investor Questionnaire is complete and correct. Such Purchaser’s
financial condition is such that it is able to bear the risk of holding the
Shares for an indefinite period of time and the risk of loss of its entire
investment. Such Purchaser has sufficient knowledge and experience in investing
in companies similar to the Company so as to be able to evaluate the risks and
merits of its investment in the Company. 
Such Purchaser fully understands that the Shares, the Warrants and the
Warrant Shares are speculative investments which involve a high degree of risk
of loss of such Purchaser’s entire investment. No Person, other than the
Company, the placement agent or their authorized representatives, has offered
the Shares or the Warrants to such Purchaser.

 

4.4                                           Securities Not Registered. Such Purchaser understands that the
Shares, the Warrants and any Warrant Shares issued thereunder have not been
registered under the Securities Act, by reason of their issuance by the Company
in a transaction exempt from the registration requirements of the Securities
Act, and that the Shares, the Warrants and any Warrant Shares issued thereunder
must continue to be held by such Purchaser unless a subsequent disposition
thereof is registered under the Securities Act or is exempt from such
registration. Such Purchaser understands that the exemptions from registration
afforded by Rule 144 (the provisions of which are known to it) promulgated
under the Securities Act depend on the satisfaction of various conditions, and
that, if applicable, Rule 144 may afford the basis for sales only in limited
amounts. Such Purchaser understands that no federal or state agency has passed
upon or made any recommendation or endorsement of an investment in the Shares
or the Warrants.

 

4.5                                           No Violation. Neither the execution, delivery and
performance by such Purchaser of this Agreement and the Registration Rights
Agreement nor compliance with the terms and provisions hereof and thereof by
such Purchaser (a) will contravene any applicable provision of any law,
statute, rule, regulation, order, writ, injunction or decree of any court or
Governmental Authority, except as would not have a material adverse effect on
such Purchaser’s ability to consummate the transactions contemplated hereby; or
(b) will violate any provision of the organizational documents of such
Purchaser, 

 

15

 

except
as would not have a material adverse effect on such Purchaser’s ability to
consummate the transactions contemplated hereby.

 

4.6                                           Brokers. Such Purchaser has not retained, utilized or been
represented by any broker or finder in connection with the transactions
contemplated by this Agreement.

 

4.7                                           Consents. All consents, approvals, orders and authorizations
required on the part of such Purchaser in connection with the execution,
delivery or performance of this Agreement and the consummation of the
transactions contemplated herein have been obtained and are effective as of the
date hereof.

 

4.8                                           Disclosure of Information. Such Purchaser has relied on its own
examination of the Company, including the merits and risks involved in making
an investment decision with respect to the Common Stock.  Such Purchaser believes it has received all
the information it considers necessary or appropriate for deciding whether to
purchase the Shares and the Warrants. Such Purchaser further acknowledges that
it has reviewed the Offering Memorandum and that it has had an opportunity to
ask questions and receive answers from the Company regarding the terms and
conditions of the offering of the Shares and the Warrants and the business,
properties, prospects and financial condition of the Company.  The foregoing does not, however, limit or
modify the representations and warranties of the Company set forth in Article III
of this Agreement or the rights of the Purchasers to rely thereon.

 

5                                          Conditions Precedent. 

 

5.1                                           Conditions to the Obligation of the Purchasers
to Consummate the Closing. The obligation of each Purchaser to consummate the Closing and to
purchase and pay for the Shares and Warrants to be purchased by it is subject
to the satisfaction (or waiver by such Purchaser) of the following conditions precedent:

 

(a)                                  The representations and warranties of the
Company contained herein shall be true and correct in all respects on and as of
the Closing Date with the same force and effect as though made on and as of the
Closing Date. The Company shall have performed all obligations and conditions
herein required to be performed or complied with by the Company on or prior to
the Closing Date.

 

(b)                                 There shall have been no event or events
which has occurred since the date hereof that taken individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect.

 

(c)                                  No proceeding challenging this Agreement
or the Transaction Documents, or the transactions contemplated hereby or
thereby, or seeking to prohibit, alter, prevent or materially delay the
Closing, shall have been instituted before any court, arbitrator or
Governmental Authority or official or shall be pending against or involving the
Company or any Subsidiary.

 

(d)                                 The sale of the Shares and Warrant Shares
and the issuance of the Warrants to the Purchasers shall not be prohibited by
any law, rule, governmental order or regulation. All necessary consents,
approvals, licenses, permits, orders and authorizations of, or registrations,
declarations and filings with, any Governmental Authority or of or with any
other Person with respect to any of the transactions contemplated hereby shall
have been duly obtained or made and shall be in full force and effect.

 

16

 

(e)                                  The Purchasers shall have received from
Vinson & Elkins LLP, outside counsel to the Company, an opinion addressed
to such Purchasers, dated the Closing Date and substantially in the form of Exhibit
C-1 hereto.

 

(f)                                    The Purchasers shall have received from Woodburn and
Wedge, outside Nevada counsel to the Company, an opinion addressed to such
Purchasers, dated the Closing Date and substantially in the form of Exhibit
C-2 hereto.

 

(g)                                 The Registration Rights Agreement shall
have been executed and delivered to the Purchasers by the Company.

 

(h)                                 The Company shall have delivered to the
Purchasers a certificate substantially in the form of Exhibit D hereto
dated the Closing Date and signed by the secretary or another officer of the
Company, certifying (i) that the copies of the Certificate of Incorporation,
the By-Laws and resolutions of the Board approving this Agreement, the
Transaction Documents and the transactions contemplated hereby and thereby
attached thereto, are all true, complete and correct and remain in full force
and effect as of such date, and (ii) as to the incumbency and specimen
signature of each officer of the Company executing this Agreement, the
Transaction Documents and any other document delivered in connection herewith
on behalf of the Company.

 

(i)                                     The Company shall have delivered to the
Purchasers a certificate substantially in the form of Exhibit E hereto
dated the Closing Date and signed by the Company’s chief financial officer,
certifying that (i) the representations and warranties of the Company contained
in Section 3 hereof are true and correct in all respects on the Closing
Date and (ii) the Company has performed and complied with all of the agreements
and conditions set forth or contemplated herein that are required to be
performed or complied with by the Company on or before the Closing Date.

 

(j)                                     Such Purchaser shall have received from
the Company an original stock certificate evidencing the purchase of the Shares
and an original Warrant, in each case for the number of shares of Common Stock
and the number of Warrant Shares, respectively, set forth opposite such
Purchaser’s name on Schedule I hereto, and bearing the legends
required to be imprinted thereon pursuant to Section 6.2 hereof.

 

(k)                                  The Company shall have delivered to the
Purchasers a certificate of good standing for the Company and each Subsidiary
issued by the Secretary of State of its applicable state of incorporation or
organization, and, with respect to the Company a certificate of qualification
to do business issued by the Secretary of State of the State of Texas.

 

(l)                                     The Purchasers shall have received a copy
of the duly executed Transfer Agent Instruction Letter in the form of Exhibit
F hereto.

 

(m)                               All instruments and corporate proceedings
of the Company in connection with the transactions contemplated by this
Agreement and the Transaction Documents shall be reasonably satisfactory in
form and substance to such Purchaser, and such Purchaser shall have received
copies (executed or certified, as may be appropriate) of all documents which
any Purchaser may have reasonably requested in connection with such
transactions.

 

5.2                                           Conditions to the Obligation of the
Company to Consummate the Closing. The obligation of the Company to consummate the
Closing and to issue and sell the Shares and Warrants to each Purchaser at the
Closing is subject to the satisfaction of the following conditions precedent:

 

17

 

(a)                                  The representations and warranties of
such Purchaser contained herein shall be true and correct in all respects on
and as of the Closing Date.

 

(b)                                 The Registration Rights Agreement shall
have been executed and delivered to the Company by such Purchaser.

 

(c)                                  Such Purchaser shall have performed all
obligations and conditions herein required to be performed or complied with by
such Purchaser on or prior to the Closing Date, including but not limited to
tendering its respective portion of the Aggregate Purchase Price.

 

(d)                                 No proceeding challenging this Agreement
or the Transaction Documents, or the transactions contemplated hereby or
thereby, or seeking to prohibit, alter, prevent or materially delay the
Closing, shall have been instituted before any court, arbitrator or
Governmental Authority or official or shall be pending against or involving
such Purchaser.

 

(e)                                  The sale of the Shares and the issuance
of the Warrants and the Warrant Shares by the Company shall not be prohibited
by any law, rule, governmental order or regulation. All necessary consents,
approvals, licenses, permits, orders and authorizations of, or registrations,
declarations and filings with, any Governmental Authority or of any other
Person with respect to any of the transactions contemplated hereby shall have
been duly obtained or made and shall be in full force and effect.

 

(f)                                    Such Purchaser shall have delivered to
the Company each of a Form W-9 or Form W-8, as applicable, and a completed an
Investor Questionnaire in the form of Exhibit  B hereto.

 

6                                          Certain Covenants and Agreements.

 

6.1                                           Transfer of Securities. Each Purchaser agrees severally (as to
itself only) and not jointly that it shall not sell, assign, pledge, transfer
or otherwise dispose of or encumber any of the Shares, the Warrants or any
Warrant Shares, except: (i) pursuant to an effective registration statement
under the Securities Act; (ii) to an Affiliate of such Purchaser (so long as
such Affiliate agrees to certify that it is an “accredited investor” as defined
in Rule 501(a) under the Securities Act and to be bound by the terms and
provisions of this Agreement as if, and to the fullest extent as, such
Purchaser) or to partners or members in a pro rata distribution; or (iii)
pursuant to an available exemption from registration under the Securities Act
(including sales permitted pursuant to Rule 144) and applicable state
securities laws. Any transfer or purported transfer of the Shares in violation
of this Section 6.1 or Section 6.2 shall be void. The Company shall
not register any transfer of the Shares in violation of this Section 6.1
or Section 6.2. The Company may, and may instruct any transfer agent for
the Company, to place such stop transfer orders as may be required on the
transfer books of the Company in order to ensure compliance with the provisions
of this Section 6.1 and Section 6.2.

 

6.2                                           Legends.

 

(a)                                  To the extent applicable, each
certificate or other document evidencing the Shares, the Warrants and any
Warrant Shares shall be endorsed with the legend set forth below, and each
Purchaser covenants that, except to the extent such restrictions are waived by
the Company, it shall not transfer the shares represented by any such
certificate without complying with the restrictions on transfer described in
this Agreement and the legends endorsed on such certificate:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR 

 

18

 

SOLD IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER SAID
ACT.”

 

(b)                                 The legend set forth in Section 6.2(a)
shall be removed from the certificates evidencing the Shares, Warrants and any
Warrant Shares, (i) following any sale of such Shares, Warrants or Warrant
Shares pursuant to Rule 144 or any effective registration statement, or (ii) if
such Shares, Warrants or Warrant Shares are eligible for sale under Rule 144(k)
(and the holder of such Shares, Warrants or Warrant Shares has submitted a
written request for removal of the legend along with a legal opinion, if
reasonably requested by the Company, to the effect that the holder has complied
with the applicable provisions of Rule 144), or (iii) if such legend is not
required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the Staff of the SEC)
(and the holder of such Shares, Warrants or Warrant Shares has submitted a
written request for removal of the legend, along with a legal opinion, if
reasonably requested by the Company, to the effect that the holder has complied
with such judicial interpretation or pronouncement). Subject to receipt of
appropriate certifications, the Company shall cause its counsel to issue a
legal opinion to the Company’s transfer agent promptly upon the occurrence of
any of the events in clauses (i), (ii) or (iii) above to effect the removal of
the legend on certificates evidencing the Shares or any Warrant Shares and
shall also cause its counsel to issue a “blanket” legal opinion to the Company’s
transfer agent promptly after the effective date of any registration statement
covering the resale of the Shares or any Warrant Shares (provided that there is
an effective registration statement covering the resale of the Shares or any
Warrant Shares, as the case may be), if required by the Company’s transfer
agent, to allow sales without restriction pursuant to an effective registration
statement. The Company agrees that at such time as such legend is no longer
required under this Section 6.2(b), it will, no later than three (3)
business days following the delivery by a Purchaser to the Company or the
Company’s transfer agent of a certificate representing the Shares, Warrants or
any Warrant Shares issued with a restrictive legend, deliver or cause to be
delivered to such Purchaser a certificate representing such Shares, Warrants or
Warrant Shares that is free from all restrictive and other legends; provided
that in the case of removal of the legend for reasons set forth in clause (ii)
above, the holder of such Shares, Warrants or Warrant Shares has submitted a
written request for removal of the legend indicating that the holder has
complied with the applicable provisions of Rule 144. The Company may not make
any notation on its records or give instructions to any transfer agent of the
Company that enlarge the restrictions on transfer set forth in this Section 6.

 

6.3                                           Publicity. Except to the extent required by applicable laws,
rules, regulations or stock exchange requirements, the Company, the
Subsidiaries and their Affiliates shall not, without the written consent of the
Majority Purchasers, make any public announcement or issue any press release
with respect to the transactions contemplated by this Agreement; provided that
the Company, each Subsidiary and their respective Affiliates shall not, without
the prior written consent of the Purchaser, disclose or publish the name of
such Purchaser in any such press release or public announcement.  Except to the extent required by applicable
laws, rules, regulations or stock exchange requirements, the Purchasers and
their Affiliates shall not, without the written consent of the Company make any
public announcement or issue any press release with respect to the transactions
contemplated by this Agreement.  In no
event will either (i) the Company, the Subsidiaries or any of their Affiliates
or (ii) any Purchaser or any of its Affiliates make any public announcement or
issue any press release with respect to the transactions contemplated by this
Agreement without consulting with the Company, on the one hand, and Tejas
Securities Group, Inc.,
on the other hand, to the extent possible, as to the content of such public
announcement or press release. 
Notwithstanding the foregoing, the parties agree that the Company shall
issue a press release in the form of Exhibit  G hereto promptly
following (and in no event more than 24 hours after) the Closing and, on or
before 9:00 a.m., New York time, on the first trading day following the Closing
Date, the Company shall file a Current Report on Form 8-K describing the terms
of the transactions contemplated by this Agreement and the Transaction
Documents in the form required by the 

 

19

 

Exchange Act, and attaching the material transaction documents
(including, without limitation, this Agreement (and all schedules to this
Agreement) and the Registration Rights Agreement) as exhibits to such filing
(including all attachments, the “8-K Filing”, and the description and
attachments, the “8-K Materials”).  From
and after the filing of the 8-K Filing with the SEC, the Company shall use
commercially reasonable efforts to assure that, and shall cause each of its
Subsidiaries and its and each of their respective officers, directors,
employees and agents to use commercially reasonable efforts to assure that, no
Purchaser shall be in possession of any material, nonpublic information
received from the Company, any of its Subsidiaries or any of its respective
officers, directors, employees or agents, that is not disclosed in the 8-K
Filing.  The Company shall not, and shall
cause each of its Subsidiaries and its and each of their respective officers,
directors, employees and agents, not to, provide any Purchaser with any material
nonpublic information regarding the Company or any of its Subsidiaries from and
after the filing of the 8-K Filing with the SEC without the express written
consent of such Purchaser; provided that the Company shall not be responsible
for any information obtained by any Purchaser or any Inspector (as defined in
the Registration Rights Agreement) as a result of such Purchaser’s exercise of
its inspection rights under the Registration Rights Agreement; and provided
further that in the event the Company or any of its Subsidiaries provides any
information to a Purchaser under the Transaction Documents and the Company
reasonably believes that such information represents material nonpublic
information, the Company (a) shall prior to such disclosure to any Purchaser
notify such Purchaser of such belief and shall not provide such information to
any Purchaser which does not expressly consent to receive such information and
(b) to the extent any Purchaser determines not to receive such information, the
Company shall be deemed not to be in breach of the original obligation to
provide such information.  In the event
of a breach of the foregoing covenant by the Company, any of its Subsidiaries,
or any of its or their respective officers, directors, employees and agents, in
addition to any other remedy provided herein or in the Transaction Documents, a
Purchaser shall have the right to make a public disclosure, in the form of a
press release, public advertisement or otherwise, of such material non-public
information without the prior approval by the Company, its Subsidiaries, or any
of its or their respective officers, directors, employees or agents; provided
that the Purchaser will provide to the Company two Business Days’ advance
notice prior to such disclosure, and shall refrain from making such disclosure
if the Company makes such disclosure during such two-day period.  No Purchaser shall have any liability to the
Company, its Subsidiaries, or any of its or their respective officers,
directors, employees, shareholders or agents for any such disclosure made in
compliance with this Section 6.3.

 

6.4                                           Use of Proceeds. The Company covenants and agrees that
the proceeds from the sale of the Shares and Warrants shall be used by the
Company for the purposes described in the Offering Memorandum.

 

6.5                                           Integration. The Company shall not sell, offer for
sale or solicit offers to buy or otherwise negotiate in respect of any security
(as defined in Section 2 of the Securities Act) that would be integrated
with the offer or sale of the Shares or Warrants in a manner that would require
the registration under the Securities Act of the sale of the Shares or the
issuance of the Warrants or any Warrant Shares to the Purchasers.

 

6.6                                           Reservation of Common Stock for Issuance;
Listing of Shares.  The Company agrees to reserve from its duly
authorized capital stock the total number of shares of Common Stock issuable
upon execution of this Agreement and upon the exercise in full of all of the
Warrants.  The Company agrees that at any
time, if and when its shares of Common Stock are listed on NASDAQ or any other
securities exchange, that it will use commercially reasonable efforts to
promptly list and qualify the Shares and any Warrant Shares for trading on
NASDAQ or such other securities exchange.

 

20

 

6.7                                           Actions with respect to Securities Laws
Exemptions.  Neither the Company nor anyone acting on its
behalf shall take any action that would cause the loss of any Securities Laws
Exemptions.

 

6.8                                           Restrictions on Certain Stock Issuances
or Registrations.  The Company agrees that prior to the
effectiveness of the Mandatory Registration Statement (as defined in the
Registration Rights Agreement), the Company shall not (i) issue any shares of
Common Stock, or securities convertible into or exercisable for shares of
Common Stock, that could be eligible for sale without restriction under the
Securities Act prior to the effectiveness of the Mandatory Registration
Statement (as defined in the Registration Rights Agreement), or (ii) grant any
registration rights after the date hereof to any other Person that would
entitle such Person to have the sale of securities held by such Person
registered under the Securities Act by the Company under a registration
statement that is declared effective prior to the effectiveness of the
Mandatory Registration Statement, provided, that this Section 6.8 shall
not be deemed to restrict the ability of the Company to (a) issue shares of
Common Stock upon the exercise or conversion of any options, warrants,
convertible debt instruments or other contingent securities outstanding on the
date hereof or (b) issue shares, options or warrants to employees, directors or
consultants of the Company.

 

6.9                                           Listing.  After the
Closing Date, once the Company satisfies the applicable listing requirements,
the Company shall use commercially reasonable efforts to have its Common Stock
listed on the Nasdaq National Market, the American Stock Exchange, or the New
York Stock Exchange.  The Purchasers acknowledge
and agree that the decision as to which market or exchange on which the Company
elects to list its Common Stock rests solely within the discretion of the
Company.

 

6.10                                     Equal Treatment of Purchasers. 
No consideration shall be offered or paid to any person to amend or
consent to a waiver or modification of any provision of this Agreement or any
of the Transaction Documents unless the same consideration is also offered to
all of the parties to this Agreement and the Transaction Documents.  For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and
negotiated separately by each Purchaser, and is intended to treat the
Purchasers as a class and shall not in any way be construed as the Purchasers
acting in concert or as a group with respect to the purchase, disposition or
voting of the Shares or otherwise.

 

6.11                                     Pre-Emptive Right. 
From and after the Closing Date until the first anniversary of the date
that the Mandatory Registration Statement (as defined in the Registration
Rights Agreement) is first declared effective by the SEC, each Purchaser shall
have the right to purchase a pro rata share of New Securities (as defined in
this Section 6.11) that the Company may, from time to time, propose to sell
and issue; provided, however,
that the Purchasers collectively shall only have the right to purchase up to
50% of the aggregate New Securities that the Company proposes to issue and sell
as set forth in the notice delivered by the Company pursuant to Section 6.11(b).  Each Purchaser’s pro rata share, for purposes
of the pre-emptive right set forth in this Section 6.11, is the ratio of
the number of shares of Common Stock owned by such Purchaser immediately prior
to the issuance of New Securities to the total number of shares of Common Stock
outstanding immediately prior to the issuance of New Securities. Each Purchaser
shall also have the right of over-allotment to purchase additional New
Securities set forth in paragraph (b) of this Section 6.11. This pre-emptive
right shall be subject to the following provisions:

 

(a)                                  “New Securities” shall mean
any capital stock (including Common Stock) of the Company whether now
authorized or not, and any rights, options or warrants to purchase such capital
stock, and securities of any type whatsoever that are, or may become,
convertible into or exchangeable for capital stock; provided that the term “New Securities” does not include
capital stock (including without limitation shares of Common Stock),
convertible securities, rights or 

 

21

 

other securities issued: (i)
upon conversion of the Warrants or other securities issuable upon conversion of
securities outstanding on the date hereof (including without limitation upon
exercise of warrants and options issued by the Company from time to time and
upon conversion of the shares of Series A Convertible Preferred Stock), (ii) to
employees, consultants, officers or directors of the Company pursuant to stock
option, stock purchase or stock bonus plans or agreements or other stock
incentive plans or arrangements approved by the Board, (iii) pursuant to the
acquisition of another business entity or business segment of any such entity
by the Company by merger, purchase of substantially all the assets or other
reorganization or pursuant to a corporate partnering agreement, joint venture
or strategic relationship if such issuance is approved by the Board, provided such issuances described in this
clause (iii) are not primarily for the purpose of raising capital through
equity financing or to an entity whose principal business is investing in
securities and are approved by the Board, (iv) in connection with any stock
split, stock dividend or recapitalization of the Company, (v) in connection
with lease lines, bank loans, corporate partnering or other similar
transactions, provided such
issuances described in this clause (v) are not primarily for the purpose of
equity financing and are approved by the Board, (vi) to all shareholders of the
Company on a pro rata basis, and (vii) to directors of the Company as
compensation for their service as directors pursuant to a restricted stock
plan.

 

(b)                                 In the event the Company
proposes to undertake an issuance of New Securities, it shall give each Purchaser
written notice of its intention, describing the type of New Securities, their
price and the general terms upon which the Company proposes to issue the same.
Each Purchaser shall have thirty (30) days after any such notice is mailed or
delivered to agree to purchase all or any portion of such Purchaser’s pro rata
share of such New Securities subject to this Section 6.11 for the price
and upon the terms specified in the notice by giving written notice to the
Company and stating therein the quantity of New Securities to be purchased.
Each Purchaser shall have the right of over-allotment such that if any
Purchaser fails to exercise its right under this Section 6.11 to purchase
its full pro rata share of New Securities, the other Purchasers may purchase the
portion of such Purchaser’s remaining portion on a pro rata share within ten
(10) days from the date such non-purchasing Purchaser fails to exercise its
right hereunder to purchase its full pro rata share of New Securities.

 

(c)                                  In
the event the Purchasers fail to exercise the pre-emptive right within such
thirty (30) day period and after the expiration of the ten (10) day period for
the exercise of the over-allotment provisions of this Section 6.11, the
Company shall have ninety (90) days thereafter to sell any New Securities with
respect to which the Purchasers’ pre-emptive right set forth in this Section 6.11
was not exercised and the 50% of the New Securities that are not subject to
this Section 6.11, at a price and upon terms no more favorable to the
purchasers thereof or to the Company than specified in the Company’s notice to
the Purchasers pursuant to Section 6.11(b) above. In the event the Company
has not sold the New Securities with respect to which the Purchasers’
preemptive right set forth in the Section 6.11 was not exercised and the
50% of the New Securities that are not subject to this Section 6.11 within
such ninety (90) day period, the Company shall not thereafter issue or sell any
New Securities without first again offering the New Securities subject to this Section 6.11
to the Purchasers in the manner provided in Section 6.11(b) above.

 

7                                          Indemnification.

 

7.1                                           By the Company. The Company, without limitation as to
time, agrees to indemnify, defend and hold harmless each Purchaser and its Affiliates
and their respective officers, directors, agents, employees, subsidiaries,
partners, members, investment advisers and controlling persons (collectively,
the “Purchaser Indemnitees”) to the fullest extent permitted by law from
and against any 

 

22

 

and
all claims, losses, liabilities, damages, deficiencies, judgments, assessments,
fines, settlements, costs or expenses (including interest, penalties and
reasonable fees, disbursements and other charges of counsel) (collectively, “Losses”)
based upon, arising out of or otherwise in respect of or relating to any breach
by the Company of any representation, warranty, covenant or agreement of the
Company contained in this Agreement or in the Transaction Documents.

 

7.2                                           Applicability. Notwithstanding any term to the
contrary in this Section 7, the indemnification and contribution
provisions of the Registration Rights Agreement shall govern any claim made
with respect to registration statements filed pursuant thereto or sales made
thereunder.

 

8                                          Miscellaneous Provisions.

 

8.1                                           Rights Cumulative. Each and all of the various rights,
powers and remedies of the parties shall be considered to be cumulative with
and in addition to any other rights, powers and remedies which such parties may
have at law or in equity in the event of the breach of any of the terms of this
Agreement.  The exercise or partial
exercise of any right, power or remedy shall neither constitute the exclusive
election thereof nor the waiver of any other right, power or remedy available
to such party.

 

8.2                                           Pronouns. All pronouns or any variation thereof shall be
deemed to refer to the masculine, feminine or neuter, singular or plural, as
the identity of the person, persons, entity or entities may require.

 

8.3                                           Notices.

 

(a)                                  Any notices, reports or other
correspondence (hereinafter collectively referred to as “correspondence”)
required or permitted to be given hereunder shall be sent by postage prepaid
first class mail, overnight courier or facsimile transmission, or delivered by
hand to the party to whom such correspondence is required or permitted to be
given hereunder. The date of giving any notice shall be the date of its actual
receipt.

 

(b)                                 All correspondence to the Company shall
be addressed as follows:

 

Particle Drilling Technologies, Inc.

808 Travis, Suite 850

Houston, Texas 77002

Attn: 
Chief Financial Officer

Facsimile: (713) 224-6361

 

with a copy to:

 

Vinson & Elkins LLP

First City Tower

1001 Fannin Street, Suite 2300

Houston, Texas 77002-676

Attn:
Keith Fullenweider

Facsimile:
(713) 758-2346

 

(c)                                  All correspondence to the Purchasers
shall be addressed pursuant to the contact information set forth on Schedule I
attached hereto.

 

23

 

(d)                                 Any party may change the address to which
correspondence to it is to be addressed by notification as provided for herein.

 

8.4                                           Captions. The captions and paragraph headings of this
Agreement are solely for the convenience of reference and shall not affect its
interpretation.

 

8.5                                           Severability. Should any part or provision of this
Agreement be held unenforceable or in conflict with the applicable laws or
regulations of any jurisdiction, the invalid or unenforceable part or
provisions shall be replaced with a provision which accomplishes, to the extent
possible, the original business purpose of such part or provision in a valid
and enforceable manner, and the remainder of this Agreement shall remain
binding upon the parties hereto.

 

8.6                                           Governing Law; Waiver of Jury Trial. This Agreement shall be governed by and
construed in accordance with the internal and substantive laws of the State of
New York without regard to any conflicts of laws concepts which would apply the
substantive law of some other jurisdiction. 
THE PARTIES HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT.

 

8.7                                           Waiver. No waiver of any term, provision or condition of
this Agreement, whether by conduct or otherwise, in any one or more instances,
shall be deemed to be, or be construed as, a further or continuing waiver of
any such term, provision or condition or as a waiver of any other term,
provision or condition of this Agreement.

 

8.8                                           Assignment. The rights and obligations of any party hereto shall
inure to the benefit of and shall be binding upon the authorized successors and
permitted assigns of such party. The Company may not assign this Agreement or
any rights or obligations hereunder without the prior written consent of each
Purchaser. Each Purchaser may assign or transfer any or all of its rights under
this Agreement to any Person provided that such assignee or transferee complies
with and agrees in writing to be bound, with respect to the transferred Shares
and Warrant Shares, by Sections 6.1 and 6.2 hereof; whereupon such
assignee or transferee shall be deemed to be a “Purchaser” for all purposes of
this Agreement.

 

8.9                                           Survival. The respective representations and warranties given
by the parties hereto shall survive the Closing Date and the consummation of
the transactions contemplated herein. The respective covenants and agreements
agreed to by a party hereto shall survive the Closing Date and the consummation
of the transactions contemplated herein in accordance with their respective
terms and conditions.

 

8.10                                     Entire Agreement. This Agreement and the Transaction
Documents constitute the entire agreement between the parties hereto respecting
the subject matter hereof and supersede all prior agreements, negotiations,
understandings, representations and statements respecting the subject matter
hereof, whether written or oral, including but not limited to the various Term
Sheets dated on or about February 8, 2005 between the Company and the
Purchasers.  The Company agrees that in
the event it enters into any agreement or understanding with any Purchaser
pursuant to which the Company grants such Purchaser any rights or other terms
relating to the purchase, registration, holding or disposition of Shares,
Warrant Shares or Warrants that are more favorable than those set forth herein
or in the Transaction Documents, the Company shall also grant each other
Purchaser such more favorable rights or other terms.

 

8.11                                     Amendments. Any amendment, supplement or modification of or to
any provision of this Agreement and any waiver of any provisions of this
Agreement shall be effective only if made or 

 

24

 

given
in writing and signed by the Company and the Majority Purchasers, provided,
that any amendment, supplement, modification or waiver that is materially and
disproportionately adverse to any Purchaser(s), when compared to all other
Purchasers similarly situated, shall require the consent of such Purchaser(s).

 

8.12                                     No Third Party Rights. This Agreement is intended solely for
the benefit of the parties hereto and their respective successors and permitted
assigns and is not intended to confer any benefits upon, or create any rights
in favor of, any Person (including, without limitation, any stockholder or debt
holder of the Company) other than the parties hereto, provided, that
each of the Purchaser Indemnitees that are not Purchasers are entitled to all
rights and benefits as third party beneficiaries of Section 7 of this
Agreement.

 

8.13                                     Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same document. The parties hereto
confirm that any facsimile copy of another party’s executed counterpart of this
Agreement (or its signature page thereof) will be deemed to be an executed
original thereof.

 

8.14                                     Exculpation Among Purchasers. 
Each Purchaser acknowledges that it is not relying upon any Person
(including, without limitation, any other Purchaser), other than the Company
and its officers and directors (acting in their capacity as representatives of
the Company), in deciding to invest and in making its investment in the
Company.  Each Purchaser agrees that no
other Purchaser nor the respective controlling persons, officers, directors,
partners, agents or employees of any other Purchaser shall be liable to such
Purchaser for any losses incurred by such Purchaser in connection with its
investment in the Company.

 

8.15                                     Expenses.  Each party
hereto will bear its own fees and expenses in connection with the transactions
contemplated by this Agreement and the Transaction Documents.

 

[Signature pages follow.]

 

25

 

                                                Each of the parties hereto has caused a
counterpart of this Agreement to be duly executed and delivered as of the date
first written above.

 

 

THE COMPANY:

 

 

	
   

  	
  PARTICLE DRILLING
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. Chris Boswell

  	
   

  
	
   

  	
  Name:

  	
  J. Chris Boswell

  
	
   

  	
  Title: 

  	
  Senior Vice President and
  Chief Financial Officer

  
					

 

26

 

 

	
   

  	
  Purchaser

  
	
   

  	
   

  
	
   

  	
  MILFAM I,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Lloyd
  I. Miller

  	
   

  
	
   

  	
  Name:

  	
  Lloyd I.
  Miller

  	
   

  
	
   

  	
  Title:

  	
  General
  Partner

  	
   

  
	
   

  	
  Address:

  	
  4550 Gordon
  Drive

  	
   

  
	
   

  	
   

  	
  Naples, FL
  34102-7914

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased: 125,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. 31 486117

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
						

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MILLENNIUM
  PARTNERS, L.P.

  	
   

  
	
   

  	
  By: MILLENNIUM MANAGEMENT, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Terry
  Feeney

  	
   

  
	
   

  	
  Name:

  	
  Terry Feeney

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Operating Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  1,000,000 @
  $2 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  13-3521699

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  
								

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Phaeton
  International (BVI) Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Joann
  McNiff

  	
   

  
	
   

  	
  Name:

  	
  Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Agent

  	
   

  
	
   

  	
  Address:

  	
  600 Fifth
  Avenue, 27th Fl.

  	
   

  
	
   

  	
   

  	
  New York, NY
  10020

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  315,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
    N/A*

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  *Offshore
  Entity

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Phoenix
  Partners, II, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Joann
  McNiff

  	
   

  
	
   

  	
  Name:

  	
  Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Agent

  	
   

  
	
   

  	
  Address:

  	
  600 Fifth
  Avenue, 27th Fl.

  	
   

  
	
   

  	
   

  	
  New York, NY
  10020

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  102,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  84-1631449

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
											

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Phoenix
  Partners, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Joann
  McNiff

  	
   

  
	
   

  	
  Name:

  	
  Joann McNiff

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Agent

  	
   

  
	
   

  	
  Address:

  	
  600 Fifth
  Avenue, 27th Fl.

  	
   

  
	
   

  	
   

  	
  New York, NY
  10020

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  333,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  13-6272912

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
									

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The IBS
  Turnaround Fund (QP), L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / David
  Taft

  	
   

  
	
   

  	
  Name:

  	
  David Taft

  	
   

  
	
   

  	
  Title:

  	
  President,
  IBS Capital Corp.

  	
   

  
	
   

  	
   

  	
  its General
  Partner

  	
   

  
	
   

  	
  Address:

  	
  2
  International Place, 24th Flr.

  	
   

  
	
   

  	
   

  	
  Boston, MA
  02110

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  480,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  20-2036891

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The IBS
  Turnaround Fund, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / David
  Taft

  	
   

  
	
   

  	
  Name:

  	
  David Taft

  	
   

  
	
   

  	
  Title:

  	
  President,
  IBS Capital Corp.

  	
   

  
	
   

  	
  Address:

  	
  2
  International Place, 24th Flr.

  	
   

  
	
   

  	
   

  	
  Boston, MA
  02110

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  210,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  93-1146657

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The IBS
  Opportunity Fund, Ltd.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / David
  Taft

  	
   

  
	
   

  	
  Name:

  	
  David Taft

  	
   

  
	
   

  	
  Title:

  	
  President,
  IBS Capital Corp.

  	
   

  
	
   

  	
  Address:

  	
  2
  International Place, 24th Flr.

  	
   

  
	
   

  	
   

  	
  Boston, MA
  02110

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  110,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No.

  	
  N/A –
  Offshore

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Frederick
  J. Wahl

  	
   

  
	
   

  	
  Name:

  	
  Fredrick J.
  Wahl

  	
   

  
	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
  Address:

  	
  Ore Hill
  Partners L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
   

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ore Hill Hub
  Fund, Ltd.

  	
   

  
	
   

  	
   

  	
  By: Ore Hill
  Partners, LLC

  	
   

  
	
   

  	
   

  	
  It’s
  Investment Advisor

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GREYWOLF
  CAPITAL PARTNERS II LP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / W.
  Troy

  	
   

  
	
   

  	
  Name:

  	
  W. Troy

  	
   

  
	
   

  	
  Title:

  	
  COO

  	
   

  
	
   

  	
  Address:

  	
  411 West
  Putnam

  	
   

  
	
   

  	
   

  	
  Greenwich,
  CT 06830

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  360,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  54-2104239

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GREYWOLF
  CAPITAL OVERSEAS FUND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / W.
  Troy

  	
   

  
	
   

  	
  Name:

  	
  W. Troy

  	
   

  
	
   

  	
  Title:

  	
  COO

  	
   

  
	
   

  	
  Address:

  	
  411 West
  Putnam

  	
   

  
	
   

  	
   

  	
  Greenwich,
  CT 06830

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  640,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  N/A*

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  *Cayman
  Islands Entity

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Sound Energy
  Capital Offshore Fund, Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Anthony Giammalva

  	
   

  
	
   

  	
  Name:

  	
  Anthony
  Giammalva

  	
   

  
	
   

  	
  Title:

  	
  G.P.

  	
   

  
	
   

  	
  Address:

  	
  Sound Energy
  Capital Management, L.P.

  	
   

  
	
   

  	
   

  	
  its
  Investment Advisor

  	
   

  
	
   

  	
   

  	
  354 Pequot
  Avenue

  	
   

  
	
   

  	
   

  	
  Southpoint,
  CT 06890

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  45,200

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  N/A

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
									

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Southport
  Energy Plus Offshore Fund, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Anthony Giammalva

  	
   

  
	
   

  	
  Name:

  	
  Anthony
  Giammalva

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
   

  	
  Sound Energy
  Partners, Inc.

  	
   

  
	
   

  	
   

  	
  its
  Investment Advisor

  	
   

  
	
   

  	
  Address:

  	
  354 Pequot
  Avenue

  	
   

  
	
   

  	
   

  	
  Southpoint,
  CT 06890

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  121,400

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  N/A

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
									

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Southport
  Energy Plus Partners, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Anthony Giammalva

  	
   

  
	
   

  	
  Name:

  	
  Anthony
  Giammalva

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
   

  	
  Sound Energy
  Partners, Inc.

  	
   

  
	
   

  	
   

  	
  its
  Investment Manager

  	
   

  
	
   

  	
  Address:

  	
  354 Pequot
  Avenue

  	
   

  
	
   

  	
   

  	
  Southpoint,
  CT 06890

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  333,400

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  06-1531979

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
									

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Rita Barr

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Rita
  Barr

  	
   

  
	
   

  	
  Name:

  	
  Rita Barr

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  28 Sage Lane

  	
   

  
	
   

  	
   

  	
  Glenmont, NY
  12077

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  50,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
   

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
									

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Cadence
  Offshore Ltd.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Philip
  R. Broenniman

  	
   

  
	
   

  	
  Name:

  	
  Philip
  Broenniman

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
  Address:

  	
  c/o Cadence
  Investment Mgt. LLC

  	
   

  
	
   

  	
   

  	
  800 Third
  Avenue, 10th Fl.

  	
   

  
	
   

  	
   

  	
  New York, NY
  10022

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  104,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  N/A Foreign

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
									

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Ivy MA
  Holdings Cayman 8, Ltd.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Philip
  R. Broenniman

  	
   

  
	
   

  	
  Name:

  	
  Philip
  Broenniman

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
  Address:

  	
  c/o Cadence
  Investment Mgt. LLC

  	
   

  
	
   

  	
   

  	
  800 Third Avenue,
  10th Fl.

  	
   

  
	
   

  	
   

  	
  New York, NY
  10022

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  90,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  N/A Foreign

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
									

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Cadence
  Onshore, LP

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Philip
  R. Broenniman

  	
   

  
	
   

  	
  Name:

  	
  Philip
  Broenniman

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
  Address:

  	
  c/o Cadence
  Investment Mgt. LLC

  	
   

  
	
   

  	
   

  	
  800 Third
  Avenue, 10th Fl.

  	
   

  
	
   

  	
   

  	
  New York, NY
  10022

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of Shares
  to be purchased:

  	
  56,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  20-0242459

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SF Capital
  Partners, Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Brian
  H. Davidson

  	
   

  
	
   

  	
  Name:

  	
  Brian H.
  Davidson

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
  Address:

  	
  c/o Stark
  Offshore Management, LLC

  	
   

  
	
   

  	
   

  	
  3600 South
  Lake Drive

  	
   

  
	
   

  	
   

  	
  St. Francis,
  WI 53235

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  500,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  98-0363554

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
											

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NISKAYUNA
  DEVELOPMENT LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Jared
  E. Abbruzzese, Sr.

  	
   

  
	
   

  	
  Name:

  	
  Jared E.
  Abbruzzese, Sr.

  	
   

  
	
   

  	
  Title:

  	
  An
  Authorized Signatory

  	
   

  
	
   

  	
  Address:

  	
  18 Corporate
  Woods Boulevard

  	
   

  
	
   

  	
   

  	
  Third Floor

  	
   

  
	
   

  	
   

  	
  Albany, NY
  12211

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  125,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No.:

  	
  45-0523242

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Xerion
  Partners II Master Fund Limited

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Michael J. Berner

  	
   

  
	
   

  	
  Name:

  	
  Michael J.
  Berner

  	
   

  
	
   

  	
  Title:

  	
  Attorney-in-Fact

  	
   

  
	
   

  	
  Address:

  	
  c/o BNY
  Alternative Investment

  	
   

  
	
   

  	
   

  	
  Services,
  Ltd.

  	
   

  
	
   

  	
   

  	
  18 Church
  Street

  	
   

  
	
   

  	
   

  	
  Skandia
  House

  	
   

  
	
   

  	
   

  	
  Hamilton, HM
  11 Bermuda

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  125,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  98-0418916

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Xerion
  Partners I L.L.C.

  
	
   

  	
  By Paloma G.P. L. L. C., Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Michael J. Berner

  	
   

  
	
   

  	
  Name:

  	
  Michael J.
  Berner

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  
	
   

  	
  Address:

  	
  Two American
  Lane

  	
   

  
	
   

  	
   

  	
  Greenwich,
  CT 06836-2571

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  125,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  32-0055067

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Strome
  Hedgecap Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Jeffery Lambert

  	
   

  
	
   

  	
  Name:

  	
  Jeffery
  Lambert

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
  Address:

  	
  c/o Strome
  Investment Management

  	
   

  
	
   

  	
   

  	
  100 Wilshire
  Blvd. #1500

  	
   

  
	
   

  	
   

  	
  Santa
  Monica, CA 90401

  	
   

  
	
   

  	
   

  	
  Attn: Casey
  Borman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  500,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  N/A

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
  N/A

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  William C.
  Montgomery

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  William C. Montgomery

  	
   

  
	
   

  	
  Name:

  	
  William C.
  Montgomery

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  423
  Hunterwood

  	
   

  
	
   

  	
   

  	
  Houston, TX
  77024

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  50,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
   

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Schottenfeld
  Qualified Associates, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Richard Schottenfeld

  	
   

  
	
   

  	
  Name:

  	
  Richard
  Schottenfeld

  	
   

  
	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
  Address:

  	
  800 Third
  Avenue

  	
   

  
	
   

  	
   

  	
  10th Floor

  	
   

  
	
   

  	
   

  	
  New York, NY
  10022

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  350,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
  13-4127330

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LC CAPITAL
  MASTER FUND, LTD.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s /
  Richard F. Conway

  	
   

  
	
   

  	
  Name:

  	
  Richard F.
  Conway

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
  Address:

  	
  c/o Lampe
  Conway & Co., LLC

  	
   

  
	
   

  	
   

  	
  680 Fifth
  Avenue, Suite 1202

  	
   

  
	
   

  	
   

  	
  New York, NY
  10019

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  1,500,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EIN
  Identification No. (if entity):

  	
  98-0374362

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

 

 

	
   

  	
  Purchaser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  / s / Karen
  Singer

  	
   

  
	
   

  	
  Name:

  	
  KAREN SINGER

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  c/o Romulus
  Holdings, Inc.

  	
   

  
	
   

  	
   

  	
  560 Sylvan
  Avenue

  	
   

  
	
   

  	
   

  	
  Englewood
  Cliffs, NJ 07632

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of
  Shares to be purchased:

  	
  250,000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer
  Identification No. (if entity):

  	
   

  	
   

  
	
   

  	
  Social
  Security No. (if individual):

  	
   

  	
   

  
										

 

 

[Signature
Page to Securities Purchase Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]