Document:

ex10_2.htm

    
      

    

    Exhibit
      10.2

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    REGISTRATION
      RIGHTS AGREEMENT
      (this "Agreement"),
      dated as of December 20, 2007, by and among EnterConnect, Inc., a Nevada
      Corporation, with headquarters located at 100 Century Center Court, Suite 650,
      San Jose, California 95112 (the "Company"), and the undersigned
      buyers (each, a "Buyer",
      and collectively, the "Buyers").

    

    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 set forth in the Securities Purchase Agreement, to issue and sell
      to
      each Buyer (i) senior secured convertible notes (the "Notes") which will, among
      other things, be convertible into shares of the Company's common stock, par
      value $0.001 per share (the "Common Stock," as converted,
      collectively, the "Conversion
      Shares") and (ii) warrants (the "Warrants"), which will
      be
      exercisable to purchase shares of Common Stock (as exercised collectively,
      the
      "Warrant
      Shares").

    

    B.           In
      accordance with the terms of 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 Buyers hereby agree as
      follows:

    

    1.           Definitions.

    

    Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Securities Purchase Agreement.  As used in
      this Agreement, the following terms shall have the following meanings:

    

    a.           "Additional
      Effective Date"
      means the date the Additional Registration Statement is declared effective
      by
      the SEC.

    

    b.           "Additional
      Effectiveness
      Deadline" means the date which is thirty (30) calendar days after the
      earlier of the Additional Filing Date and the Additional Filing Deadline or
      in
      the event that the Registration Statement is subject to a full review by the
      SEC, ninety (90) calendar days after the earlier of the Additional Filing Date
      and the Additional Filing Deadline.

    

    c.           "Additional
      Filing Date" means
      the date on which the Additional Registration Statement is filed with the
      SEC.

    

    d.           "Additional
      Filing Deadline"
      means if Cutback Shares are required to be included in any Additional
      Registration Statement, the later of (i) the date sixty (60) days after the
      date
      substantially all of the Registrable Securities registered under the immediately
      preceding Registration Statement are sold and (ii) the date six (6)
      months from the Initial Effective Date or the most recent Additional Effective
      Date, as applicable.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    e.           "Additional
      Registrable
      Securities" means, (i) any Cutback Shares not previously included on a
      Registration Statement and (ii) any capital stock of the Company issued or
      issuable with respect to the Notes, Conversion Shares, the Warrant Shares,
      the
      Warrants or Cutback Shares as a result of any stock split, stock dividend,
      recapitalization, exchange or similar event or otherwise, without regard to
      any
      limitations on conversion and/or redemption of the Notes or exercise of the
      Warrants.

    

    f.           "Additional
      Registration
      Statement" means a registration statement or registration statements of
      the Company filed under the 1933 Act covering any Additional Registrable
      Securities.

    

    g.           "Additional
      Required Registration
      Amount" means any Cutback Shares not previously included on a
      Registration Statement, all subject to adjustment as provided in Section 2(f),
      without regard to any limitations on conversions and/or redemptions of the
      Notes
      or exercises of the Warrants.

    

    h.           "Business
      Day" means any day
      other than Saturday, Sunday or any other day on which commercial banks in the
      City of New York are authorized or required by law to remain closed.

    

    i.           "Closing
      Date" shall have the
      meaning set forth in the Securities Purchase Agreement.

    

    j.           "Cutback
      Shares" means any of
      the Initial Required Registration Amount (without regard to clause (II) in
      the
      definition thereof) of Registrable Securities not included in all Registration
      Statements previously declared effective hereunder as a result of a limitation
      on the maximum number of shares of Common Stock of the Company permitted to
      be
      registered by the staff of the SEC pursuant to Rule 415.  For the purpose of determining
      the
      Cutback Securities, in order to determine any applicable Required Registration
      Amount, first the Warrant Shares shall be excluded on a pro rata basis until
      all
      of the Warrant Shares have been excluded.

    

    k.           "Effective
      Date" means the
      Initial Effective Date and the Additional Effective Date, as applicable.

    

    l.           "Effectiveness
      Deadline" means
      the Initial Effectiveness Deadline and the Additional Effectiveness Deadline,
      as
      applicable.

    

    m.           "Filing
      Deadline" means the
      Initial Filing Deadline and the Additional Filing Deadline, as
      applicable.

    

    n.           "Initial
      Effective Date" means
      the date that the Initial Registration Statement has been declared effective
      by
      the SEC.

    

    o.           "Initial
      Effectiveness
      Deadline" means the date
      (i) in the event that the Initial Registration Statement is not subject to
      a
      full review by the SEC, ninety (90) calendar days after the Closing Date or
      (ii)
      in the event that the Initial Registration Statement is subject to a full review
      by the SEC, one-hundred and twenty (120) calendar days after the Closing
      Date.

    
      
         

      

      
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    p.           "Initial
      Filing Deadline" means
      the date which is thirty (30) calendar days after the Closing Date.

    

    q.           "Initial
      Registrable
      Securities" for the Initial Registration Statement means (i) the
      Conversion Shares issued or issuable upon conversion of the Notes, (ii) the
      Warrant Shares issued or issuable upon exercise of the Warrants, and (iii)
      any
      capital stock of the Company issued or issuable, with respect to the Notes,
      Conversion Shares, the Warrant Shares or the Warrants as a result of any stock
      split, stock dividend, recapitalization, exchange or similar event or otherwise,
      without regard to any limitations on conversion and/or redemption of the Notes
      or exercise of the Warrants.

    

    r.           "Initial
      Registration
      Statement" means a registration statement or registration statements of
      the Company filed under the 1933 Act covering the Initial Registrable
      Securities.

    

    s.           "Initial
      Required Registration
      Amount" means (I)
130% of the
      sum of
the number of Conversion Shares issued and issuable pursuant to the
      Notes
      as of the Trading Day (as defined in the Securities Purchase Agreement)
      immediately preceding the applicable date of determination, and (ii) the number
      of Warrant Shares issued and issuable pursuant to the Warrants as of the Trading
      Day immediately preceding the applicable date of determination and, all subject to adjustment
      as provided
      in Section 2(f), without regard to any limitations on exercises of the Warrants
      or (II) such other amount as may be required by the staff of the SEC pursuant
      to
      Rule 415 with any cutback applied pro rata to all Registrable
      Securities.

    

    t.           "Investor"
      means a Buyer or any
      transferee or assignee thereof to whom a Buyer assigns its rights under this
      Agreement and who agrees to become bound by the provisions of this Agreement
      in
      accordance with Section 9 and any transferee or assignee thereof to whom a
      transferee or assignee assigns its rights under this Agreement and who agrees
      to
      become bound by the provisions of this Agreement in accordance with Section
      9.

    

    u.           "Person"
      means an individual, a
      limited liability company, a partnership, a joint venture, a corporation, a
      trust, an unincorporated organization and a government or any department or
      agency thereof.

    

    v.           "register,"
      "registered," and "registration"
      refer to a
      registration effected by preparing and filing one or more Registration
      Statements in compliance with the 1933 Act and pursuant to Rule 415 and the
      declaration or ordering of effectiveness of such Registration Statement(s)
      by
      the SEC.

    

    w.           "Registrable
      Securities" means
      the Initial Registrable Securities and the Additional Registrable
      Securities.

    

    x.           "Registration
      Statement" means
      the Initial Registration Statement and the Additional Registration Statement,
      as
      applicable.

    
      
         

      

      
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    y.           "Required
      Holders" means the
      holders of at least a majority of the Registrable Securities.

    

    z.           "Required
      Registration Amount"
      means either the Initial Required Registration Amount or the Additional Required
      Registration Amount, as applicable.

    

    aa.         "Rule
      415" means Rule 415
      promulgated under the 1933 Act or any successor rule providing for offering
      securities on a continuous or delayed basis.

    

    bb.         "SEC"
      means the United States
      Securities and Exchange Commission.

    

    2.           Registration.

    

    a.           Initial
      Mandatory
      Registration.  The Company shall prepare, and, as soon as
      practicable, but in no event later than the Initial Filing Deadline, file with
      the SEC the Initial Registration Statement on Form S-3 covering the resale
      of
      all of the Initial Registrable Securities.  In the event that Form S-3
      is unavailable for such a registration, the Company shall use such other form
      as
      is available for such a registration on another appropriate form reasonably
      acceptable to the Required Holders, subject to the provisions of Section
      2(e).  The Initial Registration Statement prepared pursuant hereto
      shall register for resale at least the number of shares of Common Stock equal
      to
      the Initial Required Registration Amount determined as of the date the Initial
      Registration Statement is initially filed with the SEC.  The Initial
      Registration Statement shall contain (except if otherwise directed by the
      Required Holders) the "Selling Stockholders"
      and "Plan of
      Distribution" sections in substantially the form attached hereto as Exhibit
      B.  The Company shall use its best efforts to have the Initial
      Registration Statement declared effective by the SEC as soon as practicable,
      but
      in no event later than the Initial Effectiveness Deadline.  By 9:30
      a.m. New York time on the Business Day following the Initial Effective Date,
      the
      Company shall file with the SEC in accordance with Rule 424 under the 1933
      Act
      the final prospectus to be used in connection with sales pursuant to such
      Initial Registration Statement.

    

    b.           Additional
      Mandatory
      Registrations.  The Company shall prepare, and, as soon as
      practicable but in no event later than the Additional Filing Deadline, file
      with
      the SEC an Additional Registration Statement on Form S-3 covering the resale
      of
      all of the Additional Registrable Securities not previously registered on an
      Additional Registration Statement hereunder.  To the extent the staff
      of the SEC does not permit the Additional Required Registration Amount to be
      registered on an Additional Registration Statement, the Company shall file
      Additional Registration Statements successively trying to register on each
      such
      Additional Registration Statement the maximum number of remaining Additional
      Registrable Securities until the Additional Required Registration Amount has
      been registered with the SEC.  In the event that Form S-3 is
      unavailable for such a registration, the Company shall use such other form
      as is
      available for such a registration on another appropriate form reasonably
      acceptable to the Required Holders, subject to the provisions of Section
      2(e).  Each Additional Registration Statement prepared pursuant hereto
      shall register for resale at least that number of shares of Common Stock equal
      to the Additional Required Registration Amount determined as of the date such
      Additional Registration Statement is initially filed with the
      SEC.  Each Additional Registration Statement shall contain (except if
      otherwise directed by the Required Holders) the "Selling Stockholders"
      and "Plan of
      Distribution" sections in substantially the form attached hereto as Exhibit
      B.  The Company shall use its best efforts to have each
      Additional Registration Statement declared effective by the SEC as soon as
      practicable, but in no event later than the Additional Effectiveness
      Deadline.  By 9:30 a.m. New York time on the Business Day following
      the Additional Effective Date, the
      Company shall file with the SEC in accordance with Rule 424 under the 1933
      Act
      the final prospectus to be used in connection with sales pursuant to such
      Additional Registration Statement.

    
      
         

      

      
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    c.           Allocation
      of Registrable
      Securities.  The initial number of Registrable Securities
      included in any Registration Statement and any increase in the number of
      Registrable Securities included therein shall be allocated pro rata among the
      Investors based on the number of Registrable Securities held by each Investor
      at
      the time the Registration Statement covering such initial number of Registrable
      Securities or increase thereof is declared effective by the SEC.  In
      the event that an Investor sells or otherwise transfers any of such Investor's
      Registrable Securities, each transferee shall be allocated a pro rata portion
      of
      the then remaining number of Registrable Securities included in such
      Registration Statement for such transferor.  Any shares of Common
      Stock included in a Registration Statement and which remain allocated to any
      Person which ceases to hold any Registrable Securities covered by such
      Registration Statement shall be allocated to the remaining Investors, pro rata
      based on the number of Registrable Securities then held by such Investors which
      are covered by such Registration Statement.  In no event shall the
      Company include any securities other than Registrable Securities on any
      Registration Statement without the prior written consent of the Required
      Holders.

    

    d.           Legal
      Counsel.  Subject to Section 5 hereof, the Required Holders
      shall have the right to select one legal counsel to review and oversee any
      registration pursuant to this Section 2 ("Legal Counsel"), which shall
      be Schulte Roth & Zabel LLP or such other counsel as thereafter designated
      by the Required Holders.  The Company and Legal Counsel shall
      reasonably cooperate with each other in performing the Company's obligations
      under this Agreement.

    

    e.           Ineligibility
      for Form
      S-3.  In the event that Form S-3 is not available for the
      registration of the resale of Registrable Securities hereunder, the Company
      shall (i) register the resale of the Registrable Securities on another
      appropriate form reasonably acceptable to the Required Holders and (ii)
      undertake to register the Registrable Securities on Form S-3 as soon as such
      form is available, provided that the Company shall maintain the effectiveness
      of
      the Registration Statement then in effect until such time as a Registration
      Statement on Form S-3 covering the Registrable Securities has been declared
      effective by the SEC.

    

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

    
      
         

      

      
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    g.           Effect
      of Failure to File
      and Obtain and Maintain Effectiveness of Registration
      Statement.  If (i) a Registration Statement covering all of the
      Registrable Securities required to be covered thereby and required to be filed
      by the Company pursuant to this Agreement is (A) not filed with the SEC on
      or
      before the respective Filing Deadline (a "Filing Failure") or (B) not
      declared effective by the SEC on or before the respective Effectiveness Deadline
      (an "Effectiveness
      Failure") or (ii) on any day after the Effective Date sales of all of the
      Registrable Securities required to be included on such Registration Statement
      cannot be made (other than during an Allowable Grace Period (as defined in
      Section 3(r)) pursuant to such Registration Statement or otherwise (including,
      without limitation, because of a failure to keep such Registration Statement
      effective, to disclose such information as is necessary for sales to be made
      pursuant to such Registration Statement, to register a sufficient number of
      shares of Common Stock or to maintain the listing of the Common Stock) (a "Maintenance Failure") then, as
      partial relief for the damages to any holder by reason of any such delay in
      or
      reduction of its ability to sell the underlying shares of Common Stock (which
      remedy shall not be exclusive of any other remedies available at law or in
      equity), the Company shall pay to each holder of Registrable Securities relating
      to such Registration Statement an amount in cash equal to one and one half
      percent (1.5%) of the aggregate Purchase Price (as such term is defined in
      the
      Securities Purchase Agreement) of such Investor's Registrable Securities whether
      or not included in such Registration Statement, on each of the following
      dates:  (i) the day of a Filing Failure; (ii) the day of an
      Effectiveness Failure; (iii) the initial day of a Maintenance Failure; (iv)
      on
      every thirtieth day after the day of a Filing Failure and thereafter (pro rated
      for periods totaling less than thirty days) until such Filing Failure is cured;
      (v) on every thirtieth day after the day of an Effectiveness Failure and
      thereafter (pro rated for periods totaling less than thirty days) until such
      Effectiveness Failure is cured; and (vi) on every thirtieth day after the
      initial day of a Maintenance Failure and thereafter (pro rated for periods
      totaling less than thirty days) until such Maintenance Failure is
      cured.  The payments to which a holder shall be entitled pursuant to
      this Section 2(g) are referred to herein as "Registration Delay
      Payments."  Registration Delay Payments shall be paid on the
      earlier of (I) the dates set forth above and (II) the third Business Day after
      the event or failure giving rise to the Registration Delay Payments is
      cured.  In the event the Company fails to make Registration Delay
      Payments in a timely manner, such Registration Delay Payments shall bear
      interest at the rate of one and one half percent (1.5%) per month (prorated
      for
      partial months) until paid in full.

    
      
         

      

      
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    3.           Related
      Obligations.

    

    At
      such
      time as the Company is obligated to file a Registration Statement with the
      SEC
      pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its best
      efforts to effect the registration of the Registrable Securities in accordance
      with the intended method of disposition thereof and, pursuant thereto, the
      Company shall have the following obligations:

    

    a.           The
      Company shall promptly prepare and file with the SEC a Registration Statement
      with respect to the Registrable Securities and use its best efforts to cause
      such Registration Statement relating to the Registrable Securities to become
      effective as soon as practicable after such filing (but in no event later than
      the Effectiveness Deadline).  The Company shall keep each Registration
      Statement effective pursuant to Rule 415 at all times until the earlier of
      (i)
      the date as of which the Investors may sell all of the Registrable Securities
      covered by such Registration Statement without restriction pursuant to Rule
      144(k) (or any successor thereto) promulgated under the 1933 Act or (ii) the
      date on which the Investors shall have sold all of the Registrable Securities
      covered by such Registration Statement (the "Registration
      Period").  The Company shall ensure that each Registration
      Statement (including any amendments or supplements thereto and prospectuses
      contained therein) shall not contain any untrue statement of a material fact
      or
      omit to state a material fact required to be stated therein, or necessary to
      make the statements therein (in the case of prospectuses, in the light of the
      circumstances in which they were made) not misleading.  The term "best
      efforts" shall mean, among other things, that the Company shall submit to the
      SEC, within two (2) Business Days after the later of the date that (i) the
      Company learns that no review of a particular Registration Statement will be
      made by the staff of the SEC or that the staff has no further comments on a
      particular Registration Statement, as the case may be, and (ii) the approval
      of
      Legal Counsel pursuant to Section 3(c) (which approval is immediately sought),
      a
      request for acceleration of effectiveness of such Registration Statement to
      a
      time and date not later than two (2) Business Days after the submission of
      such
      request.  The Company shall respond in writing to comments made by the
      SEC in respect of a Registration Statement as soon as practicable, but in no
      event later than fifteen (15) days after the receipt of comments by or notice
      from the SEC that an amendment is required in order for a Registration Statement
      to be declared effective.

    

    b.           The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      the
      prospectus used in connection with such Registration Statement, which prospectus
      is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may
      be
      necessary to keep such Registration Statement 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 such Registration Statement until such time as all of such
      Registrable Securities shall have been disposed of in accordance with the
      intended methods of disposition by the seller or sellers thereof as set forth
      in
      such Registration Statement.  In the case of amendments and
      supplements to a Registration Statement which are required to be filed pursuant
      to this Agreement (including pursuant to this Section 3(b)) by reason of the
      Company filing a report on Form 10-Q, Form 10-QSB, Form 10-K, Form 10-KSB or
      any
      analogous report under the Securities Exchange Act of 1934, as amended (the
      "1934 Act"), the Company
      shall have incorporated such report by reference into such Registration
      Statement, if applicable, or shall file such amendments or supplements with
      the
      SEC on the same day on which the 1934 Act report is filed which created the
      requirement for the Company to amend or supplement such Registration
      Statement.

    
      
         

      

      
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    c.           The
      Company shall (A) permit Legal Counsel to review and comment upon (i) a
      Registration Statement at least five (5) Business Days prior to its filing
      with
      the SEC and (ii) all amendments and supplements to all Registration Statements
      (except for Annual Reports on Form 10-K or Form 10-KSB, Quarterly Reports on
      Form 10-Q or Form 10-QSB, Current Reports on Form 8-K, and any similar or
      successor reports) within a reasonable number of days prior to their filing
      with
      the SEC, and (B) not file any Registration Statement or amendment or supplement
      thereto in a form to which Legal Counsel reasonably objects.  The
      Company shall not submit a request for acceleration of the effectiveness of
      a
      Registration Statement or any amendment or supplement thereto without the prior
      approval of Legal Counsel, which consent shall not be unreasonably
      withheld.  The Company shall furnish to Legal Counsel, without charge,
      (i) copies of any correspondence from the SEC or the staff of the SEC to the
      Company or its representatives relating to any Registration Statement, (ii)
      promptly after the same is prepared and filed with the SEC, one copy of any
      Registration Statement and any amendment(s) thereto, including financial
      statements and schedules, all documents incorporated therein by reference,
      if
      requested by an Investor, and all exhibits and (iii) upon the effectiveness
      of
      any Registration Statement, one copy of the prospectus included in such
      Registration Statement and all amendments and supplements
      thereto.  The Company shall reasonably cooperate with Legal Counsel in
      performing the Company's obligations pursuant to this Section 3.

    

    d.           The
      Company shall furnish to each Investor whose Registrable Securities are included
      in any Registration Statement, without charge, (i) promptly after the same
      is
      prepared and filed with the SEC, at least one copy of such Registration
      Statement and any amendment(s) thereto, including financial statements and
      schedules, all documents incorporated therein by reference, if requested by
      an
      Investor, all exhibits and each preliminary prospectus, (ii) upon the
      effectiveness of any Registration Statement, ten (10) copies of the prospectus
      included in such Registration Statement and all amendments and supplements
      thereto (or such other number of copies as such Investor may reasonably request)
      and (iii) such other documents, including copies of any preliminary or final
      prospectus, as such Investor may reasonably request from time to time in order
      to facilitate the disposition of the Registrable Securities owned by such
      Investor.

    

    e.           The
      Company shall use its best efforts to (i) register and qualify, unless an
      exemption from registration and qualification applies, the resale by Investors
      of the Registrable Securities covered by a Registration Statement under such
      other securities or "blue sky" laws of all applicable jurisdictions in the
      United States, (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 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 (x) qualify to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
      or (z) file a general consent to service of process in any such
      jurisdiction.  The Company shall promptly notify Legal Counsel and
      each Investor who holds Registrable Securities of the receipt by the Company
      of
      any notification with respect to the suspension of the registration or
      qualification of any of the Registrable Securities for sale under the securities
      or "blue sky" laws of any jurisdiction in the United States or its receipt
      of
      actual notice of the initiation or threatening of any proceeding for such
      purpose.

    
      
         

      

      
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    f.           The
      Company shall notify Legal Counsel and each Investor in writing of the happening
      of any event, as promptly as practicable after becoming aware of such event,
      as
      a result of which the prospectus included in a 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, in the light of the circumstances under which they were
      made, not misleading (provided that in no event shall such notice contain any
      material, nonpublic information), and, subject to Section 3(r), promptly prepare
      a supplement or amendment to such Registration Statement to correct such untrue
      statement or omission and deliver ten (10) copies of such supplement or
      amendment to Legal Counsel and each Investor (or such other number of copies
      as
      Legal Counsel or such Investor may reasonably request).  The Company
      shall also promptly notify Legal Counsel and each Investor in writing (i) when
      a
      prospectus or any prospectus supplement or post-effective amendment has been
      filed, and when a Registration Statement or any post-effective amendment has
      become effective (notification of such effectiveness shall be delivered to
      Legal
      Counsel and each Investor by facsimile or e-mail on the same day of such
      effectiveness and by overnight mail), (ii) of any request by the SEC for
      amendments or supplements to a Registration Statement or related prospectus
      or
      related information, and (iii) of the Company's reasonable determination that
      a
      post-effective amendment to a Registration Statement would be
      appropriate.

    

    g.           The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of a Registration Statement, or the suspension
      of the qualification of any of the Registrable Securities for sale in any
      jurisdiction and, if such an order or suspension is issued, to obtain the
      withdrawal of such order or suspension at the earliest possible moment and
      to
      notify Legal Counsel and each Investor who holds Registrable Securities being
      sold of the issuance of such order and the resolution thereof or its receipt
      of
      actual notice of the initiation or threat of any proceeding for such
      purpose.

    

    h.           If
      any Investor is required under applicable securities laws to be described in
      the
      Registration Statement as an underwriter or an Investor believes that it could
      reasonably be deemed to be an underwriter of Registrable Securities, at the
      reasonable request of such Investor, the Company shall furnish to such Investor,
      on the date of the effectiveness of the Registration Statement and thereafter
      from time to time on such dates as an Investor may reasonably request (i) 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 Investors, and (ii) an opinion, dated as of such date, of
      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 Investors.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    i.           If
      any Investor is required under applicable securities laws to be described in
      the
      Registration Statement as an underwriter or an Investor believes that it could
      reasonably be deemed to be an underwriter of Registrable Securities, the Company
      shall make available for inspection by (i) such Investor, (ii) Legal Counsel
      and
      (iii) one firm of accountants or other agents retained by the Investors
      (collectively, the "Inspectors"), all pertinent
      financial and other records, and pertinent corporate documents and properties
      of
      the Company (collectively, the "Records"), as shall be
      reasonably deemed necessary by each Inspector, and cause the Company's officers,
      directors and employees to supply all information which any Inspector may
      reasonably request; provided, however, that each Inspector shall agree to hold
      in strict confidence and shall not make any disclosure (except to an Investor)
      or use 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 or is otherwise
      required under the 1933 Act, (b) the release of such Records is ordered pursuant
      to a final, non-appealable subpoena or 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
      Agreement.  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
      Investors' ability to sell Registrable Securities in a manner which is otherwise
      consistent with applicable laws and regulations.

    

    j.           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 final,
      non-appealable 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 Agreement 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 written notice to such Investor and allow such Investor, at the
      Investor's expense, to undertake appropriate action to prevent disclosure of,
      or
      to obtain a protective order for, such information.

    

    k.           The
      Company shall use its best efforts either to (i) cause all of the Registrable
      Securities covered by a Registration Statement to be listed on each 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) secure the inclusion for
      quotation of all of the Registrable Securities on The NASDAQ Global Select
      Market or (iii) if, despite the Company's best efforts, the Company is
      unsuccessful in satisfying the preceding clauses (i) and (ii), to secure the
      inclusion for quotation on The NASDAQ Global Market, The New York Stock
      Exchange, The NASDAQ Capital Market or the American Stock Exchange for such
      Registrable Securities and, without limiting the generality of the foregoing,
      to
      use its best efforts to arrange for at least two market makers to register
      with
      the Financial Industry Regulatory Authority, Inc. ("FINRA") as such with respect
      to such Registrable Securities.  The Company shall pay all fees and
      expenses in connection with satisfying its obligation under this Section
      3(k).

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    l.           The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and, to the extent applicable, facilitate the timely preparation and
      delivery of certificates (not bearing any restrictive legend) representing
      the
      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 Investors may reasonably request and registered in such names as
      the
      Investors may request.

    

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

    

    n.           The
      Company shall use its best efforts to cause the Registrable Securities covered
      by a Registration Statement to be registered with or approved by such other
      governmental agencies or authorities as may be necessary to consummate the
      disposition of such Registrable Securities.

    

    o.           The
      Company shall make generally available to its security holders as soon as
      practical, but not later than ninety (90) days after the close of the period
      covered thereby, an earnings statement (in form complying with, and in the
      manner provided by, 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 applicable Effective Date of a Registration
      Statement.

    

    p.           The
      Company shall otherwise use its best efforts to comply with all applicable
      rules
      and regulations of the SEC in connection with any registration hereunder.

    

    q.           Within
      two (2) Business Days after a Registration Statement which covers Registrable
      Securities is ordered effective by the SEC, the Company shall deliver, and
      shall
      cause legal counsel for the Company to deliver, to the transfer agent for such
      Registrable Securities (with copies to the Investors whose Registrable
      Securities are included in such Registration Statement) confirmation that such
      Registration Statement has been declared effective by the SEC in the form
      attached hereto as Exhibit A.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    r.           Notwithstanding
      anything to the contrary herein, at any time after the Effective Date, the
      Company may delay the disclosure of material, non-public information concerning
      the Company the disclosure of which at the time is not, in the good faith
      opinion of the Board of Directors of the Company and its counsel, in the best
      interest of the Company and, in the opinion of counsel to the Company, otherwise
      required (a "Grace
      Period"); provided, that the Company shall promptly (i) notify the
      Investors in writing of the existence of material, non-public information giving
      rise to a Grace Period (provided that in each notice the Company will not
      disclose the content of such material, non-public information to the Investors)
      and the date on which the Grace Period will begin, and (ii) notify the Investors
      in writing of the date on which the Grace Period ends; and, provided further,
      that no Grace Period shall exceed five (5) consecutive days and during any
      three
      hundred sixty five (365) day period such Grace Periods shall not exceed an
      aggregate of twenty (20) days and the first day of any Grace Period must be
      at
      least five (5) Trading Days after the last day of any prior Grace Period (each,
      an "Allowable Grace
      Period").  For purposes of determining the length of a Grace
      Period above, the Grace Period shall begin on and include the date the Investors
      receive the notice referred to in clause (i) and shall end on and include the
      later of the date the Investors receive the notice referred to in clause (ii)
      and the date referred to in such notice.  The provisions of Section
      3(g) hereof shall not be applicable during the period of any Allowable Grace
      Period.  Upon expiration of the Grace Period, the Company shall again
      be bound by the first sentence of Section 3(f) with respect to the information
      giving rise thereto unless such material, non-public information is no longer
      applicable.  Notwithstanding anything to the contrary, the Company
      shall cause its transfer agent to deliver unlegended shares of Common Stock
      to a
      transferee of an Investor in accordance with the terms of the Securities
      Purchase Agreement in connection with any sale of Registrable Securities with
      respect to which an Investor has entered into a contract for sale, prior to
      the
      Investor's receipt of the notice of a Grace Period and for which the Investor
      has not yet settled.

    

    s.           Neither
      the Company nor any Subsidiary or affiliate thereof shall identify any Buyer
      as
      an underwriter in any public disclosure or filing with the SEC or any Principal
      Market (as defined in the
      Securities Purchase Agreement) or Eligible Market and any Buyer being
      deemed an underwriter by the SEC shall not relieve the Company of any
      obligations it has under this Agreement or any other Transaction Document (as defined in the Securities
      Purchase
      Agreement); provided,
however,
      that the foregoing shall not prohibit
      the Company from including the disclosure found in the "Plan of Distribution"
      section attached hereto as Exhibit
      B in the Registration
      Statement.

    

    4.           Obligations
      of the
      Investors.

    

    a.           At
      least five (5) Business Days prior to the first anticipated filing date of
      a
      Registration Statement, the Company shall notify each Investor in writing of
      the
      information the Company requires from each such Investor if such Investor elects
      to have any of such Investor's Registrable Securities included in such
      Registration Statement.  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 and maintain the effectiveness of the registration of such
      Registrable Securities and shall execute such documents in connection with
      such
      registration as the Company may reasonably request.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    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 any Registration Statement 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 such Registration
      Statement.

    

    c.           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(g) or the first
      sentence of 3(f), such Investor will immediately discontinue disposition of
      Registrable Securities pursuant to any Registration Statement(s) covering such
      Registrable Securities until such Investor's receipt of the copies of the
      supplemented or amended prospectus contemplated by Section 3(g) or the first
      sentence of 3(f) or receipt of notice that no supplement or amendment is
      required.  Notwithstanding anything to the contrary, the Company shall
      cause its transfer agent to deliver unlegended shares of Common Stock to a
      transferee of an Investor in accordance with the terms of the Securities
      Purchase Agreement in connection with any sale of Registrable Securities with
      respect to which an Investor has entered into a contract for sale prior to
      the
      Investor's receipt of a notice from the Company of the happening of any event
      of
      the kind described in Section 3(g) or the first sentence of 3(f) and for which
      the Investor has not yet settled.

    

    d.           Each
      Investor covenants and agrees that
      it will comply with the prospectus delivery requirements of the 1933 Act as
      applicable to it or an exemption therefrom in connection with sales of
Registrable Securities
      pursuant to the Registration Statement.

    

    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
      qualifications fees, printers and accounting fees, and fees and disbursements
      of
      counsel for the Company shall be paid by the Company.  The Company
      shall also reimburse the Investors for the fees and disbursements of Legal
      Counsel in connection with registration, filing or qualification pursuant to
      Sections 2 and 3 of this Agreement which amount shall be limited to $20,000
      for each such registration,
      filing
      or qualification.

    

    6.           Indemnification.

    

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

    

    a.           To
      the fullest extent permitted by law, the Company will, and hereby does,
      indemnify, hold harmless and defend each Investor, the directors, officers,
      members, partners, employees, agents, representatives of, and each Person,
      if
      any, who controls any Investor within the meaning of the 1933 Act or the 1934
      Act (each, an "Indemnified
      Person"), against any losses, claims, damages, liabilities, judgments,
      fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid
      in
      settlement or expenses, joint or several, (collectively, "Claims") incurred in
      investigating, preparing or defending any action, claim, suit, inquiry,
      proceeding, investigation or appeal taken from the foregoing by or before any
      court or governmental, administrative or other regulatory agency, body or the
      SEC, whether pending or threatened, whether or not an indemnified party is
      or
      may be a party thereto ("Indemnified Damages"), to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon:  (i) any untrue statement or alleged untrue
      statement of a material fact in a Registration Statement or any post-effective
      amendment thereto or in any filing made in connection with the qualification
      of
      the offering under the securities or other "blue sky" laws of any jurisdiction
      in which Registrable Securities are offered ("Blue Sky Filing"), or the
      omission or alleged omission to state a material fact required to be stated
      therein 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, (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 pursuant to a Registration Statement or (iv) any violation of this
      Agreement (the matters in the foregoing clauses (i) through (iv) being,
      collectively, "Violations").  Subject
      to Section 6(c), the Company shall reimburse the Indemnified Persons, promptly
      as such expenses are incurred and are due and payable, for any 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 by an Indemnified Person 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 such Indemnified Person
      for such Indemnified Person expressly for use in connection with the preparation
      of the Registration Statement or any such amendment thereof or supplement
      thereto, if such prospectus was timely made available by the Company pursuant
      to
      Section 3(d); and (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 or
      delayed.  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.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    b.           In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees to severally and not jointly indemnify,
      hold harmless and defend, to the same extent and in the same manner as is set
      forth in Section 6(a), the Company, each of its directors, each of its officers
      who signs the Registration Statement and each Person, if any, who controls
      the
      Company within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Party"), against
      any Claim or Indemnified Damages to which any of them may become subject, under
      the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
      Damages arise out of or are based upon any Violation, in each case to the
      extent, and only to the 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 shall reimburse the Indemnified Party, promptly
      as such expenses are incurred and are due and payable, for any legal or other
      expenses reasonably incurred by an Indemnified Party in connection with
      investigating or defending any such Claim; provided, however, that the indemnity
      agreement contained in this Section 6(b) and the agreement with respect to
      contribution contained in Section 7 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
      or
      delayed; provided, further, however, that the Investor shall be liable under
      this Section 6(b) for only that amount of a Claim or Indemnified Damages 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.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    c.           Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, 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 of
      not
      more than one counsel for all such Indemnified Person or Indemnified Party
      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.  In the case of an Indemnified Person,
      legal counsel referred to in the immediately preceding sentence shall be
      selected by the Investors holding at least a majority in interest of the
      Registrable Securities included in the Registration Statement to which the
      Claim
      relates.  The Indemnified Party or Indemnified Person shall cooperate
      reasonably with the indemnifying party in connection with any negotiation or
      defense of any such action or Claim by the indemnifying party and shall furnish
      to the indemnifying party all information reasonably available to the
      Indemnified Party or Indemnified Person which relates to such action or
      Claim.  The indemnifying party shall keep the Indemnified Party or
      Indemnified Person fully apprised at all times as to the status of the defense
      or any settlement negotiations with respect thereto.  No indemnifying
      party shall be liable for any settlement of any action, claim or proceeding
      effected without its prior written consent, provided, however, that the
      indemnifying party shall not unreasonably withhold, delay or condition its
      consent.  No indemnifying party shall, without the prior written
      consent of the Indemnified Party or Indemnified Person, consent to entry of
      any
      judgment or enter into any settlement or other compromise which does not include
      as an unconditional term thereof the giving by the claimant or plaintiff to
      such
      Indemnified Party or Indemnified Person of a release from all liability in
      respect to such Claim or litigation, and such settlement shall not include
      any
      admission as to fault on the part of the Indemnified Party.  Following
      indemnification as provided for hereunder, the indemnifying party shall be
      subrogated to all rights of the Indemnified Party or Indemnified Person with
      respect to all third parties, firms or corporations relating to the matter
      for
      which indemnification has been made.  The failure to deliver written
      notice to the indemnifying party within a reasonable time of the commencement
      of
      any such action shall not relieve such indemnifying party of any liability
      to
      the Indemnified Person or Indemnified Party under this Section 6, except to
      the
      extent that the indemnifying party is prejudiced in its ability to defend such
      action.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    d.           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 and
      when bills are received or Indemnified Damages are incurred.

    

    e.           The
      indemnity agreements contained herein shall be in addition to  (i) any
      cause of action or similar right of the Indemnified Party or Indemnified Person
      against the indemnifying party or others, and (ii) any liabilities the
      indemnifying party may be subject to pursuant to the law.

    

    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
      Person involved in the sale of Registrable Securities which Person is guilty
      of
      fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933
      Act) in connection with such sale shall be entitled to contribution from any
      Person involved in such sale of Registrable Securities who was not guilty of
      fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
      Securities shall be limited in amount to the amount of net proceeds received
      by
      such seller from the sale of such Registrable Securities pursuant to such
      Registration Statement.

    

    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 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, if true, 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.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    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 such Investor's 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) immediately following such transfer or assignment
      the further disposition of such securities by the transferee or assignee is
      restricted under the 1933 Act or applicable state securities laws; (iv) at
      or
      before the time the Company receives the written notice contemplated by clause
      (ii) of this sentence the transferee or assignee agrees in writing with the
      Company to be bound by all of the provisions contained herein; and (v) such
      transfer shall have been made in accordance with the applicable requirements
      of
      the Securities Purchase Agreement.

    

    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 the written consent of the Company and the Required
      Holders.  Any amendment or waiver effected in accordance with this
      Section 10 shall be binding upon each Investor and the Company.  No
      such amendment shall be effective to the extent that it applies to less than
      all
      of the holders of the Registrable Securities.  No consideration shall
      be offered or paid to any Person to amend or consent to a waiver or modification
      of any provision of this Agreement unless the same consideration also is offered
      to all of the parties to this Agreement.

    

    11.           Miscellaneous.

    

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

    

    b.           Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered:  (i) upon receipt, when delivered personally;
      (ii) upon receipt, when sent by facsimile (provided confirmation of transmission
      is mechanically or electronically generated and kept on file by the sending
      party); or (iii) one Business Day after deposit with a nationally recognized
      overnight delivery service, in each case properly addressed to the party to
      receive the same.  The addresses and facsimile numbers for such
      communications shall be:

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    If
      to the
      Company:

    

    EnterConnect
      Inc.

    100
      Century Center Court

    Suite
      650

    San
      Jose,
      California 95112-4537

    Telephone:    
      (408) 441-9500

    Facsimile:       (408)
      452-9040

    Attention:     
      Sam Jankovich

    

    With
      a
      copy (for informational purposes only) to:

    

    Andrew
      N.
      Bernstein, P.C.

    5445
      DTC
      Parkway, Suite 520

    Greenwood
      Village, Colorado 80111

    Facsimile
      No.:    (303) 770-7332

    Telephone
      No.:  (303) 770-7131

    Attn.:
      Andrew N. Bernstein, Esq.

    

    

    If
      to the
      Transfer Agent:

    

    Interwest
      Transfer Co., Inc.

    1981
      East
      4800 South, Suite 100

    PO
      Box
      17136

    Salt
      Lake
      City, UT 84117

    Telephone:    
      801-272-9294

    Facsimile:      
      801-277-3147

    Attention:    
       Kurt Hughes

    

    If
      to
      Legal Counsel:

    

    Schulte
      Roth & Zabel LLP

    919
      Third
      Avenue

    New
      York,
      New York  10022

    Telephone:    
      (212) 756-2000

    Facsimile:       
      (212) 593-5955

    Attention:     
      Eleazer N. Klein, Esq.

    

    If
      to a
      Buyer, to its address and facsimile number set forth on the Schedule of Buyers
      attached hereto, with copies to such Buyer's representatives as set forth on
      the
      Schedule of Buyers, or to such other address and/or facsimile number and/or
      to
      the attention of such other Person as the recipient party has specified by
      written notice given to each other party five (5) days prior to the
      effectiveness of such change.  Written confirmation of receipt (A)
      given by the recipient of such notice, consent, waiver or other communication,
      (B) mechanically or electronically generated by the sender's facsimile machine
      containing the time, date, recipient facsimile number and an image of the first
      page of such transmission or (C) provided by a courier or overnight courier
      service shall be rebuttable evidence of personal service, receipt by facsimile
      or receipt from a nationally recognized overnight delivery service in accordance
      with clause (i), (ii) or (iii) above, respectively.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    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.           All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New York.  Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in The City of New York,
      Borough of Manhattan, for the adjudication of any dispute hereunder or in
      connection herewith or with any transaction contemplated hereby or discussed
      herein, and hereby irrevocably waives, and agrees not to assert in any suit,
      action or proceeding, any claim that it is not personally subject to the
      jurisdiction of any such court, that such suit, action or proceeding is brought
      in an inconvenient forum or that the venue of such suit, action or proceeding
      is
      improper.  Each party hereby irrevocably waives personal service of
      process and consents to process being served in any such suit, action or
      proceeding by mailing a copy thereof to such party at the address for such
      notices to it under this Agreement and agrees that such service shall constitute
      good and sufficient service of process and notice thereof.  Nothing
      contained herein shall be deemed to limit in any way any right to serve process
      in any manner permitted by law.  If any provision of this Agreement
      shall be invalid or unenforceable in any jurisdiction, such invalidity or
      unenforceability shall not affect the validity or enforceability of the
      remainder of this Agreement in that jurisdiction or the validity or
      enforceability of any provision of this Agreement in any other
      jurisdiction.  EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

    

    e.           This
      Agreement, the other Transaction Documents (as defined in the Securities
      Purchase Agreement) and the instruments referenced herein and therein 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, the other Transaction Documents and the
      instruments referenced herein and therein supersede all prior agreements and
      understandings among the parties hereto with respect to the subject matter
      hereof and thereof.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    f.           Subject
      to the requirements of Section 9, this Agreement shall inure to the benefit
      of
      and be binding upon the permitted successors and assigns of each of the parties
      hereto.

    

    g.           The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    h.           This
      Agreement may be executed in identical counterparts, each of which shall be
      deemed an original but all of which shall constitute one and the same
      agreement.  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.

    

    i.           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 any 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.

    

    j.           All
      consents and other determinations required to be made by the Investors pursuant
      to this Agreement shall be made, unless otherwise specified in this Agreement,
      by the Required Holders.

    

    k.           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.

    

    l.           This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

    

    m.           The
      obligations of each Investor hereunder are several and not joint with the
      obligations of any other Investor, and no provision of this Agreement is
      intended to confer any obligations on any Investor vis-à-vis any other
      Investor.  Nothing contained herein, and no action taken by any
      Investor pursuant hereto, shall be deemed to constitute the Investors as a
      partnership, an association, a joint venture or any other kind of entity, or
      create a presumption that the Investors are in any way acting in concert or
      as a
      group with respect to such obligations or the transactions contemplated
      herein.

    

    *
      * * * *
      *

    

    [Signature
      Page Follows]

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              COMPANY:

            	 
	 	 	 	 
	 	
              ENTERCONNECT,
                INC.

            	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:
                Sam Jankovich

            	 
	 	 	
              Title:
                Chairman & Chief
                Executive

            	 
	 	 	
              Officer

            	 

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    

    
      	 	
              BUYERS:

            	 
	 	 	 	 
	 	
              HIGHBRIDGE
                INTERNATIONAL LLC

            	 
	 	
              By:
                Highbridge Capital Management LLC

            	 
	 	
              Its
                Trading Manager

            	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              ALAN
                JOHN MURRAY

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              ALAN
                YOSHIHARA SERIKAWA

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              BRIAN
                L, GROETSCH, SR.

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              VALERIE
                CHEESEMAN

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              CHRISTOPHER
                J. EIGEL

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              DAVID
                R. SPENCER

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              MADELINE
                GAYLE ADAMS

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              GRANT
                LAU

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              JIM
                RITSCH

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              LAWRENCE
                STONE MCGEE III, MD

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              MARC
                S. CAHN

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              MARIO
                CERNEKA

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              MACCOLLUM
                FAMILY TRUST

            	 
	 	
              By:
                Maxwell S. MacCollum, as Trustee

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              NORMAN
                A. DUDZIAK

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              RALPH
                V. KAPLAN, MD

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              VERONNE
                J. CRAWFORD TRUST

            	 
	 	
              By:
                Veronne J. Crawford, as Trustee

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              ALAN
                WALTER STIEHL

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              ALAN
                P. POWER

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              PROFESSIONAL
                OFFSHORE OPPORTUNITY FUND, LTD.

            	 
	 	
              By:
                Marc K. Swickle, as Manager

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              IROQUOIS
                MASTER FUND LTD.

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement  to be duly executed as of the date first written
      above.

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              CRANSHIRE
                CAPITAL, LP

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each Buyer
      and the Company have caused their respective signature page to this Registration
      Rights Agreement to be duly executed as of the date first written above.

    

    

    
      	 	
              OTHER
                BUYERS:

            	 
	 	 	 	 
	 	
              GEORGE
                KRAUSS

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    SCHEDULE
      OF BUYERS

    

    
      	
              (1)

            	 	
              (2)

            	 	
              (3)

            	 	
              (4)

            	 	
              (5)

            	 	
              (6)

            
	 	 	 	 	 	 	 	 	 	 	 
	
              
                Buyer

              

            	 	
              
                Address
                  and Facsimile Number

              

            	 	
              
                Aggregate
                  Principal Amount of Notes

              

            	 	
              
                Number
                  of Warrant Shares

              

            	 	
              
                Purchase
                  Price

              

            	 	
              
                Legal
                  Representative's Address and Facsimile
                  Number

              

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Highbridge
                International 

            	 	
              c/o
                Highbridge Capital

            	 	
              $2,500,000

            	 	
              4,166,667

            	 	
              2,500,000

            	 	
              Schulte
                Roth & Zabel LLP

            
	LLC	 	
              Management,
                LLC

            	 	 	 	 	 	 	 	
              919
                Third Avenue

            
	 	 	
              9
                West 57th St, 27th Floor

            	 	 	 	 	 	 	 	
              New
                York, New York  10022

            
	 	 	
              New
                York, NY 10019

            	 	 	 	 	 	 	 	
              Attention:  Eleazer
                Klein, Esq.

            
	 	 	
              Attn:
                Ari J. Storch / Adam J. Chill

            	 	 	 	 	 	 	 	
              Facsimile:
                (212) 593-5955

            
	 	 	
              Tel:
                212-287-4720

            	 	 	 	 	 	 	 	
              Telephone:  (212)
                756-2376

            
	 	 	
              Fax:
                212-751-0755

            	 	 	 	 	 	 	 	 
	 	 	
              Residence:
                Cayman Islands

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Professional
                Offshore

            	 	
              1400
                Old Country Road, Suite 206

            	 	
              $1,000,000

            	 	
              1,666,667

            	 	
              $1,000,000

            	 	
              N/A

            
	
              Opportunity
                Fund, Ltd.

            	 	
              Westbury,
                New York 11590

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Cranshire
                Capital, LP

            	 	
              3100
                Dundee Rd., Suite 703

            	 	
              $250,000

            	 	
              416,667

            	 	
              $250,000

            	 	
              N/A

            
	 	 	
              Northbrook,
                IL 60062

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Iroquois
                Master Fund Ltd.

            	 	
              641
                Lexington Ave.

            	 	
              $250,000

            	 	
              416,667

            	 	
              $250,000

            	 	
              N/A

            
	 	 	
              26th
                Floor

            	 	 	 	 	 	 	 	 
	 	 	
              New
                York, New York 10022

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Adams,
Madeline Gayle

            	 	
              134
                Canteen

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Canyon
                Lake, TX 78133

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Cahn,
Marc S.

            	 	
              1496
                Tamarack Avenue

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Boulder,
                CO 80304

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Cerneka,
Mario

            	 	
              14432
                Adelta Drive

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Lamirada,
                CA 90638

            	 	 	 	 	 	 	 	 

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    
      	
              Cheeseman,
Valerie

            	 	
              330
                North 900 West #H

            	 	
              $23,000

            	 	
              38,333

            	 	
              $23,000

            	 	
              N/A

            
	 	 	
              Cedar
                City, UT 84720

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Crawford,
Veronne J.,

            	 	
              4800
                Wildcat Run

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	
              Trustee

            	 	
              Springfield,
                IL 62711

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Dudziak,
Norman A.,
Jr.

            	 	
              32
                Washington Road

            	 	
              $50,000

            	 	
              83,333

            	 	
              $50,000

            	 	
              N/A

            
	 	 	
              Berington,
                RI 02806

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Eigel,
Christopher J.

            	 	
              595
                Glendale Drive

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Glenview,
                IL 60025

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Groetsch,
Brian L.,
Sr.

            	 	
              Winter:
                980 Greenwood Court

            	 	
              $50,000

            	 	
              83,333

            	 	
              $50,000

            	 	
              N/A

            
	 	 	
              Sanibel,
                FL 33557

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Kaplan,
Ralph V.,
M.D.

            	 	
              139
                East Broadway

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              New
                York, NY 10002

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Krauss,
George

            	 	
              1214
                Howard #202

            	 	
              $250,000

            	 	
              416,667

            	 	
              $250,000

            	 	
              N/A

            
	 	 	
              Omaha,
                NE 68102

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Lau,
Grant

            	 	
              241
                East Hooper Avenue

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Soda
                Springs, ID 83276

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              MacCollum,
Maxwell S.

            	 	
              126
                East Desert Park Lane

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Phoenix,
                AZ 85020

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              McGee,
LawrenceStone
III,
MD

            	 	
              108
                Pine Acres Drive

            	 	
              $62,500

            	 	
              104,167

            	 	
              $62,500

            	 	
              N/A

            
	 	 	
              Spartanburg,
                SC 29307

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Murray,
Alan John

            	 	
              3540
                Riverbend Road

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Birmingham,
                AL 35243

            	 	 	 	 	 	 	 	 

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    
      	
              Power,
Alan

            	 	
              1314
                Cabrillo Avenue

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Venice,
                CA 90291

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Ritsch,
James J.

            	 	
              2128
                High Point Drive

            	 	
              $50,000

            	 	
              83,333

            	 	
              $50,000

            	 	
              N/A

            
	 	 	
              Altoona,
                WI 54720

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Serikawa,
                Yoshihara

            	 	
              1470
                Ala Napunani Street

            	 	
              $50,000

            	 	
              83,333

            	 	
              $50,000

            	 	
              N/A

            
	 	 	
              Honolulu,
                HI 96818

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Spencer,
David R.

            	 	
              3810
                Grand Plantation Lane

            	 	
              $25,000

            	 	
              41,667

            	 	
              $25,000

            	 	
              N/A

            
	 	 	
              Missouri
                City, TX 77459

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Stiehl,
Walter A.

            	 	
              48
                Puritan Road

            	 	
              $12,500

            	 	
              20,833

            	 	
              $12,500

            	 	
              N/A

            
	 	 	
              Somerville,
                MA 02145

            	 	 	 	 	 	 	 	 

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    FORM
      OF NOTICE OF
      EFFECTIVENESS

    OF
      REGISTRATION
      STATEMENT

    

    Interwest
      Transfer Co., Inc.

    1981
      East
      4800 South, Suite 100

    PO
      Box
      17136

    Salt
      Lake
      City, UT 84117

    Attention:     Kurt
      Hughes

    

    Re:           EnterConnect,
      Inc.

    

    Ladies
      and Gentlemen:

    

    [We
      are][I am] counsel to EnterConnect, Inc., a Nevada corporation (the "Company"), and have
      represented the Company in connection with that certain Securities Purchase
      Agreement (the "Securities
      Purchase Agreement") entered into by and among the Company and the buyers
      named therein (collectively, the "Holders") pursuant to which
      the Company issued to the Holders senior secured convertible notes (the "Notes") which shall be
      convertible into the Company's common stock, par value $0.001 per share (the
      "Common Stock") and
      warrants exercisable for shares of Common Stock (the "Warrants").  Pursuant
      to the Securities Purchase Agreement, the Company also has entered into a
      Registration Rights Agreement with the Holders (the "Registration Rights
      Agreement") pursuant to which the Company agreed, among other things, to
      register the Registrable Securities (as defined in the Registration Rights
      Agreement), including the shares of Common Stock issuable upon conversion of
      the
      Notes and the shares of Common Stock issuable upon exercise of the Warrants,
      under the Securities Act of 1933, as amended (the "1933 Act").  In
      connection with the Company's obligations under the Registration Rights
      Agreement, on ____________ ___, 200_, the Company filed a Registration Statement
      on Form SB-2 (File No. 333-_____________) (the "Registration Statement") with
      the Securities and Exchange Commission (the "SEC") relating to the
      Registrable Securities which names each of the Holders as a selling stockholder
      thereunder.

    

    In
      connection with the foregoing, [we][I] advise you that a member of the SEC's
      staff has advised [us][me] by telephone that the SEC has entered an order
      declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF
      EFFECTIVENESS] on [ENTER
      DATE OF
      EFFECTIVENESS] and
      [we][I] have no knowledge, after telephonic inquiry of a member of the SEC's
      staff, that any stop order suspending its effectiveness has been issued or
      that
      any proceedings for that purpose are pending before, or threatened by, the
      SEC
      and the Registrable Securities are available for resale under the 1933 Act
      pursuant to the Registration Statement.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    This
      letter shall serve as our standing
      instruction to you that the shares of Common Stock are freely transferable
      by
      the Holders pursuant to the Registration Statement.  You need not
      require further letters from us to effect any future legend-free issuance or
      reissuance of shares of Common Stock to the Holders as contemplated by the
      Company's Irrevocable Transfer Agent Instructions dated December __,
      2007.

    

    Very
      truly yours,

    

    [ISSUER'S
      COUNSEL]

    

    By:_____________________

    

    CC:           [LIST
      NAMES OF HOLDERS]

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    SELLING
      STOCKHOLDERS

    

    The
      shares of common stock being offered by the selling stockholders are issuable
      upon conversion of the convertible notes, and upon exercise of the
      warrants.  For additional information regarding the issuance of those
      convertible notes and warrants, see "Private Placement of Convertible Notes
      and
      Warrants" above.  We are registering the shares of common stock in
      order to permit the selling stockholders to offer the shares for resale from
      time to time.  Except for the ownership of the convertible notes and
      the warrants issued pursuant to the Securities Purchase Agreement, the selling
      stockholders have not had any material relationship with us within the past
      three years.

    

    The
      table
      below lists the selling stockholders and other information regarding the
      beneficial ownership of the shares of common stock by each of the selling
      stockholders.  The second column lists the number of shares of common
      stock beneficially owned by each selling stockholder, based on its ownership
      of
      the convertible notes and warrants, as of ________, 2007, assuming conversion
      of
      all convertible notes and exercise of the warrants held by the selling
      stockholders on that date, without regard to any limitations on conversions
      or
      exercise.

    

    The
      third
      column lists the shares of common stock being offered by this prospectus by
      the
      selling stockholders.

    

    In
      accordance with the terms of a registration rights agreement with the selling
      stockholders, this prospectus generally covers the resale of at least 130%
      of
      the sum of (i) the number of shares of common stock issuable upon conversion
      of
      the convertible notes as of the Trading Day immediately preceding the date
      the
      registration statement is initially filed with the SEC, and (ii) the number
      of
      shares of common stock issuable upon exercise of the related warrants as of
      the
      Trading Day immediately preceding the date the registration statement is
      initially filed with the SEC.  Because the
      conversion price of the convertible notes and the exercise price of the warrants
      may be adjusted, the number of shares that will actually be issued may be more
      or less than the number of shares being offered by this
      prospectus.  The fourth column assumes the sale of all of the shares
      offered by the selling stockholders pursuant to this prospectus.

    

    Under
      the
      terms of the convertible notes and the warrants, a selling stockholder may
      not
      convert the convertible notes or exercise the warrants to the extent such
      conversion or exercise would cause such selling stockholder, together with
      its
      affiliates, to beneficially own a number of shares of common stock which would
      exceed [4.99]% of our then outstanding shares of common stock following such
      conversion or exercise, excluding for purposes of such determination shares
      of
      common stock issuable upon conversion of the convertible notes which have not
      been converted and upon exercise of the warrants which have not been
      exercised.  The number of shares in the second column does not reflect
      this limitation.  The selling stockholders may sell all, some or none
      of their shares in this offering.  See "Plan of Distribution."

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              Name
                of Selling Stockholder

            	
              Number
                of Shares of Common Stock Owned Prior to
                Offering

            	
              Maximum
                Number of Shares of Common Stock to be
                Sold Pursuant to this Prospectus

            	
              Number
                of Shares of Common Stock Owned After
                Offering

            
	 	 	 	 
	
              Highbridge
International
                LLC (1)

            	 	 	
              0

            
	 	 	 	 
	
              (Other
                Buyers)

            	 	 	 

    

    

    

    (1)           
Highbridge
      Capital Management, LLC is the trading manager of Highbridge International
      LLC
      and has voting control and investment discretion over securities held by
      Highbridge International LLC. Glenn Dubin and Henry Swieca control Highbridge
      Capital Management, LLC. Each of Highbridge Capital Management, LLC, Glenn
      Dubin
      and Henry Swieca disclaim beneficial ownership of the securities held by
      Highbridge International LLC.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    PLAN
      OF DISTRIBUTION

    

    We
      are
      registering the shares of common stock issuable upon conversion of the
      convertible notes and upon exercise of the warrants to permit the resale of
      these shares of common stock by the holders of the convertible notes and
      warrants from time to time after the date of this prospectus.  We will
      not receive any of the proceeds from the sale by the selling stockholders of
      the
      shares of common stock.  We will bear all fees and expenses incident
      to our obligation to register the shares of common stock.

    

    The
      selling stockholders may sell all or a portion of the shares of common stock
      beneficially owned by them and offered hereby from time to time directly or
      through one or more underwriters, broker-dealers or agents.  If the
      shares of common stock are sold through underwriters or broker-dealers, the
      selling stockholders will be responsible for underwriting discounts or
      commissions or agent's commissions.  The shares of common stock may be
      sold in one or more transactions at fixed prices, at prevailing market prices
      at
      the time of the sale, at varying prices determined at the time of sale, or
      at
      negotiated prices.  These sales may be effected in transactions, which
      may involve crosses or block transactions,

    

    
      	
               

            	
              ·

            	
              on
                any national securities exchange or quotation service on which the
                securities may be listed or quoted at the time of sale;
                

            

    

    

    
      	
               

            	
              ·

            	
              in
                the over-the-counter market; 

            

    

    

    
      	
               

            	
              ·

            	
              in
                transactions otherwise than on these exchanges or systems or in the
                over-the-counter market; 

            

    

    

    
      	
               

            	
              ·

            	
              through
                the writing of options, whether such options are listed on an options
                exchange or otherwise; 

            

    

    

    
      	
               

            	
              ·

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

            

    

    

    
      	
               

            	
              ·

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

            

    

    

    
      	
               

            	
              ·

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

            

    

    

    
      	
               

            	
              ·

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

            

    

    

    
      	
               

            	
              ·

            	
              privately
                negotiated
                transactions;

            

    

    

    
      	
               

            	
              ·

            	
              short
                sales;

            

    

    

    
      	
               

            	
              ·

            	
              sales
                pursuant to Rule 144;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               

            	
              ·

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

            

    

    

    
      	
               

            	
              ·

            	
              a
                combination of any such methods
                of sale; and

            

    

    

    
      	
               

            	
              ·

            	
              any
                other method permitted
                pursuant to applicable law.

            

    

    

    If
      the
      selling stockholders effect such transactions by selling shares of common stock
      to or through underwriters, broker-dealers or agents, such underwriters,
      broker-dealers or agents may receive commissions in the form of discounts,
      concessions or commissions from the selling stockholders or commissions from
      purchasers of the shares of common stock for whom they may act as agent or
      to
      whom they may sell as principal (which discounts, concessions or commissions
      as
      to particular underwriters, broker-dealers or agents may be in excess of those
      customary in the types of transactions involved).  In connection with
      sales of the shares of common stock or otherwise, the selling stockholders
      may
      enter into hedging transactions with broker-dealers, which may in turn engage
      in
      short sales of the shares of common stock in the course of hedging in positions
      they assume.  The selling stockholders may also sell shares of common
      stock short and deliver shares of common stock covered by this prospectus to
      close out short positions and to return borrowed shares in connection with
      such
      short sales.  The selling stockholders may also loan or pledge shares
      of common stock to broker-dealers that in turn may sell such shares.

    

    The
      selling stockholders may pledge or grant a security interest in some or all
      of
      the convertible notes, warrants or shares of common stock owned by them and,
      if
      they default in the performance of their secured obligations, the pledgees
      or
      secured parties may offer and sell the shares of common stock from time to
      time
      pursuant to this prospectus or any amendment to this prospectus under Rule
      424(b)(3) or other applicable provision of the Securities Act of 1933, as
      amended, amending, if necessary, the list of selling stockholders to include
      the
      pledgee, transferee or other successors in interest as selling stockholders
      under this prospectus.  The selling stockholders also may transfer and
      donate the shares of common stock in other circumstances in which case the
      transferees, donees, pledgees or other successors in interest will be the
      selling beneficial owners for purposes of this prospectus.

    

    The
      selling stockholders and any broker-dealer participating in the distribution
      of
      the shares of common stock may be deemed to be "underwriters" within the meaning
      of the Securities Act, and any commission paid, or any discounts or concessions
      allowed to, any such broker-dealer may be deemed to be underwriting commissions
      or discounts under the Securities Act.  At the time a particular
      offering of the shares of common stock is made, a prospectus supplement, if
      required, will be distributed which will set forth the aggregate amount of
      shares of common stock being offered and the terms of the offering, including
      the name or names of any broker-dealers or agents, any discounts, commissions
      and other terms constituting compensation from the selling stockholders and
      any
      discounts, commissions or concessions allowed or reallowed or paid to
      broker-dealers.

    

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

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

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

    

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

    

    We
      will
      pay all expenses of the registration of the shares of common stock pursuant
      to
      the registration rights agreement, estimated to be
      $[     ] in total, including, without limitation,
      Securities and Exchange Commission filing fees and expenses of compliance with
      state securities or "blue sky" laws; provided, however, that a selling
      stockholder will pay all underwriting discounts and selling commissions, if
      any.  We will indemnify the selling stockholders against liabilities,
      including some liabilities under the Securities Act, in accordance with the
      registration rights agreements, or the selling stockholders will be entitled
      to
      contribution.  We may be indemnified by the selling stockholders
      against civil liabilities, including liabilities under the Securities Act,
      that
      may arise from any written information furnished to us by the selling
      stockholder specifically for use in this prospectus, in accordance with the
      related registration rights agreement, or we may be entitled to
      contribution.

    

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

     

     

    3ex10_3.htm

    
      

    

    Exhibit
      10.3

    

    [FORM
      OF WARRANT]

    

    NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
      OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
      THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
      OF COUNSEL SELECTED BY THE HOLDER AND REASONABLY ACCEPTABLE TO THE ISSUER,
      IN A
      GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
      ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
      ARRANGEMENT SECURED BY THE SECURITIES.

    

    EnterConnect
      Inc.

    

    Warrant
      To Purchase Common Stock

    

    Warrant
      No.: ________ 

    Number
      of
      Shares of Common Stock:_____________ 

    Date
      of
      Issuance: December 20, 2007 ("Issuance Date")

    

    EnterConnect
      Inc., a Nevada corporation (the "Company"), hereby certifies
      that, for good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, [HIGHBRIDGE INTERNATIONAL LLC] [OTHER BUYERS], the
      registered holder hereof or its permitted assigns (the "Holder"), is entitled, subject
      to the terms set forth below, to purchase from the Company, at the Exercise
      Price (as defined below) then in effect, upon surrender of this Warrant to
      Purchase Common Stock (including any Warrants to Purchase Common Stock issued
      in
      exchange, transfer or replacement hereof, the "Warrant"), at any time or
      times on or after the date hereof, but not after 11:59 p.m., New York time,
      on
      the Expiration Date (as defined below), ______________ (_____________)1
      fully paid nonassessable shares of Common
      Stock (as defined below) (the "Warrant
      Shares").  Except as otherwise defined herein, capitalized
      terms in this Warrant shall have the meanings set forth in Section
      16.  This Warrant is one of the Warrants to purchase Common Stock (the
      "SPA Warrants") issued
      pursuant to Section 1 of that certain Securities Purchase Agreement, dated
      as of
      December 20, 2007 (the "Subscription Date"), by and
      among the Company and the investors (the "Buyers") referred to therein
      (the "Securities Purchase
      Agreement").

    

    _________________________

    1           Insert
      a number of shares equal to 100%
      of the number of Conversion Shares (as defined in SPA)
      issuable as of the Closing Date upon
      conversion of the Notes issued to the Holder pursuant to the Securities Purchase
      Agreement.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    1. 
      EXERCISE OF WARRANT.

    

    (a)
Mechanics
      of
      Exercise.  Subject to the terms and conditions hereof
      (including, without limitation, the limitations set forth in Section 1(f)),
      this
      Warrant may be exercised by the Holder on any day on or after the date hereof,
      in whole or in part, by (i) delivery of a written notice, in the form attached
      hereto as Exhibit
      A (the "Exercise
      Notice"), of the Holder's election to exercise this Warrant and (ii) (A)
      payment to the Company of an amount equal to the applicable Exercise Price
      multiplied by the number of Warrant Shares as to which this Warrant is being
      exercised (the "Aggregate
      Exercise Price") in cash or by wire transfer of immediately available
      funds or (B) by notifying the Company that this Warrant is being exercised
      pursuant to a Cashless Exercise (as defined in Section 1(d)).  The
      Holder shall not be required to deliver the original Warrant in order to effect
      an exercise hereunder.  Execution and delivery of the Exercise Notice
      with respect to less than all of the Warrant Shares shall have the same effect
      as cancellation of the original Warrant and issuance of a new Warrant evidencing
      the right to purchase the remaining number of Warrant Shares.  On or
      before the first (1st)
      Business Day following the date on which the Company has received each of the
      Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless
      Exercise) (the "Exercise
      Delivery Documents"), the Company shall transmit by facsimile an
      acknowledgment of confirmation of receipt of the Exercise Delivery Documents
      to
      the Holder and the Company's transfer agent (the "Transfer
      Agent").  On or before the third (3rd)
      Business Day following the date on which the Company has received all of the
      Exercise Delivery Documents (the "Share Delivery Date"), the
      Company shall (X) provided that the Transfer Agent is participating in The
      Depository Trust Company ("DTC") Fast Automated
      Securities Transfer Program, upon the request of the Holder, credit such
      aggregate number of Warrant Shares to which the Holder is entitled pursuant
      to
      such exercise to the Holder's or its designee's balance account with DTC through
      its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent
      is
      not participating in the DTC Fast Automated Securities Transfer Program, issue
      and dispatch by overnight courier to the address as specified in the Exercise
      Notice, a certificate, registered in the Company's share register in the name
      of
      the Holder or its designee, for the number of shares of Common Stock to which
      the Holder is entitled pursuant to such exercise.  Upon delivery of
      the Exercise Delivery Documents, the Holder shall be deemed for all corporate
      purposes to have become the holder of record of the Warrant Shares with respect
      to which this Warrant has been exercised, irrespective of the date such Warrant
      Shares are credited to the Holder's DTC account or the date of delivery of
      the
      certificates evidencing such Warrant Shares, as the case may be.  If
      this Warrant is submitted in connection with any exercise pursuant to this
      Section 1(a) and the number of Warrant Shares represented by this Warrant
      submitted for exercise is greater than the number of Warrant Shares being
      acquired upon an exercise, then the Company shall as soon as practicable and
      in
      no event later than three (3) Business Days after any exercise and at its own
      expense, issue a new Warrant (in accordance with Section 7(d)) representing
      the
      right to purchase the number of Warrant Shares purchasable immediately prior
      to
      such exercise under this Warrant, less the number of Warrant Shares with respect
      to which this Warrant is exercised.  No fractional shares of Common
      Stock are to be issued upon the exercise of this Warrant, but rather the number
      of shares of Common Stock to be issued shall be rounded up to the nearest whole
      number.  The Company shall pay any and all taxes which may be payable
      with respect to the issuance and delivery of Warrant Shares upon exercise of
      this Warrant.

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    (b)
Exercise
      Price.  For purposes of this Warrant, "Exercise Price" means $0.80,
      subject to adjustment as provided herein.

    

    (c)
Company's
      Failure to Timely
      Deliver Securities.  If the Company shall fail for any reason
      or for no reason to issue to the Holder within three (3) Business Days of
      receipt of the Exercise Delivery Documents, a certificate for the number of
      shares of Common Stock to which the Holder is entitled and register such shares
      of Common Stock on the Company's share register or to credit the Holder's
      balance account with DTC for such number of shares of Common Stock to which
      the
      Holder is entitled upon the Holder's exercise of this Warrant, then, in addition
      to all other remedies available to the Holder, the Company shall pay in cash
      to
      the Holder on each day after such third (3rd)
      Business Day that the issuance of such shares of Common Stock is not timely
      effected an amount equal to one and one-half percent (1.5%) of the product
      of
      (A) the sum of the number of shares of Common Stock not issued to the Holder
      on
      a timely basis and to which the Holder is entitled and (B) the Closing Sale
      Price of the shares of Common Stock on the Trading Day immediately preceding
      the
      last possible date which the Company could have issued such shares of Common
      Stock to the Holder without violating Section 1(a).  In addition to
      the foregoing, if within three (3) Trading Days after the Company's receipt
      of
      the facsimile copy of a Exercise Notice the Company shall fail to issue and
      deliver a certificate to the Holder and register such shares of Common Stock
      on
      the Company's share register or credit the Holder's balance account with DTC
      for
      the number of shares of Common Stock to which the Holder is entitled upon the
      Holder's exercise hereunder, and if on or after such Trading Day the Holder
      purchases (in an open market transaction or otherwise) shares of Common Stock
      to
      deliver in satisfaction of a sale by the Holder of shares of Common Stock
      issuable upon such exercise that the Holder anticipated receiving from the
      Company (a "Buy-In"),
      then the Company shall, within three (3) Business Days after the Holder's
      request and in the Holder's discretion, either (i) pay cash to the Holder in
      an
      amount equal to the Holder's total purchase price (including brokerage
      commissions, if any) for the shares of Common Stock so purchased (the "Buy-In Price"), at which point
      the Company's obligation to deliver such certificate (and to issue such shares
      of Common Stock) or credit such Holder's balance account with DTC shall
      terminate, or (ii) promptly honor its obligation to deliver to the Holder a
      certificate or certificates representing such shares of Common Stock or credit
      such Holder's balance account with DTC and pay cash to the Holder in an amount
      equal to the excess (if any) of the Buy-In Price over the product of (A) such
      number of shares of Common Stock, times (B) the Closing Bid Price on the date
      of
      exercise.

    

    (d)
Cashless
      Exercise.
 Notwithstanding
      anything contained herein to the contrary, if a Registration Statement (as
      defined in the Registration Rights Agreement) covering the resale of the Warrant
      Shares that are the subject of the Exercise Notice pursuant to the 1933 Act
      (the
      "Unavailable Warrant
      Shares") is not available for the resale of such Unavailable Warrant
      Shares, the Holder may, in its sole discretion, exercise this Warrant in whole
      or in part and, in lieu of making the cash payment otherwise contemplated to
      be
      made to the Company upon such exercise in payment of the Aggregate Exercise
      Price, elect instead to receive upon such exercise the "Net Number" of shares
      of
      Common Stock determined according to the following formula (a "Cashless
      Exercise"):

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

    Net
      Number = (A x B) - (A x
      C)

                                         
      B

    

    For
      purposes of the foregoing formula:

    

    
      
        
          	
                	
                  A=

                	
                  the
                    total number of shares with respect to which this Warrant is
                    then being
                    exercised. 

                

        

      

    

    

    
      
        
          	
                	
                  B=

                	
                  the
                    Weighted Average Price of the shares of Common Stock (as reported
                    by
                    Bloomberg)  for the five (5) consecutive Trading Days ending on
                    the date immediately preceding the date of the Exercise Notice.
                    

                

        

      

    

    

    
      
        
          	
                	
                  C=

                	
                  the
                    Exercise Price then in effect for the applicable Warrant Shares
                    at the
                    time of such exercise. 

                

        

      

    

    

    (e)
Disputes.  In
      the case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall promptly issue
      to the Holder the number of Warrant Shares that are not disputed and resolve
      such dispute in accordance with Section 12.

    

    (f)
Limitations
      on
      Exercises.

    

    (i)           Beneficial
      Ownership.
      The Company shall not effect the exercise of this Warrant, and the Holder shall
      not have the right to exercise this Warrant, to the extent that after giving
      effect to such exercise, such Person (together with such Person's affiliates)
      would beneficially own in excess of 4.99% (the "Maximum Percentage")of the
      shares of Common Stock outstanding immediately after giving effect to such
      exercise.  For purposes of the foregoing sentence, the aggregate
      number of shares of Common Stock beneficially owned by such Person and its
      affiliates shall include the number of shares of Common Stock issuable upon
      exercise of this Warrant with respect to which the determination of such
      sentence is being made, but shall exclude shares of Common Stock which would
      be
      issuable upon (i) exercise of the remaining, unexercised portion of this Warrant
      beneficially owned by such Person and its affiliates and (ii) exercise or
      conversion of the unexercised or unconverted portion of any other securities
      of
      the Company beneficially owned by such Person and its affiliates (including,
      without limitation, any convertible notes or convertible preferred stock or
      warrants) subject to a limitation on conversion or exercise analogous to the
      limitation contained herein.  Except as set forth in the preceding
      sentence, for purposes of this paragraph, beneficial ownership shall be
      calculated in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended.  For purposes of this Warrant, in determining the
      number of outstanding shares of Common Stock, the Holder may rely on the number
      of outstanding shares of Common Stock as reflected in (1) the Company's most
      recent Form 10-K, Form 10-KSB, Form 10-Q, Form 10-QSB, Current Report on Form
      8-K or other public filing with the Securities and Exchange Commission, as
      the
      case may be, (2) a more recent public announcement by the Company or (3) any
      other notice by the Company or the Transfer Agent setting forth the number
      of
      shares of Common Stock outstanding.  For any reason at any time, upon
      the written or oral request of the Holder, the Company shall within one Business
      Day confirm orally and in writing to the Holder the number of shares of Common
      Stock then outstanding.  In any case, the number of outstanding shares
      of Common Stock shall be determined after giving effect to the conversion or
      exercise of securities of the Company, including the SPA Securities and the
      SPA
      Warrants, by the Holder and its affiliates since the date as of which such
      number of outstanding shares of Common Stock was reported.  By written
      notice to the Company, the Holder may from time to time increase or decrease
      the
      Maximum Percentage to any other percentage not in excess of 9.99% specified
      in
      such notice; provided that (i) any such increase will not be effective until
      the
      sixty-first (61st)
      day
      after such notice is delivered to the Company, and (ii) any such increase or
      decrease will apply only to the Holder and not to any other holder of SPA
      Warrants.  The provisions of this paragraph shall be construed and
      implemented in a manner otherwise than in strict conformity with the terms
      of
      this Section 1(f) to correct this paragraph (or any portion hereof) which may
      be
      defective or inconsistent with the intended beneficial ownership limitation
      herein contained or to make changes or supplements necessary or desirable to
      properly give effect to such limitation.

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    (ii)           Principal
      Market
      Regulation.  The Company shall not be obligated to issue any
      shares of Common Stock upon exercise of this Warrant and the Holder shall not
      have the right to receive upon exercise of this Warrant any shares of Common
      Stock, if the issuance of such shares of Common Stock would exceed the aggregate
      number of shares of Common Stock which the Company may issue upon exercise
      of
      this Warrant (including, as applicable, any shares of Common Stock issued upon
      conversion of the SPA Securities) without breaching the Company's obligations
      under the rules or regulations of the Principal Market (the "Exchange Cap"), except that
      such limitation shall not apply in the event that the Company (A) obtains the
      approval of its stockholders as required by the applicable rules of the
      Principal Market for issuances of shares of Common Stock in excess of such
      amount or (B) obtains a written opinion from outside counsel to the Company
      that
      such approval is not required, which opinion shall be reasonably satisfactory
      to
      the Required Holders.  Until such approval or written opinion is
      obtained, no Holder shall be issued, upon exercise or conversion, as applicable,
      of any SPA Warrants or SPA Securities, shares of Common Stock in an amount
      greater than the product of the Exchange Cap multiplied by a fraction, the
      numerator of which is the total number of shares of Common Stock issued to
      such
      Holder pursuant to the Securities Purchase Agreement on the Issuance Date and
      the denominator of which is the aggregate number of shares of Common Stock
      issued to the Holders pursuant to the Securities Purchase Agreement on the
      Issuance Date (with respect to each Holder, the "Exchange Cap
      Allocation").  In the event that any Holder shall sell or
      otherwise transfer any of such Holder's SPA Warrants, the transferee shall
      be
      allocated a pro rata portion of such Holder's Exchange Cap Allocation, and
      the
      restrictions of the prior sentence shall apply to such transferee with respect
      to the portion of the Exchange Cap Allocation allocated to such
      transferee.  In the event that any Holder of SPA Warrants shall
      exercise all of such Holder's SPA Warrants into a number of shares of Common
      Stock which, in the aggregate, is less than such Holder's Exchange Cap
      Allocation, then the difference between such Holder's Exchange Cap Allocation
      and the number of shares of Common Stock actually issued to such Holder shall
      be
      allocated to the respective Exchange Cap Allocations of the remaining Holders
      of
      SPA Warrants on a pro rata basis in proportion to the shares of Common Stock
      underlying the SPA Warrants then held by each such Holder.  In the
      event that the Company is prohibited from issuing any Warrant Shares for which
      an Exercise Notice has been received as a result of the operation of this
      Section 1(f)(ii), the Company shall pay cash in exchange for cancellation of
      such Warrant Shares, at a price per Warrant Share equal to the difference
      between the Closing Sale Price and the Exercise Price as of the date of the
      attempted exercise.

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

    (g)
Insufficient
      Authorized
      Shares.  If at any time while this Warrant remain outstanding
      the Company does not have a sufficient number of authorized and unreserved
      shares of Common Stock to satisfy its obligation to reserve for issuance upon
      exercise of this Warrant at least a number of shares of Common Stock equal
      to
      130% (the "Required Reserve
      Amount") of the number of shares of Common Stock as shall from time to
      time be necessary to effect the exercise of all of this Warrant then outstanding
      (an "Authorized Share
      Failure"), then the Company shall immediately take all action necessary
      to increase the Company's authorized shares of Common Stock to an amount
      sufficient to allow the Company to reserve the Required Reserve Amount for
      this
      Warrant then outstanding.  Without limiting the generality of the
      foregoing sentence, as soon as practicable after the date of the occurrence
      of
      an Authorized Share Failure, but in no event later than sixty (60) days after
      the occurrence of such Authorized Share Failure, the Company shall hold a
      meeting of its stockholders for the approval of an increase in the number of
      authorized shares of Common Stock.  In connection with such meeting,
      the Company shall provide each stockholder with a proxy statement and shall
      use
      its best efforts to solicit its stockholders' approval of such increase in
      authorized shares of Common Stock and to cause its board of directors to
      recommend to the stockholders that they approve such proposal.

    

    2. 
      ADJUSTMENT OF EXERCISE
      PRICE AND NUMBER OF WARRANT SHARES.  The Exercise Price and the
      number of Warrant Shares shall be adjusted from time to time as
      follows:

    

    (a)
Adjustment
      upon Issuance of
      shares of Common Stock.  If and whenever on or after the
      Subscription Date the Company issues or sells, or in accordance with this
      Section 2 is deemed to have issued or sold, any shares of Common Stock
      (including the issuance or sale of shares of Common Stock owned or held by
      or
      for the account of the Company, but excluding shares of Common Stock deemed
      to
      have been issued by the Company in connection with any Excluded Securities
      (as
      defined in the SPA Securities) for a consideration per share (the "New Issuance Price") less than
      a price (the "Applicable
      Price") equal to the Exercise Price in effect immediately prior to such
      issue or sale or deemed issuance or sale (the foregoing a "Dilutive Issuance"), then
      immediately after such Dilutive Issuance, the Exercise Price then in effect
      shall be reduced to an amount equal to the New Issuance Price.  Upon each such
      adjustment of the Exercise Price hereunder, the number of Warrant Shares shall
      be adjusted to the number of shares of Common Stock determined by multiplying
      the Exercise Price in effect immediately prior to such adjustment by the number
      of Warrant Shares acquirable upon exercise of this Warrant immediately prior
      to
      such adjustment and dividing the product thereof by the Exercise Price resulting
      from such adjustment.  For purposes of determining the adjusted
      Exercise Price under this Section 2(a), the following shall be
      applicable:

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

    (i)           Issuance
      of
      Options.  If the Company in any manner grants any Options and
      the lowest price per share for which one share of Common Stock is issuable
      upon
      the exercise of any such Option or upon conversion, exercise or exchange of
      any
      Convertible Securities issuable upon exercise of any such Option is less than
      the Applicable Price, then such share of Common Stock shall be deemed to be
      outstanding and to have been issued and sold by the Company at the time of
      the
      granting or sale of such Option for such price per share.  For
      purposes of this Section 2(a)(i), the "lowest price per share for which one
      share of Common Stock is issuable upon exercise of such Options or upon
      conversion, exercise or exchange of such Convertible Securities issuable upon
      exercise of any such Option" shall be equal to the sum of the lowest amounts
      of
      consideration (if any) received or receivable by the Company with respect to
      any
      one share of Common Stock upon the granting or sale of the Option, upon exercise
      of the Option and upon conversion, exercise or exchange of any Convertible
      Security issuable upon exercise of such Option.  No further adjustment
      of the Exercise Price or number of Warrant Shares shall be made upon the actual
      issuance of such shares of Common Stock or of such Convertible Securities upon
      the exercise of such Options or upon the actual issuance of such shares of
      Common Stock upon conversion, exercise or exchange of such Convertible
      Securities.

    

    (ii)           Issuance
      of Convertible
      Securities.  If the Company in any manner issues or sells any
      Convertible Securities and the lowest price per share for which one share of
      Common Stock is issuable upon the conversion, exercise or exchange thereof
      is
      less than the Applicable Price, then such share of Common Stock shall be deemed
      to be outstanding and to have been issued and sold by the Company at the time
      of
      the issuance or sale of such Convertible Securities for such price per
      share.  For the purposes of this Section 2(a)(ii), the "lowest price
      per share for which one share of Common Stock is issuable upon the conversion,
      exercise or exchange thereof" shall be equal to the sum of the lowest amounts
      of
      consideration (if any) received or receivable by the Company with respect to
      one
      share of Common Stock upon the issuance or sale of the Convertible Security
      and
      upon conversion, exercise or exchange of such Convertible
      Security.  No further adjustment of the Exercise Price or number of
      Warrant Shares shall be made upon the actual issuance of such shares of Common
      Stock upon conversion, exercise or exchange of such Convertible Securities,
      and
      if any such issue or sale of such Convertible Securities is made upon exercise
      of any Options for which adjustment of this Warrant has been or is to be made
      pursuant to other provisions of this Section 2(a), no further adjustment of
      the
      Exercise Price or number of Warrant Shares shall be made by reason of such
      issue
      or sale.

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

    (iii)           Change
      in Option Price or
      Rate of Conversion.  If the purchase price provided for in any
      Options, the additional consideration, if any, payable upon the issue,
      conversion, exercise or exchange of any Convertible Securities, or the rate
      at
      which any Convertible Securities are convertible into or exercisable or
      exchangeable for shares of Common Stock increases or decreases at any time,
      the
      Exercise Price and the number of Warrant Shares in effect at the time of such
      increase or decrease shall be adjusted to the Exercise Price and the number
      of
      Warrant Shares which would have been in effect at such time had such Options
      or
      Convertible Securities provided for such increased or decreased purchase price,
      additional consideration or increased or decreased conversion rate, as the
      case
      may be, at the time initially granted, issued or sold.  For purposes
      of this Section 2(a)(iii), if the terms of any Option or Convertible Security
      that was outstanding as of the date of issuance of this Warrant are increased
      or
      decreased in the manner described in the immediately preceding sentence, then
      such Option or Convertible Security and the shares of Common Stock deemed
      issuable upon exercise, conversion or exchange thereof shall be deemed to have
      been issued as of the date of such increase or decrease.  No
      adjustment pursuant to this Section 2(a) shall be made if such adjustment would
      result in an increase of the Exercise Price then in effect or a decrease in
      the
      number of Warrant Shares.

    

    (iv)           Calculation
      of Consideration
      Received.  In case any Option is issued in connection with the
      issue or sale of other securities of the Company, together comprising one
      integrated transaction in which no specific consideration is allocated to such
      Options by the parties thereto, the Options will be deemed to have been issued
      for a consideration of $0.01.  If any shares of Common Stock, Options
      or Convertible Securities are issued or sold or deemed to have been issued
      or
      sold for cash, the consideration received therefor will be deemed to be the
      net
      amount received by the Company therefor.  If any shares of Common
      Stock, Options or Convertible Securities are issued or sold for a consideration
      other than cash, the amount of such consideration 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 Closing Sale Price of such security on the date of
      receipt.  If any shares of Common Stock, Options or Convertible
      Securities are issued to the owners of the non-surviving entity in connection
      with any merger in which the Company is the surviving entity, 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 entity as is attributable
      to
      such shares of 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 jointly by the Company and the Required
      Holders.  If such parties are unable to reach agreement within ten
      (10) days after the occurrence of an event requiring valuation (the "Valuation Event"), the fair
      value of such consideration will be determined within five (5) Business Days
      after the tenth (10th)
      day
      following the Valuation Event by an independent, reputable appraiser jointly
      selected by the Company and the Required Holders.  The determination
      of such appraiser shall be final and binding upon all parties absent manifest
      error and the fees and expenses of such appraiser shall be borne by the
      Company.

    
      
        
        

      

      
        -
          8
          -

        
          

        

      

      
        
        

      

    

    (v)           Record
      Date.  If the Company takes a record of the holders of shares
      of Common Stock for the purpose of entitling them (A) to receive a dividend
      or
      other distribution payable in shares of Common Stock, Options or in Convertible
      Securities or (B) to subscribe for or purchase shares of Common Stock, Options
      or Convertible Securities, then such record date will be deemed to be the date
      of the issue or sale of the shares of Common Stock deemed to have been issued
      or
      sold upon the declaration of such dividend or the making of such other
      distribution or the date of the granting of such right of subscription or
      purchase, as the case may be.

    

    (vii)           Voluntary
      Adjustment By
      Company.  The Company may at any time during the term of this
      Warrant reduce the then current Exercise Price to any amount and for any period
      of time deemed appropriate by the Board of Directors of the
      Company.

    

    (b)
Adjustment
      upon Subdivision
      or Combination of Common Stock.  If the Company at any time on
      or after the Subscription Date subdivides (by any stock split, stock dividend,
      recapitalization or otherwise) one or more classes of its outstanding shares
      of
      Common Stock into a greater number of shares, the Exercise Price in effect
      immediately prior to such subdivision will be proportionately reduced and the
      number of Warrant Shares will be proportionately increased.  If the
      Company at any time on or after the Subscription Date  combines (by
      combination, reverse stock split or otherwise) one or more classes of its
      outstanding shares of Common Stock into a smaller number of shares, the Exercise
      Price in effect immediately prior to such combination will be proportionately
      increased and the number of Warrant Shares will be proportionately
      decreased.  Any adjustment under this Section 2(b) shall become
      effective at the close of business on the date the subdivision or combination
      becomes effective.

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

    (c)
Other
      Events.  If any event occurs of the type contemplated by the
      provisions of this Section 2 but not expressly provided for by such provisions
      (including, without limitation, the granting of stock appreciation rights,
      phantom stock rights or other rights with equity features), then the Company's
      Board of Directors will make an appropriate adjustment in the Exercise Price
      and
      the number of Warrant Shares so as to protect the rights of the Holder; provided
      that no such adjustment pursuant to this Section 2(c) will increase the Exercise
      Price or decrease the number of Warrant Shares as otherwise determined pursuant
      to this Section 2.

    

    3. 
      RIGHTS UPON
      DISTRIBUTION OF ASSETS.  If the Company shall declare or make
      any dividend or other distribution of its assets (or rights to acquire its
      assets) to holders of shares of Common Stock, by way of return of capital or
      otherwise (including, without limitation, any distribution of cash, stock or
      other securities, property or options by way of a dividend, spin off,
      reclassification, corporate rearrangement, scheme of arrangement or other
      similar transaction) (a "Distribution"), at any time
      after the issuance of this Warrant, then, in each such case:

    

    (a)
      any
      Exercise Price in effect immediately prior to the close of business on the
      record date fixed for the determination of holders of shares of Common Stock
      entitled to receive the Distribution shall be reduced, effective as of the
      close
      of business on such record date, to a price determined by multiplying such
      Exercise Price by a fraction of which (i) the numerator shall be the Closing
      Bid
      Price of the shares of Common Stock on the Trading Day immediately preceding
      such record date minus the value of the Distribution (as determined in good
      faith by the Company's Board of Directors) applicable to one share of Common
      Stock, and (ii) the denominator shall be the Closing Bid Price of the shares
      of
      Common Stock on the Trading Day immediately preceding such record date;
      and

    

    (b)
      the
      number of Warrant Shares shall be increased to a number of shares equal to
      the
      number of shares of Common Stock obtainable immediately prior to the close
      of
      business on the record date fixed for the determination of holders of shares
      of
      Common Stock entitled to receive the Distribution multiplied by the reciprocal
      of the fraction set forth in the immediately preceding paragraph (a); provided
      that in the event that the Distribution is of shares of Common Stock (or common
      stock) ("Other Shares of Common
      Stock") of a company whose common shares are traded on a national
      securities exchange or a national automated quotation system, then the Holder
      may elect to receive a warrant to purchase Other Shares of Common Stock in
      lieu
      of an increase in the number of Warrant Shares, the terms of which shall be
      identical to those of this Warrant, except that such warrant shall be
      exercisable into the number of shares of Other Shares of Common Stock that
      would
      have been payable to the Holder pursuant to the Distribution had the Holder
      exercised this Warrant immediately prior to such record date and with an
      aggregate exercise price equal to the product of the amount by which the
      exercise price of this Warrant was decreased with respect to the Distribution
      pursuant to the terms of the immediately preceding paragraph (a) and the number
      of Warrant Shares calculated in accordance with the first part of this paragraph
      (b).

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    4. 
      PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

    

    (a)
Purchase
      Rights.  In addition to any adjustments pursuant to Section 2
      above, if at any time the Company grants, issues or sells any Options,
      Convertible Securities or rights to purchase stock, warrants, securities or
      other property pro rata to the record holders of any class of shares of Common
      Stock (the "Purchase
      Rights"), then the Holder will be entitled to acquire, upon the terms
      applicable to such Purchase Rights, the aggregate Purchase Rights which the
      Holder could have acquired if the Holder had held the number of shares of Common
      Stock acquirable upon complete exercise of this Warrant (without regard to
      any
      limitations on the exercise of this Warrant) immediately before the date on
      which a record is taken for the grant, issuance or sale of such Purchase Rights,
      or, if no such record is taken, the date as of which the record holders of
      shares of Common Stock are to be determined for the grant, issue or sale of
      such
      Purchase Rights.

    

    (b)
Fundamental
      Transactions.  The Company shall not enter into or be party to
      a Fundamental Transaction unless (i)  the Successor Entity assumes in
      writing all of the obligations of the Company under this Warrant and the other
      Transaction Documents in accordance with the provisions of this Section (4)(b)
      pursuant to written agreements in form and substance satisfactory to the
      Required Holders and approved by the Required Holders prior to such Fundamental
      Transaction, including agreements to deliver to each holder of Warrants in
      exchange for such Warrants a security of the Successor Entity evidenced by
      a
      written instrument substantially similar in form and substance to this Warrant,
      including, without limitation, an adjusted exercise price equal to the value
      for
      the shares of Common Stock reflected by the terms of such Fundamental
      Transaction, and exercisable for a corresponding number of shares of capital
      stock equivalent to the shares of Common Stock acquirable and receivable upon
      exercise of this Warrant (without regard to any limitations on the exercise
      of
      this Warrant) prior to such Fundamental Transaction, and satisfactory to the
      Required Holders and (ii) the Successor Entity (including its Parent Entity)
      is
      a publicly traded corporation whose common stock is quoted on or listed for
      trading on an Eligible Market.  Upon the occurrence of any Fundamental
      Transaction, the Successor Entity shall succeed to, and be substituted for
      (so
      that from and after the date of such Fundamental Transaction, the provisions
      of
      this Warrant referring to the "Company" shall refer instead to the Successor
      Entity), and may exercise every right and power of the Company and shall assume
      all of the obligations of the Company under this Warrant with the same effect
      as
      if such Successor Entity had been named as the Company herein.  Upon
      consummation of the Fundamental Transaction, the Successor Entity shall deliver
      to the Holder confirmation that there shall be issued upon exercise of this
      Warrant at any time after the consummation of the Fundamental Transaction,
      in
      lieu of the shares of the Common Stock (or other securities, cash, assets or
      other property) purchasable upon the exercise of the Warrant prior to such
      Fundamental Transaction, such shares of the publicly traded Common Stock (or
      its
      equivalent) of the Successor Entity (including its Parent Entity) which the
      Holder would have been entitled to receive upon the happening of such
      Fundamental Transaction had this Warrant been converted immediately prior to
      such Fundamental Transaction, as adjusted in accordance with the provisions
      of
      this Warrant.  In addition to and not in substitution for any other
      rights hereunder, prior to the consummation of any Fundamental Transaction
      pursuant to which holders of shares of Common Stock are entitled to receive
      securities or other assets with respect to or in exchange for shares of Common
      Stock (a "Corporate
      Event"), the Company shall make appropriate provision to insure that the
      Holder will thereafter have the right to receive upon an exercise of this
      Warrant at any time after the consummation of the Fundamental Transaction but
      prior to the Expiration Date, in lieu of the shares of the Common Stock (or
      other securities, cash, assets or other property) purchasable upon the exercise
      of the Warrant prior to such Fundamental Transaction, such shares of stock,
      securities, cash, assets or any other property whatsoever (including warrants
      or
      other purchase or subscription rights) which the Holder would have been entitled
      to receive upon the happening of such Fundamental Transaction had the Warrant
      been exercised immediately prior to such Fundamental
      Transaction.  Provision made pursuant to the preceding sentence shall
      be in a form and substance reasonably satisfactory to the Required
      Holders.  The provisions of this Section shall apply similarly and
      equally to successive Fundamental Transactions and Corporate Events and shall
      be
      applied without regard to any limitations on the exercise of this
      Warrant.

    
      
        
        

      

      
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          11
          -

        
          

        

      

      
        
        

      

    

    (c)
      Notwithstanding the foregoing and the provisions of Section 4(b) above, in
      the
      event of a Fundamental Transaction, at the request of the Holder delivered
      before the ninetieth (90th) day after the consummation of such Fundamental
      Transaction, the Company (or the
      Successor Entity) shall
      purchase this Warrant from the Holder by paying to the Holder, within five
      (5)
      Business Days after such request (or, if later, on the effective date of the
      Fundamental Transaction), cash in an amount equal to the Black Scholes
      Value of the remaining unexercised portion of this Warrant on the date of such
      Fundamental Transaction.

    

    5. 
      NONCIRCUMVENTION.  The
      Company hereby covenants and agrees that the Company will not, by amendment
      of
      its Articles of Incorporation, Bylaws or through any reorganization, transfer
      of
      assets, consolidation, merger, scheme of arrangement, 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 of this Warrant, and will at
      all
      times in good faith carry out all the provisions of this Warrant and take all
      action as may be required to protect the rights of the
      Holder.  Without limiting the generality of the foregoing, the Company
      (i) shall 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,
      (ii)
      shall 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, and (iii) shall, so long as
      any
      of the SPA Warrants are outstanding, take all action necessary to reserve and
      keep available out of its authorized and unissued shares of Common Stock, solely
      for the purpose of effecting the exercise of the SPA Warrants, 130% of the
      number of shares of Common Stock as shall from time to time be necessary to
      effect the exercise of the SPA Warrants then outstanding (without regard to
      any
      limitations on exercise).

    

    6. 
      WARRANT HOLDER NOT
      DEEMED A STOCKHOLDER.  Except as otherwise specifically
      provided herein, the Holder, solely in such Person's capacity as a holder of
      this Warrant, shall not be entitled to vote or receive dividends or be deemed
      the holder of share capital of the Company for any purpose, nor shall anything
      contained in this Warrant be construed to confer upon the Holder, solely in
      such
      Person's capacity as the Holder of this Warrant, any of the rights of a
      stockholder of the Company or any right to vote, give or withhold consent to
      any
      corporate action (whether any reorganization, issue of stock, reclassification
      of stock, consolidation, merger, conveyance or otherwise), receive notice of
      meetings, receive dividends or subscription rights, or otherwise, prior to
      the
      issuance to the Holder of the Warrant Shares which such Person is then entitled
      to receive upon the due exercise of this Warrant.  In addition,
      nothing contained in this Warrant shall be construed as imposing any liabilities
      on the Holder to purchase any securities (upon exercise of this Warrant or
      otherwise) or as a stockholder of the Company, whether such liabilities are
      asserted by the Company or by creditors of the
      Company.  Notwithstanding this Section 6, the Company shall provide
      the Holder with copies of the same notices and other information given to the
      stockholders of the Company generally, contemporaneously with the giving thereof
      to the stockholders.

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

    7. 
      REISSUANCE OF
      WARRANTS.

    

    (a)
Transfer
      of
      Warrant.  If this Warrant is to be transferred, the Holder
      shall surrender this Warrant to the Company, whereupon the Company will
      forthwith issue and deliver upon the order of the Holder a new Warrant (in
      accordance with Section 7(d)), registered as the Holder may request,
      representing the right to purchase the number of Warrant Shares being
      transferred by the Holder and, if less than the total number of Warrant Shares
      then underlying this Warrant is being transferred, a new Warrant (in accordance
      with Section 7(d)) to the Holder representing the right to purchase the number
      of Warrant Shares not being transferred.

    

    (b)
Lost,
      Stolen or Mutilated
      Warrant.  Upon receipt by the Company of evidence reasonably
      satisfactory to the Company of the loss, theft, destruction or mutilation of
      this Warrant, and, in the case of loss, theft or destruction, of any
      indemnification undertaking by the Holder to the Company in customary form
      and,
      in the case of mutilation, upon surrender and cancellation of this Warrant,
      the
      Company shall execute and deliver to the Holder a new Warrant (in accordance
      with Section 7(d)) representing the right to purchase the Warrant Shares then
      underlying this Warrant.

    

    (c)
Exchangeable
      for Multiple
      Warrants.  This Warrant is exchangeable, upon the surrender
      hereof by the Holder at the principal office of the Company, for a new Warrant
      or Warrants (in accordance with Section 7(d)) representing in the aggregate
      the
      right to purchase the number of Warrant Shares then underlying this Warrant,
      and
      each such new Warrant will represent the right to purchase such portion of
      such
      Warrant Shares as is designated by the Holder at the time of such surrender;
      provided, however, that no Warrants for fractional shares of Common Stock shall
      be given.

    

    (d)
Issuance
      of New
      Warrants.  Whenever the Company is required to issue a new
      Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be
      of
      like tenor with this Warrant, (ii) shall represent, as indicated on the face
      of
      such new Warrant, the right to purchase the Warrant Shares then underlying
      this
      Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
      or Section 7(c), the Warrant Shares designated by the Holder which, when added
      to the number of shares of Common Stock underlying the other new Warrants issued
      in connection with such issuance, does not exceed the number of Warrant Shares
      then underlying this Warrant), (iii) shall have an issuance date, as indicated
      on the face of such new Warrant which is the same as the Issuance Date, and
      (iv)
      shall have the same rights and conditions as this Warrant.

    

    8. 
      NOTICES.  Whenever
      notice is required to be given under this Warrant, unless otherwise provided
      herein, such notice shall be given in accordance with Section 9(f) of the
      Securities Purchase Agreement.  The Company shall provide the Holder
      with prompt written notice of all actions taken pursuant to this Warrant,
      including in reasonable detail a description of such action and the reason
      therefor.  Without limiting the generality of the foregoing, the
      Company will give written notice to the Holder (i) immediately upon any
      adjustment of the Exercise Price, setting forth in reasonable detail, and
      certifying, the calculation of such adjustment and (ii) at least fifteen (15)
      days prior to the date on which the Company closes its books or takes a record
      (A) with respect to any dividend or distribution upon the shares of Common
      Stock, (B) with respect to any grants, issuances or sales of any Options,
      Convertible Securities or rights to purchase stock, warrants, securities or
      other property to holders of shares of Common Stock or (C) for determining
      rights to vote with respect to any Fundamental Transaction, dissolution or
      liquidation, provided in each case that such information shall be made known
      to
      the public prior to or in conjunction with such notice being provided to the
      Holder.

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

    9. 
      AMENDMENT AND
      WAIVER.  Except as otherwise provided herein, the provisions of
      this Warrant may be amended and the Company may take any action herein
      prohibited, or omit to perform any act herein required to be performed by it,
      only if the Company has obtained the written consent of the Required Holders;
      provided that no such action may increase the exercise price of any SPA Warrant
      or decrease the number of shares or class of stock obtainable upon exercise
      of
      any SPA Warrant without the written consent of the Holder.  No such
      amendment shall be effective to the extent that it applies to less than all
      of
      the holders of the SPA Warrants then outstanding.

    

    10.
GOVERNING
      LAW.  This Warrant shall be governed by and construed and
      enforced in accor­dance with, and all questions concerning the construction,
      validity, interpretation and performance of this Warrant shall be governed
      by,
      the internal laws of the State of New York, without giving effect to any choice
      of law or conflict of law provision or rule (whether of the State of New York
      or
      any other jurisdictions) that would cause the application of the laws of any
      jurisdictions other than the State of New York.

    

    11.
CONSTRUCTION;
      HEADINGS.  This Warrant shall be deemed to be jointly drafted
      by the Company and all the Buyers and shall not be construed against any person
      as the drafter hereof.  The headings of this Warrant are for
      convenience of reference and shall not form part of, or affect the
      interpretation of, this Warrant.

    

    12.
DISPUTE
      RESOLUTION.  In the case of a dispute as to the determination
      of the Exercise Price or the arithmetic calculation of the Warrant Shares,
      the
      Company shall submit the disputed determinations or arithmetic calculations
      via
      facsimile within two (2) Business Days of receipt of the Exercise Notice giving
      rise to such dispute, as the case may be, to the Holder.  If the
      Holder and the Company are unable to agree upon such determination or
      calculation of the Exercise Price or the Warrant Shares within three (3)
      Business Days of such disputed determination or arithmetic calculation being
      submitted to the Holder, then the Company shall, within two (2) Business Days
      submit via facsimile (a) the disputed determination of the Exercise Price to
      an
      independent, reputable investment bank selected by the Company and approved
      by
      the Holder  or (b) the disputed arithmetic calculation of the Warrant
      Shares to the Company's independent, outside accountant.  The Company
      shall cause at its expense the investment bank or the accountant, as the case
      may be, to perform the determinations or calculations and notify the Company
      and
      the Holder of the results no later than ten Business Days from the time it
      receives the disputed determinations or calculations.  Such investment
      bank's or accountant's determination or calculation, as the case may be, shall
      be binding upon all parties absent demonstrable error.

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

    13.
REMEDIES,
      OTHER OBLIGATIONS,
      BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this
      Warrant shall be cumulative and in addition to all other remedies available
      under this Warrant and the other Transaction Documents, at law or in equity
      (including a decree of specific performance and/or other injunctive relief),
      and
      nothing herein shall limit the right of the Holder to pursue actual damages
      for
      any failure by the Company to comply with the terms of this
      Warrant.  The Company acknowledges that a breach by it of its
      obligations hereunder will cause irreparable harm to the Holder and that the
      remedy at law for any such breach may be inadequate.  The Company
      therefore agrees that, in the event of any such breach or threatened breach,
      the
      holder of this Warrant shall be entitled to seek, in addition to all other
      available remedies, to an injunction restraining any breach, without the
      necessity of showing economic loss and without any bond or other security being
      required.

    

    14.
TRANSFER.
      This
      Warrant may be offered for sale, sold, transferred or assigned without the
      consent of the Company, except as may otherwise be required by Section 2(f)
      of
      the Securities Purchase Agreement.

    

    15.
SEVERABILITY.
      If any
      provision of this Warrant is prohibited by law or otherwise determined to be
      invalid or unenforceable by a court of competent jurisdiction, the provision
      that would otherwise be prohibited, invalid or unenforceable shall be deemed
      amended to apply to the broadest extent that it would be valid and enforceable,
      and the invalidity or unenforceability of such provision shall not affect the
      validity of the remaining provisions of this Warrant so long as this Warrant
      as
      so modified continues to express, without material change, the original
      intentions of the parties as to the subject matter hereof and the prohibited
      nature, invalidity or unenforceability of the provision(s) in question does
      not
      substantially impair the respective expectations or reciprocal obligations
      of
      the parties or the practical realization of the benefits that would otherwise
      be
      conferred upon the parties.  The parties will endeavor in good faith
      negotiations to replace the prohibited, invalid or unenforceable provision(s)
      with a valid provision(s), the effect of which comes as close as possible to
      that of the prohibited, invalid or unenforceable provision(s).

    

    16.
CERTAIN
      DEFINITIONS.  For purposes of this Warrant, the following terms
      shall have the following meanings:

    

    (a)
      "Bloomberg" means
      Bloomberg Financial Markets.

    

    (b)
      "Business Day" means any
      day other than Saturday, Sunday or other day on which commercial banks in The
      City of New York are authorized or required by law to remain
      closed.

    

    (c)
      "Closing Bid Price" and
      "Closing Sale Price"
      means, for any security as of any date, the last closing bid price and last
      closing trade price, respectively, for such security on the Principal Market,
      as
      reported by Bloomberg, or, if the Principal Market begins to operate on an
      extended hours basis and does not designate the closing bid price or the closing
      trade price, as the case may be, then the last bid price or the last trade
      price, respectively, of such security prior to 4:00:00 p.m., New York time,
      as
      reported by Bloomberg, or, if the Principal Market is not the principal
      securities exchange or trading market for such security, the last closing bid
      price or last trade price, respectively, of such security on the principal
      securities exchange or trading market where such security is listed or traded
      as
      reported by Bloomberg, or if the foregoing do not apply, the last closing bid
      price or last trade price, respectively, of such security in the
      over-the-counter market on the electronic bulletin board for such security
      as
      reported by Bloomberg, or, if no closing bid price or last trade price,
      respectively, is reported for such security by Bloomberg, the average of the
      bid
      prices, or the ask prices, respectively, of any market makers for such security
      as reported in the "pink sheets" by Pink Sheets LLC (formerly the National
      Quotation Bureau, Inc.).  If the Closing Bid Price or the Closing Sale
      Price cannot be calculated for a security on a particular date on any of the
      foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case
      may be, of such security on such date shall be the fair market value as mutually
      determined by the Company and the Holder.  If the Company and the
      Holder are unable to agree upon the fair market value of such security, then
      such dispute shall be resolved pursuant to Section 12.  All such
      determinations to be appropriately adjusted for any stock dividend, stock split,
      stock combination or other similar transaction during the applicable calculation
      period.

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

    (d)
      "Common Stock" means (i)
      the Company's shares of Common Stock, par value $0.001 per share, and (ii)
      any
      stock capital into which such Common Stock shall have been changed or any stock
      capital resulting from a reclassification of such Common Stock.

    

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

    

    (f)
      "Eligible Market" means
      the Principal Market, the American Stock Exchange, The New York Stock Exchange,
      Inc., The NASDAQ Global Market, The NASDAQ Global Select Market or The NASDAQ
      Capital Market.

    

    (g)
      "Expiration Date" means
      the date sixty (60) months after the Issuance Date or, if such date falls on
      a
      day other than a Business Day or on which trading does not take place on the
      Principal Market (a "Holiday"), the next date
      that
      is not a Holiday.

    

    (h)
      "Fundamental
      Transaction" means that (i) the Company shall, directly or indirectly, in
      one or more related transactions, (A) consolidate or merge with or into (whether
      or not the Company is the surviving corporation) another Person, or (B) sell,
      assign, transfer, convey or otherwise dispose of all or substantially all of
      the
      properties or assets of the Company to another Person, or (C) allow another
      Person to make a purchase, tender or exchange offer that is accepted by the
      holders of more than the 50% of the outstanding shares of Common Stock (not
      including any shares of Common Stock held by the Person or Persons making or
      party to, or associated or affiliated with the Persons making or party to,
      such
      purchase, tender or exchange offer), or (D) consummate a stock purchase
      agreement or other business combination (including, without limitation, a
      reorganization, recapitalization, spin-off or scheme of arrangement) with
      another Person whereby such other Person acquires more than 50% of the
      outstanding shares of Common Stock (not including any shares of Common Stock
      held by the other Person or other Persons making or party to, or associated
      or
      affiliated with the other Persons making or party to, such stock purchase
      agreement or other business combination), (E) reorganize, recapitalize or
      reclassify its Common Stock, or (ii) any "person" or "group" (as these terms
      are
      used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall
      become the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
      Act),
      directly or indirectly, of 50% of the aggregate ordinary voting power
      represented by issued and outstanding Common Stock.

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

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

    

    (j)
      "Parent Entity" of a
      Person means an entity that, directly or indirectly, controls the applicable
      Person and whose common stock or equivalent equity security is quoted or listed
      on an Eligible Market, or, if there is more than one such Person or Parent
      Entity, the Person or Parent Entity with the largest public market
      capitalization as of the date of consummation of the Fundamental
      Transaction.

    

    (k)
      "Person" means an
      individual, a limited liability company, a partnership, a joint venture, a
      corporation, a trust, an unincorporated organization, any other entity and
      a
      government or any department or agency thereof.

    

    (l)
      "Principal Market" means
the
      OTC Bulletin
      Board.

    

    (m)
      "Registration Rights
      Agreement" means that certain registration rights agreement dated as of
      the Subscription Date by and among the Company and the Buyers.

    

    (n)
      "Required Holders" means
      the holders of the SPA Warrants representing at least a majority of shares
      of
      Common Stock underlying the SPA Warrants then outstanding.

    

    (o)
      "SPA Securities" means
      the Notes issued pursuant to the securities Purchase Agreement.

    

    (p)
      "Successor Entity" means
      the Person (or, if so elected by the Required Holders, the Parent Entity) formed
      by, resulting from or surviving any Fundamental Transaction or the Person (or,
      if so elected by the Required Holders, the Parent Entity) with which such
      Fundamental Transaction shall have been entered into.

    

    (q)
      "Trading Day" means any
      day on which the Common Stock is traded on the Principal Market, or, if the
      Principal Market is not the principal trading market for the Common Stock,
      then
      on the principal securities exchange or securities market on which the Common
      Stock is then traded; provided that "Trading Day" shall not include any day
      on
      which the Common Stock is scheduled to trade on such exchange or market for
      less
      than 4.5 hours or any day that the Common Stock is suspended from trading during
      the final hour of trading on such exchange or market (or if such exchange or
      market does not designate in advance the closing time of trading on such
      exchange or market, then during the hour ending at 4:00:00 p.m., New York
      time).

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

    (r)
      "Weighted Average Price"
      means, for any security as of any date, the dollar volume-weighted average
      price
      for such security on the Principal Market during the period beginning at 9:30:01
      a.m., New York City Time (or such other time as the Principal Market publicly
      announces is the official open of trading), and ending at 4:00:00 p.m., New
      York
      City Time (or such other time as the Principal Market publicly announces is
      the
      official close of trading), as reported by Bloomberg through its "Volume at
      Price" function or, if the foregoing does not apply, the dollar volume-weighted
      average price of such security in the over-the-counter market on the electronic
      bulletin board for such security during the period beginning at 9:30:01 a.m.,
      New York City Time (or such other time as the Principal Market publicly
      announces is the official open of trading), and ending at 4:00:00 p.m., New
      York
      City Time (or such other time as the Principal Market publicly announces is
      the
      official close of trading), as reported by Bloomberg, or, if no dollar
      volume-weighted average price is reported for such security by Bloomberg for
      such hours, the average of the highest closing bid price and the lowest closing
      ask price of any of the market makers for such security as reported in the
      "pink
      sheets" by Pink Sheets LLC (formerly the National Quotation Bureau,
      Inc.).  If the Weighted Average Price cannot be calculated for a
      security on a particular date on any of the foregoing bases, the Weighted
      Average Price of such security on such date shall be the fair market value
      as
      mutually determined by the Company and the Holder.  If the Company and
      the Holder are unable to agree upon the fair market value of such security,
      then
      such dispute shall be resolved pursuant to Section 12 with the term "Weighted
      Average Price" being substituted for the term "Exercise Price." All such
      determinations shall be appropriately adjusted for any stock dividend, stock
      split, stock combination or other similar transaction during the applicable
      calculation period.

    

    [Signature
      Page Follows]

    
      
        
        

      

      
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          18
          -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the
      Company has caused this Warrant to Purchase Common Stock to be duly executed
      as
      of the Issuance Date set out above.

    

    

    
      	 	
              ENTERCONNECT
                INC.

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	
              Name:

            	
              Sam
                Jankovich

            	 
	 	
              Title:

            	
              Chairman
&
Chief
                Executive
                Officer

            	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    

    

    EXERCISE
      NOTICE

    

    TO
      BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
      TO PURCHASE COMMON STOCK

    

    

    ENTERCONNECT
      INC.

    

    The
      undersigned holder hereby exercises the right to purchase _________________
      of
      the shares of Common Stock ("Warrant Shares") of
      EnterConnect Inc., a Nevada corporation (the "Company"), evidenced by the
      attached Warrant to Purchase Common Stock (the "Warrant").  Capitalized
      terms used herein and not otherwise defined shall have the respective meanings
      set forth in the Warrant.

    

    1.  Form
      of Exercise Price.  The Holder intends that payment of the Exercise
      Price shall be made as:

    

    
      	
               

            	
              ____________________

            	
              a
                "Cash
                Exercise" with respect to _________________ Warrant Shares; and/or
                

            

    

    

    
      	
               

            	
              ____________________

            	
              a
                "Cashless
                Exercise" with respect to _______________ Warrant Shares.
                

            

    

    

    2.  Payment
      of Exercise Price.  In the event that the holder has elected a Cash
      Exercise with respect to some or all of the Warrant Shares to be issued pursuant
      hereto, the holder shall pay the Aggregate Exercise Price in the sum of
      $___________________ to the Company in accordance with the terms of the
      Warrant.

    

    3.  Delivery
      of Warrant Shares.  The Company shall deliver to the holder __________
      Warrant Shares in accordance with the terms of the Warrant.

    

    Date:
      _______________ __, ______

     

     

    _____________________________

    Name
      of Registered Holder

     

    By:        _______________________

                  Name:

                  Title:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGMENT

    

    

    The
      Company hereby acknowledges this
      Exercise Notice and hereby directs Interwest Transfer Co., Inc. to issue the
      above indicated number of shares of Common Stock in accordance with the Transfer
      Agent Instructions dated December __, 2007 from the Company and acknowledged
      and
      agreed to by Interwest Transfer Co., Inc.

    

    

    
      	 	
              ENTERCONNECT
                INC.

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]