Document:

Exhibit
      10.24

    

    Consulting
      Services Agreement

    

    

    This
      Consulting Services Agreement (“Agreement”) is entered this 1st day of March
      2006, (“Effective Date”) by and between 

     

     

    Blackwood
      Partners, Ltd. 

    Weinplaz
      10, 8001 Zurich, Switzerland

    

    

    (“Consultant”),
      an International Consulting Company, and 

    

     

    Azur
      Holdings, Inc.

    101
      NE 3rd Avenue, Suite 1220 

    Fort
      Lauderdale, Florida 33301 USA

     

     

    (“Client”),
      a U.S. Corporation with reference to the following:

    

    

    RECITALS

    

    A.
      Client
      desires to be assured of the services of Consultant in order to avail itself
      of
      Consultant’s experience, skills, knowledge, abilities and background in the
      fields of business development, financial consulting, and investor relations.
      

    

    B.
      Client
      is therefore willing to engage Consultant upon the terms and conditions set
      forth herein, and Consultant agrees to be engaged and retained by Client upon
      the terms and conditions set forth herein.

     

    NOW
      THEREFORE, in consideration of the foregoing, of the mutual promises herein
      set
      forth and for other good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged, the parties agree as follows:

    

    1.
      Engagement.
      Client
      hereby engages Consultant on a non-exclusive basis, and Consultant hereby
      accepts the engagement to become a strategic consultant to Client in Europe
      and
      to render such advice, consultation, information and services to Client
      regarding general investor relations, mergers and acquisitions and business
      development, including but not limited to the following:

    

    Consultant
      intends to advise Client with respect to its plans and strategies for; (a)
      aid
      Client in developing a marketing plan directed at informing the investing public
      as to the business of Client; (b) assist Client in its discussions with
      underwriters, investors, brokers and institutions and other professionals
      retained by Client; (c) inform Client about international banks offering stock
      based credit line facilities; (d) assist Client with identifying possible
      acquisitions or merger candidates; (e) advise and assist Client with public
      relations and promotion matters; (f) advise Client about a listing of Client’s
      common stock at a European stock exchange; and (g) introduce members of Client’s
      management to European securities dealers and market makers, if Client so
      desires. At no time will Consultant provide services which would require
      Consultant to be registered and licensed with any federal or state regulatory
      body or self-regulating agency.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.
      Term.
      The term
      of this Agreement (“Term”) shall commence on the date hereof and continue for a
      period of one year (24) months as follows: Investor relations and corporate
      advisory services will begin immediately upon the effective date hereof and
      will
      continue for a period of twelve (12) months. Professional maintenance and
      continuing communication with the established network will continue thereafter
      for an additional three (3) months. 

    

    3.
      Compensation.
      In
      connection with the appointment of Consultant hereunder and as consideration
      for
      Consultant entering into this Agreement, Client and Consultant agree to the
      following (for transfer and wiring instructions see Appendix 1):

    

    

    3.1
      Engagement Fee:
      As an
      initial engagement fee hereunder Consultant shall receive a fee of 375,000
      shares of Client payable on the date hereof (“Engagement Fee”). Such 375,000
      shares shall be delivered to Consultant within 10 days of the effective date
      hereof. The shares transferred under this paragraph will be freely tradable,
      duly authorized, validly issued and outstanding, fully paid and non-assessable
      and will not be subject to any liens or encumbrances For the continuing
      performance of its consulting services under this Agreement client shall pay
      Consultant €15,000 per month due on the 1st
      day of
      each month beginning the effective date hereof. 

    

    3.2
      Finder’s Fee:
      (a) Finder’s
      fees as follows: (i) in the case of an M&A transaction involving AZUR and
      any entity or entities (“Introduced
      Entities”)
      introduced to AZUR directly by Consultant including those introduced directly
      by
      Consultant prior to date of this Agreement, AZUR shall pay Consultant at the
      closing of such transaction cash in the amount equal to 8% of the aggregate
      Consideration (as hereinafter defined) from $0 to, but excluding, $10,000,000,
      6% of the aggregate Consideration from $10,000,000 to, but excluding,
      $20,000,000, 4% of the aggregate Consideration from $20,000,000 to, but
      excluding, $30,000,000, 3% of the aggregate Consideration from $30,000,000
      to,
      but excluding, $40,000,000, and 2% of the Consideration from $40,000,000 and
      above; (ii) in connection with any investment made by an Introduced Entity
      involving the purchase of equity securities of AZUR, AZUR shall pay to
      Consultant at the closing of such transaction cash in an amount equal to 10%
      of
      the aggregate Consideration (as hereinafter defined) from $0 to, but excluding,
      $1,000,000, 8% of the aggregate Consideration from $1,000,000 to, but excluding,
      $3,000,000, 6% of the aggregate Consideration from $3,000,000 to, but excluding,
      $5,000,000, 4% of the aggregate Consideration from $5,000,000 to, but excluding,
      $10,000,000, 3% of the aggregate Consideration from $10,000,000 to, but
      excluding, $20,000,000 and 2% of the Consideration from $20,000,000 and above;
      and (iii) in connection with any investment made by an Introduced Entity
      involving the purchase of debt securities of AZUR, AZUR shall pay to Consultant
      at the closing of such transaction cash in an amount equal to 4% of the
      aggregate Consideration (as hereinafter defined) from $0 to, but excluding,
      $1,000,000, 3% of the aggregate Consideration from $1,000,000 to, but excluding,
      $3,000,000, 2% of the aggregate Consideration from $3,000,000 to, but excluding,
      $5,000,000, 1.5% of the aggregate Consideration from $5,000,000 to, but
      excluding, $10,000,000, 1.25% of the aggregate Consideration from $10,000,000
      to, but excluding, $20,000,000 and 1% of the Consideration from $20,000,000
      and
      above. For purposes of this Agreement, “Consideration”
shall
      include the aggregate amount of cash, securities, or other assets received,
      or
      paid by, AZUR or its shareholders in connection with a purchase of AZUR’s equity
      or debt securities and, in the case of an M&A transaction, plus (a) the
      present value of any payments made or to be made pursuant to installment notes,
      covenants not-to-compete, or other, similar arrangements (but excluding any
      future compensation for future employment in an amount consistent with that
      paid
      by AZUR prior to the M&A transaction; (b) the face amount of any debt (but
      excluding operating leases, trade payables and normal accruals) which is assumed
      otherwise borne by the purchaser; and (c) the amount of any dividends or other
      extraordinary payments or distributions made in anticipation of the M&A
      transaction. The “present
      value of any payments made or to be made”
shall
      be determined using the face amount of the payments, and a discount rate equal
      to the yield of 5-year Treasuries plus 1% at the end of the day immediately
      preceding the close of the M&A transaction. Any securities or other non-cash
      consideration, received as consideration shall have a value equal to the cash
      equivalent value, as reasonably determined by the mutual agreement of the
      parties hereto. If the M&A transaction takes the form of a purchase of
      assets and an assumption of liabilities, then Consideration shall include the
      fair market value of the assets purchased, plus the face amount of any debt
      (but
      excluding operating leases, trade payables and normal accruals) that is assumed
      by the purchaser. If all or any portion of the Consideration payable in
      connection with the M&A transaction includes contingent future payments,
      then AZUR shall pay to Consultant, upon consummation of the M&A transaction,
      an additional cash fee determined in accordance with this Paragraph 4(c), when,
      and if, such contingency payments are received. However, in the event of an
      installment purchase at a fixed price and a fixed time schedule AZUR agrees
      to
      pay to Consultant, upon consummation of the M&A transaction, a cash fee
      determined in accordance with this Paragraph 4(c) based upon the present value
      of such installment payments using a discount rate referenced above.

    

    
      
        
        

      

      
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    3.3
      Shares as Payment For Services.
      Consultant may, at its discretion, elect to accept
      shares of the Corporation’s common stock, or warrants to purchase the
      Corporation’s
      common stock, as Consultant Fees, as set forth below, in lieu of cash
      compensa tion
      due
      pursuant to the Agreement: 

    

    a) Should
      Consultant accept shares of the Corporation’s registered and un-restricted
      common stock it shall be valued, for compensation purposes, at
      75% of
      the 21 day trailing Bid price per share from the date of issuance.
      

    

    b) Should
      Consultant accept shares of the Corporation’s restricted common stock
      it
      shall be valued for compensation purposes at 50% of the 21 day trailing
      Bid price per share from the date of issuance. 

    

    c)
       Should
      Consultant accept warrants for shares of the Corporation’s common
      stock
      the warrants should be for a period of Ten (10) years from the date
      of
      issuance and be valued for compensation purposes and for at 50%
      of
      the 21 day trailing Bid price per share from the date of issuance. Warrants
      shall provide for standard “Cashless” exercise provisions.

     

    
      
        
        

      

      
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    4.
      Registration
      Rights.
      For any
      restricted shares of Client’s common stock Consultant holds or will hold in the
      future which have not been registered under the Securities Act of 1933, as
      amended, or shares issued to Consultant upon the exercise of Warrants for shares
      of Client’s common stock, Client hereby guarantees and grants to Consultant
      contractual rights to register the shares at any point of time (a) by requiring
      Client to file a separate registration statement (“Demand Registration”), or (b)
      by including the aforementioned shares if and when Client files a registration
      statement (“Piggy-Back Registration”). Therefore, commencing on the date hereof,
      Consultant may request registration, whether underwritten or otherwise, whether
      Demand Registration or Piggy-Back Registration, under the Securities Act of
      1933, as amended, of all or part of registerable shares of Client’s common stock
      held by Consultant; on Form S-1 or any similar long-form registration
      (collectively, "Long-Form Registrations") or, if available, on Form S-2 or
      S-3
      or any similar short-form registration ("Short-Form Registrations"). Each
      request for a Long-Form Registration or Short-Form Registration shall specify
      the approximate number of registerable shares requested to be registered and
      the
      anticipated price range for such offering. Consultant shall be entitled to
      request Demand Registrations with respect to the registerable shares held by
      Consultant. A registration will not count as a Demand Registration hereunder
      until such registration has become effective and unless Consultant is able
      to
      register 100% of the registerable shares requested to be included in such
      registration. Demand Registrations will be Short-Form Registrations whenever
      Client is permitted to use any applicable short form. After Client has become
      subject to the reporting requirements of the Securities Exchange Act of 1934,
      as
      amended, Client will use all reasonable efforts to make Short-Form Registration
      available for the sale of registerable shares. This article survives the
      expiration or termination of this Agreement for any reason.

    

    5.
      Non-Circumvention.
      Client
      and Consultant expressly agree that this Agreement constitutes a binding
      contract. Client, intending to be legally bound, hereby irrevocably agrees
      not
      to circumvent, avoid, bypass, or obviate Consultant, directly or indirectly,
      to
      avoid payments or fees, commissions, or any other form of compensations to
      Consultant in any transaction with any corporation, partnership, or individual,
      revealed by either party to the other, in connection with any projects, or
      currency exchanges, or any loans or collaterals, or any findings, or any
      financings, or any other transactions involving products, commodities, services,
      additions, renewals, extensions, rollovers, amendments, new contracts,
      re-negotiations, parallel contracts or agreements or third party assignments
      hereof. Therefore Client shall not contact any investors or lenders or other
      individuals or entities introduced by Consultant during the term of this
      Agreement without prior written consent from Consultant. If a transaction of
      any
      kind is consummated within twenty four (24) months of the termination of this
      Agreement whether debt or equity financing or any other transaction with an
      investor or lender or other individual or entity introduced directly or
      indirectly by Consultant to Client and/or Client enters into an agreement to
      acquire or be acquired by an entity or individual introduced directly or
      indirectly by Consultant to Client during the term of this Agreement, then
      that
      transaction shall be deemed to have been arranged by Consultant under this
      Agreement and Client shall remunerate Consultant as specified in Paragraph
      3.
      This article survives the expiration or termination of this Agreement for any
      reason.

    

    6.
      Remedy.
      If
      Client breaches any term of this Agreement or violates any of his obligations
      under this Agreement, e.g. any compensation or fee payments or the
      Non-Circumvention clause or the Confidentiality clause or any other term,
      Consultant may seek all remedies and appropriate equitable relief allowed by
      law, and Consultant shall be entitled to a legal monetary penalty and equitable
      remedies equal to the maximum fees allowed by a competent court, at law or
      in
      equity, including all legal and other expenses, and Consultant may also, at
      its
      option, terminate or suspend all performances or services remaining to be
      rendered by Consultant under this Agreement without being obligated to pay
      back
      or reimburse any compensation or fee payments previously received by Consultant
      under this Agreement. Client agrees that a breach of any of the covenants
      contained in this Agreement will cause irreparable injury to Consultant, that
      Consultant might not have adequate remedy at law in respect of such breach
      and,
      as a consequence, that each and every covenant contained in this Agreement
      shall
      be specifically enforceable against Client, and Client hereby waives and agrees
      not to assert any defenses against an action for specific performance of such
      covenants except for a defense that no event of default has occurred. Client
      acknowledges that it will be impossible to measure in money the damage to
      Consultant caused by any failure to comply with the covenants set forth in
      this
      Agreement, that each such covenant is material, and that in the event of any
      such failure, Consultant will not have an adequate remedy at law or in damages.
      Therefore, the parties consent to the issuance of an injunction or the
      enforcement of other equitable remedies against Client at the suit of
      Consultant, without bond or other security, to compel performance of all of
      the
      terms of this Agreement, and waive the defense of the availability of relief
      in
      damages. This article survives the expiration or termination of this Agreement
      for any reason.

    

    
      
        
        

      

      
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    7.
      Standard
      of Care.
      Consultant warrants that it services shall be performed by personnel possessing
      competency consistent with applicable industry standards. No other
      representation, express or implied, and no warranty or guarantee are included
      or
      intended in this Agreement, or in any report, opinion, deliverable, work
      product, document or otherwise. Furthermore, no guarantee is made as to the
      efficacy or value of any services performed or software developed. This section
      sets forth the only warranties provided by Consultant concerning the services
      and related work product. This warranty is made expressly in lieu of all other
      warranties, express or implied, including without limitation any implied
      warranties of fitness for a particular purpose, merchantability,
      non-infringement, title or otherwise. This article survives the expiration
      or
      termination of this Agreement for any reason.

    

    8.
      Limitation
      of Liability.
      Consultant’s liability, including but not limited to Client’s claims of
      contributions and indemnification related to third party claims arising out
      of
      services rendered by Consultant, and for any losses, injury or damages to
      persons or properties or capitals or belongings or goods or assets or work
      performed arising out of or in connection with this Agreement and for any other
      claim, shall be limited to the lesser of (i) Twenty Five Thousand Dollars
      (US$25,000) or (ii) payment received by Consultant from Client for the
      particular service provided giving rise to the claim. Notwithstanding anything
      to the contrary in this Agreement, Consultant shall not be liable for any
      special, indirect, consequential, lost profits, or punitive damages. Client
      agrees to limit Consultant’s liability to Client and any other third party for
      any damage on account of any error, omission or negligence to a sum not to
      exceed the lesser of (i) Twenty Five Thousand Dollars (US$25,000) or (ii) the
      payment received by the Company for the particular service provided giving
      rise
      to the claim. The limitation of liability set forth herein is for any and all
      matters for which Consultant may otherwise have liability arising out of or
      in
      connection with this Agreement, whether the claim arises in contract, tort,
      statute, or otherwise. Client shall give Consultant written notice within thirty
      (30) days of obtaining knowledge of the occurrence of any claim or cause of
      action which Client believes that it has, or may seek to assert or allege,
      against Consultant, whether such claim is based in law or equity, arising under
      or related to this Agreement or to the transactions contemplated hereby, or
      any
      act or omission to act by Consultant with respect hereto. If Client fails to
      give such notice Consultant with regard to any such claim or cause of action
      and
      shall not have brought legal action for such claim or cause of action within
      said time period, Client shall be deemed to have waived, and shall be forever
      barred from bringing or asserting such claim or cause of action in any suit,
      action or proceeding in any court or before any governmental agency or authority
      or any arbitrator. All notices or other communications hereunder shall be in
      writing, sent by courier or the fastest possible means, provided that recipient
      receives a manually signed copy and the transmission method is scheduled to
      deliver within 48 hours, and shall be deemed given when delivered to the
      principal office address or such other address as may be specified in a written
      notice in accordance with this section. Any party may, by notice given in
      accordance with this Section to the other parties, designate another address
      or
      person or entity for receipt of notices hereunder. This article survives the
      expiration or termination of this Agreement for any reason.

    

    
      
        
        

      

      
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    9.
      Indemnification.
      Client
      agrees to save harmless, indemnify and defend Consultant, its agents and
      employees from and against any cost, loss, damage, liability, judgment and
      expense whatsoever, including attorney’s fees, suffered or incurred by it by
      reason of, or on account of, any misrepresentation made to it or its status
      or
      activities as Consultant under this Agreement. In the event any litigation
      or
      controversy arises out of or in connection with this Agreement between the
      parties hereto, Consultant shall be entitled to recover from Client all
      reasonable attorney's fees, expenses and suit costs, including those associated
      within the appellate or post-judgment collections proceedings. Client further
      agrees to indemnify Consultant’s officers, directors, agents, and
      representatives against all losses, claims, damages, liabilities, and expenses
      arising out of or based upon any untrue or alleged untrue statement of material
      fact contained in any registration statement, prospectus, or preliminary
      prospectus or any amendment thereof or supplement thereto or any omission or
      alleged omission of a material fact required to be stated therein or necessary
      to make the statements therein not misleading, and shall reimburse Consultant
      and such officers, directors, agents, and representatives for any legal or
      other
      expenses reasonably incurred by Consultant and such officers, directors, agents,
      and representatives in connection with the investigation or defense of such
      loss, claim, damage, liability or expense. This article survives the expiration
      or termination of this Agreement for any reason. 

    

    10.
      Representation.
      Client
      hereby represents and warrants to Consultant that it is duly organized and
      in
      good standing under State Law and under Federal Law, is current in its filings
      and disclosures with the appropriate regulatory bodies and has all requisite
      power and authority to carry on business as now conducted and as contemplated
      herein. Client represents and warrants that each person signing this Agreement
      on behalf of Client is duly authorized and has legal capacity to execute and
      deliver this Agreement. Client further represents and warrants to Consultant
      that the execution and delivery of the Agreement and the performance of
      obligations hereunder have been duly authorized and that the Agreement is a
      valid and legal agreement binding on such party and enforceable in accordance
      with its terms. Client further represents to Consultant that to the best
      knowledge of the Officers and Directors of Client, all statements, either
      written or oral, made by Client to Consultant are true and accurate, and contain
      no material misstatements, or omission fact. Client acknowledges that estimates
      of performance made by Client are based upon the best information available
      to
      Client officers at the time of said estimates of performance. Client further
      acknowledges that the information it delivers to Consultant will be used by
      Consultant in preparing materials regarding Client’s business, including but not
      necessarily limited to, its financial condition, for dissemination to the
      public. Therefore, in accordance with other paragraphs of this Agreement, Client
      shall hold the Consultant harmless from any and all errors, omissions,
      misstatements in connection with all information furnished by Client to
      Consultant. This article survives the expiration or termination of this
      Agreement for any reason. 

    

    11.
      Termination.
      Either
      party upon the giving of not less than thirty (30) days written notice may
      terminate this Agreement after the expiration of twelve months, delivered to
      the
      parties at their principal business address or addresses. Any such notice shall
      be deemed to be properly given when transmitted by way of registered mail.
       The thirty (30) days termination period shall not begin until the other
      party has received or is deemed to have received the notice of termination.
      Anything herein to the contrary notwithstanding, in the event that Consultant
      determines in good faith that its relationship with Client subjects Consultant
      or any of its employees or agents to potential violations of any applicable
      law,
      regulation, or order, then this Agreement, and all obligations of Consultant
      hereunder, shall expire immediately upon Consultant giving notice to Client
      of
      such determination. This Agreement may be terminated at any time after the
      expiration of twelve months without notice by Consultant (i) for illegal acts
      or
      willful neglect on the part of Client or Client’s management, agents or
      employees or (ii) in the event any representation, warranty, covenant, or
      agreement of Client contained in this Agreement shall prove to be inaccurate
      in
      whole or in part. Upon termination, regardless of the reason of such
      termination, Consultant shall have no obligation to pay back to Client or
      reimburse Client any compensation or fee payments previously received under
      this
      Agreement. 

    

    
      
        
        

      

      
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    12.
      Exclusivity
      and Performance.
      The
      services of Consultant hereunder shall not be exclusive, and Consultant and
      its
      agents may perform similar or different services for other persons or entities
      whether or not they are competitors of Client. Consultant shall be required
      to
      expend only such time as is necessary to service Client in a commercially
      reasonable manner. Consultant will determine the method, details, and means
      of
      performing the above-described services. Consultant may, at Consultant’s own
      expense, use any employees or subcontractors as Consultant deems necessary
      to
      perform the services required of Consultant by this Agreement. Client may not
      control, direct, or supervise Consultant’s employees or subcontractors in the
      performance of those services. 

    

    13.
      Confidentiality. Client
      and Consultant acknowledge and agree that confidential and valuable information
      proprietary to either one party and obtained during its business relationship
      with either one party, shall not be, directly or indirectly, disclosed without
      the prior express written consent of the other party, unless and until such
      information is otherwise known to the public generally or is not otherwise
      secret and confidential. All such confidential information provided to either
      one party by the other shall be clearly and conspicuously marked with the word
      “Confidential”. Consultant may disclose Client’s confidential information
      pursuant to applicable laws or regulations, provided that Consultant may
      disclose only information required for services and performances hereunder.
      Furthermore Client acknowledges and agrees that the existence of this Agreement
      and the Agreement itself, including single paragraphs, terms, provisions,
      conditions and/or any other section of the Agreement, shall not be, directly
      or
      indirectly, in total or in parts, disclosed to any third party without the
      prior
      express written consent of Consultant. 

    

    14.
      Independent
      Contractor.
      In its
      performance hereunder, Consultant and its agents shall be an independent
      contractor. Consultant shall complete the services required hereunder according
      to its own means and methods of work, shall be in the exclusive charge and
      control of Consultant and shall not be subject to the control or supervision
      of
      Client. Client acknowledges that nothing in this Agreement shall be construed
      to
      require Consultant to provide services to Client at any specific time, or in
      any
      specific place or manner, unless otherwise mutually agreed. 

    

    15.
      Jurisdiction,
      Governing Law and Arbitration. This
      Agreement shall be construed under and in accordance with the laws of the State
      of Delaware. Both parties hereby consent to the State of Delaware as the proper
      jurisdiction for any such proceeding if applicable. In connection with any
      Client claim against Consultant arising out of or relating to this Agreement,
      Client agrees that such controversy or claim shall be submitted to arbitration,
      in conformity with the Federal Arbitration Act (Section 9 U.S. Code Section
      901
      et seq), and shall be conducted in accordance with the Rules of the American
      Arbitration Association. Any judgment rendered as a result of the arbitration
      of
      any Client claim or dispute shall upon being rendered by the arbitrators be
      submitted to a Court of competent jurisdiction in the State of Delaware. The
      aforementioned choice of venue is intended by the parties to be mandatory and
      not permissive in nature, thereby precluding the possibility of litigation
      between the parties with respect to or arising out of this Agreement in any
      manner or jurisdiction other than that specified in this paragraph. Client
      hereby waives any right it may have to assert the doctrine of forum non
      convenience or similar doctrine or to object to venue with respect to any
      proceeding brought in accordance with this paragraph, and stipulates that the
      State and Federal courts located in the State of Delaware shall have in personam
      jurisdiction and venue over Client for the purpose of litigating any dispute,
      controversy, or proceeding arising out of or related to this Agreement. To
      the
      fullest extent permitted by law, and as separately bargained-for-consideration,
      Client hereby waives any right to trial by jury in any action, suit, proceeding,
      or counterclaim of any kind arising out of or relating to this
      Agreement.

    

    
      
        
        

      

      
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    16.
      Miscellaneous. No
      waiver
      of any of the provisions of this Agreement shall be deemed or shall constitute
      a
      waiver of any other provision and no waiver shall constitute a continuing
      waiver. No waiver shall be binding unless executed in writing by the party
      making the waiver. No supplement, modification, or amendment of this Agreement
      shall be binding unless executed in writing by all parties. This Agreement
      constitutes the entire agreement between the parties and supersedes any prior
      agreements or negotiations. This Agreement may, if required, be signed in
      counterparts, or by facsimile. Neither party assumes any responsibilities or
      obligation whatsoever, other than the responsibilities and obligations expressly
      set forth in this Agreement or a separate written agreement between Client
      and
      Consultant. Neither party shall be liable under the provisions of this Agreement
      for damages on account of accidents, fires, acts of God, government actions,
      state of war, or any other causes beyond the control of the party whether or
      not
      similar to those enumerated. In the event of a conflict between this Agreement
      and any future agreements executed in connection herewith, the provisions of
      this Agreement shall generally prevail. It is acknowledged and agreed by Client
      and Consultant that should any provision of this Agreement be declared or be
      determined  to be illegal or invalid by final determination of any court of
      competent jurisdiction, the validity of the remaining parts, terms or
      provisions of this Agreement shall not be affected thereby, and the illegal
      or
      invalid part, term or provision shall be deemed not to be a part of this
      Agreement. Time is of the essence in respect to all provisions of this Agreement
      that specify a time for performance; provided, however, that the foregoing
      shall
      not be construed to limit or deprive a party of the benefits of any grace or
      use
      period allowed in this Agreement. Except as otherwise expressly provided in
      this
      Agreement, Client’s representations, Client’s warranties, Client’s
      indemnification of Consultant, and covenants contained in this Agreement, or
      in
      any instrument, certificate, exhibit, or other writing intended by the parties
      to be a part of this Agreement, shall survive for twenty five (25) years after
      the date of this Agreement. Each party and its counsel have participated fully
      in the review and revision of this Agreement. Any rule of construction to the
      effect that ambiguities are to be resolved against the drafting party shall
      not
      apply in interpreting this Agreement. The language in this Agreement shall
      be
      interpreted as to its fair meaning and not strictly for or against any party.
      Headings used throughout this Agreement are for reference and convenience and
      in
      no way define by presentation, limit or describe the scope or intent of this
      Agreement. 

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have entered into this Agreement on the
      date
      first written above.

    

    

    

    Azur
      Holdings, Inc.

    

    Signature: /s/
      Donald Winfrey____________________

    Name:       
      Don
      Winfrey, President

    

    

    

    Blackwood
      Partners, Ltd.

    

    Signature: /s/
      Daisy Rafoi_______________________

    Name:       
      Daisy
      Rafoi, Managing Director

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Appendix
      1:

    

    

    Transfer
      and Wiring Instructions

    

     

    10Unassociated Document

    Exhibit
      10.25

     

     

    SECURITIES
      PURCHASE AGREEMENT,
      dated as
      of March
      8,
      2006 (this “Agreement”),
      between
      AZUR
      HOLDINGS, INC., a
      Delaware corporation with principal executive offices at 101 NE 3rd Avenue,
      Suite 1220, Fort Lauderdale, Florida 33301 (the
      “Company”),
      and
      GRAYBRICK
      PARTNERS I LLC,
      a
      Delaware limited liability company with its principal offices at 509 Madison
      Avenue, 15th
      Floor,
      New York, New York 10022 (the “Purchaser”).
      

     

     

    INTRODUCTION

     

    Subject
      to the terms and conditions of this Agreement, the Company may issue and sell
      to
      the Purchaser and the Purchaser shall purchase from the Company shares of the
      Common Stock (the “Shares”),
      par
      value $0.0001 per share (the “Common
      Stock”).

     

    NOW
      THEREFORE,
      in
      consideration of the mutual covenants contained in this Agreement, the Company
      and the Purchaser hereby agree as follows: 

     

    

     

    ARTICLE
      I

     

    ACQUISITION
      OF SECURITIES

     

    Section
      1.01 Purchase
      and Sale.

     

    (a) Schedule
      1.01(a) attached hereto defines 15
      tranches
      of Shares that the Purchaser has agreed to purchase from the Company (each,
      a
“Tranche”)
      and,
      with respect to each Tranche, sets forth the methodology for determining the
      number of Shares constituting such Tranche (the “Tranche
      Shares”)
      and
      the methodology for determining the purchase price per share for the Tranche
      Shares in such Tranche (the “Tranche
      Purchase Price”).
      The
      number of shares in each Tranche, and the purchase price for each share, shall
      be appropriately adjusted for any stock split, stock dividend or reverse stock
      split occurring after the date hereof and prior to the closing of a
      Tranche.

     

    (b) The
      Company may, in its sole discretion, elect to sell the Tranche Shares of any
      Tranche to the Purchaser at any time after the date (the “Effective
      Date”)
      on
      which a Registration Statement (as defined in Section 3.01(a)) of the Company
      covering the resale of the Shares is declared effective under the Securities
      Act
      of 1933, as amended (the “Securities
      Act”),
      and
      prior to March 31, 2007, provided, however, (i) the Company must elect to sell
      all of the Tranche Shares included in a Tranche if it elects to sell any of
      the
      Tranche Shares in such Tranche; (ii) the Company must elect to sell the Tranche
      Shares in the order that the Tranches are listed on Schedule 1.01(a); and (iii)
      the total beneficial ownership of the Purchaser of shares of Common Stock shall
      not exceed 4.9% of the Common Stock, giving effect to the acquisition of the
      Tranche or Tranches in question. Subject to the immediately preceding sentence,
      the Company may elect to sell Tranche Shares included in more than one Tranche
      at the same time. To effect its election to sell Shares, the Company must give
      written notice thereof (an “Election
      Notice”)
      to the
      Purchaser. The Election Notice shall specify the Tranche or Tranches with
      respect to which the election is being made and the date on which the closing
      of
      the sale and purchase of the Tranche Shares shall occur; provided, such date
      shall be a Business Day (as hereinafter defined) and shall not be earlier than
      ten Business Days after the date such Election Notice is given to the Purchaser.
      An Election Notice shall be irrevocable except as provided in Section 1.02(c).
      For purposes hereof, the term “Business
      Day”
shall
      mean any day which is not (i) a Saturday or a Sunday or (ii) a day on which
      banking institutions are generally authorized or obligated to close in the
      City
      of New York, New York. Subject to the foregoing and provided that the
      representations and warranties of the Company set forth herein are true and
      correct as of the date of an Election Notice and that all conditions to the
      respective obligations of the parties hereto set forth herein have either been
      satisfied or waived, in
      the
      event that the Company gives an Election Notice, the Purchaser shall be
      obligated to purchase the Tranche Shares, covered by such notice.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      1.02 Closing
      Procedures; The Closings.

     

    (a) Subject
      to the satisfaction or waiver of the conditions precedent set forth in Article
      IV hereof, the closing of a purchase of Tranche Shares by the Purchaser pursuant
      to this Agreement (each, a “Closing”)
      shall
      occur at 10:00 a.m. on the date specified in the Election Notice delivered
      by
      the Company with respect to such Tranche Shares unless the Company and the
      Purchaser have mutually agreed on a different time or date with respect to
      such
      Closing (the time and date of the Closing of a particular Tranche is referred
      to
      herein as the “Tranche
      Closing Date”).
      Unless otherwise agreed by the Company and the Purchaser, each Closing shall
      occur at the offices the Purchaser.

     

    (b) At
      each
      Closing, (i) each of the Company and the Purchaser shall deliver to the other,
      as applicable, any documents required to be delivered by Sections 4.01 and
      4.02
      hereof which have not been delivered prior to such Closing, (ii) the Purchaser
      shall deliver to the Company an acknowledgement of the applicable Tranche
      Purchase Price for the Tranche Shares being purchased at the Closing and state
      the date, not to exceed ten Business Days following the Tranche Closing Date,
      on
      or prior to which the Tranche Purchase Price shall be delivered by the Purchaser
      to the Company by wire transfer of immediately available funds to an account
      designated in writing by the Company at or prior to the Closing, and (iii)
      the
      Company shall deliver to the Purchaser one or more stock certificates,
      determined in accordance with the instructions of the Purchaser, representing
      the Tranche Shares being purchased or shall cause the Tranche Shares being
      purchased to be electronically transferred to the Purchaser. The payment of
      the
      Tranche Purchase Price referenced in clause (ii) shall be deemed to have been
      delivered at the Closing for the purposes hereof.

     

    (c) If
      a
      Closing does not occur on a proposed Tranche Closing Date because the conditions
      specified in this Section 1.02(b) to be fulfilled by the Purchaser and/or
      Article IV were not satisfied at the time of the applicable proposed Tranche
      Closing Date, the Election Notice with respect to the Tranche or Tranches
      proposed to be sold on such proposed Tranche Closing Date shall automatically
      be
      revoked; provided, however, such revocation shall not impair the right of the
      Company to give another Election Notice with respect to the Tranche or Tranches
      covered by the revoked Election Notice or to compel the Purchaser to purchase
      any Tranche Shares included in such Tranche or Tranches on a subsequent Tranche
      Closing Date on which the conditions specified in such sections and Article
      hereof are satisfied.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (d) If
      a
      Closing does not occur on a proposed Tranche Closing Date because the conditions
      specified in Section 1.02(b) to be fulfilled by the Company and/or Section
      4.01
      were not satisfied at the time of the applicable proposed Tranche Closing Date,
      the Election Notice with respect to any Tranche or Tranches proposed to be
      sold
      on such proposed Tranche Closing Date shall automatically be revoked and the
      Purchaser’s obligations under this Article I (for such Tranche and subsequent
      Tranches) shall terminate. 

     

    

     

    ARTICLE
      II

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.01 Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to the Purchaser as follows:

     

    (a) The
      Common Stock has been registered under Section 12(g) of the Securities Exchange
      Act of 1934, as amended (the “Exchange
      Act”)
      and
      the Company is subject to the periodic reporting requirements of Section 13
      of
      the Exchange Act. The Company has heretofore made available to the Purchaser
      true, complete, and correct copies of all forms, reports, schedules, statements,
      and other documents required to be filed by it under the Exchange Act since
      at
      least May 1, 2003, as such documents have been amended since the time of the
      filing thereof and a copy of the Initial Registration Statement (collectively,
      including, without limitation, all forms, reports, schedules, statements, and
      other documents filed by the Company therewith pursuant to the periodic
      reporting requirements of Sections 13, 14, and 15(d) of the Exchange Act, the
      “SEC
      Documents”).
      The
      SEC Documents, including, without limitation, any financial statements and
      schedules included therein, at the time filed or, if subsequently amended,
      as so
      amended, (i) did not contain any untrue statement of a material fact required
      to
      be stated therein or necessary in order to make the statements therein not
      misleading and (ii) complied in all respects with the applicable requirements
      of
      the Exchange Act and the applicable rules and regulations thereunder.

     

    (b) At
      the
      date hereof and at each Tranche Closing Date:

     

    (i)
       the
      Common Stock is and shall be traded and quoted in the over-the-counter Bulletin
      Board market (the “OTCBB”),
      the
      Nasdaq SmallCap Market, the Nasdaq National Market, or the American or New
      York
      Stock Exchange; 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (ii)
       the
      Company has and shall have performed or satisfied all of its undertakings to,
      and of its obligations and requirements with, the Securities and Exchange
      Commission (the “Commission”);
      and

     

    (iii)
       the
      Company has not, and shall not have taken any action that would preclude, or
      otherwise jeopardize, the inclusion of the Common Stock for quotation on the
      OTCBB.

     

    (c) The
      Grand
      Shell Landing, Inc., a Mississippi corporation (of which the Company owns all
      of
      the outstanding common stock), and Azur Shell Landing Resort, Inc., a
      Mississippi corporation (of which the Company owns 75% of the outstanding common
      stock), are corporation (each a “Subsidiary”
      and
      collectively, the “Subsidiaries”),
      are
      the only subsidiaries of the Company. Other than the Subsidiaries, the Company
      has no subsidiaries or affiliated corporation or owns any interest in any other
      enterprise (whether or not such enterprise is a corporation). The
      Company and
      each
      Subsidiary has
      been
      duly organized and is validly existing as a corporation in good standing under
      the laws of the respective
      jurisdiction
      of its incorporation with full power and authority (corporate and other) to
      own,
      lease and operate its respective
      properties
      and conduct its respective
      business
      as described in the SEC Documents; the Company and
      each
      Subsidiary is
      duly
      qualified to do business as a foreign corporation and is in good standing in
      each jurisdiction in which the ownership or leasing of its respective
      properties
      or the conduct of its respective
      business
      requires such qualification, except where the failure to be so qualified or
      be
      in good standing would not have a material adverse effect on the business,
      prospects, condition
      (financial or otherwise), and results of operations of the Company and
      Subsidiary taken
      as
      a whole; no proceeding has been instituted in any such jurisdiction, revoking,
      limiting or curtailing, or seeking to revoke, limit or curtail, such power
      and
      authority or qualification; the Company and
      each
      Subsidiary is
      in
      possession of,
      and
      operating in compliance with,
      all
      authorizations, licenses, certificates, consents, orders and permits from state,
      federal,
      foreign
      and
      other regulatory authorities that are material to the conduct of its business,
      all of which are valid and in full force and effect; neither
      the
      Company nor
      either Subsidiary is
      in
      violation of its respective
      charter
      or bylaws or in default in the performance or observance of any obligation,
      agreement, covenant or condition contained in any material bond, debenture,
      note
      or other evidence of indebtedness, or in any material lease, contract,
      indenture, mortgage, deed of trust, loan agreement, joint venture or other
      agreement or instrument to which it is a party or by which it or its
respective
      properties
      or assets may be bound,
      which
      violation or default would have a material adverse effect on the business,
      prospects, financial condition or results of operations of the Company and
      the
      Subsidiaries taken as a whole;
      and
neither
      the
      Company nor
      any
      Subsidiary is
      in
      violation of any law, order, rule, regulation, writ, injunction, judgment or
      decree of any court, government or governmental agency or body, domestic or
      foreign, having jurisdiction over the Company or
      such
      Subsidiary or
      over
      its respective
      properties
      or assets,
      which
      violation would have a material adverse effect on the business, prospects,
      financial condition or results of operations of the Company and the Subsidiaries
      taken as a whole.
      The SEC
      Documents accurately describe any corporation, association or other entity
      owned
      or controlled, directly or indirectly, by the Company
      or any
      Subsidiary.

     

    (d) The
      Company has full legal right, power and authority to enter into this Agreement
      and to perform the transactions contemplated hereby. This Agreement has been
      duly authorized, executed and delivered by the Company and is a valid and
      binding agreement on the part of the Company, enforceable in accordance with
      its
respective
      terms;
      the performance of this Agreement and the consummation of the transactions
      herein contemplated will not result in a breach or violation of any of the
      terms
      and provisions of, or constitute a default under, (i) any bond, debenture,
      note
      or other evidence of indebtedness, or under any lease, contract, indenture,
      mortgage, deed of trust, loan agreement, joint venture or other agreement or
      instrument to which the Company or
      either
      Subsidiary is
      a
      party or by which its respective
      properties
      or assets may be bound, (ii) the charter or bylaws of the Company
      or
      either Subsidiary,
      or
      (iii) any law, order, rule, regulation, writ, injunction, judgment or decree
      of
      any court, government or governmental agency or body, domestic or foreign,
      having jurisdiction over the Company or
      either
      Subsidiary or
      over
      its respective
      properties
      or assets,
      which
      violation or default would have a material adverse effect on the business,
      prospects, financial condition or results of operations of the Company and
      the
      Subsidiaries taken as a whole.
      No
      consent, approval, authorization or order of,
      or
      qualification with,
      any
      court, government or governmental agency or body, domestic or foreign, having
      jurisdiction over the Company or
      either
      Subsidiary or
      over
      its respective
      properties
      or assets is required for the execution and delivery of this Agreement and
      the
      consummation by the Company of the transactions herein and therein contemplated,
      except such as may be required under the Securities
      Act
      or
      under state or other securities or blue
      sky
      laws,
      all of which requirements have been,
      or in
      accordance therewith will be,
      satisfied in all material respects.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (e) There
      is
      not any pending or, to the best of the Company's knowledge, threatened, action,
      suit, claim or proceeding against the Company
      or
      either Subsidiary,
      or any
      of its respective
      officers
      or any of its properties, assets or rights, before any court, government or
      governmental agency or body, domestic or foreign, having jurisdiction over
      the
      Company or
      either
      Subsidiary or
      over
      its officers or properties or otherwise that (i) is reasonably likely to result
      in any material adverse change in the business,
      prospects, financial condition
      or results of operations of the Company and
      the
      Subsidiaries taken as a whole or
      might
      materially and adversely affect their properties, assets or rights taken
      as
      a whole, (ii)
      might prevent consummation of the transactions contemplated by this Agreement,
      (iii) will be required to be disclosed in a Registration Statement,
      except
      to the extent heretofore disclosed in the SEC Documents, or (iv) alleging
      violation of any Federal or state securities laws.

     

    (f) The
      authorized capital stock of the Company consists of 300,000,000 shares of Common
      Stock, of which 25,711,893
      shares
      of
      Common Stock are outstanding, and 5,000,000 shares of preferred stock, par
      value
      $0.001 per share, none of which is outstanding. All outstanding capital stock
      of
      The Grand Shell Landing, Inc. and 75% of the outstanding capital stock of Azur
      Shell Landing Resort, Inc. is owned beneficially and of record by the Company.
      Each of such outstanding shares of Common Stock and each outstanding share
      of
      capital stock of each Subsidiary, is duly and validly authorized, validly
      issued, fully paid, and nonassessable, has not been issued and is not owned
      or
      held in violation of any preemptive or similar right of stockholders. Except
      as
      disclosed in the SEC Documents, (i) there is no commitment, plan, or arrangement
      to issue, and no outstanding option, warrant, or other right calling for the
      issuance of, any share of capital stock of or any security or other instrument
      convertible into, exercisable for, or exchangeable for capital stock of the
      Company or either Subsidiary, except
      for an aggregate of 13,458,016 options and/or warrants currently
      outstanding
      to
      acquire shares of Common Stock,
      and
      (ii) except for debentures in an aggregate principal amount of $1,000,000 which
      are convertible into common stock of the Company, there is outstanding no
      security or other instrument convertible into or exchangeable for capital stock
      of the Company or Subsidiary. The
      Shares
      have been duly authorized for issuance and sale to the Purchaser pursuant
hereto
      and,
      when issued and delivered by the Company against payment therefor in accordance
      with the terms of this Agreement, will be duly and validly issued and fully
      paid
      and nonassessable, and will be sold free and clear of any pledge, lien, security
      interest, encumbrance, claim or equitable interest
      of any
      kind;
      and no
      preemptive or
      similar right,
      co-sale right, registration right, right of first refusal or other similar
      right
      of stockholders exists with respect to any of the Shares or the issuance and
      sale thereof other than those that have been expressly waived prior to the
      date
      hereof and those that will automatically expire upon the execution hereof.
      No
      further approval or authorization of any stockholder, the Board of Directors
      of
      the Company or others is required for the issuance and sale or transfer of
      the
      Shares,
      except
      as
      may be required under the Securities Act, the rules
      and
regulations
      promulgated
      thereunder or
      under
      state or other securities or blue
      sky
      laws.
      The description of the Company's stock option, stock bonus and other stock
      plans
      or arrangements, and the options or other rights granted and exercised
      thereunder, set forth in the SEC Documents accurately and fairly presents the
      information required to be shown with respect to such plans, arrangements,
      options and rights under the Securities Act,
      the
      Exchange Act,
      and the
rules
      and
regulations
      promulgated thereunder.
      The
      Company has authorized and has reserved and covenants to continue to reserve,
      free of preemptive rights and other similar contractual rights of stockholders,
      a sufficient number of its authorized, but unissued, shares of its Common Stock
      to cover the Shares.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (g) Baum
      & Company, P.A. (the
      “Auditors”),
      which
      has examined the consolidated
      financial
      statements of the Company, together with the related schedules and notes,
      for
      the
      period from May 1, 2004 to April 30, 2005 and reviewed (but did not audit)
      the
      consolidated financial statements of the Company, together with the related
      schedules and notes for the period from May 1, 2005 to October 31,
      2005,
      and
      Goldstein Golub Kessler LLP, which has examined the consolidated financial
      statements of the Company, together with the related schedules and notes, for
      the period from May 1, 2003 to April 30, 2004, respectively,
      filed with the Commission as a part of the SEC Documents, and
      which,
      pursuant to the rules and regulations of the Commission
      are
to
      be
included
      in a Registration Statement, are independent accountants within the meaning
      of
      the Securities Act,
      the
      Exchange Act,
      and the
rules
      and
regulations
      promulgated thereunder;
      the
      audited consolidated
      financial
      statements of the Company, together with the related schedules and notes, and
      the unaudited financial information, forming part of the SEC Documents, fairly
      present and
      will
      fairly present the
      financial position and the results of operations of the Company at the
      respective dates and for the respective periods to which they apply; and all
      audited consolidated
      financial
      statements of the Company, together with the related schedules and notes, and
      the unaudited consolidated
      financial
      information, filed with the Commission as part of the SEC Documents,
complied
      and will comply as to form in all material respects with applicable accounting
      requirements and with the rules and regulations of the Commission with respect
      hereto when filed, have
      been
and
      will
      be prepared
      in accordance with generally accepted accounting principles consistently applied
      throughout the periods involved except as may be otherwise stated
      therein
      (except
      as may be indicated in the notes thereto or as permitted by the rules and
      regulations of the Commission) and fairly present and will fairly present,
      subject in the case of the unaudited consolidated financial statements, to
      customary year end audit adjustments, the financial position of the Company
      as
      at the dates thereof and the results of its operations and cash
      flows. The
      procedures pursuant to which the aforementioned consolidated financial
      statements have been audited are compliant with generally accepted auditing
      standards. The
      selected and summary consolidated
      financial
      and statistical data included in the SEC Documents present and
      will
      present fairly
      the information shown therein and have been compiled on a basis consistent
      with
      the audited consolidated
      financial
      statements presented therein. No other financial statements or schedules are
      required to be included in the SEC Documents. 

     

    (h) Subsequent
      to the respective dates as of which information is given in the SEC Documents,
      there has not been (i) any material adverse change in the business,
      prospects, financial condition
      or results of operations of the Company
      and the
      Subsidiaries taken as a whole,
      (ii)
      any transaction
      committed to or consummated
      that is
      material to the Company
      and the
      Subsidiaries taken as a whole,
      (iii)
      any obligation, direct or contingent, that is material to the
      Company
      and the
      Subsidiaries taken as a whole
      incurred
      by the Company
      or
      either Subsidiary,
      except
such
      obligations
      as
      have
      been incurred
      in the ordinary course of business, (iv) any change in the capital stock or
      outstanding indebtedness of the Company or
      either
      Subsidiary that
      is
      material to the Company
      and the
      Subsidiaries taken as whole,
      (v) any
      dividend or distribution of any kind declared, paid,
      or made
      on the capital stock of the Company, or (vi) any loss or damage (whether or
      not
      insured) to the property of the Company or
      either
      Subsidiary which
      has
      a material adverse effect on the business,
      prospects, condition
      (financial or otherwise), or results of operations of the Company
      and the
      Subsidiaries taken as a whole.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (i) Except
      as
      set forth in the SEC Documents, (i) the Company and
      each
      Subsidiary has
      good
      and marketable title to all properties and assets described in the SEC Documents
      as owned by it, free and clear of any pledge, lien, security interest,
      encumbrance, claim or equitable interest, other than such as would not have
      a
      material adverse effect on the business,
      prospects, financial condition
      or
      results of operations
      of the Company
      and the
      Subsidiaries taken as a whole,
      (ii)
      the agreements to which the Company and
      either Subsidiary is
      a
      party described in the SEC Documents are legal,
      valid
      and
      binding agreements,
      enforceable by the Company or
      either
      Subsidiary, as applicable, in
      accordance with their terms, and, to the best of the Company's knowledge, the
      other contracting party or parties thereto are not in breach or default under
      any of such agreements, and (iii) the Company and
      each
      Subsidiary has
      valid
      and enforceable leases for all properties described in the SEC Documents
      as
      leased
      by it.
      Except
      as
      set forth in the SEC Documents, the Company and
      each
      Subsidiary owns
      or
      leases all such properties as are necessary to its respective
      operations
      as now conducted and as described in the SEC Documents.

     

    (j) The
      Company and
      each
      Subsidiary has
      timely filed all respective
      federal,
      state, local and foreign tax returns required to be filed by it and has paid
      all
      taxes shown thereon as due, and there is no tax deficiency that has been or,
      to
      the best of the Company's knowledge, is likely to be asserted against the
      Company
      or
      either Subsidiary if audited,
      which
      might have a material adverse effect on the business,
      prospects, financial condition
      or results of operations of the Company
      and the
      Subsidiaries taken as a whole,
      and all
      tax liabilities are adequately provided for on the books of the
      Company
      and the
      Subsidiaries.

     

    (k) The
      Company and
      each
      Subsidiary maintains
      insurance with insurers of recognized financial responsibility of the types
      and
      in the amounts generally deemed adequate for its business including, but not
      limited to, insurance covering real and personal property owned or leased by
      the
      Company or
      such
      Subsidiary, as applicable, against
      theft, damage, destruction, acts of vandalism,
      and all
      other risks customarily insured against, all of which insurance is in full
      force
      and effect; neither
      the
      Company nor
      either Subsidiary has
      been
      refused any insurance coverage sought or applied for; and neither
      the
      Company nor
      either Subsidiary does
      has
      reason to believe that it will not be able to renew its existing insurance
      coverage as and when such coverage expires or to obtain similar coverage from
      similar insurers as may be necessary to continue its business at a cost that
      would not materially and adversely affect the business,
      prospects, condition
      , or results of
      operations
      of the Company
      and the
      Subsidiaries taken as a whole.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (l) No
      labor
      disturbance by the employees of the Company or
      either
      Subsidiary exists
      or, to the best of the Company’s knowledge, is imminent. The Company is not
      aware of any existing or imminent labor disturbance by the employees of any
      principal suppliers or customers of
      the
      Company or either Subsidiary that
      might be expected to result in any material adverse change in the business,
      prospects, condition
      (financial or otherwise), or results of operations of the Company
      and the
      Subsidiaries taken as a whole.
      No
      collective bargaining agreement exists with any of the Company’s
      or
      either
      Subsidiary’s employees
      and, to the best of the Company's knowledge, no such agreement is
      imminent.

     

    (m) The
      Company
      and
      Subsidiary owns
      or
      possesses adequate rights to use all patents, patent rights, inventions, trade
      secrets, know-how, trademarks, service marks, trade names,
      logos,
      and
      copyrights described or referred to in the SEC Documents as owned by or used
      by
      it or that are necessary to conduct its respective
      businesses
      as described in the SEC Documents; neither
      the
      Company nor
      either Subsidiary has
      received any notice of, or has knowledge of, any infringement of or conflict
      with asserted rights of the Company or
      either
      Subsidiary by
      others
      with respect to any patents, patent rights, inventions, trade secrets, know-how,
      trademarks, service marks, trade names,
      logos,
      or
      copyrights described or referred to in the SEC Documents as owned by or used
      by
      it; and neither
      the
      Company nor
      either Subsidiary has
      received any notice of, or has knowledge of, any infringement of,
      or
      conflict with,
      asserted
      rights of others with respect to any patents, patent rights, inventions, trade
      secrets, know-how, trademarks, service marks, trade names,
      logos,
      or
      copyrights described or referred to in the SEC Documents as owned by or used
      by
      it or which, individually or in the aggregate, in the event of an unfavorable
      decision, ruling or finding, would have a material adverse effect on the
business,
      prospects, financial condition
      or results of operations of the Company
      and the
      Subsidiaries taken as a whole.
      

     

    (n) The
      Company has been advised concerning the Investment Company Act of 1940, as
      amended (the “Investment
      Company Act”),
      and
      the rules and regulations thereunder, and has in the past conducted, and intends
      in the future,
      to
      conduct its affairs in such a manner as to ensure that it is not and will not
      become an “investment
      company”
      or a
      company “controlled”
      by an “investment company”
      within
      the meaning of the Investment Company Act and such rules and regulations.

     

    (o) Neither
      the
      Company nor
      either Subsidiary has,
      and no
      person or entity acting on behalf or at the request of the Company or either
      Subsidiary has,
      at any
      time during the last five years (i) made any unlawful contribution to any
      candidate for foreign office or failed to disclose fully any contribution in
      violation of law, or (ii) made any payment to any federal or state governmental
      officer or official, or other person charged with similar public or quasi-public
      duties, other than payments required or permitted by the laws of the United
      States or any other applicable jurisdiction.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (p) Neither
      the
      Company nor
      either Subsidiary, nor any person acting on behalf thereof, has
      taken
      or will take, directly or indirectly, any action designed to,
      or that
      might reasonably be expected to cause or result in,
      stabilization in violation of law,
      or
      manipulation,
      of the
      price of the Common Stock to facilitate the sale or resale of the
      Shares.

     

    (q)  Except
      as
      set forth in the SEC Documents, (i) the Company and
      each
      Subsidiary is
      in
      compliance in
      all
      material respects with
      all
      rules, laws and regulations relating to the use, treatment, storage and disposal
      of toxic substances and protection of health or the environment (“Environmental
      Laws”)
      that
      are applicable to its business, (ii) neither
      the
      Company nor
      either Subsidiary has
      received notice from any governmental authority or third party of an asserted
      claim under Environmental Laws, which claim is required to be disclosed in
      the
      SEC Documents, (iii) to the best knowledge
      of the
      Company,
      neither
      the
      Company nor
      either Subsidiary is
      likely
      to be required to make future material capital expenditures to comply with
      Environmental Laws (iv) no property which is owned, leased or occupied by the
      Company or
      either
      Subsidiary has
      been
      designated as a Superfund site pursuant to the Comprehensive Response,
      Compensation, and Liability Act of 1980, as amended (42 U.S.C. §
      9601,
et seq.),
      or
      otherwise designated as a contaminated site under applicable state or local
      law,
      and (v) neither
      the
      Company nor
      either Subsidiary is
      in
      violation of any federal or state law or regulation relating to occupational
      safety or health.

     

    (r) The
      books, records and accounts of the Company and each Subsidiary accurately and
      fairly reflect, in reasonable detail, the transactions in, and dispositions
      of,
      the assets of, and the results of operations of, the Company and such
      Subsidiary, as applicable, respectively, all to the extent required by generally
      accepted accounting principles. The Company and each Subsidiary maintains a
      system of internal accounting controls sufficient to provide reasonable
      assurances 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 accordance with generally
      accepted accounting principles and to maintain asset accountability, (iii)
      access to assets is permitted only in accordance with management’s general or
      specific authorization 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.

     

    (s) There
      are
      no outstanding loans, advances (except normal advances for business expenses
      in
      the ordinary course of business) or guarantees of indebtedness by the Company
      or
      either
      Subsidiary to,
      or for
      the benefit of,
      any of
      the officers, directors,
      or
      director-nominees of the Company or
      either
      Subsidiary or
      any of
      the members of the families of any of them, except as disclosed in the SEC
      Documents
      and
      except for obligations of the Company or either Subsidiary to Carl
      Crawford.
      

     

    (t) Neither
      the
      Company nor
      either Subsidiary has
      incurred any liability, direct or indirect, for finders' or similar fees on
      behalf of or payable by the Company or
      either
      Subsidiary or
      the
      Purchaser in connection with the Transaction Agreements or any other transaction
      involving the Company and the Purchaser.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (u) No
      stockholder of the Company has any right (which has not been waived or has
      not
      expired by reason of lapse of time following notification of the Company’s
      intent to file any Registration Statement) to request or require the Company
      to
      register the sale of any shares owned by such stockholder under the Securities
      Act in such Registration Statement, except those stockholders who are listed
      in
      the Selling Stockholders table in the Initial Registration
      Statement.

     

    (v) Neither
      the Company or Subsidiary, nor, to the best knowledge of the Company, any
      director, officer, agent, employee, or other person associated with, or acting
      on behalf of, the Company or either Subsidiary, has, directly or indirectly:
      used any corporate funds for unlawful contributions, gifts, entertainment,
      or
      other unlawful expenses relating to political activity; made any unlawful
      payment to foreign or domestic government officials or employees or to foreign
      or domestic political parties or campaigns from corporate funds; violated any
      provision of the Foreign Corrupt Practices Act of 1977, as amended; or made
      any
      bribe, rebate, payoff, influence payment, kickback, or other unlawful payment.
      The Company's internal accounting controls and procedures are sufficient to
      cause the Company and each Subsidiary to comply in all respects with the Foreign
      Corrupt Practices Act of 1977, as amended.

     

    (w) Except
      for Donald Goree, Donald Winfrey and Carl Crawford, no
      director, officer, shareholder or employee of the Company or either Subsidiary
      has any interest, whether as an employee, officer, director, shareholder, agent,
      independent contractor, security holder, creditor, consultant, or otherwise
      (other than as less than 1% shareholder of a publicly traded company), either
      directly or indirectly, in any person (whether a corporation, partnership,
      limited partnership, limited liability company, limited liability partnership,
      business trust, sole proprietorship, or otherwise) that presently (i) provides
      any services or designs, produces and/or sells any products or product lines,
      or
      engages in any activity which is the same, similar to or competitive with any
      activity or business in which the Company or either Subsidiary is now engaged;
      (ii) is a supplier of, customer of, creditor of, or has an existing contractual
      relationship with the Company or either Subsidiary; or (iii) has any direct
      or
      indirect interest in any asset or property used by the Company or either
      Subsidiary or any property, real or personal, tangible or intangible, that
      is
      necessary or desirable for the conduct of the business of the Company or either
      Subsidiary. No current or former stockholder, director, officer or employee
      of
      any member of the Company or either Subsidiary or any affiliate thereof, is
      at
      present, or since the inception of the Company has been, directly or indirectly
      through his affiliation with any other person, a party to any transaction (other
      than as an employee) with the Company or either Subsidiary providing for the
      furnishing of services by, or rental of real or personal property from, or
      otherwise requiring cash payments to any such person.

     

    Section
      2.02 Representations,
      Warranties and Covenants of the Purchaser.
      The
      Purchaser represents and warrants to the Company as follows:

     

    (a) The
      Purchaser is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of its jurisdiction of formation. The Company
      is a
“special purpose vehicle” formed solely for the purpose of the transactions
      contemplated by this Agreement. The Purchaser has limited capital, not to exceed
      the proceeds of one Tranche. The Company acknowledges and agrees that the
      members of the Purchaser shall have no liability under any circumstance for
      any
      action, inaction, or default by the Purchaser. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b) The
      Purchaser has full legal right, power and authority to enter into this Agreement
      and to perform the transactions contemplated hereby. This Agreement has been
      duly authorized, executed and delivered by the Purchaser. The execution,
      delivery and performance of this Agreement by the Purchaser and the consummation
      of the transactions herein contemplated will not violate any provision of the
      organizational documents of the Purchaser and will not result in the creation
      of
      any lien, charge, security interest or encumbrance upon any assets or property
      of the Purchaser pursuant to the terms or provisions of, or will not conflict
      with, result in the breach or violation of, or constitute, either by itself
      or
      upon notice or the passage of time or both, a default under any agreement,
      mortgage, deed of trust, lease, franchise, license, indenture, permit or other
      instrument to which the Purchaser is a party or by which the Purchaser or any
      of
      its assets or properties may be bound or affected or any statute or any
      authorization, judgment, decree, order, rule or regulation of any court or
      any
      regulatory body, administrative agency or other governmental body applicable
      to
      the Purchaser or any of its properties. No consent, approval, authorization
      or
      other order of any court, regulatory body, administrative agency or other
      governmental body is required for the execution, delivery and performance by
      the
      Purchaser of this Agreement or the consummation by the Purchaser of the
      transactions contemplated hereby, other than approvals of the relevant
      securities authorities. Assuming the valid execution hereof by the Company,
      this
      Agreement will constitute the legal, valid and binding obligation of the
      Purchaser, enforceable in accordance with its terms, except as enforceability
      may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
      or similar laws affecting creditors’ rights generally and except as
      enforceability may be subject to general principles of equity (regardless of
      whether such enforceability is considered in a proceeding in equity or at law)
      and except as the indemnification agreements of the Purchaser in Section 3.03
      hereof may be legally unenforceable.

     

    (c) There
      are
      no legal or governmental actions, suits or proceedings pending or, to the
      Purchaser’s knowledge, threatened to which the Purchaser is or may be a party
      which seeks to prevent or restrain the transactions contemplated by this
      Agreement or to recover damages as a result of the consummation of such
      transactions. To the knowledge of the Purchaser, the Purchaser has not been
      and
      is not currently the subject of an investigation or inquiry by the Commission,
      National Association of Securities Dealers, Inc., NASD Regulation, Inc., or
      any
      state securities commission.

     

    (d) The
      Purchaser is knowledgeable, sophisticated and experienced in making, and is
      qualified to make, decisions with respect to investments in shares representing
      an investment decision like that involved in the purchase of the Shares. The
      Purchaser is an “accredited investor” within the meaning of Rule 501(a) of
      Regulation D promulgated under the Securities Act. The Purchaser is not a
“dealer” within the meaning of the Securities Act or a “broker” or “dealer”
within the meaning of the Exchange Act. The Purchaser is able to bear the
      economic risk of loss of the Purchaser’s entire investment in the
      Shares.

     

    (e) The
      Purchaser has requested, received, reviewed and considered all information
      it
      deems relevant in making an informed decision to purchase the Shares.

     

    (f) The
      Purchaser is acquiring the Shares in the ordinary course of its business and
      for
      its own account for investment only and with no present intention of
      distributing any of such Shares in violation of the Securities Act or entering
      into any arrangement or understanding with any other person regarding the
      distribution of such Shares in violation of the Securities Act (it being
      understood that the foregoing does not limit the Purchaser’s right to sell
      Shares pursuant to any Registration Statement).

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (g) Except
      for the representations and warranties contained in this Section 2.02, the
      Purchaser makes no representation or warranty to the Company, express or
      implied, in connection with the transactions contemplated by this
      Agreement.

     

    Section
      2.03 Survival
      of Representations, Warranties and Agreements.
      Notwithstanding
      any investigation made by any party to this Agreement, all covenants,
      agreements, representations and warranties made by the Company and the Purchaser
      herein and in the certificates delivered pursuant hereto shall survive the
      execution of this Agreement, the
      termination
      of Purchaser’s obligations to purchase the Shares, and the
      delivery to the Purchaser of the Shares being purchased and the payment
      therefor.

     

     

    ARTICLE
      III

     

    COVENANTS

     

    Section
      3.01 Covenants
      of the Company.

     

    (a) (i) (A) As
      soon
      as practicable, but in any event no later than 30 days following the date of
      this Agreement, the Company shall prepare and file with the Commission a
      registration statement on Form SB-2 or other applicable form as determined
      by
      the Company (the “Initial
      Registration Statement”)
      for
      the purpose of registering the resale of the Shares by the Purchaser from time
      to time on the facilities of any securities exchange or trading system on which
      the Common Stock is then traded or in privately-negotiated transactions, which
      Initial Registration Statement shall contain all material non-public information
      disclosed to the Purchasers by the Company in connection with the issuance
      and
      sale of the Shares. For purposes of this Section 3.01(a), the term “Shares”
shall
      include any other securities of the Company issued in exchange for the Shares,
      as a dividend on the Shares or in connection with a stock split or other
      reorganization transaction affecting the Shares. The Company shall register
      in
      such Initial Registration Statement a number of Shares equal to 200% of the
      number of Shares issuable at the Initial Base Price (as defined in Schedule
      1.01(a)) on the date of the filing of the Initial Registration Statement. The
      Company shall use its commercially reasonable efforts to cause the Initial
      Registration Statement to become effective as soon as practicable and in any
      event by September 30, 2006 (the “Initial
      Registration Statement Effectiveness Deadline”).

     

    (B) In
      the
      event that the number of Shares included in the Initial Registration Statement
      and any Additional Registration Statement (as hereinafter defined) that have
      not
      been theretofore sold to the Purchaser pursuant hereto (the “Remaining
      Registered Shares”)
      shall
      at any time be less than 200% of the number of Shares that would be required
      if
      all Tranches not theretofore sold by the Company to the Purchaser were then
      to
      be sold by the Company to the Purchaser pursuant hereto (such circumstance,
      a
“Registered
      Share Deficiency”)
      as
      soon as
      practicable thereafter, but in any event no later than 20 days following the
      date of such Registered Share Deficiency, the Company shall prepare and file
      with the Commission an additional registration statement on Form SB-2 or other
      applicable form as determined by the Company (an “Additional
      Registration Statement”)
      for
      the purpose of registering the resale of at least such additional number of
      Shares by the Purchaser from time to time on the facilities of any securities
      exchange or trading system on which the Common Stock is then traded or in
      privately-negotiated transactions as shall cure such Remaining Share Deficiency.
      Each Additional Initial Registration Statement shall contain all material
      non-public information disclosed to the Purchasers by the Company in connection
      with the issuance and sale of the Shares. The Company shall use its commercially
      reasonable efforts to cause each Additional Registration Statement to become
      effective as soon as practicable. For purposes hereof, the Initial Registration
      Statement and any Additional Registration Statements shall be referred to
      generically each as a “Registration
      Statement”
and
      collectively as “Registration
      Statements”.  

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (C) Purchaser’s
      only remedy for
      any
      breach by the Company prior to the Tranche Closing Date of the first Tranche
      Shares purchased and sold under this Agreement of any of he covenants contained
      in Section 3.01 of this Agreement (other than Section 2.01(q)) shall be to
      terminate this Agreement. In such event, Purchaser shall not be entitled to
      recovery of any damages from the Company. For any breach by the Company at
      any
      time of Section 3.01(q) or any breach by the Company of any of the other
      covenants contained in Section 3.01 of this Agreement occurring after the first
      Tranche Closing Date, the Purchaser shall be entitled to seek damages against
      the Company, in addition to terminating this Agreement and any other remedies
      which may be available to the Purchaser.

     

    (ii) The
      Company shall prepare and file with the Commission such amendments and
      supplements to each Registration Statement and the prospectus forming a part
      thereof as may be necessary to keep such Registration Statement effective until
      the earliest date, after the date on which all of the Shares have been purchased
      pursuant to this Agreement or the obligation of the Purchaser to purchase the
      Shares pursuant to this Agreement has been terminated, on which (i) all the
      Shares have been disposed of pursuant to the Registration Statements, (ii)
      all
      of the Shares then held by the Purchaser may be sold under the provisions of
      Rule 144 without limitation as to volume, whether pursuant to Rule 144(k) or
      otherwise, or (iii) the Company has determined that all Shares then held by
      the
      Purchaser may be sold without restriction under the Securities Act and has
      removed any stop transfer instructions relating to such Shares and offered
      to
      cause to be removed any restrictive legends on the certificates, if any
      representing such Shares (the period between the Effective Date and the earliest
      of such dates is referred to herein as the “Registration
      Period”).
      At
      any time after the end of the Registration Period, the Company may withdraw
      the
      Registration Statements and its obligations under this Section 3.01(a) shall
      automatically terminate. 

     

    (iii) The
      Company shall not be obligated to prepare and to file
      a
      post-effective amendment or supplement to each Registration Statement or the
      prospectus constituting a part thereof during the continuance of a Blackout
      Event;
      provided, however, that Blackout Events may not exist for more than an aggregate
      of 60 days
      during
      the term of this Agreement.
      A
“Blackout
      Event”
means
      any of the following: (a) the possession by the Company of material information
      that is not ripe for disclosure in a registration statement or prospectus,
      as
      determined reasonably
      and in
      good
      faith by the Chief Executive Officer or the Board of Directors of the Company
      or
      that disclosure of such information in a Registration Statement or the
      prospectus constituting a part thereof would be materially detrimental to the
      business and affairs of the Company; or (b) any material engagement or activity
      by the Company which would, in the reasonable
      and good
      faith determination of the Chief Executive Officer or the Board of Directors
      of
      the Company, be materially adversely affected by disclosure in a Registration
      Statement or prospectus at such time.
      Without
      the express written consent of the Purchaser, if required to permit the
      continued sale of Shares by the Purchaser, a post-effective amendment or
      supplement to any Registration Statement or the prospectus constituting a part
      thereof must be filed no later than the 61st
      day
      following commencement of a Blackout Event and be declared by the Commission
      to
      be effective under the Securities Act within ten Business Days following the
      filing thereof. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (iv) At
      least
      five (5) Business Days prior to the filing with the Commission of any
      Registration Statement (or any amendment or supplement thereto) or the
      prospectus forming a part thereof (or any supplement thereto), the Company
      shall
      provide draft copies thereof to the Purchaser and shall consider incorporating
      into such documents such comments as the Purchaser (and its counsel) may propose
      to be incorporated therein. 

     

    (v) The
      Company shall promptly notify the Purchaser upon the occurrence of any of the
      following events in respect of any Registration Statement or the prospectus
      forming a part thereof: (i) receipt of any request for additional information
      from the Commission or any other federal or state governmental authority during
      the Registration Period, the response to which would require any amendments
      or
      supplements to any Registration Statement or related prospectus; (ii) the
      issuance by the Commission or any other federal or state governmental authority
      of any stop order suspending the effectiveness of any Registration Statement
      or
      the initiation of any proceedings for that purpose; or (iii) receipt of any
      notification with respect to the suspension of the qualification or exemption
      from qualification of any of the Shares for sale in any jurisdiction or the
      initiation or threatening of any proceeding for such purpose.

     

    (vi) The
      Company shall furnish to the Purchaser with respect to the Shares registered
      under any Registration Statement (and to each underwriter, if any, of such
      Shares) such number of copies of prospectuses and such other documents as the
      Purchaser may reasonably request, in order to facilitate the public sale or
      other disposition of all or any of the Shares by the Purchaser pursuant to
      such
      Registration Statement.

     

    (vii) The
      Company shall file or cause to be filed such documents as are required to be
      filed by the Company for normal state securities law or “blue sky” clearance in
      states specified in writing by the Purchaser; provided,
      however,
      that
      the Company shall not be required to qualify to do business or consent to
      service of process in any jurisdiction in which it is not now so qualified
      or
      has not so consented.

     

    (viii) With
      a
      view to making available to the Purchaser the benefits of Rule 144, the Company
      agrees, from the date hereof and throughout the Registration Period and so
      long
      as the Purchaser owns Shares purchased pursuant to this Agreement,
      to:

     

    (A) comply
      with the provisions of paragraph (c)(1) of Rule 144; and

     

    (B) file
      with
      the Commission in a timely manner all reports and other documents required
      to be
      filed by the Company pursuant to Section 13, 14 or 15(d) under the Exchange
      Act;
      and, if at any time it is not required to file such reports but in the past
      had
      been required to or did file such reports, it will, upon the request of the
      Purchaser, make available other information as required by, and so long as
      necessary to permit sales of its Shares pursuant to, Rule 144.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (ix) The
      Company shall bear all expenses incurred by it in connection with the procedures
      in paragraphs (i) through (ix) of this Section 3.01(a) and the registration
      of
      the Shares pursuant to the Registration Statement and
      qualification of the shares under applicable state securities laws.
      The
      Company shall not be responsible for any expenses incurred by the Purchaser
      in
      connection with its sale of the Shares or its participation in the procedures
      in
      paragraphs (i) through (ix) of this Section 3.01(a), including, without
      limitation, any fees and expenses of counsel or other advisers to the Purchaser
      and any underwriting discounts, brokerage fees and commissions incurred by
      the
      Purchaser.

     

    (b) (i) The
      Company may refuse to register (or permit its transfer agent to register) any
      transfer of any Shares not made in compliance with the Securities Act and for
      such purpose may place stop order instructions with its transfer agent with
      respect to the Shares.

     

    (c) So
      long
      as any Registration Statement is effective under the Securities Act covering
      the
      resale of Shares then still owned by the Purchaser, the Company shall furnish
      to
      the Purchaser: 

     

    (i) as
      soon
      as practicable after available, one copy of (A) its Annual Report to
      Stockholders (which Annual Report shall contain financial statements audited
      in
      accordance with generally accepted accounting principles by a firm of certified
      public accountants), (B) upon written request, its Annual Report on Form 10-KSB,
      (C) upon written request, its Quarterly Reports on Form 10-QSB, (D) upon written
      request, its Current Reports on Form 8-K, and (E) a full copy of each
      Registration Statement (the foregoing, in each case, excluding exhibits);
      and

     

    (ii) upon
      the
      written request of the Purchaser, all exhibits excluded by the parenthetical
      to
      subparagraph (i)(E) of this Section 3.01(d).

     

    (d) The
      Company will maintain a transfer agent and, if necessary under the jurisdiction
      of incorporation of the Company, a registrar (which may be the same entity
      as
      the transfer agent) for its Common Stock,
      which
      transfer agent and registration shall be reasonably satisfactory to the
      Purchaser.

     

    (e) If
      at any
      time prior
      to
      the termination of the Registration Period,
      any
      rumor, publication or event relating to or affecting the Company shall occur
      as
      a result of which,
      in the
      reasonable opinion of
      the
      Purchaser, the
      market price of the Common Stock has been or is likely to be materially affected
      (regardless of whether such rumor, publication or event necessitates a
      supplement to,
      or
      amendment of,
      the
      Prospectus), the Company will, if reasonably requested by the Purchaser,
      forthwith prepare, and, if permitted by law, disseminate a press release or
      other public statement, reasonably satisfactory to the Purchaser, responding
      to
      or commenting on such rumor, publication or event.

     

    (f) The
      Company agrees to comply in all respects with the Sarbanes-Oxley Act of 2002
      and
      the regulations promulgated pursuant thereto if it is not in compliance at
      the
      date hereof.

     

    
      
        
        

      

      
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    (g) Until
      the
      earlier of the termination of this Agreement and the Closing of the purchase
      of
      the final Tranche Shares hereunder (the earlier of such events, the
“Release
      Time”),
      no
      amendment will be made in the certificate of incorporation or by-laws (or,
      in
      each case, the comparable charter documents, if any, under applicable law)
      of
      the Company without the prior written consent of the Purchaser.

     

    (h) Until
      the
      Release Time, no share of capital stock of the Company, option or warrant for
      any such share, right to subscribe to or purchase any such share, or security
      convertible into, or exchangeable or exercisable for, any such share, shall
      be
      issued or sold by the Company, otherwise than as contemplated by, or in
      connection with, this Agreement.

     

    (i) Until
      the
      Release Time, no dividend or liquidating or other distribution or stock split
      shall be authorized, declared, paid, or effected by the Company in respect
      of
      the outstanding shares of capital stock of the Company. Until the Release Time,
      no direct or indirect redemption, purchase, or other acquisition shall be made
      by the Company or any affiliate thereof of shares of capital stock of the
      Company.

     

    (j) Until
      the
      Release Time, the Company will afford the officers, directors, employees,
      counsel, agents, investment bankers, accountants, and other representatives
      of
      the Purchaser free and full access to the plants, properties, books, and records
      of the Company, will permit them to make extracts from and copies of such books
      and records, and will from time to time furnish the Purchaser with such
      additional financial and operating data and other information as to the
      business, prospects, financial condition, and results of operations of the
      Company as the Purchaser from time to time may request. Until the Release Time,
      the Company will cause the independent certified public accountants thereof
      to
      make available to the Purchaser and its independent certified public accountants
      the work papers relating to the audits of the Company referenced in this
      Agreement.

     

    (l) Until
      the
      Release Time, the Company will conduct its affairs so that at each Closing,
      no
      representation or warranty of the Company will be inaccurate in any material
      respect, no covenant or agreement of the Company will be breached, and no
      condition in this Agreement will remain unfulfilled by reason of the actions
      or
      omissions of the Company. Except as otherwise consented to by the Purchaser
      in
      writing, until the Release Time, the Company will use its best efforts to
      preserve the business operations of the Company intact, to keep available the
      services of its present personnel, to preserve in full force and effect the
      contracts, agreements, instruments, leases, licenses, arrangements, and
      understandings of the Company, and to preserve the good will of its suppliers,
      customers, and others having business relations with any of them. Until the
      Release Time, the Company will conduct its affairs in all respects only in
      the
      ordinary course, other than in connection with the matters referenced
      herein.

     

    (m) Until
      the
      Release Time, the Company will immediately advise the Purchaser in a detailed
      written notice of any material fact or occurrence or any pending or threatened
      material occurrence of which it obtains knowledge and which (if existing and
      known at the date of the execution of this Agreement) would have been required
      to be set forth or disclosed in or pursuant to this Agreement, which (if
      existing and known at any time prior to or at the relevant Tranche Closing)
      would make the performance by any party of a covenant contained in this
      Agreement impossible or make such performance materially more difficult than
      in
      the absence of such fact or occurrence, or which (if existing and known at
      the
      time of the applicable Tranche Closing) would cause a condition to any party’s
      obligations under this Agreement not to be fully satisfied.

     

    
      
        
        

      

      
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    (n) Before
      the Company releases any information concerning this Agreement or any of the
      transactions contemplated by this Agreement which is intended for, or may result
      in, public dissemination thereof, the Company shall cooperate with the
      Purchaser, shall furnish drafts of all documents or proposed oral statements
      to
      the Purchaser for comment, and shall not release any such information without
      the written consent of Purchaser, which consent shall not be unreasonably
      withheld. Nothing contained herein shall prevent the Company from releasing
      any
      information if required to do so by law.

     

    (o) The
      Company shall timely prepare and file any declaration or filing necessary to
      comply with any transfer tax statutes that require any such filing before the
      relevant Tranche Closing.

     

    (p) The
      Company shall make such state securities law or “blue sky” filings and obtain
      such state securities law or “blue sky” filings as shall be reasonably requested
      by the Purchaser, provided, however, that the Company shall not be required
      to
      qualify to do business or to become subject to general service of process in
      any
      such jurisdiction.

     

    (q) The
      Company shall pay to the Purchaser a non-refundable due diligence fee equal
      to
      $150,000, of
      which
      $25,000 shall be payable by April 3, 2006, and of which $125,000 shall be
      payable on the date of the closing of Tranche 1 (and may be offset by Purchaser
      against the aggregate Tranche Purchase Price for such Tranche).

     

    Section
      3.02 Covenants
      of the Purchaser.

     

    (a) The
      Purchaser agrees to comply in all material respects with all federal and state
      securities laws and the rules and regulations promulgated thereunder in
      connection with any sale by it of the Shares, whether or not such sale is
      pursuant to any Registration Statement. In connection with the sale of any
      Shares pursuant to any Registration Statement, but without limiting the
      generality of the foregoing sentence, the Purchaser shall (i) comply with the
      provisions of Regulation M promulgated under the Exchange Act, and (ii) deliver
      to the purchaser of Shares the prospectus forming a part of such Registration
      Statement and all relevant supplements thereto which have been provided by
      the
      Company to the Purchaser on or prior to the applicable delivery
      date.

     

    (b) The
      Purchaser will cooperate with the Company in all material respects in connection
      with the performance by the Company of its obligations under Section 3.01(a),
      including timely supplying all information reasonably requested by the Company
      (which shall include all information regarding the Purchaser, and any person
      who
      beneficially owns Shares held by the Purchaser within the meaning of Rule 13d-3
      promulgated under the Exchange Act, and the proposed manner of sale of the
      Shares required to be disclosed in each Registration Statement) and executing
      and returning all documents reasonably requested in connection with the
      registration and sale of the Shares. The Purchaser hereby consents to be named
      as an underwriter in each Registration Statement, if applicable, in accordance
      with current Commission policy and, if necessary, to join in the request of
      the
      Company for the acceleration of the effectiveness of each Registration
      Statement.

     

    
      
        
        

      

      
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    (c) In
      connection with the sale of any Shares pursuant to any Registration Statement,
      the Purchaser shall deliver to the purchaser thereof the prospectus forming
      a
      part of such Registration Statement and all relevant supplements thereto which
      have been provided by the Company to the Purchaser on or prior to the applicable
      delivery date, all in accordance with the requirements of the Securities Act
      and
      the rules and regulations promulgated thereunder and any applicable blue sky
      laws. 

     

    (d) If
      at any
      time or from time to time after the Effective Date, the Company notifies the
      Purchaser in writing that any Registration Statement or the prospectus forming
      a
      part thereof (taking into account any prior amendments or supplements thereto)
      contains any untrue statement of a material fact or omits to state a material
      fact necessary to make the statements therein, in light of the circumstances
      under which they are made, not misleading, the Purchaser shall not offer or
      sell
      any Shares or engage in any other transaction involving or relating to the
      Shares (other than purchases of Shares pursuant to this Agreement), from the
      time of the giving of notice with respect to such untrue statement or omission
      until the Purchaser receives written notice from the Company that such untrue
      statement or omission no longer exists or has been corrected or disclosed in
      an
      effective post-effective amendment to such Registration Statement or a valid
      prospectus supplement to the prospectus forming a part thereof.

     

    (e) The
      Purchaser acknowledges and understands that the Shares are (or upon the issuance
      thereof will be) “restricted
      securities”
as
      defined in Rule 144. The Purchaser hereby agrees not to offer or sell (as such
      terms are defined in the Securities Act and the rules and regulations
      promulgated thereunder) any Shares unless such offer or sale is made (a)
      pursuant to an effective registration of such securities under the Securities
      Act, or (b) pursuant to an available exemption from the registration
      requirements of the Securities Act. The Purchaser agrees that it will not engage
      in hedging transactions with regard to the Shares other than in compliance
      with
      the Securities Act. A proposed transfer shall be deemed to comply with this
      Section 3.02(e) if the Purchaser delivers to the Company a legal opinion in
      form
      and substance reasonably satisfactory to the Company from counsel reasonably
      satisfactory to the Company to the effect that such transfer complies with
      this
      Section 3.02(e).

     

    Section
      3.03 Indemnification.

     

    (a) For
      the
      purpose of this Section 3.03: (i)
      the
      term “Purchaser
      Affiliate”
shall
      mean any person who controls the Purchaser within the meaning of Section 15
      of
      the Securities Act or Section 20 of the Exchange Act; and
      (ii) the
      term “Registration
      Statement”
shall
      include any final prospectus, exhibit, supplement or amendment included in
      or
      relating to any Registration Statement referred to in Section 3.01.

     

    
      
        
        

      

      
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    (i) The
      Company agrees to indemnify and hold harmless the Purchaser and each Purchaser
      Affiliate, against any losses, claims, damages, liabilities or expenses, joint
      or several, to which such Purchaser or such Purchaser Affiliate may become
      subject, under the Securities Act, the Exchange Act, or any other federal or
      state statutory law or regulation, or at common law or otherwise (including
      in
      settlement of any litigation, if such settlement is effected with the written
      consent of the Company, which consent shall not be unreasonably withheld),
      insofar as such losses, claims, damages, liabilities or expenses (or actions
      in
      respect thereof as contemplated below) arise out of or are based upon
      (A) any untrue statement or alleged untrue statement of any material fact
      contained in any Registration Statement, as amended as of the Effective Date,
      including any information deemed to be a part thereof as of the time of
      effectiveness pursuant to paragraph (b) of Rule 430A, or pursuant to Rule 434
      promulgated under the Securities Act, or the prospectus, in the form first
      filed
      with the Commission pursuant to Rule 424(b) of the Regulations, or filed as
      part
      of any Registration Statement at the time of effectiveness if no Rule 424(b)
      filing is required (the “Prospectus”),
      or
      any amendment or supplement thereto, (B) the omission or alleged omission to
      state in any Registration Statement as of the Effective Date a material fact
      required to be stated therein or necessary to make the statements in such
      Registration Statement or any post-effective amendment or supplement thereto,
      or
      in the Prospectus or any amendment or supplement thereto, not misleading, in
      each case in the light of the circumstances under which the statements contained
      therein were made, or (C) any inaccuracy in the representations and warranties
      of the Company contained in this Agreement, or any failure of the Company to
      perform its obligations hereunder, and will reimburse the Purchaser and each
      such Purchaser Affiliate for any legal and other expenses as such expenses
      which
      are reasonably incurred by the Purchaser or such Purchaser Affiliate in
      connection with investigating, defending, settling, compromising or paying
      any
      such loss, claim, damage, liability, expense or action; provided,
      however,
      that
      the Company will not be liable in any such case to the extent that any such
      loss, claim, damage, liability or expense arises solely out of or is based
      solely upon (A) an untrue statement or alleged untrue statement or omission
      or
      alleged omission made in any Registration Statement, the prospectus included
      therein, or any amendment or supplement thereto in reliance upon, and in
      conformity with, written information furnished to the Company by the Purchaser
      expressly for use therein, or (B) the failure of the Purchaser to comply with
      the covenants and agreements contained in Section 3.02 hereof, or (C) the
      inaccuracy of any representations made by the Purchaser herein or (D) any
      statement or omission in any Prospectus that is corrected or disclosed in any
      subsequent Prospectus that was delivered to the Purchaser prior to the pertinent
      sale or sales by the Purchaser.

     

    (ii) The
      Purchaser agrees to indemnify and hold harmless the Company, each of its
      directors, each of its officers who signed any Registration Statement and each
      person, if any, who controls the Company within the meaning of the Securities
      Act and the Exchange Act, against any losses, claims, damages, liabilities
      or
      expenses to which the Company, each of its directors, each of its officers
      who
      signed any Registration Statement or controlling person may become subject,
      under the Securities Act, the Exchange Act, or any other federal or state
      statutory law or regulation, or at common law or otherwise (including in
      settlement of any litigation, if such settlement is effected with the written
      consent of such Purchaser) insofar as such losses, claims, damages, liabilities
      or expenses (or actions in respect thereof as contemplated below) arise solely
      out of or are based solely upon (A) any failure to comply with the covenants
      and
      agreements contained in Section 3.02 hereof, (B) the inaccuracy of any
      representation made by the Purchaser herein, or (C) any (I) untrue or alleged
      untrue statement of any material fact contained in any Registration Statement,
      the Prospectus, or any amendment or supplement thereto, or (II) omission or
      alleged omission to state in any Registration Statement, the Prospectus or
      any
      amendment or supplement thereto a material fact required to be stated therein
      or
      necessary to make the statements in such Registration Statement or any amendment
      or supplement thereto, in the prospectus included therein, or any amendment
      or
      supplement thereto, not misleading, in each case in the light of the
      circumstances under which they were made; provided, that the Purchaser’s
      indemnification obligation under this clause (C) shall apply to the extent,
      and
      only to the extent, that such untrue statement or alleged untrue statement
      or
      omission or alleged omission was made in such Registration Statement, such
      prospectus, or any amendment or supplement thereto, in reliance upon and in
      conformity with written information furnished to the Company by the Purchaser
      expressly for use therein, and will reimburse the Company, each of its
      directors, each of its officers who signed any Registration Statement or
      controlling person for any legal and other expense reasonably incurred by the
      Company, each of its directors, each of its officers who signed any Registration
      Statement or controlling person in connection with investigating, defending,
      settling, compromising or paying any such loss, claim, damage, liability,
      expense or action. Notwithstanding the foregoing, no such loss, clam, damage,
      liability, expense or action shall be settled or compromised without the prior
      written consent of the Purchaser, which consent shall not be unreasonably
      withheld.

     

    
      
        
        

      

      
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    (iii) Promptly
      after receipt by an indemnified party under this Section 3.03 of notice of
      the
      threat or commencement of any action, such indemnified party will, if a claim
      in
      respect thereof is to be made against an indemnifying party under this Section
      3.03, promptly notify the indemnifying party in writing thereof; provided,
      that
      the omission so to notify the indemnifying party will not relieve it from any
      liability which it may have to any indemnified party for indemnification and
      contribution (except as provided in paragraph (iv)) or otherwise than under
      the
      indemnity agreement contained in this Section 3.03 or to the extent it is not
      materially prejudiced as a result of such failure. In case any such action
      is
      brought against any indemnified party and such indemnified party seeks or
      intends to seek indemnity from an indemnifying party, the indemnifying party
      will be entitled to participate in, and, to the extent that it may wish, jointly
      with all other indemnifying parties similarly notified, to assume the defense
      thereof with counsel reasonably satisfactory to such indemnified party. Upon
      receipt of notice from the indemnifying party to such indemnified party of
      its
      election so to assume the defense of such action and approval by the indemnified
      party of counsel, the indemnifying party will not be liable to such indemnified
      party under this Section 3.03 for any legal or other expenses subsequently
      incurred by such indemnified party in connection with the defense thereof unless
      the indemnifying party shall not have employed counsel reasonably satisfactory
      to the indemnified party to represent the indemnified party within a reasonable
      time after notice of commencement of action, in which case the reasonable fees
      and expenses of counsel shall be at the expense of the indemnifying party or
      both the Company and Purchaser, in the reasonable opinion of counsel to the
      Purchaser, have defenses distinct from, or contradictory to, the defenses
      available to the other.

     

    (iv) If
      the
      indemnification provided for in this Section 3.03 is required by its terms
      but
      is for any reason held to be unavailable to or otherwise insufficient to hold
      harmless an indemnified party under paragraphs (i) or (ii) of this Section
      3.03
      in respect to any losses, claims, damages, liabilities or expenses referred
      to
      herein (subject to the limitation of paragraph (iii) of this Section 3.03),
      then
      each applicable indemnifying party shall contribute to the amount paid or
      payable by such indemnified party as a result of any losses, claims, damages,
      liabilities or expenses referred to herein (I) in such proportion as is
      appropriate to reflect the relative benefits received by the Company and the
      Purchaser from the sale of the Common Stock contemplated by this Agreement
      or
      (II) if the allocation provided by clause (I) above is not permitted by
      applicable law, in such proportion as is appropriate to reflect not only the
      relative benefits referred to in clause (I) above but the relative fault of
      the
      Company and the Purchaser in connection with the statements or omissions or
      inaccuracies in the representations and warranties in this Agreement that
      resulted in such losses, claims, damages, liabilities or expenses, as well
      as
      any other relevant equitable considerations. The relative benefits received
      by
      the Company on the one hand and the Purchaser on the other shall be deemed
      to be
      in the same proportion as the amount paid by the Purchaser to the Company
      pursuant to this Agreement for the Shares purchased by the Purchaser that were
      sold pursuant to any Registration Statement bears to the difference (the
“Difference”)
      between the amount such Purchaser paid for the Shares that were sold pursuant
      to
      any Registration Statement and the amount received by such Purchaser from such
      sale. The relative fault of the Company on the one hand and the Purchaser on
      the
      other shall be determined by reference to, among other things, whether the
      untrue or alleged statement of a material fact or the omission or alleged
      omission to state a material fact or the inaccurate or the alleged inaccurate
      representation and/or warranty relates to information supplied by the Company
      or
      by the Purchaser and the parties’ relative intent, knowledge, access to
      information and opportunity to correct or prevent such statement, omission
      or
      inaccuracy. The amount paid or payable by a party as a result of the losses,
      claims, damages, liabilities and expenses referred to above shall be deemed
      to
      include, subject to the limitations set forth in paragraph (iii) of this Section
      3.03, any legal or other fees or expenses reasonably incurred by such party
      in
      connection with investigating or defending any action or claim. The provisions
      set forth in paragraph (iii) of this Section 3.03 with respect to the notice
      of
      the threat or commencement of any threat or action shall apply if a claim for
      contribution is to be made under this paragraph (iv); provided,
      however,
      that no
      additional notice shall be required with respect to any threat or action for
      which notice has been given under paragraph (iii) for purposes of
      indemnification. The Company and each Purchaser agree that it would not be
      just
      and equitable if contribution pursuant to this Section 3.03 were determined
      solely by pro rata allocation or by any other method of allocation which does
      not take account of the equitable considerations referred to in this paragraph.
      Notwithstanding the provisions of this Section 3.03, the Purchaser shall not
      be
      required to contribute any amount in excess of the amount by which the
      Difference exceeds the amount of any damages that such Purchaser has otherwise
      been required to pay by reason of such untrue or alleged untrue statement or
      omission or alleged omission. No person guilty of fraudulent misrepresentation
      (within the meaning of Section 11(f) of the Securities Act) shall be entitled
      to
      contribution from any person who was not guilty of such fraudulent
      misrepresentation.

     

    
      
        
        

      

      
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    ARTICLE
      IV

    CONDITIONS
      TO CLOSING

    

    Section
      4.01 Conditions
      to the Obligations of the Purchaser.
      The
      obligation of the Purchaser to purchase Tranche Shares at a Closing shall be
      subject to the satisfaction of the following conditions, or the waiver of such
      conditions by the Purchaser, at or prior to the applicable Tranche Closing
      Date:

    

    (a) the
      representations and warranties of the Company set forth in Section 2.01
      of
      this Agreement shall be true and correct with the same force and effect as
      though expressly made on every date during the term of this Agreement, including
      each Tranche Closing Date, except for representations or warranties made as
      of a
      particular date which representations and warranties shall be true and correct
      as of such date;

     

    (b) the
      Company shall have complied with all the agreements hereunder and satisfied
      all
      the conditions on its part to be performed or satisfied hereunder at or prior
      to
      such Tranche Closing Date;

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (c) the
      Company shall have delivered to the Purchaser a certificate executed by the
      Chairman of the Board or President and the chief financial or accounting officer
      of the Company, dated the applicable Tranche Closing Date, to the effect that
      the conditions in Section
      4.01(a), (b), (h),
      (i),
      and (j)
      have
      been satisfied; 

     

    (d) the
      Initial Registration Statement shall have been declared by the Commission to
      be
      effective under the Securities Act on or prior to September 30, 2006, and shall
      not have been withdrawn, no stop order suspending the effectiveness of any
      Registration Statement shall be in effect, and no proceedings for the suspension
      of the effectiveness of any Registration Statement shall have been instituted
      or
      threatened by the Commission;

     

    (e) Guzov
      Ofsink LLC, counsel to the Company, shall have delivered its legal opinion
      to
      the Purchaser in form and substance satisfactory to the Purchaser.

     

    (f) the
      Company shall retain, and through the term of this Agreement shall retain an
      investor relations firm satisfactory to the Purchaser, in its sole and absolute
      discretion; 

     

    (g) there
      shall not have been (i) any domestic or international event, act, or occurrence,
      including, without limitation, event, act, or occurrence of terrorism, that
      shall have materially and adversely disrupted, or, in the opinion of the
      Purchaser, will in the immediate future materially and adversely disrupt, the
      securities markets; or (ii) a general suspension of, or a general limitation
      on
      prices for, trading in securities on the New York Stock Exchange or the American
      Stock Exchange or in the over-the-counter market; or (iii) an outbreak or
      increase in the level of major hostilities or other national or international
      calamity; or (iv) a banking moratorium declared by any state or federal
      authority; or (v) a moratorium in foreign exchange trading by major
      international banks or persons declared; or (vi) a material interruption in
      the
      mail service or other means of communication within the United States; or (vii)
      a material or substantial loss suffered by the Company by fire, flood, accident,
      hurricane, earthquake, theft, sabotage, or other calamity or malicious act,
      whether or not such loss shall have been insured, or from any labor dispute
      or
      court or government action, order, or decree, which will, in the discretion
      of
      the Purchaser, make it inadvisable to proceed with any portion of the
      transactions contemplated hereby; or (viii) any material adverse change in
      the
      business, prospects, financial condition, or results of operations of the
      Company; or (ix) any material governmental restrictions shall have been imposed
      on trading in securities in general, which restrictions are not in effect on
      the
      date hereof; or (x) passed by the Congress of the United States or by any state
      legislature any act or measure, or adopted by any governmental body or
      authoritative accounting institute or board, or any governmental executive,
      any
      orders, rules, or regulations, which the Purchaser believes likely to have
      a
      material adverse effect on the business, financial condition, or financial
      statements of the Company or any of the Subsidiary or the market for the Common
      Stock; or (xi) such material and adverse change in the market for the Company's
      securities or securities in general or in political, financial, or economic
      conditions as in the judgment of the Purchaser makes it inadvisable to proceed
      with the transactions contemplated hereby;

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (h) The
      Company shall have received state securities law or “blue sky” clearance for the
      sale of the Shares in states specified in writing by the Purchaser, other than
      states in which such clearance shall have required the Company to qualify to
      do
      business or consent to service of process in any jurisdiction in which it is
      not
      now so qualified or has not so consented;

     

    (i) A
      Blackout Period shall not be in effect at either the date of any Tranche
      Election Notice or any Tranche Closing Date;

     

    (j) There
      shall not be in existence on any Tranche Election Date a Registered Share
      Deficiency; and

     

    (k) No
      Tranche Election Notice shall be valid unless the product of the volume of
      shares of Common Stock traded and the closing price of the Common Stock for
      each
      trading day during the five trading days preceding the date of the relevant
      Tranche Closing Date equals or exceeds $250,000. 

    

    Section
      4.02 Conditions
      to the Obligations of the Company.
      The
      obligation of the Company to sell Tranche Shares at any Closing shall be subject
      to the satisfaction of the following conditions, or the waiver of such
      conditions by the Company, at or prior to the applicable Tranche Closing
      Date:

     

    (a) the
      representations and warranties of the Purchaser set forth in Section 2.02 of
      this Agreement shall be true and correct with the same force and effect as
      though expressly made on and as of such Tranche Closing Date, except for
      representations or warranties made as of a particular date which representations
      and warranties shall be true and correct as of such date;

    

    (b) the
      Purchaser shall have complied in all material respects with all the agreements
      hereunder and satisfied all the conditions on its part to be performed or
      satisfied hereunder at or prior to such Tranche Closing Date;

     

    (c) the
      Purchaser shall have delivered to the Company a certificate executed by a duly
      authorized officer of the Purchaser, dated the applicable Tranche Closing Date,
      to the effect that the conditions in clauses (a) and (b) of this Section 4.02
      have been satisfied; and

     

    (d) no
      stop
      order suspending the effectiveness of the Registration Statement shall be in
      effect, and no proceedings for the suspension of the effectiveness of the
      Registration Statement shall have been instituted or threatened by the
      Commission.

     

    
      
        
        

      

      
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    ARTICLE
      V

     

    TERMINATION

     

    Section
      5.01 Termination
      by Purchaser.
      The
      Purchaser may terminate its obligations under Article I of this Agreement by
      oral or written notice to the Company following the occurrence of one or more
      of
      the following:

     

    (a) the
      Company shall default in any material respect in the performance of any covenant
      or agreement under this Agreement, which default shall continue for more than
      three business days following written notice thereof from the
      Purchaser;

     

    (b) the
      representations and warranties of the Company set forth in Section 2.01 of
      this
      Agreement shall not be true and correct in all material respects as of the
      date
      of this Agreement, and on each day thereafter (as if each such date was a
      Tranche Closing Date), except for the representations and warranties made as
      of
      a particular date which representations and warranties need be true and correct
      only as of such date;

     

    (c) the
      Company shall merge or consolidate with any Person, shall effect any
      reorganization, or shall sell or substantially all of its assets, or shall
      enter
      into any agreement contemplating the same;

     

    (d) the
      Closing of the purchase and sale of the Tranche Shares shall not have been
      completed by March 31, 2007; 

     

    (e) the
      Company declares or pays any dividend or distribution to its shareholders,
      or
      purchases or redeems any Common Stock.

     

    Section
      5.02 Termination
      by Company.
      The
      Company may terminate its obligations under Article I of this Agreement by
      oral
      or written notice to the Purchaser following the occurrence of one or more
      of
      the following:

     

    (a) the
      Purchaser shall default in any material respect in the performance of any
      covenant or agreement under this Agreement, which default shall continue for
      more than three business days following written notice thereof from the
      Company;

     

    (b) the
      representations and warranties of the Purchaser set forth in Section 2.02 of
      this Agreement shall not be true and correct in all material respects as of
      the
      date of this Agreement, and on each day thereafter (as if each such date was
      a
      Tranche Closing Date), except for the representations and warranties made as
      of
      a particular date which representations and warranties need be true and correct
      only as of such date; or

     

    (c) the
      Closing of the purchase and sale of the Tranche Shares shall not have been
      completed by March 31, 2007.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Section
      5.03 Liability.
      Subject
      to Sections 2.02(a) and 3.01 hereof, the termination by the Purchaser or the
      Company of its obligations under this Agreement shall not terminate any
      liability for any breach or default by any party in any representation,
      warranty, covenant or agreement occurring prior to the date of such termination.
      In addition, such termination shall not terminate any of the obligations or
      agreements of either party under Section 3.03 of this Agreement.

     

     

    ARTICLE
      VI

     

    MISCELLANEOUS

     

    Section
      6.01 Notices.
      All
      notices, requests, consents and other communications hereunder shall be in
      writing, shall be mailed by first-class registered or certified airmail,
      confirmed facsimile or nationally recognized overnight express courier postage
      prepaid, and shall be deemed given when so mailed and shall be delivered as
      addressed as set forth in the introductory paragraph hereto and as follows:
      

     

    (a) if
      to the
      Company, to:

     

    Phone:
      954-763-1515  

    Facsimile:
      954-763-1516 

    Attention:
      Donald Winfrey, President 

     

    with
      a
      copy to:

    

    Attention:
      Darren Ofsink, Esq 

    Phone: 212-371-8008
      x 122 

    Facsimile:212-688-7273

     

    or
      to
      such other person at such other place as the Company shall designate to the
      Purchaser in writing; and

    

    (b) 
if
      to the
      Purchaser, to:

    Attention: Stephen
      R. McDermott

    Phone: (646)
      723-3353

    Facsimile: (646)
      607-9878

    

    Section
      6.02 Assignment.
      Neither
      party hereto may assign or delegate any of such party’s rights or obligations
      under or in connection with this Agreement, and any attempted assignment or
      delegation of such rights or obligations shall be void. Except as expressly
      provided in Section 3.03 with respect to Purchaser Affiliates, directors and
      controlling persons of the Company and officers of the Company who signed any
      Registration Statement, no person, including without limitation any person
      who
      purchases or otherwise acquires or receives any Shares from the Purchaser,
      is an
      intended third party beneficiary of this Agreement, and no party to this
      Agreement shall have any obligation arising under this Agreement to any person
      other than the other party hereto and, to the extent expressly provided in
      Section 3.03, Purchaser Affiliates, directors and controlling persons of the
      Company and officers of the Company who signed the Registration
      Statement.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    Section
      6.03 Changes.
      This
      Agreement may not be modified or amended except pursuant to an instrument in
      writing signed by the Company and the Purchaser. 

     

    Section
      6.04 Headings.
      The
      headings of the various sections of this Agreement have been inserted for
      convenience of reference only and shall not be deemed to be part of this
      Agreement.

     

    Section
      6.05 Severability.
      In
      case
      any provision contained in this Agreement should be invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions contained herein shall not in any way be affected or
      impaired thereby. 

     

    Section
      6.06 Governing
      Law; Venue.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without regard to its conflicts of law principles, and the
      federal law of the United States of America. The
      Company irrevocably consents to the jurisdiction of the courts of the State
      of
      New York and of any federal court,
      in each
      case located in New York, New York, in
      connection with any action or proceeding arising out of, or relating to, this
      Agreement, any document or instrument delivered pursuant to, in connection
      with,
      or simultaneously with this Agreement, or a breach of this Agreement or any
      such
      document or instrument. In any such action or proceeding, the Company waives
      personal service of any summons, complaint, or other process and agrees that
      service thereof may be made in accordance with Section 6.01.
      Within 30 days after such service, or such other time as may be mutually agreed
      upon in writing by the attorneys for the parties to such action or proceeding,
      the Company shall appear or answer such summons, complaint, or other process.
      Should the Company fail to appear or answer within such 30-day period or such
      extended period, as the case may be, the Company shall be deemed in default
      and
      judgment may be entered against the Company for the amount as demanded in any
      summons, complaint, or other process so served.

     

    Section
      6.07 Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      constitute an original, but all of which, when taken together, shall constitute
      but one instrument, and shall become effective when one or more counterparts
      have been signed by each party hereto and delivered to the other
      parties.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

     

     

     

     

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the
      parties hereto have caused this Agreement to be executed by their duly
      authorized representatives as of the day and year first above written.

     

    
      	 	 	 
	 	AZUR
              HOLDINGS, INC.
	 
 	 
 	 
 
	 	By:  	 /s/Donald
              Goree
	 	
              
Name:
              Donald Goree
	 	Title:
              Chief Executive Officer 

    

     

     

    
      	 	 	 
	 	GRAYBRICK
              PARTNERS I LLC
	 
 	 
 	 
 
	 	By:  	/s/ Stephen
              McDermott
	 	
              
Name:
              Stephen McDermott
	 	Title:
              Managing Member

    

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    Schedule
      1.01(a)

    

     

    Tranches

    

    For
      purposes hereof, the term “Base
      Price”
shall
      mean the lower of (A) $2.00 (the “Initial
      Base Price”),
      and
      (B) with respect to any particular Tranche, the lowest closing price of the
      Common Stock for the ten trading days prior to the draw down of such Tranche.
      Base Price shall be adjusted for stock splits, stock dividends, reverse stock
      splits, recapitalizations, and similar events.

    
 

    
      	
              Tranche
                No.

            	 	
              Gross
                Proceeds of Tranche

            	 	
              Tranche
                Purchase Price per

              Tranche
                Share 

              (U.S.
                Dollars)

            
	 	 	 	 	 
	
              1

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.60

            
	
              2

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.60

            
	
              3

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.60

            
	
              4

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.70

            
	
              5

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.70

            
	
              6

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.70

            
	
              7

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.75

            
	
              8

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.75

            
	
              9

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.75

            
	
              10

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.80

            
	
              11

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.80

            
	
              12

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.80

            
	
              13

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.90

            
	
              14

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.90

            
	
              15

            	 	
              $200,000

            	 	
              (Base
                Price) * 0.90

            

    

    

    
      
        
        

      

      28

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