Document:

Unassociated Document

    

    
 

    Letter
      of Engagement

    FlexSCAN,
      INC. 

    April
      26, 2006

    

    The
      following sets forth the agreement for the engagement of Trilogy Capital
      Partners, Inc. (“Trilogy”)
      by
      FlexSCAN, Inc. (“FXSC”
or
      the
“Company”):

    

    
      	
              Term
                and Termination

            	
              Twelve months,
                commencing as of the date set forth above (the “Initial
                Term”),
                and terminable thereafter by either party upon 30 days’ prior written
                notice. 

            
	 	 
	
              Objective

            	
              The
                development and implementation of a proactive marketing program to
                increase the awareness of FXSC and generate a significant increase
                in
                liquidity and market capitalization. In addition, upon request, Trilogy
                will advise FXSC in business development and strategic advisory
                services.

            
	 	 
	
              The
                Program

            	
              Trilogy
                will structure and implement a marketing program designed to create
                extensive financial market and investor awareness for FXSC to drive
                long-term shareholder support. The core drivers of the program will
                be to
                inform potential institutional and retail investors of FXSC’s business and
                stimulate interest in investment in the Company’s stock through a
                proactive sales and marketing program emphasizing technology-driven
                communications, and leveraging FXSC’s image to attract additional long
                term investors and to create additional opportunities in M&A and
                Business Development. As share price is affected by various factors,
                Trilogy can give no assurance that the marketing program will result
                in an
                increase in FXSC’s stock price. 

               

              Trilogy
                understands that during any period in which the Company is in
                “registration” for a public offering of securities under the Securities
                Act of 1933, and during the distribution of such securities, the
                Company’s
                investor relations and marketing efforts will be severely limited.
                However, it will be the responsibility of the Company (with the advice
                of
                its securities counsel) to determine what investor relations and
                financial
                marketing efforts are permissible and non-permissible during such
                periods,
                and Trilogy will follow the direction of the Company and its securities
                counsel.

            

    

     

    
      
         

      

      
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              Responsibilities

            	
              Trilogy
                will structure and implement the program described above in accordance
                with a marketing plan provided to FXSC. Trilogy will work in conjunction
                with the Company’s management, securities counsel, investment bankers,
                auditors and marketing director, and under supervision of executive
                management. Trilogy will designate a principal account representative
                to
                FXSC responsible for this engagement. The content is as follows:
                

               

              ·  Campaign
                Development and Execution 

              ·  Press
                Announcements: drafting, approval and distribution

              ·  Database
                Development and Management

              ·  Image
                Analysis: recommendations and implementation 

              ·  Messaging:
                institutional and retail

              ·  Online
                presentations: drafting and production responsibilities 

              ·  Website
                Overhaul - installation and maintenance of auto IR program 

              ·  Email
                messaging: targets: Retail and Institutional/Other databases

              ·  Media,
                including Interactives and PowerPoints

              ·  Direct
                Mail: shareholder, media, FXSC relationship universe

              ·  Public
                Relations

              ·  Capital
                Conferences

               

              Trilogy
                will not publish or publicly release any press release or other document
                (“IR
                Documents”)
                regarding the Company that has not been approved in writing by the
                Company. The Company assumes responsibility for the accuracy and
                completeness of all IR Documents and the compliance of such Documents
                with
                applicable laws, rules and regulations. The Company agrees that Trilogy
                has no obligation or duty to and does not guaranty the accuracy or
                completeness of the IR Documents.

            
	 	 
	
              Fees

            	
              $12,500
                per month, with first payment due on execution, payable by wire transfer
                of funds to the account designated by Trilogy.

            
	 	 
	
              Equity

              Compensation

            	
              FXSC
                has concurrently herewith issued to Trilogy 3,000,000 Warrants. Each
                Warrant represents the right to purchase one share of Common Stock
                for
                $0.35 per share at any time through the third year following issuance.
                The
                Company agrees to file a Registration Statement with the Securities
                and
                Exchange Commission registering the resale of the shares underlying
                the
                Warrants no later than forty-five (45) days from the date of this
                Agreement. 

            

    

     

    
      
         

      

      
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              Marketing
                Budget

            	
              To
                support the financial marketing program, FXSC acknowledges that it
                will
                incur certain third party marketing costs. Trilogy will not incur
                these
                costs on behalf of the Company except with the approval of the Company
                or
                pursuant to a budget approved by the Company (which budget shall
                not be
                less than $200,000). The Company shall have no obligation to reimburse
                Trilogy for any third party marketing cost that exceeds the approved
                budget or is otherwise not approved by the Company. The Company
                understands that prompt payment of these costs is vital to the on-going
                investor relations program, and therefore shall pay these costs promptly
                upon invoice, to Trilogy (to enable Trilogy to promptly reimburse
                these
                third parties). The Company shall indemnify and hold Trilogy harmless
                from
                any losses, claims, costs, expenses, liabilities and damages which
                Trilogy
                becomes subject to arising from the failure to timely pay these third
                party marketing costs.

            
	 	 
	
              Indemnification

            	
              The
                Company agrees to provide the indemnification set forth in “Exhibit A”
                attached hereto. 

            
	 	 
	
              Corporate
                Obligations

            	
              The
                obligations of Trilogy under this Agreement are solely corporate
                obligations, and no officer, director, employee, agent, shareholder
                or
                controlling person of Trilogy shall be subject to any personal liability
                whatsoever to any person, nor will any claim be asserted by or on
                behalf
                of the Company, with respect to breach of the terms of this Agreement.
                This provision does not limit or restrict in any way claims with
                respect
                to any matters other than breach of the terms of this
                Agreement.

            
	 	 
	
              Additional
                Services

            	
              If
                Trilogy is called upon to render services directly or indirectly
                relating
                to the subject matter of this Agreement, beyond the services contemplated
                above (including, but not limited to, production of documents, answering
                interrogatories, giving depositions, giving expert or other testimony,
                whether by agreement, subpoena or otherwise), the Company shall pay
                to
                Trilogy a reasonable hourly rate for the persons involved for the
                time
                expended in rendering such services, including, but not limited to,
                time
                for meetings, conferences, preparation and travel, and all related
                costs
                and expenses and the reasonable legal fees and expenses of Trilogy’s
                counsel. Trilogy will provide the Company written notice of any additional
                services potentially triggering additional fees and/or
                charges.

            

    

     

    
      
         

      

      
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              Survival
                of Certain Provisions

            	
              The
                Sections entitled “Indemnification” (including “Exhibit A”), “Corporate
                Obligations” and “Additional Services” shall survive any termination of
                this Agreement and Trilogy’s engagement pursuant to this Agreement. In
                addition, termination shall not affect any right of Trilogy’s to
                compensation accrued through the date of termination and for reimbursement
                of expenses (including third party marketing costs). Any termination
                of
                this Agreement by the Company prior to the end of the Initial Term,
                other
                than in the event of a material breach of the Agreement by Trilogy
                which
                Trilogy has not cured or corrected within 15 days of written notice
                of the
                breach, or any termination by Trilogy as a result of non-payment
                or other
                material breach by the Company (including the failure to pay third-party
                marketing costs), shall not terminate Trilogy’s right to the fees through
                the entire Initial Term (as Trilogy’s time and commitment are expected to
                be greater in the first part of its engagement).

            
	 	 
	
              Services/Costs

            	
              The
                compensation paid to Trilogy under this Agreement will cover all
                costs for
                Trilogy personnel. Travel costs for Trilogy personnel, in addition
                to
                certain third-party costs, will be borne by the Company. Trilogy
                will
                provide reasonable documentation to support such reimbursement claims.
                Trilogy will not incur, individually or in the aggregate, any reimbursable
                cost of $500 or more without the written approval of the Company.
                These
                costs do not included third-party marketing costs under “Marketing
                Budget.”

            
	 	 
	
              Attorneys’
                Fees

            	
              If
                any action or proceeding is brought to enforce or interpret any provision
                of this Agreement, the prevailing party shall be entitled to recover
                as an
                element of its costs, and not its damages, reasonable attorneys’ fees to
                be fixed by the court. 

            
	 	 
	
              Governing
                Law

            	
              California,
                without giving effect to the principles of conflicts of law
                thereof.

            

    

    

    
      
        

      

    

    

    [Signatures
      on following page]

     

    
      
         

      

      
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    AGREED
      AND ACCEPTED:

     

    
      	 	FlexSCAN,
              Inc. 	 	Trilogy Capital Partners,
              Inc. 
	 	 	 	 
	
              By 

            	/s/
              Thomas
              Banks                 
              	
              By 

            	/s/
              Paul
              Karon                    
              
	 	Thomas Banks	 	Paul Karon
	 	Chief
              Executive Officer	 	President

    

     

     

    
      
         

      

      
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    EXHIBIT
      A

    

    Indemnification
      Provisions

    

    

    FlexSCAN,
      Inc. (the “Company”)
      unconditionally, absolutely and irrevocably agrees to and shall indemnify and
      hold harmless Trilogy Capital Partners, Inc. (“Trilogy”)
      and
      its past, present and future directors, officers, affiliates, counsel,
      shareholders, employees, agents, representatives, contractors, successors and
      assigns (Trilogy and such persons are collectively referred to as the
“Indemnified
      Persons”)
      from
      and against any and all losses, claims, costs, expenses, liabilities and damages
      (or actions in respect thereof) arising out of or related to this Agreement,
      and
      any actions taken or omitted to be taken by an Indemnified Party in connection
      with this Agreement (“Indemnified
      Claim”).
      Without limiting the generality of the foregoing, such indemnification shall
      cover losses, claims, costs, expenses, liabilities and damages imposed on or
      incurred by the Indemnified Persons, directly or indirectly, relating to,
      resulting from, or arising out of any misstatement of fact or omission of fact,
      or any inaccuracy in any information provided or approved by the Company in
      connection with the engagement, including information in any SEC filing, press
      release, website, marketing material or other document, whether or not the
      Indemnified Persons relied thereon or had knowledge thereof, claims of third
      parties providing marketing services to the Company. In addition, the Company
      agrees to reimburse the Indemnified Persons for legal or other expenses
      reasonably incurred by them in respect of each Indemnified Claim at the time
      such expenses are incurred. Notwithstanding the foregoing, the Company shall
      not
      be obligated under the foregoing for any loss, claim, liability or damage that
      is finally determined by a court with proper jurisdiction to have resulted
      primarily from the willful misconduct or bad faith of the Indemnified Person.
      

     

    

    
      
         

      

      
        6Exhibit
      10.1

    

    SECURITIES
      PURCHASE AGREEMENT

    

    THIS
      SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made as of the 6th day of
      June, 2006 by and among North American Scientific, Inc. (the “Company”), a
      Delaware corporation, with its principal offices at 20200 Sunburst Street,
      Chatsworth, California 91311, and the purchasers whose names and addresses
      are
      set forth on the signature pages hereto (the “Purchasers”). 

    

    IN
      CONSIDERATION of the mutual covenants contained in this Agreement, and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Company and the Purchasers hereby agree as follows:

     

    
      
        Section
          1. Purchase
          and Sale of Securities.

      

    

    

    Subject
      to the terms and conditions of this Agreement, on the Closing Date (as defined
      herein), each Purchaser agrees to purchase severally and not jointly and the
      Company agrees to issue and sell to such Purchaser severally and not jointly
      (i)
      that number of whole shares (the “Shares”) of the Company’s common stock, $0.01
      par value, (the “Common Stock”) and (ii) warrants to purchase shares of Common
      Stock (the “Warrants,” together with the Shares, the “Securities”), shown below
      such Purchaser’s name on the signature pages hereto at a purchase price that is
      equal to $1.9525 per Security, of which $0.0625 is allocated as consideration
      for the Warrants.

     

    
      
        Section
          2. The
          Closing.

      

    

    

    2.1 The
      Closing.

    

    (a) The
      purchase and sale of the Securities upon the terms and conditions hereof will
      take place at a closing (the “Closing”) to be held at the offices of Latham
& Watkins LLP, 12636 High Bluff Drive, Ste. 400, San Diego, CA 92130, or
      such other location as the parties may agree, on the date hereof at such time
      as
      shall be agreed upon by the Company and the Purchasers (the “Closing Date”).

     

    (b)  The
      Company shall provide wire transfer instructions for the payment of the Purchase
      Price (as defined below) prior to the Closing.

     

    (c)  At
      the
      Closing, the Company and each Purchaser shall satisfy all of the conditions
      set
      forth in Sections 2.2(a) and (b), respectively.

     

    2.2 Conditions
      to Closing.
      The
      Company’s obligation to complete the purchase and sale of the Securities and
      deliver such stock certificate(s) and warrant certificates to each Purchaser
      is
      subject to:

     

    (i) receipt
      by the Company of immediately available funds in the full amount of the purchase
      price for the Securities being purchased hereunder as set forth below such
      Purchaser’s name on such Purchaser’s signature page hereto (the “Purchase
      Price”), in accordance with the wire transfer instructions delivered by the
      Company pursuant to Section 2.1(b);

     

    
      
        
        

      

      
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    (ii) the
      accuracy in all material respects of the representations and warranties made
      by
      such Purchaser in Section 4 below as of the Closing Date and the fulfillment
      in
      all material respects of those undertakings of such Purchaser in this Agreement
      to be fulfilled on or prior to the Closing Date;
      

    

    (iii) confirmation
      that the Shares and the Warrant Shares have been approved for quotation on
      the
      Nasdaq National Market; and

    

    (iv) the
      aggregate Purchase Price to be paid by the Purchasers for the Securities at
      the
      Closing shall be greater than or equal to $24,000,001.

     

    (b) Each
      Purchaser’s obligation to complete the purchase and sale of the Securities is
      subject to: 

     

    (i) the
      accuracy in all material respects of the representations and warranties made
      by
      the Company in Section 3 below as of the Closing Date and the fulfillment in
      all
      material respects of those undertakings of the Company in this Agreement to
      be
      fulfilled on or prior to the Closing Date; 

     

    (ii) confirmation
      that the Shares and the Warrant Shares have been approved for quotation on
      the
      Nasdaq National Market;

     

    (iii) delivery
      by the Company to such Purchaser of an opinion, dated as of the Closing Date,
      from Seyfarth Shaw LLP, counsel to the Company, in the form attached hereto
      as
      Exhibit A; 

    

    (iv) delivery
      by the Company to such Purchaser of an opinion related to certain intellectual
      property matters, dated as of the Closing Date, from McDermott Will & Emery
      LLP, counsel to the Company, in the form attached hereto as Exhibit
      B;

    

    (v) delivery
      by the Company to such Purchaser of an opinion related to certain regulatory,
      litigation and intellectual property matters, dated as of the Closing Date,
      from
      David King, Vice President, General Counsel to the Company, in the form attached
      hereto as Exhibit C; 

     

    (vi) the
      Company’s delivery to its transfer agent of irrevocable instructions to issue,
      subject to the fulfillment of conditions set forth in Section 2.2(a), to such
      Purchaser or in such nominee name(s) as designated by such Purchaser in the
      Securities Certificate Questionnaire attached hereto as Appendix I such number
      of Shares set forth on such Purchaser’s signature page hereto, or if requested
      by the Purchaser, one or more certificates representing such Securities
      registered in such name(s) or nominee name(s) requested by such Purchaser;
      and

     

    
      
        
        

      

      
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    (vii) the
      aggregate Purchase Price to be paid by the Purchasers for the Securities at
      the
      Closing shall be greater than or equal to $24,000,001.

    

    2.3 Election
      of Directors by Three Arch Partners. On the Closing Date, the Company shall
      increase the number of members of its Board of Directors from seven members
      to
      nine members and Three Arch Partners shall have the right but not the obligation
      to designate two nominees (the “Three Arch Board Designees”) who shall be
      reasonably acceptable to the Company to serve as members of the Board of
      Directors. The Company acknowledges that Roderick A.Young and Wilfred E. Jaeger
      are deemed acceptable Three Arch Board Designees as of the date hereof. The
      Company shall cause the Three Arch Board Designees to become members of the
      Board of Directors on the Closing Date or as soon thereafter as may be
      reasonably practicable. The Company further covenants and agrees to use
      commercially reasonable efforts to place the Three Arch Board Designees on
      the
      slate of directors presented to its stockholders at each meeting at which
      directors are elected, subject to compliance with relevant Nasdaq rules and
      regulations and subject to the approval of such nominees by the nominating
      and
      corporate governance committee of the Board. If the nominating and corporate
      governance committee of the Board does not approve any proposed Three Arch
      Board
      Designee, Three Arch Partners shall be entitled to propose another candidate
      who
      shall be reasonably acceptable to the Company. The Company shall use all
      commercially reasonable efforts, including preparation of proxy materials and
      solicitation of the Company’s stockholders, to give effect to this Section 2.3.
      The Company's obligations under this Section 2.3 shall terminate with respect
      to
      one of the Three Arch Board Designees if at any time Three Arch Partners
      beneficially owns less than 3,500,000 shares of Common Stock issued pursuant
      to
      this Agreement (including shares of Common Stock issuable upon exercise of
      the
      Warrants, and as appropriately adjusted for stock splits, stock dividends and
      recapitalizations), in such case, one of the Three Arch Board Designees shall
      resign from the Board effective immediately. The Company's obligations under
      this Section 2.3 shall terminate in their entirety if at any time Three Arch
      Partners beneficially owns less than 2,000,000 shares of Common Stock issued
      pursuant to this Agreement (including shares of Common Stock issuable upon
      exercise of the Warrants, and as appropriately adjusted for stock splits, stock
      dividends and recapitalizations), in such case, all Three Arch Board Designees
      shall resign from the Board effective immediately.

     

    
      
        Section
          3. Representations,
          Warranties and Covenants of the Company.
          Except
          as
          set forth on the corresponding sections of the Company’s disclosure schedule
          attached hereto as Exhibit E (the “Disclosure Schedules”), or as specifically
          contemplated by this Agreement, the Company hereby represents and warrants
          to,
          and covenants with, each Purchaser as of the Closing Date (or such other
          date
          specified below) as follows: 

      

    

    

    3.1 No
      Material Misstatement.
      The
      Confidential Private Placement Memorandum, dated June 5, 2006, relating to
      the
      offering of the Securities, including all exhibits, documents incorporated
      by
      reference and annexes thereto, as the same may be amended or supplemented,
      (the
“Memorandum”), did not, as of its date, does not as of the date hereof, and will
      not as of the Closing Date, contain any untrue statement of a material fact
      or
      omit to state any material fact required to be stated therein or necessary
      in
      order to make the statements therein, in light of the circumstances under which
      they were made, not misleading. 

    

    
      
        
        

      

      
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    3.2 Incorporated
      Documents.

    

    (a) The
      documents incorporated by reference in the Memorandum or attached as exhibits
      thereto and any further documents so filed and incorporated by reference in
      the
      Memorandum filed on or before the Closing Date, at the time they were filed
      with
      the Securities and Exchange Commission (the “Commission”), as the case may be,
      complied in all material respects with the requirements of the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and
      regulations of the Commission thereunder (the “Rules”), and none of such
      documents as of such time contained an untrue statement of a material fact
      or
      omitted to state a material fact required to be stated therein or necessary
      in
      order to make the statements therein, in the light of the circumstances under
      which they were made, not misleading.

    

    (b) In
      the
      past 12 calendar months, the Company has filed all documents required to be
      filed by it prior to the date hereof with the Commission pursuant to the
      reporting requirements of the Exchange Act (the “SEC Documents”) on a timely
      basis or has received a valid extension of such time of filing and has filed
      any
      such SEC Documents prior to the expiration of any such extension.

    

    3.3 Financial
      Statements.
      The
      financial statements of the Company (including all notes and schedules thereto)
      included or incorporated by reference in the Memorandum present fairly and
      in
      all material respects the financial position of the Company and its consolidated
      subsidiaries at the dates indicated and the statement of operations,
      stockholders’ equity and cash flows of the Company and its consolidated
      subsidiaries for the periods specified; and such financial statements and
      related schedules and notes thereto, and the unaudited financial information
      incorporated by reference in the Memorandum, have been prepared in conformity
      with generally accepted accounting principles, consistently applied throughout
      the periods involved subject, in the case of any unaudited financial
      information, to the absence of note disclosure and normal year-end adjustments.
      The summary and selected financial data included in the Memorandum present
      fairly the information shown therein as at the respective dates and for the
      respective periods specified and have been presented on a basis consistent
      with
      the consolidated financial statements set forth in the Memorandum and other
      financial information, subject, in the case of any unaudited financial
      information, to the absence of note disclosure and normal year-end
      adjustments.

    

    3.4 Independent
      Accountants.
      Singer
      Lewak Greenbaum & Goldstein LLP and PricewaterhouseCoopers LLP, whose
      reports are filed with the Commission as a part of the information incorporated
      by reference in the Memorandum, are and, during the periods covered by their
      reports, were independent certified public accountants as required by the
      Securities Act and the Rules.

    

    3.5 Organization;
      Good Standing.
      The
      Company and each of its subsidiaries is duly organized, validly existing and
      in
      good standing under the laws of their respective jurisdictions of incorporation
      or organization. The Company and each of its subsidiaries is duly qualified
      to
      do business and is in good standing as a foreign corporation in each
      jurisdiction in which the nature of the business conducted by it or location
      of
      the assets or properties owned, leased or licensed by it requires such
      qualification, except for such jurisdictions where the failure to so qualify
      individually or in the aggregate would not have a material adverse effect on
      the
      assets, properties, condition, financial or otherwise, or in the results of
      operations, business affairs or business prospects of the Company and its
      subsidiaries considered as a whole (a “Material Adverse Effect”); and to the
      Company’s knowledge, no proceeding has been instituted in any such jurisdiction
      revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such
      power and authority or qualification.

    

    
      
        
        

      

      
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    3.6 Permits.
      The
      Company and each of its subsidiaries has all requisite corporate power and
      authority, and all necessary authorizations, approvals, consents, orders,
      licenses, certificates and permits of and from all governmental or regulatory
      bodies or any other person or entity (collectively, the “Permits”), to own,
      lease and license its assets and properties and conduct its business, all of
      which are valid and in full force and effect, except where the lack of such
      Permits, individually or in the aggregate, would not have a Material Adverse
      Effect. The Company and each of its subsidiaries has fulfilled and performed
      in
      all material respects all of its material obligations with respect to such
      Permits and no event has occurred that allows, or after notice or lapse of
      time
      would allow, revocation or termination thereof or results in any other material
      impairment of the rights of the Company hereunder. Except as may be required
      under the Securities Act and state and foreign Blue Sky laws, no other Permits
      are required to enter into, deliver and perform this Agreement and to issue
      and
      sell the Securities.

    

    3.7 Intellectual
      Property.
      The
      Company and each of its subsidiaries owns or possesses legally enforceable
      rights to use all patents, patent rights, inventions, trademarks, trademark
      applications, trade names, service marks, copyrights, copyright applications,
      licenses, know-how and other similar rights and proprietary knowledge
      (collectively, “Intangibles”) necessary for the conduct of its business. Except
      as otherwise disclosed in the SEC Documents and the Memorandum, neither the
      Company nor any of its subsidiaries has received any notice of, or is not aware
      of, any infringement of or conflict with asserted rights of others with respect
      to any Intangibles.

    

    3.8 Real
      and Personal Property.
      The
      Company and each of its subsidiaries has good and marketable title in fee simple
      to all real property, and good and marketable title to all other property owned
      by it, in each case free and clear of all liens, encumbrances, claims, security
      interests and defects, except such as do not materially affect the value of
      such
      property and do not materially interfere with the use made or proposed to be
      made of such property by the Company and its subsidiaries and except as
      otherwise disclosed in the Disclosure Schedules attached hereto. All property
      held under lease by the Company and its subsidiaries is held by them under
      valid, existing and enforceable leases, free and clear of all liens,
      encumbrances, claims, security interests and defects, except such as are not
      material and do not materially interfere with the use made or proposed to be
      made of such property by the Company and its subsidiaries except as otherwise
      disclosed in the Disclosure Schedules attached hereto.

    

    3.9 No
      Material Adverse Change.
      Since
      the date of the most recent financial statements of the Company incorporated
      by
      reference in the Memorandum and except as otherwise discussed in the Memorandum
      (i) except as otherwise disclosed in the Disclosure Schedules attached hereto,
      there has not been any change in the capital stock or long-term debt of the
      Company or any of its subsidiaries, or any dividend or distribution of any
      kind
      declared, set aside for payment, paid or made by the Company on any class of
      capital stock, or any material adverse change, or any development involving
      a
      prospective material adverse change, in or affecting the business, properties,
      management, financial position, stockholders’ equity, results of operations or
      prospects of the Company and its subsidiaries taken as a whole; (ii) neither
      the
      Company nor any of its subsidiaries has sustained any material loss or
      interference with its business from fire, explosion, flood or other calamity,
      whether or not covered by insurance, or from any labor disturbance or dispute
      or
      any action, order or decree of any court or arbitrator or governmental or
      regulatory authority, and (iii) except as otherwise disclosed in the Disclosure
      Schedules attached hereto, since the date of the latest balance sheet included
      in the Memorandum, neither the Company nor its subsidiaries has (A) issued
      any
      securities or incurred any liability or obligation, direct or contingent, for
      borrowed money, except such liabilities or obligations incurred in the ordinary
      course of business or (B) entered into any transaction not in the ordinary
      course of business. 

    

    
      
        
        

      

      
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    3.10 Material
      Contracts.
      Each
      description of any contract, document or other agreement in the Memorandum
      accurately reflects in all respects the terms of the underlying contract,
      document or other agreement. Each such contract, document or other agreement
      is
      in full force and effect and is valid and enforceable by and against the Company
      or its subsidiary, as the case may be, in accordance with its terms. Neither
      the
      Company nor any of its subsidiaries, if a subsidiary is a party, nor to the
      Company’s knowledge, any other party is in default in the observance or
      performance of any term or obligation to be performed by it under any such
      agreement, and no event has occurred which with notice or lapse of time or
      both
      would constitute such a default, in any such case which default or event,
      individually or in the aggregate, would have a Material Adverse Effect. No
      default exists, and no event has occurred which with notice or lapse of time
      or
      both would constitute a default, in the due performance and observance of any
      term, covenant or condition, by the Company or its subsidiary, if a subsidiary
      is a party thereto, of any other agreement or instrument to which the Company
      or
      any of its subsidiaries is a party or by which Company or its properties or
      business or a subsidiary or its properties or business may be bound or affected
      which default or event, individually or in the aggregate, would have a Material
      Adverse Effect.

    

    3.11 Statistical
      Data.
      The
      statistical and market related data included in the Memorandum are based on
      or
      derived from sources that the Company believes to be reliable and
      accurate.

    

    3.12 No
      Violation.
      Neither
      the Company nor any of its subsidiaries is in violation of any term or provision
      of its charter or by-laws or of any franchise, license, permit, judgment,
      decree, order, statute, rule or regulation, where the consequences of such
      violation, individually or in the aggregate, would have a Material Adverse
      Effect.

    

    3.13 Due
      Authorization.
      This
      Agreement and the Warrant Agreement to be entered into between the Company
      and
      the Warrant Agent, dated as of the Closing Date (the “Warrant Agreement”) have
      been duly authorized, executed and delivered by the Company and assuming proper
      execution by each of the parties thereto other than the Company, constitute
      the
      legal, valid and binding obligation of the Company, enforceable in accordance
      with their terms. All necessary corporate action has been duly and validly
      taken
      by the Company to authorize the execution, delivery and performance of this
      Agreement, the Warrant Agreement and the issuance and sale of the Securities
      by
      the Company.

    

    
      
        
        

      

      
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    3.14 No
      Default or Consents.
      Neither
      the execution, delivery and performance of this Agreement by the Company nor
      the
      consummation of any of the transactions contemplated hereby (including, without
      limitation, the issuance and sale by the Company of the Securities) will give
      rise to a right to terminate or accelerate the due date of any payment due
      under, or conflict with or result in the breach of any term or provision of,
      or
      constitute a default (or an event which with notice or lapse of time or both
      would constitute a default) under, or require any consent or waiver under,
      or
      result in the execution or imposition of any lien, charge or encumbrance upon
      any properties or assets of the Company or its subsidiaries pursuant to the
      terms of, any indenture, mortgage, deed of trust or other agreement or
      instrument to which the Company or any of its subsidiaries is a party or by
      which either the Company or its subsidiaries or any of their properties or
      businesses is bound, or any franchise, license, permit, judgment, decree, order,
      statute, rule or regulation applicable to the Company or any of its subsidiaries
      or violate any provision of the charter or by-laws of the Company or any of
      its
      subsidiaries, except for such consents or waivers which have already been
      obtained and are in full force and effect. 

    

    3.15 Capitalization.
      The
      Company has authorized and outstanding capital stock as set forth under the
      caption “Description of Common Stock and Warrants” in the Memorandum. The
      certificates evidencing the Shares and the Warrants are in due and proper legal
      form and have been duly authorized for issuance by the Company. All of the
      issued and outstanding shares of Common Stock have been duly and validly issued
      and are fully paid and nonassessable. There are no statutory preemptive or
      other
      similar rights to subscribe for or to purchase or acquire any shares of Common
      Stock of the Company or any of its subsidiaries or any such rights pursuant
      to
      its Certificate of Incorporation or by-laws or any agreement or instrument
      to or
      by which the Company or any of its subsidiaries is a party or bound. The Shares,
      when issued and delivered and paid for as provided herein, will be duly and
      validly issued, and will be fully paid and nonassessable and will be issued
      free
      and clear of any security interests, liens, encumbrances, equities or claims.
      The Company has reserved from its duly authorized capital stock the maximum
      number of shares of Common Stock issuable pursuant to the Warrants (the “Warrant
      Shares”). The Warrant Shares, when issued and delivered upon exercise of the
      Warrants in accordance with their terms, will be duly authorized, validly
      issued, fully paid and nonassessable and will be issued free and clear of any
      security interests, liens, encumbrances, equities or claims. Except as disclosed
      in the Memorandum, the SEC Documents and the Disclosure Schedules attached
      hereto, there is no outstanding option, warrant or other right calling for
      the
      issuance of, and there is no commitment, plan or arrangement to issue, any
      share
      of stock of the Company or any of its subsidiaries or any security convertible
      into, or exercisable or exchangeable for, such stock. The Common Stock and
      the
      Securities conform in all material respects to all statements in relation
      thereto contained in the Memorandum. All outstanding shares of capital stock
      of
      each of the Company’s subsidiaries have been duly authorized and validly issued,
      and are fully paid and nonassessable and are owned directly by the Company
      or by
      another wholly-owned subsidiary of the Company free and clear of any security
      interests, liens, encumbrances, equities or claims, except as disclosed in
      the
      Disclosure Schedules attached hereto. The Company has taken all action necessary
      to exempt (i) the issuance and sale of the Securities, and (ii) the issuance
      of
      the Warrant Shares upon due exercise of the Warrants, from the provisions of
      any
      stockholder rights plan or other “poison pill” arrangement, any anti-takeover,
      business combination or control share law or statute binding on the Company
      or
      to which the Company or any of its assets and properties may be subject and
      any
      provision of the Company’s Certificate of Incorporation or Bylaws that is or
      could reasonably be expected to become applicable to any Purchaser as a result
      of the transactions contemplated hereby, including without limitation, the
      issuance of the Securities and the ownership, disposition or voting of the
      Securities by each Purchaser or the exercise of any right granted to each
      Purchaser pursuant to this Agreement or the Warrant Agreement. The issuance
      and
      sale of the Securities hereunder will not obligate the Company to issue shares
      of Common Stock or other securities to any other Person (other than the
      Purchasers) and will not result in the adjustment of the exercise, conversion,
      exchange or reset price of any outstanding security, except as disclosed in
      the
      Disclosure Schedules attached hereto.

    

    
      
        
        

      

      
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    3.16 No
      Registration Rights.
      Except
      as otherwise disclosed in the SEC Documents, the Memorandum and the Disclosure
      Schedules attached hereto, no holder of any security of the Company has any
      right, which has not been waived, to have any security owned by such holder
      included in the offering of Securities contemplated by the Memorandum or to
      demand registration of any security owned by such holder for the period from
      the
      date of this Agreement through the ninetieth day following the effective date
      of
      the Registration Statement. Each director and executive officer of the Company
      has delivered to the Placement Agent his, her or its enforceable written lock-up
      agreement in the form attached to this Agreement as Exhibit D hereto (“Lock-Up
      Agreement”).

    

    3.17 Legal
      Proceedings.
      Except
      as otherwise disclosed in the SEC Documents and the Memorandum, there are no
      legal or governmental proceedings pending to which the Company or any of its
      subsidiaries is a party or of which any property of the Company or any of its
      subsidiaries is the subject which, if determined adversely to the Company or
      any
      of its subsidiaries could individually or in the aggregate have a Material
      Adverse Effect; and to the knowledge of the Company, no such proceedings are
      threatened or contemplated by governmental authorities or threatened by others.
      Except as otherwise disclosed in the SEC Documents and the Memorandum, the
      Company is not aware of any threatened or pending litigation between the Company
      or its subsidiaries and any of its executive officers which, if adversely
      determined, could have a Material Adverse Effect and has no reason to believe
      that such officers will not remain in the employment of the
      Company.

    

    3.18 Employees.
      Neither
      the Company nor any of its subsidiaries is involved in any labor dispute nor,
      to
      the knowledge of the Company, is any such dispute threatened, which dispute
      would have a Material Adverse Effect. The Company is not aware of any existing
      or imminent labor disturbance by the employees of any of its principal suppliers
      or contractors which would have a Material Adverse Effect.

    

    3.19 Market
      Stabilization.
      The
      Company has not taken, nor will it take, directly or indirectly, any action
      designed to or which might reasonably be expected to cause or result in, or
      which has constituted or which might reasonably be expected to constitute,
      the
      stabilization or manipulation of the price of the Common Stock or any security
      of the Company to facilitate the sale or resale of any of the Shares or the
      Warrant Shares.

    

    3.20 Taxes.
      The
      Company and each of its subsidiaries has filed all Federal, state, local and
      foreign tax returns which are required to be filed through the date hereof,
      which returns are true and correct in all material respects or has received
      timely extensions thereof, and has paid all taxes shown on such returns and
      all
      assessments received by it to the extent that the same are material and have
      become due. There are no tax audits or investigations pending, which if
      adversely determined would have a Material Adverse Effect; nor, to the Company’s
      knowledge, are there any material proposed additional tax assessments against
      the Company or any of its subsidiaries.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    3.21 Listing
      Compliance.
      The
      Company has taken no action designed to, or likely to have the effect of,
      terminating the registration of the Common Stock under the Exchange Act or
      the
      quotation of the Common Stock on the Nasdaq National Market, nor, except as
      described in the Memorandum and the SEC Documents, has the Company received
      any
      notification that the Commission or the Nasdaq National Market is contemplating
      terminating such registration or quotation. The transactions contemplated by
      this Agreement will not contravene the rules and regulations of the Nasdaq
      National Market. The Company will use commercially reasonable efforts to
      continue the listing and trading of its Common Stock on the Nasdaq National
      Market and to comply in all material respects with the Company’s reporting,
      filing and other obligations under the rules of the Nasdaq National Market.
      The
      Shares and the Warrant Shares have been duly authorized for quotation on the
      Nasdaq National Market.

    

    3.22 Books
      and Record Keeping.
      The
      books, records and accounts of the Company and its subsidiaries accurately
      and
      fairly reflect, in all material respects, in reasonable detail, the transactions
      in, and dispositions of, the assets of, and the results of operations of, the
      Company and its subsidiaries. The Company and each of its subsidiaries maintains
      a system of internal accounting controls sufficient to provide reasonable
      assurances that (i) transactions are executed in accordance with management’s
      general or specific authorizations, (ii) transactions are recorded as necessary
      to permit preparation of financial statements in accordance with generally
      accepted accounting principles and to maintain asset accountability, (iii)
      access to assets is permitted only in accordance with management’s general or
      specific authorization and (iv) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences.

    

    3.23 Internal
      Controls.
      The
      Company has established and maintains disclosure controls and procedures (as
      such term is defined in Rule 13a-15 under the Exchange Act), which: (i) are
      designed to ensure that material information relating to the Company is made
      known to the Company’s principal executive officer and its principal financial
      officer by others within the Company; (ii) provide for the periodic evaluation
      of the effectiveness of such disclosure controls and procedures at the end
      of
      the periods in which the periodic reports are required to be prepared; and
      (iii)
      are effective in all material respects to perform the functions for which they
      were established.

    

    3.24 No
      Deficiencies or Frauds.
      Based
      on the evaluation of its disclosure controls and procedures, the Company is
      not
      aware of (i) any significant deficiency in the design or operation of internal
      controls which could adversely affect the Company’s ability to record, process,
      summarize and report financial data or any material weaknesses in internal
      controls; or (ii) any fraud, whether or not material, that involves management
      or other employees who have a role in the Company’s internal
      controls.

    

    3.25 Off
      Balance Sheet Arrangements.
      There
      are no material off-balance sheet arrangements (as defined in Item 303 of
      Regulation S-K) that have or are reasonably likely to have a material current
      or
      future effect on the Company’s financial condition, revenues or expenses,
      changes in financial condition, results of operations, liquidity, capital
      expenditures or capital resources.

    

    
      
        
        

      

      
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    3.26 Audit
      Committee.
      The
      Company’s Board of Directors has validly appointed an audit committee whose
      composition satisfies the requirements of Rule 4350(d)(2) of the Rules of the
      National Association of Securities Dealers (the “NASD Rules”) and the Board of
      Directors and/or the audit committee has adopted a charter that satisfies the
      requirements of Rule 4350(d)(1) of the NASD Rules. The audit committee has
      reviewed the adequacy of its charter within the past twelve months.

    

    3.27 Sarbanes-Oxley
      Act.
      The
      Company is in compliance with all other applicable provisions of the
      Sarbanes-Oxley Act of 2002, any related rules and regulations promulgated by
      the
      Commission and corporate governance requirements under the NASD Rules upon
      the
      effectiveness of such provisions and has no reason to believe that it will
      not
      be able to comply with such provisions at the time of
      effectiveness.

    

    3.28 Insurance.
      The
      Company and its subsidiaries are insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as are
      customary for companies of approximately equal size to the Company and its
      subsidiaries which are engaged in the businesses in which they are engaged
      or
      propose to engage after giving effect to the transactions described in the
      Memorandum; all policies of insurance and fidelity or surety bonds insuring
      the
      Company or any of its subsidiaries or the Company’s or its subsidiaries’
respective businesses, assets, employees, officers and directors are in full
      force and effect; the Company and each of its subsidiaries are in compliance
      with the terms of such policies and instruments in all material respects; and
      neither the Company nor any subsidiary of the Company has any reason to believe
      that it will not be able to renew its existing insurance coverage as and when
      such coverage expires or to obtain similar coverage from similar insurers as
      may
      be necessary to continue its business at a cost that is not materially greater
      than the current cost. Neither the Company nor any of its subsidiaries has
      been
      denied any insurance coverage which it has sought or for which it has
      applied.

    

    3.29 Consents
      and Approvals.
      Each
      approval, consent, order, authorization, designation, declaration or filing
      of,
      by or with any regulatory, administrative or other governmental body necessary
      in connection with the execution and delivery by the Company of this Agreement
      and the consummation of the transactions herein contemplated required to be
      obtained or performed by the Company has been obtained or performed.

    

    3.30 Environmental
      Laws. 

    

    (a) (i)
      Each
      of the Company and each of its subsidiaries is in compliance in all material
      respects with all rules, laws and regulation relating to the use, treatment,
      storage and disposal of toxic substances and protection of health or the
      environment (“Environmental Law”) which are applicable to its business; (ii)
      neither the Company nor its subsidiaries has received any notice from any
      governmental authority or third party of an asserted claim under Environmental
      Laws; (iii) each of the Company and each of its subsidiaries has received all
      permits, licenses or other approvals required of it under applicable
      Environmental Laws to conduct its business and is in compliance with all terms
      and conditions of any such permit, license or approval (except where failure
      to
      receive such permits, licenses or approvals would not have a Material Adverse
      Effect); (iv) to the Company’s knowledge, no facts currently exist that will
      require the Company or any of its subsidiaries to make future material capital
      expenditures to comply with Environmental Laws; and (v) no property which is
      or
      has been owned, leased or occupied by the Company or its subsidiaries has been
      designated as a Superfund site pursuant to the Comprehensive Environmental
      Response, Compensation of Liability Act of 1980, as amended (42 U.S.C. Section
      9601, et. seq.) or otherwise designated as a contaminated site under applicable
      state or local law. Neither the Company nor any of its subsidiaries has been
      named as a “potentially responsible party” under the CERCLA 1980.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b) In
      the
      ordinary course of its business, the Company periodically reviews the effect
      of
      Environmental Laws on the business, operations and properties of the Company
      and
      its subsidiaries, in the course of which the Company identifies and evaluates
      associated costs and liabilities (including, without limitation, any capital
      or
      operating expenditures required for clean-up, closure of properties or
      compliance with Environmental Laws, or any permit, license or approval, any
      related constraints on operating activities and any potential liabilities to
      third parties). On the basis of such review, the Company has reasonably
      concluded that such associated costs and liabilities would not, singly or in
      the
      aggregate, have a Material Adverse Effect.

    

    3.31 Investment
      Company.
      The
      Company is not and, after giving effect to the offering and sale of the
      Securities and the application of the proceeds thereof as described in the
      Memorandum, will not be an “investment company” or an entity “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940,
      as amended, and the rules and regulations of the Commission thereunder
      (collectively, the “Investment Company Act”).

    

    3.32 Foreign
      Corrupt Practices Act.
      The
      Company or any other person associated with or acting on behalf of the Company
      including, without limitation, any director, officer, agent or employee of
      the
      Company or its subsidiaries, has not, directly or indirectly, while acting
      on
      behalf of the Company or its subsidiaries (i) used any corporate funds for
      unlawful contributions, gifts, entertainment or other unlawful expenses relating
      to political activity; (ii) made any unlawful payment to foreign or
      domestic government officials or employees or to foreign or domestic political
      parties or campaigns from corporate funds; (iii) violated any provision of
      the
      Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any other
      unlawful payment.

    

    3.33 Foreign
      Transactions Reporting Act.
      The
      operations of the Company and its subsidiaries are and have been conducted
      at
      all times in compliance with applicable financial recordkeeping and reporting
      requirements of the Currency and Foreign Transactions Reporting Act of 1970,
      as
      amended, the money laundering statutes of all jurisdictions, the rules and
      regulations hereunder and any related or similar rules, regulations or
      guidelines, issued, administered or enforced by any governmental agency
      (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by
      or before any court or governmental agency, authority or body or any arbitrator
      involving the Company or any of it subsidiaries with respect to the Money
      Laundering Laws is pending, or to the best knowledge of the Company,
      threatened.

    

    
      
        
        

      

      
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    3.34 OFAC.
      Neither
      the Company nor any of its subsidiaries nor, to the knowledge of the Company,
      any director, officer, agent, employee or affiliate of the Company or any of
      its
      subsidiaries is currently subject to any U.S. sanctions administered by the
      Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and
      the Company will not directly or indirectly use the proceeds of the offering,
      or
      lend, contribute or otherwise make available such proceeds to any subsidiary,
      joint venture partner or other person or entity, for the purpose of financing
      the activities of any person currently subject to any U.S. sanctions
      administered by OFAC.

    

    3.35 ERISA.
      The
      Company has fulfilled its obligations, if any, under the minimum funding
      standards of Section 302 of the U.S. Employee Retirement Income Security Act
      of
      1974 (“ERISA”) and the regulations and published interpretations hereunder with
      respect to each “plan” as defined in Section 3(3) of ERISA and such regulations
      and published interpretations in which its employees are eligible to participate
      and each such plan is in compliance in all material respects with the presently
      applicable provisions of ERISA and such regulations and published
      interpretations. No “Reportable Event” (as defined in 12 ERISA) has occurred
      with respect to any “Pension Plan” (as defined in ERISA) for which the Company
      could have any liability.

    

    3.36 Brokers
      or Finders.
      No
      broker, investment banker, financial advisor or other individual, corporation,
      general or limited partnership, limited liability company, firm, joint venture,
      association, enterprise, joint securities company, trust, unincorporated
      organization or other entity (each a “Person”), other than the Placement Agent,
      the fees and expenses of which will be paid by the Company, is entitled to
      any
      broker’s, finder’s, financial advisor’s financial advisor’s or other similar fee
      or commission in connection with the transactions contemplated by this Agreement
      based upon arrangements made by or on behalf of the Company.

    

    3.37 Use
      of
      Proceeds.
      The
      Company intends to use the net proceeds from the sale of the Securities as
      described in the Memorandum.

    

    3.38 Solicitation;
      Other Issuances of Securities.
      Neither
      the Company, its subsidiaries or any affiliates, nor any Person acting on its
      or
      their behalf, (i) has engaged in any form of general solicitation or general
      advertising (within the meaning of Regulation D under the Securities Act) in
      connection with the offer or sale of the Securities, (ii) has, directly or
      indirectly, made any offer or sale of any security or solicited any offer to
      buy
      any security, under any circumstances that would require registration of the
      Securities under the Securities Act or (iii) has issued any shares of Common
      Stock or shares of any series of preferred stock or other securities or
      instruments convertible into, exchangeable for or otherwise entitling the holder
      thereof to acquire shares of Common Stock which would be integrated with the
      sale of the Securities to such Purchaser for purposes of the Securities Act
      or
      of any applicable stockholder approval provisions, including, without
      limitation, under the rules and regulations of the Nasdaq National Market,
      nor
      will the Company or any of its subsidiaries or affiliates take any action or
      steps that would require registration of any of the Securities under the
      Securities Act or cause the offering of the Securities to be integrated with
      other offerings. Assuming the accuracy of the representations and warranties
      of
      Purchasers, the offer and sale of the Securities by the Company to the
      Purchasers pursuant to this Agreement will be exempt from the registration
      requirements of the Securities Act.

    

    
      
        
        

      

      
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    3.39 No
      Restrictions on Subsidiaries.
      Except
      as otherwise disclosed in the Disclosure Schedules attached hereto, the
      subsidiaries of the Company are not currently prohibited, directly or
      indirectly, under any agreement or other instrument to which any subsidiary
      is a
      party or is subject, from paying any dividends to the Company, from making
      any
      other distribution on the subsidiary’s capital stock, from repaying to the
      Company any loans or advances to the subsidiary from the Company or from
      transferring any of such subsidiary’s properties or assets to the
      Company.

    

    3.40 SEC
      Filing.
      The
      Company shall file not later than one (1) business day from the date hereof
      with
      the SEC a Current Report on Form 8-K under the Exchange Act describing the
      transactions contemplated hereby and attaching as exhibits thereto all material
      documents relating to the transactions contemplated hereby. In the event such
      Form 8-K is not filed by the Company, the Purchasers shall each have the right
      to make a public disclosure, in the form of a press release, of the transactions
      contemplated hereby only upon the review and approval of such public disclosure
      by the Company, which such approval shall not be unreasonably
      withheld.

    

    3.41 Registration
      Statement.
      The
      Company meets, and will use reasonable best efforts to meet upon filing and
      effectiveness, the requirements for use of Form S-3 under the Securities Act
      for
      secondary offerings.

    

    3.42 Related
      Party Transactions.
      Except
      for those transactions that are not required to be disclosed by the Company
      pursuant to the rules and regulations of the Exchange Act, no transaction has
      occurred between or among the Company or its subsidiaries and any of its
      officers or directors, shareholders or any affiliate of any such officer or
      director or shareholder that is not described in the Memorandum.

    

    
      
        Section
          4. Representations,
          Warranties and Covenants of Each Purchaser.

      

    

    

    Each
      Purchaser for itself and no other Purchaser hereby represents and warrants
      to,
      and covenants with, the Company as of the Closing Date (or such other date
      specified below) as follows:

     

    4.1 Organization.
      Such
      Purchaser is an entity duly organized and validly existing in good standing
      (to
      the extent such concepts are applicable) under the laws of its jurisdiction
      of
      organization. Such Purchaser has all requisite corporate power and authority
      and
      all necessary governmental approvals to carry on its business as now being
      conducted, except as would not result in a Material Adverse Effect on such
      Purchaser’s ability to consummate the transactions contemplated by this
      Agreement. Such Purchaser’s principal executive offices are in the jurisdiction
      set forth immediate below the Purchaser’s name on the signature pages
      hereto.

    

    4.2 Authorization,
      Enforcement, and Validity.
      Such
      Purchaser has the requisite power and authority to enter into this Agreement
      and
      to consummate the transactions contemplated hereby. Such Purchaser has taken
      all
      necessary action to authorize the execution, delivery and performance of this
      Agreement. Upon the execution and delivery of this Agreement, this Agreement
      shall constitute a valid and binding obligation of the Purchaser enforceable
      in
      accordance with its terms, except as enforceability may be limited by applicable
      bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
      creditors’ and contracting parties’ rights generally and except as
      enforceability may be subject to general principles of equity. 

     

    
      
        
        

      

      
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    4.3 Consents
      and Approvals; No Violation.
      The
      execution, delivery and performance of this Agreement by such Purchaser and
      the
      consummation by such Purchaser of the transactions contemplated hereby will
      not
      (i) result in a violation of such Purchaser’s organizational documents; (ii)
      conflict with, or constitute a default or give to others any rights of
      termination, amendment, acceleration or cancellation of, any material agreement,
      indenture or instrument to which such Purchaser is a party (except for such
      conflicts, defaults, terminations, amendments, accelerations, cancellations
      and
      violations as would not, individually or in the aggregate, result in a Material
      Adverse Effect on such Purchaser’s ability to consummate the transactions
      contemplated by this Agreement); or (iii) result in a violation of any law,
      rule, regulation, order, judgment or decree applicable to such Purchaser or
      any
      of its Subsidiaries, except for such violations as would not, individually
      or in
      the aggregate, result in a Material Adverse Effect on such Purchaser’s ability
      to consummate the transactions contemplated by this Agreement. Such Purchaser
      is
      not required to obtain any consent, authorization or order of, or make any
      filing or registration with, any court or governmental agency or any regulatory
      or self-regulatory agency in order for it to execute, deliver or perform any
      of
      its obligations under or contemplated by this Agreement, except where the
      failure to obtain such consents, authorization or orders or to make such filings
      or registrations would not, individually or in the aggregate, result in a
      Material Adverse Effect on such Purchaser’s ability to consummate the
      transactions contemplated by this Agreement. 

     

    4.4 Investment
      Experience.
      Such
      Purchaser is an accredited investor within the meaning of Rule 501 of Regulation
      D promulgated under the Securities Act, is knowledgeable, sophisticated and
      experienced in making, and is qualified to make, decisions with respect to
      investments in shares representing an investment decision like that involved
      in
      the purchase of the Securities.

     

    4.5 Limitation
      on Dispositions.
      (a)
      Such Purchaser is acquiring Securities for its own account and has no intention
      of selling or distributing any of such Securities or any arrangement or
      understanding with any other Persons regarding the sale or distribution of
      such
      Securities except in accordance with the provisions of Section 6 and except
      as
      would not result in a violation of the Securities Act, (b) such Purchaser will
      not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose
      of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge
      of) any of the Securities except in accordance with the provisions of Section
      6
      or pursuant to and in accordance with the Securities Act and (c) such Purchaser
      has completed or caused to be completed the Registration Statement Questionnaire
      attached hereto as part of Appendix I for use in preparation of the Registration
      Statement, and the answers thereto are true and correct as of the date hereof
      and will be true and correct as of the effective date of the Registration
      Statement and such Purchaser will notify the Company immediately of any material
      change in any such information provided in the Registration Statement
      Questionnaire until such time as such Purchaser has sold all of its Securities
      or until the Company is no longer required to keep the Registration Statement
      effective, except that such Purchaser shall not be required to advise the
      Company of any sales of the Registrable Securities pursuant to the Registration
      Statement.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    4.6 Information
      and Risk.

    

    (a) Such
      Purchaser has received and reviewed the Memorandum and has requested, received,
      reviewed and considered all other information relevant in making an informed
      decision to purchase the Securities. Such Purchaser has had an opportunity
      to
      discuss the Company’s business, management and financial affairs with its
      management and also had an opportunity to ask questions of officers of the
      Company that were answered to such Purchaser’s satisfaction. 

     

    (b) Such
      Purchaser recognizes that an investment in the Securities involves a high degree
      of risk, including a risk of total loss of such Purchaser’s investment. Such
      Purchaser is able to bear the economic risk of holding the Securities for an
      indefinite period, and has knowledge and experience in the financial and
      business matters such that it is capable of evaluating the risks of the
      investment in the Securities.

     

    (c) Such
      Purchaser has, in connection with such Purchaser’s decision to purchase
      Securities, not relied upon any representations or other information (whether
      oral or written) other than as set forth in the representations and warranties
      of the Company contained herein, the Memorandum, the SEC Documents and the
      other
      information described in Section 4.6(a), and such Purchaser has, with respect
      to
      all matters relating to this Agreement and the offer and sale of the Securities,
      relied solely upon the advice of such Purchaser’s own counsel and has not relied
      upon or consulted any counsel to the Placement Agents or counsel to the
      Company.

     

    4.7 Disclosures
      to the Company.
      Such
      Purchaser understands that the Company is relying on the statements contained
      herein to establish an exemption from registration under federal and state
      securities laws. Such Purchaser will promptly notify the Company of any changes
      in the information set forth in the Registration Statement regarding such
      Purchaser.

     

    4.8  Nature
      of Purchasers.
      To the
      knowledge of such Purchaser, such Purchaser: (i) is not an affiliate (as such
      term is defined pursuant to Rule 12b-2 promulgated under the Exchange Act)
      of
      any other Purchaser, (ii) is not constituted as a partnership, association,
      joint venture or any other type of joint entity with any other Purchaser, and
      (iii) is not acting as part of a group (as such term is defined under Section
      13(d) of the Exchange Act) with any other Purchaser. If at any time after the
      Closing Date such Purchaser becomes an affiliate (as defined herein) of any
      other Purchaser, such Purchaser will provide prompt written notice to the
      Company.

     

    4.9 Ownership.
      Such
      Purchaser (including any Person controlling, controlled by, or under common
      control with such Purchaser, as the term “control” is defined pursuant to the
      Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and its
      implementing regulations (the “HSR Act”)) does not, and upon the consummation of
      the transactions contemplated by this Agreement will not, hold voting securities
      of the Company exceeding an aggregate fair market value as of the Closing Date
      of fifty million dollars ($50,000,000), calculated pursuant to the HSR
      Act.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    4.10 Brokers
      or Finders.
      No
      broker, investment banker, financial advisor or other Person is entitled to
      any
      broker’s, finder’s, financial advisor’s or other similar fee or commission in
      connection with the transactions contemplated hereby based upon arrangements
      made by or on behalf of such Purchaser.

     

    4.11 Acknowledgement.
      Such
      Purchaser acknowledges and agrees that the Company does not make and has not
      made any representations or warranties with respect to the transactions
      contemplated by this Agreement other than those specifically set forth in
      Section 3.

    

    4.12 Confidential
      Treatment. The Purchasers shall hold in strict confidence all information
      concerning this Agreement and the offering of the Securities until such time
      as
      the Company has made a public announcement concerning this
      Agreement.

    

    4.13 Short
      Sales. Between the time such Purchaser obtained knowledge of the proposed
      sale of the Securities contemplated hereby and the public announcement of the
      transaction, such Purchaser has not taken any action that has caused or will
      cause such Purchaser to have, directly or indirectly, sold or agreed to sell
      any
      shares of Common Stock, effected any short sale, whether or not against the
      box,
      established any “put equivalent position” (as defined in Rule 16a-1(h) under the
      Securities Exchange Act of 1934, as amended) with respect to the Common Stock,
      granted any other right (including, without limitation, any put or call option)
      with respect to the Common Stock or with respect to any security that includes,
      relates to or derived any significant part of its value from the Common
      Stock.

    

    4.14 Restricted
      Securities. Without limiting the registration rights granted to the
      Purchasers under Section 6 hereto, such Purchaser understands that the Shares
      upon issuance will be “restricted securities” as such term is defined in Rule
      144 promulgated under the Securities Act and must be held indefinitely unless
      the Shares are subsequently registered or qualified under applicable state
      and
      federal securities laws or an exemption from such registration or qualification
      is available. Such Purchaser understands that it may resell the Shares pursuant
      to Rule 144 only after the satisfaction of certain requirements, including
      the
      requirement that the Shares be held for at least one year prior to
      resale.

     

    
      
        Section
          5. Survival
          of Representations and Warranties.
          

      

    

    

    Notwithstanding
      any investigation made by any party to this Agreement or by the Placement
      Agents, all representations and warranties as to each respective Closing made
      by
      the Company and the Purchasers herein shall survive for a period of eighteen
      (18) months following the Closing Date.

     

    
      
        Section
          6. Registration
          of the Shares and Warrant Shares; Compliance with the Securities
          Act.

      

    

     

    6.1 Registration
      Procedures and Expenses.
      (a) Except
      during a Suspension (as defined below), the Company will, subject to receipt
      of
      necessary information from the Purchasers:

     

    (i) as
      soon
      as practicable, but in no event later than forty-five (45) days following the
      Closing Date (the “Filing Date”), use reasonable best efforts to prepare and
      file with the Commission a registration statement on Form S-3 (the “Registration
      Statement”) covering the resale of the Shares and the Warrant Shares of each
      Purchaser that has complied with Section 6.4, together with any shares of
      capital stock issued or issuable, from time to time, upon any reclassification,
      share combination, share subdivision, stock split, share dividend or similar
      transaction or event or otherwise as a distribution on, in exchange for or
      with
      respect to any of the foregoing, in each case held at the relevant time by
      a
      Purchaser (the “Registrable Securities”);

     

    (ii) use
      reasonable best efforts to cause the Registration Statement, as amended, to
      become effective under the Securities Act as soon as practicable but in any
      event no later than 4:00 p.m. Eastern Time on the ninetieth (90) day after
      the
      Closing Date
      (the
“Required Effective Date”);

    

    (iii) use
      reasonable best efforts to cause the prospectus to be filed with the Commission
      pursuant to Rule 424(b) under the Securities Act as soon as practicable but
      in
      any event no later than 9:00 a.m. Eastern Time the next business day following
      the date such Registration Statement is declared effective by the
      Commission;

     

    (iv) use
      its
      reasonable best efforts to promptly prepare and file with the Commission such
      amendments and supplements to the Registration Statement and the prospectus
      used
      in connection therewith (A) as may be necessary to keep the Registration
      Statement continuously effective until the earlier of (i) the second anniversary
      of the Closing Date, or (ii) such time as all Shares and Warrant Shares
      purchased by the Purchasers have been sold pursuant to the Registration
      Statement and (B) as may be reasonably requested by a Purchaser in order to
      incorporate information concerning such Purchaser or such Purchaser’s intended
      method of distribution;

     

    (v) so
      long
      as the Registration Statement is effective covering the resale of Registrable
      Securities owned by the Purchasers, furnish to each Purchaser with respect
      to
      the Registrable Securities registered under the Registration Statement (and
      to
      each underwriter, if any, of such Registrable Securities) such reasonable number
      of copies of prospectuses and such other documents as such Purchaser may
      reasonably request in order to facilitate the public sale or other disposition
      of all or any of the Registrable Securities by such Purchaser;

     

    (vi) use
      commercially reasonable efforts to file documents required of the Company for
      normal Blue Sky clearance in the States of New York and Wisconsin and any other
      states specified in writing by the Purchasers; provided, however, that the
      Company shall not be required to qualify to do business generally in any
      jurisdiction in which the Company is not now so qualified;

     

    (vii) bear
      all
      expenses in connection with the procedures in paragraphs (i) through (vi) of
      this Section 6.1 and the registration of the Registrable Securities pursuant
      to
      the Registration Statement, other than fees and expenses, if any, of counsel
      or
      other advisers to the Purchasers or underwriting discounts, brokerage fees
      and
      commissions incurred by the Purchasers, if any, in connection with an
      underwritten offering of the Registrable Securities;

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (viii) use
      all
      commercially reasonable efforts to prevent the issuance of any stop order or
      other order suspending the effectiveness of such Registration Statement and,
      if
      such an order is issued, to obtain the withdrawal thereof at the earliest
      possible time and to notify each Purchaser of the issuance of such order and
      the
      resolution thereof;

     

    (ix) furnish
      to each Purchaser, two (2) business days after the date that such Registration
      Statement becomes effective, (x) a letter, dated such date, of outside counsel
      representing the Company (and reasonably acceptable to such Purchaser) addressed
      to such Purchaser, confirming the effectiveness of such Registration Statement
      and, to the knowledge of such counsel, the absence of any stop order, and (y)
      in
      the case of an underwriting, an opinion addressed to such Purchaser, dated
      such
      date, of such outside counsel, in such form and substance as is required to
      be
      given to the underwriters; 

     

    (x) provide
      to each Purchaser and its representatives, if requested, the opportunity to
      conduct a reasonable inquiry of the Company’s financial and other records during
      normal business hours and make available its officers, directors and employees
      for questions regarding information which such Purchaser may reasonably request
      in order to fulfill any due diligence obligation on its part, provided,
      that in
      the case of this clause (x), the Company shall not be required to provide,
      and
      shall not provide, any Purchaser with material, non-public information unless
      such Purchaser agrees to receive such information and enters into a written
      confidentiality agreement with the Company; and

     

    (xi) not
      less
      than three trading days prior to the filing of a Registration Statement and
      not
      less than two trading days prior to the filing of any related Prospectus or
      any
      amendment or supplement thereto (including any document that would be
      incorporated or deemed to be incorporated therein by reference) or, in the
      case
      of comments made by the staff of the Commission and the Company’s responses
      thereto, within a reasonable period of time following the receipt thereof by
      the
      Company, furnish to each Purchaser copies of all such documents proposed to
      be
      filed or copies of such correspondence from and to the Commission relating
      to
      the Registration Statement, as the case may be, which documents (other than
      those incorporated or deemed to be incorporated by reference) will be subject
      to
      the review of such Purchasers. The Company shall reflect in each such document
      when so filed with the Commission such comments relating to such Purchaser
      as
      such Purchaser may reasonably propose; provided,
      however,
      that
      such comments from such Purchaser must be received by the Company no later
      than
      one trading day prior to the filing of such document with the Commission.
      Notwithstanding any other provision of this Agreement, the Company will have
      no
      obligation to deliver or make available to any Purchaser any Registration
      Statement or Prospectus containing any material, nonpublic information unless
      such Purchaser specifically consents in advance to receive such material,
      nonpublic information in writing and such Purchaser has executed an agreement
      to
      keep such material, nonpublic information confidential and refrain from trading
      in any Company security for so long as such information remains material,
      nonpublic information.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (b) The
      Company shall be permitted after the Required Effective Date, to suspend for
      one
      or more periods (each such period, a “Suspension”) the actions required under
      Sections 6.1(a)(i) through (iv) to the extent that the Board of Directors of
      the
      Company concludes in good faith and based on the advice of counsel that the
      disclosure of additional information in the prospectus
      is
      necessary. Notwithstanding the foregoing, the Company agrees that no Suspension
      shall be for a period of an aggregate in any 365-day period of longer than
      60
      days.

     

    (c) With
      a
      view to making available to the Purchasers the benefits of Rule 144 (or its
      successor rule) and any other rule or regulation of the Commission that may
      at
      any time permit the Purchaser to sell Registrable Securities to the public
      without registration, the Company covenants and agrees to: (i) make and keep
      public information available, as those terms are understood and defined in
      Rule
      144, until the earlier of (A) six months after such date as all of the
      Purchasers’ Registrable Securities may be resold pursuant to Rule 144(k) or any
      other rule of similar effect or (B) such date as all of the Purchasers’
Registrable Securities shall have been resold; (ii) file with the Commission
      in
      a timely manner all reports and other documents required of the Company under
      the Exchange Act; and (iii) furnish to the Purchaser upon request, as long
      as
      the Purchaser owns any Registrable Securities, (A) a written statement by the
      Company that it has complied with the reporting requirements of the Exchange
      Act, (B) a copy of the Company’s most recent Annual Report on Form 10-K or
      Quarterly Report on Form 10-Q, and (C) such other information as may be
      reasonably requested in order to avail the Purchaser of any rule or regulation
      of the Commission that permits the selling of any such Registrable Securities
      without registration.

    

    6.2 Delay
      in Filing or Effectiveness of Registration Statement.
       If:
      (a) a Registration Statement is not filed by the Company with the
      Commission on or prior to the Filing Date, or (b) a Registration Statement
      is not declared effective by the Commission on or prior to its Required
      Effective Date, (any such failure or breach being referred to as an “Event,” and
      for purposes of clauses (a) or (b) the date on which such Event occurs,
      being referred to as “Event Date”), then, in addition to any other rights
      available to the Purchasers, on each such Event Date and on each monthly
      anniversary of each such Event Date (if the applicable Event shall not have
      been
      cured by such date) until the applicable Event is cured, the Company shall
      pay
      to each Purchaser, as liquidated damages and not as a penalty, a cash payment
      equal to one and one-half percent (1.5%) of the aggregate purchase price paid
      by
      such Purchaser to the Company with respect to the Shares then held by such
      Purchaser. The parties agree that the Company will not be liable for liquidated
      damages under this Section 6.2 in respect of the Warrants or the Warrant Shares
      . The liquidated damages pursuant to the terms hereof shall apply on a pro
      rata
      basis for any portion of a month prior to the cure of an Event; provided
      that the
      maximum aggregate liquidated damages payable to a Purchaser under this
      Section 6.2 shall not exceed twelve percent (12%) of the aggregate purchase
      price of the Securities purchased by such Purchaser pursuant to this Agreement.
      The parties agree that such liquidated damages shall not be the exclusive
      damages under this Agreement with respect to the occurrence of such
      Event.

     

    6.3 Restrictions
      on Transferability. 

     

    (a) Each
      Purchaser agrees that it will not effect any disposition of the Securities
      (including the Warrant Shares) or its right to purchase the Securities
      (including any Warrant Shares) that would constitute a sale within the meaning
      of the Securities Act or pursuant to any applicable state securities or Blue
      Sky
      laws of any state, except (i) as contemplated in the Registration Statement
      referred to in Section 6.1 above, (ii) pursuant to the requirements of Rule
      144
      (in which case such Purchaser will provide the Company with reasonable evidence
      of such Purchaser’s compliance therewith) or (iii) pursuant to a written opinion
      of legal counsel reasonably satisfactory to the Company and addressed to the
      Company to the effect that registration under Section 5 of the Securities Act
      is
      not required in connection with the proposed transfer; whereupon the holder
      of
      such securities shall be entitled to transfer such securities. Each certificate
      evidencing the securities transferred as above provided shall bear the
      appropriate restrictive legends as may be required by Section 7.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (b) Each
      Purchaser acknowledges that there may occasionally be times when the Company
      must suspend the use of the prospectus forming a part of the Registration
      Statement until such time as an amendment or supplement to the Registration
      Statement has been filed by the Company and declared effective, or until such
      time as the Company has filed an appropriate report with the Commission pursuant
      to the Exchange Act. Each Purchaser hereby covenants that such Purchaser will
      not sell any Securities (including the Warrant Shares) pursuant to said
      prospectus during the period commencing at the time at which the Company gives
      the Purchasers written notice of the suspension of the use of said prospectus
      and ending at the time the Company gives the Purchasers written notice that
      the
      Purchasers may thereafter effect sales pursuant to said prospectus. The Company
      agrees to file such amendment, supplement or report as soon as practicable
      following such notice of Suspension.

     

    (c) None
      of
      the Securities (including the Warrant Shares) shall be transferable except
      upon
      the conditions specified in this Section 6, which are intended to ensure
      compliance with the provisions of the Securities Act. Each Purchaser will cause
      any proposed transferee of the Securities (including the Warrant Shares) held
      by
      such Purchaser to agree to take and hold such Securities (including the Warrant
      Shares) subject to the provisions and upon the conditions specified in this
      Section 6 if and to the extent that such Securities continue to be restricted
      securities in the hands of the transferee. 

    

    (d) Such
      Purchaser covenants that such Purchaser will sell or transfer the Securities
      (including the Warrant Shares) in accordance with such Registration Statement,
      the Securities Act, applicable state securities laws and, to the extent the
      exemption from prospectus delivery requirements in Rule 172 under the
      Securities Act is not available, satisfy the requirement of delivering a current
      prospectus in connection with any proposed transfer or sale of the Securities
      (including the Warrant Shares).

     

    6.4 Furnish
      Information. It
      shall
      be a condition to the Company’s obligations to take any action under this
      Agreement with respect to the registration of a Purchaser’s Registrable
      Securities that such Purchaser shall promptly furnish to the Company, upon
      request, such reasonable and customary information regarding itself, such
      Purchaser’s Registrable Securities, and the intended method of disposition of
      such Registrable Securities if such intended method of distribution is different
      from the Plan of Distribution in form of Appendix II attached hereto. In
      connection therewith, each Purchaser shall be required to represent to the
      Company that all such information which is given is both complete and accurate
      in all material respects when made.

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    6.5 Termination
      of Conditions and Obligations.

    

    (a) The
      conditions precedent imposed by Section 6.3 above regarding the transferability
      of the Securities (including the Warrant Shares) shall cease and terminate
      as to
      any particular number of Securities (including the Warrant Shares) upon the
      passage of two years from the date hereof or at such time as an opinion of
      counsel satisfactory in form and substance to the Company shall have been
      rendered to the effect that such conditions are not necessary in order to comply
      with the Securities Act.

    

    (b) The
      expiration or termination of this Agreement for any reason will have no effect
      on the rights of any of the parties under the provisions of this Section
      6.

     

    
      
        Section
          7. Legends.

      

    

    

    (a) Such
      Purchaser understands and agrees that each certificate or other document
      evidencing any of the Securities (including the Warrant Shares) shall be
      endorsed with the legend in the form set forth below, and such Purchaser
      covenants that such Purchaser will not transfer the Securities (including the
      Warrant Shares) represented by any such certificate without complying with
      the
      restrictions on transfer described in the legend endorsed on such certificate
      (unless there is in effect a registration statement under the Securities Act
      covering such proposed transfer, such Securities (including the Warrant Shares)
      have been sold under Rule 144 promulgated under the Securities Act (“Rule 144”)
      or as otherwise permitted by the provisions of Section 6.3 above) and
      understands that the Company will refuse to register a transfer of any
      Securities (including the Warrant Shares) unless the conditions specified in
      the
      following legend are satisfied: 

    

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. EXCEPT AS
      SPECIFIED IN THIS LEGEND, SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE,
      PLEDGED OR HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A
      REGISTRATION STATEMENT IN EFFECT WITH RESPECT THERETO UNDER SUCH ACT UNLESS
      SOLD
      PURSUANT TO RULE 144 OF SUCH ACT OR UNLESS SUCH SALE, PLEDGE, HYPOTHECATION
      OR
      TRANSFER IS OTHERWISE EXEMPT FROM REGISTRATION AND ANY APPLICABLE STATE
      SECURITIES LAWS. THE COMPANY MAY REQUEST A WRITTEN OPINION OF COUNSEL,
      REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS
      NOT
      REQUIRED IN CONNECTION WITH SUCH SALE OR OTHER TRANSFER.”

     

    (b) Such
      certificates shall not contain any legend (i) while a Registration Statement
      covering the resale of the Securities (including the Warrant Shares) is
      effective under the Securities Act, (ii) following any sale of the Securities
      (including the Warrant Shares) pursuant to an effective Registration Statement
      or Rule 144, or (iii) if the Securities (including the Warrant Shares) are
      eligible for sale under Rule 144(k). Following the effective date of the
      Registration Statement or at such earlier time as a legend is no longer required
      for certain Securities (including the Warrant Shares), the Company will, no
      later than three trading days following the delivery by a Purchaser to the
      Company of a written request for an unlegended certificate representing such
      securities, take such actions as are necessary for the Company’s transfer agent
      to deliver or cause to be delivered to such Purchaser a certificate representing
      such securities that is free from all restrictive and other
      legends.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (c) Such
      Purchaser covenants that such Purchaser will not transfer the Securities
      (including the Warrant Shares) represented by any such certificate without
      complying with any applicable requirements under the Securities Act to deliver
      the final prospectus included in the effective Registration Statement to any
      offeree of the Registrable Securities. 

     

    
      
        Section
          8. Indemnification.
          

      

    

     

    (a) For
      purposes of this Section 8 only: 

     

    (i) the
      term
“Purchaser” shall include the Purchaser and any affiliate (as such term is
      defined pursuant to Rule 12b-2 promulgated under the Exchange Act) of such
      Purchaser; 

     

    (ii) the
      term
“Prospectus” shall mean the prospectus and any amendment or supplement thereto
      in the form first filed with the Commission pursuant to Rule 424(b) promulgated
      under the Securities Act or, if no Rule 424(b) filing is required, filed as
      part
      of the Registration Statement at the time of effectiveness, as supplemented
      or
      amended from time to time; and 

     

    (iii) the
      term
“Registration Statement” shall include any final prospectus, exhibit, supplement
      or amendment included in or relating to the Registration Statement. 

     

    (b) The
      Company agrees to indemnify and hold harmless each of the Purchasers and each
      Person, if any, who controls any Purchaser within the meaning of the Securities
      Act, against any losses, claims, damages, liabilities or expenses, joint or
      several, to which such Purchasers or such controlling Person may become subject,
      under the Securities Act, the Exchange Act, or any other federal or state
      statutory law or regulation, or at common law or otherwise (including in
      settlement of any litigation, if such settlement is effected with the written
      consent of the Company), insofar as such losses, claims, damages, liabilities
      or
      expenses (or actions in respect thereof as contemplated below) arise out of
      or
      are based upon any untrue statement or alleged untrue statement of any material
      fact contained in the Registration Statement or 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,
      in
      light of the circumstances in which they were made, not misleading, or arise
      out
      of or are based in whole or in part on any inaccuracy in the representations
      and
      warranties of the Company contained in this Agreement, or arise out of the
      Company’s failure to provide written notice of a Suspension, or any failure of
      the Company to perform its obligations hereunder, and will reimburse each
      Purchaser and each such controlling Person for any legal and other expenses
      reasonably incurred as such expenses are reasonably incurred by such Purchaser
      or such controlling Person in connection with investigating, defending,
      settling, compromising or paying any such loss, claim, damage, liability,
      expense or action; provided, however, that the Company will not be liable in
      any
      such case to the extent that any such loss, claim, damage, liability or expense
      arises out of or is based upon (i) an untrue statement or alleged untrue
      statement or omission or alleged omission made in the Registration Statement
      or
      Prospectus in reliance upon and in conformity with written information furnished
      to the Company by or on behalf of the Purchaser expressly for use therein,
      (ii)
      the failure of such Purchaser to comply with the covenants and agreements
      contained in Section 6 above respecting sale of the Securities (including the
      Warrant Shares), (iii) the inaccuracy of any representations made by such
      Purchaser herein.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (c) Each
      Purchaser will severally, and not jointly, indemnify and hold harmless the
      other
      Purchasers and the Company, each of its directors, each of its officers who
      signed the Registration Statement and each Person, if any, who controls the
      Company within the meaning of the Securities Act, against any losses, claims,
      damages, liabilities or expenses to which the Company, each of its directors,
      each of its officers who signed the Registration Statement or controlling Person
      may become subject, under the Securities Act, the Exchange Act, or any other
      federal or state statutory law or regulation, or at common law or otherwise
      (including in settlement of any litigation, if such settlement is effected
      with
      the written consent of such Purchaser) insofar as such losses, claims, damages,
      liabilities or expenses (or actions in respect thereof as contemplated below)
      arise out of or are based upon (i) any failure by such Purchaser to comply
      with
      the covenants and agreements contained in Section 6.3 above respecting the
      sale
      of the Securities (including the Warrant Shares) unless such failure by such
      Purchaser is directly caused by the Company’s failure to provide written notice
      of a Suspension to such Purchaser, (ii) the inaccuracy of any representation
      made by such Purchaser herein or (iii) any untrue or alleged untrue statement
      of
      any material fact contained in the Registration Statement or the Prospectus,
      or
      the omission or alleged omission to state therein a material fact required
      to be
      stated therein or necessary to make the statements therein, in light of the
      circumstances in which they were made, not misleading, in each case to the
      extent, but only to the extent, that such untrue statement or alleged untrue
      statement or omission or alleged omission was made in the Registration Statement
      or Prospectus in reliance upon and in conformity with written information
      furnished to the Company by or on behalf of such Purchaser expressly for use
      therein, and will reimburse the Company, each of its directors, each of its
      officers who signed the Registration Statement or controlling Person for any
      legal and other expense reasonably incurred, as such expenses are reasonably
      incurred by the Company, each of its directors, each of its officers who signed
      the Registration Statement or controlling Person in connection with
      investigating, defending, settling, compromising or paying any such loss, claim,
      damage, liability, expense or action; provided, however, that the aggregate
      liability of any Purchaser hereunder shall not exceed the net proceeds received
      by such Purchaser upon the sale of the Registrable Securities included in the
      Registration Statement or Prospectus giving rise to such indemnification
      obligation. No Purchaser shall be liable for the indemnification obligations
      of
      any other Purchaser.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (d) Promptly
      after receipt by an indemnified party under this Section 8 of notice of the
      threat or commencement of any action, such indemnified party will, if a claim
      in
      respect thereof is to be made against an indemnifying party under this Section
      8, promptly notify the indemnifying party in writing thereof, but the omission
      so to notify the indemnifying party will not relieve it from any liability
      which
      it may have to any indemnified party hereunder or otherwise to the extent it
      is
      not prejudiced as a result of such failure. In case any such action is brought
      against any indemnified party and such indemnified party seeks or intends to
      seek indemnity from an indemnifying party, the indemnifying party will be
      entitled to participate in, and, to the extent that it may wish, jointly with
      all other indemnifying parties similarly notified, to assume the defense thereof
      with counsel reasonably satisfactory to such indemnified party; provided,
      however, if the defendants in any such action include both the indemnified
      party
      and the indemnifying party and the indemnified party shall have reasonably
      concluded that there may be a conflict between the positions of the indemnifying
      party and the indemnified party in conducting the defense of any such action
      or
      that there may be legal defenses available to it and/or other indemnified
      parties which are different from or additional to those available to the
      indemnifying party, the indemnified party or parties shall have the right to
      select separate counsel to assume such legal defenses and to otherwise
      participate in the defense of such action on behalf of such indemnified party
      or
      parties. Upon receipt of notice from the indemnifying party to such indemnified
      party of its election to assume the defense of such action and approval by
      the
      indemnified party of counsel, the indemnifying party will not be liable to
      such
      indemnified party under this Section 8 for any legal or other expenses
      subsequently incurred by such indemnified party in connection with the defense
      thereof unless (i) the indemnified party shall have employed such counsel in
      connection with the assumption of legal defenses in accordance with the proviso
      to the preceding sentence (it being understood, however, that the indemnifying
      party shall not be liable for the expenses of more than one separate counsel,
      reasonably satisfactory to the indemnifying party, representing the indemnified
      parties who are parties to such action) or (ii) the indemnified party shall
      not
      have employed counsel reasonably satisfactory to the indemnified party to
      represent the indemnified party within a reasonable time after notice of
      commencement of action, in each of which cases the reasonable fees and expenses
      of counsel shall be at the expense of the indemnifying party.
      No
      indemnifying party, in the defense of any claim covered by this Section 8,
      shall, except with the prior written consent of the indemnified party, which
      consent shall not be unreasonably conditioned, withheld or delayed, consent
      to
      entry of any judgment or enter into any settlement which does not include as
      an
      unconditional term thereof the giving by the claimant or plaintiff to such
      indemnified party of a release from all liability in respect to such claim.
      An
      indemnified party shall not consent to entry of any judgment or enter into
      any
      settlement without the prior written consent of the indemnifying
      party.

     

    
      
        Section
          9. Notices.

      

    

    

    (a)
      All
      notices, requests, consents and other communications hereunder shall be in
      writing, shall be mailed by first-class registered or certified airmail,
      confirmed facsimile or nationally recognized overnight express courier postage
      prepaid, and shall be as addressed as follows: 

     

    if
      to the
      Company, to:

    

    North
      American Scientific, Inc.

    20200
      Sunburst Street

    Chatsworth,
      California 91311

    Attention:
      David King

    Telephone
      No.: (818) 734-8600

    Telecopy
      No.: (818) 734-5224

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    with
      a
      copy to:

    

    Prior
      to
      September 1, 2006:

    Seyfarth
      Shaw LLP

    55
      East
      Monroe Street, Ste. 4200

    Chicago,
      Illinois 60603

    Attention:
      Allan Reich

    Telephone
      No.: (312) 781-8650

    Telecopy
      No.: (312) 269-8869

    

    After
      September 1, 2006:

    Seyfarth
      Shaw LLP

    131
      South
      Dearborn Street, Ste. 2400

    Chicago,
      Illinois 60603

    Attention:
      Allan Reich

    Telephone
      No.: (312) 460-5000

    Telecopy
      No.: (312) 460-7000

    

    and
      if to
      any Purchaser, at its address as set forth in Appendix I hereto, or at such
      other address or addresses as may have been previously furnished to the Company
      in writing in accordance with this Section 9. 

     

    (b) Such
      notices or other communications shall be deemed delivered upon receipt, in
      the
      case of overnight delivery, personal delivery, facsimile transmission (as
      evidenced by the confirmation thereof), or mail. 

     

    
      
        Section
          10. Miscellaneous. 

         

      

    

    10.1 Amendments.
      Any
      term of this Agreement may be amended and the observance of any term of this
      Agreement may be waived (either generally or in a particular instance and either
      retroactively or prospectively) only with the written consent of the Company
      and
      each Purchaser. Any amendment or waiver effected in accordance with this Section
      10.1 shall be binding upon each holder of any securities purchased under this
      Agreement at the time outstanding (including securities into which such
      securities are convertible), each future holder of all such securities, and
      the
      Company.

     

    10.2 Headings.
      The
      headings of the various sections of this Agreement are for convenience of
      reference only and shall not be deemed to be part of this Agreement.

     

    10.3 Severability.
      In the
      event that any provision in this Agreement is held to be invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions contained herein shall not in any way be affected or
      impaired thereby. 

     

    10.4 Governing
      Law and Forum.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to agreements made and to be fully performed
      therein. The parties hereto agree to submit to the exclusive jurisdiction of
      the
      federal and state courts of the State of New York with respect to the
      interpretation of this Agreement or for the purposes of any action arising
      out
      of or related to this Agreement. 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    10.5 Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      constitute an original, and all of which together shall constitute one and
      the
      same instrument. In the event that any signature is delivered via facsimile
      transmission, such signature shall create a valid and binding obligation of
      the
      party executing (or on whose behalf such signature is executed) the same with
      the same force and effect as if such facsimile signature page were an original
      hereof. 

     

    10.6 Entire
      Agreement.
      This
      Agreement contains the entire understanding of the parties with respect to
      the
      matters covered herein, supersede all prior agreements and understandings with
      respect to such matters and executed by and among the Company and any of the
      Purchasers, and, except as specifically set forth herein or therein, neither
      the
      Company nor the Purchasers make any representation, warranty, covenant or
      undertaking with respect to such matters. 

     

    10.7 Independent
      Nature of Purchasers’ Obligations and Rights.
      The
      obligations of each Purchaser under this Agreement are several and not joint
      with the obligations of any other Purchaser, and no Purchaser shall be
      responsible in any way for the performance of the obligations of any other
      Purchaser under this Agreement. Nothing contained herein and no action taken
      by
      any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers
      as
      a partnership, an association, a joint venture or any other kind of entity,
      or
      create a presumption that the Purchasers are in any way acting in concert or
      as
      a group, or are deemed affiliates (as such term is defined under the Exchange
      Act) with respect to such obligations or the transactions contemplated by this
      Agreement. Each Purchaser shall be entitled to independently protect and enforce
      its rights, including without limitation the rights arising out of this
      Agreement, and it shall not be necessary for any other Purchaser to be joined
      as
      an additional party in any proceeding for such purpose.

     

    10.8 Expenses.
      Each
      party hereto shall pay all costs and expenses incurred by it in connection
      with
      the execution and delivery of this Agreement, and all the transactions
      contemplated thereby, including fees of legal counsel. 

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

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

     

    
      	 	
              NORTH
                AMERICAN SCIENTIFIC, INC.

              

              

              

              By:
                /s/ L.Michael
                Cutrer                                 
                

              Name:
                L. Michael Cutrer

              Title:  
                President and Chief Executive
                Officer

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
[Investor
      Signature Page]

    

    PURCHASER:

    

    Print
      or
      Type:

    Name
      of
      Purchaser (Individual or Institution): 

    

    _________________________________________

    

    Name
      of
      Individual representing Purchaser (if an Institution): 

    

    
      _________________________________________

    

    

    Title
      of
      Individual representing Purchaser (if an Institution): 

    

    
      _________________________________________

    

    

    Signature
      by Individual Purchaser or Individual Representing Purchaser: 

    

    
      _________________________________________

    

    

    Address:
      _______________________________________

    

     
      _______________________________________

    

    Telephone:
      ______________________________________

    

    Telecopier:
      ______________________________________

    

    e-mail:
      __________________________________________

    

    

    
      	
              Shares
                to be Purchased

            	
              Warrants
                to be Purchased

            	
              Price
                Per Share in Dollars

            	
              Aggregate
                Price

            
	 	 	 	 
	 	 	 	 

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      
 

    

    Appendix
      I

    (Page
      1
      of 4)

    

    SECURITIES
      CERTIFICATE QUESTIONNAIRE

    

    Pursuant
      to Section 2.2(b) of the Agreement, please provide us with the following
      information:

    

    
      	
              1.

            	
              The
                exact name that your Shares
                and Warrant Shares are to be registered in (this is the name that
                will
                appear on your stock certificate(s) and warrant
                certificate).

            

    

     

    You
      may
      use a nominee name if appropriate:

    

    ___________________________________

    

    
      	
              2.

            	
              The
                relationship between the Purchaser

            

    

    of
      the
      Securities and the Registered Holder listed 

    in
      response to item 1 above:

    

    ___________________________________

    

    
      	
              3.

            	
              The
                mailing address of the Registered
                Holder

            

    

    listed
      in
      response to item 1 above:

    

    ___________________________________

    

    
      	
              4.

            	
              The
                Social Security Number or Tax

            

    

    Identification
      Number of the Registered

    Holder
      listed in response to item 1 above:

    

    ___________________________________

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    Appendix
      I

    (Page
      2
      of 4)

    

    NORTH
      AMERICAN SCIENTIFIC, INC.

    REGISTRATION
      STATEMENT QUESTIONNAIRE

    

    In
      connection with the preparation of the Registration Statement, please provide
      us
      with the following information:

    

    Plan
      of Distribution

    

    Attached
      as Appendix II hereto is a draft of the "Plan of Distribution" section of the
      Registration Statement. Do you propose to offer or sell any shares of Common
      Stock to be registered on the Registration Statement by means other than those
      described in Appendix II?

    

    o
      Yes  o
      No

    

    If
      "yes",
      please describe the manner in which you propose to offer or sell such Shares
      of
      Common Stock:

    

    ___________________________________________________________________________

    

    ___________________________________________________________________________

    

    ___________________________________________________________________________

    

    Selling
      Stockholders

    

    Pursuant
      to the “Selling Stockholder” section of the Registration Statement, please state
      your or your organization’s name exactly as it should appear in the Registration
      Statement:

    

    ___________________________________

    

    Please
      provide the number of shares that you or your organization will own immediately
      after Closing, including those Securities purchased by you or your organization
      pursuant to this Purchase Agreement and those shares purchased by you or your
      organization through other transactions:

    
___________________________________

    

    Have
      you
      or your organization had any position, office or other material relationship
      within the past three years with the Company or its affiliates?

    

    Yes             No

    

    If
      yes,
      please indicate the nature of any such relationships below:

    ____________________________________________________

    ____________________________________________________

    ____________________________________________________

    

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

      
        Appendix
          I

        (Page 3
          of 4)

      

       

       

    

    Are
      you
      (i) an NASD Member (see definition), (ii) a Controlling (see definition)
      shareholder of an NASD Member, (iii) a Person Associated with a Member of the
      NASD (see definition), (iv) an Underwriter or a Related Person (see definition)
      with respect to the proposed offering; (v) do you own any shares or other
      securities of any NASD Member not purchased in the open market; or (vi) have
      you
      made any outstanding subordinated loans to any NASD Member?

    

    Answer:
      o Yes o
      No If “yes”, please describe
      below:

    

    ________________________________________

    ________________________________________

    ________________________________________

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    Appendix
      I 

    (Page 4
      of 4)

    

    NASD
      Member. The term “NASD member” means either any broker or dealer admitted to
      membership in the National Association of Securities Dealers, Inc. (“NASD”).
      (NASD Manual, By-laws Article I, Definitions)

    

    Control.
      The term “control” (including the terms “controlling,” “controlled by” and
“under common control with”) means the possession, direct or indirect, of the
      power, either individually or with others, to direct or cause the direction
      of
      the management and policies of a person, whether through the ownership of voting
      securities, by contract, or otherwise. (Rule 405 under the Securities Act of
      1933, as amended)

    

    Person
      Associated with a member of the NASD. The term “person associated with a member
      of the NASD” means every sole proprietor, partner, officer, director, branch
      manager or executive representative of any NASD Member, or any natural person
      occupying a similar status or performing similar functions, or any natural
      person engaged in the investment banking or securities business who is directly
      or indirectly controlling or controlled by a NASD Member, whether or not such
      person is registered or exempt from registration with the NASD pursuant to
      its
      by-laws. (NASD Manual, By-laws Article I, Definitions)

    

    Underwriter
      or a Related Person. The term “underwriter or a related person” means, with
      respect to a proposed offering, underwriters, underwriters’ counsel, financial
      consultants and advisors, finders, members of the selling or distribution group,
      and any and all other persons associated with or related to any of such persons.
      (NASD Interpretation)

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    Appendix
      II

    

    FORM
      OF
      PLAN OF DISTRIBUTION

    

    The
      selling stockholders, which as used herein includes donees, pledgees,
      transferees or other successors-in-interest selling shares received after the
      date of this prospectus from a selling stockholder as a gift, pledge,
      partnership distribution or other transfer, may, from time to time, sell,
      transfer or otherwise dispose of any or all of their shares on any stock
      exchange, market or trading facility on which the shares are traded or in
      private transactions. These dispositions may be at fixed prices, at prevailing
      market prices at the time of sale, at prices related to the prevailing market
      price, at varying prices determined at the time of sale, or at negotiated
      prices.

    

    The
      selling stockholders may use any one or more of the following methods when
      disposing of shares:

    

    
      	 	
              •

            	
              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 effected after the date the registration statement of which
                this
                Prospectus is a part is declared effective by the
                SEC;

            

    

    

    
      	 	
              •

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or
                otherwise;

            

    

    

    
      	 	
              •

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

            

    

    

    
      	 	
              •

            	
              a
                combination of any such methods of sale;
                or

            

    

    

    
      	
            	•	
              any
                other method permitted pursuant to applicable
                law.

            

    

    

    The
      selling stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus. The selling stockholders
      are not obligated to, and there is no assurance that the selling stockholders
      will, sell all or any of the shares we are registering. The selling stockholders
      may transfer, devise or gift such shares by other means not described in this
      prospectus.

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    In
      connection with the sale of our shares, the selling stockholders may enter
      into
      hedging transactions with broker-dealers or other financial institutions, which
      may in turn engage in short sales of the common stock in the course of hedging
      the positions they assume. The selling stockholders may also sell shares of
      our
      common stock short and deliver these securities to close out their short
      positions, or loan or pledge the common stock to broker-dealers that in turn
      may
      sell these securities. The selling stockholders may also enter into option
      or
      other transactions with broker-dealers or other financial institutions or the
      creation of one or more derivative securities which require the delivery to
      such
      broker-dealer or other financial institution of shares offered by this
      prospectus, which shares such broker-dealer or other financial institution
      may
      resell pursuant to this prospectus (as supplemented or amended to reflect such
      transaction).

    

    The
      aggregate proceeds to the selling stockholders from the sale of the common
      stock
      offered by them will be the purchase price of the common stock less discounts
      or
      commissions, if any. Each of the selling stockholders reserves the right to
      accept and, together with their agents from time to time, to reject, in whole
      or
      in part, any proposed purchase of common stock to be made directly or through
      agents. We will not receive any of the proceeds from this offering. Upon any
      exercise of the warrants by payment of cash, however, we will receive the
      exercise price of the warrants.

    

    Broker-dealers
      engaged by the selling stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the selling stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. The
      selling stockholders do not expect these commissions and discounts to exceed
      what is customary in the types of transactions involved. Any profits on the
      resale of shares by a broker-dealer acting as principal might be deemed to
      be
      underwriting discounts or commissions under the Securities Act. Discounts,
      concessions, commissions and similar selling expenses, if any, attributable
      to
      the sale of shares will be borne by a selling stockholder. The selling
      stockholders may agree to indemnify any agent, dealer or broker-dealer that
      participates in transactions involving sales of the shares if liabilities are
      imposed on that person under the Securities Act.

    

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares.  The Company has agreed to
      indemnify the selling stockholders against certain losses, claims, damages
      and
      liabilities, including liabilities under the Securities Act.

    

    The
      selling stockholders, broker-dealers or agents that participate in the sale
      of
      the common stock may be “underwriters” within the meaning of Section 2(11) of
      the Securities Act. Any discounts, commissions, concessions or profit they
      earn
      on any resale of the shares may be underwriting discounts and commissions under
      the Securities Act. Selling stockholders who are “underwriters” within the
      meaning of Section 2(11) of the Securities Act will be subject to the prospectus
      delivery requirements of the Securities Act. There is no underwriter or
      coordinating broker acting in connection with the proposed sale of the resale
      shares by the selling stockholders.

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    The
      selling stockholders may from time to time pledge or grant a security interest
      in some or all of the shares owned by them and, if they default in the
      performance of any of their secured obligations, the pledgees or secured parties
      may offer and sell the shares from time to time under this prospectus as it
      may
      be supplemented from time to time, or under an amendment to this prospectus
      under Rule 424(b)(3) or other applicable provision of the Securities Act
      amending the list of selling stockholders to include the pledgee, transferee
      or
      other successors in interest as selling stockholders under this
      prospectus.

    

    To
      the
      extent required, the shares to be sold, the names of the selling stockholders,
      the respective purchase prices and public offering prices, the names of any
      agents, dealer or underwriter, any applicable commissions or discounts with
      respect to a particular offer will be set forth in an accompanying prospectus
      supplement or, if appropriate, a post-effective amendment to the registration
      statement that includes this prospectus.

    

    In
      order
      to comply with the securities laws of some states, if applicable, the common
      stock may be sold in these jurisdictions only through registered or licensed
      brokers or dealers. In addition, in some states the common stock may not be
      sold
      unless it has been registered or qualified for sale or an exemption from
      registration or qualification requirements is available and is complied
      with.

    

    The
      anti-manipulation rules of Regulation M under the Exchange Act may apply to
      sales of shares in the market and to the activities of the selling stockholders
      and their affiliates. In addition, we will make copies of this prospectus (as
      it
      may be supplemented or amended from time to time) available to the selling
      stockholders for the purpose of satisfying the prospectus delivery requirements
      of the Securities Act. The selling stockholders may indemnify any broker-dealer
      that participates in transactions involving the sale of the shares against
      certain liabilities, including liabilities arising under the Securities
      Act.

    

    We
      have
      agreed with the selling stockholders to keep the registration statement of
      which
      this prospectus constitutes a part effective until the earlier of (1) such
      time
      as all of the shares covered by this prospectus have been disposed of pursuant
      to and in accordance with the registration statement or (2) the date on which
      the shares may be sold pursuant to Rule 144(k) of the Securities
      Act.

    

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    FORM
      OF
      COMPANY COUNSEL OPINION

    

    

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

    

    FORM
      OF
      MCDERMOTT, WILL & EMERY IP OPINION

    

    

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      C

    

    FORM
      OF
      GENERAL COUNSEL OF THE COMPANY IP. REGULATORY AND LITIGATION
      OPINION

     

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    FORM
      OF
      LOCK-UP AGREEMENT

    

    

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      E

    

    DISCLOSURE
      SCHEDULES

     

    
 

    
      
        
        

      

      
        39

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]