Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 10.3

 THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE
  NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT AS
  OTHERWISE SET FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED AS OF
  NOVEMBER 8, 2004, NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED
  OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES
  UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, CUSTOMARY
  FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT
  REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S
  UNDER SUCH ACT. 

	 	Right to Purchase 192,000 Shares of Common Stock, no par value
      per share 

STOCK PURCHASE WARRANT 

                     THIS
  CERTIFIES THAT, for value received, AJW PARTNERS, LLC or its registered
  assigns, is entitled to purchase from BANYAN CORPORATION, an Oregon corporation
  (the "Company"), at any time or from time to time during the period specified
  in Paragraph 2 hereof, One Hundred Ninety-Two Thousand (192,000) fully paid
  and nonassessable shares of the Company's Class A Common Stock, no par value
  per share (the "Common Stock"), at an exercise price per share equal to $.40
  (the "Exercise Price"). The term "Warrant Shares," as used herein, refers to
  the shares of Common Stock purchasable hereunder. The Warrant Shares and the
  Exercise Price are subject to adjustment as provided in Paragraph 4 hereof.
  The term "Warrants" means this Warrant and the other warrants issued pursuant
  to that certain Securities Purchase Agreement, dated November 8, 2004, by and
  among the Company and the Buyers listed on the execution page thereof (the "Securities
  Purchase Agreement"), including any additional warrants issuable pursuant to
  Section 4(l) thereof.

                     This
  Warrant is subject to the following terms, provisions, and conditions:

                     1.                
  Manner of Exercise; Issuance of Certificates; Payment for Shares.
  Subject to the provisions hereof, this Warrant may be exercised by the holder
  hereof, in whole or in part, by the surrender of this Warrant, together with
  a completed exercise agreement in the form attached hereto (the "Exercise Agreement"),
  to the Company during normal business hours on any business day at the Company's
  principal executive offices (or such other office or agency of the 

Company as it may designate by notice to the holder hereof), and upon (i) payment to the Company in cash, by certified or official bank check or by wire transfer for the account of the Company of the Exercise Price for the Warrant Shares specified
in the Exercise Agreement or (ii) if the resale of the Warrant Shares by the holder is not then registered pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"), delivery to the Company
of a written notice of an election to effect a "Cashless Exercise" (as defined in Section 11(c) below) for the Warrant Shares specified in the Exercise Agreement. The Warrant Shares so purchased shall be deemed to be issued to the holder hereof or
such holder's designee, as the record owner of such shares, as of the close of business on the date on which this Warrant shall have been surrendered, the completed Exercise Agreement shall have been delivered, and payment shall have been made for
such shares as set forth above. Certificates for the Warrant Shares so purchased, representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered to the holder hereof within a reasonable time, not exceeding three
(3) business days, after this Warrant shall have been so exercised. The certificates so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name of such holder or such other name as shall
be designated by such holder. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the holder a new Warrant
representing the number of shares with respect to which this Warrant shall not then have been exercised. In addition to all other available remedies at law or in equity, if the Company fails to deliver certificates for the Warrant Shares within
three (3) business days after this Warrant is exercised, then the Company shall pay to the holder in cash a penalty (the "Penalty") equal to 2% of the number of Warrant Shares that the holder is entitled to multiplied by the Market Price (as
hereinafter defined) for each day that the Company fails to deliver certificates for the Warrant Shares. For example, if the holder is entitled to 100,000 Warrant Shares and the Market Price is $2.00, then the Company shall pay to the holder $4,000
for each day that the Company fails to deliver certificates for the Warrant Shares. The Penalty shall be paid to the holder by the fifth day of the month following the month in which it has accrued. 

                     Notwithstanding
  anything in this Warrant to the contrary, in no event shall the holder of this
  Warrant be entitled to exercise a number of Warrants (or portions thereof) in
  excess of the number of Warrants (or portions thereof) upon exercise of which
  the sum of (i) the number of shares of Common Stock beneficially owned by the
  holder and its affiliates (other than shares of Common Stock which may be deemed
  beneficially owned through the ownership of the unexercised Warrants and the
  unexercised or unconverted portion of any other securities of the Company (including
  the Notes (as defined in the Securities Purchase Agreement)) subject to a limitation
  on conversion or exercise analogous to the limitation contained herein) and
  (ii) the number of shares of Common Stock issuable upon exercise of the Warrants
  (or portions thereof) with respect to which the determination described herein
  is being made, would result in beneficial ownership by the holder and its affiliates
  of more than 4.9% of the outstanding shares of Common Stock. For purposes of
  the immediately preceding sentence, beneficial ownership shall be determined
  in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
  amended, and Regulation 13D-G thereunder, except as otherwise provided in clause
  (i) of the preceding sentence. Notwithstanding anything to the contrary contained
  herein, the limitation on exercise of this Warrant set forth herein may not
  be amended without (i) the written consent of the holder hereof and the Company
  and (ii) the approval of a majority of shareholders of the Company. 

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                     2.                
  Period of Exercise. This Warrant is exercisable at
  any time or from time to time on or after the date on which this Warrant is
  issued and delivered pursuant to the terms of the Securities Purchase Agreement
  and before 6:00 p.m., New York, New York time on the fifth (5th)
  anniversary of the date of issuance (the "Exercise Period"). 

                     3.                
  Certain Agreements of the Company. The Company hereby
  covenants and agrees as follows: 

                                         (a)                
  Shares to be Fully Paid. All Warrant Shares will, upon
  issuance in accordance with the terms of this Warrant, be validly issued, fully
  paid, and nonassessable and free from all taxes, liens, and charges with respect
  to the issue thereof. 

                                         (b)                
  Reservation of Shares. Subject to the Stockholder Approval
  (as defined in the Securities Purchase Agreement), during the Exercise Period,
  the Company shall at all times have authorized, and reserved for the purpose
  of issuance upon exercise of this Warrant, a sufficient number of shares of
  Common Stock to provide for the exercise of this Warrant. 

                                         (c)                
  Listing. The Company shall promptly secure the listing
  of the shares of Common Stock issuable upon exercise of the Warrant upon each
  national securities exchange or automated quotation system, if any, upon which
  shares of Common Stock are then listed (subject to official notice of issuance
  upon exercise of this Warrant) and shall maintain, so long as any other shares
  of Common Stock shall be so listed, such listing of all shares of Common Stock
  from time to time issuable upon the exercise of this Warrant; and the Company
  shall so list on each national securities exchange or automated quotation system,
  as the case may be, and shall maintain such listing of, any other shares of
  capital stock of the Company issuable upon the exercise of this Warrant if and
  so long as any shares of the same class shall be listed on such national securities
  exchange or automated quotation system. 

                                         (d)                
  Certain Actions Prohibited. The Company will not, by
  amendment of its charter or through any reorganization, transfer of assets,
  consolidation, merger, dissolution, issue or sale of securities, or any other
  voluntary action, avoid or seek to avoid the observance or performance of any
  of the terms to be observed or performed by it hereunder, but will at all times
  in good faith assist in the carrying out of all the provisions of this Warrant
  and in the taking of all such action as may reasonably be requested by the holder
  of this Warrant in order to protect the exercise privilege of the holder of
  this Warrant against dilution or other impairment, consistent with the tenor
  and purpose of this Warrant. Without limiting the generality of the foregoing,
  the Company (i) will not increase the par value of any shares of Common Stock
  receivable upon the exercise of this Warrant above the Exercise Price then in
  effect, and (ii) will take all such actions as may be necessary or appropriate
  in order that the Company may validly and legally issue fully paid and nonassessable
  shares of Common Stock upon the exercise of this Warrant. 

                                         (e)                
  Successors and Assigns. This Warrant will be binding
  upon any entity succeeding to the Company by merger, consolidation, or acquisition
  of all or substantially all the Company's assets. 

                     4.                
  Antidilution Provisions. During the Exercise Period,
  the Exercise Price and the number of Warrant Shares shall be subject to adjustment
  from time to time as provided in this Paragraph 4. 

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                     In
  the event that any adjustment of the Exercise Price as required herein results
  in a fraction of a cent, such Exercise Price shall be rounded up to the nearest
  cent. 

                                         (a)                
  Adjustment of Exercise Price and Number of Shares upon Issuance of
  Common Stock. Except as otherwise provided in Paragraphs
  4(c) and 4(e) hereof, if and whenever on or after the date of issuance of this
  Warrant, the Company issues or sells, or in accordance with Paragraph 4(b) hereof
  is deemed to have issued or sold, any shares of Common Stock for no consideration
  or for a consideration per share (before deduction of reasonable expenses or
  commissions or underwriting discounts or allowances in connection therewith)
  less than the Market Price on the date of issuance (a "Dilutive Issuance"),
  then immediately upon the Dilutive Issuance, the Exercise Price will be reduced
  to a price determined by multiplying the Exercise Price in effect immediately
  prior to the Dilutive Issuance by a fraction, (i) the numerator of which is
  an amount equal to the sum of (x) the number of shares of Common Stock actually
  outstanding immediately prior to the Dilutive Issuance, plus (y) the quotient
  of the aggregate consideration, calculated as set forth in Paragraph 4(b) hereof,
  received by the Company upon such Dilutive Issuance divided by the Market Price
  in effect immediately prior to the Dilutive Issuance, and (ii) the denominator
  of which is the total number of shares of Common Stock Deemed Outstanding (as
  defined below) immediately after the Dilutive Issuance.

                                         (b)                
  Effect on Exercise Price of Certain Events. For purposes
  of determining the adjusted Exercise Price under Paragraph 4(a) hereof, the
  following will be applicable: 

                                                             (i)                
  Issuance of Rights or Options. If the Company in any
  manner issues or grants any warrants, rights or options, whether or not immediately
  exercisable, to subscribe for or to purchase Common Stock or other securities
  convertible into or exchangeable for Common Stock ("Convertible Securities")
  (such warrants, rights and options to purchase Common Stock or Convertible Securities
  are hereinafter referred to as "Options") and the price per share for which
  Common Stock is issuable upon the exercise of such Options is less than the
  Market Price on the date of issuance or grant of such Options, then the maximum
  total number of shares of Common Stock issuable upon the exercise of all such
  Options will, as of the date of the issuance or grant of such Options, be deemed
  to be outstanding and to have been issued and sold by the Company for such price
  per share. For purposes of the preceding sentence, the "price per share for
  which Common Stock is issuable upon the exercise of such Options" is determined
  by dividing (i) the total amount, if any, received or receivable by the Company
  as consideration for the issuance or granting of all such Options, plus the
  minimum aggregate amount of additional consideration, if any, payable to the
  Company upon the exercise of all such Options, plus, in the case of Convertible
  Securities issuable upon the exercise of such Options, the minimum aggregate
  amount of additional consideration payable upon the conversion or exchange thereof
  at the time such Convertible Securities first become convertible or exchangeable,
  by (ii) the maximum total number of shares of Common Stock issuable upon the
  exercise of all such Options (assuming full conversion of Convertible Securities,
  if applicable). No further adjustment to the Exercise Price will be made upon
  the actual issuance of such Common Stock upon the exercise of such Options or
  upon the conversion or exchange of Convertible Securities issuable upon exercise
  of such Options. 

                                                             (ii)               
  Issuance of Convertible Securities. If the Company
  in any manner issues or sells any Convertible Securities, whether or not immediately
  convertible (other 

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than where the same are issuable upon the exercise of Options) and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Market Price on the date of issuance, then the maximum total number of shares
of Common Stock issuable upon the conversion or exchange of all such Convertible Securities will, as of the date of the issuance of such Convertible Securities, be deemed to be outstanding and to have been issued and sold by the Company for such
price per share. For the purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon such conversion or exchange" is determined by dividing (i) the total amount, if any, received or receivable by the Company as
consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof at the time such Convertible Securities
first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities. No further adjustment to the Exercise Price will be made upon the
actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities. 

                                                             (iii)              
  Change in Option Price or Conversion Rate. If there
  is a change at any time in (i) the amount of additional consideration payable
  to the Company upon the exercise of any Options; (ii) the amount of additional
  consideration, if any, payable to the Company upon the conversion or exchange
  of any Convertible Securities; or (iii) the rate at which any Convertible Securities
  are convertible into or exchangeable for Common Stock (other than under or by
  reason of provisions designed to protect against dilution), the Exercise Price
  in effect at the time of such change will be readjusted to the Exercise Price
  which would have been in effect at such time had such Options or Convertible
  Securities still outstanding provided for such changed additional consideration
  or changed conversion rate, as the case may be, at the time initially granted,
  issued or sold. 

                                                             (iv)               
  Treatment of Expired Options and Unexercised Convertible
  Securities. If, in any case, the total number of shares
  of Common Stock issuable upon exercise of any Option or upon conversion or exchange
  of any Convertible Securities is not, in fact, issued and the rights to exercise
  such Option or to convert or exchange such Convertible Securities shall have
  expired or terminated, the Exercise Price then in effect will be readjusted
  to the Exercise Price which would have been in effect at the time of such expiration
  or termination had such Option or Convertible Securities, to the extent outstanding
  immediately prior to such expiration or termination (other than in respect of
  the actual number of shares of Common Stock issued upon exercise or conversion
  thereof), never been issued. 

                                                             (v)                
  Calculation of Consideration Received. If any Common
  Stock, Options or Convertible Securities are issued, granted or sold for cash,
  the consideration received therefor for purposes of this Warrant will be the
  amount received by the Company therefor, before deduction of reasonable commissions,
  underwriting discounts or allowances or other reasonable expenses paid or incurred
  by the Company in connection with such issuance, grant or sale. In case any
  Common Stock, Options or Convertible Securities are issued or sold for a consideration
  part or all of which shall be other than cash, the amount of the consideration
  other than cash received by the Company will be the fair value of such consideration,
  except where such consideration consists of securities, in which case the amount
  of consideration received by the Company will be the Market Price thereof as
  of the date of receipt. In case any Common Stock, Options or Convertible Securities
  are issued in connection with any acquisition, merger or 

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consolidation in which the Company is the surviving corporation, the amount of consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving corporation as is attributable to such
Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or securities will be determined in good faith by the Board of Directors of the Company. 

                                                             (vi)               
  Exceptions to Adjustment of Exercise Price. No adjustment
  to the Exercise Price will be made (i) upon the exercise of any warrants, options
  or convertible securities granted, issued and outstanding on the date of issuance
  of this Warrant; (ii) upon the grant or exercise of any stock or options which
  may hereafter be granted or exercised under any employee benefit plan, stock
  option plan or restricted stock plan of the Company now existing or to be implemented
  in the future, so long as the issuance of such stock or options is approved
  by a majority of the independent members of the Board of Directors of the Company
  or a majority of the members of a committee of independent directors established
  for such purpose; or (iii) upon the exercise of the Warrants. 

                                         (c)                
  Subdivision or Combination of Common Stock. If the
  Company at any time subdivides (by any stock split, stock dividend, recapitalization,
  reorganization, reclassification or otherwise) the shares of Common Stock acquirable
  hereunder into a greater number of shares, then, after the date of record for
  effecting such subdivision, the Exercise Price in effect immediately prior to
  such subdivision will be proportionately reduced. If the Company at any time
  combines (by reverse stock split, recapitalization, reorganization, reclassification
  or otherwise) the shares of Common Stock acquirable hereunder into a smaller
  number of shares, then, after the date of record for effecting such combination,
  the Exercise Price in effect immediately prior to such combination will be proportionately
  increased. 

                                         (d)                
  Adjustment in Number of Shares. Upon each adjustment
  of the Exercise Price pursuant to the provisions of this Paragraph 4, the number
  of shares of Common Stock issuable upon exercise of this Warrant shall be adjusted
  by multiplying a number equal to the Exercise Price in effect immediately prior
  to such adjustment by the number of shares of Common Stock issuable upon exercise
  of this Warrant immediately prior to such adjustment and dividing the product
  so obtained by the adjusted Exercise Price. 

                                         (e)                
  Consolidation, Merger or Sale. In case of any consolidation
  of the Company with, or merger of the Company into any other corporation, or
  in case of any sale or conveyance of all or substantially all of the assets
  of the Company other than in connection with a plan of complete liquidation
  of the Company, then as a condition of such consolidation, merger or sale or
  conveyance, adequate provision will be made whereby the holder of this Warrant
  will have the right to acquire and receive upon exercise of this Warrant in
  lieu of the shares of Common Stock immediately theretofore acquirable upon the
  exercise of this Warrant, such shares of stock, securities or assets as may
  be issued or payable with respect to or in exchange for the number of shares
  of Common Stock immediately theretofore acquirable and receivable upon exercise
  of this Warrant had such consolidation, merger or sale or conveyance not taken
  place. In any such case, the Company will make appropriate provision to insure
  that the provisions of this Paragraph 4 hereof will thereafter be applicable
  as nearly as may be in relation to any shares of stock or securities thereafter
  deliverable upon the exercise of this Warrant. The Company will not effect any
  consolidation, merger or sale or conveyance unless prior to the consummation
  thereof, the successor corporation (if other than the Company) assumes by written

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instrument the obligations under this Paragraph 4 and the obligations to deliver to the holder of this Warrant such shares of stock, securities or assets as, in accordance with the foregoing provisions, the holder may be entitled to acquire. 

                                         (f)                
  Distribution of Assets. In case the Company shall declare
  or make any distribution of its assets (including cash) to holders of Common
  Stock as a partial liquidating dividend, by way of return of capital or otherwise,
  then, after the date of record for determining shareholders entitled to such
  distribution, but prior to the date of distribution, the holder of this Warrant
  shall be entitled upon exercise of this Warrant for the purchase of any or all
  of the shares of Common Stock subject hereto, to receive the amount of such
  assets which would have been payable to the holder had such holder been the
  holder of such shares of Common Stock on the record date for the determination
  of shareholders entitled to such distribution. 

                                         (g)                
  Notice of Adjustment. Upon the occurrence of any event
  which requires any adjustment of the Exercise Price, then, and in each such
  case, the Company shall give notice thereof to the holder of this Warrant, which
  notice shall state the Exercise Price resulting from such adjustment and the
  increase or decrease in the number of Warrant Shares purchasable at such price
  upon exercise, setting forth in reasonable detail the method of calculation
  and the facts upon which such calculation is based. Such calculation shall be
  certified by the Chief Financial Officer of the Company. 

                                         (h)                
  Minimum Adjustment of Exercise Price. No adjustment
  of the Exercise Price shall be made in an amount of less than 1% of the Exercise
  Price in effect at the time such adjustment is otherwise required to be made,
  but any such lesser adjustment shall be carried forward and shall be made at
  the time and together with the next subsequent adjustment which, together with
  any adjustments so carried forward, shall amount to not less than 1% of such
  Exercise Price. 

                                         (i)                
  No Fractional Shares. No fractional shares of Common
  Stock are to be issued upon the exercise of this Warrant, but the Company shall
  pay a cash adjustment in respect of any fractional share which would otherwise
  be issuable in an amount equal to the same fraction of the Market Price of a
  share of Common Stock on the date of such exercise. 

                                         (j)                
  Other Notices. In case at any time: 

                                                             (i)                
  the Company shall declare any dividend upon the Common Stock payable in
  shares of stock of any class or make any other distribution (including dividends
  or distributions payable in cash out of retained earnings) to the holders of
  the Common Stock; 

                                                             (ii)                the
  Company shall offer for subscription pro rata to the holders of the Common Stock
  any additional shares of stock of any class or other rights; 

                                                             (iii)              
  there shall be any capital reorganization of the Company, or reclassification
  of the Common Stock, or consolidation or merger of the Company with or into,
  or sale of all or substantially all its assets to, another corporation or entity;
  or 

                                                             (iv)                
  there shall be a voluntary or involuntary dissolution, liquidation or winding
  up of the Company; 

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then, in each such case, the Company shall give to the holder of this Warrant (a) notice of the date on which the books of the Company shall close or a record shall be taken for determining the holders of Common Stock entitled to receive any such
dividend, distribution, or subscription rights or for determining the holders of Common Stock entitled to vote in respect of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up and (b) in
the case of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, notice of the date (or, if not then known, a reasonable approximation thereof by the Company) when the same shall take place.
Such notice shall also specify the date on which the holders of Common Stock shall be entitled to receive such dividend, distribution, or subscription rights or to exchange their Common Stock for stock or other securities or property deliverable
upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation, or winding-up, as the case may be. Such notice shall be given at least 30 days prior to the record date or the date on which the Company's books are
closed in respect thereto. Failure to give any such notice or any defect therein shall not affect the validity of the proceedings referred to in clauses (i), (ii), (iii) and (iv) above. 

                                         (k)                
  Certain Events. If any event occurs of the type contemplated
  by the adjustment provisions of this Paragraph 4 but not expressly provided
  for by such provisions, the Company will give notice of such event as provided
  in Paragraph 4(g) hereof, and the Company's Board of Directors will make an
  appropriate adjustment in the Exercise Price and the number of shares of Common
  Stock acquirable upon exercise of this Warrant so that the rights of the holder
  shall be neither enhanced nor diminished by such event. 

                                         (l)                
  Certain Definitions.

                                                             (i)               
  "Common Stock Deemed Outstanding" shall mean
  the number of shares of Common Stock actually outstanding (not including shares
  of Common Stock held in the treasury of the Company), plus (x) pursuant to Paragraph
  4(b)(i) hereof, the maximum total number of shares of Common Stock issuable
  upon the exercise of Options, as of the date of such issuance or grant of such
  Options, if any, and (y) pursuant to Paragraph 4(b)(ii) hereof, the maximum
  total number of shares of Common Stock issuable upon conversion or exchange
  of Convertible Securities, as of the date of issuance of such Convertible Securities,
  if any.

                                                             (ii)                
  "Market Price," as of any date, (i) means the
  average of the last reported sale prices for the shares of Common Stock on the
  OTCBB for the five (5) Trading Days immediately preceding such date as reported
  by Bloomberg, or (ii) if the OTCBB is not the principal trading market for the
  shares of Common Stock, the average of the last reported sale prices on the
  principal trading market for the Common Stock during the same period as reported
  by Bloomberg, or (iii) if market value cannot be calculated as of such date
  on any of the foregoing bases, the Market Price shall be the fair market value
  as reasonably determined in good faith by (a) the Board of Directors of the
  Company or, at the option of a majority-in-interest of the holders of the outstanding
  Warrants by (b) an independent investment bank of nationally recognized standing
  in the valuation of businesses similar to the business of the corporation. The
  manner of determining the Market Price of the Common Stock set forth in the
  foregoing definition shall apply with respect to any other security in respect
  of which a determination as to market value must be made hereunder. 

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                                                             (iii)               
  "Common Stock," for purposes of this Paragraph
  4, includes the Common Stock, par value $.001 per share, and any additional
  class of stock of the Company having no preference as to dividends or distributions
  on liquidation, provided that the shares purchasable pursuant to this Warrant
  shall include only shares of Common Stock, par value $.001 per share, in respect
  of which this Warrant is exercisable, or shares resulting from any subdivision
  or combination of such Common Stock, or in the case of any reorganization, reclassification,
  consolidation, merger, or sale of the character referred to in Paragraph 4(e)
  hereof, the stock or other securities or property provided for in such Paragraph.

                     5.                
  Issue Tax. The issuance of certificates for Warrant
  Shares upon the exercise of this Warrant shall be made without charge to the
  holder of this Warrant or such shares for any issuance tax or other costs in
  respect thereof, provided that the Company shall not be required to pay any
  tax which may be payable in respect of any transfer involved in the issuance
  and delivery of any certificate in a name other than the holder of this Warrant.

                     6.                No
  Rights or Liabilities as a Shareholder. This Warrant shall not
  entitle the holder hereof to any voting rights or other rights as a shareholder
  of the Company. No provision of this Warrant, in the absence of affirmative
  action by the holder hereof to purchase Warrant Shares, and no mere enumeration
  herein of the rights or privileges of the holder hereof, shall give rise to
  any liability of such holder for the Exercise Price or as a shareholder of the
  Company, whether such liability is asserted by the Company or by creditors of
  the Company. 

                     7.                
  Transfer, Exchange, and Replacement of Warrant. 

                                         (a)                
  Restriction on Transfer. This Warrant and the rights
  granted to the holder hereof are transferable, in whole or in part, upon surrender
  of this Warrant, together with a properly executed assignment in the form attached
  hereto, at the office or agency of the Company referred to in Paragraph 7(e)
  below, provided, however, that any transfer or assignment shall be subject to
  the conditions set forth in Paragraph 7(f) hereof and to the applicable provisions
  of the Securities Purchase Agreement. Until due presentment for registration
  of transfer on the books of the Company, the Company may treat the registered
  holder hereof as the owner and holder hereof for all purposes, and the Company
  shall not be affected by any notice to the contrary. Notwithstanding anything
  to the contrary contained herein, the registration rights described in Paragraph
  8 are assignable only in accordance with the provisions of that certain Registration
  Rights Agreement, dated November 8, 2004, by and among the Company and the other
  signatories thereto (the "Registration Rights Agreement"). 

                                         (b)                
  Warrant Exchangeable for Different Denominations. This
  Warrant is exchangeable, upon the surrender hereof by the holder hereof at the
  office or agency of the Company referred to in Paragraph 7(e) below, for new
  Warrants of like tenor representing in the aggregate the right to purchase the
  number of shares of Common Stock which may be purchased hereunder, each of such
  new Warrants to represent the right to purchase such number of shares as shall
  be designated by the holder hereof at the time of such surrender. 

                                         (c)                
  Replacement of Warrant. Upon receipt of evidence reasonably
  satisfactory to the Company of the loss, theft, destruction, or mutilation of
  this Warrant and, in the case of any such loss, theft, or destruction, upon
  delivery of an indemnity agreement reasonably satisfactory in form and amount
  to the Company, or, in the case of any such mutilation, 

- 9 - 

upon surrender and cancellation of this Warrant, the Company, at its expense, will execute and deliver, in lieu thereof, a new Warrant of like tenor. 

                                         (d)                
  Cancellation; Payment of Expenses. Upon the surrender
  of this Warrant in connection with any transfer, exchange, or replacement as
  provided in this Paragraph 7, this Warrant shall be promptly canceled by the
  Company. The Company shall pay all taxes (other than securities transfer taxes)
  and all other expenses (other than legal expenses, if any, incurred by the holder
  or transferees) and charges payable in connection with the preparation, execution,
  and delivery of Warrants pursuant to this Paragraph 7. 

                                         (e)                
  Register. The Company shall maintain, at its principal
  executive offices (or such other office or agency of the Company as it may designate
  by notice to the holder hereof), a register for this Warrant, in which the Company
  shall record the name and address of the person in whose name this Warrant has
  been issued, as well as the name and address of each transferee and each prior
  owner of this Warrant. 

                                         (f)                
  Exercise or Transfer Without Registration. If, at the
  time of the surrender of this Warrant in connection with any exercise, transfer,
  or exchange of this Warrant, this Warrant (or, in the case of any exercise,
  the Warrant Shares issuable hereunder), shall not be registered under the Securities
  Act of 1933, as amended (the "Securities Act") and under applicable state securities
  or blue sky laws, the Company may require, as a condition of allowing such exercise,
  transfer, or exchange, (i) that the holder or transferee of this Warrant, as
  the case may be, furnish to the Company a written opinion of counsel, which
  opinion and counsel are acceptable to the Company, to the effect that such exercise,
  transfer, or exchange may be made without registration under said Act and under
  applicable state securities or blue sky laws, (ii) that the holder or transferee
  execute and deliver to the Company an investment letter in form and substance
  acceptable to the Company and (iii) that the transferee be an "accredited investor"
  as defined in Rule 501(a) promulgated under the Securities Act; provided that
  no such opinion, letter or status as an "accredited investor" shall be required
  in connection with a transfer pursuant to Rule 144 under the Securities Act.
  The first holder of this Warrant, by taking and holding the same, represents
  to the Company that such holder is acquiring this Warrant for investment and
  not with a view to the distribution thereof.

                     8.                
  Registration Rights. The initial holder of this Warrant
  (and certain assignees thereof) is entitled to the benefit of such registration
  rights in respect of the Warrant Shares as are set forth in Section 2 of the
  Registration Rights Agreement. 

                     9.                
  Notices. All notices, requests, and other communications
  required or permitted to be given or delivered hereunder to the holder of this
  Warrant shall be in writing, and shall be personally delivered, or shall be
  sent by certified or registered mail or by recognized overnight mail courier,
  postage prepaid and addressed, to such holder at the address shown for such
  holder on the books of the Company, or at such other address as shall have been
  furnished to the Company by notice from such holder. All notices, requests,
  and other communications required or permitted to be given or delivered hereunder
  to the Company shall be in writing, and shall be personally delivered, or shall
  be sent by certified or registered mail or by recognized overnight mail courier,
  postage prepaid and addressed, to the office of the Company at 1925 Century
  Park East, Suite 500, Los Angeles, California 90067, Attention: Chief Executive
  Officer, or at such other address as shall have been furnished to the holder
  of this Warrant by notice from the 

- 10 - 

Company. Any such notice, request, or other communication may be sent by facsimile, but shall in such case be subsequently confirmed by a writing personally delivered or sent by certified or registered mail or by recognized overnight mail courier as
provided above. All notices, requests, and other communications shall be deemed to have been given either at the time of the receipt thereof by the person entitled to receive such notice at the address of such person for purposes of this Paragraph
9, or, if mailed by registered or certified mail or with a recognized overnight mail courier upon deposit with the United States Post Office or such overnight mail courier, if postage is prepaid and the mailing is properly addressed, as the case may
be. 

                     10.                Governing
  Law. THIS WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED
  IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS
  MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
  OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION
  OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH RESPECT
  TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS ENTERED INTO IN CONNECTION
  HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY
  WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR
  PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY
  MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE
  OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL
  AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
  LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT
  OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
  BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES
  NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS WARRANT SHALL BE RESPONSIBLE FOR
  ALL FEES AND EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING
  PARTY IN CONNECTION WITH SUCH DISPUTE. 

                     11.                Miscellaneous.
  

                                         (a)                
  Amendments. This Warrant and any provision hereof may
  only be amended by an instrument in writing signed by the Company and the holder
  hereof. 

                                         (b)                
  Descriptive Headings. The descriptive headings of the
  several paragraphs of this Warrant are inserted for purposes of reference only,
  and shall not affect the meaning or construction of any of the provisions hereof.

                                         (c)                
  Cashless Exercise. Notwithstanding anything to the
  contrary contained in this Warrant, if the resale of the Warrant Shares by the
  holder is not then registered pursuant to an effective registration statement
  under the Securities Act, this Warrant may be exercised by presentation and
  surrender of this Warrant to the Company at its principal executive offices
  with a written notice of the holder's intention to effect a cashless exercise,
  including a calculation of the number of shares of Common Stock to be issued
  upon such exercise in accordance with the terms hereof (a "Cashless Exercise").
  In the event of a Cashless Exercise, in lieu of paying the 

- 11 - 

Exercise Price in cash, the holder shall surrender this Warrant for that number of shares of Common Stock determined by multiplying the number of Warrant Shares to which it would otherwise be entitled by a fraction, the numerator of which shall be
the difference between the then current Market Price per share of the Common Stock and the Exercise Price, and the denominator of which shall be the then current Market Price per share of Common Stock. For example, if the holder is exercising
100,000 Warrants with a per Warrant exercise price of $0.75 per share through a cashless exercise when the Common Stock's current Market Price per share is $2.00 per share, then upon such Cashless Exercise the holder will receive 62,500 shares of
Common Stock. 

                                         (d)                
  Remedies. The Company acknowledges that a breach by it of
  its obligations hereunder will cause irreparable harm to the holder, by vitiating
  the intent and purpose of the transaction contemplated hereby. Accordingly,
  the Company acknowledges that the remedy at law for a breach of its obligations
  under this Warrant will be inadequate and agrees, in the event of a breach or
  threatened breach by the Company of the provisions of this Warrant, that the
  holder shall be entitled, in addition to all other available remedies at law
  or in equity, and in addition to the penalties assessable herein, to an injunction
  or injunctions restraining, preventing or curing any breach of this Warrant
  and to enforce specifically the terms and provisions thereof, without the necessity
  of showing economic loss and without any bond or other security being required.

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

- 12 - 

                                         IN
  WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
  duly authorized officer.

	 	 BANYAN CORPORATION  
	 	 	  
	 	 	  
	 	 	  
	 	By: 	  
	 	 	 Michael J. Gelmon 
	 	 	 Chief Executive Officer  

 Dated as of November 8, 2004

FORM OF EXERCISE AGREEMENT 

 Dated: ________ __, 200_ 

To: ______________________

                                         The
  undersigned, pursuant to the provisions set forth in the within Warrant, hereby
  agrees to purchase ________ shares of Common Stock covered by such Warrant,
  and makes payment herewith in full therefor at the price per share provided
  by such Warrant in cash or by certified or official bank check in the amount
  of, or, if the resale of such Common Stock by the undersigned is not currently
  registered pursuant to an effective registration statement under the Securities
  Act of 1933, as amended, by surrender of securities issued by the Company (including
  a portion of the Warrant) having a market value (in the case of a portion of
  this Warrant, determined in accordance with Section 11(c) of the Warrant) equal
  to $ _________. Please issue a certificate or certificates for such shares of
  Common Stock in the name of and pay any cash for any fractional share to: 

	 	 Name:  	 
	 	  	 
	 	  	 
	 	 Signature:  	 
	 	  	 
	 	 Address:	 
	 	  	 
	 	  	 
	 	 Note:  	 The above signature should correspond exactly with the 
      name on the face of the within Warrant, if applicable.  

and, if said number of shares of Common Stock shall not be all the shares purchasable
  under the within Warrant, a new Warrant is to be issued in the name of said
  undersigned covering the balance of the shares purchasable thereunder less any
  fraction of a share paid in cash.

 FORM OF ASSIGNMENT 

 

                     FOR
  VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers all
  the rights of the undersigned under the within Warrant, with respect to the
  number of shares of Common Stock covered thereby set forth hereinbelow, to:

	 Name of Assignee  	 Address  	 No of Shares  

 

 

 , and hereby irrevocably constitutes and appoints ___________________________________
  as agent and attorney-in-fact to transfer said Warrant on the books of the within-named
  corporation, with full power of substitution in the premises. 

 Dated: ________ __, 200_ 

 

	 In the presence of:  	  	 	 
	 	 		 
	  	Name: 	 	 
	  	 	 	 
	  	Signature: 	 	 
	  	 Title of Signing Officer or Agent (if any):  
	 	 		  
	  	Address: 	 	 
	 	 	 	 
	 	 	 	 
	  	 	 	 
	  	  	Note:	 The above signature should correspond exactly with the name
      on the face of the within Warrant, if applicable.Filed by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 10.4

 REGISTRATION RIGHTS AGREEMENT 

                     REGISTRATION
  RIGHTS AGREEMENT (this "Agreement"), dated as of November 8, 2004, by
  and among Banyan Corporation, an Oregon corporation with its headquarters located
  at 1925 Century Park East, Suite 500, Los Angeles, California 90067 (the "Company"),
  and each of the undersigned (together with their respective affiliates and any
  assignee or transferee of all of their respective rights hereunder, the "Initial
  Investors").

                     WHEREAS:

                     A.                In
  connection with the Securities Purchase Agreement by and among the parties hereto
  of even date herewith (the "Securities Purchase Agreement"), the Company
  has agreed, upon the terms and subject to the conditions contained therein,
  to issue and sell to the Initial Investors (i) secured convertible notes in
  the aggregate principal amount of up to Three Million Dollars ($3,000,000) (the
  "Notes") that are convertible into shares of the Company's Class A Common
  Stock (the "Common Stock"), upon the terms and subject to the limitations
  and conditions set forth in such Notes and (ii) warrants (the "Warrants")
  to acquire an aggregate of 3,000,000 shares of Common Stock, upon the terms
  and conditions and subject to the limitations and conditions set forth in the
  Warrants; and 

                     B.                
  To induce the Initial Investors to execute and deliver the Securities Purchase
  Agreement, the Company has agreed to provide certain registration rights under
  the Securities Act of 1933, as amended, and the rules and regulations thereunder,
  or any similar successor statute (collectively, the "1933 Act"), and
  applicable state securities laws; 

                     NOW,
  THEREFORE, in consideration of the premises and the mutual covenants contained
  herein and other good and valuable consideration, the receipt and sufficiency
  of which are hereby acknowledged, the Company and each of the Initial Investors
  hereby agree as follows: 

                                         1.                
  DEFINITIONS.

                                                             a.                
  As used in this Agreement, the following terms shall have the following
  meanings: 

                                                                                 (i)                
  "Investors" means the Initial Investors and any transferee or assignee
  who agrees to become bound by the provisions of this Agreement in accordance
  with Section 9 hereof. 

                                                                                 (ii)               
  "register," "registered," and "registration" refer
  to a registration effected by preparing and filing a Registration Statement
  or Statements in compliance with the 1933 Act and pursuant to Rule 415 under
  the 1933 Act or any successor rule providing for offering securities on a continuous
  basis ("Rule 415"), and the declaration or ordering of effectiveness
  of such Registration Statement by the United States Securities and Exchange
  Commission (the "SEC"). 

                                                                                 (iii)
                "Registrable
  Securities" means the Conversion Shares issued or issuable upon conversion
  or otherwise pursuant to the Notes and Additional Notes (as 

defined in the Securities Purchase Agreement) including, without limitation, Damages Shares (as defined in the Notes) issued or issuable pursuant to the Notes, shares of Common Stock issued or issuable in payment of the Standard Liquidated Damages
Amount (as defined in the Securities Purchase Agreement), shares issued or issuable in respect of interest or in redemption of the Notes in accordance with the terms thereof) and Warrant Shares issuable, upon exercise or otherwise pursuant to the
Warrants and Additional Warrants (as defined in the Securities Purchase Agreement), and any shares of capital stock issued or issuable as a dividend on or in exchange for or otherwise with respect to any of the foregoing. 

                                                                                 (iv)               
  "Registration Statement" means a registration statement of the Company
  under the 1933 Act. 

                                                             b.                
  Capitalized terms used herein and not otherwise defined herein shall have
  the respective meanings set forth in the Securities Purchase Agreement or the
  Convertible Note. 

                                         2.                
  REGISTRATION.

                                                             a.                
  Mandatory Registration. The Company shall prepare, and, on
  or prior to ninety (90) days from the date of Closing (as defined in the Securities
  Purchase Agreement) (the "Filing Date"), file with the SEC a Registration
  Statement on Form S-3 (or, if Form S-3 is not then available, on such form of
  Registration Statement as is then available to effect a registration of the
  Registrable Securities, subject to the consent of the Initial Investors, which
  consent will not be unreasonably withheld) covering the resale of the Registrable
  Securities underlying the Notes and Warrants issued or issuable pursuant to
  the Securities Purchase Agreement, which Registration Statement, to the extent
  allowable under the 1933 Act and the rules and regulations promulgated thereunder
  (including Rule 416), shall state that such Registration Statement also covers
  such indeterminate number of additional shares of Common Stock as may become
  issuable upon conversion of or otherwise pursuant to the Notes and exercise
  of the Warrants to prevent dilution resulting from stock splits, stock dividends
  or similar transactions. The number of shares of Common Stock initially included
  in such Registration Statement shall be no less than an amount equal to two
  (2) times the sum of the number of Conversion Shares that are then issuable
  upon conversion of the Notes and Additional Notes (based on the Variable Conversion
  Price as would then be in effect and assuming the Variable Conversion Price
  is the Conversion Price at such time), and the number of Warrant Shares that
  are then issuable upon exercise of the Warrants, without regard to any limitation
  on the Investor's ability to convert the Notes or exercise the Warrants. The
  Company acknowledges that the number of shares initially included in the Registration
  Statement represents a good faith estimate of the maximum number of shares issuable
  upon conversion of the Notes and upon exercise of the Warrants.

                                                             b.                
  Underwritten Offering. If any offering pursuant to a Registration
  Statement pursuant to Section 2(a) hereof involves an underwritten offering,
  the Investors who hold a majority in interest of the Registrable Securities
  subject to such underwritten offering, with the consent of a majority-in-interest
  of the Initial Investors, shall have the right to select one legal counsel and
  an investment banker or bankers and manager or managers to administer the 

2 

offering, which investment banker or bankers or manager or managers shall be reasonably satisfactory to the Company. 

                                                             c.                
  Payments by the Company. The Company shall use its best efforts
  to obtain effectiveness of the Registration Statement as soon as practicable.
  If (i) the Registration Statement(s) covering the Registrable Securities required
  to be filed by the Company pursuant to Section 2(a) hereof is not filed by the
  Filing Date or declared effective by the SEC on or prior to one hundred thirty-five
  (135) days from the date of Closing (as defined in the Securities Purchase Agreement),
  or (ii) after the Registration Statement has been declared effective by the
  SEC, sales of all of the Registrable Securities cannot be made pursuant to the
  Registration Statement, or (iii) the Common Stock is not listed or included
  for quotation on the Nasdaq National Market ("Nasdaq"), the Nasdaq SmallCap
  Market ("Nasdaq SmallCap"), the New York Stock Exchange (the "NYSE")
  or the American Stock Exchange (the "AMEX") after being so listed or
  included for quotation, or (iv) the Common Stock ceases to be traded on the
  Over-the-Counter Bulletin Board (the "OTCBB") or any equivalent replacement
  exchange prior to being listed or included for quotation on one of the aforementioned
  markets, then the Company will make payments to the Investors in such amounts
  and at such times as shall be determined pursuant to this Section 2(c) as partial
  relief for the damages to the Investors by reason of any such delay in or reduction
  of their ability to sell the Registrable Securities (which remedy shall not
  be exclusive of any other remedies available at law or in equity). The Company
  shall pay to each holder of the Notes or Registrable Securities an amount equal
  to the then outstanding principal amount of the Notes (and, in the case of holders
  of Registrable Securities, the principal amount of Notes from which such Registrable
  Securities were converted) ("Outstanding Principal Amount"), multiplied
  by the Applicable Percentage (as defined below) times the sum of: (i) the number
  of months (prorated for partial months) after the Filing Date or the end of
  the aforementioned one hundred thirty-five (135) day period and prior to the
  date the Registration Statement is declared effective by the SEC, provided,
  however, that there shall be excluded from such period any delays which are
  solely attributable to changes required by the Investors in the Registration
  Statement with respect to information relating to the Investors, including,
  without limitation, changes to the plan of distribution, or to the failure of
  the Investors to conduct their review of the Registration Statement pursuant
  to Section 3(h) below in a reasonably prompt manner; (ii) the number of months
  (prorated for partial months) that sales of all of the Registrable Securities
  cannot be made pursuant to the Registration Statement after the Registration
  Statement has been declared effective (including, without limitation, when sales
  cannot be made by reason of the Company's failure to properly supplement or
  amend the prospectus included therein in accordance with the terms of this Agreement,
  but excluding any days during an Allowed Delay (as defined in Section 3(f));
  and (iii) the number of months (prorated for partial months) that the Common
  Stock is not listed or included for quotation on the OTCBB, Nasdaq, Nasdaq SmallCap,
  NYSE or AMEX or that trading thereon is halted after the Registration Statement
  has been declared effective. The term "Applicable Percentage" means two
  hundredths (.02). (For example, if the Registration Statement becomes effective
  one (1) month after the end of such one hundred thirty-five (135) day period,
  the Company would pay $5,000 for each $250,000 of Outstanding Principal Amount.
  If thereafter, sales could not be made pursuant to the Registration Statement
  for an additional period of one (1) month, the Company would pay an additional
  $5,000 for each $250,000 of Outstanding Principal Amount.) Such amounts shall
  be paid in cash or, at the Company's 

3 

option, in shares of Common Stock priced at the Conversion Price (as defined in the Notes) on such payment date.

                                                             d.                
  Piggy-Back Registrations. Subject to the last sentence of
  this Section 2(d), if at any time prior to the expiration of the Registration
  Period (as hereinafter defined) the Company shall determine to file with the
  SEC a Registration Statement relating to an offering for its own account or
  the account of others under the 1933 Act of any of its equity securities (other
  than on Form S-4 or Form S-8 or their then equivalents relating to equity securities
  to be issued solely in connection with any acquisition of any entity or business
  or equity securities issuable in connection with stock option or other bona
  fide, employee benefit plans), the Company shall send to each Investor
  who is entitled to registration rights under this Section 2(d) written notice
  of such determination and, if within fifteen (15) days after the effective date
  of such notice, such Investor shall so request in writing, the Company shall
  include in such Registration Statement all or any part of the Registrable Securities
  such Investor requests to be registered, except that if, in connection with
  any underwritten public offering for the account of the Company the managing
  underwriter(s) thereof shall impose a limitation on the number of shares of
  Common Stock which may be included in the Registration Statement because, in
  such underwriter(s)' judgment, marketing or other factors dictate such limitation
  is necessary to facilitate public distribution, then the Company shall be obligated
  to include in such Registration Statement only such limited portion of the Registrable
  Securities with respect to which such Investor has requested inclusion hereunder
  as the underwriter shall permit. Any exclusion of Registrable Securities shall
  be made pro rata among the Investors seeking to include Registrable Securities
  in proportion to the number of Registrable Securities sought to be included
  by such Investors; provided, however, that the Company shall not
  exclude any Registrable Securities unless the Company has first excluded all
  outstanding securities, the holders of which are not entitled to inclusion of
  such securities in such Registration Statement or are not entitled to pro rata
  inclusion with the Registrable Securities; and provided, further,
  however, that, after giving effect to the immediately preceding proviso,
  any exclusion of Registrable Securities shall be made pro rata with holders
  of other securities having the right to include such securities in the Registration
  Statement other than holders of securities entitled to inclusion of their securities
  in such Registration Statement by reason of demand registration rights. No right
  to registration of Registrable Securities under this Section 2(d) shall be construed
  to limit any registration required under Section 2(a) hereof. If an offering
  in connection with which an Investor is entitled to registration under this
  Section 2(d) is an underwritten offering, then each Investor whose Registrable
  Securities are included in such Registration Statement shall, unless otherwise
  agreed by the Company, offer and sell such Registrable Securities in an underwritten
  offering using the same underwriter or underwriters and, subject to the provisions
  of this Agreement, on the same terms and conditions as other shares of Common
  Stock included in such underwritten offering. Notwithstanding anything to the
  contrary set forth herein, the registration rights of the Investors pursuant
  to this Section 2(d) shall only be available in the event the Company fails
  to timely file, obtain effectiveness or maintain effectiveness of any Registration
  Statement to be filed pursuant to Section 2(a) in accordance with the terms
  of this Agreement. 

                                                             e.                
  Eligibility for Form S-3, S-2, SB-2 or S-1; Conversion to Form
  S-3. The Company represents and warrants that it meets the
  requirements for the use of Form S-3, S-2, SB-2 or S-1 for registration of the
  sale by the Initial Investors and any other Investors of the Registrable Securities.
  The Company agrees to file all reports required to be 

4 

filed by the Company with the SEC in a timely manner so as to remain eligible or become eligible, as the case may be, and thereafter to maintain its eligibility, for the use of Form S-3 or S-2. If the Company is not currently eligible to use Form
S-3 or S-2, not later than five (5) business days after the Company first meets the registration eligibility and transaction requirements for the use of Form S-3 or S-2 (or any successor form) for registration of the offer and sale by the Initial
Investors and any other Investors of Registrable Securities, the Company shall file a Registration Statement on Form S-3 or S-2 (or such successor form) with respect to the Registrable Securities covered by the Registration Statement on Form SB-2 or
Form S-1, whichever is applicable, filed pursuant to Section 2(a) (and include in such Registration Statement on Form S-3 or S-2 the information required by Rule 429 under the 1933 Act) or convert the Registration Statement on Form SB-2 or Form S-1,
whichever is applicable, filed pursuant to Section 2(a) to a Form S-3 or S-2 pursuant to Rule 429 under the 1933 Act and cause such Registration Statement (or such amendment) to be declared effective no later than forty-five (45) days after filing.
In the event of a breach by the Company of the provisions of this Section 2(e), the Company will be required to make payments pursuant to Section 2(c) hereof. 

                                         3.                
  OBLIGATIONS OF THE COMPANY.

                     In
  connection with the registration of the Registrable Securities, the Company
  shall have the following obligations: 

                                                             a.                
  The Company shall prepare promptly, and file with the SEC not later than
  the Filing Date, a Registration Statement with respect to the number of Registrable
  Securities provided in Section 2(a), and thereafter use its best efforts to
  cause such Registration Statement relating to Registrable Securities to become
  effective as soon as possible after such filing but in no event later than one
  hundred thirty-five (135) days from the date of Closing), and keep the Registration
  Statement effective pursuant to Rule 415 at all times until such date as is
  the earlier of (i) the date on which all of the Registrable Securities have
  been sold and (ii) the date on which the Registrable Securities (in the opinion
  of counsel to the Initial Investors) may be immediately sold to the public without
  registration or restriction (including, without limitation, as to volume by
  each holder thereof) under the 1933 Act (the "Registration Period"),
  which Registration Statement (including any amendments or supplements thereto
  and prospectuses contained therein) shall not contain any untrue statement of
  a material fact or omit to state a material fact required to be stated therein,
  or necessary to make the statements therein not misleading. 

                                                             b.                
  The Company shall prepare and file with the SEC such amendments (including
  post-effective amendments) and supplements to the Registration Statements and
  the prospectus used in connection with the Registration Statements as may be
  necessary to keep the Registration Statements effective at all times during
  the Registration Period, and, during such period, comply with the provisions
  of the 1933 Act with respect to the disposition of all Registrable Securities
  of the Company covered by the Registration Statements until such time as all
  of such Registrable Securities have been disposed of in accordance with the
  intended methods of disposition by the seller or sellers thereof as set forth
  in the Registration Statements. In the event the number of shares available
  under a Registration Statement filed pursuant to this Agreement is insufficient
  to cover all of the Registrable Securities issued or issuable upon conversion
  of the Notes and exercise of the Warrants, the Company shall amend 

5 

the Registration Statement, or file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover all of the Registrable Securities, in each case, as soon as practicable, but in any event within fifteen
(15) days after the necessity therefor arises (based on the market price of the Common Stock and other relevant factors on which the Company reasonably elects to rely). The Company shall use its best efforts to cause such amendment and/or new
Registration Statement to become effective as soon as practicable following the filing thereof, but in any event within forty-five (45) days after the date on which the Company reasonably first determines (or reasonably should have determined) the
need therefor. The provisions of Section 2(c) above shall be applicable with respect to such obligation, with the one hundred thirty-five (135) days running from the day the Company reasonably first determines (or reasonably should have determined)
the need therefor. 

                                                             c.                
  The Company shall furnish to each Investor whose Registrable Securities
  are included in a Registration Statement and its legal counsel (i) promptly
  (but in no event more than two (2) business days) after the same is prepared
  and publicly distributed, filed with the SEC, or received by the Company, one
  copy of each Registration Statement and any amendment thereto, each preliminary
  prospectus and prospectus and each amendment or supplement thereto, and, in
  the case of the Registration Statement referred to in Section 2(a), each letter
  written by or on behalf of the Company to the SEC or the staff of the SEC, and
  each item of correspondence from the SEC or the staff of the SEC, in each case
  relating to such Registration Statement (other than any portion of any thereof
  which contains information for which the Company has sought confidential treatment),
  and (ii) promptly (but in no event more than two (2) business days) after the
  Registration Statement is declared effective by the SEC, such number of copies
  of a prospectus, including a preliminary prospectus, and all amendments and
  supplements thereto and such other documents as such Investor may reasonably
  request in order to facilitate the disposition of the Registrable Securities
  owned by such Investor. The Company will immediately notify each Investor by
  facsimile of the effectiveness of each Registration Statement or any post-effective
  amendment. The Company will promptly (but in no event more than ten (10) business
  days) respond to any and all comments received from the SEC (which comments
  shall promptly be made available to the Investors upon request), with a view
  towards causing each Registration Statement or any amendment thereto to be declared
  effective by the SEC as soon as practicable, shall promptly file an acceleration
  request as soon as practicable (but in no event more than two (2) business days)
  following the resolution or clearance of all SEC comments or, if applicable,
  following notification by the SEC that any such Registration Statement or any
  amendment thereto will not be subject to review and shall, if required by SEC
  rules, promptly file with the SEC a final prospectus as soon as practicable
  (but in no event more than two (2) business days) following receipt by the Company
  from the SEC of an order declaring the Registration Statement effective. In
  the event of a breach by the Company of the provisions of this Section 3(c),
  the Company will be required to make payments pursuant to Section 2(c) hereof.

                                                             d.                
  The Company shall use reasonable efforts to (i) register and qualify the
  Registrable Securities covered by the Registration Statements under such other
  securities or "blue sky" laws of such jurisdictions in the United States as
  the Investors who hold a majority in interest of the Registrable Securities
  being offered reasonably request, (ii) prepare and file in those jurisdictions
  such amendments (including post-effective amendments) and supplements to such
  registrations and qualifications as may be necessary to maintain the 

6 

effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions
reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (a) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (b) subject itself to general taxation in any such jurisdiction, (c) file a general consent to service of process in any such jurisdiction,
(d) provide any undertakings that cause the Company undue expense or burden, or (e) make any change in its charter or bylaws, which in each case the Board of Directors of the Company determines to be contrary to the best interests of the Company and
its shareholders. 

                                                             e.                
  In the event Investors who hold a majority-in-interest of the Registrable
  Securities being offered in the offering (with the approval of a majority-in-interest
  of the Initial Investors) select underwriters for the offering, the Company
  shall enter into and perform its obligations under an underwriting agreement,
  in usual and customary form, including, without limitation, customary indemnification
  and contribution obligations, with the underwriters of such offering. 

                                                             f.                
  As promptly as practicable after becoming aware of such event, the Company
  shall notify each Investor of the happening of any event, of which the Company
  has knowledge, as a result of which the prospectus included in any Registration
  Statement, as then in effect, includes an untrue statement of a material fact
  or omission to state a material fact required to be stated therein or necessary
  to make the statements therein not misleading, and use its best efforts promptly
  to prepare a supplement or amendment to any Registration Statement to correct
  such untrue statement or omission, and deliver such number of copies of such
  supplement or amendment to each Investor as such Investor may reasonably request;
  provided that, for not more than ten (10) consecutive trading days (or a total
  of not more than twenty (20) trading days in any twelve (12) month period),
  the Company may delay the disclosure of material non-public information concerning
  the Company (as well as prospectus or Registration Statement updating) the disclosure
  of which at the time is not, in the good faith opinion of the Company, in the
  best interests of the Company (an "Allowed Delay"); provided, further,
  that the Company shall promptly (i) notify the Investors in writing of the existence
  of (but in no event, without the prior written consent of an Investor, shall
  the Company disclose to such investor any of the facts or circumstances regarding)
  material non-public information giving rise to an Allowed Delay and (ii) advise
  the Investors in writing to cease all sales under such Registration Statement
  until the end of the Allowed Delay. Upon expiration of the Allowed Delay, the
  Company shall again be bound by the first sentence of this Section 3(f) with
  respect to the information giving rise thereto. 

                                                             g.
                  The
  Company shall use its best efforts to prevent the issuance of any stop order
  or other suspension of effectiveness of any Registration Statement, and, if
  such an order is issued, to obtain the withdrawal of such order at the earliest
  possible moment and to notify each Investor who holds Registrable Securities
  being sold (or, in the event of an underwritten offering, the managing underwriters)
  of the issuance of such order and the resolution thereof. 

7 

                                                             h.                
  The Company shall permit a single firm of counsel designated by the Initial
  Investors to review such Registration Statement and all amendments and supplements
  thereto (as well as all requests for acceleration or effectiveness thereof)
  not less than three (3) business days prior to their filing with the SEC, and
  not file any document in a form to which such counsel reasonably objects and
  will not request acceleration of such Registration Statement without prior notice
  to such counsel. The sections of such Registration Statement covering information
  with respect to the Investors, the Investor's beneficial ownership of securities
  of the Company or the Investors intended method of disposition of Registrable
  Securities shall conform to the information provided to the Company by each
  of the Investors. 

                                                             i.                
  The Company shall make generally available to its security holders as soon
  as practicable, but not later than ninety (90) days after the close of the period
  covered thereby, an earnings statement (in form complying with the provisions
  of Rule 158 under the 1933 Act) covering a twelve-month period beginning not
  later than the first day of the Company's fiscal quarter next following the
  effective date of the Registration Statement. 

                                                             j.                
  At the request of any Investor, the Company shall furnish, on the date that
  Registrable Securities are delivered to an underwriter, if any, for sale in
  connection with any Registration Statement or, if such securities are not being
  sold by an underwriter, on the date of effectiveness thereof (i) an opinion,
  dated as of such date, from counsel representing the Company for purposes of
  such Registration Statement, in form, scope and substance as is customarily
  given in an underwritten public offering, addressed to the underwriters, if
  any, and the Investors and (ii) a letter, dated such date, from the Company's
  independent certified public accountants in form and substance as is customarily
  given by independent certified public accountants to underwriters in an underwritten
  public offering, addressed to the underwriters, if any, and the Investors. 

                                                             k.                
  The Company shall make available for inspection by (i) any Investor, (ii)
  any underwriter participating in any disposition pursuant to a Registration
  Statement, (iii) one firm of attorneys and one firm of accountants or other
  agents retained by the Initial Investors, (iv) one firm of attorneys and one
  firm of accountants or other agents retained by all other Investors, and (v)
  one firm of attorneys retained by all such underwriters (collectively, the "Inspectors")
  all pertinent financial and other records, and pertinent corporate documents
  and properties of the Company, including without limitation, records of conversions
  by other holders of convertible securities issued by the Company and the issuance
  of stock to such holders pursuant to the conversions (collectively, the "Records"),
  as shall be reasonably deemed necessary by each Inspector to enable each Inspector
  to exercise its due diligence responsibility, and cause the Company's officers,
  directors and employees to supply all information which any Inspector may reasonably
  request for purposes of such due diligence; provided, however,
  that each Inspector shall hold in confidence and shall not make any disclosure
  (except to an Investor) of any Record or other information which the Company
  determines in good faith to be confidential, and of which determination the
  Inspectors are so notified, unless (a) the disclosure of such Records is necessary
  to avoid or correct a misstatement or omission in any Registration Statement,
  (b) the release of such Records is ordered pursuant to a subpoena or other order
  from a court or government body of competent jurisdiction, or (c) the information
  in such Records has been made generally available to the public other than by
  disclosure in violation of this or any other agreement. The Company shall not
  be required to 

8 

disclose any confidential information in such Records to any Inspector until and unless such Inspector shall have entered into confidentiality agreements (in form and substance satisfactory to the Company) with the Company with respect thereto,
substantially in the form of this Section 3(k). Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to
the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the
Company and any Investor) shall be deemed to limit the Investor's ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

                                                             l.                
  The Company shall hold in confidence and not make any disclosure of information
  concerning an Investor provided to the Company unless (i) disclosure of such
  information is necessary to comply with federal or state securities laws, (ii)
  the disclosure of such information is necessary to avoid or correct a misstatement
  or omission in any Registration Statement, (iii) the release of such information
  is ordered pursuant to a subpoena or other order from a court or governmental
  body of competent jurisdiction, or (iv) such information has been made generally
  available to the public other than by disclosure in violation of this or any
  other agreement. The Company agrees that it shall, upon learning that disclosure
  of such information concerning an Investor is sought in or by a court or governmental
  body of competent jurisdiction or through other means, give prompt notice to
  such Investor prior to making such disclosure, and allow the Investor, at its
  expense, to undertake appropriate action to prevent disclosure of, or to obtain
  a protective order for, such information. 

                                                             m.                
  The Company shall (i) cause all the Registrable Securities covered by the
  Registration Statement to be listed on each national securities exchange on
  which securities of the same class or series issued by the Company are then
  listed, if any, if the listing of such Registrable Securities is then permitted
  under the rules of such exchange, or (ii) to the extent the securities of the
  same class or series are not then listed on a national securities exchange,
  secure the designation and quotation, of all the Registrable Securities covered
  by the Registration Statement on Nasdaq or, if not eligible for Nasdaq, on Nasdaq
  SmallCap or, if not eligible for Nasdaq or Nasdaq SmallCap, on the OTCBB and,
  without limiting the generality of the foregoing, to arrange for at least two
  market makers to register with the National Association of Securities Dealers,
  Inc. ("NASD") as such with respect to such Registrable Securities. 

                                                             n.
                  The
  Company shall provide a transfer agent and registrar, which may be a single
  entity, for the Registrable Securities not later than the effective date of
  the Registration Statement. 

                                                             o.
                  The
  Company shall cooperate with the Investors who hold Registrable Securities being
  offered and the managing underwriter or underwriters, if any, to facilitate
  the timely preparation and delivery of certificates (not bearing any restrictive
  legends) representing Registrable Securities to be offered pursuant to a Registration
  Statement and enable such certificates to be in such denominations or amounts,
  as the case may be, as the managing underwriter or underwriters, if any, or
  the Investors may reasonably request and registered in such names as the managing
  underwriter or underwriters, if any, or the Investors may request, and, within
  three (3) business days after a Registration Statement which includes Registrable

9 

Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel selected by the Company to deliver, to the transfer agent for the Registrable Securities (with copies to the Investors whose Registrable Securities
are included in such Registration Statement) an instruction in the form attached hereto as Exhibit 1 and an opinion of such counsel in the form attached hereto as Exhibit 2. 

                                                             p.                
  At the request of the holders of a majority-in-interest of the Registrable
  Securities, the Company shall prepare and file with the SEC such amendments
  (including post-effective amendments) and supplements to a Registration Statement
  and any prospectus used in connection with the Registration Statement as may
  be necessary in order to change the plan of distribution set forth in such Registration
  Statement. 

                                                             q.                
  From and after the date of this Agreement, the Company shall not, and shall
  not agree to, allow the holders of any securities of the Company to include
  any of their securities in any Registration Statement under Section 2(a) hereof
  or any amendment or supplement thereto under Section 3(b) hereof without the
  consent of the holders of a majority-in-interest of the Registrable Securities.

                                                             r.                
  The Company shall take all other reasonable actions necessary to expedite
  and facilitate disposition by the Investors of Registrable Securities pursuant
  to a Registration Statement. 

                                         4.                
  OBLIGATIONS OF THE INVESTORS.

                     In
  connection with the registration of the Registrable Securities, the Investors
  shall have the following obligations: 

                                                             a.                
  It shall be a condition precedent to the obligations of the Company to complete
  the registration pursuant to this Agreement with respect to the Registrable
  Securities of a particular Investor that such Investor shall furnish to the
  Company such information regarding itself, the Registrable Securities held by
  it and the intended method of disposition of the Registrable Securities held
  by it as shall be reasonably required to effect the registration of such Registrable
  Securities and shall execute such documents in connection with such registration
  as the Company may reasonably request. At least three (3) business days prior
  to the first anticipated filing date of the Registration Statement, the Company
  shall notify each Investor of the information the Company requires from each
  such Investor.

                                                             b.                
  Each Investor, by such Investor's acceptance of the Registrable Securities,
  agrees to cooperate with the Company as reasonably requested by the Company
  in connection with the preparation and filing of the Registration Statements
  hereunder, unless such Investor has notified the Company in writing of such
  Investor's election to exclude all of such Investor's Registrable Securities
  from the Registration Statements. 

                                                             c.                
  In the event Investors holding a majority-in-interest of the Registrable
  Securities being registered (with the approval of the Initial Investors) determine
  to engage the services of an underwriter, each Investor agrees to enter into
  and perform such Investor's obligations under an underwriting agreement, in
  usual and customary form, including, without limitation, customary indemnification
  and contribution obligations, with the managing 

10 

underwriter of such offering and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities, unless such Investor has notified the Company in writing of such Investor's
election to exclude all of such Investor's Registrable Securities from such Registration Statement. 

                                                             d.                
  Each Investor agrees that, upon receipt of any notice from the Company of
  the happening of any event of the kind described in Section 3(f) or 3(g), such
  Investor will immediately discontinue disposition of Registrable Securities
  pursuant to the Registration Statement covering such Registrable Securities
  until such Investor's receipt of the copies of the supplemented or amended prospectus
  contemplated by Section 3(f) or 3(g) and, if so directed by the Company, such
  Investor shall deliver to the Company (at the expense of the Company) or destroy
  (and deliver to the Company a certificate of destruction) all copies in such
  Investor's possession, of the prospectus covering such Registrable Securities
  current at the time of receipt of such notice. 

                                                             e.                
  No Investor may participate in any underwritten registration hereunder unless
  such Investor (i) agrees to sell such Investor's Registrable Securities on the
  basis provided in any underwriting arrangements in usual and customary form
  entered into by the Company, (ii) completes and executes all questionnaires,
  powers of attorney, indemnities, underwriting agreements and other documents
  reasonably required under the terms of such underwriting arrangements, and (iii)
  agrees to pay its pro rata share of all underwriting discounts and commissions
  and any expenses in excess of those payable by the Company pursuant to Section
  5 below. 

                                         5.                
  EXPENSES OF REGISTRATION.

                     All
  reasonable expenses, other than underwriting discounts and commissions, incurred
  in connection with registrations, filings or qualifications pursuant to Sections
  2 and 3, including, without limitation, all registration, listing and qualification
  fees, printers and accounting fees, the fees and disbursements of counsel for
  the Company, and the reasonable fees and disbursements of one counsel selected
  by the Initial Investors pursuant to Sections 2(b) and 3(h) hereof shall be
  borne by the Company. 

                                         6.                
  INDEMNIFICATION.

                     In
  the event any Registrable Securities are included in a Registration Statement
  under this Agreement: 

                                                             a.                
  To the extent permitted by law, the Company will indemnify, hold harmless
  and defend (i) each Investor who holds such Registrable Securities, (ii) the
  directors, officers, partners, employees, agents and each person who controls
  any Investor within the meaning of the 1933 Act or the Securities Exchange Act
  of 1934, as amended (the "1934 Act"), if any, (iii) any underwriter (as
  defined in the 1933 Act) for the Investors, and (iv) the directors, officers,
  partners, employees and each person who controls any such underwriter within
  the meaning of the 1933 Act or the 1934 Act, if any (each, an "Indemnified
  Person"), against any joint or several losses, claims, damages, liabilities
  or expenses (collectively, together with actions, proceedings or inquiries by
  any regulatory or self-regulatory organization, whether 

11 

commenced or threatened, in respect thereof, "Claims") to which any of them may become subject insofar as such Claims arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration
Statement or the omission or alleged omission to state therein a material fact required to be stated or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in
any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the
omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading; or (iii) any violation or alleged violation by
the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities (the matters in the foregoing clauses
(i) through (iii) being, collectively, "Violations"). Subject to the restrictions set forth in Section 6(c) with respect to the number of legal counsel, the Company shall reimburse the Indemnified Person, promptly as such expenses are
incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by any Indemnified
Person or underwriter for such Indemnified Person expressly for use in connection with the preparation of such Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company
pursuant to Section 3(c) hereof; (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld; and (iii) with
respect to any preliminary prospectus, shall not inure to the benefit of any Indemnified Person if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then
amended or supplemented, such corrected prospectus was timely made available by the Company pursuant to Section 3(c) hereof, and the Indemnified Person was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise
to a Violation and such Indemnified Person, notwithstanding such advice, used it. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of
the Registrable Securities by the Investors pursuant to Section 9. 

                                                             b.                
  In connection with any Registration Statement in which an Investor is participating,
  each such Investor agrees severally and not jointly to indemnify, hold harmless
  and defend, to the same extent and in the same manner set forth in Section 6(a),
  the Company, each of its directors, each of its officers who signs the Registration
  Statement, each person, if any, who controls the Company within the meaning
  of the 1933 Act or the 1934 Act, any underwriter and any other shareholder selling
  securities pursuant to the Registration Statement or any of its directors or
  officers or any person who controls such shareholder or underwriter within the
  meaning of the 1933 Act or the 1934 Act (collectively and together with an Indemnified
  Person, an "Indemnified Party"), against any Claim to which any of them
  may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as
  such Claim arises out of or is based upon any Violation by such Investor, in
  each case to the extent (and only to the 

12 

extent) that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection with such Registration Statement; and subject to Section 6(c) such Investor will
reimburse any legal or other expenses (promptly as such expenses are incurred and are due and payable) reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 6(b) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld; provided,
further, however, that the Investor shall be liable under this Agreement (including this Section 6(b) and Section 7) for only that amount as does not exceed the net proceeds to such Investor as a result of the sale of Registrable
Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by
the Investors pursuant to Section 9. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect to any preliminary prospectus shall not inure to the benefit of any Indemnified
Party if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then amended or supplemented. 

                                                             c.                
  Promptly after receipt by an Indemnified Person or Indemnified Party under
  this Section 6 of notice of the commencement of any action (including any governmental
  action), such Indemnified Person or Indemnified Party shall, if a Claim in respect
  thereof is to be made against any indemnifying party under this Section 6, deliver
  to the indemnifying party a written notice of the commencement thereof, and
  the indemnifying party shall have the right to participate in, and, to the extent
  the indemnifying party so desires, jointly with any other indemnifying party
  similarly noticed, to assume control of the defense thereof with counsel mutually
  satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
  Party, as the case may be; provided, however, that an Indemnified
  Person or Indemnified Party shall have the right to retain its own counsel with
  the fees and expenses to be paid by the indemnifying party, if, in the reasonable
  opinion of counsel retained by the indemnifying party, the representation by
  such counsel of the Indemnified Person or Indemnified Party and the indemnifying
  party would be inappropriate due to actual or potential differing interests
  between such Indemnified Person or Indemnified Party and any other party represented
  by such counsel in such proceeding. The indemnifying party shall pay for only
  one separate legal counsel for the Indemnified Persons or the Indemnified Parties,
  as applicable, and such legal counsel shall be selected by Investors holding
  a majority-in-interest of the Registrable Securities included in the Registration
  Statement to which the Claim relates (with the approval of a majority-in-interest
  of the Initial Investors), if the Investors are entitled to indemnification
  hereunder, or the Company, if the Company is entitled to indemnification hereunder,
  as applicable. The failure to deliver written notice to the indemnifying party
  within a reasonable time of the commencement of any such action shall not relieve
  such indemnifying party of any liability to the Indemnified Person or Indemnified
  Party under this Section 6, except to the extent that the indemnifying party
  is actually prejudiced in its ability to defend such action. The indemnification
  required by this Section 6 shall be made by periodic payments of the amount
  thereof during the course of the investigation or defense, as such expense,
  loss, damage or liability is incurred and is due and payable. 

13 

                                         7.                
  CONTRIBUTION.

                     To
  the extent any indemnification by an indemnifying party is prohibited or limited
  by law, the indemnifying party agrees to make the maximum contribution with
  respect to any amounts for which it would otherwise be liable under Section
  6 to the fullest extent permitted by law; provided, however, that
  (i) no contribution shall be made under circumstances where the maker would
  not have been liable for indemnification under the fault standards set forth
  in Section 6, (ii) no seller of Registrable Securities guilty of fraudulent
  misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall
  be entitled to contribution from any seller of Registrable Securities who was
  not guilty of such fraudulent misrepresentation, and (iii) contribution (together
  with any indemnification or other obligations under this Agreement) by any seller
  of Registrable Securities shall be limited in amount to the net amount of proceeds
  received by such seller from the sale of such Registrable Securities. 

                                         8.                
  REPORTS UNDER THE 1934 ACT.

                     With
  a view to making available to the Investors the benefits of Rule 144 promulgated
  under the 1933 Act or any other similar rule or regulation of the SEC that may
  at any time permit the investors to sell securities of the Company to the public
  without registration ("Rule 144"), the Company agrees to: 

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

                                                             b.
                  file
  with the SEC in a timely manner all reports and other documents required of
  the Company under the 1933 Act and the 1934 Act so long as the Company remains
  subject to such requirements (it being understood that nothing herein shall
  limit the Company's obligations under Section 4(c) of the Securities Purchase
  Agreement) and the filing of such reports and other documents is required for
  the applicable provisions of Rule 144; and 

                                                             c.                
  furnish to each Investor so long as such Investor owns Registrable Securities,
  promptly upon request, (i) a written statement by the Company that it has complied
  with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act,
  (ii) a copy of the most recent annual or quarterly report of the Company and
  such other reports and documents so filed by the Company, and (iii) such other
  information as may be reasonably requested to permit the Investors to sell such
  securities pursuant to Rule 144 without registration. 

                                         9.                
  ASSIGNMENT OF REGISTRATION RIGHTS.

                     The
  rights under this Agreement shall be automatically assignable by the Investors
  to any transferee of all or any portion of Registrable Securities if: (i) the
  Investor agrees in writing with the transferee or assignee to assign such rights,
  and a copy of such agreement is furnished to the Company within a reasonable
  time after such assignment, (ii) the Company is, within a reasonable time after
  such transfer or assignment, furnished with written notice of (a) the name and
  address of such transferee or assignee, and (b) the securities with respect
  to which such registration rights are being transferred or assigned, (iii) following
  such transfer or assignment, the further disposition of such securities by the
  transferee or assignee is restricted under the 1933 

14 

Act and applicable state securities laws, (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the
provisions contained herein, (v) such transfer shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement, and (vi) such transferee shall be an "accredited investor" as that term defined in Rule
501 of Regulation D promulgated under the 1933 Act. 

                                         10.               
  AMENDMENT OF REGISTRATION RIGHTS.

                     Provisions
  of this Agreement may be amended and the observance thereof may be waived (either
  generally or in a particular instance and either retroactively or prospectively),
  only with written consent of the Company, each of the Initial Investors (to
  the extent such Initial Investor still owns Registrable Securities) and Investors
  who hold a majority interest of the Registrable Securities. Any amendment or
  waiver effected in accordance with this Section 10 shall be binding upon each
  Investor and the Company. 

                                         11.               
  MISCELLANEOUS.

                                                             a.                
  A person or entity is deemed to be a holder of Registrable Securities whenever
  such person or entity owns of record such Registrable Securities. If the Company
  receives conflicting instructions, notices or elections from two or more persons
  or entities with respect to the same Registrable Securities, the Company shall
  act upon the basis of instructions, notice or election received from the registered
  owner of such Registrable Securities. 

                                                             b.                
  Any notices required or permitted to be given under the terms hereof shall
  be sent by certified or registered mail (return receipt requested) or delivered
  personally or by courier (including a recognized overnight delivery service)
  or by facsimile and shall be effective five days after being placed in the mail,
  if mailed by regular United States mail, or upon receipt, if delivered personally
  or by courier (including a recognized overnight delivery service) or by facsimile,
  in each case addressed to a party. The addresses for such communications shall
  be:

If to the Company: 

Banyan Corporation 

  1925 Century Park East, Suite 500 

  Los Angeles, California 90067 

  Attention: Chief Executive Officer 

  Telephone: 800-808-0899 

  Facsimile: 403-287-8804 

15 

With a copy to: 

Noel E. Guardi, Esq. 

  3224 South Newcombe Street 

  Suite 2105 

  Lakewood, Colorado 80227 

  Telephone: 303-969-8886 

  Facsimile: 303-969-8887 

 If to an Investor: to the address set forth immediately below such Investor's
  name on the signature pages to the Securities Purchase Agreement.

With a copy to: 

Ballard Spahr Andrews & Ingersoll, LLP 

  1735 Market Street 

  51st Floor 

  Philadelphia, Pennsylvania 19103 

  Attention: Gerald J. Guarcini, Esq. 

  Telephone: 215-865-8625 

  Facsimile: 215-864-8999 

  Email: guarcini@ballardspahr.com 

                                                             c.                
  Failure of any party to exercise any right or remedy under this Agreement
  or otherwise, or delay by a party in exercising such right or remedy, shall
  not operate as a waiver thereof. 

                                                             d.                
   THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE
  WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO
  BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF
  CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION
  OF THE UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH RESPECT
  TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN
  CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH
  PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
  OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
  UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
  SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
  SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
  BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
  SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
  BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES
  NOT PREVAIL IN 

16 

ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE. 

                                                             e.                
  In the event that any provision of this Agreement is invalid or unenforceable
  under any applicable statute or rule of law, then such provision shall be deemed
  inoperative to the extent that it may conflict therewith and shall be deemed
  modified to conform with such statute or rule of law. Any provision hereof which
  may prove invalid or unenforceable under any law shall not affect the validity
  or enforceability of any other provision hereof. 

                                                             f.
                  This
  Agreement, the Notes, the Warrants and the Securities Purchase Agreement (including
  all schedules and exhibits thereto) constitute the entire agreement among the
  parties hereto with respect to the subject matter hereof and thereof. There
  are no restrictions, promises, warranties or undertakings, other than those
  set forth or referred to herein and therein. This Agreement and the Securities
  Purchase Agreement supersede all prior agreements and understandings among the
  parties hereto with respect to the subject matter hereof and thereof. 

                                                             g.                
  Subject to the requirements of Section 9 hereof, this Agreement shall be
  binding upon and inure to the benefit of the parties and their successors and
  assigns. 

                                                             h.
                  The
  headings in this Agreement are for convenience of reference only and shall not
  form part of, or affect the interpretation of, this Agreement. 

                                                             i.                
  This Agreement may be executed in two or more counterparts, each of which
  shall be deemed an original but all of which shall constitute one and the same
  agreement and shall become effective when counterparts have been signed by each
  party and delivered to the other party. This Agreement, once executed by a party,
  may be delivered to the other party hereto by facsimile transmission of a copy
  of this Agreement bearing the signature of the party so delivering this Agreement.

                                                             j.                
  Each party shall do and perform, or cause to be done and performed, all
  such further acts and things, and shall execute and deliver all such other agreements,
  certificates, instruments and documents, as the other party may reasonably request
  in order to carry out the intent and accomplish the purposes of this Agreement
  and the consummation of the transactions contemplated hereby. 

                                                             k.                
  Except as otherwise provided herein, all consents and other determinations
  to be made by the Investors pursuant to this Agreement shall be made by Investors
  holding a majority of the Registrable Securities, determined as if the all of
  the Notes then outstanding have been converted into for Registrable Securities.

                                                             l.                
  The Company acknowledges that a breach by it of its obligations hereunder
  will cause irreparable harm to each Investor by vitiating the intent and purpose
  of the transactions contemplated hereby. Accordingly, the Company acknowledges
  that the remedy at law for breach of its obligations under this Agreement will
  be inadequate and agrees, in the event of a breach or threatened breach by the
  Company of any of the provisions under this Agreement, that each Investor shall
  be entitled, in addition to all other available remedies in law or in equity,

17 

 and in addition to the penalties assessable herein, to an injunction
  or injunctions restraining, preventing or curing any breach of this Agreement
  and to enforce specifically the terms and provisions hereof, without the necessity
  of showing economic loss and without any bond or other security being required.

                                                             m.                
  The language used in this Agreement will be deemed to be the language chosen
  by the parties to express their mutual intent, and no rules of strict construction
  will be applied against any party. 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

18 

                     IN
  WITNESS WHEREOF, the Company and the undersigned Initial Investors have
  caused this Agreement to be duly executed as of the date first above written.

 BANYAN CORPORATION 

  

 ______________________________________

  Michael J. Gelmon 

  Chief Executive Officer 

 

 AJW PARTNERS, LLC 

  By: SMS Group, LLC 

 ______________________________________

  Corey S. Ribotsky 

  Manager

 

 AJW OFFSHORE, LTD. 

  By: First Street Manager II, LLC 

 ______________________________________

  Corey S. Ribotsky 

  Manager 

 

 AJW QUALIFIED PARTNERS, LLC 

  By: AJW Manager, LLC 

 ____________________________________

  Corey S. Ribotsky 

  Manager 

  

NEW MILLENNIUM CAPITAL PARTNERS, II, LLC 

  By: First Street Manager II, LLC 

 ______________________________________

  Corey S. Ribotsky 

  Manager 

19

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