Document:

Exhibit 4.2
-----------

                          REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made as of
August 31, 2005 by and among (i) ATC Healthcare, Inc., a Delaware corporation
(the "Company"), (ii) each of each of the following parties, Stuart Savitsky, an
individual with a principal residence located at 961 South End, Woodmere, New
York 11598, Shabsi Schreier, an individual with a principal residence located at
342 Grant Avenue, Woodmere, New York 11598, and Steven Wiener, an individual
with a principal residence located at 520 Cedarwood Drive, Cedarhurst, New York
11516 (each sometimes referred to as, an "Investor" and collectively as, the
"Investors"), and (iii) each person or entity that subsequently becomes a party
to this Agreement pursuant to, and in accordance with, the provisions of Section
11 hereof (collectively, the "Investor Permitted Transferees" and each
individually an "Investor Permitted Transferee").

         WHEREAS, each of the Investors previously sold assets to the Company
and received certain debt obligations as partial consideration for such asset
sale and which debt obligations (which debt obligation is referred to herein
with respect to each Investor as, the "Debt") are currently evidenced by
Subordinated Promissory Notes of the Company's subsidiaries, ATC Healthcare
Services, Inc. and ATC Staffing Services, Inc., dated April 22, 2005, each in
the principal amount of Two Million Seven Hundred Thousand Dollars ($2,700,000),
for an aggregate principal amount of Eight Million One Hundred Thousand Dollars
($8,100,000) (individually a "Subordinated Note" and collectively, the
"Subordinated Notes"); and

         WHEREAS, pursuant to an Agreement dated as an even date herewith
between the Company and the Investors (the "Debt Agreement"), the Investors have
each agreed to cancel their Subordinated Notes in exchange for an unfunded
promise of the Company to transfer newly issued Series B Preferred Stock of the
Company under conditions and at times as set forth in the Debt Agreement; and

         WHEREAS, in connection with the Debt Agreement, the Company has
established a grantor trust (the "Trust") under that certain Grantor Trust
Agreement Under Installment Sales Arrangement dated as of an even date herewith
by and between the Company and the Trustee thereunder (the "Trust Agreement"),
pursuant to which the Company has issued, or will issue, a total of Four
Thousand Fifty (4,050) shares (the "Trust Shares") of its newly created 5%
Convertible Series B Preferred Stock (the "Series B Preferred Stock"), with such
Series B Preferred Stock being held under the Trust, subject to the claims of
Company's creditors in the event of Company's Insolvency, as defined in the
Trust Agreement, until any such shares of Series B Preferred Stock are released
by the Trust for the Company to issue appropriate certificates in the name of
each Investor and/or their respective beneficiaries in a manner and at times as
specified the Debt Agreement, the Trust Agreement and the Certificate of
Designation for the Series B Preferred Stock that the Company filed with the
Secretary of State of the State of Delaware; and

         WHEREAS, in connection with the execution and delivery of the Debt
Agreement, the Company has agreed with the Investors to provide them with the
rights set forth in this Agreement with respect to the underlying Shares of the
Company's Common Stock to be issued upon the conversion of any shares of the
Company's Series B Preferred Stock that are released to any of the Investors in
accordance with the Debt Agreement and the Trust Agreement.

<PAGE>

                  NOW, THEREFORE, in consideration of the premises and mutual
covenants contained herein, the parties hereto hereby agree as follows:

              1. DEFINITIONS. The following terms shall have the meanings
     provided therefor below or elsewhere in this Agreement as described below:

                  "Board" shall mean the board of directors of the Company.

                  "Closing" or "Closings" shall mean any closing of the
conversion of any shares of Series B Preferred Stock that has been issued to an
Investor in accordance with the terms of the Debt Agreement and the Trust
Agreement into shares of the Company's Class A Common Stock.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and all of the rules and regulations promulgated thereunder.

                  "Investors" shall mean, collectively, the Investors and the
Investor Permitted Transferees; provided, however, that the term "Investors"
shall not include any of the Investors or any Investor Permitted Transferee that
ceases to own or hold any Registrable Shares.

                  "Majority Holders" shall mean, at the relevant time of
reference thereto, those Investors holding and/or having the right to acquire,
as the case may be, more than fifty percent (50%) of the Registrable Shares held
by all of the Investors.

                  "Qualifying Holder" shall have the meaning ascribed thereto in
Section 11 hereof.

                  "Registrable Shares" shall mean the shares of Class A Common
Stock to be issued upon the conversion of any shares of the Series B Preferred
Stock that are released and issued to an Investor under the terms of the Trust
Agreement, provided, however, that such term shall not include any of such
shares of Common Stock that become or have become eligible for resale pursuant
to Rule 144.

                       "Rule 144" shall mean Rule 144 promulgated under the
Securities Act and any successor or substitute rule, law or provision.

                       "SEC" shall mean the Securities and Exchange Commission.

                       "Securities Act" shall mean the Securities Act of 1933,
as amended, and all of the rules
and regulations promulgated thereunder.

         2. EFFECTIVENESS; TERMINATION. This Agreement shall become effective
and legally binding with respect to an Investor only if a Closing with respect
to a conversion of any shares of Series B Preferred Stock that have been issued
to an Investor under the terms of the Debt Agreement and the Trust Agreement
occurs and only with respect to Registrable Shares which have been purchased at
a Closing by such Investor.

<PAGE>

         3. REGISTRATION.

4.   The Company agrees that (i) at least one (1) month prior to any scheduled
     release of shares of Series B Preferred Stock to the Investors under the
     Trust Agreement, it will prepare and file with the SEC a registration
     statement on Form S-3 or its equivalent or (ii) if the Company is not then
     legally permitted to file with the SEC a registration statement on Form S-3
     with respect to resales of its shares, at least three (3) months prior to
     any scheduled release of shares of Series B Preferred Stock to the
     Investors under the Trust Agreement it will prepare and file with the SEC a
     registration statement on Form S-1 or its equivalent for the purpose of
     registering for resale by, and for the account of, the Investors as selling
     stockholders under the Securities Act, all of the Registrable Shares
     attributable to the shares of Series B Preferred Stock to be released to
     the Investors (in any case, a "Registration Statement"). In the case of
     unscheduled ------------ --------- releases, the Company shall file a
     Registration Statement as promptly as possible after it becomes aware of
     the release or probability of a release. The Registration Statement shall
     permit the Investors to offer and sell, on a delayed or continuous basis
     pursuant to Rule 415 under the Securities Act, any or all of the
     Registrable Shares. The Company shall cause the Registration Statement to
     become effective as soon as practicable and in any case no later than four
     months after the release of the shares of Series B Preferred Stock. The
     Company shall be required to use reasonable efforts to keep the
     Registration Statement effective until such date that is the earlier of (i)
     the date when all of the Registrable Shares registered thereunder shall
     have been sold or (ii) the second anniversary of the date of the release of
     the shares of Series B Preferred Stock. The offer and sale of the
     Registrable Shares pursuant to the Registration Statement shall not be
     underwritten.

         5. OBLIGATIONS OF THE COMPANY. In connection with the Company's
obligation under Section 3 hereof to file the Registration Statement with the
SEC and to use its best efforts to cause the Registration Statement to become
effective as soon as practicable, the Company shall, as expeditiously as
reasonably possible:

                  (a) Prepare and file with the SEC such amendments and
supplements to the Registration Statement and the prospectus used in connection
therewith as may be necessary to comply with the provisions of the Securities
Act with respect to the disposition of all Registrable Shares covered by the
Registration Statement;

                  Furnish or otherwise make available to the Investors such
number of copies of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Securities Act, and such other documents
(including, without limitation, prospectus amendments and supplements as are
prepared by the Company in accordance with Section 4(a) above) as the Investors
may reasonably request in order to facilitate the disposition of such Investors'
Registrable Shares;

<PAGE>

                  Notify the Investors, at any time when a prospectus relating
to the Registration Statement is required to be delivered under the Securities
Act, of the happening of any event as a result of which the prospectus included
in or relating to the Registration Statement contains an untrue statement of a
material fact or omits any fact necessary to make the statements therein not
misleading; and, thereafter, the Company will promptly prepare (and, when
completed, give notice to each Investor) a supplement or amendment to such
prospectus so that, as thereafter delivered to the purchasers of such
Registrable Shares, such prospectus will not contain an untrue statement of a
material fact or omit to state any fact necessary to make the statements therein
not misleading; provided that upon such notification by the Company, the
Investors will not offer or sell Registrable Shares until the Company has
notified the Investors that it has prepared a supplement or amendment to such
prospectus and delivered copies of such supplement or amendment to the selling
Investors (it being understood and agreed by the Company that the foregoing
proviso shall in no way diminish or otherwise impair the Company's obligation to
promptly prepare a prospectus amendment or supplement as above provided in this
Section 4(c) and deliver copies of same as above provided in Section 4(b)
hereof); and

                  Use commercially reasonable efforts to register and qualify
the Registrable Shares covered by the Registration Statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably
appropriate in the opinion of the Company, provided that the Company shall not
be required in connection therewith or as a condition thereto to qualify to do
business or to file a general consent to service of process in any such states
or jurisdictions, and provided further that (notwithstanding anything in this
Agreement to the contrary with respect to the bearing of expenses) if and only
to the extent that any jurisdiction in which any of such Registrable Shares
shall be qualified requires that expenses incurred in connection with the
qualification therein of any such Registrable Shares be borne by the selling
Investors, then the selling Investors shall, to the extent required by such
jurisdiction, pay their pro rata share of such qualification expenses.

         6. FURNISH INFORMATION. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Agreement that
the Investors shall furnish to the Company such information regarding them and
the securities held by them as the Company shall reasonably request and as shall
be required in order to effect any registration by the Company pursuant to this
Agreement.

         7. EXPENSES OF REGISTRATION. All expenses incurred in connection with
the registration of the Registrable Shares pursuant to this Agreement (excluding
underwriting, brokerage and other selling commissions and discounts), including
without limitation all registration and qualification and filing fees, printing,
and fees and disbursements of counsel for the Company, shall be borne by the
Company.

         8. DELAY OF REGISTRATION. The Investors shall not take any action to
restrain, enjoin or otherwise delay any registration as the result of any
controversy which might arise with respect to the interpretation or
implementation of this Agreement.

         9. INDEMNIFICATION.

                  (b) To the extent permitted by law, the Company will indemnify
and hold harmless each selling Investor, any investment banking firm acting as
an underwriter for the selling Investors, any broker/dealer acting on behalf of
any selling Investors and each officer and director of such selling Investor,
such underwriter, such broker/dealer and each person, if any, who controls such
selling Investor, such underwriter or broker/dealer within the meaning of the
Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the Securities Act or otherwise,

<PAGE>

insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue or alleged untrue statement
of any material fact contained in the Registration Statement, in any preliminary
prospectus or final prospectus relating thereto or in any amendments or
supplements to the Registration Statement or any such preliminary prospectus or
final prospectus, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading; and will reimburse such
selling Investor, such underwriter, broker/dealer or such officer, director or
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained
in this Section 8(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Company (which consent shall not be unreasonably withheld),
nor shall the Company be liable in any such case for any such loss, damage,
liability or action to the extent that it arises out of or is based upon an
untrue statement or alleged untrue statement or omission made in connection with
the Registration Statement, any preliminary prospectus or final prospectus
relating thereto or any amendments or supplements to the Registration Statement
or any such preliminary prospectus or final prospectus, in reliance upon and in
conformity with written information furnished expressly for use in connection
with the Registration Statement or any such preliminary prospectus or final
prospectus by the selling Investors, any underwriter for them or controlling
person with respect to them.

                  To the extent permitted by law, each selling Investor will
severally and not jointly indemnify and hold harmless the Company, each of its
directors, each of its officers who have signed the Registration Statement, each
person, if any, who controls the Company within the meaning of the Securities
Act, any investment banking firm acting as underwriter for the Company or the
selling Investors, or any broker/dealer acting on behalf of the Company or any
selling Investors, and all other selling Investors against any losses, claims,
damages or liabilities to which the Company or any such director, officer,
controlling person, underwriter, or broker/dealer or such other selling Investor
may become subject to, under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereto) arise out
of or are based upon any untrue or alleged untrue statement of any material fact
contained in the Registration Statement or any preliminary prospectus or final
prospectus, relating thereto or in any amendments or supplements to the
Registration Statement or any such preliminary prospectus or final prospectus,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent and only to the
extent that such untrue statement or alleged untrue statement or omission or
alleged omission was made in the Registration Statement, in any preliminary
prospectus or final prospectus relating thereto or in any amendments or
supplements to the Registration Statement or any such preliminary prospectus or
final prospectus, in reliance upon and in conformity with written information
furnished by the selling Investor expressly for use in connection with the
Registration Statement, or any preliminary prospectus or final prospectus; and
such selling Investor will reimburse any legal or other expenses reasonably
incurred by the Company or any such director, officer, controlling person,
underwriter, broker/dealer or other selling Investor in connection with
investigating or defending any such loss, claim, damage, liability or action,
provided, however, that the liability of each selling Investor hereunder shall
be limited to the proceeds (net of underwriting discounts and commissions, if
any) received by such selling Investor from the sale of Registrable Shares
covered by the Registration Statement, and provided, further, however, that the
indemnity agreement contained in this Section 8(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of those selling Investor(s) against
which the request for indemnity is being made (which consent shall not be
unreasonably withheld).

<PAGE>

                  Promptly after receipt by an indemnified party under this
Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against any indemnifying party
under this Section 8, notify the indemnifying party in writing of the
commencement thereof and the indemnifying party shall have the right to
participate in and, to the extent the indemnifying party desires, jointly with
any other indemnifying party similarly noticed, to assume at its expense the
defense thereof with counsel mutually satisfactory to the indemnifying parties
with the consent of the indemnified party which consent will not be unreasonably
withheld, conditioned or delayed. In the event that the indemnifying party
assumes any such defense, the indemnified party may participate in such defense
with its own counsel and at its own expense, provided, however, that the counsel
for the indemnifying party shall act as lead counsel in all matters pertaining
to such defense or settlement of such claim and the indemnifying party shall
only pay for such indemnified party's expenses for the period prior to the date
of the indemnifying party's participation in such defense. The failure to notify
an indemnifying party promptly of the commencement of any such action, if
prejudicial to his ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
8, but the omission so to notify the indemnifying party will not relieve him of
any liability which he may have to any indemnified party otherwise other than
under this Section 8.

                  Notwithstanding anything to the contrary herein, the
indemnifying party shall not be entitled to settle any claim, suit or proceeding
unless in connection with such settlement the indemnified party receives an
unconditional release with respect to the subject matter of such claim, suit or
proceeding and such settlement does not contain any admission of fault by the
indemnified party.

         10. LIQUIDATED DAMAGES. If (a) within six (6) months after the date of
the release of shares of Series B Preferred Stock to the Investors a
Registration Statement relating to the resale of such shares has not been
declared effective, the Company will pay to each Investor to compensate the
Investor for damages caused by such breach that are not readily ascertainable in
an amount equal to twenty-five percent of the value of the Registrable
Securities that the Investor is unable to resell as a result of such breach
(valued as of the date of the release of the Series B Preferred Stock to which
the Registrable Securities relate based on the five day average closing price of
the Common Stock of the Company on the American Stock Exchange (or other
principal market for such stock) through the date immediately prior to the
release date or, if there is no such market, by the Board in its reasonable
discretion). The obligation to make such payment shall not excuse the Company
from its ongoing obligation to register the resale of the Registrable Securities
thereafter and the Investor shall have all rights at law or equity with respect
to any subsequent breach by the Company of its obligations hereunder.

<PAGE>

         11. REPORTS UNDER THE EXCHANGE ACT. With a view to making available to
the Investors the benefits of Rule 144 and any other rule or regulation of the
SEC that may at any time permit the Investors to sell the Registrable Shares to
the public without registration, the Company agrees to use commercially
reasonable efforts: (i) to make and keep public information available, as those
terms are understood and defined in the General Instructions to Form S-3, or any
successor or substitute form, and in Rule 144, (ii) to file with the SEC in a
timely manner all reports and other documents required to be filed by an issuer
of securities registered under the Securities Act or the Exchange Act, (iii) as
long as any Investor owns any Warrants or Registrable Shares, to furnish in
writing upon such Investor's request a written statement by the Company that it
has complied with the reporting requirements of Rule 144 and of the Securities
Act and the Exchange Act, and to furnish to such Investor a copy of the most
recent annual or quarterly report of the Company, and such other reports and
documents so filed by the Company as may be reasonably requested in availing
such Investor of any rule or regulation of the SEC permitting the selling of any
Registrable Shares without registration and (iv) undertake any additional
actions reasonably necessary to maintain the availability of the Registration
Statement or the use of Rule 144.

         12. DEFERRAL AND LOCK-UP. Notwithstanding anything in this Agreement to
the contrary, if the Company shall furnish to the selling Investors a
certificate signed by the President or Chief Executive Officer of the Company
stating that the Board of Directors of the Company has made the good faith
determination (i) that continued use by the selling Investors of the
Registration Statement for purposes of effecting offers or sales of Registrable
Shares pursuant thereto would require, under the Securities Act, premature
disclosure in the Registration Statement (or the prospectus relating thereto) of
material, nonpublic information concerning the Company, its business or
prospects or any proposed material transaction involving the Company, (ii) that
such premature disclosure would be materially adverse to the Company, its
business or prospects or any such proposed material transaction or would make
the successful consummation by the Company of any such material transaction
significantly less likely and (iii) that it is therefore advisable to suspend
the use by the Investors of such Registration Statement (and the prospectus
relating thereto) for purposes of effecting offers or sales of Registrable
Shares pursuant thereto, then the right of the selling Investors to use the
Registration Statement (and the prospectus relating thereto) for purposes of
effecting offers or sales of Registrable Shares pursuant thereto shall be
suspended for a period (the "Suspension Period") of not more than 90 days after
delivery by the Company of the certificate referred to above in this Section 10.
During the Suspension Period, none of the Investors shall offer or sell any
Registrable Shares pursuant to or in reliance upon the Registration Statement
(or the prospectus relating thereto).

         13. TRANSFER OF REGISTRATION RIGHTS. Any Investor under this Agreement
may transfer or assign the Investors rights to any person provided such person
agrees to become a party to, and bound by, all of the terms and conditions of,
this Agreement by duly executing and delivering to the Company an Instrument of
Adherence in the form attached as Exhibit A hereto. None of the rights of any
Investor under this Agreement shall be transferred or assigned to any Person
that acquires Registrable Shares in the event that and to the extent that such
Person is eligible to resell such Registrable Shares pursuant to Rule 144(k) of
the Securities Act (or any successor or substitute rule) or may otherwise resell
such Registrable Shares pursuant to an exemption from the registration
provisions of the Securities Act.

<PAGE>

         14. ENTIRE AGREEMENT. This Agreement constitutes and contains the
entire agreement and understanding of the parties with respect to the subject
matter hereof, and it also supersedes any and all prior negotiations,
correspondence, agreements or understandings with respect to the subject matter
hereof.

         15. MISCELLANEOUS.

                  (c) This Agreement may not be amended, modified or terminated,
and no rights or provisions may be waived, except with the written consent of
the Majority Holders and the Company.

                  This Agreement shall be governed by and construed and enforced
in accordance with the laws of the State of New York, and shall be binding upon
and inure to the benefit of the parties hereto and their respective heirs,
personal representatives, successors or assigns, provided that the terms and
conditions of Section 11 hereof are satisfied. This Agreement shall also be
binding upon and inure to the benefit of any transferee of any of the
Registrable Shares provided that the terms and conditions of Section 11 hereof
are satisfied. Notwithstanding anything in this Agreement to the contrary, if at
any time any Investor shall cease to own any Registrable Shares, all of such
Investor's rights under this Agreement shall immediately terminate.

                  (1) Any notices, reports or other correspondence (hereinafter
collectively referred to as "correspondence") required or permitted to be given
hereunder shall be sent by courier (overnight or same day) or telecopy or
delivered by hand to the party to whom such correspondence is required or
permitted to be given hereunder. The date of giving any notice shall be the date
of its actual receipt.

                       All correspondence to the Company shall be addressed in
the manner set forth in the Subscription Agreement.

                       All correspondence to any Investor shall be sent to such
Investor at the address set forth in the Subscription Agreement.

                  Any entity may change the address to which correspondence to
it is to be addressed by notification as provided for herein.

                  The parties acknowledge and agree that in the event of any
breach of this Agreement, remedies at law may be inadequate, and each of the
parties hereto shall be entitled to seek specific performance of the obligations
of the other parties hereto and such appropriate injunctive relief as may be
granted by a court of competent jurisdiction.

                  This Agreement may be executed in a number of counterparts, an
of which together shall for all purposes constitute one Agreement, binding on
all the parties hereto notwithstanding that all such parties have not signed the
same counterpart.

<PAGE>

        [Intentionally Left Blank - Signatures follow on the next page.]

         IN WITNESS WHEREOF, the parties hereto have executed this Registration
   Rights Agreement as of the date and year first above written.

                                 ATC HEALTHCARE, INC.

                                 By:
                                    --------------------------------------------
                                        Andrew C. Reiben
                                        Senior Vice President/Chief Financial
                                         Officer

                                 INVESTORS:

                                 ------------------------------------
                                  STUART SAVITSKY

                                 ------------------------------------
                                 SHABSI SCHREIER

                                 ------------------------------------
                                  STEVEN WIENER

<PAGE>

                                    EXHIBIT A
                                    ---------

                             Instrument of Adherence
                             -----------------------

                  Reference is hereby made to that certain Registration Rights
Agreement, dated as of August 31, 2005 among ATC Healthcare, Inc., a Delaware
corporation (the "Company"), the Investors and the Investor Permitted
Transferees, as amended and in effect from time to time (the "Registration
Rights Agreement"). Capitalized terms used herein without definition shall have
the respective meanings ascribed thereto in the Registration Rights Agreement.

                  The undersigned, in order to become the owner or holder of
___________ shares of the 5% Convertible Series B Preferred Stock of the Company
and/or _______ shares of the Class A Common Stock of the Company, hereby agrees
that, from and after the date hereof, the undersigned has become a party to the
Registration Rights Agreement in the capacity of an Investor Permitted
Transferee, and is entitled to all of the benefits under, and is subject to all
of the obligations, restrictions and limitations set forth in, the Registration
Rights Agreement that are applicable to Investor Permitted Transferees. This
Instrument of Adherence shall take effect and shall become a part of the
Registration Rights Agreement immediately upon execution.

                  Executed as of the date set forth below.

                              Signature:
                                        ---------------------------------------

                              Print Name:
                                          -------------------------------------

Accepted:

ATC HEALTHCARE, INC.

By:
   -----------------------------------------

Name:
      --------------------------------------

Title:
       -------------------------------------

Date:
     ---------------------------------------Exhibit 4.3
-----------

BROKER'S NAME:
                -------------------------------------------------------

                IMPORTANT: PLEASE READ CAREFULLY BEFORE SIGNING.
               SIGNIFICANT REPRESENTATIONS ARE CALLED FOR HEREIN.

                             SUBSCRIPTION AGREEMENT
                                       and
                           LETTER OF INVESTMENT INTENT

David Savitsky
ATC Healthcare, Inc.
1983 Marcus Avenue
Lake Success, NY 11042

Gentlemen:

     The undersigned (the "Subscriber") hereby tenders this subscription for the
purchase  of  securities  (the  "Securities")  of  ATC  Healthcare,   Inc.  (the
"Company"),  consisting of units ("Units")  comprising secured convertible notes
("Notes")  and  common  stock  purchase  warrants  ("Warrants").  The  Units are
described  in the Summary of Terms  attached to this  Subscription  Agreement as
Exhibit A (the "Term Sheet"). The Subscriber understands that a subscription for
the Units may be  rejected  for any  reason  and  that,  in the event  that this
subscription  is  rejected,  the  funds  delivered  herewith  will  be  promptly
returned,  without interest thereon or deduction therefrom.  By execution below,
the  Subscriber  acknowledges  that the Company is relying upon the accuracy and
completeness  of the  representations  contained  herein in complying with their
obligations under applicable securities laws.

     1.   Subscription Commitment.  The Subscriber acknowledges that the minimum
subscription is $50,000.  The Subscriber  hereby  subscribes for the purchase of
the number of Securities  specified below and, as full payment therefor,  agrees
to pay by wire transfer to the account of the Company.

                                                     At $        per Unit for
         -------------------                             -------
         Number of Units                    an aggregate of $
                                                              ------------------

     The Subscriber  understands  that this  subscription  is not binding on the
Company until accepted by the Company,  which acceptance is at the discretion of
the  Company  and  is to  be  evidenced  by  the  Company's  execution  of  this
Subscription  Agreement where indicated.  If the  subscription is rejected,  the
Company  shall return to the  Subscriber,  without  interest or  deduction,  any
payment  tendered by the  Subscriber,  and the Company and the Subscriber  shall

<PAGE>

have no further obligation to each other hereunder. Unless and until rejected by
the Company,  this  subscription  shall be  irrevocable by the  Subscriber.  The
Subscriber  understands  that the Company may, in the event that the offering to
which the Term Sheet relates is oversubscribed,  reduce this subscription in any
amount and to any  extent,  whether or not pro rata  reductions  are made of any
other investor's subscription.

     2.   Representations  and  Warranties.  In order to induce  the  Company to
accept this subscription,  the Subscriber hereby represents and warrants to, and
covenants with, the Company as follows:

     (a)  The Subscriber has had the opportunity to review the Companies filings
with the Securities and Exchange Commission (the "SEC Filings"), including:

          (i)  The Company's  Annual Report on Form 10-K,  filed with the SEC on
               June 13, 2005, and as amended on July 29, 2005;

          (ii) The Company's Proxy Statement on Schedule 14A, filed with the SEC
               on June 28, 2005;

          (iii) The Company's Form 8-K filed with the SEC on September 7, 2005;

          (iv) The Company's Form 8-K filed with the SEC on July 20, 2005; and

          (v)  The Company's Form 8-K filed with the SEC on June 17, 2005.

The  Subscriber  has also been  given  access to full and  complete  information
regarding  the  Company  and  has  utilized  such  access  to  the  Subscriber's
satisfaction for the purpose of obtaining such information regarding the Company
as the Subscriber has reasonably requested;  and,  particularly,  the Subscriber
has been given  reasonable  opportunity to ask questions of, and receive answers
from,  representatives of the Company concerning the terms and conditions of the
offering of the  Securities  and to obtain any  additional  information,  to the
extent reasonably available;

     (b)  Except for the SEC Filings and the Term Sheet (together referred to as
the "Documents"), the Subscriber has not been furnished with any other materials
or literature  relating to the offer and sale of the  Securities;  except as set
forth in the Documents,  no  representations or warranties have been made to the
Subscriber  by the  Company,  any selling  agent of the  Company,  or any agent,
employee, or affiliate of the Company or such selling agent.

     (c)  The  Subscriber  believes  that an  investment  in the  securities  is
suitable for the Subscriber based upon the Subscriber  investment objectives and
financial  needs.  The  Subscriber  (i) has adequate means for providing for the
Subscriber's  current  financial needs and personal  contingencies;  (ii) has no
need for liquidity in this  investment;  (iii) at the present time, can afford a
complete loss of such investment;  and (iv) does not have an overall  commitment
to investments which are not readily marketable that is  disproportionate to the
Subscriber's net worth,  and the Subscriber's  investment in the Securities will
not cause such overall commitment to become excessive.

<PAGE>

     (d)  The  Subscriber,  in  reaching  a  decision  to  subscribe,  has  such
knowledge and  experience in financial and business  matters that the Subscriber
is capable of reading and interpreting  financial  statements and evaluating the
merits  and risk of an  investment  in the  Securities  and has the net worth to
undertake such risks.

     (e)  The  Subscriber  was not offered or sold the  Securities,  directly or
indirectly, by means of any form of general advertising or general solicitation,
including,  but not limited to, the following:  (1) any advertisement,  article,
notice or other communication  published in any newspaper,  magazine, or similar
medium of or broadcast over  television or radio; or (2) to the knowledge of the
undersigned,  any seminar or meeting  whose  attendees  had been  invited by any
general solicitation or general advertising.

     (f)  The  Subscriber  has  obtained,  to the  extent the  Subscriber  deems
necessary, the Subscriber's own personal professional advice with respect to the
risks inherent in the investment in the  securities,  and the  suitability of an
investment in the Securities in light of the  Subscriber's  financial  condition
and investment needs;

     (g)  The  Subscriber  recognizes  that  the  Securities  as  an  investment
involves a high degree of risk.

     (h)  The  information  contained in this  agreement  is true,  complete and
correct  in  all  material  respects  as of  the  date  hereof;  the  Subscriber
understands  that  the  Company's  determination  that  the  exemption  from the
registration  provisions of the  Securities Act of 1933, as amended (the "Act"),
which is based upon non-public offerings and applicable to the offer and sale of
the Securities,  is based, in part, upon the  representations,  warranties,  and
agreements  made by the Subscriber  herein;  and the Subscriber  consents to the
disclosure of any such information,  and any other information  furnished to the
Company, to any governmental authority, self-regulatory organization, or, to the
extent required by law, to any other person.

     (i)  The  Subscriber  realizes that (i) the purchase of the Securities is a
long-term  investment;  (ii)  the  purchaser  of the  Securities  must  bear the
economic  risk of  investment  for an  indefinite  period  of time  because  the
Securities  have not been  registered  under the Securities Act of 1933 or under
the securities laws of any state and, therefore, the Securities cannot be resold
unless they are subsequently  registered under said laws or exemptions from such
registrations  are available;  (iii) there is presently no public market for the
Securities  and the  Subscriber  may be unable  to  liquidate  the  Subscriber's
investment in the event of an emergency,  or pledge the Securities as collateral
for a loan; and (iv) the transferability of the Securities is restricted and (A)
requires conformity with the restrictions contained in paragraph 2 below and (B)
legends  will  be  placed  on the  certificate(s)  representing  the  Securities
referring to the applicable restrictions on transferability; and

<PAGE>

     (j)  The  Subscriber  certifies,  under  penalties  of  perjury,  that  the
Subscriber  is NOT  subject  to the  backup  withholding  provisions  of Section
3406(a)(i)(C) of the Internal Revenue Code.

     (k)  Stop transfer  instructions will be placed with the transfer agent for
the Securities,  and a legend may be placed on any certificate  representing the
Securities substantially to the following effect:

     THIS  SECURITY HAS NOT BEEN  REGISTERED  WITH THE  SECURITIES  AND EXCHANGE
     COMMISSION  UNDER THE  SECURITIES  ACT OF 1933, AS AMENDED (THE "ACT"),  IN
     RELIANCE  UPON THE  EXEMPTIONS  FROM  REGISTRATION  PROVIDED IN THE ACT AND
     REGULATION  D UNDER THE ACT. AS SUCH,  THE  PURCHASE OF THIS  SECURITY  WAS
     NECESSARILY  WITH  THE  INTENT  OF  INVESTMENT  AND  NOT  WITH A  VIEW  FOR
     DISTRIBUTION.  THEREFORE,  ANY SUBSEQUENT  TRANSFER OF THIS SECURITY OR ANY
     INTEREST  THEREIN WILL BE UNLAWFUL UNLESS IT IS REGISTERED UNDER THE ACT OR
     UNLESS AN EXEMPTION  FROM  REGISTRATION  IS AVAILABLE.  FURTHERMORE,  IT IS
     UNLAWFUL TO  CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY OR ANY INTEREST
     THEREIN,  WITHOUT THE OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT THE
     PROPOSED TRANSFER OR SALE DOES NOT AFFECT THE EXEMPTIONS RELIED UPON BY THE
     COMPANY IN ORIGINALLY  DISTRIBUTING  THE SECURITY AND THAT  REGISTRATION IS
     NOT REQUIRED.

     (l)  THE  SUBSCRIBER  UNDERSTANDS  THAT  BATHGATE  CAPITAL  PARTNERS LLC IS
ACTING  AS A FINDER  ON THIS  TRANSACTION,  AND THE  COMPANY  WILL PAY  BATHGATE
CAPITAL  PARTNERS A FINDERS FEE OF A CASH  PAYMENT OF SEVEN  PERCENT  (7%) OF MY
INVESTMENT  AND  WARRANTS  EQUAL  TO EIGHT  PERCENT  (8%) OF MY  INVESTMENT,  AS
DESCRIBED IN THE DOCUMENTS.  THE  SUBSCRIBER  FURHER  UNDERSTANDS  THAT BATHGATE
CAPITAL  PARTNERS HAS DONE ONLY A LIMITED AMOUNT OF DUE DILIGENCE ON THE COMPANY
AND THE  INVESTMENT,  AND  REPRESENTS  TO  BATHGATE  CAPITAL  PARTNERS  THAT THE
SUBSCRIBER  IS NOT RELYING ON BATHGATE  CAPITAL  PARTNERS  FOR  PERFORMING  SUCH
INVESTIGATIONS.

3.   Restricted  Nature of the  Securities.  The Subscriber has been advised and
understands  that  (a)  the  Securities  have  not  been  registered  under  the
Securities  Act of 1933  or  applicable  state  securities  laws  and  that  the
securities are being offered and sold pursuant to exemptions from such laws; (b)
the  Documents  may not have  been  filed  with or  reviewed  by  certain  state
securities  administrators  because of the limited  nature of the offering;  (c)
except as provided in paragraph 10 hereunder, the Company is under no obligation
to register the  Securities  under the Act or any state  securities  laws, or to
take any  action to make any  exemption  from any such  registration  provisions

<PAGE>

available.  The Subscriber represents and warrants that the Securities are being
purchased for the Subscriber's own account and for investment purposes only, and
without the intention of reselling or  redistributing  the same;  the Subscriber
has made no  agreement  with others  regarding  any of the  Securities;  and the
Subscriber's  financial  condition is such that it is not likely that it will be
necessary to dispose of any of such  Securities in the foreseeable  future.  The
Subscriber is aware that, in the view of the Securities and Exchange Commission,
a  purchase  of such  securities  with an  intent  to  resell  by  reason of any
foreseeable  specific  contingency or anticipated change in market value, or any
change in the  condition of the Company,  or in connection  with a  contemplated
liquidation  settlement  of any  loan  obtained  for  the  acquisition  of  such
securities and for which such securities were pledged, would represent an intent
inconsistent with the  representations  set forth above. The Subscriber  further
represents  and  agrees  that if,  contrary  to the  foregoing  intentions,  the
Subscriber  should later desire to dispose of or transfer any of such securities
in any  manner,  the  Subscriber  shall  not do so  unless  and  until  (i) said
Securities  shall have first been  registered  under the Act and all  applicable
securities  laws;  or (ii) the  Subscriber  shall  have first  delivered  to the
Company a written  notice  declaring  such  holder's  intention  to effect  such
transfer and describe in sufficient  detail the manner and  circumstances of the
proposed transfer, which notice shall be accompanied either by a written opinion
of legal  counsel who shall be  reasonably  satisfactory  to the Company,  which
opinion shall be addressed to the Company and  reasonably  satisfactory  in form
and substance to the Company's counsel,  to the effect that the proposed sale or
transfer  is  exempt  from  the  registration  provisions  of the  Act  and  all
applicable state securities laws, or by a "no action" letter from the Securities
and  Exchange  Commission  to the effect  that the  transfer  of the  Securities
without  registration  will not  result  in  recommendation  by the staff of the
Commission that action be taken with respect thereto.

     4.   Residence.  The Subscriber represents and warrants that the Subscriber
is a bona fide  resident of, is domiciled in and received the offer and made the
decision  to invest in the  Securities  in the state set forth on the  signature
page hereof,  and the  Securities  are being  purchased by the Subscriber in the
Subscriber's name solely for the Subscriber's own beneficial interest and not as
nominee  for, or on behalf of, or for the  beneficial  interest  of, or with the
intention to transfer to, any other  person,  trust or  organization,  except as
specifically set forth in paragraph 16 of this Subscription Agreement and Letter
of Investment Intent.

     5.   Investor  Qualification.  The Subscriber  represents and warrants that
the  Subscriber or the purchaser of the  Securities  named in paragraph 16 comes
within at least one category marked below,  and that for any category marked the
Subscriber  has  truthfully set forth the factual basis or reason the Subscriber
comes within that category.  ALL  INFORMATION IN RESPONSE TO THIS PARAGRAPH WILL
BE KEPT STRICTLY  CONFIDENTIAL.  The Subscriber agrees to furnish any additional
information which the Company deems necessary in order to verify the answers set
forth below.

Category I          The   Subscriber  is  an  individual   (not  a  partnership,
             ----   corporation,  etc.) whose individual net worth, or joint net
                    worth  with  the  Subscriber's  spouse,   presently  exceeds
                    $1,000,000.

<PAGE>

                    Explanation.  In calculation of net worth the Subscriber may
                    include  equity  in  personal   property  and  real  estate,
                    including the Subscriber's principal residence,  cash, short
                    term investments,  stocks and securities. Equity in personal
                    property and real estate  should be based on the fair market
                    value of such property less debt secured by such property.

Category II         The   Subscriber  is  an  individual   (not  a  partnership,
             ----   corporation,  etc.)  who had an  individual  net  income  in
                    excess of $200,000  in each of the last two years,  or joint
                    income with his/her  spouse in excess of $300,000 in each of
                    the last two  years,  and has a  reasonable  expectation  of
                    reaching the same income level in the current year.

Category III        The  Subscriber  is an executive  officer or director of the
             ----   Company.

Category IV         The  Subscriber  is a  bank;  savings  and  loan;  insurance
             ----   company;  registered broker or dealer; registered investment
                    company;  registered business development company;  licensed
                    small  business  investment  company  ("SBIC");  or employee
                    benefit  plan  within the  meaning of Title I of ERISA whose
                    plan fiduciary is either a bank, savings and loan, insurance
                    company or  registered  investment  advisor  or whose  total
                    assets  exceed  $5,000,000;   or  a  self-directed  employee
                    benefit  plan  with  investment  decisions  made  solely  by
                    persons that are accredited investors.

                    ------------------------------------------------------------

                    ------------------------------------------------------------
                             (describe entity)

Category V          The Subscriber is a private business  development company as
             ----   defined in Section 202(a)(22) of the Investment Advisers Act
                    of 1940.

                    ------------------------------------------------------------

                    ------------------------------------------------------------
                             (describe entity)

Category VI         The  Subscriber  is an entity with total assets in excess of
             ----   $5,000,000 which was not formed for the purpose of investing
                    in the Units and which is one of the following:

                             a corporation; or
                    ----

                             a partnership; or
                    ----

<PAGE>

                             a business trust; or
                    ----

                             a tax-exempt  organization described in Section
                    ----     501(c)(3) of the Internal Revenue Code of 1986, as
                             amended.

                    ------------------------------------------------------------

                    ------------------------------------------------------------
                             (describe entity)

Category VII        The Subscriber is a trustee for a trust that is revocable by
             ----   the grantor at any time  (including  an IRA) and the grantor
                    qualifies  under either  Category I or Category II above.  A
                    copy of the  declaration  of trust or trust  agreement and a
                    representation  as to the net worth or income of the grantor
                    is enclosed.

Category VIII       The  Subscriber  is an entity all the equity owners of which
             ----   are "accredited  investors"  within one or more of the above
                    categories,  other  than  Category  IV or  Category  V.  [If
                    relying  upon this  category  alone,  each equity owner must
                    complete a separate copy of this Agreement.]

                    ------------------------------------------------------------

                    ------------------------------------------------------------
                             (describe entity)

Category IX         The  Subscriber  is a trust with  total  assets in excess of
             ----   $5,000,000, not formed for the specific purpose of acquiring
                    the  Securities,  whose purchase is directed by a person who
                    has such  knowledge and experience in financial and business
                    matters  that he is  capable  of  evaluating  the merits and
                    risks of the prospective investment.

     6.   In the registration  statement  referred to in paragraph 11 below, the
Company needs to disclose the number of shares the  Subscriber  owns in addition
to those being purchased in this offering.  Does the Subscriber beneficially own
shares of common stock of the Company or securities  convertible  into shares of
common stock of the Company prior to this subscription?

                    Yes              No
                       ---------      ----------

If so, state the number of shares  common stock of the Company you  beneficially
own and the number of shares of common  stock into which any other  security you
hold  could be  converted.  If you are  uncertain  about the number of shares of
common stock into which any other  security you hold could be  converted,  state
the name of the  convertible  security  and the  number of  shares or  principal
amount, as applicable.

<PAGE>

If this information changes, please notify the Company.

Please note that a "beneficial  owner" of shares means any person who,  directly
or indirectly, through any contract, arrangement, understanding, relationship or
otherwise has or shares voting power  (including the power to vote, or to direct
the voting of, such shares),  and/or  investment  power  (including the power to
dispose of, or to direct the disposition of, such shares).  Include shares owned
by your spouse or relatives and over which you have or share  "voting  power" or
"investment  power"  or  both.  Please  note  that  the  same  security  may  be
beneficially  owned by more than one person. In the case of options or warrants,
shares  which  will be  issuable  upon the  exercise  of same are  deemed  to be
beneficially  owned by you if you may exercise  the option or warrant  within 60
days

     7.   Additional   Representations.   The  undersigned,  if  other  than  an
individual, makes the following additional representations:

          (a)  The  Subscriber  was not  organized  for the specific  purpose of
acquiring the Securities; and

          (b)  This  Subscription  Agreement and Letter of Investment Intent has
been duly authorized by all necessary action on the part of the Subscriber,  has
been duly executed by an authorized officer or representative of the Subscriber,
and is a legal,  valid and binding  obligation of the Subscriber  enforceable in
accordance with its terms.

     8.   Sophistication. The Subscriber further represents and warrants that he
has such knowledge and experience in financial and business  matters so as to be
capable of evaluating  the merits and risks of an  investment in the  Securities
and protecting the Subscriber's own interests in this transaction,  and does not
desire to utilize the services of any other person in connection with evaluating
such merits and risks.

     9.   Reliance on  Representations.  The Subscriber  understands the meaning
and  legal  consequences  of  the   representations,   warranties,   agreements,
covenants, and confirmations set out above and agrees that the subscription made
hereby may be accepted in reliance  thereon.  The Subscriber agrees to indemnify
and hold harmless the Company and any selling agent  (including for this purpose
their employees,  and each person who controls either of them within the meaning
of Section 20 of the  Securities  Exchange  Act of 1934,  as  amended)  from and
against any and all loss,  damage,  liability or expense,  including  reasonable
costs and attorney's fees and  disbursements,  which the Company,  or such other
persons may incur by reason of, or in connection  with,  any  representation  or
warranty made herein not having been true when made, any misrepresentation  made
by the  Subscriber  or any  failure  by the  Subscriber  to  fulfill  any of the
covenants or agreements set forth herein,  in the Purchaser  Questionnaire or in
any other document provided by the Subscriber to the Company.

<PAGE>

     10.  Transferability and Assignability. Neither this Subscription Agreement
nor any of the rights of the Subscriber hereunder may be transferred or assigned
by the  Subscriber.  The  Subscriber  agrees that the Subscriber may not cancel,
terminate,  or  revoke  this  Subscription  Agreement  or any  agreement  of the
Subscriber made hereunder (except as otherwise specifically provided herein) and
that this  Subscription  Agreement  shall survive the death or disability of the
Subscriber  and  shall  be  binding  upon  the  Subscriber's  heirs,  executors,
administrators, successors, and assigns.

     11.  Registration  Rights.  The Company shall include the Shares underlying
the Notes in a registration  statement to be filed with the SEC no later than 10
business days after the termination of the offering, and to use its best efforts
to cause the registration statement to be declared effective as soon as possible
thereafter.  These rights are more fully  described in the  Registration  Rights
Agreement  that is attached  to this  Subscription  Agreement  as Exhibit B (the
"Registration Rights Agreement").  By executing this Subscription Agreement, the
Subscriber agrees to the terms of the Registration Rights Agreement.

     12.  NASD  Membership  -  Individual  Investor.  Are  you a  member  of the
NASD,(1) a person  associated with a member(2) of the NASD, or an affiliate of a
member?

                    Yes              No
                       ---------      ----------

     If "Yes," please list any members of the NASD with whom you are  associated
or affiliated.

--------------------------------------------------------------------------------

     NASD Membership - Corporate Investor. If you are a corporation,  are any of
your  officers,  directors  or 5%  shareholders  a member of the NASD,  a person
associated with a member of the NASD, or an affiliate of a member?

                    Yes              No
                       ---------      ----------

     If "Yes," please list the name of the  respective  officer,  director or 5%
shareholder  and any  members  of the NASD  with  whom  they are  associated  or
affiliated.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

     13.  Survival.  The  representations  and  warranties of the Subscriber set
forth herein shall survive the sale of the Units  pursuant to this  Subscription
Agreement.

     14.  Notices.  All notices or other  communications  hereunder  shall be in
writing and shall be deemed to have been duly given if delivered  personally  or
mailed by  certified or  registered  mail,  return  receipt  requested,  postage
prepaid, as follows:  if to the Subscriber,  to the address set forth below; and
if to the Company to the address at the  beginning  of this  letter,  or to such

<PAGE>

other  address as the Company or the  Subscriber  shall have  designated  to the
other by like notice.

     15.  (Applicable  to  FLORIDA  residents  only.)  The  Subscriber  has been
informed and recognizes  that (a) the Units have not been  registered  under the
Florida  Securities  Act,  and (b)  under  Section  517.061(12)  of the  Florida
Securities Act, the Subscriber may void the sale of any Securities  within three
(3) days after the tender of this  Subscription  Agreement and payment hereunder
to the Company.

     16.  Counterparts.   This   Agreement  may  be  executed  in  one  or  more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same document.

     17.  Title. Manner in Which Title is To Be Held.

          Place an "X" in one space below:

          (a)      Individual Ownership
              ---
          (b)      Community Property
              ---
          (c)      Joint Tenant with Right of Survivorship (both parties must
              ---  sign)
          (d)      Partnership
              ---
          (e)      Tenants in Common
              ---
          (f)      Corporation
              ---
          (g)      Trust
              ---
          (h)      Other (Describe):
              ---

          ----------------------------------------------------------------------

          ----------------------------------------------------------------------

          ----------------------------------------------------------------------

          Please print above the exact name(s) in which the Securities are to be
held.

     18.  State of  Residence.  My state of  residence  and the state in which I
received the offer to invest and made the  decision to invest in the  Securities
is .

     19.  Date of Birth. My date of birth is:

IN NO EVENT WILL THE COMPANY, THE PLACEMENT AGENT, OR ANY OF THEIR AFFILIATES OR
THE PROFESSIONAL ADVISORS ENGAGED BY THEM BE LIABLE IF FOR ANY REASON RESULTS OF
OPERATIONS OF THE COMPANY ARE NOT AS PROJECTED IN THE DOCUMENTS.  INVESTORS MUST
LOOK  SOLELY  TO,  AND RELY ON,  THEIR  OWN  ADVISORS  WITH  RESPECT  TO THE TAX
CONSEQUENCES OF INVESTING IN THE SECURITIES.

<PAGE>

                           SIGNATURE PAGE ON NEXT PAGE

<PAGE>

                                   SIGNATURES

The Subscriber hereby represents he has read this entire Subscription Agreement.

                                               Dated:
                                                     ---------------------------

                                   INDIVIDUAL

                                               Address to Which Correspondence
                                               Should be Directed

-------------------------------------    ---------------------------------------
Signature (Individual)
                                         ---------------------------------------

-------------------------------------    ---------------------------------------
Signature (All record holders should     City, State and Zip Code
sign)

-------------------------------------    ---------------------------------------
Name(s) Typed or Printed                 Tax Identification or Social Security
                                         Number

                                         (     )
-------------------------------------    ---------------------------------------
                                         Telephone Number

<PAGE>

                CORPORATION, PARTNERSHIP, TRUST, OR OTHER ENTITY

                                               Address to Which Correspondence
                                               Should be Directed

-------------------------------------    ---------------------------------------
Name of Entity
                                         ---------------------------------------

By:
   ----------------------------------    ---------------------------------------
       *Signature                        City, State and Zip Code

Its:
   ----------------------------------    ---------------------------------------
         Title                           Tax Identification or Social Security
                                         Number

                                         (     )
-------------------------------------    ---------------------------------------
Name Typed or Printed                           Telephone Number

*If  Securities  are being  subscribed  for by an  entity,  the  Certificate  of
Signatory must also be completed.

                            CERTIFICATE OF SIGNATORY

      To be completed if Securities are being subscribed for by an entity.

         I,                          , am the                             of
            -------------------------        ---------------------------

                                                                 (the "Entity").
-----------------------------------------------------------------

     I certify that I am empowered and duly  authorized by the Entity to execute
and carry out the terms of the  Subscription  Agreement and Letter of Investment
Intent  and  to  purchase  and  hold  the  Securities,   and  certify  that  the
Subscription Agreement and Letter of Investment Intent has been duly and validly
executed on behalf of the Entity and constitutes a legal and binding  obligation
of the Entity.

<PAGE>

     IN WITNESS WHEREOF,  I have hereto set may hand this        day of        ,
2005.                                                     ------        -------

                                                    ----------------------------
                                                        Signature

<PAGE>

                                   ACCEPTANCE

This Subscription Agreement is accepted as of                            , 2005.
                                              ---------------------------

                                             ATC HEALTHCARE, INC..

                                             By:
                                                 -------------------------------
                                                      Authorized Officer

                                             Date:
                                                   -----------------------------

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