Document:

newcardio_ex1001.htm

    Exhibit10.1

    SECURITIES
PURCHASE AGREEMENT

     

    This
Securities Purchase Agreement (this “ Agreement ”) is dated
as of December 27, 2007, between Marine Park Holdings, Inc., a Delaware
corporation (the “ Company ”), and each
purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “ Purchaser ” and
collectively the “ Purchasers
”).

     

    WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the “ Securities Act ”),
and Rule 506 promulgated thereunder, the Company desires to issue and sell to
each Purchaser, and each Purchaser, severally and not jointly, desires to
purchase from the Company, securities of the Company as more fully described in
this Agreement.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser agree as
follows:

     

    ARTICLE
I

    DEFINITIONS

     

    1.1
  Definitions . In
addition to the terms defined elsewhere in this Agreement: (a) capitalized terms
that are not otherwise defined herein have the meanings given to such terms in
the Certificate of Designation (as defined herein), and (b) the following terms
have the meanings set forth in this Section 1.1:

     

    “ Action ” shall have
the meaning ascribed to such term in Section 3.1(j).

     

    “ Affiliate ” means any
Person that, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with a Person, as such terms are
used in and construed under Rule 405 under the Securities Act. With respect to a
Purchaser, any investment fund or managed account that is managed on a
discretionary basis by the same investment manager as such Purchaser will be
deemed to be an Affiliate of such Purchaser.

     

    “ Board of Directors ”
  means the board of directors of the Company.

     

    “ Business Day ” means
any day except any Saturday, any Sunday, any day which is a federal legal
holiday in the United States or any day on which banking institutions in the
State of New York are authorized or required by law or other governmental action
to close.

     

    “ Certificate of
Designation ” means the Certificate of Designation to be filed prior to
the Closing by the Company with the Secretary of State of Delaware, in the form
of Exhibit A
attached hereto.

     

    “ Closing ” means the
closing of the purchase and sale of the Securities pursuant to Section
2.1.

     

    

    

    
      
         

      

      
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    “ Closing Date ” means
the Trading Day when all of the Transaction Documents have been executed and
delivered by the applicable parties thereto, and all conditions precedent to (i)
the Purchasers’ obligations to pay the Subscription Amount and (ii) the
Company’s obligations to deliver the Securities have been satisfied or
waived.

     

    “ Commission ” means
the Securities and Exchange Commission.

     

    “ Common Stock ” means
the common stock of the Company, par value $0.001 per share, and any other class
of securities into which such securities may hereafter be reclassified or
changed into.

     

    “ Common Stock
Equivalents ” means any securities of the Company or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

     

    “ Company Counsel ”
means Sichenzia Ross Friedman Ference LLP, with offices located at 61 Broadway,
32 nd Floor,
New York, NY 10006.

     

    “ Conversion Price ”
shall have the meaning ascribed to such term in the Certificate of
Designation.

     

    “ Disclosure Schedules
” shall have the meaning ascribed to such term in Section 3.1.

     

    “ Effective Date ”
means the date that the initial Registration Statement filed by the Company
pursuant to the Registration Rights Agreement is first declared effective by the
Commission.

     

    “ Employee Stock Option
Plan ” shall mean an employee stock option plan in which the underlying
Common Stock Equivalents do not exceed 31% of the issued and outstanding Common
Stock immediately following the Merger and the issuance of the Preferred
Stock.

     

    “ Escrow Agent ” means
Signature Bank, having an address at 261 Madison Avenue, New York, NY
10016.

     

    “ Escrow Agreement ”
means the escrow agreement entered into prior to the date hereof, by and among
the Company and the Escrow Agent pursuant to which the Purchasers, shall deposit
Subscription Amounts with the Escrow Agent to be applied to the transactions
contemplated hereunder.

     

    “ Evaluation Date ”
shall have the meaning ascribed to such term in Section 3.1(r).

     

    

     

    
      
         

      

      
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    “ Exchange Act ” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    “ Exempt Issuance ”
means the issuance of (a) shares of Common Stock or options to employees,
officers or directors of the Company pursuant to the Employee Stock Option Plan,
(b) securities upon the exercise or exchange of or conversion of any Securities
issued hereunder and/or other securities exercisable or exchangeable for or
convertible into shares of Common Stock issued and outstanding on the date of
this Agreement, provided that such securities have not been amended since the
date of this Agreement to increase the number of such securities or to decrease
the exercise, exchange or conversion price of such securities, and (c)
securities issued pursuant to acquisitions or strategic transactions approved by
a majority of the disinterested directors of the Company, provided that any such
issuance shall only be to a Person which is, itself or through its subsidiaries,
an operating company in a business synergistic with the business of the Company
and in which the Company receives benefits in addition to the investment of
funds, but shall not include a transaction in which the Company is issuing
securities primarily for the purpose of raising capital or to an entity whose
primary business is investing in securities.

    

    “ FWS ” means Feldman
Weinstein & Smith LLP with offices located at 420 Lexington Avenue, Suite
2620, New York, New York 10170-0002.

    

    “ GAAP ” shall have the
meaning ascribed to such term in Section 3.1(h).

    

    “ Indebtedness ” shall
have the meaning ascribed to such term in Section 3.1(aa).

    

    “ Intellectual Property
Rights ” shall have the meaning ascribed to such term in Section
3.1(o).

    

    “ Legend Removal Date ”
shall have the meaning ascribed to such term in Section 4.1(c).

    

    “ Liens ” means a lien,
charge, security interest, encumbrance, right of first refusal, preemptive right
or other restriction.

     

    “ Material Adverse
Effect ” shall have the meaning assigned to such term in Section
3.1(b).

    

    “ Material Permits ”
shall have the meaning ascribed to such term in Section 3.1(m).

    

    “ Maximum Rate ” shall
have the meaning ascribed to such term in Section 5.17.

     

    

     

    
      
         

      

      
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    “ Merger ” means the
closing of the acquisition of 100% of the issued and outstanding capital stock
of NewCardio, Inc., (the “ New Cardio Subsidiary
”), a Delaware corporation, by the Company pursuant to that certain Share
Exchange Agreement among the Company, the New Cardio Subsidiary, and the
shareholders of the New Cardio Subsidiary, dated December __, 2007.

    

    “ Merger 8-K ” shall
have the meaning ascribed to such term in Section 3.1(y).

    

    “ Merger Agreement ”
means that certain Share Exchange Agreement among the Company, the New Cardio
Subsidiary, and the shareholders of the New Cardio Subsidiary, dated December
__, 2007.

    

    “ Merger Date ” means
the date of the consummation of the Merger.

    

    “ Participation Maximum
” shall have the meaning ascribed to such term in Section 4.12.

    

    “ Person ” means an
individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any
kind.

    

    “ Preferred Stock ”
means the up to 12,000 shares of the Company’s 10% Series A Convertible
Preferred Stock issued hereunder having the rights, preferences and privileges
set forth in the Certificate of Designation, in the form of Exhibit A
hereto.

    

    “ Pre-Notice ” shall
have the meaning ascribed to such term in Section 4.12.

    

    “ Proceeding ” means an
action, claim, suit, investigation or proceeding (including, without limitation,
an informal investigation or partial proceeding, such as a deposition), whether
commenced or threatened.

    

    “ Purchaser Party ”
shall have the meaning ascribed to such term in Section 4.10.

    

    “ Registration Rights
Agreement ” means the Registration Rights Agreement, dated the date
hereof, among the Company and the Purchasers, in the form of Exhibit B attached
hereto.

    

    “ Registration
Statement ” means a registration statement meeting the requirements set
forth in the Registration Rights Agreement and covering the resale of the
Underlying Shares by each Purchaser as provided for in the Registration Rights
Agreement.

    

    “ Required Approvals ”
shall have the meaning ascribed to such term in Section 3.1(e).

     

    

     

    
      
         

      

      
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    “ Required Minimum ”
means, as of any date, the maximum aggregate number of shares of Common Stock
then issued or potentially issuable in the future pursuant to the Transaction
Documents, including any Underlying Shares issuable upon exercise or conversion
in full of all Warrants and shares of Preferred Stock, ignoring any conversion
or exercise limits set forth therein, and assuming that any previously
unconverted shares of Preferred Stock are held until the third anniversary of
the Closing Date and all dividends are paid in shares of Common Stock until such
third anniversary.

     

    “ Rule 144 ” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

    

    “ SEC Reports ” shall
have the meaning ascribed to such term in Section 3.1(h).

    

    “ Securities ” means
the Preferred Stock, the Warrants, the Warrant Shares and the Underlying
Shares.

    

    “ Securities Act ”
means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

    

    “ Series A Warrants ”
means, collectively, the Series A Common Stock purchase warrants delivered to
the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
Warrants shall be exercisable immediately and have a term of exercise equal to
five years and an exercise price equal to $1.14, subject to adjustment therein,
in the form of Exhibit
C attached hereto.

    

    “ Series J Warrants ”
means, collectively, the Series J Common Stock purchase warrants delivered to
the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
Warrants shall be exercisable immediately and have a term of exercise equal to
one year and an exercise price equal to $1.235, subject to adjustment therein,
in the form of Exhibit
E attached hereto.

    

    “ Series J-A Warrants ”
means, collectively, the Series J-A Common Stock purchase warrants delivered to
the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
Warrants shall be exercisable immediately to the extent set forth therein and
have a term of exercise equal to one year and an exercise price equal to $1.425,
subject to adjustment therein, in the form of Exhibit F attached
hereto.

    

    “ Short Sales ” means
all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange
Act (but shall not be deemed to include the location and/or reservation of
borrowable shares of Common Stock).

    

    “ Stated Value ” means
$1,000 per share of Preferred Stock.

    

    “ Subscription Amount ”
shall mean, as to each Purchaser, the aggregate amount to be paid for the
Preferred Stock purchased hereunder as specified below such Purchaser’s name on
the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available
funds.

     

    

     

    
      
         

      

      
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    “ Subsequent Financing
” shall have the meaning ascribed to such term in Section 4.12.

    

    “ Subsequent Financing
Notice ” shall have the meaning ascribed to such term in Section
4.12.

    

    “ Subsidiary ” means
any subsidiary of the Company as set forth on Schedule 3.1(a) and
shall, where applicable, also include any direct or indirect subsidiary of the
Company formed or acquired after the date hereof.

    

    “ Trading Day ” means a
day on which the New York Stock Exchange is open for trading.

    

    “ Trading Market ”
means the following markets or exchanges on which the Common Stock is listed or
quoted for trading on the date in question: the American Stock Exchange, the
Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange or the OTC Bulletin Board.

    

    “ Transaction Documents
” means this Agreement, the Certificate of Designation, the Warrants, the
Lock-Up agreements, the Registration Rights Agreement, all schedules and
exhibits thereto and hereto and any other documents or agreements executed in
connection with the transactions contemplated hereunder.

    

    “ Transfer Agent ”
means Action Stock Transfer Company, the current transfer agent of the Company,
with a mailing address of 7069 S. Highland Drive, Suite 30, Salt Lake City, UT
84121 and a facsimile number of (801) 274-1099, and any successor transfer agent
of the Company.

    

    “ Underlying Shares ”
means the shares of Common Stock issued and issuable upon conversion of the
Preferred Stock, upon exercise of the Warrants and issued and issuable in lieu
of the cash payment of dividends on the Preferred Stock in accordance with the
terms of the Certificate of Designation.

    

    “ VWAP ” means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed
or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m.
(New York City time) to 4:02 p.m. (New York City time); (b)  if the OTC
Bulletin Board is not a Trading Market, the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board; (c) if the Common Stock is not then quoted for trading on the OTC
Bulletin Board and if prices for the Common Stock are then reported in the “Pink
Sheets” published by Pink Sheets, LLC (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per
share of the Common Stock so reported; or (d) in all other cases, the fair
market value of a share of Common Stock as determined by an independent
appraiser selected in good faith by the Purchasers of a majority in interest of
the Securities then outstanding and reasonably acceptable to the
Company.

     

    

     

    
      
         

      

      
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    “ Vision ” means Vision
Opportunity Master Fund, Ltd.

     

    “ Warrants ” means,
collectively, the Series A Warrants, the Series J Warrants and the Series J-A
Warrants.

     

    “ Warrant Shares ”
means the shares of Common Stock issuable upon exercise of the
Warrants.

     

    ARTICLE
II

    PURCHASE
AND SALE

     

    2.1
  Closing
.. On the Closing Date, upon the terms and subject to the conditions set forth
herein, substantially concurrent with the execution and delivery of this
Agreement by the parties hereto, the Company agrees to sell, and the Purchasers
agree, severally and not jointly, to purchase, up to an aggregate of $12,000,000
of shares of Preferred Stock with an aggregate Stated Value equal to such
Purchaser’s Subscription Amount, and Warrants as determined by pursuant to
Section 2.2(a). The aggregate number of shares of Preferred Stock sold hereunder
shall be up to 12,000. Each Purchaser shall deliver to the Escrow Agent via wire
transfer or a certified check of immediately available funds equal to their
Subscription Amount and the Company shall deliver to each Purchaser their
respective shares of Preferred Stock and Warrants as determined pursuant to
Section 2.2(a) and the other items set forth in Section 2.2 issuable at the
Closing. Upon satisfaction of the conditions set forth in Sections 2.2 and 2.3,
the Closing shall occur at the offices of FWS or such other location as the
parties shall mutually agree.

     

    2.2 Deliveries
..

     

    (a)
  On the Closing Date, the Company shall deliver or cause to be delivered
to each Purchaser the following:

     

    (i) this
Agreement duly executed by the Company;

     

    (ii)
  a legal opinion of Company Counsel and/or Anslow & Jaclin, LLP, in
connection with the Merger, in substantially the form of Exhibit D attached
hereto;

     

    (iii)
  a certificate evidencing a number of shares of Preferred Stock equal to
such Purchaser’s Subscription Amount divided by the Stated Value, registered in
the name of such Purchaser;

     

    

     

    
      
         

      

      
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    (iv)
  a Series A Warrant registered in the name of such Purchaser to purchase
up to a number of shares of Common Stock equal to 60% of such Purchaser’s
Subscription Amount divided by the Conversion Price;

     

    (v)
  a Series J Warrant registered in the name of such Purchaser to purchase
up to a number of shares of Common Stock equal to 70% of the number of
Conversion Shares issuable upon conversion of the Preferred Stock purchased by
such Purchaser, as set forth therein;

     

    (vi)
  a Series J-A Warrant registered in the name of such Purchaser to purchase
up to a number of shares of Common Stock equal to 60% of the number of shares of
Common Stock issuable upon exercise of such Purchaser’s Series J
Warrant;

     

    (vii)
  a lock-up agreement (the “ Lock-Up Agreement(s)
”), substantially in the form of Exhibit G hereto,
duly executed by Nenad Macvanin, Joseph Esposito, Kenneth L. Londoner, Robert N.
Blair, Milic Petkovic, Bosko Bojovic, Samuel E. George, Pensco Trust FBO
Branislav Vajdic and Branislav Vajdic;;

     

    (viii)
  evidence of the filing of the Certificate of Designation with the
Secretary of State of Delaware; and

     

    (ix)
  the Registration Rights Agreement duly executed by the
Company.

     

    (b)
  On the Closing Date, each Purchaser shall deliver or cause to be
delivered to the Company (except as noted) the following:

     

    (i) this
Agreement duly executed by such Purchaser;

     

    (ii)
  such Purchaser’s Subscription Amount as to the Closing by wire transfer
to the Escrow Agent; and

     

    (iii)
  the Registration Rights Agreement duly executed by such
Purchaser.

     

    2.3 Closing
Conditions.

     

    (a)
  The obligations of the Company hereunder in connection with the Closing
are subject to the following conditions being met:

     

    (i)
  the accuracy in all material respects on the Closing Date of the
representations and warranties of the Purchasers contained herein;

     

    (ii)
  the Merger shall have occurred;

     

    (iii)
  all obligations, covenants and agreements of each Purchaser required to
be performed at or prior to the Closing Date shall have been performed;
and

     

    

     

    
      
         

      

      
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    (iv)
  the delivery by each Purchaser of the items set forth in Section 2.2(b)
of this Agreement.

     

    (b)
  The respective obligations of the Purchasers hereunder in connection with
the Closing are subject to the following conditions being met:

     

    (i)
  the accuracy in all material respects when made and on the Closing Date
of the representations and warranties of the Company contained
herein;

     

    (ii)
  all obligations, covenants and agreements of the Company required to be
performed at or prior to the Closing Date shall have been
performed;

     

    (iii)
  the Merger shall have occurred and the Company shall have (A) delivered
the Purchasers (x) evidence thereof and (y) a copy of the legal opinion issued
in connection therewith, which legal opinion shall provide that the Purchasers
are third party beneficiaries thereof and (B) provided evidence that the Company
is prepared to file the Merger 8-K with the Commission on or before the 4th
Trading Day following the consummation of the Merger;

     

    (iv)
  the minimum aggregate Subscription Amount hereunder shall be at least
$8,000,000;

     

    (v)
  the delivery by the Company of the items set forth in Section 2.2(a) of
this Agreement;

     

    (vi)
  there shall have been no Material Adverse Effect with respect to the
Company since the date hereof; and

     

    (vii)
  from the date hereof to the Closing Date, trading in the Common Stock
shall not have been suspended by the Commission or the Company’s principal
Trading Market (except for any suspension of trading of limited duration agreed
to by the Company, which suspension shall be terminated prior to the Closing),
and, at any time prior to the Closing Date, trading in securities generally as
reported by Bloomberg L.P. shall not have been suspended or limited, or minimum
prices shall not have been established on securities whose trades are reported
by such service, or on any Trading Market, nor shall a banking moratorium have
been declared either by the United States or New York State authorities nor
shall there have occurred any material outbreak or escalation of hostilities or
other national or international calamity of such magnitude in its effect on, or
any material adverse change in, any financial market which, in each case, in the
reasonable judgment of each Purchaser, makes it impracticable or inadvisable to
purchase the Securities at the Closing.

     

    

     

    
      
         

      

      
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    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES

     

    3.1 Representations and
Warranties of the Company . Except as set forth in the Disclosure
Schedules, which Disclosure Schedules shall be deemed a part hereof and shall
qualify any representation or otherwise made herein to the extent of the
disclosure contained in the corresponding section of the Disclosure Schedules,
the Company hereby makes the following representations and warranties to each
Purchaser with respect to the New Cardio Subsidiary. For purposes of this
Section 3.1 only, references to the “Company” shall only mean the New Cardio
Subsidiary except where Marine Park Holdings, Inc. is expressly referred to. The
Purchasers are third-party beneficiaries of all representations and warranties
of the Company contained in the Merger Agreement with respect to the pre-Merger
Company:

     

    (a)
  Subsidiaries . All of
the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a) . The
Company owns, directly or indirectly, all of the capital stock or other equity
interests of each Subsidiary free and clear of any Liens, and all of the issued
and outstanding shares of capital stock of each Subsidiary are validly issued
and are fully paid, non-assessable and free of preemptive and similar rights to
subscribe for or purchase securities. If the Company has no subsidiaries, all
other references to the Subsidiaries or any of them in the Transaction Documents
shall be disregarded.

     

    (b)
  Organization
and Qualification . The Company and each of the Subsidiaries is an entity
duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization (as
applicable), with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation or default of any of the
provisions of its respective certificate or articles of incorporation, bylaws or
other organizational or charter documents. Each of the Company and the
Subsidiaries is duly qualified to conduct business and is in good standing as a
foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in (i) a
material adverse effect on the legality, validity or enforceability of any
Transaction Document, (ii) a material adverse effect on the results of
operations, assets, business, prospects or condition (financial or otherwise) of
the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely
basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a “ Material Adverse
Effect ”) and 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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    (c)
  Authorization;
Enforcement . The Company has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by each of the
Transaction Documents and otherwise to carry out its obligations hereunder and
thereunder. The execution and delivery of each of the Transaction Documents by
the Company and the consummation by it of the transactions contemplated hereby
and thereby have been duly authorized by all necessary action on the part of the
Company and no further action is required by the Company, the Board of Directors
or the Company’s stockholders in connection therewith other than in connection
with the Required Approvals. Each Transaction Document has been (or upon
delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms, except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable
law.

     

    (d)
  No
Conflicts . The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the other
transactions contemplated hereby and thereby do not and will not: (i) conflict
with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, result in the
creation of any Lien upon any of the properties or assets of the Company or any
Subsidiary, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any
agreement, credit facility, debt or other instrument (evidencing a Company or
Subsidiary debt or otherwise) or other understanding to which the Company or any
Subsidiary is a party or by which any property or asset of the Company or any
Subsidiary is bound or affected, or (iii) subject to the Required Approvals,
conflict with or result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and
state securities laws and regulations), or by which any property or asset of the
Company or a Subsidiary is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not have or reasonably be expected to
result in a Material Adverse Effect.

     

    (e)
  Filings,
Consents and Approvals . The Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any
filing or registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents, other than
(as to Marine Park Holdings, Inc.) (i) filings required pursuant to Section 4.6,
(ii) the filing with the Commission of the Registration Statement, (iii) the
notice and/or application(s) to each applicable Trading Market for the issuance
and sale of the Securities and the listing of the Underlying Shares for trading
thereon in the time and manner required thereby, and (iv) the filing of Form D
with the Commission and such filings as are required to be made under applicable
state securities laws and (v) (collectively, the “ Required Approvals
”).

     

    

     

    
      
         

      

      
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    (f)
  Issuance of the
Securities . The Securities are duly authorized and, when issued and paid
for in accordance with the applicable Transaction Documents, will be duly and
validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company other than restrictions on transfer provided for in the
Transaction Documents. The Underlying Shares, when issued in accordance with the
terms of the Transaction Documents, will be validly issued, fully paid and
nonassessable, free and clear of all Liens imposed by the Company other than
restrictions on transfer provided for in the Transaction Documents. The Company
has reserved from its duly authorized capital stock a number of shares of Common
Stock for issuance of the Underlying Shares at least equal to the Required
Minimum on the date hereof.

     

    (g)
  Capitalization . The
capitalization of the Company immediately prior to Closing and of Marine Park
Holdings, Inc. following the consummation of the Merger is as set forth on Schedule 3.1(g) ,
which Schedule
3.1(g) shall also include the number of shares of Common Stock owned
beneficially, and of record, by Affiliates of the Company as of the date hereof.
The Company has not issued any capital stock since its most recently filed
periodic report under the Exchange Act, other than pursuant to the exercise of
employee stock options under the Company’s stock option plans, the issuance of
shares of Common Stock to employees pursuant to the Company’s employee stock
purchase plans and pursuant to the conversion or exercise of Common Stock
Equivalents outstanding as of the date of the most recently filed periodic
report under the Exchange Act. No Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents. Except as a result
of the purchase and sale of the Securities, there are no outstanding options,
warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or
exercisable or exchangeable for, or giving any Person any right to subscribe for
or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock or Common Stock
Equivalents. The issuance and sale of the Securities will not obligate the
Company to issue shares of Common Stock or other securities to any Person (other
than the Purchasers) and will not result in a right of any holder of Company
securities to adjust the exercise, conversion, exchange or reset price under any
of such securities. All of the outstanding shares of capital stock of the
Company are validly issued, fully paid and nonassessable, have been issued in
compliance with all federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. No further approval or
authorization of any stockholder, the Board of Directors or others is required
for the issuance and sale of the Securities. There are no stockholders
agreements, voting agreements or other similar agreements with respect to the
Company’s capital stock to which the Company is a party or, to the knowledge of
the Company, between or among any of the Company’s stockholders.

     

    (h)
  Not Used.

     

    

     

    
      
         

      

      
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    (i)
  Material
Changes. Since the date of the latest audited financial statements
included in the Merger 8-K, except as specifically disclosed on Schedule 3.1(i) , (i)
there has been no event, occurrence or development that has had or that could
reasonably be expected to result in a Material Adverse Effect, (ii) the Company
has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of
accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) the Company has not issued any equity securities to any officer,
director or Affiliate, except pursuant to existing Company stock option plans.
The Company does not have pending before the Commission any request for
confidential treatment of information. Except for the issuance of the Securities
contemplated by this Agreement or as set forth on Schedule 3.1(i) , no
event, liability or development has occurred or exists with respect to the
Company or its Subsidiaries or their respective business, properties, operations
or financial condition, that would be required to be disclosed by the Company
under applicable securities laws at the time this representation is made or
deemed made that has not been publicly disclosed at least 1 Trading Day prior to
the date that this representation is made.

     

    (j)
  Litigation. There is
no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the
Company, any Subsidiary or any of their respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “ Action ”) which (i)
adversely affects or challenges the legality, validity or enforceability of any
of the Transaction Documents or the Securities or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect. Neither the Company nor any Subsidiary, nor any director or
officer thereof, is or has been the subject of any Action involving a claim of
violation of or liability under federal or state securities laws or a claim of
breach of fiduciary duty. There has not been, and to the knowledge of the
Company, there is not pending or contemplated, any investigation by the
Commission involving the Company or any current or former director or officer of
the Company. The Commission has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company
or any Subsidiary under the Exchange Act or the Securities Act.

     

    (k)
  Labor
Relations . No material labor dispute exists or, to the knowledge of the
Company, is imminent with respect to any of the employees of the Company which
could reasonably be expected to result in a Material Adverse Effect. None of the
Company’s or its Subsidiaries’ employees is a member of a union that relates to
such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining
agreement, and the Company and its Subsidiaries believe that their relationships
with their employees are good. No executive officer, to the knowledge of the
Company, is, or is now expected to be, in violation of any material term of any
employment contract, confidentiality, disclosure or proprietary information
agreement or non-competition agreement, or any other contract or agreement or
any restrictive covenant in favor of any third party, and the continued
employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters.
The Company and its Subsidiaries are in compliance with all U.S. federal, state,
local and foreign laws and regulations relating to employment and employment
practices, terms and conditions of employment and wages and hours, except where
the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

    
 

     

    
      
         

      

      
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    (l)
  Compliance. Neither
the Company nor any Subsidiary (i) is in default under or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company or any Subsidiary under),
nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any order of any court,
arbitrator or governmental body, or (iii) is or has been in violation of any
statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws applicable to its business
and all such laws that affect the environment, except in each case as could not
have or reasonably be expected to result in a Material Adverse
Effect.

     

    (m)
  Regulatory
Permits. The Company and the Subsidiaries possess all certificates,
authorizations and permits issued by the appropriate federal, state, local or
foreign regulatory authorities necessary to conduct their respective businesses,
except where the failure to possess such permits could not reasonably be
expected to result in a Material Adverse Effect (“ Material Permits ”),
and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material
Permit.

     

    (n)
  Title to
Assets. The Company and the Subsidiaries have good and marketable title
in fee simple to all real property owned by them and good and marketable title
in all personal property owned by them that is material to the business of the
Company and the Subsidiaries, in each case free and clear of all Liens, except
for Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property
by the Company and the Subsidiaries and Liens for the payment of federal, state
or other taxes, the payment of which is neither delinquent nor subject to
penalties. Any real property and facilities held under lease by the Company and
the Subsidiaries are held by them under valid, subsisting and enforceable leases
with which the Company and the Subsidiaries are in compliance.

     

    

     

    
      
         

      

      
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    (o)
  Patents and
Trademarks. Except as disclosed on Schedule 3.1(o) , The
Company and the Subsidiaries have, or have rights to use, all patents, patent
applications, trademarks, trademark applications, service marks, trade names,
trade secrets, inventions, copyrights, licenses and other intellectual property
rights and similar rights necessary or material for use in connection with their
respective businesses and which the failure to so have could have a Material
Adverse Effect (collectively, the “ Intellectual Property
Rights ”). Neither the Company nor any Subsidiary has received a notice
(written or otherwise) that any of the Intellectual Property Rights used by the
Company or any Subsidiary violates or infringes upon the rights of any Person.
To the knowledge of the Company, all such Intellectual Property Rights are
enforceable and there is no existing infringement by another Person of any of
the Intellectual Property Rights. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value
of all of their intellectual properties, except where failure to do so could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     

    (p)
  Insurance . The
Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which the Company and the Subsidiaries are
engaged, including, but not limited to, directors and officers insurance
coverage at least equal to the aggregate Subscription Amount. Neither the
Company nor any Subsidiary 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 without a significant increase in cost.

     

    (q)
  Transactions
with Affiliates and Employees . None of the officers or directors of the
Company and, to the knowledge of the Company, none of the employees of the
Company is presently a party to any transaction with the Company or any
Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner, in each case in excess of $120,000
other than for (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii)
other employee benefits, including stock option agreements under any stock
option plan of the Company.

     

    (r)
  Internal
Accounting Controls . The Company and the Subsidiaries maintain a system
of internal accounting controls sufficient to provide reasonable assurance 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 conformity with GAAP 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.

     

    

     

    
      
         

      

      
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    (s)
  Certain
Fees. Except as set forth on Schedule 3.1(s) , no
brokerage or finder’s fees or commissions are or will be payable by the Company
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents. The Purchasers shall have no
obligation with respect to any fees or with respect to any claims made by or on
behalf of other Persons for fees of a type contemplated in this Section that may
be due in connection with the transactions contemplated by the Transaction
Documents.

     

    (t)
  Private
Placement. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, no registration under the Securities Act is
required for the offer and sale of the Securities by Marine Park holdings, Inc.
to the Purchasers as contemplated hereby. The issuance and sale of the
Securities hereunder does not contravene the rules and regulations of the
Trading Market.

     

    (u)
  Investment
Company. Marine Park Holdings, Inc. is not, and is not an Affiliate of,
and immediately after receipt of payment for the Securities, will not be or be
an Affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended. Marine Park Holdings, Inc. shall conduct its
business in a manner so that it will not become subject to the Investment
Company Act of 1940, as amended.

     

    (v)
  Registration
Rights. Except as set forth on Schedule 3.1(v) ,
other than each of the Purchasers, no Person has any right to cause the Company
to effect the registration under the Securities Act of any securities of the
Company or of Marine Park Holdings, Inc.

     

    (w) Not
Used.

     

    (x) Application of Takeover
Protections. The Company and the Board of Directors have taken all
necessary action, if any, in order to render inapplicable any control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s
certificate of incorporation (or similar charter documents) or the laws of its
state of incorporation that is or could become applicable to the Purchasers as a
result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including without
limitation as a result of the Company’s issuance of the Securities and the
Purchasers’ ownership of the Securities.

     

    

     

    
      
         

      

      
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    (y) Disclosure. Except
with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company confirms that neither it
nor any other Person acting on its behalf has provided any of the Purchasers or
their agents or counsel with any information that it believes constitutes or
might constitute material, nonpublic information. The Company understands and
confirms that the Purchasers will rely on the foregoing representation in
effecting transactions in securities of the Company. Attached hereto as Schedule 3.1(y) is a
copy of a substantially final Current Report on Form 8-K (the “ Merger 8-K ”) that
the Company will file with the Commission in connection with the Merger on or
prior to the 4th Trading Day immediately following the date hereof (which
Current Report contains, among other information, risk factors concerning the
Company and financial statements required to be filed therewith). All disclosure
furnished by or on behalf of the Company to the Purchasers regarding the
Company, its business and the transactions contemplated hereby, including the
Disclosure Schedules to this Agreement, is true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The press releases
disseminated by the Company during the twelve months preceding the date of this
Agreement taken as a whole do not contain any untrue statement of a material
fact or omit to state a 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 and when made, not misleading. The Company acknowledges and
agrees that no Purchaser makes or has made any representations or warranties
with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3.2 hereof.

     

    (z) No Integrated
Offering. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, neither the Company, nor any of its
Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would cause this offering of the
Securities to be integrated with prior offerings by the Company for purposes of
(i) the Securities Act which would require the registration of any such
securities under the Securities Act, or (ii) any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company
are listed or designated. 

     

    (aa)
Solvency. Based
on the consolidated financial condition of the Company as of the Closing Date
after giving effect to the receipt by the Company of the proceeds from the sale
of the Securities hereunder, (i) the fair saleable value of the Company’s assets
exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature, (ii) the Company’s assets do not constitute
unreasonably small capital to carry on its business as now conducted and as
proposed to be conducted including its capital needs taking into account the
particular capital requirements of the business conducted by the Company, and
projected capital requirements and capital availability thereof, and (iii) the
current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all
anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The
Company does not intend to incur debts beyond its ability to pay such debts as
they mature (taking into account the timing and amounts of cash to be payable on
or in respect of its debt). The Company has no knowledge of any facts or
circumstances which lead it to believe that it will file for reorganization or
liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date. Schedule 3.1(aa) sets
forth as of the date hereof all outstanding secured and unsecured Indebtedness
of the Company or any Subsidiary, or for which the Company or any Subsidiary has
commitments. For the purposes of this Agreement, “ Indebtedness ” means
(a) any liabilities for borrowed money or amounts owed in excess of $50,000
(other than trade accounts payable incurred in the ordinary course of business),
(b) all guaranties, endorsements and other contingent obligations in respect of
indebtedness of others, whether or not the same are or should be reflected in
the Company’s balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $50,000 due under leases required to be
capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is
in default with respect to any Indebtedness.

     

    

     

    
      
         

      

      
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    (bb)
Tax Status.
Except for matters that would not, individually or in the aggregate, have or
reasonably be expected to result in a Material Adverse Effect, the Company and
each Subsidiary has filed all necessary federal, state and foreign income and
franchise tax returns and has paid or accrued all taxes shown as due thereon,
and the Company has no knowledge of a tax deficiency which has been asserted or
threatened against the Company or any Subsidiary.

     

    (cc)
No General
Solicitation. Neither the Company nor any person acting on behalf of the
Company has offered or sold any of the Securities by any form of general
solicitation or general advertising. The Company has offered the Securities for
sale only to the Purchasers and certain other “accredited investors” within the
meaning of Rule 501 under the Securities Act.

     

    (dd)
Foreign Corrupt
Practices. Neither the Company, nor to the knowledge of the Company, any
agent or other person acting on behalf of the Company, has (i) directly or
indirectly, used any funds for unlawful contributions, gifts, entertainment or
other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or
employees or to any foreign or domestic political parties or campaigns from
corporate funds, (iii) failed to disclose fully any contribution made by the
Company (or made by any person acting on its behalf of which the Company is
aware) which is in violation of law, or (iv) violated in any material respect
any provision of the Foreign Corrupt Practices Act of 1977, as
amended.

     

    (ee)
Accountants .
The Company’s accounting firm is set forth on Schedule 3.1(ee) of
the Disclosure Schedule. To the knowledge and belief of the Company, such
accounting firm (i) is a registered public accounting firm as required by the
Exchange Act and (ii) shall express its opinion with respect to the financial
statements to be included in the Company’s Annual Report for the year ending
December 31, 2007.

     

    (ff)
Seniority . As
of the Closing Date, no Indebtedness or other claim against the Company is
senior to the Preferred Stock in right of payment, whether with respect to
interest or upon liquidation or dissolution, or otherwise, other than
indebtedness secured by purchase money security interests (which is senior only
as to underlying assets covered thereby) and capital lease obligations (which is
senior only as to the property covered thereby).

     

    

     

    
      
         

      

      
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    (gg)
No Disagreements with
Accountants and Lawyers. Except as disclosed on Schedule 3.1(gg) ,
there are no disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and
lawyers formerly or presently employed by the Company and the Company is current
with respect to any fees owed to its accountants and lawyers which could affect
the Company’s ability to perform any of its obligations under any of the
Transaction Documents.

     

    (hh)
Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges
and agrees that each of the Purchasers is acting solely in the capacity of an
arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby. The Company further acknowledges that no
Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the
transactions contemplated thereby and any advice given by any Purchaser or any
of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the
Purchasers’ purchase of the Securities. The Company further represents to each
Purchaser that the Company’s decision to enter into this Agreement and the other
Transaction Documents has been based solely on the independent evaluation of the
transactions contemplated hereby by the Company and its
representatives.

     

    (ii)
Acknowledgement
Regarding Purchasers’ Trading Activity. Notwithstanding anything in this
Agreement or elsewhere herein to the contrary (except for Sections 3.2(f) and
4.15 hereof), it is understood and acknowledged by the Company that (i) none of
the Purchasers has been asked to agree by the Company, nor has any Purchaser
agreed, to desist from purchasing or selling, long and/or short, securities of
the Company, or “derivative” securities based on securities issued by the
Company or to hold the Securities for any specified term, (ii) past or future
open market or other transactions by any Purchaser, specifically including,
without limitation, Short Sales or “derivative” transactions, before or after
the closing of this or future private placement transactions, may negatively
impact the market price of the Company’s publicly-traded securities, (iii) any
Purchaser, and counter-parties in “derivative” transactions to which any such
Purchaser is a party, directly or indirectly, may presently have a “short”
position in the Common Stock; and (iv) each Purchaser shall not be deemed to
have any affiliation with or control over any arm’s length counter-party in any
“derivative” transaction. The Company further understands and acknowledges that
(a) one or more Purchasers may engage in hedging activities at various times
during the period that the Securities are outstanding, including, without
limitation, during the periods that the value of the Underlying Shares
deliverable with respect to Securities are being determined, and (b) such
hedging activities (if any) could reduce the value of the existing stockholders'
equity interests in the Company at and after the time that the hedging
activities are being conducted.  The Company acknowledges that such
aforementioned hedging activities do not constitute a breach of any of the
Transaction Documents.

     

    

     

    
      
         

      

      
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    (jj)
Not
Used.

     

    (kk)
Manufacturing and
Marketing Rights. Neither the Company nor its Subsidiaries have granted
rights to manufacture, produce, assemble, license, market, or sell its products
to any other Person and is not bound by any agreement that affects the Company’s
or its Subsidiaries’ exclusive right to develop, manufacture, assemble,
distribute, market or sell its respective products.

     

    (ll)
Obligations of
Management. Each officer and key employee of the Company and its
Subsidiaries is currently devoting substantially all of his or her business time
to the conduct of business of the Company and its Subsidiaries. Neither the
Company nor any of its Subsidiaries is aware that any officer or key employee of
the Company or any Subsidiary is planning to work less than full time at the
Company or any Subsidiary, as applicable, in the future. No officer or key
employee is the currently working or, to the Company’s knowledge, plans to work
for a competitive enterprise, whether or not such officer of key employee is or
will be compensated by such enterprise.

     

    (mm)
Minute Books.
The minute books of the Company and its Subsidiaries made available to the
Purchasers contain a complete summary of all meetings of directors and
stockholders since the time of incorporation.

     

    (nn)
Elections. To
the Company’s knowledge, all elections and notices permitted by Section 83(b) of
the Internal Revenue Code and any analogous provisions of applicable state tax
laws have been timely filed by all employees who have purchased shares of the
Common Stock under agreements that provide for the vesting of such shares of
Common Stock.

     

    (oo)
Accounts
Receivable. All accounts receivable of the Company and its Subsidiaries
that are reflected on the Company’s and its Subsidiaries’ balance sheets or
interim balance sheets or on the accounting records of the Company and its
Subsidiaries as of the Closing Date (collectively, the “Accounts Receivable”)
represent or will represent valid obligations arising from sales actually made
or services actually performed in the ordinary course of business. Unless paid
prior to the Closing Date, the Accounts Receivable are or will be as of the
Closing Date current and collectible net of the respective reserves shown on the
balance sheet or interim balance sheet or on the accounting records of the
Company and its Subsidiaries as of the Closing Date (which reserves are adequate
and calculated consistent with past practice and, in the case of the reserve as
of the Closing Date, will not represent a greater percentage of the Accounts
Receivable as of the Closing Date than the reserve reflected in the interim
balance sheet represented of the Accounts Receivable reflected therein and will
not represent a material adverse change in the composition of such Accounts
Receivable in terms of aging). Subject to such reserves, each of the Accounts
Receivable either has been or will be collected in full without any set-off,
within ninety days after the day on which it must becomes due and payable. There
is no contest, claim, or right of set-off, other than returns in the ordinary
course of business, under any agreement and/or contract with any obligor of an
Accounts Receivable relating to the amount or validity of such Accounts
Receivable. Schedule
3.1(oo) contains a complete and accurate list of all Accounts Receivable
as of the date of the interim balance sheet, which list sets forth the aging of
such Accounts Receivable.

     

    

     

    
      
         

      

      
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    (pp)
Inventory. All
inventory of the Company and the Subsidiaries, whether or not reflected in the
balance sheet or interim balance sheet, consists of a quality and quantity
usable and salable in the ordinary course of business, except for obsolete items
and items of below standard quality, all of which have been written off or
written down to net realizable value in the balance sheet or interim balance
sheet or on the accounting records of the Company and the Subsidiaries as of the
Closing Date, as the case may be. All inventories not written off have been
priced at the lower of cost or market on the last in, first out basis. The
quantities of each item of inventory (whether raw materials, work-in-process, or
finished goods) are not excessive, but are reasonable in the present
circumstances of the Company and the Subsidiaries.

     

    (qq)
Returns and
Complaints. Neither the Company nor any Subsidiary has received any
customer complaints concerning its respective products and/or services, nor has
it had any of its products returned by a purchaser thereof, other than minor,
nonrecurring warranty problems.

     

    (rr)
Employee
Benefits. Except as set forth on Schedule 3.1(rr),
neither the Company nor any Subsidiary has (nor for the two years preceding the
date hereof has had) any plans which are subject to ERISA. “ERISA” means the
Employee Retirement Income Security Act of 1974 or any successor law and the
regulations and rules issued pursuant to that act or any successor
law.

     

    3.2
  Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no
other Purchaser hereby, represents and warrants as of the date hereof and as of
the Closing Date to the Company as follows:

     

    (a)
  Organization;
Authority. Such Purchaser is an entity duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization with
full right, corporate or partnership power and authority to enter into and to
consummate the transactions contemplated by the Transaction Documents and
otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of the Transaction Documents and performance by such Purchaser of
the transactions contemplated by the Transaction Documents have been duly
authorized by all necessary corporate or similar action on the part of such
Purchaser. Each Transaction Document to which it is a party has been duly
executed by such Purchaser, and when delivered by such Purchaser in accordance
with the terms hereof, will constitute the valid and legally binding obligation
of such Purchaser, enforceable against it in accordance with its terms, except
(i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.

     

    

     

    
      
         

      

      
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    (b)
  Own
Account. Such Purchaser understands that the Securities are “restricted
securities” and have not been registered under the Securities Act or any
applicable state securities law and is acquiring the Securities as principal for
its own account and not with a view to or for distributing or reselling such
Securities or any part thereof in violation of the Securities Act or any
applicable state securities law, has no present intention of distributing any of
such Securities in violation of the Securities Act or any applicable state
securities law and has no direct or indirect arrangement or understandings with
any other persons to distribute or regarding the distribution of such Securities
(this representation and warranty not limiting such Purchaser’s right to sell
the Securities pursuant to the Registration Statement or otherwise in compliance
with applicable federal and state securities laws) in violation of the
Securities Act or any applicable state securities law. Such Purchaser is
acquiring the Securities hereunder in the ordinary course of its
business.

     

    (c)
  Purchaser
Status. At the time such Purchaser was offered the Securities, it was,
and at the date hereof it is, and on each date on which it converts any shares
of Preferred Stock or exercises any Warrants, it will be either: (i) an
“accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or
(a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as
defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required
to be registered as a broker-dealer under Section 15 of the Exchange
Act.

     

    (d)
  Experience of
Such Purchaser. Such Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Securities, and has so evaluated the merits
and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a
complete loss of such investment.

     

    (e)
  General
Solicitation. Such Purchaser is not purchasing the Securities as a result
of any advertisement, article, notice or other communication regarding the
Securities published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or any other general
solicitation or general advertisement.

     

    

     

    
      
         

      

      
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    (f)
  Short Sales and
Confidentiality Prior To The Date Hereof . Other than consummating the
transactions contemplated hereunder, such Purchaser has not directly or
indirectly, nor has any Person acting on behalf of or pursuant to any
understanding with such Purchaser, executed any purchases or sales, including
Short Sales, of the securities of the Company during the period commencing
from the time that such Purchaser first received a term sheet (written or oral)
from the Company or any other Person representing the Company setting forth the
material terms of the transactions contemplated hereunder until the date hereof
(“ Discussion
Time ”). Notwithstanding the foregoing, in the case of a Purchaser that
is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser's assets and the portfolio managers have no
direct knowledge of the investment decisions made by the portfolio managers
managing other portions of such Purchaser's assets, the representation set forth
above shall only apply with respect to the portion of assets managed by the
portfolio manager that made the investment decision to purchase the Securities
covered by this Agreement. Other than to other Persons party to this Agreement,
such Purchaser has maintained the confidentiality of all disclosures made to it
in connection with this transaction (including the existence and terms of this
transaction).

     

    ARTICLE
IV.

    OTHER
AGREEMENTS OF THE PARTIES

     

    4.1
  Transfer
Restrictions.

     

    (a)
  The Securities may only be disposed of in compliance with state and
federal securities laws. In connection with any transfer of Securities other
than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Purchaser or in connection with a pledge as contemplated
in Section 4.1(b), the Company may require the transferor thereof to provide to
the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be
reasonably satisfactory to the Company, to the effect that such transfer does
not require registration of such transferred Securities under the Securities
Act. As a condition of transfer, any such transferee shall agree in writing to
be bound by the terms of this Agreement and shall have the rights of a Purchaser
under this Agreement and the Registration Rights Agreement. Upon a cashless
exercise of the Warrants, the holdings period for purpose of Rule 144 shall tack
back to the original date issuance of such Warrants.

     

    (b)
  The Purchasers agree to the imprinting, so long as is required by this
Section 4.1, of a legend on any of the Securities in the following
form:

     

    [NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE]
[CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON
[EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A
BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

     

    

     

    
      
         

      

      
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    The
Company acknowledges and agrees that a Purchaser may from time to time pledge
pursuant to a bona fide margin agreement with a registered broker-dealer or
grant a security interest in some or all of the Securities to a financial
institution that is an “accredited investor” as defined in Rule 501(a) under the
Securities Act and who agrees to be bound by the provisions of this Agreement
and the Registration Rights Agreement and, if required under the terms of such
arrangement, such Purchaser may transfer pledged or secured Securities to the
pledgees or secured parties. Such a pledge or transfer would not be subject to
approval of the Company and no legal opinion of legal counsel of the pledgee,
secured party or pledgor shall be required in connection therewith. Further, no
notice shall be required of such pledge. At the appropriate Purchaser’s expense,
the Company will execute and deliver such reasonable documentation as a pledgee
or secured party of Securities may reasonably request in connection with a
pledge or transfer of the Securities, including, if the Securities are subject
to registration pursuant to the Registration Rights Agreement, the preparation
and filing of any required prospectus supplement under Rule 424(b)(3) under the
Securities Act or other applicable provision of the Securities Act to
appropriately amend the list of Selling Stockholders thereunder.

     

    (c)
  Certificates evidencing the Underlying Shares shall not contain any
legend (including the legend set forth in Section 4.1(b) hereof): (i) while a
registration statement (including the Registration Statement) covering the
resale of such security is effective under the Securities Act, or (ii) following
any sale of such Underlying Shares pursuant to Rule 144, or (iii) if such
Underlying Shares are eligible for sale under Rule 144, or (iv) if such legend
is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the
Commission). The Company shall cause its counsel to issue a legal opinion to the
Transfer Agent promptly after the Effective Date if required by the Transfer
Agent to effect the removal of the legend hereunder. If all or any shares of
Preferred Stock or any portion of a Warrant is converted or exercised (as
applicable) at a time when there is an effective registration statement to cover
the resale of the Underlying Shares, or if such Underlying Shares may be sold
under Rule 144 or if such legend is not otherwise required under applicable
requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission) then such Underlying
Shares shall be issued free of all legends. The Company agrees that following
the Effective Date or at such time as such legend is no longer required under
this Section 4.1(c), it will, no later than three Trading Days following the
delivery by a Purchaser to the Company or the Transfer Agent of a certificate
representing Underlying Shares, as applicable, issued with a restrictive legend
(such third Trading Day, the “ Legend Removal Date
”), deliver or cause to be delivered to such Purchaser a certificate
representing such shares that is free from all restrictive and other legends.
The Company may not make any notation on its records or give instructions to the
Transfer Agent that enlarge the restrictions on transfer set forth in this
Section. Certificates for Underlying Shares subject to legend removal hereunder
shall be transmitted by the Transfer Agent to the Purchaser by crediting the
account of the Purchaser’s prime broker with the Depository Trust Company System
as directed by such Purchaser.

     

    

     

    
      
         

      

      
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    (d)
  In addition to such Purchaser’s other available remedies, the Company
shall pay to a Purchaser, in cash, as partial liquidated damages and not as a
penalty, for each $1,000 of Underlying Shares (based on the VWAP of the Common
Stock on the date such Securities are submitted to the Transfer Agent) delivered
for removal of the restrictive legend and subject to Section 4.1(c), $10 per
Trading Day (increasing to $20 per Trading Day 5 Trading Days after such damages
have begun to accrue) for each Trading Day after the Legend Removal Date until
such certificate is delivered without a legend. Nothing herein shall limit such
Purchaser’s right to pursue actual damages for the Company’s failure to deliver
certificates representing any Securities as required by the Transaction
Documents, and such Purchaser shall have the right to pursue all remedies
available to it at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief.

    

    (e)
  Each Purchaser, severally and not jointly with the other Purchasers,
agrees that such Purchaser will sell any Securities pursuant to either the
registration requirements of the Securities Act, including any applicable
prospectus delivery requirements, or an exemption therefrom, and that if
Securities are sold pursuant to a Registration Statement, they will be sold in
compliance with the plan of distribution set forth therein, and acknowledges
that the removal of the restrictive legend from certificates representing
Securities as set forth in this Section 4.1 is predicated upon the Company’s
reliance upon this understanding.

     

    4.2 Acknowledgment of
Dilution. The Company acknowledges that the issuance of the Securities
may result in dilution of the outstanding shares of Common Stock, which dilution
may be substantial under certain market conditions. The Company further
acknowledges that its obligations under the Transaction Documents, including,
without limitation, its obligation to issue the Underlying Shares pursuant to
the Transaction Documents, are unconditional and absolute and not subject to any
right of set off, counterclaim, delay or reduction, regardless of the effect of
any such dilution or any claim the Company may have against any Purchaser and
regardless of the dilutive effect that such issuance may have on the ownership
of the other stockholders of the Company.

     

    4.3 Furnishing of
Information. Until the time that no Purchaser owns Securities, the
Company covenants to timely file (or obtain extensions in respect thereof and
file within the applicable grace period) all reports that are required to be
filed by the Company pursuant to Section 15(d) the Exchange Act, even if the
Company is not then otherwise subject to the reporting requirements of the
Exchange Act. The Company further covenants that it will take such further
action as any holder of Securities may reasonably request, to the extent
required from time to time to enable such Person to sell such Securities without
registration under the Securities Act within the requirements of the exemption
provided by Rule 144.

     

    

     

    
      
         

      

      
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    4.4 Integration. The
Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities to the
Purchasers in a manner that would require the registration under the Securities
Act of the sale of the Securities to the Purchasers or that would be integrated
with the offer or sale of the Securities for purposes of the rules and
regulations of any Trading Market.

     

    4.5 Conversion and Exercise
Procedures. The form of Notice of Exercise included in the Warrants and
the form of Notice of Conversion included in the Certificate of Designation set
forth the totality of the procedures required of the Purchasers in order to
exercise the Warrants or convert the Preferred Stock. No additional legal
opinion or other information or instructions shall be required of the Purchasers
to exercise their Warrants or convert their Preferred Stock. The Company shall
honor exercises of the Warrants and conversions of the Preferred Stock and shall
deliver Underlying Shares in accordance with the terms, conditions and time
periods set forth in the Transaction Documents.

     

    4.6 Securities Laws
Disclosure; Publicity. The
Company shall, by 8:30 a.m. (New York City time) on the 4th Trading Day
immediately following the date hereof, issue a Current Report on Form 8-K,
disclosing the material terms of the transactions contemplated hereby and
including the Transaction Documents as exhibits thereto. The Company and each
Purchaser shall consult with each other in issuing any other press releases with
respect to the transactions contemplated hereby, and neither the Company nor any
Purchaser shall issue any such press release or otherwise make any such public
statement without the prior consent of the Company, with respect to any press
release of any Purchaser, or without the prior consent of each Purchaser, with
respect to any press release of the Company, which consent shall not
unreasonably be withheld or delayed, except if such disclosure is required by
law, in which case the disclosing party shall promptly provide the other party
with prior notice of such public statement or communication. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any filing with the Commission or any
regulatory agency or Trading Market, without the prior written consent of such
Purchaser, except (i) as required by federal securities law in connection with
(A) any registration statement contemplated by the Registration Rights Agreement
and (B) the filing of final Transaction Documents (including signature pages
thereto) with the Commission and (ii) to the extent such disclosure is required
by law or Trading Market regulations, in which case the Company shall provide
the Purchasers with prior notice of such disclosure permitted under this clause
(ii).

     

    4.7
  Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with
the consent of the Company, any other Person, that any Purchaser is an
“Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar
anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that any Purchaser could be deemed to trigger the provisions of any such plan
or arrangement, by virtue of receiving Securities under the Transaction
Documents or under any other agreement between the Company and the
Purchasers.

     

    

     

    
      
         

      

      
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    4.8
  Non-Public
Information. Except with respect to the material terms and conditions of
the transactions contemplated by the Transaction Documents, the Company
covenants and agrees that neither it nor any other Person acting on its behalf,
will provide any Purchaser or its agents or counsel with any information that
the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. The Company understands and
confirms that each Purchaser shall be relying on the foregoing covenant in
effecting transactions in securities of the Company.

     

    4.9
  Use of
Proceeds. Except as set forth on Schedule 4.9 attached
hereto, the Company shall use the net proceeds from the sale of the Securities
hereunder for working capital purposes and shall not use such proceeds for (a)
the satisfaction of any portion of the Company’s debt (other than payment of
trade payables in the ordinary course of the Company’s business and prior
practices), (b) the redemption of any Common Stock or Common Stock Equivalents,
or (c) the settlement of any outstanding litigation.

     

    4.10
  Indemnification
of Purchasers. Subject to the provisions of this Section 4.10, the
Company will indemnify and hold each Purchaser and its directors, officers,
shareholders, members, partners, employees and agents (and any other Persons
with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who
controls such Purchaser (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a
lack of such title or any other title) of such controlling person (each, a “
Purchaser Party
”) harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of
or relating to (a) any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents or (b) any action instituted against a Purchaser in any
capacity, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of such Purchaser, with respect to any of
the transactions contemplated by the Transaction Documents (unless such action
is based upon a breach of such Purchaser’s representations, warranties or
covenants under the Transaction Documents or any agreements or understandings
such Purchaser may have with any such stockholder or any violations by the
Purchaser of state or federal securities laws or any conduct by such Purchaser
which constitutes fraud, gross negligence, willful misconduct or malfeasance).
If any action shall be brought against any Purchaser Party in respect of which
indemnity may be sought pursuant to this Agreement, such Purchaser Party shall
promptly notify the Company in writing, and the Company shall have the right to
assume the defense thereof with counsel of its own choosing reasonably
acceptable to the Purchaser Party. Any Purchaser Party shall have the right to
employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Purchaser Party except to the extent that (i) the employment thereof has
been specifically authorized by the Company in writing, (ii) the Company has
failed after a reasonable period of time to assume such defense and to employ
counsel or (iii) in such action there is, in the reasonable opinion of such
separate counsel, a material conflict on any material issue between the position
of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more
than one such separate counsel. The Company will not be liable to any Purchaser
Party under this Agreement (i) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (ii) to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to any Purchaser Party’s breach of
any of the representations, warranties, covenants or agreements made by such
Purchaser Party in this Agreement or in the other Transaction
Documents.

     

    

     

    
      
         

      

      
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    4.11
  Reservation and
Listing of Securities.

     

    (a)
  The Company shall maintain a reserve from its duly authorized shares of
Common Stock for issuance pursuant to the Transaction Documents in such amount
as may be required to fulfill its obligations in full under the Transaction
Documents.

     

    (b)
  If, on any date, the number of authorized but unissued (and otherwise
unreserved) shares of Common Stock is less than 130% of (i) the Required
Minimum on such date, minus (ii) the number of shares of Common Stock previously
issued pursuant to the Transaction Documents, then the Board of Directors shall
use commercially reasonable efforts to amend the Company’s certificate or
articles of incorporation to increase the number of authorized but unissued
shares of Common Stock to at least the Required Minimum at such time (minus the
number of shares of Common Stock previously issued pursuant to the Transaction
Documents), as soon as possible and in any event not later than the 75th day
after such date; provided that the Company will not be required at any time to
authorize a number of shares of Common Stock greater than the maximum remaining
number of shares of Common Stock that could possibly be issued after such time
pursuant to the Transaction Documents.

     

    (c)
  The Company shall, if applicable: (i) in the time and manner required by
the principal Trading Market, prepare and file with such Trading Market an
additional shares listing application covering a number of shares of Common
Stock at least equal to the Required Minimum on the date of such application,
(ii) take all steps necessary to cause such shares of Common Stock to be
approved for listing on such Trading Market as soon as possible thereafter,
(iii) provide to the Purchasers evidence of such listing, and (iv) maintain the
listing of such Common Stock on any date at least equal to the Required Minimum
on such date on such Trading Market or another Trading Market.

     

    4.12
  Right of First
Negotiation for Future Financing.

     

    (a)
  From the date hereof until the date that the Preferred Stock is no longer
outstanding, upon any proposed issuance by the Company or any of its
Subsidiaries of Common Stock or Common Stock Equivalents for cash consideration
(a “ Subsequent
Financing ”), each Purchaser (and if more than one such Purchaser
expresses interest, then all such Purchasers together, pro rata) shall have the
first right of negotiation with the Company to provide such Subsequent
Financing.

     

    

     

    
      
         

      

      
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    (b)
  The Company shall deliver to each Purchaser a written notice of its
intention to effect a Subsequent Financing (“Pre-Notice”), which
Pre-Notice shall ask such Purchaser if it wants to discuss the possibility of
providing additional financing to the Company.

    

    (c)
  Any Purchaser desiring to participate in such Subsequent Financing must
provide written notice to the Company by not later than 5:30 p.m. (New York City
time) on the 5th Trading Day after all of the Purchasers have received the
Pre-Notice that the Purchaser is willing to participate in the Subsequent
Financing and the proposed terms which such Purchaser is prepared to offer. If
the Company receives no notice from a Purchaser as of such 5th Trading Day, such
Purchaser shall be deemed to have notified the Company that it does not elect to
participate.

    

    (d)
  The Company and the interested Purchasers shall then negotiate a final
term sheet for a period of up to 20 calendar days from the end of the notice
period. If the parties are unable to negotiate a mutually satisfactory term
sheet within such period, then the Company shall be free to seek to complete its
Subsequent Financing with other persons on terms no less favorable to the
Company than those which the Purchasers last offered.

    

    (e)
  If the Company negotiates acceptable terms with Purchasers seeking to
purchase more than the aggregate amount of the Subsequent Financing, each such
Purchaser shall have the right to purchase its Pro Rata Portion (as defined
below) of the Participation Maximum. “Pro Rata Portion” means the ratio of (x)
the Subscription Amount of Securities purchased on the Closing Date by a
Purchaser participating under this Section 4.12 and (y) the sum of the aggregate
Subscription Amounts of Securities purchased on the Closing Date by all
Purchasers participating under this Section 4.12.

    

    (f)
  Notwithstanding the foregoing, this Section 4.12 shall not apply in
respect of (i) an Exempt Issuance, or (ii) an underwritten public offering of
Common Stock.  

    

    4.13
  Subsequent
Equity Sales.

    

    (a)
  From the date hereof until 90 days after the Effective Date, neither the
Company nor any Subsidiary shall issue shares of Common Stock or Common Stock
Equivalents; provided, however, the 90 day period set forth in this Section 4.13
shall be extended for the number of Trading Days during such period in which (i)
trading in the Common Stock is suspended by any Trading Market, or (ii)
following the Effective Date, the Registration Statement is not effective or the
prospectus included in the Registration Statement may not be used by the
Purchasers for the resale of the Underlying Shares.

     

    

     

    
      
         

      

      
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    (b)
  From the date hereof until such time as no Purchaser holds any of the
Securities, the Company shall be prohibited from effecting or entering into an
agreement to effect any Subsequent Financing involving a Variable Rate
Transaction. “Variable
Rate Transaction” means a transaction in which the Company issues or
sells (i) any debt or equity securities that are convertible into, exchangeable
or exercisable for, or include the right to receive additional shares of Common
Stock either (A) at a conversion, exercise or exchange rate or other price that
is based upon and/or varies with the trading prices of or quotations for the
shares of Common Stock at any time after the initial issuance of such debt or
equity securities, or (B) with a conversion, exercise or exchange price that is
subject to being reset at some future date after the initial issuance of such
debt or equity security or upon the occurrence of specified or contingent events
directly or indirectly related to the business of the Company or the market for
the Common Stock or (ii) enters into any agreement, including, but not limited
to, an equity line of credit, whereby the Company may sell securities at a
future determined price.

    

    (c)
  Notwithstanding the foregoing, this Section 4.13 shall not apply in
respect of an Exempt Issuance, except that no Variable Rate Transaction shall be
an Exempt Issuance.

    

    4.14
  Equal Treatment
of Purchasers. No consideration shall be offered or paid to any Person to
amend or consent to a waiver or modification of any provision of any of the
Transaction Documents unless the same consideration is also offered to all of
the parties to the Transaction Documents. For clarification purposes, this
provision constitutes a separate right granted to each Purchaser by the Company
and negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the
Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Securities or otherwise.

     

    4.15
  Short Sales and
Confidentiality After The Date Hereof. Each Purchaser, severally and not
jointly with the other Purchasers, covenants that neither it, nor any Affiliate
acting on its behalf or pursuant to any understanding with it, will execute any
Short Sales during the period commencing at the Discussion Time and ending at
the time that the transactions contemplated by this Agreement are first publicly
announced as described in Section 4.6.   Each Purchaser, severally and not
jointly with the other Purchasers, covenants that until such time as the
transactions contemplated by this Agreement are publicly disclosed by the
Company as described in Section 4.6, such Purchaser will maintain the
confidentiality of the existence and terms of this transaction and the
information included in the Disclosure Schedules.  Each Purchaser severally
and not jointly with any other Purchaser, acknowledges the positions of the
Commission as set forth in Item 65, Section A, of the Manual of Publicly
Available Telephone Interpretations, dated July 1997, compiled by the Office of
Chief Counsel, Division of Corporation Finance. N otwithstanding the foregoing,
no Purchaser makes any representation, warranty or covenant hereby that it will
not engage in Short Sales in the securities of the Company after the time that
the transactions contemplated by this Agreement are first publicly announced as
described in Section 4.6; provided, however, each Purchaser agrees, severally
and not jointly with any other Purchasers, that they will not enter into any Net
Short Sales (as hereinafter defined) from the period commencing on the Closing
Date and ending on the earlier of (i) the 12 month anniversary of the Effective
Date or (ii) the 12 month anniversary of the Effectiveness Date (as defined in
the Registration Rights Agreement) of the initial Registration Statement . 
For purposes of this Section 4.15, a “ Net Short Sale ” by
any Purchaser shall mean a sale of Common Stock by such Purchaser that is marked
as a short sale and that is made at a time when there is no equivalent
offsetting long position in Common Stock held by such Purchaser.  For
purposes of determining whether there is an equivalent offsetting long position
in Common Stock held by the Purchaser, Underlying Shares that have not yet been
converted pursuant to the shares of Preferred Stock and Warrant Shares that have
not yet been exercised pursuant to the Warrants shall be deemed to be held long
by the Purchaser, and the amount of shares of Common Stock held in a long
position shall be all unconverted   Underlying Shares   and unexercised Warrant
Shares (ignoring any exercise limitations included therein) issuable to such
Purchaser on such date, plus any shares of Common Stock or Common Stock
Equivalents otherwise then held by such Purchaser .  Notwithstanding the
foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser’s
assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such
Purchaser’s assets, the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the
investment decision to purchase the Securities covered by this
Agreement.

     

    

     

    
      
         

      

      
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    4.16
  Form D; Blue
Sky Filings. The Company agrees to timely file a Form D with respect to
the Securities as required under Regulation D and to provide a copy thereof,
promptly upon request of any Purchaser. The Company shall take such action as
the Company shall reasonably determine is necessary in order to obtain an
exemption for, or to qualify the Securities for, sale to the Purchasers at the
Closing under applicable securities or “Blue Sky” laws of the states of the
United States, and shall provide evidence of such actions promptly upon request
of any Purchaser.

     

    4.17
  Capital
Change. Until the one year anniversary of the Effective Date, the Company
shall not undertake a reverse or forward stock split or reclassification of the
Common Stock without the prior written consent of the Purchasers holding a
majority in interest of the shares of Preferred Stock.

     

    ARTICLE
V

    MISCELLANEOUS

     

    5.1 Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s
obligations hereunder only and without any effect whatsoever on the obligations
between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before December [__],
2007; provided
, however ,
that such termination will not affect the right of any party to sue for any
breach by the other party (or parties).

     

    5.2 Fees and Expenses. At
the Closing, the Company has agreed to reimburse (i) Vision the non-accountable
sum of $65,000 for its legal fees and expense and due diligence fees and
expenses and (ii) [NAME OF PLATINUM MONTAUR ENTITY] the non-accountable sum of
$10,000 for its due diligence fees and expenses. The Company shall deliver to
each Purchaser, prior to the Closing, a completed and executed copy of the
Closing Statement, attached hereto as Annex A . Except as
expressly set forth in the Transaction Documents to the contrary, each party
shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement.
The Company shall pay all transfer agent fees, stamp taxes and other taxes and
duties levied in connection with the delivery of any Securities to the
Purchasers.

     

    

     

    
      
         

      

      
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    5.3 Entire Agreement. The
Transaction Documents, together with the exhibits and schedules thereto, contain
the entire understanding of the parties with respect to the subject matter
hereof and supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have been merged
into such documents, exhibits and schedules.

     

    5.4
  Notices.
Any and all notices or other communications or deliveries required or permitted
to be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and communications
shall be as set forth on the signature pages attached hereto.

     

    5.5
  Amendments;
Waivers. No provision of this Agreement may be waived, modified,
supplemented or amended except in a written instrument signed, in the case of an
amendment, by the Company and the Purchasers holding 67% in interest of the
Securities then outstanding or, in the case of a waiver, by the party against
whom enforcement of any such waived provision is sought. No waiver of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such
right.

     

    5.6
  Headings. The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    5.7
  Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and permitted assigns. The Company may not
assign this Agreement or any rights or obligations hereunder without the prior
written consent of each Purchaser (other than by merger). Any Purchaser may
assign any or all of its rights under this Agreement to any Person to whom such
Purchaser assigns or transfers any Securities, provided that such transferee
agrees in writing to be bound, with respect to the transferred Securities, by
the provisions of the Transaction Documents that apply to the
“Purchasers.”

     

    

     

    
      
         

      

      
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    5.8
  No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person,
except as otherwise set forth in Section 4.10.

     

    5.9
  Governing
Law. All questions concerning the construction, validity, enforcement and
interpretation of the Transaction Documents shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York,
without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and
defense of the transactions contemplated by this Agreement and any other
Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, borough of Manhattan
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper or is an inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other
manner permitted by law. If either party shall commence an action or proceeding
to enforce any provisions of the Transaction Documents, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for
its reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or
proceeding.

     

    5.10
  Survival. The
representations and warranties shall survive the Closing and the delivery of the
Securities for the applicable statute of limitations.

     

    5.11
  Execution. This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile or “.pdf” signature page were an original thereof.

     

    

     

    
      
         

      

      
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    5.12
  Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     

    5.13
  Rescission and
Withdrawal Right. Notwithstanding anything to the contrary contained in
(and without limiting any similar provisions of) any of the other Transaction
Documents, whenever any Purchaser exercises a right, election, demand or option
under a Transaction Document and the Company does not timely perform its related
obligations within the periods therein provided, then such Purchaser may rescind
or withdraw, in its sole discretion from time to time upon written notice to the
Company, any relevant notice, demand or election in whole or in part without
prejudice to its future actions and rights; provided , however , that in the
case of a rescission of a conversion of the Preferred Stock or exercise of a
Warrant, the Purchaser shall be required to return any shares of Common Stock
subject to any such rescinded conversion or exercise notice.

     

    5.14
  Replacement of
Securities. If any certificate or instrument evidencing any Securities is
mutilated, lost, stolen or destroyed, the Company shall issue or cause to be
issued in exchange and substitution for and upon cancellation thereof (in the
case of mutilation), or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction. The applicant for a new certificate
or instrument under such circumstances shall also pay any reasonable third-party
costs (including customary indemnity) associated with the issuance of such
replacement Securities.

     

    5.15
  Remedies. In addition
to being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, each of the Purchasers and the Company will be
entitled to specific performance under the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss
incurred by reason of any breach of obligations contained in the Transaction
Documents and hereby agrees to waive and not to assert in any action for
specific performance of any such obligation the defense that a remedy at law
would be adequate.

     

    5.16
  Payment Set
Aside. To the extent that the Company makes a payment or payments to any
Purchaser pursuant to any Transaction Document or a Purchaser enforces or
exercises its rights thereunder, and such payment or payments or the proceeds of
such enforcement or exercise or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other person under any law (including, without
limitation, any bankruptcy law, state or federal law, common law or equitable
cause of action), then to the extent of any such restoration the obligation or
part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

     

    

     

    
      
         

      

      
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    5.17
Usury. To the
extent it may lawfully do so, the Company hereby agrees not to insist upon or
plead or in any manner whatsoever claim, and will resist any and all efforts to
be compelled to take the benefit or advantage of, usury laws wherever enacted,
now or at any time hereafter in force, in connection with any claim, action or
proceeding that may be brought by any Purchaser in order to enforce any right or
remedy under any Transaction Document. Notwithstanding any provision to the
contrary contained in any Transaction Document, it is expressly agreed and
provided that the total liability of the Company under the Transaction Documents
for payments in the nature of interest shall not exceed the maximum lawful rate
authorized under applicable law (the “ Maximum Rate ”), and,
without limiting the foregoing, in no event shall any rate of interest or
default interest, or both of them, when aggregated with any other sums in the
nature of interest that the Company may be obligated to pay under the
Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum
contract rate of interest allowed by law and applicable to the Transaction
Documents is increased or decreased by statute or any official governmental
action subsequent to the date hereof, the new maximum contract rate of interest
allowed by law will be the Maximum Rate applicable to the Transaction Documents
from the effective date forward, unless such application is precluded by
applicable law. If under any circumstances whatsoever, interest in excess of the
Maximum Rate is paid by the Company to any Purchaser with respect to
indebtedness evidenced by the Transaction Documents, such excess shall be
applied by such Purchaser to the unpaid principal balance of any such
indebtedness or be refunded to the Company, the manner of handling such excess
to be at such Purchaser’s election.

     

    5.18
  Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each
Purchaser under any Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any
way for the performance or non-performance of the obligations of any other
Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, 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
with respect to such obligations or the transactions contemplated by the
Transaction Documents. Each Purchaser shall be entitled to independently protect
and enforce its rights, including without limitation, the rights arising out of
this Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose. Each Purchaser has been represented by its own
separate legal counsel in their review and negotiation of the Transaction
Documents. For reasons of administrative convenience only, Purchasers and their
respective counsel have chosen to communicate with the Company through FWS. FWS
does not represent all of the Purchasers but only Vision. The Company has
elected to provide all Purchasers with the same terms and Transaction Documents
for the convenience of the Company and not because it was required or requested
to do so by the Purchasers.

     

    5.19
  Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages
or other amounts owing under the Transaction Documents is a continuing
obligation of the Company and shall not terminate until all unpaid partial
liquidated damages and other amounts have been paid notwithstanding the fact
that the instrument or security pursuant to which such partial liquidated
damages or other amounts are due and payable shall have been
canceled.

     

    

     

    
      
         

      

      
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    5.20
  Saturdays,
Sundays, Holidays, etc.   If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall not be a Business Day, then such action may be taken or such right may be
exercised on the next succeeding Business Day.

     

    5.21
  Construction. The
parties agree that each of them and/or their respective counsel has reviewed and
had an opportunity to revise the Transaction Documents and, therefore, the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments hereto.

     

    5.22
  Waiver of Jury
Trial. In any action, suit or proceeding in any jurisdiction brought by
any party against any other party, the parties each knowingly and intentionally,
to the greatest extent permitted by applicable law, hereby absolutely,
unconditionally, irrevocably and expressly waives forever trial by
jury.

     

    [Signature
Page Follows]

     

    

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

    

    
      	
              Marine
      Park Holdings, Inc.

            	
              Address/Facsimile
      Number/E-mail

              Address for
      Notice:

            

    

    

    
      	By:   /s/ Branislav
      Vajdic                                                   
      
	
              Name: Branislav
      Vajdic  

            
	
              Title: President   
      

            

    

    

    
      	
              With
      a copy to (which shall not constitute
notice):

            

    

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

     

    

     

    
      
         

      

      
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    [PURCHASER
SIGNATURE PAGES TO NEW CARDIO SECURITIES PURCHASE AGREEMENT]

    

    IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
to be duly executed by their respective authorized signatories as of the date
first indicated above.

     

    Name of
Purchaser: ____________________________________________________

     

    Signature of Authorized Signatory of
Purchaser : __________________________

     

    Name of
Authorized Signatory: ____________________________________

     

    Title of
Authorized Signatory: _____________________________________

     

    Email
Address of Authorized Signatory:
___________________________________________

     

    Fax
Number of Authorized Signatory:
_________________________________________

    

    Address
for Notice of Purchaser:

    

    Address
for Delivery of Securities for Purchaser (if not same as address for
notice):

    

    Subscription
Amount:____________

     

    Shares of
Preferred Stock:____________

    

    EIN
Number: [PROVIDE THIS UNDER
SEPARATE COVER]

    

    [SIGNATURE
PAGES CONTINUE]

     

    

     

    
      
         

      

      
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    Annex
A

    

    CLOSING
STATEMENT

    

    Pursuant
to the attached Securities Purchase Agreement, dated as of the date hereto, the
purchasers shall purchase up to $12,000,000 of Preferred Stock and Warrants from
Marine Park Holdings, Inc., a ________corporation (the “ Company ”). All funds
will be wired into an account maintained by the Company. All funds will be
disbursed in accordance with this Closing Statement.

    

    
      	
               
      

            	
              Disbursement Date:
        December ___, 2007

            

    

    
      	
               
      

            	
               

            

    

    
      

       

      

    

     

     

    
      	
              I. PURCHASE
      PRICE

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              Gross
      Proceeds to be Received

            	 
      	
              $

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              II.   DISBURSEMENTS

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
              $ 

            	 
      	 
      
	 
      	 
      	
              $

            	 
      	 
      
	 
      	 
      	
              $

            	 
      	 
      
	 
      	 
      	
              $

            	 
      	 
      
	 
      	 
      	
              $

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              Total
      Amount Disbursed:

            	 
      	
              $

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              WIRE
      INSTRUCTIONS :

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              To:
      _____________________________________

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              To:
      _____________________________________

            	 
      	 
      	 
      	 
      

    

     

    

     

    
       

    

    
      
         

      

      
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    EXHIBIT
A

    

    MARINE
PARK HOLDINGS, INC.

    

    CERTIFICATE
OF DESIGNATION OF PREFERENCES,

    RIGHTS
AND LIMITATIONS

    OF

    SERIES
A 10% CONVERTIBLE PREFERRED STOCK

    

    PURSUANT
TO SECTION 151 OF THE

    DELAWARE
GENERAL CORPORATION LAW

    

    The
undersigned, __________ and ____________, do hereby certify that:

    

    1. They
are the President and Secretary, respectively, of Marine Park Holdings, Inc., a
Delaware corporation (the “Corporation”).

    

    2. The
Corporation is authorized to issue 1,000,000 shares of preferred stock, none of
which have been issued.

    

    3. The
following resolutions were duly adopted by the board of directors of the
Corporation (the “Board of
Directors”):

    

    WHEREAS,
the certificate of incorporation of the Corporation provides for a class of its
authorized stock known as preferred stock, comprised of 1,000,000 shares, $0.001
par value per share, issuable from time to time in one or more
series;

    

    WHEREAS,
the Board of Directors is authorized to fix the dividend rights, dividend rate,
voting rights, conversion rights, rights and terms of redemption and liquidation
preferences of any wholly unissued series of preferred stock and the number of
shares constituting any series and the designation thereof, of any of them;
and

    

    WHEREAS,
it is the desire of the Board of Directors, pursuant to its authority as
aforesaid, to fix the rights, preferences, restrictions and other matters
relating to a series of the preferred stock, which shall consist of, except as
otherwise set forth in the Purchase Agreement, up to 12,000 shares of the
preferred stock which the Corporation has the authority to issue, as
follows:

    

    NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for
the issuance of a series of preferred stock for cash or exchange of other
securities, rights or property and does hereby fix and determine the rights,
preferences, restrictions and other matters relating to such series of preferred
stock as follows:

    

    1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TERMS
OF PREFERRED STOCK

    

    Section
1.  Definitions. Capitalized terms used and not
otherwise defined herein that are defined in the Purchase Agreement shall have
the meanings given such terms in the Purchase Agreement. For the purposes
hereof, the following terms shall have the following
meanings:

    

    “Alternate
Consideration” shall have the meaning set forth in Section
7(e).

     

    “Bankruptcy Event”
means any of the following events: (a) the Corporation or any Significant
Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) thereof
commences a case or other proceeding under any bankruptcy, reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or
liquidation or similar law of any jurisdiction relating to the Corporation or
any Significant Subsidiary thereof; (b) there is commenced against the
Corporation or any Significant Subsidiary thereof any such case or proceeding
that is not dismissed within 60 days after commencement; (c) the Corporation or
any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any
order of relief or other order approving any such case or proceeding is entered;
(d) the Corporation or any Significant Subsidiary thereof suffers any
appointment of any custodian or the like for it or any substantial part of its
property that is not discharged or stayed within 60 calendar days after such
appointment; (e) the Corporation or any Significant Subsidiary thereof makes a
general assignment for the benefit of creditors; (f) the Corporation or any
Significant Subsidiary thereof calls a meeting of its creditors with a view to
arranging a composition, adjustment or restructuring of its debts; or (g) the
Corporation or any Significant Subsidiary thereof, by any act or failure
to act, expressly indicates its consent to, approval of or acquiescence in any
of the foregoing or takes any corporate or other action for the purpose of
effecting any of the foregoing.

    

    “Base Conversion
Price” shall have the meaning set forth in Section 7(b).

    

    “Business Day” means
any day except Saturday, Sunday, any day which shall be a federal legal holiday
in the United States or any day on which banking institutions in the State of
New York are authorized or required by law or other governmental action to
close.

    

    “Buy-In” shall have
the meaning set forth in Section 6(e)(iii).

    

    2

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    “Change of Control
Transaction” means the occurrence after the date of the Merger (as
defined in the Purchase Agreement) and after giving effect to the issuance of
the Preferred Stock as provided in the Purchase Agreement of any of (i) an
acquisition after the date hereof by an individual, legal entity or “group” (as
described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective
control (whether through legal or beneficial ownership of capital stock of the
Corporation, by contract or otherwise) of in excess of 33% of the voting
securities of the Corporation (other than by means of conversion or exercise of
Preferred Stock and the Securities issued together with the Preferred Stock), or
(ii) the Corporation merges into or consolidates with any other Person, or any
Person merges into or consolidates with the Corporation and, after giving effect
to such transaction, the stockholders of the Corporation immediately prior to
such transaction own less than 66% of the aggregate voting power of the
Corporation or the successor entity of such transaction, or (iii) the
Corporation sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Corporation immediately prior to such
transaction own less than 66% of the aggregate voting power of the acquiring
entity immediately after the transaction, or (iv) a replacement at one time or
within a one year period of more than one-half of the members of the
Corporation’s board of directors which is not approved by a majority of those
individuals who are members of the board of directors on the date hereof (or by
those individuals who are serving as members of the board of directors on any
date whose nomination to the board of directors was approved by a majority of
the members of the board of directors who are members on the date hereof), or
(v) the execution by the Corporation of an agreement to which the Corporation is
a party or by which it is bound, providing for any of the events set forth in
clauses (i) through (iv) above.

    

    “Closing Date” means
the Trading Day when all of the Transaction Documents have been executed and
delivered by the applicable parties thereto and all conditions precedent to (i)
each Holder’s obligations to pay the Subscription Amount and (ii) the
Corporation’s obligations to deliver the Securities have been satisfied or
waived.

    

    “Commission” means the
Securities and Exchange Commission.

    

    “Common Stock” means
the Corporation’s common stock, par value $0.001 per share, and stock of any
other class of securities into which such securities may hereafter be
reclassified or changed into.

    

    “Common Stock
Equivalents” means any securities of the Corporation or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or
exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

    

    “Conversion Amount”
means the sum of the Stated Value at issue.

    

    “Conversion Date”
shall have the meaning set forth in Section 6(a).

    

    “Conversion Price”
shall have the meaning set forth in Section 6(b).

    

    “Conversion Shares”
means, collectively, the shares of Common Stock issuable upon conversion of the
shares of Preferred Stock in accordance with the terms hereof.

    

    3

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    “Conversion Shares
Registration Statement” means a registration statement that registers the
resale of all Conversion Shares of the Holders, who shall be named as a “selling
stockholder” therein and meets the requirements of the Registration Rights
Agreement.

     

    “Dilutive Issuance”
shall have the meaning set forth in Section 7(b).

     

    “Dilutive Issuance
Notice” shall have the meaning set forth in Section 7(b).

    

    “Dividend Payment
Date” shall have the meaning set forth in Section 3(a).

     

    “Dividend Share
Amount” shall have the meaning set forth in Section 3(a).

    

    “Effective Date” means
the date that the Conversion Shares Registration Statement is declared effective
by the Commission.

    

    “Equity Conditions”
means, during the period in question, (i) the Corporation shall have duly
honored all conversions scheduled to occur or occurring by virtue of one or more
Notices of Conversion of the applicable Holder on or prior to the dates so
requested or required, if any, (ii) the Corporation shall have paid all
liquidated damages and other amounts owing to the applicable Holder in respect
of the Preferred Stock, (iii) there is an effective Conversion Shares
Registration Statement pursuant to which the Holders are permitted to utilize
the prospectus thereunder to resell all of the shares of Common Stock issuable
pursuant to conversion of the Preferred Stock (and the Corporation believes, in
good faith, that such effectiveness will continue uninterrupted for the
foreseeable future), (iv) the Common Stock is trading on a Trading Market and
all of the shares issuable upon conversion of the Preferred Stock are listed for
trading on such Trading Market (and the Corporation believes, in good faith,
that trading of the Common Stock on a Trading Market will continue uninterrupted
for the foreseeable future), (v) there is a sufficient number of authorized, but
unissued and otherwise unreserved, shares of Common Stock for the issuance of
all of the shares of Common Stock issuable pursuant to the Transaction
Documents, (vi) there is no existing Triggering Event or no existing event
which, with the passage of time or the giving of notice, would constitute a
Triggering Event, (vii) the issuance of the shares in question (or, in the case
of a Forced Conversion, the shares issuable upon conversion in full of the
Forced Conversion amount) to the applicable Holder would not violate the
limitations set forth in Section 6(c), (viii) there has been no public
announcement of a pending or proposed Fundamental Transaction or Change of
Control Transaction that has not been consummated, and (ix) the applicable
Holder is not in possession of any information provided by the Company that
constitutes, or may constitute, material non-public information.

    

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    4

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    “Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees,
officers or directors of the Corporation pursuant to the Employee Stock Option
Plan (as defined in the Purchase Agreement), (b) securities upon the exercise of
or conversion of any securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock
issued and outstanding on the date of the Purchase Agreement, provided that such
securities have not been amended since the date of the Purchase Agreement to
increase the number of such securities or to decrease the exercise or conversion
price of any such securities, and (c) securities issued pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors,
provided that any such issuance shall only be to a Person which is, itself or
through its subsidiaries, an operating company in a business synergistic with
the business of the Corporation and shall provide to the Corporation additional
benefits in addition to the investment of funds, but shall not include a
transaction in which the Corporation is issuing securities primarily for the
purpose of raising capital or to an entity whose primary business is investing
in securities.

     

    “Forced Conversion”
means a conversion of the Preferred Stock into Common Stock by the Company in
accordance with Section 8.

     

    “Forced Conversion
Amount” means the sum of (i) the aggregate Stated Value then outstanding,
(ii) accrued but unpaid dividends and (iii) all liquidated damages and other
amounts due in respect of the Preferred Stock.

     

    “Forced Conversion
Date” shall have the meaning set forth in Section 8.

     

    “Forced Conversion
Notice” shall have the meaning set forth in Section 8.

     

    “Forced Conversion Notice
Date” shall have the meaning set forth in Section 8.

     

    “Fundamental
Transaction” shall have the meaning set forth in Section
7(e).

     

    “Holder” shall have
the meaning given such term in Section 2.

    

    “Junior Securities”
means the Common Stock and all other Common Stock Equivalents of the Corporation
other than those securities which are explicitly senior or pari passu to the
Preferred Stock in dividend rights or liquidation preference.

    

    “Liquidation” shall
have the meaning set forth in Section 5.

    

    “New York Courts”
shall have the meaning set forth in Section 11(d).

    

    “Notice of Conversion”
shall have the meaning set forth in Section 6(a).

    

    “Original Issue Date”
means the date of the first issuance of any shares of the Preferred Stock
regardless of the number of transfers of any particular shares of Preferred
Stock and regardless of the number of certificates which may be issued to
evidence such Preferred Stock.

    

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    “Permitted
Indebtedness” means (a) the Indebtedness existing on the Original Issue
Date and set forth on Schedule 3.1(aa)
attached to the Purchase Agreement and (b) lease obligations and purchase money
indebtedness of up to $100,000, in the aggregate, incurred in connection with
the acquisition of capital assets and lease obligations with respect to newly
acquired or leased assets.

    

    “Permitted Lien” means
the individual and collective reference to the following: (a) Liens for taxes,
assessments and other governmental charges or levies not yet due or Liens for
taxes, assessments and other governmental charges or levies being contested in
good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of the Corporation) have been established
in accordance with GAAP; (b) Liens imposed by law which were incurred in the
ordinary course of the Corporation’s business, such as carriers’, warehousemen’s
and mechanics’ Liens, statutory landlords’ Liens, and other similar Liens
arising in the ordinary course of the Corporation’s business, and which (x) do
not individually or in the aggregate materially detract from the value of such
property or assets or materially impair the use thereof in the operation of the
business of the Corporation and its consolidated Subsidiaries or (y) which are
being contested in good faith by appropriate proceedings, which proceedings have
the effect of preventing for the foreseeable future the forfeiture or sale of
the property or asset subject to such Lien; and (c) Liens incurred in connection
with Permitted Indebtedness under clause (b) thereunder, provided that such
Liens are not secured by assets of the Corporation or its Subsidiaries other
than the assets so acquired or leased.

     

    “Preferred Stock”
shall have the meaning set forth in Section 2.

    

    “Purchase Agreement”
means the Securities Purchase Agreement, dated as of the Original Issue Date, to
which the Corporation and the original Holders are parties, as amended, modified
or supplemented from time to time in accordance with its terms.

    

    “Registration Rights
Agreement” means the Registration Rights Agreement, dated as of the date
of the Purchase Agreement, to which the Corporation and the original Holder are
parties, as amended, modified or supplemented from time to time in accordance
with its terms.

    

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

    

    “Share Delivery Date”
shall have the meaning set forth in Section 6(e).

    

    “Stated Value” shall
have the meaning set forth in Section 2, as the same may be increased pursuant
to Section 3.

    

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    “Subscription Amount”
means, as to each Purchaser, the amount in United States Dollars and in
immediately available funds to be paid for the Preferred Stock purchased
pursuant to the Purchase Agreement as specified below such Purchaser’s name on
the signature page of the Purchase Agreement and next to the heading
“Subscription Amount.”

    

    “Subsidiary” shall
have the meaning set forth in the Purchase Agreement.

    

    “Trading Day” means a
day on which the New York Stock Exchange is open for business.

    

    “Trading Market” means
the following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the American Stock Exchange, the Nasdaq
Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange or the OTC Bulletin Board.

    

    “Transaction
Documents” shall have the meaning set forth in the Purchase
Agreement.

    

    “Triggering Event”
shall have the meaning set forth in Section 9(a).

    “Triggering Redemption
Amount” means, for each share of Preferred Stock, the sum of (i) the
greater of (A) 120% of the Stated Value and (B) the product of (a) the VWAP on
the Trading Day immediately preceding the date of the Triggering Event and (b)
the Stated Value divided by the then Conversion Price, (ii) all accrued but
unpaid dividends thereon and (iii) all liquidated damages and other costs,
expenses or amounts due in respect of the Preferred Stock.

    

    “Triggering Redemption
Payment Date” shall have the meaning set forth in Section
9(b).

    

    “VWAP” means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed
or quoted for trading as reported by Bloomberg Financial L.P. (based on a
Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
time)); (b) if the OTC Bulletin Board is not a Trading Market, the volume
weighted average price of the Common Stock for such date (or the nearest
preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then
quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
are then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a
similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of the Common Stock so reported; or (d) in
all other cases, the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the Holders and reasonably
acceptable to the Corporation, the fees and expenses of which shall be paid by
the Corporation.

    

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    Section
2.  Designation,
Amount and Par Value. The
series of preferred stock shall be designated as its Series A 10% Convertible
Preferred Stock (the “Preferred
Stock”) and the number of
shares so designated shall be up to 12,000 (which shall not be subject to
increase without the written consent of all of the holders of the Preferred
Stock (each, a “Holder” and collectively, the “Holders”)). Each share of Preferred Stock
shall have a par value of $0.001 per share and a stated value equal to $1,000,
subject to increase set forth in Section 3(a) below (the “Stated
Value”).

     

    Section
3.  Dividends.

    

    a) Dividends in Cash or in
Kind. Holders shall be entitled to receive, and the Corporation shall
pay, cumulative dividends at the rate per share (as a percentage of the Stated
Value per share) of 10% per annum (subject to increase pursuant to Section
9(b)), payable quarterly
on January 1, April 1, July 1 and October 1, beginning on the first such date
after the Original Issue Date and on each Conversion Date (with respect only to
Preferred Stock being converted) (each such date, a “Dividend Payment
Date”) (if any Dividend Payment Date is not a Trading Day, the applicable
payment shall be due on the next succeeding Trading Day) in cash, or at the
Corporation’s option, in duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock as set forth in this Section 3(a), or a
combination thereof (the amount to be paid in shares of Common Stock, the “Dividend Share
Amount”). The form of dividend payments to each Holder shall be
determined in the following order of priority: (i) if funds are legally
available for the payment of dividends and the Equity Conditions have not been
met during the 20 consecutive Trading Days immediately prior to the applicable
Dividend Payment Date, in cash only; (ii) if funds are legally available for the
payment of dividends and the Equity Conditions have been met during the 20
consecutive Trading Days immediately prior to the applicable Dividend Payment
Date, at the sole election of the Corporation, in cash or shares of Common Stock
which shall be valued solely for such purpose (A) if not then effectively
registered for resale by the Holder, at 90% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date and (B) if then effectively registered for resale
by the Holder, at 100% of the average of the VWAPs for the 20 consecutive
Trading Days ending on the Trading Day that is immediately prior to the Dividend
Payment Date; (iii) if funds are not legally available for the payment of
dividends and the Equity Conditions have been met during the 20 consecutive
Trading Days immediately prior to the applicable Dividend Payment Date, in
shares of Common Stock which shall be valued solely for such purpose (A) if
not then effectively
registered for resale by the Holder, at 90% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date and (B) if then effectively registered for resale
by the Holder, at 100% of the average of the VWAPs for the 20 consecutive
Trading Days ending on the Trading Day that is immediately prior to the Dividend
Payment Date; and (iv) if funds are not legally available for the payment of
dividends and the Equity Conditions have not been met during the 20 consecutive
Trading Days immediately prior to the applicable Dividend Payment Date, then, at
the election of such Holder, (1) such dividends shall accrue to the next
Dividend Payment Date, (2) shall be accreted to, and increase, the outstanding
Stated Value, or (3) in shares of Common Stock which shall be valued solely for
such purpose (A) if not
then effectively registered for resale by the Holder, at 90% of the average of
the VWAPs for the 20 consecutive Trading Days ending on the Trading Day that is
immediately prior to the Dividend Payment Date and (B) if then effectively
registered for resale by the Holder, at 100% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date. The Holders shall have the same rights and
remedies with respect to the delivery of any such shares as if such shares were
being issued pursuant to Section 6. On the Closing Date, after giving effect to
the receipt by the Company of the proceeds from the sale of Preferred Stock
under the Purchase Agreement, the Corporation shall have notified the Holders
whether or not it may legally pay cash dividends as of the Closing Date. The
Corporation shall promptly notify the Holders at any time the Corporation shall
become able or unable, as the case may be, to legally pay cash dividends. If at
any time the Corporation has the right to pay dividends in cash or Common Stock,
the Corporation must provide the Holders with at least 20 Trading Days’ notice
of its election to pay a regularly scheduled dividend in Common Stock and
whether or not a registration statement
relating thereto is then effective (the Corporation may indicate in such notice
that the election contained in such notice shall continue for later periods
until revised by a subsequent notice). Dividends on the Preferred Stock shall be
calculated on the basis of a 360-day year, consisting of twelve 30 calendar day
periods, shall accrue daily commencing on the Original Issue Date, and shall be
deemed to accrue from such date whether or not earned or declared and whether or
not there are profits, surplus or other funds of the Corporation legally
available for the payment of dividends. Except as otherwise provided herein, if
at any time the Corporation pays dividends partially in cash and partially in
shares, then such payment shall be distributed ratably among the Holders based
upon the number of shares of Preferred Stock held by each Holder on such
Dividend Payment Date. Any dividends, whether paid in cash or shares of Common
Stock, that are not paid within three Trading Days following a Dividend Payment
Date shall continue to accrue and shall entail a late fee, which must be paid in
cash, at the rate of 18% per annum or the lesser rate permitted by applicable
law (such fees to accrue daily, from the Dividend Payment Date through and
including the date of payment). If at any time the Corporation delivers a notice
to the Holders of its election to pay the dividends in shares of Common Stock,
the Corporation shall timely file a prospectus supplement pursuant to Rule 424
disclosing such election.

    

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    b) So long as any Preferred Stock shall
remain outstanding, neither the Corporation nor any Subsidiary thereof shall
redeem, purchase or otherwise acquire directly or indirectly any Junior
Securities except as expressly permitted by Section 9(a)(ix). So long as any
Preferred Stock shall remain outstanding, neither the Corporation nor any
Subsidiary thereof shall directly or indirectly pay or declare any dividend or
make any distribution upon (other than a dividend or distribution described in
Section 6 or dividends due and paid in the ordinary course on preferred stock of
the Corporation at such times when the Corporation is in compliance with its
payment and other obligations hereunder), nor shall any distribution be made in
respect of, any Junior Securities as long as any dividends due on the Preferred
Stock remain unpaid, nor shall any monies be set aside for or applied to the
purchase or redemption (through a sinking fund or otherwise) of any Junior
Securities or shares pari passu with the Preferred
Stock.

    

    9

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    c) The Corporation acknowledges and agrees
that the capital of the Corporation (as such term is used in Section 154 of the
Delaware General Corporation Law) in respect of the Preferred Stock and any
future issuances of the Corporation’s capital stock shall be equal to the
aggregate par value of such Preferred Stock or capital stock, as the case may
be, and that, on or after the date of the Purchase Agreement, it shall not
increase the capital of the Corporation with respect to any shares of the
Corporation’s capital stock issued and outstanding on such date. The Corporation
also acknowledges and agrees that it shall not create any special reserves under
Section 171 of the Delaware General Corporation Law without the prior written
consent of each Holder.

    

    Section
4.  Voting
Rights. Except as
otherwise provided herein or as otherwise required by law, the Preferred Stock
shall have no voting rights. However, as long as any shares of Preferred Stock
are outstanding, the Corporation shall not, without the affirmative vote of the
Holders of a majority of the then outstanding shares of the Preferred Stock, (a)
alter or change adversely the powers, preferences or rights given to the
Preferred Stock or alter or amend this Certificate of Designation, (b) authorize
or create any class of stock ranking as to dividends, redemption or distribution
of assets upon a Liquidation (as defined in Section 5) senior to or otherwise
pari passu with the Preferred Stock, (c) amend
its certificate of incorporation or other charter documents in any manner that
adversely affects any rights of the Holders, (d) increase the number of
authorized shares of Preferred Stock, or (e) enter into any agreement with
respect to any of the foregoing.

     

    Section
5.  Liquidation. Upon any liquidation, dissolution or
winding-up of the Corporation, whether voluntary or involuntary (a “Liquidation”), the Holders shall be entitled to
receive out of the assets, whether capital or surplus, of the Corporation an
amount equal to 120% of the Stated Value, plus any accrued and unpaid dividends
thereon and any other fees or liquidated damages owing thereon, for each share
of Preferred Stock before any distribution or payment shall be made to the
holders of any Junior Securities, and if the assets of the Corporation shall be
insufficient to pay in full such amounts, then the entire assets to be
distributed to the Holders shall be ratably distributed among the Holders in
accordance with the respective amounts that would be payable on such shares if
all amounts payable thereon were paid in full. A Fundamental Transaction or
Change of Control Transaction shall not be deemed a Liquidation. The Corporation
shall mail written notice of any such Liquidation, not less than 45 days prior
to the payment date stated therein, to each Holder.

    

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    Section
6.  Conversion.

    

    a) Conversions at Option of
Holder. Each share of Preferred Stock shall be convertible, at any time
and from time to time from and after the Original Issue Date at the option of
the Holder thereof, into that number of shares of Common Stock (subject to the
limitations set forth in Section 6(c)) determined by dividing the Stated Value
of such share of Preferred Stock by the Conversion Price. Holders shall effect
conversions by providing the Corporation with the form of conversion notice
attached hereto as Annex A (a “Notice of
Conversion”). Each Notice of
Conversion shall specify the number of shares of Preferred Stock to be
converted, the number of shares of Preferred Stock owned prior to the conversion
at issue, the number of shares of Preferred Stock owned subsequent to the
conversion at issue and the date on which such conversion is to be effected,
which date may not be prior to the date the applicable Holder delivers by
facsimile such Notice of Conversion to the Corporation (such date, the “Conversion Date”). If
no Conversion Date is specified in a Notice of Conversion, the Conversion Date
shall be the date that such Notice of Conversion to the Corporation is deemed
delivered hereunder. The calculations and entries set forth in the Notice of
Conversion shall control in the absence of manifest or mathematical error. To
effect conversions of shares of Preferred Stock, a Holder shall not be required
to surrender the certificate(s) representing such shares of Preferred Stock to
the Corporation unless all of the shares of Preferred Stock represented thereby
are so converted, in which case such Holder shall deliver the certificate
representing such shares of Preferred Stock promptly following the Conversion
Date at issue. Shares of Preferred Stock converted into Common Stock or redeemed
in accordance with the terms hereof shall be canceled and shall not be
reissued.

    

    b) Conversion
Price. The conversion
price for the Preferred Stock shall equal $0.95, subject to adjustment herein (the
“Conversion
Price”).

    

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    c) Beneficial
Ownership Limitation. The Corporation shall not effect any
conversion of the Preferred Stock, and a Holder shall not have the right to
convert any portion of the Preferred Stock, to the extent that, after giving
effect to the conversion set forth on the applicable Notice of Conversion, such
Holder (together with such Holder’s Affiliates, and any other person or entity
acting as a group together with such Holder or any of such Holder’s Affiliates)
would beneficially own in excess of the Beneficial Ownership Limitation (as
defined below).  For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by such Holder and its Affiliates
shall include the number of shares of Common Stock issuable upon conversion of
the Preferred Stock with respect to which such determination is being made, but
shall exclude the number of shares of Common Stock which are issuable upon (A)
conversion of the remaining, unconverted Stated Value of Preferred Stock
beneficially owned by such Holder or any of its Affiliates and (B) exercise or
conversion of the unexercised or unconverted portion of any other securities of
the Corporation subject to a limitation on conversion or exercise analogous to
the limitation contained herein (including the Warrants) beneficially owned by
such Holder or any of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 6(c), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. To the extent that the limitation
contained in this Section 6(c) applies, the determination of whether the
Preferred Stock is convertible (in relation to other securities owned by such
Holder together with any Affiliates) and of how many shares of Preferred Stock
are convertible shall be in the sole discretion of such Holder, and the
submission of a Notice of Conversion shall be deemed to be such Holder’s
determination of whether the shares of Preferred Stock may be converted (in
relation to other securities owned by such Holder together with any Affiliates)
and how many shares of the Preferred Stock are convertible, in each case subject
to the Beneficial Ownership Limitation. To ensure compliance with this
restriction, each Holder will be deemed to represent to the Corporation each
time it delivers a Notice of Conversion that such Notice of Conversion has not
violated the restrictions set forth in this paragraph and the Corporation shall
have no obligation to verify or confirm the accuracy of such determination. In
addition, a determination as to any group status as contemplated above shall be
determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. For purposes of this Section 6(c), in
determining the number of outstanding shares of Common Stock, a Holder may rely
on the number of outstanding shares of Common Stock as stated in the most recent
of the following: (A) the Corporation’s most recent periodic or annual filing
with the Securitites and Exchange Commission, as the case may be, (B) a more
recent public announcement by the Corporation or (C) a more recent notice by the
Corporation or the Corporation’s transfer agent setting forth the number of
shares of Common Stock outstanding.  Upon the written or oral request of a
Holder, the Corporation shall within two Trading Days confirm orally and in
writing to such Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of
securities of the Corporation, including the Preferred Stock, by such Holder or
its Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99%
of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon conversion of
Preferred Stock held by the applicable Holder. A Holder, upon not less than 61
days’ prior notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 6(c) applicable to its Preferred
Stock. Any such increase or decrease will not be effective until the
61st day after such notice is delivered to
the Company and shall only apply to such Holder and no other Holder. The
provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 6(c) to
correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply
to a successor holder of Preferred Stock.

    

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    d) [RESERVED].

    

    e) Mechanics of
Conversion

    i. Delivery of
Certificate Upon Conversion. Not later than three Trading Days
after each Conversion Date (the “Share
Delivery Date”), the
Corporation shall deliver, or cause to be delivered, to the converting Holder
(A) a certificate or certificates which, on or after the Effective Date, shall
be free of restrictive legends and trading restrictions (other than those which
may then be required by the Purchase Agreement) representing the number of
Conversion Shares being acquired upon the conversion of shares of Preferred
Stock, and (B) a bank check in the amount of accrued and unpaid dividends (if
the Corporation has elected or is required to pay accrued dividends in cash). On
or after the Effective Date, the Corporation shall, upon request of such Holder,
use its best efforts to deliver any certificate or certificates required to be
delivered by the Corporation under this Section 6 electronically through the
Depository Trust Company or another established clearing corporation performing
similar functions. If in the case of any Notice of Conversion such certificate
or certificates are not delivered to or as directed by the applicable Holder by
the third Trading Day after the Conversion Date, the applicable Holder shall be
entitled to elect to rescind such Conversion Notice by written notice to the
Corporation at any time on or before its receipt of such certificate or
certificates, in which event the Corporation shall promptly return to such
Holder any original Preferred Stock certificate delivered to the Corporation and
such Holder shall promptly return to the Corporation any Common Stock
certificates representing the shares of Preferred Stock unsuccessfully tendered
for conversion to the Corporation.

    

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    ii. Obligation
Absolute; Partial Liquidated Damages. The Corporation’s obligation to issue
and deliver the Conversion Shares upon conversion of Preferred Stock in
accordance with the terms hereof are absolute and unconditional, irrespective of
any action or inaction by a Holder to enforce the same, any waiver or consent
with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by such
Holder or any other Person of any obligation to the Corporation or any violation
or alleged violation of law by such Holder or any other person, and irrespective
of any other circumstance which might otherwise limit such obligation of the
Corporation to such Holder in connection with the issuance of such Conversion
Shares; provided, however, that such delivery shall not operate
as a waiver by the Corporation of any such action that the Corporation may have
against such Holder. In the event a Holder shall elect to convert any or all of
the Stated Value of its Preferred Stock, the Corporation may not refuse
conversion based on any claim that such Holder or any one associated or
affiliated with such Holder has been engaged in any violation of law, agreement
or for any other reason, unless an injunction from a court, on notice to Holder,
restraining and/or enjoining conversion of all or part of the Preferred Stock of
such Holder shall have been sought and obtained, and the Corporation posts a
surety bond for the benefit of such Holder in the amount of 150% of the Stated
Value of Preferred Stock which is subject to the injunction, which bond shall
remain in effect until the completion of arbitration/litigation of the
underlying dispute and the proceeds of which shall be payable to such Holder to
the extent it obtains judgment. In the absence of such injunction, the
Corporation shall issue Conversion Shares and, if applicable, cash, upon a
properly noticed conversion. If the Corporation fails to deliver to a Holder
such certificate or certificates pursuant to Section 6(e)(i) on the second
Trading Day after the Share Delivery Date applicable to such conversion, the
Corporation shall pay to such Holder, in cash, as liquidated damages and not as
a penalty, for each $5,000 of Stated Value of Preferred Stock being converted,
$50 per Trading Day (increasing to $100 per Trading Day on the third Trading Day
and increasing to $200 per Trading Day on the sixth Trading Day after such
damages begin to accrue) for each Trading Day after such second Trading Day
after the Share Delivery Date until such certificates are delivered. Nothing
herein shall limit a Holder’s right to pursue actual damages or declare a
Triggering Event pursuant to Section 9 for the Corporation’s failure to deliver
Conversion Shares within the period specified herein and such Holder shall have
the right to pursue all remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief. The Exercise of any such rights shall not prohibit a Holder
from seeking to enforce damages pursuant to any other Section hereof or under
applicable law.

    

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    iii. Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Conversion. If the
Corporation fails to deliver to a Holder the applicable certificate or
certificates by the Share Delivery Date pursuant to Section 6(e)(i), and if
after such Share Delivery Date such Holder is required by its brokerage firm to
purchase (in an open market transaction or otherwise), or the Holder’s brokerage
firm purchases, shares of Common Stock to deliver in satisfaction of a sale by
such Holder of the Conversion Shares which such Holder was entitled to receive
upon the conversion relating to such Share Delivery Date (a “Buy-In”), then the
Corporation shall (A) pay in cash to such Holder (in addition to any other
remedies available to or elected by such Holder) the amount by which (x) such
Holder’s total purchase price (including any brokerage commissions) for the
shares of Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that such Holder was entitled to receive from
the conversion at issue multiplied by (2) the actual sale price at which the
sell order giving rise to such purchase obligation was executed (including any
brokerage commissions) and (B) at the option of such Holder, either reissue (if
surrendered) the shares of Preferred Stock equal to the number of shares of
Preferred Stock submitted for conversion or deliver to such Holder the number of
shares of Common Stock that would have been issued if the Corporation had timely
complied with its delivery requirements under Section 6(e)(i). For example, if a
Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to an attempted conversion of shares of Preferred
Stock with respect to which the actual sale price (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000
under clause (A) of the immediately preceding sentence, the Corporation shall be
required to pay such Holder $1,000. The Holder shall provide the Corporation
written notice indicating the amounts payable
to such Holder in respect of the Buy-In and, upon request of the Corporation,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Corporation’s failure to timely deliver
certificates representing shares of Common Stock upon conversion of the shares
of Preferred Stock as required pursuant to the terms hereof.

    

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    iv. Reservation
of Shares Issuable Upon Conversion. The Corporation covenants that it
will at all times reserve and keep available out of its authorized and unissued
shares of Common Stock for the sole purpose of issuance upon conversion of the
Preferred Stock and payment of dividends on the Preferred Stock, each as herein
provided, free from preemptive rights or any other actual contingent purchase
rights of Persons other than the Holders of the Preferred Stock, not less than
such aggregate number of shares of the Common Stock as shall (subject to the
terms and conditions in the Purchase Agreement) be issuable (taking into account
the adjustments of Section 7) upon the conversion of all outstanding shares of
Preferred Stock and payment of dividends hereunder. The Corporation covenants
that all shares of Common Stock that shall be so issuable shall, upon issue, be
duly authorized, validly issued, fully paid and nonassessable and, if the
Conversion Shares Registration Statement is then effective under the Securities
Act, shall be registered for public sale in accordance with such Conversion
Shares Registration Statement.

    

    v. Fractional
Shares. No fractional
shares or scrip representing fractional shares shall be issued upon the
conversion of the Preferred Stock. As to any fraction of a share which a Holder
would otherwise be entitled to purchase upon such conversion, the Corporation
shall at its election, either pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Conversion Price
or round up to the next whole share.

    

    vi. Transfer
Taxes. The issuance of
certificates for shares of the Common Stock on conversion of this Preferred
Stock shall be made without charge to any Holder for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such
certificates, provided that the Corporation shall not be required to pay any tax
that may be payable in respect of any transfer involved in the issuance and
delivery of any such certificate upon conversion in a name other than that of
the Holders of such shares of Preferred Stock and the Corporation shall not be
required to issue or deliver such certificates unless or until the Person or
Persons requesting the issuance thereof shall have paid to the Corporation the
amount of such tax or shall have established to the satisfaction of the
Corporation that such tax has been paid.

    

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    Section
7.  Certain
Adjustments.

    

    a) Stock
Dividends and Stock Splits. If the Corporation, at any time while
this Preferred Stock is outstanding: (A) pays a stock dividend or otherwise
makes a distribution or distributions payable in shares of Common Stock on
shares of Common Stock or any other Common Stock Equivalents (which, for
avoidance of doubt, shall not include any shares of Common Stock issued by the
Corporation upon conversion of, or payment of a dividend on, this Preferred
Stock); (B) subdivides outstanding shares of Common Stock into a larger number
of shares; (C) combines (including by way of a reverse stock split) outstanding
shares of Common Stock into a smaller number of shares; or (D) issues, in the
event of a reclassification of shares of the Common Stock, any shares of capital
stock of the Corporation, then the Conversion Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding any treasury shares of the Corporation) outstanding immediately
before such event and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event. Any adjustment made
pursuant to this Section 7(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b) Subsequent Equity
Sales. If, at any time while this Preferred Stock is outstanding, the
Corporation or any Subsidiary sells or grants any option to purchase or sells or
grants any right to reprice its securities, or otherwise disposes of or issues
(or announces any sale, grant or any option to purchase or other disposition)
any Common Stock or Common Stock Equivalents entitling any Person to acquire
shares of Common Stock at an effective price per share that is lower than the
then Conversion Price (such lower price, the “Base Conversion
Price” and such issuances collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share that is lower than the Conversion Price, such issuance shall be
deemed to have occurred for less than the Conversion Price on such date of the
Dilutive Issuance), then (A) as to Dilutive Issuances that occur on or before
the two year anniversary of the Original Issue Date, the Conversion Price shall
be reduced to equal the Base Conversion Price and (B) as to Dilutive Issuances
that occur after the two year anniversary of the Original Issue Date, the
Conversion Price shall be reduced by multiplying the Conversion Price by a
fraction, the numerator of which is the number of shares of Common Stock issued
and outstanding immediately prior to the Dilutive Issuance plus the number of
shares of Common Stock which the offering price for such Dilutive Issuance would
purchase at the then Conversion Price, and the
denominator of which shall be the sum of the number of shares of Common Stock
issued and outstanding immediately prior to the Dilutive Issuance plus the
number of shares of Common Stock so issued or issuable in connection with the
Dilutive Issuance. Notwithstanding the foregoing, no adjustment will be made
under this Section 7(b) in respect of an Exempt Issuance. If the Corporation
enters into a Variable Rate Transaction, despite the prohibition set forth in
the Purchase Agreement, the Corporation shall be deemed to have issued Common
Stock or Common Stock Equivalents at the lowest possible conversion price at
which such securities may be converted or exercised. The Corporation shall
notify the Holders in writing, no later than the Business Day following the
issuance of any Common Stock or Common Stock Equivalents subject to this Section
7(b), indicating therein the applicable issuance price, or applicable reset
price, exchange price, conversion price and other pricing terms (such notice,
the “Dilutive Issuance
Notice”). For purposes of clarification, whether or not the Corporation
provides a Dilutive Issuance Notice pursuant to this Section 7(b), upon the
occurrence of any Dilutive Issuance, the Holders are entitled to receive a
number of Conversion Shares based upon the Base Conversion Price on or after the
date of such Dilutive Issuance, regardless of whether a Holder accurately refers
to the Base Conversion Price in the Notice of Conversion.

    

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    c) Subsequent
Rights Offerings. If the
Corporation, at any time while this Preferred Stock is outstanding, shall issue
rights, options or warrants to all holders of Common Stock (and not to Holders)
entitling them to subscribe for or purchase shares of Common Stock at a price
per share that is lower than the VWAP on the record date referenced below, then
the Conversion Price shall be multiplied by a fraction of which the denominator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of additional shares of
Common Stock offered for subscription or purchase, and of which the numerator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of shares which the
aggregate offering price of the total number of shares so offered (assuming
delivery to the Corporation in full of all consideration payable upon exercise
of such rights, options or warrants) would purchase at such VWAP. Such
adjustment shall be made whenever such rights or warrants are issued, and shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such rights, options or
warrants.

     

    d) Pro Rata
Distributions. If the
Corporation, at any time while this Preferred Stock is outstanding, distributes
to all holders of Common Stock (and not to Holders) evidences of its
indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security (other than Common Stock, which shall
be subject to Section 7(b)), then in each such case the Conversion Price shall
be adjusted by multiplying such Conversion Price in effect immediately prior to
the record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator shall be such
VWAP on such record date less the then fair market value at such record date of
the portion of such assets, evidence of indebtedness or rights or warrants so
distributed applicable to one outstanding share of the Common Stock as
determined by the Board of Directors of the Corporation in good faith. In either
case the adjustments shall be described in a statement delivered to the Holders
describing the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

    

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    e) Fundamental
Transaction. If, at any time while this Preferred Stock is outstanding,
(A) the Corporation effects any merger or consolidation of the Corporation with
or into another Person, (B) the Corporation effects any sale of all or
substantially all of its assets in one transaction or a series of related
transactions, (C) any tender offer or exchange offer (whether by the Corporation
or another Person) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or
property, or (D) the Corporation effects any reclassification of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property
(in any such case, a “Fundamental
Transaction”), then, upon any subsequent conversion of this Preferred
Stock, the Holders shall have the right to receive, for each Conversion Share
that would have been issuable upon such conversion immediately prior to the
occurrence of such Fundamental Transaction, the same kind and amount of
securities, cash or property as it would have been entitled to receive upon the
occurrence of such Fundamental Transaction if it had been, immediately prior to
such Fundamental Transaction, the holder of one share of Common Stock (the
“Alternate
Consideration”). For purposes of any such conversion, the determination
of the Conversion Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of Alternate Consideration issuable
in respect of one share of Common Stock in such Fundamental Transaction, and the
Corporation shall apportion the Conversion Price among the Alternate
Consideration in a reasonable manner reflecting the relative value of any
different components of the Alternate Consideration. If holders of Common Stock
are given any choice as to the securities, cash or property to be received in a
Fundamental Transaction, then the Holders shall be given the same choice as to
the Alternate Consideration it receives upon any conversion of this Preferred
Stock following such Fundamental Transaction. To the extent necessary to
effectuate the foregoing provisions, any successor to the Corporation or
surviving entity in such Fundamental Transaction shall file a new Certificate of
Designation with the same terms and conditions and issue to the Holders new
preferred stock consistent with the foregoing provisions and evidencing the
Holders’ right to convert such preferred stock into Alternate Consideration. The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this Section 7(e) and insuring that this
Preferred Stock (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental
Transaction.

     

    f) Calculations. All calculations under this Section 7
shall be made to the nearest cent or the nearest 1/100th of a share, as the case
may be. For purposes of this Section 7, the number of shares of Common Stock
deemed to be issued and outstanding as of a given date shall be the sum of the
number of shares of Common Stock (excluding any treasury shares of the
Corporation) issued and outstanding.

    

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    g) Notice to
the Holders.

    

    i. Adjustment
to Conversion Price.
Whenever the Conversion Price is adjusted pursuant to any provision of this
Section 7, the Corporation shall promptly deliver to each Holder a notice
setting forth the Conversion Price after such adjustment and setting forth a
brief statement of the facts requiring such adjustment.

     

    ii. Notice to
Allow Conversion by Holder. If (A) the Corporation shall declare
a dividend (or any other distribution in whatever form) on the Common Stock, (B)
the Corporation shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Corporation shall authorize the granting
to all holders of the Common Stock of rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the
approval of any stockholders of the Corporation shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to
which the Corporation is a party, any sale or transfer of all or substantially
all of the assets of the Corporation, of any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property or (E) the
Corporation shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Corporation, then, in each case,
the Corporation shall cause to be filed at each office or agency maintained for
the purpose of conversion of this Preferred Stock, and shall cause to be
delivered to each Holder at its last address as it shall appear upon the stock
books of the Corporation, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be determined or
(y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the
date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or
other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange, provided that the failure to deliver such
notice or any defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such notice. The
Holder is entitled to convert the Conversion Amount of this Preferred Stock (or
any part hereof) during the 20-day period commencing on the date of such notice
through the effective date of the event triggering such
notice.

    

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    Section
8.  Forced
Conversion.
Notwithstanding anything herein to the contrary, if after the Effective Date (i)
the VWAP for each of any 20 consecutive Trading Day period, which 20 consecutive
Trading Day period shall have commenced only after the Effective Date
(“Threshold
Period”), exceeds 300% of
the then effective Conversion Price, and (ii) the average daily trading volume
for the previous 20 Trading Days exceeds the lesser of (A) $250,000 or (B) 0.75%
of the Company’s total market capitalization as of the Forced Conversion Notice
Date, then the Corporation may, within 1 Trading Day after the end of any such
Threshold Period, deliver a written notice to all Holders (a “Forced
Conversion Notice” and the
date such notice is delivered to all Holders, the “Forced
Conversion Notice Date”)
to cause each Holder to convert all or part of such Holder’s Preferred Stock (as
specified in such Forced Conversion Notice) plus all accrued but unpaid
dividends thereon and all liquidated damages and other amounts due in respect of
the Preferred Stock pursuant to Section 6, it being agreed that the “Conversion
Date” for purposes of Section 6 shall be deemed to occur on the third Trading
Day following the Forced Conversion Notice Date (such third Trading Day, the
“Forced
Conversion Date”). The
Corporation may not deliver a Forced Conversion Notice, and any Forced
Conversion Notice delivered by the Corporation shall not be effective, unless
all of the Equity Conditions have been met on each Trading Day during the
applicable Threshold Period through and including the later of the Forced
Conversion Date and the Trading Day after the date that the Conversion Shares
issuable pursuant to such conversion are actually delivered to the Holders
pursuant to the Forced Conversion Notice. Any Forced Conversion Notices shall be
applied ratably to all of the Holders based on each Holder’s initial purchases
of Preferred Stock hereunder, provided that any voluntary conversions by a
Holder shall be applied against such Holder’s pro rata allocation, thereby decreasing the
aggregate amount forcibly converted hereunder if less than all shares of the
Preferred Stock are forcibly converted. For purposes of clarification, a Forced
Conversion shall be subject to all of the provisions of Section 6, including,
without limitation, the provisions requiring payment of liquidated damages and
limitations on conversions.

    

    Section
9.  Redemption
Upon Triggering Events.  a) “Triggering
Event” means any one or
more of the following events (whatever the reason and whether it shall be
voluntary or involuntary or effected by operation of law or pursuant to any
judgment, decree or order of any court, or any order, rule or regulation of any
administrative or governmental body):

    

    i. the Corporation shall fail for any
reason to pay in full the amount of cash due pursuant to a Buy-In within five
calendar days after notice therefor is delivered hereunder or shall fail to pay
all amounts owed on account of any Event (as defined in the Registration Rights
Agreement) within five days of the date due;

    

    ii. the Corporation shall fail to have
available a sufficient number of authorized and unreserved shares of Common
Stock to issue to such Holder upon a conversion hereunder;

    

    iii. Reserved

    

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    iv. the Corporation shall redeem more than
a de minimis number of Junior Securities other than
as to repurchases of Common Stock or Common Stock Equivalents from departing
officers and directors of the Corporation, provided that, while any of the
Preferred Stock remains outstanding, such repurchases shall not exceed an
aggregate of $100,000 from all officers and directors;

    

    v. any breach of the agreements delivered
to the initial Holders at the Closing pursuant to Section 2.2(a)(iv) of the
Purchase Agreement;

    

    vi. the Corporation shall be party to a
Change of Control Transaction;

    

    vii. there shall have occurred a Bankruptcy
Event;

    

    viii. the Common Stock shall fail to be
listed or quoted for trading on a Trading Market for more than five Trading
Days, which need not be consecutive Trading Days; or

    

    ix. any monetary judgment, writ or similar
final process shall be entered or filed against the Corporation, any subsidiary
or any of their respective property or other assets for greater than $50,000,
and such judgment, writ or similar final process shall remain unvacated,
unbonded or unstayed for a period of 45 calendar days.

    

    b) Upon the occurrence of a Triggering
Event, each Holder shall (in addition to all other rights it may have hereunder
or under applicable law) have the right, exercisable at the sole option of such
Holder, to require the Corporation to, (A) with respect to the Triggering Events
set forth in Sections 9(a)(i), (iii), (iv), (vi) (as to Changes of Control
approved by the Board of Directors of the Corporation) and (vii) (as to
voluntary filings only), redeem all of the Preferred Stock then held by such
Holder for a redemption price, in cash, equal to the Triggering Redemption
Amount or (B) at the option of each Holder and with respect to the Triggering
Events set forth in Sections 9(a) (ii), (v), (vi) (as to Changes of Control not
approved by the Board of Directors of the Corporation), (vii) (as to involuntary
filings only), (viii) and (ix), either (a) redeem all of the Preferred Stock
then held by such Holder for a redemption price, in shares of Common Stock,
equal to a number of shares of Common Stock equal to the Triggering Redemption
Amount divided by 75% of the average of the 10 VWAPs immediately prior to the
date of election hereunder or (b) increase the dividend rate on all of the
outstanding Preferred Stock held by such Holder to 18% per annum thereafter. The
Triggering Redemption Amount, in cash or in shares, shall be due and payable or
issuable, as the case may be, within five Trading Days of the date on which the
notice for the payment therefor is provided by a Holder (the “Triggering
Redemption Payment Date”).
If the Corporation fails to pay in full the Triggering Redemption Amount
hereunder on the date such amount is due in accordance with this Section
(whether in cash or shares of Common Stock), the Corporation will pay interest
thereon at a rate equal to the lesser of 18% per annum or the maximum rate
permitted by applicable law, accruing daily from such date until the Triggering
Redemption Amount, plus all such interest thereon, is paid in full. For purposes
of this Section, a share of Preferred Stock is outstanding until such date as
the applicable Holder shall have received Conversion Shares upon a conversion
(or attempted conversion) thereof that meets the requirements hereof or has been
paid the Triggering Redemption Amount in cash.

    

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    Section 10.  Negative Covenants.
So long as any shares of Preferred Stock are outstanding, unless the holders of
at least 67% in Stated Value of the then outstanding shares of Preferred Stock
shall have otherwise given prior written consent, the Corporation shall not, and
shall not permit any of its subsidiaries (whether or not a Subsidiary on the
Original Issue Date) to, directly or indirectly:

    

    a) other than Permitted Indebtedness,
enter into, create, incur, assume, guarantee or suffer to exist any indebtedness
for borrowed money of any kind, including but not limited to, a guarantee, on or
with respect to any of its property or assets now owned or hereafter acquired or
any interest therein or any income or profits therefrom;

     

    b) other than Permitted Liens, enter into,
create, incur, assume or suffer to exist any Liens of any kind, on or with
respect to any of its property or assets now owned or hereafter acquired or any
interest therein or any income or profits therefrom;

    

    c) amend its certificate of incorporation,
bylaws, or other charter documents so as to materially and adversely affect any
rights of any Holder;

    

    d) amend this Certificate of
Designations;

    

    e) repay, repurchase or offer to repay,
repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock,
Common Stock Equivalents or Junior Securities, except for the Conversion Shares
to the extent permitted or required under the Transaction Documents or as
otherwise permitted by the Transaction Documents;

    

    f) enter into any agreement or
understanding with respect to any of the foregoing; or

    

    g) pay cash dividends or distributions on
Junior Securities of the Corporation. 

    

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    Section
11. Miscellaneous.

    

    a) Notices. Any and all notices or other
communications or deliveries to be provided by the Holders hereunder including,
without limitation, any Notice of Conversion, shall be in writing and delivered
personally, by facsimile, or sent by a nationally recognized overnight courier
service, addressed to the Corporation, at the address set forth above, facsimile
number _______, Attention:
_________________or such
other facsimile number or address as the Corporation may specify for such
purposes by notice to the Holders delivered in accordance with this Section 11.
Any and all notices or other communications or deliveries to be provided by the
Corporation hereunder shall be in writing and delivered personally, by
facsimile, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number or address of such Holder
appearing on the books of the Corporation, or if no such facsimile number or
address appears on the books of the Corporation, at the principal place of
business of the Holders. Any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section 11 prior to 5:30 p.m. (New York City
time) on any date, (ii) the date immediately following the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
number specified in this Section 11 between 5:30 p.m. and 11:59 p.m. (New York
City time) on any date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv)
upon actual receipt by the party to whom such notice is required to be
given.

     

    b) Absolute
Obligation. Except as
expressly provided herein, no provision of this Certificate of Designation shall
alter or impair the obligation of the Corporation, which is absolute and
unconditional, to pay liquidated damages, accrued dividends and accrued
interest, as applicable, on the shares of Preferred Stock at the time, place,
and rate, and in the coin or currency, herein prescribed.

     

    c) Lost or
Mutilated Preferred Stock Certificate. If a Holder’s Preferred Stock
certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall
execute and deliver, in exchange and substitution for and upon cancellation of a
mutilated certificate, or in lieu of or in substitution for a lost, stolen or
destroyed certificate, a new certificate for the shares of Preferred Stock so
mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such
loss, theft or destruction of such certificate, and of the ownership hereof
reasonably satisfactory to the Corporation.

    

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    d) Governing Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Certificate of Designation shall be governed by and construed and
enforced in accordance with the internal laws of the State of Delaware, without
regard to the principles of conflict of laws thereof. Each party agrees that all
legal proceedings concerning the interpretation, enforcement and defense of the
transactions contemplated by any of the Transaction Documents (whether brought
against a party hereto or its respective Affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and
federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”).
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of
the New York Courts for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of such New York Courts, or such New York Courts are improper or
inconvenient venue for such proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Certificate of Designation and
agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by applicable law. Each
party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Certificate of Designation or the
transactions contemplated hereby. If either party shall commence an action or
proceeding to enforce any provisions of this Certificate of Designation, then
the prevailing party in such action or proceeding shall be reimbursed by the
other party for its attorneys’ fees and other costs and expenses incurred in the
investigation, preparation and prosecution of such action or
proceeding.

     

    e) Waiver. Any waiver by the Corporation or a
Holder of a breach of any provision of this Certificate of Designation shall not
operate as or be construed to be a waiver of any other breach of such provision
or of any breach of any other provision of this Certificate of Designation or a
waiver by any other Holders. The failure of the Corporation or a Holder to
insist upon strict adherence to any term of this Certificate of Designation on
one or more occasions shall not be considered a waiver or deprive that party (or
any other Holder) of the right thereafter to insist upon strict adherence to
that term or any other term of this Certificate of Designation. Any waiver by
the Corporation or a Holder must be in writing.

     

    f) Severability. If any provision of this Certificate
of Designation is invalid, illegal or unenforceable, the balance of this
Certificate of Designation shall remain in effect, and if any provision is
inapplicable to any Person or circumstance, it shall nevertheless remain
applicable to all other Persons and circumstances. If it shall be found that any
interest or other amount deemed interest due hereunder violates the applicable
law governing usury, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum rate of interest permitted under
applicable law.

    

    g) Next
Business Day. Whenever any
payment or other obligation hereunder shall be due on a day other than a
Business Day, such payment shall be made on the next succeeding Business
Day.

    

    h) Headings. The headings contained herein are for
convenience only, do not constitute a part of this Certificate of Designation
and shall not be deemed to limit or affect any of the provisions
hereof.

    

    25

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    i) Status of
Converted or Redeemed Preferred Stock. Shares of Preferred Stock may only be
issued pursuant to the Purchase Agreement. If any shares of Preferred Stock
shall be converted, redeemed or reacquired by the Corporation, such shares shall
resume the status of authorized but unissued shares of preferred stock and shall
no longer be designated as Series A 10% Convertible Preferred
Stock.

    

    *********************

    

    26

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    RESOLVED,
FURTHER, that the Chairman, the president or any vice-president, and the
secretary or any assistant secretary, of the Corporation be and they hereby are
authorized and directed to prepare and file a Certificate of Designation of
Preferences, Rights and Limitations in accordance with the foregoing resolution
and the provisions of Delaware law.

    

    IN
WITNESS WHEREOF, the undersigned have executed this Certificate this ___ day of
December __ 2007.

    

    
      	 
      	 
      	 
      
	
              Name:

              Title:

            	 
      	
              Name:

              Title:

            

    

    

    27

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A

    

    NOTICE OF
CONVERSION

    

    (TO BE
EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES

    OF
PREFERRED STOCK)

    

    The
undersigned hereby elects to convert the number of shares of Series A 10%
Convertible Preferred Stock indicated below into shares of common stock, par
value $0.001 per share (the “Common Stock”), of
Marine Park Holdings, Inc., a Delaware corporation (the “Corporation”),
according to the conditions hereof, as of the date written below. If shares of
Common Stock are to be issued in the name of a Person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates and opinions as may be
required by the Corporation in accordance with the Purchase Agreement. No fee
will be charged to the Holders for any conversion, except for any such transfer
taxes.

    

    Conversion
calculations:

     

    Date to Effect Conversion:
________________________________________________________

     

    Number of
shares of Preferred Stock owned prior to Conversion:
____________________________

    

    Number of
shares of Preferred Stock to be Converted:
____________________________________

     

    Stated Value of shares of Preferred
Stock to be Converted: _________________________________

     

    Number of shares of Common Stock to be
Issued: ________________________________________

     

    Applicable Conversion Price: 
_______________________________________________________

     

    Number of shares of Preferred Stock
subsequent to
Conversion:  ____________________________

    Address for Delivery:
_____________________________________________________________

     

    or

     

    DWAC
Instructions:

     

    Broker no:
______________

     

    Account
no:  ________________

     

    
      	
              [HOLDER]

            
	 
      
	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:

            

    

     

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    EXHIBIT B  

    

    REGISTRATION
RIGHTS AGREEMENT

    

    This
Registration Rights Agreement (this “ Agreement ”) is made
and entered into as of December __, 2007, between Marine Park Holdings, Inc., a
Delaware corporation (the “ Company ”) and each
of the several purchasers signatory hereto (each such purchaser, a “ Purchaser ” and,
collectively, the “ Purchasers
”).

    

    This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the
date hereof, between the Company and each Purchaser (the “ Purchase Agreement
”).

    

    The
Company and each Purchaser hereby agrees as follows:

    

    1.  
Definitions

    

    Capitalized terms used and not
otherwise defined herein that are defined in the Purchase Agreement shall have
the meanings given such terms in the Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

    

    “ Advice ” shall have
the meaning set forth in Section 6(d).

    

    “ Effectiveness Date ”
means, with respect to the Initial Registration Statement required to be filed
hereunder, the 120 th
calendar day following the date hereof (or, in the event of a “full review” by
the Commission, the 150 th
calendar day following the date hereof, or, if such “full review” includes
comments from the Commission regarding the availability of Rule 415, the 180
th
calendar day following the date hereof) and with respect to any additional
Registration Statements which may be required pursuant to Section 3(c), the 90
th
calendar day following the date on which an additional Registration Statement is
required to be filed hereunder; provided , however , that in the
event the Company is notified by the Commission that one or more of the above
Registration Statements will not be reviewed or is no longer subject to further
review and comments, the Effectiveness Date as to such Registration Statement
shall be the fifth Trading Day following the date on which the Company is so
notified if such date precedes the dates otherwise required above.

     

    “ Effectiveness Period
” shall have the meaning set forth in Section 2(a).

    

    “ Event ” shall have
the meaning set forth in Section 2(b).

    

    “ Event Date ” shall
have the meaning set forth in Section 2(b).

    

    “ Filing Date ” means,
with respect to the Initial Registration Statement required hereunder, the 45
th
calendar day following the date hereof and, with respect to any additional
Registration Statements which may be required pursuant to Section 3(c), the
earliest practical date on which the Company is permitted by SEC Guidance to
file such additional Registration Statement related to the Registrable
Securities.

    

    

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    “ Holder ” or “ Holders ” means the
holder or holders, as the case may be, from time to time of Registrable
Securities.

    

    “ Indemnified Party ”
shall have the meaning set forth in Section 5(c).

    

    “ Indemnifying Party ”
shall have the meaning set forth in Section 5(c).

    

    “ Initial Registration
Statement ” means the initial Registration Statement filed pursuant to
this Agreement.

    

    “ Initial Shares ”
means a number of Registrable Securities equal to the lesser of (i) the total
number of Registrable Securities and (ii) one-third of the number of issued and
outstanding shares of Common Stock that are held by non-affiliates of the
Company on the day immediately prior to the filing date of the Initial
Registration Statement.

    

    “ Losses ” shall have
the meaning set forth in Section 5(a).

    

    “ Plan of Distribution
” shall have the meaning set forth in Section 2(a).

    

    “ Prospectus ” means
the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon
Rule 430A promulgated by the Commission pursuant to the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by a
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such
Prospectus.

    

    “ Registrable
Securities ” means (i) all of the shares of Common Stock issuable upon
conversion in full of the Preferred Stock (assuming on the date of determination
the shares of Preferred Stock are converted in full without regard to any
conversion limitations therein), (ii) all shares of Common Stock issuable as
dividends on the Preferred Stock assuming all dividend payments are made in
shares of Common Stock and the Preferred Stock is held for at least 3 years,
(iii) all Warrant Shares issuable with respect to the Series A Warrants
(assuming on the date of determination the Warrants are exercised in full
without regard to any exercise limitations therein), (iv) all Warrant Shares
issuable with respect to the Series J Warrants and Series J-A Warrants (assuming
on the date of determination the Warrants are exercised in full without regard
to any exercise limitations therein), when and if the Series J Warrants have
been exercised by the Holders thereof, (v) any additional shares of Common Stock
when and if issued in connection with any anti-dilution provisions in the
Preferred Stock or the Warrants (in each case, without giving effect to any
limitations on conversion set forth in the Certificate of Designation or
limitations on exercise set forth in the Warrant) and (v) any securities issued
or issuable upon any stock split, dividend or other distribution,
recapitalization or similar event with respect to the foregoing.

    

    

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    “ Registration
Statement ” means the registration statement required to be filed
hereunder and any additional registration statements contemplated by Section
3(c), including (in each case) the Prospectus, amendments and supplements to
such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration
statement.

    

    “ Rule 415 ” means Rule
415 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

    

    “ Rule 424 ” means Rule
424 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

    

    “ Selling Shareholder
Questionnaire ” shall have the meaning set forth in Section
3(a).

    

    “ SEC Guidance ” means
(i) any publicly-available written or oral guidance, comments, requirements or
requests of the Commission staff and (ii) the Securities Act.

    

    

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    2.  
Shelf
Registration

    

    (a)
  On or prior to each Filing Date, the Company shall prepare and file with
the Commission a Registration Statement covering the resale of all or such
maximum portion of the Registrable Securities as permitted by SEC Guidance
(provided that, the Company shall use commercially reasonable efforts to
advocate with the Commission for the registration of all of the Registrable
Securities in accordance with the SEC Guidance, including without limitation,
the Manual of Publicly Available Telephone Interpretations D.29) that are not
then registered on an effective Registration Statement for an offering to be
made on a continuous basis pursuant to Rule 415. The Registration Statement
shall be on Form S-3 (except if the Company is not then eligible to register for
resale the Registrable Securities on Form S-3, in which case such registration
shall be on another appropriate form in accordance herewith) and shall contain
(unless otherwise directed by at least an 85% majority in interest of the
Holders) substantially the “ Plan of Distribution
” attached hereto as Annex A . Subject to
the terms of this Agreement, the Company shall use its best efforts to cause a
Registration Statement to be declared effective under the Securities Act as
promptly as possible after the filing thereof, but in any event prior to the
applicable Effectiveness Date, and shall use its best efforts to keep such
Registration Statement continuously effective under the Securities Act until all
Registrable Securities covered by such Registration Statement have been sold, or
may be sold without volume restrictions pursuant to Rule 144, as determined by
the counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Transfer Agent and the affected Holders (the “
Effectiveness
Period ”). The Company shall request effectiveness of a Registration
Statement prior to the applicable Effectiveness Deadline, as of 5:00 p.m. New
York City time on a Trading Day, subsequent to notification that the
Registration Statement will not be reviewed or is no longer subject to further
review and comments. The Company shall immediately notify the Holders via
facsimile or by e-mail of the effectiveness of a Registration Statement on the
same Trading Day that the Company telephonically confirms effectiveness with the
Commission, which shall be the date requested for effectiveness of such
Registration Statement. The Company shall, by 9:30 a.m. New York City time on
the Trading Day after the effective date of such Registration Statement, file a
final Prospectus with the Commission as required by Rule 424. Failure to so
notify the Holder within 1 Trading Day of such notification of effectiveness or
failure to file a final Prospectus as foresaid shall be deemed an Event under
Section 2(b). Notwithstanding any other provision of this Agreement and subject
to the payment of liquidated damages pursuant to Section 2(b), if any SEC
Guidance sets forth a limitation on the number of Registrable Securities
permitted to be registered on a particular Registration Statement (and
notwithstanding that the Company used diligent efforts to advocate with the
Commission for the registration of all or a greater portion of Registrable
Securities), unless otherwise directed in writing by a Holder as to its
Registrable Securities, the number of Registrable Securities to be registered on
such Registration Statement will be reduced in the following order (i)
Registrable Securities represented by any shares of Common Stock underlying the
Series J Warrant and Series J-A Warrant, (ii) Registrable Securities represented
by Warrant Shares (applied, in the case that some Warrant Shares may be
registered, to the Holders on a pro rata basis based on the total number of
unregistered Warrant Shares held by such Holders) underlying the Series A
Warrant, and (iii) by Registrable Securities represented by Conversion Shares
(applied, in the case that some Conversion Shares may be registered, to the
Holders on a pro rata basis based on the total number of unregistered Conversion
Shares held by such Holders); provided , however , that, prior
to any reduction in the number of Registrable Securities included in a
Registration Statement as set forth in this sentence, the number of shares of
Common Stock set forth on Schedule 6(b) hereto which shall have been included on
such Registration Statement shall be reduced by up to 100%.

     

    

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    (b)
  If: (i) the Initial Registration Statement is not filed on or prior to
its Filing Date (if the Company files the Initial Registration Statement without
affording the Holders the opportunity to review and comment on the same as
required by Section 3(a) herein, the Company shall be deemed to have not
satisfied this clause (i)), or (ii) the Company fails to file with the
Commission a request for acceleration of a Registration Statement in accordance
with Rule 461 promulgated by the Commission pursuant to the Securities Act,
within five Trading Days of the date that the Company is notified (orally or in
writing, whichever is earlier) by the Commission that such Registration
Statement will not be “reviewed” or will not be subject to further review, or
(iii) prior to the effective date of a Registration Statement, the Company fails
to file a pre-effective amendment and otherwise respond in writing to comments
made by the Commission in respect of such Registration Statement within 20
calendar days after the receipt of comments by or notice from the Commission
that such amendment is required in order for such Registration Statement to be
declared effective, or (iv) as to, in the aggregate among all Holders on a
pro-rata basis based on their purchase of the Securities pursuant to the
Purchase Agreement, a Registration Statement registering for resale all of the
Initial Shares is not declared effective by the Commission by the Effectiveness
Date of the Initial Registration Statement, or (v) all of the Registrable
Securities are not registered for resale pursuant to one or more effective
Registration Statements on or before December 31, 2008 (unless the sole reason
for such nonregistration is SEC Guidance under Rule 415 or similar rule which
limits the number of shares which may be included in a registration statement
with respect to the Holders), or (vi) after the effective date of a Registration
Statement, such Registration Statement ceases for any reason to remain
continuously effective as to all Registrable Securities included in such
Registration Statement, or the Holders are otherwise not permitted to utilize
the Prospectus therein to resell such Registrable Securities, for more than 10
consecutive calendar days or more than an aggregate of 15 calendar days (which
need not be consecutive calendar days) during any 12-month period (any such
failure or breach being referred to as an “ Event ”, and for
purposes of clause (i), (iv) and (v) the date on which such Event occurs, and
for purpose of clause (ii) the date on which such five Trading Day period is
exceeded, and for purpose of clause (iii) the date which such 20 calendar day
period is exceeded, and for purpose of clause (vi) the date on which such 10 or
15 calendar day period, as applicable, is exceeded being referred to as “ Event Date ”), then,
in addition to any other rights the Holders may have hereunder or under
applicable law, 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 Holder an
amount in cash, or in registered shares of Common Stock valued at the average of
the VWAPs for the five Trading Days ending on the second to last Trading Day
prior to payment, as partial liquidated damages and not as a penalty, equal to
2% of the aggregate purchase price paid by such Holder pursuant to the Purchase
Agreement for any unregistered Registrable Securities then held by such Holder.
The parties agree that (1) the Company shall not be liable for liquidated
damages under this Agreement with respect to any Warrants or Warrant Shares and
(2) the maximum aggregate liquidated damages payable to a Holder under this
Agreement shall be 20% of the aggregate Subscription Amount paid by such Holder
pursuant to the Purchase Agreement. If the Company fails to pay any partial
liquidated damages pursuant to this Section in full within seven days after the
date payable, the Company will pay interest thereon at a rate of 18% per annum
(or such lesser maximum amount that is permitted to be paid by applicable law)
to the Holder, accruing daily from the date such partial liquidated damages are
due until such amounts, plus all such interest thereon, are paid in full. The
partial liquidated damages pursuant to the terms hereof shall apply on a daily
pro rata basis for any portion of a month prior to the cure of an
Event.

    

    

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    3.  
Registration
Procedures .

    

    In
connection with the Company’s registration obligations hereunder, the Company
shall:

    

    (a)
  Not less than five (5) Trading Days prior to the filing of each
Registration Statement and not less than one (1) Trading Day 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), the Company shall (i) furnish to each Holder copies of all such
documents proposed to be filed, which documents (other than those incorporated
or deemed to be incorporated by reference) will be subject to the review of such
Holders, and (ii) cause its officers and directors, counsel and independent
certified public accountants to respond to such inquiries as shall be necessary,
in the reasonable opinion of respective counsel to each Holder, to conduct a
reasonable investigation within the meaning of the Securities Act. The Company
shall not file a Registration Statement or any such Prospectus or any amendments
or supplements thereto to which the Holders of a majority of the Registrable
Securities shall reasonably object in good faith, provided that, the Company is
notified of such objection in writing no later than five (5) Trading Days after
the Holders have been so furnished copies of a Registration Statement or one (1)
Trading Day after the Holders have been so furnished copies of any related
Prospectus or amendments or supplements thereto. Each Holder agrees to furnish
to the Company a completed questionnaire in the form attached to this Agreement
as Annex B (a “
Selling Shareholder
Questionnaire ”) not less than two (2) Trading Days prior to the Filing
Date or by the end of the fourth (4 th )
Trading Day following the date on which such Holder receives draft materials in
accordance with this Section.

    

    (b)
  (i) Prepare and file with the Commission such amendments, including
post-effective amendments, to a Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep a Registration Statement
continuously effective as to the applicable Registrable Securities for the
Effectiveness Period and prepare and file with the Commission such additional
Registration Statements in order to register for resale under the Securities Act
all of the Registrable Securities; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement (subject to the
terms of this Agreement), and, as so supplemented or amended, to be filed
pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any
comments received from the Commission with respect to a Registration Statement
or any amendment thereto and provide as promptly as reasonably possible to the
Holders true and complete copies of all correspondence from and to the
Commission relating to a Registration Statement (provided that, the Company may
excise any information contained therein which would constitute material
non-public information as to any Holder which has not executed a confidentiality
agreement with the Company); and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by a Registration Statement
during the applicable period in accordance (subject to the terms of this
Agreement) with the intended methods of disposition by the Holders thereof set
forth in such Registration Statement as so amended or in such Prospectus as so
supplemented.

    

    

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    (c)
  If during the Effectiveness Period, the number of Registrable Securities
at any time exceeds 100% of the number of shares of Common Stock then registered
in a Registration Statement, then the Company shall file as soon as reasonably
practicable, but in any case prior to the applicable Filing Date, an additional
Registration Statement covering the resale by the Holders of not less than the
number of such Registrable Securities.

    

    (d)
  Notify the Holders of Registrable Securities to be sold (which notice
shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by an
instruction to suspend the use of the Prospectus until the requisite changes
have been made) as promptly as reasonably possible (and, in the case of (i)(A)
below, not less than one Trading Day prior to such filing) and (if requested by
any such Person) confirm such notice in writing no later than one Trading Day
following the day (i)(A) when a Prospectus or any Prospectus supplement or
post-effective amendment to a Registration Statement is proposed to be filed;
(B) when the Commission notifies the Company whether there will be a “review” of
such Registration Statement and whenever the Commission comments in writing on
such Registration Statement; and (C) with respect to a Registration Statement or
any post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other federal or state governmental authority
for amendments or supplements to a Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission or any other
federal or state governmental authority of any stop order suspending the
effectiveness of a Registration Statement covering any or all of the Registrable
Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
Proceeding for such purpose; (v) of the occurrence of any event or passage of
time that makes the financial statements included in a Registration Statement
ineligible for inclusion therein or any statement made in a Registration
Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that
requires any revisions to a Registration Statement, Prospectus or other
documents so that, in the case of a Registration Statement or the Prospectus, as
the case may be, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading; and (vi) of the occurrence or existence of any pending
corporate development with respect to the Company that the Company believes may
be material and that, in the determination of the Company, makes it not in the
best interest of the Company to allow continued availability of a Registration
Statement or Prospectus, provided that, any and all of such information shall
remain confidential to each Holder until such information otherwise becomes
public, unless disclosure by a Holder is required by law; provided , further , that
notwithstanding each Holder’s agreement to keep such information confidential,
each such Holder makes no acknowledgement that any such information is material,
non-public information.

    

    (e)
  Use its best efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order stopping or suspending the effectiveness of a
Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable moment.

    

    

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    (f)
  Furnish to each Holder, without charge, at least one conformed copy of
each such Registration Statement and each amendment thereto, including financial
statements and schedules, all documents incorporated or deemed to be
incorporated therein by reference to the extent requested by such Person, and
all exhibits to the extent requested by such Person (including those previously
furnished or incorporated by reference) promptly after the filing of such
documents with the Commission; provided, that any such item which is available
on the EDGAR system need not be furnished in physical form.

    

    (g)
  Subject to the terms of this Agreement, the Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by each of
the selling Holders in connection with the offering and sale of the Registrable
Securities covered by such Prospectus and any amendment or supplement thereto,
except after the giving of any notice pursuant to Section 3(d).

    

    (h)
  The Company shall cooperate with any broker-dealer through which a Holder
proposes to resell its Registrable Securities in effecting a filing with the
FINRA Corporate Financing Department pursuant to NASD Rule 2710, as requested by
any such Holder, and the Company shall pay the filing fee required by such
filing within two (2) Business Days of request therefor.

    

    (i)
  Prior to any resale of Registrable Securities by a Holder, use its
commercially reasonable efforts to register or qualify or cooperate with the
selling Holders in connection with the registration or qualification (or
exemption from the Registration or qualification) of such Registrable Securities
for the resale by the Holder under the securities or Blue Sky laws of such
jurisdictions within the United States as any Holder reasonably requests in
writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or
things reasonably necessary to enable the disposition in such jurisdictions of
the Registrable Securities covered by each Registration Statement; provided,
that, the Company shall not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified, subject the Company to any
material tax in any such jurisdiction where it is not then so subject or file a
general consent to service of process in any such jurisdiction.

    

    (j)
  If requested by a Holder, cooperate with such Holders to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to be delivered to a transferee pursuant to a Registration Statement,
which certificates shall be free, to the extent permitted by the Purchase
Agreement, of all restrictive legends, and to enable such Registrable Securities
to be in such denominations and registered in such names as any such Holder may
request.

    

    

    8

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    (k)
  Upon the occurrence of any event contemplated by Section 3(d), as
promptly as reasonably possible under the circumstances taking into account the
Company’s good faith assessment of any adverse consequences to the Company and
its stockholders of the premature disclosure of such event, prepare a supplement
or amendment, including a post-effective amendment, to a Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed
to be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither a Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.   If the Company notifies the Holders in accordance with
clauses (iii) through (vi) of Section 3(d) above to suspend the use of any
Prospectus until the requisite changes to such Prospectus have been made, then
the Holders shall suspend use of such Prospectus. The Company will use its best
efforts to ensure that the use of the Prospectus may be resumed as promptly as
is practicable. The Company shall be entitled to exercise its right under this
Section 3(k) to suspend the availability of a Registration Statement and
Prospectus, subject to the payment of partial liquidated damages otherwise
required pursuant to Section 2(b), for a period not to exceed 60 calendar days
(which need not be consecutive days) in any 12 month period .

    

    (l)
  Comply with all applicable rules and regulations of the
Commission.

    

    (m)
  The Company may require each selling Holder to furnish to the Company a
certified statement as to the number of shares of Common Stock beneficially
owned by such Holder and, if required by the Commission, the natural persons
thereof that have voting and dispositive control over the shares. During any
periods that the Company is unable to meet its obligations hereunder with
respect to the registration of the Registrable Securities solely because any
Holder fails to furnish such information within three Trading Days of the
Company’s request, any liquidated damages that are accruing at such time as to
such Holder only shall be tolled and any Event that may otherwise occur solely
because of such delay shall be suspended as to such Holder only, until such
information is delivered to the Company.

    

    4.  
Registration
Expenses . All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration
Statement. The fees and expenses referred to in the foregoing sentence shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and auditors) (A)
with respect to filings made with the Commission, (B) with respect to filings
required to be made with any Trading Market on which the Common Stock is then
listed for trading, (C) in compliance with applicable state securities or Blue
Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection with
Blue Sky qualifications or exemptions of the Registrable Securities) and (D) if
not previously paid by the Company in connection with an Issuer Filing, with
respect to any filing that may be required to be made by any broker through
which a Holder intends to make sales of Registrable Securities with the FINRA
pursuant to NASD Rule 2710, so long as the broker is receiving no more than a
customary brokerage commission in connection with such sale, (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses
of all other Persons retained by the Company in connection with the consummation
of the transactions contemplated by this Agreement. In addition, the Company
shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual
audit and the fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange as required hereunder. In no
event shall the Company be responsible for any broker or similar commissions of
any Holder or, except to the extent provided for in the Transaction Documents,
any legal fees or other costs of the Holders.

    

    

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    5.  
Indemnification.

    

    (a)
  Indemnification
by the Company . The Company shall, notwithstanding any termination of
this Agreement, indemnify and hold harmless each Holder, the officers,
directors, members, partners, agents, brokers (including brokers who offer and
sell Registrable Securities as principal as a result of a pledge or any failure
to perform under a margin call of Common Stock), investment advisors and
employees (and any other Persons with a functionally equivalent role of a Person
holding such titles, notwithstanding a lack of such title or any other title) of
each of them, each Person who controls any such Holder (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, members, shareholders, partners, agents and employees (and
any other Persons with a functionally equivalent role of a Person holding such
titles, notwithstanding a lack of such title or any other title) of each such
controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable attorneys’ fees) and expenses (collectively, “
Losses ”), as
incurred, arising out of or relating to (1) any untrue or alleged untrue
statement of a material fact contained in a Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading or (2) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or any state securities law, or any rule or
regulation thereunder, in connection with the performance of its obligations
under this Agreement, except to the extent, but only to the extent, that (i)
such untrue statements or omissions are based solely upon information regarding
such Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in a
Registration Statement, such Prospectus or in any amendment or supplement
thereto (it being understood that the Holder has approved Annex A hereto for
this purpose) or (ii) in the case of an occurrence of an event of the type
specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(d). The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding arising from
or in connection with the transactions contemplated by this Agreement of which
the Company is aware.

    

    

    10

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    (b)
  Indemnification
by Holders . Each Holder shall, severally and not jointly, indemnify and
hold harmless the Company, its directors, officers, agents and employees, each
Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors, officers,
agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent
arising out of or based solely upon: (x) such Holder’s failure to comply with
the prospectus delivery requirements of the Securities Act or (y) any untrue or
alleged untrue statement of a material fact contained in any Registration
Statement, any Prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading (i) to the extent, but only to the extent,
that such untrue statement or omission is contained in any information so
furnished in writing by such Holder to the Company specifically for inclusion in
such Registration Statement or such Prospectus or (ii) to the extent that such
information relates to such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by
such Holder expressly for use in a Registration Statement (it being understood
that the Holder has approved Annex A hereto for this purpose), such Prospectus
or in any amendment or supplement thereto or (ii) in the case of an occurrence
of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior to
the receipt by such Holder of the Advice contemplated in Section 6(d). In no
event shall the liability of any selling Holder hereunder be greater in amount
than the dollar amount of the net proceeds received by such Holder upon the sale
of the Registrable Securities giving rise to such indemnification
obligation.

    

    (c)
  Conduct of
Indemnification Proceedings . If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “ Indemnified Party ”),
such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “ Indemnifying Party ”)
in writing, and the Indemnifying Party shall have the right to assume the
defense thereof, including the employment of counsel reasonably satisfactory to
the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that, the failure of any Indemnified
Party to give such notice shall not relieve the Indemnifying Party of its
obligations or liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) that such
failure shall have prejudiced the Indemnifying Party.

    

    

    11

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
expenses; (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (3) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified Party
and the Indemnifying Party, and counsel to the Indemnified Party shall
reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party
in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and the reasonable fees and expenses of no more than one
separate counsel shall be at the expense of the Indemnifying Party). The
Indemnifying Party shall not be liable for any settlement of any such Proceeding
effected without its written consent, which consent shall not be unreasonably
withheld or delayed. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

    

    Subject
to the terms of this Agreement, all reasonable fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent incurred
in connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified
Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party; provided, that, the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is judicially
determined not to be entitled to indemnification hereunder.

    

    (d)
  Contribution . If the
indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
Party or insufficient to hold an Indemnified Party harmless for any Losses, then
each Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in this Agreement, any reasonable attorneys’ or other fees or expenses incurred
by such party in connection with any Proceeding to the extent such party would
have been indemnified for such fees or expenses if the indemnification provided
for in this Section was available to such party in accordance with its
terms.

    

    

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    The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
net proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

    

    The
indemnity and contribution agreements contained in this Section are in addition
to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

    

    6.  
Miscellaneous
..

    

    (a)
  Remedies
.. In the event of a breach by the Company or by a Holder of any of their
respective obligations under this Agreement, each Holder or the Company, as the
case may be, in addition to being entitled to exercise all rights granted by law
and under this Agreement, including recovery of damages, shall be entitled to
specific performance of its rights under this Agreement. The Company and each
Holder agree that monetary damages would not provide adequate compensation for
any losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall not assert or shall
waive the defense that a remedy at law would be adequate.

    

    (b)
  No Piggyback on
Registrations; Prohibition on Filing Other Registration Statements .
Except as set forth on Schedule 6(b)
attached hereto, neither the Company nor any of its security holders (other than
the Holders in such capacity pursuant hereto) may include securities of the
Company in any Registration Statements other than the Registrable Securities.
The Company shall not file any other registration statements until all
Registrable Securities are registered pursuant to a Registration Statement that
is declared effective by the Commission, provided that this Section 6(b) shall
not prohibit the Company from filing amendments to registration statements filed
prior to the date of this Agreement.

    

    (c)
  Compliance . Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to a Registration Statement.

    

    

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    (d)
  Discontinued
Disposition . By its acquisition of Registrable Securities, each Holder
agrees that, upon receipt of a notice from the Company of the occurrence of any
event of the kind described in Section 3(d)(iii) through (vi), such Holder will
forthwith discontinue disposition of such Registrable Securities under a
Registration Statement until it is advised in writing (the “ Advice ”) by the
Company that the use of the applicable Prospectus (as it may have been
supplemented or amended) may be resumed. The Company will use its best efforts
to ensure that the use of the Prospectus may be resumed as promptly as is
practicable. The Company agrees and acknowledges that any periods during which
the Holder is required to discontinue the disposition of the Registrable
Securities hereunder shall be subject to the provisions of Section
2(b).

    

    (e)
  Piggy-Back
Registrations . If, at any time during the Effectiveness Period, there is
not an effective Registration Statement covering all of the Registrable
Securities and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account
or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with the Company’s stock option or
other employee benefit plans, then the Company shall deliver to each Holder a
written notice of such determination and, if within fifteen days after the date
of the delivery of such notice, any such Holder shall so request in writing, the
Company shall include in such registration statement all or any part of such
Registrable Securities such Holder requests to be registered; provided , however , that the
Company shall not be required to register any Registrable Securities pursuant to
this Section 6(e) that (i) are eligible for resale pursuant to Rule 144
promulgated by the Commission pursuant to the Securities Act or (ii) that are
the subject of a then effective Registration Statement or (iii) that have been
excluded from a prior Registration Statement due to an express Commission staff
comment or other directive expressly excluding such Registrable Securities from
registration under Rule 415 or similar rule which limits the number of shares
which may be included in a registration statement with respect to the
Holders.

    

    (f)
  Amendments and
Waivers . The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, unless the
same shall be in writing and signed by the Company and the Holders of a majority
of the then outstanding Registrable Securities (including, for this purpose any
Registrable Securities issuable upon exercise or conversion of any Security). If
a Registration Statement does not register all of the Registrable Securities
pursuant to a waiver or amendment done in compliance with the previous sentence,
then the number of Registrable Securities to be registered for each Holder shall
be reduced pro rata among all Holders and each Holder shall have the right to
designate which of its Registrable Securities shall be omitted from such
Registration Statement. Notwithstanding the foregoing, a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of a Holder or some Holders and that does not directly
or indirectly affect the rights of other Holders may be given by such Holder or
Holders of all of the Registrable Securities to which such waiver or consent
relates; provided , however , that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the first sentence of this Section
6(f).

    

    

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    (g)
  Notices
.. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be delivered as set forth in the
Purchase Agreement.

    

    (h)
  Successors and
Assigns . This Agreement shall inure to the benefit of and be binding
upon the successors and permitted assigns of each of the parties and shall inure
to the benefit of each Holder. The Company may not assign (except by merger) its
rights or obligations hereunder without the prior written consent of all of the
Holders of the then outstanding Registrable Securities. Each Holder may assign
their respective rights hereunder in the manner and to the Persons as permitted
under the Purchase Agreement.

    

    (i)
  No Inconsistent
Agreements . Neither the Company nor any of its Subsidiaries has entered,
as of the date hereof, nor shall the Company or any of its Subsidiaries, on or
after the date of this Agreement, enter into any agreement with respect to its
securities, that would have the effect of impairing the rights granted to the
Holders in this Agreement or otherwise conflicts with the provisions hereof.
Except as set forth on Schedule 6(i) ,
neither the Company nor any of its Subsidiaries has previously entered into any
agreement granting any registration rights with respect to any of its securities
to any Person that have not been satisfied in full.

    

    (j)
  Execution and
Counterparts . This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format
data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original
thereof.

    

    (k)
  Governing
Law . All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be determined in accordance with the
provisions of the Purchase Agreement.

    

    (l)
  Cumulative
Remedies . The remedies provided herein are cumulative and not exclusive
of any other remedies provided by law.

    

    (m)
  Severability . If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

    

    

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    (n)
  Headings
.. The headings in this Agreement are for convenience only, do not constitute a
part of the Agreement and shall not be deemed to limit or affect any of the
provisions hereof.

    

    (o)
  Independent
Nature of Holders’ Obligations and Rights . The obligations of each
Holder hereunder are several and not joint with the obligations of any other
Holder hereunder, and no Holder shall be responsible in any way for the
performance of the obligations of any other Holder hereunder. Nothing contained
herein or in any other agreement or document delivered at any closing, and no
action taken by any Holder pursuant hereto or thereto, shall be deemed to
constitute the Holders as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Holders are in any way
acting in concert with respect to such obligations or the transactions
contemplated by this Agreement. Each Holder shall be entitled to protect and
enforce its rights, including without limitation the rights arising out of this
Agreement, and it shall not be necessary for any other Holder to be joined as an
additional party in any proceeding for such purpose.

    

    ********************

     

    

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

    

    
      	
              MARINE
      PARK HOLDINGS, INC.

            
	 
      	 
      
	
              By:

            	
               

            
	 
      	
              Name:
      

            
	 
      	
              Title:
      

            

    

    

    

    [SIGNATURE
PAGE OF HOLDERS FOLLOWS]

     

    

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    [SIGNATURE
PAGE OF HOLDERS TO NEW CARDIO RRA]

     

    Name of
Holder: __________________________

    

    Signature of Authorized Signatory of
Holder : __________________________

    

    Name of
Authorized Signatory: _________________________

    

    Title of
Authorized Signatory: __________________________

     

     

    [SIGNATURE
PAGES CONTINUE]

    

    

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    Annex A

    

    Plan of
Distribution

    

    Each
Selling Stockholder (the “ Selling Stockholders
”) of the common stock and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares
of common stock on the Over the Counter Bulletin Board or any other stock
exchange, market or trading facility on which the shares are traded or in
private transactions. These sales may be at fixed or negotiated prices. A
Selling Stockholder may use any one or more of the following methods when
selling 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;

            

    

     

    
      	 
      	
              ·

            	
              settlement
      of short sales entered into after the effective date of the registration
      statement of which this prospectus is a
part;

            

    

     

    
      	 
      	
              ·

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

            

    

     

    
      	 
      	
              ·

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

            

    

     

    
      	 
      	
              ·

            	
              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 of 1933, as amended (the “ Securities Act ”), if
available, rather than under this prospectus.

     

    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, but,
except as set forth in a supplement to this Prospectus, in the case of an agency
transaction not in excess of a customary brokerage commission in compliance with
FINRA NASD Rule 2440; and in the case of a principal transaction a markup or
markdown in compliance with NASD IM-2440.

     

    

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    In
connection with the sale of the common stock or interests therein, 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 the 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
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Each Selling Stockholder has informed the
Company that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock. In no
event shall any broker-dealer receive fees, commissions and markups which, in
the aggregate, would exceed eight percent (8%).

     

    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.

     

    Because
Selling Stockholders may be deemed to be “underwriters” within the meaning of
the Securities Act, they will be subject to the prospectus delivery requirements
of the Securities Act including Rule 172 thereunder. In addition, any securities
covered by this prospectus which qualify for sale pursuant to Rule 144 under the
Securities Act may be sold under Rule 144 rather than under this prospectus.
There is no underwriter or coordinating broker acting in connection with the
proposed sale of the resale shares by the Selling Stockholders.

     

    We agreed
to keep this prospectus effective until the earlier of (i) the date on which the
shares may be resold by the Selling Stockholders without registration and
without regard to any volume limitations by reason of Rule 144(k) under the
Securities Act or any other rule of similar effect or (ii) all of the shares
have been sold pursuant to this prospectus or Rule 144 under the Securities Act
or any other rule of similar effect. The resale shares will be sold only through
registered or licensed brokers or dealers if required under applicable state
securities laws. In addition, in certain states, the resale shares may not be
sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is
available and is complied with.

     

    

    20

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    Under
applicable rules and regulations under the Exchange Act, any person engaged in
the distribution of the resale shares may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted
period, as defined in Regulation M, prior to the commencement of the
distribution. In addition, the Selling Stockholders will be subject to
applicable provisions of the Exchange Act and the rules and regulations
thereunder, including Regulation M, which may limit the timing of purchases and
sales of shares of the common stock by the Selling Stockholders or any other
person. We will make copies of this prospectus available to the Selling
Stockholders and have informed them of the need to deliver a copy of this
prospectus to each purchaser at or prior to the time of the sale (including by
compliance with Rule 172 under the Securities Act).

     

    

    21

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    Annex
B

     

    MARINE
PARK HOLDINGS, INC.

     

    Selling
Securityholder Notice and Questionnaire

     

    The
undersigned beneficial owner of common stock (the “ Registrable
Securities ”) of Marine Park Holdings, Inc., a Delaware corporation (the
“ Company ”),
understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “ Commission ”) a
registration statement (the “ Registration
Statement ”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “ Securities Act ”), of
the Registrable Securities, in accordance with the terms of the Registration
Rights Agreement (the “ Registration Rights
Agreement ”) to which this document is annexed. A copy of the
Registration Rights Agreement is available from the Company upon request at the
address set forth below. All capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Registration Rights
Agreement.

     

    Certain
legal consequences arise from being named as a selling securityholder in the
Registration Statement and the related prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Registration Statement and the related
prospectus.

     

    NOTICE

     

    The
undersigned beneficial owner (the “ Selling
Securityholder ”) of Registrable Securities hereby elects to include the
Registrable Securities owned by it in the Registration Statement.

     

    

    22

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    
      	
               
      

            	
              1.   Name.

            

    

     

    
      	 
      	
              (a)

            	
              Full
      Legal Name of Selling
Securityholder

            

    

     

    
      	 
      
	 
      

    

    

    
      	 
      	
              (b)

            	
              Full
      Legal Name of Registered Holder (if not the same as (a) above) through
      which Registrable Securities are
held:

            

    

     

    
      	 
      
	 
      

    

    

    
      	 
      	
              (c)

            	
              Full
      Legal Name of Natural Control Person (which means a natural person who
      directly or indirectly alone or with others has power to vote or dispose
      of the securities covered by this
  Questionnaire):

            

    

     

    
      	 
      
	 
      

    

     

    
      	
               
      

            	
              2.
      Address for Notices to Selling
Securityholder:

            

    

     

    
      	 
      
	 
      
	 
      
	
              Telephone:
      _____________________________________________________________________

            
	
              Fax:
      ___________________________________________________________________________

            
	
              Contact
      Person:
      __________________________________________________________________

            

    

    

    
      	
               
      

            	
              3.
      Broker-Dealer Status:

            

    

     

    
      	 
      	
              (a)

            	
              Are
      you a broker-dealer?

            

    

     

    Yes o     No o

     

    
      	 
      	
              (b)

            	
              If
      “yes” to Section 3(a), did you receive your Registrable Securities as
      compensation for investment banking services to the
    Company?

            

    

     

    Yes o     No o

     

    
      	 
      	
              Note:

            	
              If
      “no” to Section 3(b), the Commission’s staff has indicated that you should
      be identified as an underwriter in the Registration
    Statement.

            

    

     

    

    23

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    
      	 
      	
              (c)

            	
              Are
      you an affiliate of a
broker-dealer?

            

    

     

    Yes o     No o

     

    
      	 
      	
              (d)

            	
              If
      you are an affiliate of a broker-dealer, do you certify that you purchased
      the Registrable Securities in the ordinary course of business, and at the
      time of the purchase of the Registrable Securities to be resold, you had
      no agreements or understandings, directly or indirectly, with any person
      to distribute the Registrable
Securities?

            

    

     

    Yes o     No o

     

    
      	 
      	
              Note:

            	
              If
      “no” to Section 3(d), the Commission’s staff has indicated that you should
      be identified as an underwriter in the Registration
    Statement.

            

    

     

    
      	
               
      

            	
              4.
      Beneficial Ownership of Securities of the Company Owned by the Selling
      Securityholder.

            

    

     

    Except
as set forth below in this Item 4, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the securities
issuable pursuant to the Purchase Agreement.

     

    
      	 
      	
              (a)

            	
              Type
      and Amount of other securities beneficially owned by the Selling
      Securityholder:

            

    

     

    
      	 
      
	 
      
	 
      

    

    

    

    24

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    
      	
               
      

            	
              5.
      Relationships with the Company:

            

    

     

    Except
as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any
other material relationship with the Company (or its predecessors or affiliates)
during the past three years.

     

    
      	
               
      

            	
              State
      any exceptions here:

            

    

     

    
      	 
      
	 
      
	 
      

    

    

     

    The
undersigned agrees to promptly notify the Company of any inaccuracies or changes
in the information provided herein that may occur subsequent to the date hereof
at any time while the Registration Statement remains effective.

     

    By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 5 and the inclusion of such
information in the Registration Statement and the related prospectus and any
amendments or supplements thereto . The undersigned understands that such
information will be relied upon by the Company in connection with the
preparation or amendment of the Registration Statement and the related
prospectus.

     

    IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
and Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

     

    
      	
              Date:

            	 
      	 
      	
              Beneficial Owner:

            	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              By:

            	 
      
	 
      	 
      	 
      	 
      	
              Name:

            	 
      
	 
      	 
      	 
      	 
      	
              Title:

            	 
      

    

    

    PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
THE ORIGINAL BY OVERNIGHT MAIL, TO:

     

    

    25

    
       

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

    

    FORM
OF SERIES A

    

    COMMON
STOCK PURCHASE WARRANT

    

    MARINE
PARK HOLDINGS, INC.

    

    
      	
              Warrant
      Shares: _______

            	
              Initial
      Exercise Date: December ___,
      2007       

            

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “ Warrant ”) certifies
that, for value received, _____________ (the “ Holder ”) is
entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof (the “
Initial Exercise
Date ”) and on or prior to the close of business on the fifth year
anniversary of the Initial Exercise Date (the “ Termination Date ”)
but not thereafter, to subscribe for and purchase from Marine Park Holdings,
Inc., a Delaware corporation (the “ Company ”), up to
______ shares (the “ Warrant Shares ”) of
Common Stock. The purchase price of one share of Common Stock under this Warrant
shall be equal to the Exercise Price, as defined in Section 2(b).

     

    Section 1 .  
Definitions .
Capitalized terms used and not otherwise defined herein shall have the meanings
set forth in that certain Securities Purchase Agreement (the “ Purchase Agreement
”), dated December 27, 2007, among the Company and the purchasers signatory
thereto.

    

    

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    Section 2 .  
Exercise
..

     

    a)  
Exercise of
Warrant . Exercise of the purchase rights represented by this Warrant may
be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto
(or such other office or agency of the Company as it may designate by notice in
writing to the registered Holder at the address of the Holder appearing on the
books of the Company); and, within 3 Trading Days of the date said Notice of
Exercise is delivered to the Company, the Company shall have received payment of
the aggregate Exercise Price of the shares thereby purchased by wire transfer or
cashier’s check drawn on a United States bank. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this
Warrant to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case,
the Holder shall surrender this Warrant to the Company for cancellation within 3
Trading Days of the date the final Notice of Exercise is delivered to the
Company. Partial exercises of this Warrant resulting in purchases of a portion
of the total number of Warrant Shares available hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable number of Warrant Shares purchased. The Holder
and the Company shall maintain records showing the number of Warrant Shares
purchased and the date of such purchases. The Company shall deliver any
objection to any Notice of Exercise Form within 1 Business Day of receipt of
such notice. In the event of any dispute or discrepancy, the records of the
Holder shall be controlling and determinative in the absence of manifest error.
The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face
hereof.

     

    b)  
Exercise Price
.. The exercise price per share of the Common Stock under this Warrant shall be
$1.14, subject to adjustment hereunder (the “ Exercise Price
”).

     

    c)  
Cashless
Exercise . If at any time after the earlier of (i) the one year
anniversary of the date of the Purchase Agreement and (ii) the completion of the
then-applicable holding period required by Rule 144, or any successor provision
then in effect, there is no effective Registration Statement registering, or no
current prospectus available for, the resale of the Warrant Shares by the
Holder, then this Warrant may also be exercised at such time by means of a
“cashless exercise” in which the Holder shall be entitled to receive a
certificate for the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

     

    
      	
               
      

            	
              (A)
      = the VWAP on the Trading Day immediately preceding the date of such
      election;

            

    

    

    
      	
               
      

            	
              (B)
      = the Exercise Price of this Warrant, as adjusted;
  and

            

    

    

    

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              (X)
      =  the number of Warrant Shares issuable upon exercise of this
      Warrant in accordance with the terms of this Warrant by means of a cash
      exercise rather than a cashless
exercise.

            

    

    

    Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section
2(c).

    

    d)  
Exercise
Limitations . The Company shall not effect any exercise of this Warrant,
and a Holder shall not have the right to exercise any portion of this Warrant,
pursuant to Section 2 or otherwise, to the extent that after giving effect to
such issuance after exercise as set forth on the applicable Notice of Exercise,
the Holder (together with the Holder’s Affiliates, and any other person or
entity acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the
number of shares of Common Stock beneficially owned by the Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which such determination is being made,
but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its Affiliates and (B) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its
affiliates.  Except as set forth in the preceding sentence, for purposes of
this Section 2(d), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not
representing to the Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2(d) applies, the determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable shall be in the sole discretion of the Holder, and the submission of
a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(d), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (x) the Company’s most recent periodic or annual report, as the
case may be, (y) a more recent public announcement by the Company or (z) any
other notice by the Company or the Company’s Transfer Agent setting forth the
number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally
and in writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder or its
Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported. The “ Beneficial Ownership
Limitation ” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61
days’ prior notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(d). Any such increase or
decrease will not be effective until the 61 st day
after such notice is delivered to the Company. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 2(d) to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

    

    

    3

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    e)  
Mechanics of
Exercise .

     

    i.  
Delivery of
Certificates Upon Exercise . Certificates for shares purchased hereunder
shall be transmitted by the transfer agent of the Company to the Holder by
crediting the account of the Holder’s prime broker with the Depository Trust
Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is a participant in such system and there is an effective Registration
Statement permitting the resale of the Warrant Shares by the Holder, and
otherwise by physical delivery to the address specified by the Holder in the
Notice of Exercise within 3 Trading Days from the delivery to the Company of the
Notice of Exercise Form, surrender of this Warrant (if required) and payment of
the aggregate Exercise Price as set forth above (“Warrant Share Delivery
Date”). This Warrant shall be deemed to have been exercised on the date
the Exercise Price is received by the Company. The Warrant Shares shall be
deemed to have been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised by payment to
the Company of the Exercise Price (or by cashless exercise, if permitted) and
all taxes required to be paid by the Holder, if any, pursuant to Section
2(e)(vi) prior to the issuance of such shares, have been paid. If the Company
fails for any reason to deliver to the Holder certificates evidencing the
Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery
Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of
Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth
Trading Day after such liquidated damages begin to accrue) for each Trading Day
after such Warrant Share Delivery Date until such certificates are
delivered.

    

    

    4

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    ii.
  Delivery of New
Warrants Upon Exercise . If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    iii.
  Rescission
Rights . If the Company fails to cause its transfer agent to transmit to
the Holder a certificate or certificates representing the Warrant Shares
pursuant to Section 2(e)(i) by the Warrant Share Delivery Date, then the Holder
will have the right to rescind such exercise.

     

    iv.
  Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise . In
addition to any other rights available to the Holder, if the Company fails to
cause its transfer agent to transmit to the Holder a certificate or certificates
representing the Warrant Shares pursuant to an exercise on or before the Warrant
Share Delivery Date, and if after such date the Holder is required by its broker
to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “ Buy-In ”), then the
Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of Warrant Shares that the Company was required to deliver to the Holder
in connection with the exercise at issue times (B) the price at which the sell
order giving rise to such purchase obligation was executed, and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to
the Holder the number of shares of Common Stock that would have been issued had
the Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

    

    

    5

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    v.  
No Fractional Shares
or Scrip . No fractional shares or scrip representing fractional shares
shall be issued upon the exercise of this Warrant. As to any fraction of a share
which Holder would otherwise be entitled to purchase upon such exercise, the
Company shall at its election, either pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the Exercise
Price or round up to the next whole share.

     

    vi.
  Charges, Taxes
and Expenses . Issuance of certificates for Warrant Shares shall be made
without charge to the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificate, all of which taxes and
expenses shall be paid by the Company, and such certificates shall be issued in
the name of the Holder or in such name or names as may be directed by the
Holder; provided , however , that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vii.
  Closing of
Books . The Company will not close its stockholder books or records in
any manner which prevents the timely exercise of this Warrant, pursuant to the
terms hereof.

     

    Section 3 .  
Certain
Adjustments .

     

    a)  
Stock Dividends and
Splits . If the Company, at any time while this Warrant is outstanding:
(A) pays a stock dividend or otherwise make a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (B) subdivides outstanding shares of Common Stock into a larger number
of shares, (C) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (D) issues by
reclassification of shares of the Common Stock any shares of capital stock of
the Company, then in each case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

    

    

    6

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    b)  
Subsequent Equity
Sales . If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise dispose of or
issue (or announce any offer, sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock, at an effective price per share less than the
then Exercise Price (such lower price, the “ Base Share Price ”
and such issuances collectively, a “ Dilutive Issuance ”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share which is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then (A) as to Dilutive Issuances that occur on or before
the two year anniversary of the Initial Exercise Date, the Exercise Price shall
be reduced to the Base Share Price and (B) as to Dilutive Issuances that occur
after the two year anniversary of the Initial Exercise Date, the Exercise Price
shall be reduced to a price determined by multiplying the Exercise Price by a
fraction, the numerator of which is the number of shares of Common Stock issued
and outstanding immediately prior to the Dilutive Issuance plus the number of
shares of Common Stock which the offering price for such Dilutive Issuance would
purchase at the then Exercise Price, and the denominator of which shall be the
sum of the number of shares of Common Stock issued and outstanding immediately
prior to the Dilutive Issuance plus the number of shares of Common Stock so
issued or issuable in connection with the Dilutive Issuance. Additionally, the
number of Warrant Shares issuable hereunder shall be increased such that the
aggregate Exercise Price payable hereunder, after taking into account the
decrease in the Exercise Price, shall be equal to the aggregate Exercise Price
prior to such adjustment. Such adjustment shall be made whenever such Common
Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no
adjustments shall be made, paid or issued under this Section 3(b) in respect of
an Exempt Issuance. The Company shall notify the Holder in writing, no later
than the Trading Day following the issuance of any Common Stock or Common Stock
Equivalents subject to this Section 3(b), indicating therein the applicable
issuance price, or applicable reset price, exchange price, conversion price and
other pricing terms (such notice the “ Dilutive Issuance
Notice ”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the
occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance
the Holder is entitled to receive a number of Warrant Shares based upon the Base
Share Price regardless of whether the Holder accurately refers to the Base Share
Price in the Notice of Exercise.

    

    

    7

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    c)  
Subsequent Rights
Offerings . If the Company, at any time while the Warrant is outstanding,
shall issue rights, options or warrants to all holders of Common Stock (and not
to Holders) entitling them to subscribe for or purchase shares of Common Stock
at a price per share less than the VWAP at the record date mentioned below, then
the Exercise Price shall be multiplied by a fraction, of which the denominator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of additional shares of
Common Stock offered for subscription or purchase, and of which the numerator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of shares which the
aggregate offering price of the total number of shares so offered (assuming
receipt by the Company in full of all consideration payable upon exercise of
such rights, options or warrants) would purchase at such VWAP. Such adjustment
shall be made whenever such rights or warrants are issued, and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such rights, options or warrants.

     

    d)  
Pro Rata
Distributions . If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to Holders
of the Warrants) evidences of its indebtedness or assets (including cash and
cash dividends) or rights or warrants to subscribe for or purchase any security
other than the Common Stock (which shall be subject to Section 3(b)), then in
each such case the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date fixed for determination of
stockholders entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date mentioned above,
and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one outstanding share of
the Common Stock as determined by the Board of Directors in good faith. In
either case the adjustments shall be described in a statement provided to the
Holder of the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

    

    

    8

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    e)  
Fundamental
Transaction . If, at any time while this Warrant is outstanding, (A) the
Company effects any merger or consolidation of the Company with or into another
Person, (B) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (C) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (D) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (each “ Fundamental
Transaction ”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “ Alternate
Consideration ”) receivable as a result of such merger, consolidation or
disposition of assets by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event. For purposes
of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or surviving entity in such Fundamental Transaction
shall issue to the Holder a new warrant consistent with the foregoing provisions
and evidencing the Holder’s right to exercise such warrant into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or
surviving entity to comply with the provisions of this Section 3(e) and insuring
that this Warrant (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction.
Notwithstanding anything to the contrary, in the event of a Fundamental
Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction”
as defined in Rule 13e-3 under the Securities Exchange Act of 1934, as amended,
or (3) a Fundamental Transaction involving a person or entity not traded on a
national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global
Market, or the Nasdaq Capital Market, the Company or any successor entity shall
pay at the Holder’s option, exercisable at any time concurrently with or within
30 days after the consummation of the Fundamental Transaction, an amount of cash
equal to the value of this Warrant as determined in accordance with the Black
Scholes Option Pricing Model obtained from the “OV” function on Bloomberg L.P.
using (i) a price per share of Common Stock equal to the VWAP of the Common
Stock for the Trading Day immediately preceding the date of consummation of the
applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding
to the U.S. Treasury rate for a period equal to the remaining term of this
Warrant as of the date of consummation of the applicable Fundamental Transaction
and (iii) an expected volatility equal to the 100 day volatility obtained from
the “HVT” function on Bloomberg L.P. determined as of the Trading Day
immediately following the public announcement of the applicable Fundamental
Transaction.

     

    f)  
Calculations .
All calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

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

    

    

    9

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    h)  
Notice to
Holder .

     

    i.  
Adjustment to Exercise
Price . Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. If the Company enters into a
Variable Rate Transaction (as defined in the Purchase Agreement), despite the
prohibition thereon in the Purchase Agreement, the Company shall be deemed to
have issued Common Stock or Common Stock Equivalents at the lowest possible
conversion or exercise price at which such securities may be converted or
exercised.

     

    ii.
  Notice to Allow
Exercise by Holder . If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. The Holder is entitled to
exercise this Warrant during the period commencing on the date of such notice to
the effective date of the event triggering such notice.

    

    

    10

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    Section 4 .  
Transfer of
Warrant .

     

    a)  
Transferability
.. Subject to compliance with any applicable securities laws and the conditions
set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the
Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company or its
designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its
agent or attorney and funds sufficient to pay any transfer taxes payable upon
the making of such transfer. Upon such surrender and, if required, such payment,
the Company shall execute and deliver a new Warrant or Warrants in the name of
the assignee or assignees and in the denomination or denominations specified in
such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A Warrant, if properly assigned, may be exercised by a
new holder for the purchase of Warrant Shares without having a new Warrant
issued.

     

    b)  
New Warrants .
This Warrant may be divided or combined with other Warrants upon presentation
hereof at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with
Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the original Issue Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto.

     

    c)  
Warrant
Register . The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “ Warrant Register ”),
in the name of the record Holder hereof from time to time. The Company may deem
and treat the registered Holder of this Warrant as the absolute owner hereof for
the purpose of any exercise hereof or any distribution to the Holder, and for
all other purposes, absent actual notice to the contrary.

     

    d)  
Transfer
Restrictions . If , at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer, that the Holder
or transferee of this Warrant, as the case may be, comply with the provisions of
Section 5.7 of the Purchase Agreement.

     

    Section 5 .  
Miscellaneous
..

     

    a)  
No Rights as
Shareholder Until Exercise . This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section 2(e)(i).

    

    

    11

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    b)  
Loss, Theft,
Destruction or Mutilation of Warrant . The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock
certificate.

     

    c)  
Saturdays, Sundays,
Holidays, etc . If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall not be a
Business Day, then such action may be taken or such right may be exercised on
the next succeeding Business Day.

     

    d)  
Authorized
Shares .

     

    The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may be listed.
The Company covenants that all Warrant Shares which may be issued upon the
exercise of the purchase rights represented by this Warrant will, upon exercise
of the purchase rights represented by this Warrant, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
created by the Company in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such
issue).

     

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment. Without limiting the generality of the foregoing, the Company will
(a) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b)
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Shares upon the exercise of this Warrant, and (c) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to enable
the Company to perform its obligations under this Warrant.

    

    

    12

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)  
Jurisdiction .
All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance with the
provisions of the Purchase Agreement.

     

    f)  
Restrictions .
The Holder acknowledges that the Warrant Shares acquired upon the exercise of
this Warrant, if not registered, will have restrictions upon resale imposed by
state and federal securities laws.

     

    g)  
Nonwaiver and
Expenses . No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder shall operate as a waiver of such right or
otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the
fact that all rights hereunder terminate on the Termination Date. If the Company
willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to
Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

     

    h)  
Notices . Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)  
Limitation of
Liability . No provision hereof, in the absence of any affirmative action
by Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, shall give rise to any
liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

     

    j)  
Remedies .
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant. The Company agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law would be
adequate.

    

    

    13

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    k)  
Successors and
Assigns . Subject to applicable securities laws, this Warrant and the
rights and obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this Warrant and shall be
enforceable by the Holder or holder of Warrant Shares.

     

    l)  
Amendment .
This Warrant may be modified or amended or the provisions hereof waived only
with the written consent of the Company and the Holders of at least 67% of the
Warrants then outstanding, except as to the Exercise Price or the Termination
Date, which may not be amended or waived as to this Warrant without the consent
of the Holder of this Warrant.

     

    m)  
Severability .
Wherever possible, each provision of this Warrant shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.

     

    n)  
Headings . The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    ********************

    

    

    14

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

     

    
      	
              MARINE
      PARK HOLDINGS, INC.

            
	 
      	 
      
	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:

            

    

     

    

    15

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    NOTICE
OF EXERCISE

    

    TO:
  MARINE PARK HOLDINGS, INC.

    

    (1)
  The undersigned hereby elects to purchase ________ Warrant Shares of the
Company pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     

    (2)
  Payment shall take the form of (check applicable box):

     

    [ ] in
lawful money of the United States; or

     

    [ ] [if
permitted] the cancellation of such number of Warrant Shares as is necessary, in
accordance with the formula set forth in subsection 2(c), to exercise this
Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in subsection
2(c).

     

    (3)
  Please issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is specified
below:

     

    _______________________________

     

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4) Accredited Investor .
The undersigned is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act of 1933, as amended.

    

    [SIGNATURE
OF HOLDER]

     

    Name of
Investing Entity:
______________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity :
________________________________________________________

    Name of
Authorized Signatory:
__________________________________________________________________________

    Title of
Authorized Signatory:
___________________________________________________________________________

    Date:
______________________________________________________________________________________________

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    

    _______________________________________________________________

    

    Dated:
______________, _______

    

    

    
      	
              Holder’s Signature:

            	 
      	 
      
	 
      	 
      	 
      
	
              Holder’s Address:

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    Signature
Guaranteed: ___________________________________________

    

    NOTE: The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust company. Officers of
corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing
Warrant.

     

    

    

    
      

       

      

    

     

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      EXHIBIT
D

      

      FORM
OF LEGAL OPINION

      

      
 

      

      [List of
Purchasers]

      

      

      

      Ladies
and Gentlemen:

      

      We have acted as counsel to [NAME OF
POST MERGER COMPANY], a [Delaware] corporation (the “Company”), in
connection with the execution and delivery by the Company of the Securities
Purchase Agreement, dated as of December __, 2007 (the “Agreement”), by and
among the Company and the purchasers identified on the signature pages thereto
(the “Purchasers”).  This
opinion is given to you pursuant to Section 2.2(a) of the
Agreement.  (Capitalized terms not otherwise
defined herein are defined as set forth in the Agreement.)

      

      We have participated in the preparation
and negotiation of the Agreement and the Exhibits and Schedules thereto, and the
other documents referred to therein.  We also have examined such
certificates of public officials, corporate documents and records and other
certificates, opinions, agreements and instruments and have made such other
investigations as we have deemed necessary in connection with the opinions
hereinafter set forth.

      

      Based on the foregoing and upon such
investigation as we have deemed necessary, we give you our opinion as
follows:

      

      1. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of [Delaware].  The Company has all requisite power and
authority, and all material governmental licenses, authorizations, consents and
approvals, that are required to own and operate its properties and assets and to
carry on its business as now conducted and as proposed to be conducted (all as
described in the Company’s Merger 8-K). The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the
failure to qualify could have a Material Adverse Effect on the
Company.

       

      2. Each of
the following subsidiaries of the Company (the “Subsidiaries”) is a
corporation, duly organized and in good standing under the laws of its state of
organization, as noted:

       

      3. The
Company has all requisite power and authority (i) to execute, deliver and
perform the Transaction Documents, (ii) to issue, sell and deliver the Preferred
Stock, the Warrants and the Underlying Shares pursuant to the Transaction
Documents and (iii) to carry out and perform its obligations under, and to
consummate the transactions contemplated by, the Transaction
Documents.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4. All
action on the part of the Company, its directors and its stockholders necessary
for the authorization, execution and delivery by the Company of the Transaction
Documents, the authorization, issuance, sale and delivery of the Preferred Stock
and the Warrants pursuant to the Agreement, the issuance and delivery of the
Underlying Shares and the consummation by the Company of the transactions
contemplated by the Transaction Documents has been duly taken.  The
Transaction Documents have been duly and validly executed and delivered by the
Company and constitute the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with their terms, except that (a)
such enforceability may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditors’ rights in general and (b) the
remedies of specific performance and injunctive and other forms of injunctive
relief may be subject to equitable defenses.

       

      5. After
giving effect to the transactions contemplated by the Agreement, and immediately
after the Closing, the authorized capital stock of the Company will consist of:
an aggregate of _________ shares of Common Stock, of which  shares will be
issued and outstanding and _________ shares will be reserved for issuance upon
conversion of issued and outstanding options, warrants and other derivative
securities, __________ shares will be reserved for issuance to employees,
officers and directors under the Company’s [ _ Stock
Incentive Plan], of which __________ shares are subject to currently outstanding
incentive stock option grants and __________ shares are subject to currently
outstanding non-qualified stock option grants, and __________ shares will be
reserved for issuance upon exercise of Warrants, and _____ shares will be
reserved for issuance upon conversion of the shares of Preferred
Stock.  All presently issued and outstanding shares of Common Stock
have been duly authorized and validly issued and are fully paid and
nonassessable and free of any preemptive or similar rights, and have been issued
in compliance with applicable securities laws and regulations.  The
Preferred Stock and Warrants which are being issued on the date hereof pursuant
to the Agreement have been duly authorized and validly issued and are fully paid
and nonassessable and free of preemptive or similar rights, and have been issued
in compliance with applicable securities laws, rules and
regulations.  The Underlying Shares have been duly and validly
authorized and reserved for issuance, and when issued upon the conversion of the
Preferred Stock or the exercise of the Warrants in accordance with the terms
therein, will be validly issued, fully paid and nonassessable, and free of any
preemptive or similar rights.  To our knowledge, except for rights
described in Schedule 3.1(g) of the Agreement, there are no other options,
warrants, conversion privileges or other rights presently outstanding to
purchase or otherwise acquire from the Company any capital stock or other
securities of the Company, or any other agreements to issue any such securities
or rights.  The rights, privileges and preferences of the Common Stock
are as stated in the Company’s Certificate of Incorporation.

       

      6. To our
knowledge, the Company has filed all reports (the “SEC Reports”)
required to be filed by it under Sections 13(a) and 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”).  As of their respective filing dates, the SEC Reports
complied in all material respects as to form with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder.

       

      7. Based in
part upon the representations of the Purchasers contained in the Agreement, the
Preferred Stock, the Warrants and the Underlying Shares may be issued to the
Purchasers without registration under the Securities Act of 1933, as
amended.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      8. The
execution, delivery and performance by the Company of, and the compliance by the
Company with the terms of, the Transaction Documents and the issuance, sale and
delivery of the Preferred Stock, the Warrants and the Underlying Shares pursuant
to the Agreement do not (a) conflict with or result in a violation of any
provision of law, rule or regulation applicable to the Company or its
Subsidiaries or of the certificate of incorporation or by-laws or other similar
organizational documents of the Company or its Subsidiaries, (b) conflict with,
result in a breach of or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or result in or permit the
termination or modification of, any agreement, instrument, order, writ, judgment
or decree known to us to which the Company of its Subsidiaries is a party or is
subject or (c) result in the creation or imposition of any lien, claim or
encumbrance on any of the assets or properties of the Company or its
Subsidiaries.

       

      9. To our
knowledge, except as set forth in the Disclosure Schedules to the Agreement,
there is no claim, action, suit, proceeding, arbitration, investigation or
inquiry, pending or threatened, before any court or governmental or
administrative body or agency, or any private arbitration tribunal, against the
Company or its Subsidiaries, or any of the officers, directors or employees (in
connection with the discharge of their duties as officers, directors and
employees) of the Company or its Subsidiaries, or affecting any of its
properties or assets.

       

      10. In
connection with the valid execution, delivery and performance by the Company of
the Transaction Documents, or the offer, sale, issuance or delivery of the
Preferred Stock, the Warrants and the Underlying Shares or the consummation of
the transactions contemplated thereby, no consent, license, permit, waiver,
approval or authorization of, or designation, declaration, registration or
filing with, any court, governmental or regulatory authority, or self-regulatory
organization, is required.

       

      11. The
Company is not, and after the consummation of the transactions contemplated by
the Transaction Documents shall not be, an Investment Company within the meaning
of the Investment Company Act of 1940, as amended.

       

      

      

      Very truly
yours,

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT E  

     

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

    

    FORM
OF SERIES J

    

    COMMON
STOCK PURCHASE WARRANT

    

    MARINE
PARK HOLDINGS, INC.

     

    
      	
              Warrant
      Shares: _______ 

            	
              Initial
      Exercise Date: December ___, 2007
 

            

    

     
     

    THIS
COMMON STOCK PURCHASE WARRANT (the “ Warrant ”) certifies
that, for value received, _____________ (the “ Holder ”) is
entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof (the “
Initial Exercise
Date ”) and on or prior to the close of business on the first year
anniversary of the Initial Exercise Date (the “ Termination Date ”)
but not thereafter, to subscribe for and purchase from Marine Park Holdings,
Inc., a Delaware corporation (the “ Company ”), up to
______ shares (the “ Warrant Shares ”) of
Common Stock. The purchase price of one share of Common Stock under this Warrant
shall be equal to the Exercise Price, as defined in Section 2(b).

     

    Section 1 .  
Definitions .
Capitalized terms used and not otherwise defined herein shall have the meanings
set forth in that certain Securities Purchase Agreement (the “ Purchase Agreement
”), dated December 27, 2007, among the Company and the purchasers signatory
thereto.

     

    

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    Section 2 .  
Exercise
..

     

    a)  
Exercise of
Warrant . Exercise of the purchase rights represented by this Warrant may
be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto
(or such other office or agency of the Company as it may designate by notice in
writing to the registered Holder at the address of the Holder appearing on the
books of the Company); and, within 3 Trading Days of the date said Notice of
Exercise is delivered to the Company, the Company shall have received payment of
the aggregate Exercise Price of the shares thereby purchased by wire transfer or
cashier’s check drawn on a United States bank. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this
Warrant to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case,
the Holder shall surrender this Warrant to the Company for cancellation within 3
Trading Days of the date the final Notice of Exercise is delivered to the
Company. Partial exercises of this Warrant resulting in purchases of a portion
of the total number of Warrant Shares available hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable number of Warrant Shares purchased. The Holder
and the Company shall maintain records showing the number of Warrant Shares
purchased and the date of such purchases. The Company shall deliver any
objection to any Notice of Exercise Form within 1 Business Day of receipt of
such notice. In the event of any dispute or discrepancy, the records of the
Holder shall be controlling and determinative in the absence of manifest error.
The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face
hereof.

     

    b)  
Exercise Price
.. The exercise price per share of the Common Stock under this Warrant shall be
$1.235, subject to adjustment hereunder (the “ Exercise Price
”).

     

    

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    c)  
Exercise
Limitations . The Company shall not effect any exercise of this Warrant,
and a Holder shall not have the right to exercise any portion of this Warrant,
pursuant to Section 2 or otherwise, to the extent that after giving effect to
such issuance after exercise as set forth on the applicable Notice of Exercise,
the Holder (together with the Holder’s Affiliates, and any other person or
entity acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the
number of shares of Common Stock beneficially owned by the Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which such determination is being made,
but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its Affiliates and (B) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its
affiliates.  Except as set forth in the preceding sentence, for purposes of
this Section 2(c), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not
representing to the Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2(c) applies, the determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable shall be in the sole discretion of the Holder, and the submission of
a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(c), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (x) the Company’s most recent periodic or annual report, as the
case may be, (y) a more recent public announcement by the Company or (z) any
other notice by the Company or the Company’s Transfer Agent setting forth the
number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally
and in writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder or its
Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported. The “ Beneficial Ownership
Limitation ” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61
days’ prior notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(c). Any such increase or
decrease will not be effective until the 61 st day
after such notice is delivered to the Company. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 2(c) to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

     

    

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    d)  
Mechanics of
Exercise .

     

    i.  
Delivery of
Certificates Upon Exercise . Certificates for shares purchased hereunder
shall be transmitted by the transfer agent of the Company to the Holder by
crediting the account of the Holder’s prime broker with the Depository Trust
Company through its Deposit Withdrawal Agent Commission (“ DWAC ”) system if the
Company is a participant in such system and there is an effective Registration
Statement permitting the resale of the Warrant Shares by the Holder, and
otherwise by physical delivery to the address specified by the Holder in the
Notice of Exercise within 3 Trading Days from the delivery to the Company of the
Notice of Exercise Form, surrender of this Warrant (if required) and payment of
the aggregate Exercise Price as set forth above (“ Warrant Share Delivery
Date ”). This Warrant shall be deemed to have been exercised on the date
the Exercise Price is received by the Company. The Warrant Shares shall be
deemed to have been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised by payment to
the Company of the Exercise Price (or by cashless exercise, if permitted) and
all taxes required to be paid by the Holder, if any, pursuant to Section
2(e)(vi) prior to the issuance of such shares, have been paid. If the Company
fails for any reason to deliver to the Holder certificates evidencing the
Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery
Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of
Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth
Trading Day after such liquidated damages begin to accrue) for each Trading Day
after such Warrant Share Delivery Date until such certificates are
delivered.

     

    ii.
  Delivery of New
Warrants Upon Exercise . If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    iii.
  Rescission
Rights . If the Company fails to cause its transfer agent to transmit to
the Holder a certificate or certificates representing the Warrant Shares
pursuant to Section 2(e)(i) by the Warrant Share Delivery Date, then the Holder
will have the right to rescind such exercise.

     

    

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    iv.
  Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise . In
addition to any other rights available to the Holder, if the Company fails to
cause its transfer agent to transmit to the Holder a certificate or certificates
representing the Warrant Shares pursuant to an exercise on or before the Warrant
Share Delivery Date, and if after such date the Holder is required by its broker
to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “ Buy-In ”), then the
Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of Warrant Shares that the Company was required to deliver to the Holder
in connection with the exercise at issue times (B) the price at which the sell
order giving rise to such purchase obligation was executed, and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to
the Holder the number of shares of Common Stock that would have been issued had
the Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

     

    v.  
No Fractional Shares
or Scrip . No fractional shares or scrip representing fractional shares
shall be issued upon the exercise of this Warrant. As to any fraction of a share
which Holder would otherwise be entitled to purchase upon such exercise, the
Company shall at its election, either pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the Exercise
Price or round up to the next whole share.

     

    vi.
  Charges, Taxes
and Expenses . Issuance of certificates for Warrant Shares shall be made
without charge to the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificate, all of which taxes and
expenses shall be paid by the Company, and such certificates shall be issued in
the name of the Holder or in such name or names as may be directed by the
Holder; provided , however , that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    

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    vii.
  Closing of
Books . The Company will not close its stockholder books or records in
any manner which prevents the timely exercise of this Warrant, pursuant to the
terms hereof.

     

    Section 3 .  
Certain
Adjustments .

     

    a)  
Stock Dividends and
Splits . If the Company, at any time while this Warrant is outstanding:
(A) pays a stock dividend or otherwise make a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (B) subdivides outstanding shares of Common Stock into a larger number
of shares, (C) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (D) issues by
reclassification of shares of the Common Stock any shares of capital stock of
the Company, then in each case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b)  
Subsequent Equity
Sales . If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise dispose of or
issue (or announce any offer, sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock, at an effective price per share less than the
then Exercise Price (such lower price, the “ Base Share Price ”
and such issuances collectively, a “ Dilutive Issuance ”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share which is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then the Exercise Price shall be reduced to the Base Share
Price. Additionally, the number of Warrant Shares issuable hereunder shall be
increased such that the aggregate Exercise Price payable hereunder, after taking
into account the decrease in the Exercise Price, shall be equal to the aggregate
Exercise Price prior to such adjustment. Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are issued. Notwithstanding the
foregoing, no adjustments shall be made, paid or issued under this Section 3(b)
in respect of an Exempt Issuance. The Company shall notify the Holder in
writing, no later than the Trading Day following the issuance of any Common
Stock or Common Stock Equivalents subject to this Section 3(b), indicating
therein the applicable issuance price, or applicable reset price, exchange
price, conversion price and other pricing terms (such notice the “ Dilutive Issuance
Notice ”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the
occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance
the Holder is entitled to receive a number of Warrant Shares based upon the Base
Share Price regardless of whether the Holder accurately refers to the Base Share
Price in the Notice of Exercise.

     

    

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    c)  
Subsequent Rights
Offerings . If the Company, at any time while the Warrant is outstanding,
shall issue rights, options or warrants to all holders of Common Stock (and not
to Holders) entitling them to subscribe for or purchase shares of Common Stock
at a price per share less than the VWAP at the record date mentioned below, then
the Exercise Price shall be multiplied by a fraction, of which the denominator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of additional shares of
Common Stock offered for subscription or purchase, and of which the numerator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of shares which the
aggregate offering price of the total number of shares so offered (assuming
receipt by the Company in full of all consideration payable upon exercise of
such rights, options or warrants) would purchase at such VWAP. Such adjustment
shall be made whenever such rights or warrants are issued, and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such rights, options or warrants.

     

    d)  
Pro Rata
Distributions . If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to Holders
of the Warrants) evidences of its indebtedness or assets (including cash and
cash dividends) or rights or warrants to subscribe for or purchase any security
other than the Common Stock (which shall be subject to Section 3(b)), then in
each such case the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date fixed for determination of
stockholders entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date mentioned above,
and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one outstanding share of
the Common Stock as determined by the Board of Directors in good faith. In
either case the adjustments shall be described in a statement provided to the
Holder of the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

     

    

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    e)  
Fundamental
Transaction . If, at any time while this Warrant is outstanding, (A) the
Company effects any merger or consolidation of the Company with or into another
Person, (B) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (C) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (D) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (each “ Fundamental
Transaction ”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “ Alternate
Consideration ”) receivable as a result of such merger, consolidation or
disposition of assets by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event. For purposes
of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or surviving entity in such Fundamental Transaction
shall issue to the Holder a new warrant consistent with the foregoing provisions
and evidencing the Holder’s right to exercise such warrant into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or
surviving entity to comply with the provisions of this Section 3(e) and insuring
that this Warrant (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction.
Notwithstanding anything to the contrary, in the event of a Fundamental
Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction”
as defined in Rule 13e-3 under the Securities Exchange Act of 1934, as amended,
or (3) a Fundamental Transaction involving a person or entity not traded on a
national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global
Market, or the Nasdaq Capital Market, the Company or any successor entity shall
pay at the Holder’s option, exercisable at any time concurrently with or within
30 days after the consummation of the Fundamental Transaction, an amount of cash
equal to the value of this Warrant as determined in accordance with the Black
Scholes Option Pricing Model obtained from the “OV” function on Bloomberg L.P.
using (i) a price per share of Common Stock equal to the VWAP of the Common
Stock for the Trading Day immediately preceding the date of consummation of the
applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding
to the U.S. Treasury rate for a period equal to the remaining term of this
Warrant as of the date of consummation of the applicable Fundamental Transaction
and (iii) an expected volatility equal to the 100 day volatility obtained from
the “HVT” function on Bloomberg L.P. determined as of the Trading Day
immediately following the public announcement of the applicable Fundamental
Transaction.

     

    

    8

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    f)  
Calculations .
All calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

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

     

    h)  
Notice to
Holder .

     

    i.  
Adjustment to Exercise
Price . Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. If the Company enters into a
Variable Rate Transaction (as defined in the Purchase Agreement), despite the
prohibition thereon in the Purchase Agreement, the Company shall be deemed to
have issued Common Stock or Common Stock Equivalents at the lowest possible
conversion or exercise price at which such securities may be converted or
exercised.

     

    ii.
  Notice to Allow
Exercise by Holder . If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. The Holder is entitled to
exercise this Warrant during the period commencing on the date of such notice to
the effective date of the event triggering such notice.

     

    

    9

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    Section 4 .  
Transfer of
Warrant .

     

    a)  
Transferability
.. Subject to compliance with any applicable securities laws and the conditions
set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the
Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company or its
designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its
agent or attorney and funds sufficient to pay any transfer taxes payable upon
the making of such transfer. Upon such surrender and, if required, such payment,
the Company shall execute and deliver a new Warrant or Warrants in the name of
the assignee or assignees and in the denomination or denominations specified in
such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A Warrant, if properly assigned, may be exercised by a
new holder for the purchase of Warrant Shares without having a new Warrant
issued.

     

    b)  
New Warrants .
This Warrant may be divided or combined with other Warrants upon presentation
hereof at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with
Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the original Issue Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto.

     

    c)  
Warrant
Register . The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “ Warrant Register ”),
in the name of the record Holder hereof from time to time. The Company may deem
and treat the registered Holder of this Warrant as the absolute owner hereof for
the purpose of any exercise hereof or any distribution to the Holder, and for
all other purposes, absent actual notice to the contrary.

     

    

    10

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    d)  
Transfer
Restrictions . If , at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer, that the Holder
or transferee of this Warrant, as the case may be, comply with the provisions of
Section 5.7 of the Purchase Agreement.

     

    Section 5 .  
Miscellaneous
..

     

    a)  
No Rights as
Shareholder Until Exercise . This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section 2(e)(i).

     

    b)  
Loss, Theft,
Destruction or Mutilation of Warrant . The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock
certificate.

     

    c)  
Saturdays, Sundays,
Holidays, etc . If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall not be a
Business Day, then such action may be taken or such right may be exercised on
the next succeeding Business Day.

     

    d)  
Authorized
Shares .

     

    The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may be listed.
The Company covenants that all Warrant Shares which may be issued upon the
exercise of the purchase rights represented by this Warrant will, upon exercise
of the purchase rights represented by this Warrant, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
created by the Company in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such
issue).

     

    

    11

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment. Without limiting the generality of the foregoing, the Company will
(a) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b)
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Shares upon the exercise of this Warrant, and (c) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to enable
the Company to perform its obligations under this Warrant.

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)  
Jurisdiction .
All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance with the
provisions of the Purchase Agreement.

     

    f)  
Restrictions .
The Holder acknowledges that the Warrant Shares acquired upon the exercise of
this Warrant, if not registered, will have restrictions upon resale imposed by
state and federal securities laws.

     

    g)  
Nonwaiver and
Expenses . No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder shall operate as a waiver of such right or
otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the
fact that all rights hereunder terminate on the Termination Date. If the Company
willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to
Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

     

    

    12

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    h)  
Notices . Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)  
Limitation of
Liability . No provision hereof, in the absence of any affirmative action
by Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, shall give rise to any
liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

     

    j)  
Remedies .
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant. The Company agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law would be
adequate.

     

    k)  
Successors and
Assigns . Subject to applicable securities laws, this Warrant and the
rights and obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this Warrant and shall be
enforceable by the Holder or holder of Warrant Shares.

     

    l)  
Amendment .
This Warrant may be modified or amended or the provisions hereof waived only
with the written consent of the Company and the Holders of at least 67% of the
Warrants then outstanding, except as to the Exercise Price or the Termination
Date, which may not be amended or waived as to this Warrant without the consent
of the Holder of this Warrant.

     

    m)  
Severability .
Wherever possible, each provision of this Warrant shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.

     

    n)  
Headings . The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

     

    ********************

     

    

    13

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

      

    
      	
               
      MARINE PARK HOLDINGS,
      INC.

            
	 
      
	
              By:

            	 
      
	 
      	
              Name:
       

            
	 
      	
              Title:
       

            

    

     

    

    14

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    NOTICE
OF EXERCISE

    

    TO:
  MARINE PARK HOLDINGS, INC.

    

    (1)
  The undersigned hereby elects to purchase ________ Warrant Shares of the
Company pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     

    (2)
  Payment shall take the form of (check applicable box):

     

    o  in lawful money
of the United States; or

     

    o  [if permitted]
the cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 2(c), to exercise this Warrant with
respect to the maximum number of Warrant Shares purchasable pursuant to the
cashless exercise procedure set forth in subsection 2(c).

     

    (3)
  Please issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is specified
below:

    _______________________________

     

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4) Accredited Investor .
The undersigned is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act of 1933, as amended.

    

    [SIGNATURE
OF HOLDER]

     

    Name of
Investing Entity:
_______________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity :
_________________________________________________________

    Name of
Authorized Signatory:
___________________________________________________________________________

    Title of
Authorized Signatory:
____________________________________________________________________________

    Date:
_______________________________________________________________________________________________

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

     

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

    

    _______________________________________________
whose address is

     

    _______________________________________________________________.

     

    _______________________________________________________________

    

    Dated:
______________, _______

     

    
      	 
      	
              Holder’s Signature:
      ________________________________

            	 
      
	 
      	 
      	 
      
	 
      	
              Holder’s Address:
       ____________________________

            	 
      
	 
      	 
      	 
      
	 
      	
                                             
        ____________________________

            	 
      

    

                                                                               

     

    Signature
Guaranteed: ___________________________________________

    

    NOTE: The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust company. Officers of
corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing
Warrant.

     

    

    

    
      

       

      

    

     

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    EXHIBIT F    
 

     

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

    

    FORM
OF SERIES J-A

    

    COMMON
STOCK PURCHASE WARRANT

    

    MARINE
PARK HOLDINGS, INC.

     

    
      	
              Warrant Shares:
      _______

            	
              Initial
      Exercise Date: December ___, 2007

            

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “ Warrant ”) certifies
that, for value received, _____________ (the “ Holder ”) is
entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof (the “
Initial Exercise
Date ”) and on or prior to the close of business on the fifth year
anniversary of the Initial Exercise Date (the “ Termination Date ”)
but not thereafter, to subscribe for and purchase from Marine Park Holdings,
Inc., a Delaware corporation (the “ Company ”), up to
______ shares (the “ Warrant Shares ”) of
Common Stock. The purchase price of one share of Common Stock under this Warrant
shall be equal to the Exercise Price, as defined in Section 2(b).

     

    Section 1 .  
Definitions .
Capitalized terms used and not otherwise defined herein shall have the meanings
set forth in that certain Securities Purchase Agreement (the “ Purchase Agreement
”), dated December 27, 2007, among the Company and the purchasers signatory
thereto.

    

    

    1

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    Section 2 .  
Exercise
..

     

    a)  
Exercise of
Warrant . Exercise of the purchase rights represented by this Warrant may
be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date, for up to sixty
percent([60%) of the number of shares of Common Stock that have been purchased
by the Holder pursuant to exercise of the Holder’s Series J Warrant, by delivery
to the Company of a duly executed facsimile copy of the Notice of Exercise Form
annexed hereto (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of the
Holder appearing on the books of the Company); and, within 3 Trading Days of the
date said Notice of Exercise is delivered to the Company, the Company shall have
received payment of the aggregate Exercise Price of the shares thereby purchased
by wire transfer or cashier’s check drawn on a United States bank.
Notwithstanding anything herein to the contrary, the Holder shall not be
required to physically surrender this Warrant to the Company until the Holder
has purchased all of the Warrant Shares available hereunder and the Warrant has
been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within 3 Trading Days of the date the final
Notice of Exercise is delivered to the Company. Partial exercises of this
Warrant resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the
applicable number of Warrant Shares purchased. The Holder and the Company shall
maintain records showing the number of Warrant Shares purchased and the date of
such purchases. The Company shall deliver any objection to any Notice of
Exercise Form within 1 Business Day of receipt of such notice. In the event of
any dispute or discrepancy, the records of the Holder shall be controlling and
determinative in the absence of manifest error. The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face
hereof.

     

    b)  
Exercise Price
.. The exercise price per share of the Common Stock under this Warrant shall be
$1.425, subject to adjustment hereunder (the “ Exercise Price
”).

     

    c)  
Cashless
Exercise . If at any time after the earlier of (i) the one year
anniversary of the date of the Purchase Agreement and (ii) the completion of the
then-applicable holding period required by Rule 144, or any successor provision
then in effect, there is no effective Registration Statement registering, or no
current prospectus available for, the resale of the Warrant Shares by the
Holder, then this Warrant may also be exercised at such time by means of a
“cashless exercise” in which the Holder shall be entitled to receive a
certificate for the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

     

    
      	
               
      

            	
              (A)
      = the VWAP on the Trading Day immediately preceding the date of such
      election;

            

    

    

    
      	
               
      

            	
              (B)
      = the Exercise Price of this Warrant, as adjusted;
  and

            

    

    

    

    2

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    
      	 
      	
              (X)
      =

            	
              the
      number of Warrant Shares issuable upon exercise of this Warrant in
      accordance with the terms of this Warrant by means of a cash exercise
      rather than a cashless exercise.

            

    

    

    Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section
2(c).

    

    d)  
Exercise
Limitations . The Company shall not effect any exercise of this Warrant,
and a Holder shall not have the right to exercise any portion of this Warrant,
pursuant to Section 2 or otherwise, to the extent that after giving effect to
such issuance after exercise as set forth on the applicable Notice of Exercise,
the Holder (together with the Holder’s Affiliates, and any other person or
entity acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the
number of shares of Common Stock beneficially owned by the Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which such determination is being made,
but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its Affiliates and (B) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its
affiliates.  Except as set forth in the preceding sentence, for purposes of
this Section 2(d), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not
representing to the Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2(d) applies, the determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable shall be in the sole discretion of the Holder, and the submission of
a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(d), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (x) the Company’s most recent periodic or annual report, as the
case may be, (y) a more recent public announcement by the Company or (z) any
other notice by the Company or the Company’s Transfer Agent setting forth the
number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally
and in writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder or its
Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported. The “ Beneficial Ownership
Limitation ” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61
days’ prior notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(d), provided that the
Beneficial Ownership Limitation in no event exceeds 9.99% of the number of
shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock upon exercise of this Warrant held by the
Holder and the provisions of this Section 2(d) shall continue to apply. Any such
increase or decrease will not be effective until the 61 st day
after such notice is delivered to the Company. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 2(d) to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

    

    

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    e)  
Mechanics of
Exercise .

     

    i.  
Delivery of
Certificates Upon Exercise . Certificates for shares purchased hereunder
shall be transmitted by the transfer agent of the Company to the Holder by
crediting the account of the Holder’s prime broker with the Depository Trust
Company through its Deposit Withdrawal Agent Commission (“ DWAC ”) system if the
Company is a participant in such system and there is an effective Registration
Statement permitting the resale of the Warrant Shares by the Holder, and
otherwise by physical delivery to the address specified by the Holder in the
Notice of Exercise within 3 Trading Days from the delivery to the Company of the
Notice of Exercise Form, surrender of this Warrant (if required) and payment of
the aggregate Exercise Price as set forth above (“ Warrant Share Delivery
Date ”). This Warrant shall be deemed to have been exercised on the date
the Exercise Price is received by the Company. The Warrant Shares shall be
deemed to have been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised by payment to
the Company of the Exercise Price (or by cashless exercise, if permitted) and
all taxes required to be paid by the Holder, if any, pursuant to Section
2(e)(vi) prior to the issuance of such shares, have been paid. If the Company
fails for any reason to deliver to the Holder certificates evidencing the
Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery
Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of
Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth
Trading Day after such liquidated damages begin to accrue) for each Trading Day
after such Warrant Share Delivery Date until such certificates are
delivered.

    

    

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    ii.
  Delivery of New
Warrants Upon Exercise . If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    iii.
  Rescission
Rights . If the Company fails to cause its transfer agent to transmit to
the Holder a certificate or certificates representing the Warrant Shares
pursuant to Section 2(e)(i) by the Warrant Share Delivery Date, then the Holder
will have the right to rescind such exercise.

     

    iv.
  Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise . In
addition to any other rights available to the Holder, if the Company fails to
cause its transfer agent to transmit to the Holder a certificate or certificates
representing the Warrant Shares pursuant to an exercise on or before the Warrant
Share Delivery Date, and if after such date the Holder is required by its broker
to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “ Buy-In ”), then the
Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of Warrant Shares that the Company was required to deliver to the Holder
in connection with the exercise at issue times (B) the price at which the sell
order giving rise to such purchase obligation was executed, and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to
the Holder the number of shares of Common Stock that would have been issued had
the Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

    

    

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    v.  
No Fractional Shares
or Scrip . No fractional shares or scrip representing fractional shares
shall be issued upon the exercise of this Warrant. As to any fraction of a share
which Holder would otherwise be entitled to purchase upon such exercise, the
Company shall at its election, either pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the Exercise
Price or round up to the next whole share.

     

    vi.
  Charges, Taxes
and Expenses . Issuance of certificates for Warrant Shares shall be made
without charge to the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificate, all of which taxes and
expenses shall be paid by the Company, and such certificates shall be issued in
the name of the Holder or in such name or names as may be directed by the
Holder; provided , however , that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vii.
  Closing of
Books . The Company will not close its stockholder books or records in
any manner which prevents the timely exercise of this Warrant, pursuant to the
terms hereof.

     

    Section 3 .  
Certain
Adjustments .

     

    a)  
Stock Dividends and
Splits . If the Company, at any time while this Warrant is outstanding:
(A) pays a stock dividend or otherwise make a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (B) subdivides outstanding shares of Common Stock into a larger number
of shares, (C) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (D) issues by
reclassification of shares of the Common Stock any shares of capital stock of
the Company, then in each case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

    

    

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    b)  
Subsequent Equity
Sales . If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise dispose of or
issue (or announce any offer, sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock, at an effective price per share less than the
then Exercise Price (such lower price, the “ Base Share Price ”
and such issuances collectively, a “ Dilutive Issuance ”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share which is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then the Exercise Price shall be reduced to such Base Share
Price. Additionally, the number of Warrant Shares issuable hereunder shall be
increased such that the aggregate Exercise Price payable hereunder, after taking
into account the decrease in the Exercise Price, shall be equal to the aggregate
Exercise Price prior to such adjustment. Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are issued. Notwithstanding the
foregoing, no adjustments shall be made, paid or issued under this Section 3(b)
in respect of an Exempt Issuance. The Company shall notify the Holder in
writing, no later than the Trading Day following the issuance of any Common
Stock or Common Stock Equivalents subject to this Section 3(b), indicating
therein the applicable issuance price, or applicable reset price, exchange
price, conversion price and other pricing terms (such notice the “ Dilutive Issuance
Notice ”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the
occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance
the Holder is entitled to receive a number of Warrant Shares based upon the Base
Share Price regardless of whether the Holder accurately refers to the Base Share
Price in the Notice of Exercise.

     

    c)  
Subsequent Rights
Offerings . If the Company, at any time while the Warrant is outstanding,
shall issue rights, options or warrants to all holders of Common Stock (and not
to Holders) entitling them to subscribe for or purchase shares of Common Stock
at a price per share less than the VWAP at the record date mentioned below, then
the Exercise Price shall be multiplied by a fraction, of which the denominator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of additional shares of
Common Stock offered for subscription or purchase, and of which the numerator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of shares which the
aggregate offering price of the total number of shares so offered (assuming
receipt by the Company in full of all consideration payable upon exercise of
such rights, options or warrants) would purchase at such VWAP. Such adjustment
shall be made whenever such rights or warrants are issued, and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such rights, options or warrants.

     

    

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    d)  
Pro Rata
Distributions . If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to Holders
of the Warrants) evidences of its indebtedness or assets (including cash and
cash dividends) or rights or warrants to subscribe for or purchase any security
other than the Common Stock (which shall be subject to Section 3(b)), then in
each such case the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date fixed for determination of
stockholders entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date mentioned above,
and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one outstanding share of
the Common Stock as determined by the Board of Directors in good faith. In
either case the adjustments shall be described in a statement provided to the
Holder of the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

     

    e)  
Fundamental
Transaction . If, at any time while this Warrant is outstanding, (A) the
Company effects any merger or consolidation of the Company with or into another
Person, (B) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (C) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (D) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (each “ Fundamental
Transaction ”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “ Alternate
Consideration ”) receivable as a result of such merger, consolidation or
disposition of assets by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event. For purposes
of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or surviving entity in such Fundamental Transaction
shall issue to the Holder a new warrant consistent with the foregoing provisions
and evidencing the Holder’s right to exercise such warrant into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or
surviving entity to comply with the provisions of this Section 3(e) and insuring
that this Warrant (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction.
Notwithstanding anything to the contrary, in the event of a Fundamental
Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction”
as defined in Rule 13e-3 under the Securities Exchange Act of 1934, as amended,
or (3) a Fundamental Transaction involving a person or entity not traded on a
national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global
Market, or the Nasdaq Capital Market, the Company or any successor entity shall
pay at the Holder’s option, exercisable at any time concurrently with or within
30 days after the consummation of the Fundamental Transaction, an amount of cash
equal to the value of this Warrant as determined in accordance with the Black
Scholes Option Pricing Model obtained from the “OV” function on Bloomberg L.P.
using (i) a price per share of Common Stock equal to the VWAP of the Common
Stock for the Trading Day immediately preceding the date of consummation of the
applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding
to the U.S. Treasury rate for a period equal to the remaining term of this
Warrant as of the date of consummation of the applicable Fundamental Transaction
and (iii) an expected volatility equal to the 100 day volatility obtained from
the “HVT” function on Bloomberg L.P. determined as of the Trading Day
immediately following the public announcement of the applicable Fundamental
Transaction.

     

    

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    f)  
Calculations .
All calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

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

     

    h)  
Notice to
Holder .

     

    i.  
Adjustment to Exercise
Price . Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. If the Company enters into a
Variable Rate Transaction (as defined in the Purchase Agreement), despite the
prohibition thereon in the Purchase Agreement, the Company shall be deemed to
have issued Common Stock or Common Stock Equivalents at the lowest possible
conversion or exercise price at which such securities may be converted or
exercised.

     

    

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    ii.
  Notice to Allow
Exercise by Holder . If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. The Holder is entitled to
exercise this Warrant during the period commencing on the date of such notice to
the effective date of the event triggering such notice.

     

    Section 4 .  
Transfer of
Warrant .

     

    a)  
Transferability
.. Subject to compliance with any applicable securities laws and the conditions
set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the
Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company or its
designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its
agent or attorney and funds sufficient to pay any transfer taxes payable upon
the making of such transfer. Upon such surrender and, if required, such payment,
the Company shall execute and deliver a new Warrant or Warrants in the name of
the assignee or assignees and in the denomination or denominations specified in
such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A Warrant, if properly assigned, may be exercised by a
new holder for the purchase of Warrant Shares without having a new Warrant
issued.

     

    

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    b)  
New Warrants .
This Warrant may be divided or combined with other Warrants upon presentation
hereof at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with
Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the original Issue Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto.

     

    c)  
Warrant
Register . The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “ Warrant Register ”),
in the name of the record Holder hereof from time to time. The Company may deem
and treat the registered Holder of this Warrant as the absolute owner hereof for
the purpose of any exercise hereof or any distribution to the Holder, and for
all other purposes, absent actual notice to the contrary.

     

    d)  
Transfer
Restrictions . If , at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer, that the Holder
or transferee of this Warrant, as the case may be, comply with the provisions of
Section 5.7 of the Purchase Agreement.

     

    Section 5 .  
Miscellaneous
..

     

    a)  
No Rights as
Shareholder Until Exercise . This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section 2(e)(i).

     

    b)  
Loss, Theft,
Destruction or Mutilation of Warrant . The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock
certificate.

     

    

    

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    c)  
Saturdays, Sundays,
Holidays, etc . If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall not be a
Business Day, then such action may be taken or such right may be exercised on
the next succeeding Business Day.

     

    d)  
Authorized
Shares .

     

    The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may be listed.
The Company covenants that all Warrant Shares which may be issued upon the
exercise of the purchase rights represented by this Warrant will, upon exercise
of the purchase rights represented by this Warrant, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
created by the Company in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such
issue).

     

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment. Without limiting the generality of the foregoing, the Company will
(a) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b)
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Shares upon the exercise of this Warrant, and (c) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to enable
the Company to perform its obligations under this Warrant.

     

    

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    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)  
Jurisdiction .
All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance with the
provisions of the Purchase Agreement.

     

    f)  
Restrictions .
The Holder acknowledges that the Warrant Shares acquired upon the exercise of
this Warrant, if not registered, will have restrictions upon resale imposed by
state and federal securities laws.

     

    g)  
Nonwaiver and
Expenses . No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder shall operate as a waiver of such right or
otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the
fact that all rights hereunder terminate on the Termination Date. If the Company
willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to
Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

     

    h)  
Notices . Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)  
Limitation of
Liability . No provision hereof, in the absence of any affirmative action
by Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, shall give rise to any
liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

     

    j)  
Remedies .
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant. The Company agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law would be
adequate.

     

    k)  
Successors and
Assigns . Subject to applicable securities laws, this Warrant and the
rights and obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this Warrant and shall be
enforceable by the Holder or holder of Warrant Shares.

     

    

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    l)  
Amendment .
This Warrant may be modified or amended or the provisions hereof waived only
with the written consent of the Company and the Holders of at least 67% of the
Warrants then outstanding, except as to the Exercise Price or the Termination
Date, which may not be amended or waived as to this Warrant without the consent
of the Holder of this Warrant.

     

    m)  
Severability .
Wherever possible, each provision of this Warrant shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.

     

    n)  
Headings . The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    ********************

    

    

    14

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

      

    
      	
               
      MARINE PARK HOLDINGS,
      INC.

            
	 
      	 
      
	
               By:

            	 
      
	 
      	
              Name:

              Title:

            

    

    

    

    15

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    NOTICE
OF EXERCISE

    

    TO:
  MARINE PARK HOLDINGS, INC.

    

    (1)
  The undersigned hereby elects to purchase ________ Warrant Shares of the
Company pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     

    (2)
  Payment shall take the form of (check applicable box):

     

    o in lawful money of the
United States; or

     

    o [if permitted] the
cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 2(c), to exercise this Warrant with
respect to the maximum number of Warrant Shares purchasable pursuant to the
cashless exercise procedure set forth in subsection 2(c).

     

    (3)
  Please issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is specified
below:

     

    _______________________________

     

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4) Accredited Investor .
The undersigned is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act of 1933, as amended.

    

    [SIGNATURE
OF HOLDER]

     

    Name of
Investing Entity:
________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity :
_________________________________________________

    Name of
Authorized Signatory:
___________________________________________________________________

    Title of
Authorized Signatory:
____________________________________________________________________

    Date:
________________________________________________________________________________________

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      

    

     

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

     

    

    _______________________________________________________________

    

     

       
                 
                 
             Dated: ______________,
_______

    

    

    Holder’s
Signature:     _____________________________

    

    Holder’s
Address:     
_____________________________

                                                                                         

                                                                                   _____________________________

    

     

    Signature
Guaranteed:   ___________________________________________

    

    NOTE: The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust company. Officers of
corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing
Warrant.

    

    

    

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
G

    

    FORM
OF LOCK-UP AGREEMENT

    

    December
_, 2007

    

    Each
Purchaser referenced below:

    

    
      	
               
      

            	
              Re:

            	
              Securities
      Purchase Agreement, dated as of December  __, 2007 (the
      “Purchase Agreement”),
      between Marine Park Holdings, Inc., a ________ corporation (the “Company”) and
      the purchasers signatory thereto (each, a “Purchaser” and,
      collectively, the “Purchasers”)

            

    

     

    Ladies
and Gentlemen:

     

    Defined
terms not otherwise defined in this letter agreement (the “Letter Agreement”)
shall have the meanings set forth in the Purchase Agreement.  Pursuant
to Section 2.2 of the Purchase Agreement and in satisfaction of a condition of
the Company’s obligations under the Purchase Agreement, the undersigned
irrevocably agrees with the Company that, from the date hereof until the 36
month anniversary of the Effective Date (such period, the “Restriction Period”),
the undersigned will not offer, sell,  contract to sell, hypothecate,
pledge or otherwise dispose of (or enter into any transaction which is designed
to, or might reasonably be expected to, result in the disposition (whether by
actual disposition or effective economic disposition due to cash settlement or
otherwise) by the undersigned or any Affiliate of the undersigned or any person
in privity with the undersigned or any Affiliate of the undersigned), directly
or indirectly, including the filing (or participation in the filing) of a
registration statement with the Commission in respect of, or establish or
increase a put equivalent position or liquidate or decrease a call equivalent
position within the meaning of Section 16 of the Exchange Act with respect to,
any shares of Common Stock or Common Stock Equivalents beneficially owned, held
or hereafter acquired by the undersigned (the “Securities”).  Beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange
Act.  In order to enforce this covenant, the Company shall impose
irrevocable stop-transfer instructions preventing the Transfer Agent from
effecting any actions in violation of this Letter Agreement.

    

    Notwithstanding
the foregoing, the undersigned shall be permitted to make Transfers of the
shares of the Company’s Common Stock held by the undersigned during the
Restriction Period expressly in accordance with the following (collectively, the
“Sale
Allowances”):

     

    1.          During
the 24 month period immediately following the Effective Date, the undersigned
shall be permitted to make Transfers of the shares of the Company’s Common Stock
held by the undersigned, on a monthly basis in an amount equal to up to
_________1 shares of Common Stock, subject to adjustment
for reverse and forward stock splits, stock dividends, stock combinations and
other similar transactions of the Common Stock that occur after the date of this
Letter Agreement, per month (the undersigned acknowledges and agrees that the
foregoing limits on Transfers are non-cumulative and may not be carried over
from month to month).

     

    The
undersigned acknowledges that the execution, delivery and performance of this
Letter Agreement is a material inducement to each Purchaser to complete the
transactions contemplated by the Purchase Agreement and that each Purchaser
(which shall be a third party beneficiary of this Letter Agreement) and the
Company shall be entitled to specific performance of the undersigned’s
obligations hereunder.  The undersigned hereby represents that the
undersigned has the power and authority to execute, deliver and perform this
Letter Agreement, that the undersigned has received adequate consideration
therefor and that the undersigned will indirectly benefit from the closing of
the transactions contemplated by the Purchase Agreement.

     

    This
Letter Agreement may not be amended or otherwise modified in any respect without
the written consent of each of the Company, each Purchaser and the
undersigned.  This Letter Agreement shall be construed and enforced in
accordance with the laws of the State of New York without regard to the
principles of conflict of laws. The undersigned hereby irrevocably submits to
the exclusive jurisdiction of the United States District Court sitting in the
Southern District of New York and the courts of the State of New York located in
Manhattan, for the purposes of any suit, action or proceeding arising out of or
relating to this Letter Agreement, and hereby waives, and agrees not to assert
in any such suit, action or proceeding, any claim that (i) it is not personally
subject to the jurisdiction of such court, (ii) the suit, action or proceeding
is brought in an inconvenient forum, or (iii) the venue of the suit, action or
proceeding is improper. The undersigned hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or proceeding by receiving a copy thereof sent to the Company at the address in
effect for notices to it under the Purchase Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof.  The undersigned hereby waives any right to a trial by
jury.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law.  The
undersigned agrees and understands that this Letter Agreement does not intend to
create any relationship between the undersigned and each Purchaser and that each
Purchaser is not entitled to cast any votes on the matters herein contemplated
and that no issuance or sale of the Securities is created or intended by virtue
of this Letter Agreement.

     

    

      

    

      
      
        	
                 
      

              	
                1
      Insert amount that is equal to 1/12th
      of the shares of Common Stock beneficially owned by the
      undersigned.

              

      

       

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    By its
signature below, the Transfer Agent hereby acknowledges and agrees that,
reflecting this Letter Agreement, it has placed an irrevocable stop transfer
instruction on all Securities beneficially owned by the undersigned until the
end of the Restriction Period.  This Letter Agreement shall be binding
on successors and assigns of the undersigned with respect to the Securities and
any such successor or assign shall enter into a similar agreement for the
benefit of the Purchasers.

     

    

    

    ***
SIGNATURE PAGE FOLLOWS***

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    This
Letter Agreement may be executed in two or more counterparts, all of which when
taken together may be considered one and the same agreement.

    

    

    _________________________

    Signature

     

    __________________________

    Print
Name

     

    __________________________

    Position
in Company

    

    Address
for Notice:

    

    

    

    

    

    

    Number of
shares of Common Stock

    

    _____________________________________________________________________________

    Number of
shares of Common Stock underlying subject to warrants, options, debentures or
other convertible securities

     

    By
signing below, the Company agrees to enforce the restrictions on transfer set
forth in this Letter Agreement.

    

    Marine
Park Holdings, Inc.

    

    By:
_________________________________

    Name:

    Title:

    

    

    Acknowledged
and agreed to

    as of the
date set forth above:

    

    [insert name of Transfer
Agent]                                                                

    

    By:                                                                

    Name:

    Title:newcardio_ex1008.htm

    Exhibit 10.8

     

    
      

       

      SHARE EXCHANGE
AGREEMENT

      

      THIS AGREEMENT is made as of
the 27th day of December, 2007

       

      AMONG:

      

      MARINE PARK HOLDINGS, INC., a
corporation formed pursuant to the laws of the State of Delaware and having an
office for business at 850 Third Avenue, Suite 1801, New York, New York 10022
(“Marine Park”)

      

      
        	
                 
      

              	
                AND:

              

      

      

      NEWCARDIO, INC. , a company
formed pursuant to the laws of the State of Delaware and having an office for
business located at 2033 Gateway Plaza, Suite 500, San Jose, California 95110
("NewCardio")

      

      AND:

      

      the
holders of NewCardio equity, each of whom are set forth on the signature page of
this Agreement (the “NewCardio Shareholders”)

      

      
         WHEREAS:

      

      

      A.   The NewCardio
Shareholders own such number of (i) shares of common stock, $0.0001 par value
(“NewCardio Common Shares”), (ii) shares of preferred stock, $0.0001 par value
(“NewCardio Preferred Shares”), (iii) debt obligations convertible into shares
of common stock, $0.0001 par value (“NewCardio Convertible Debt”), and (iv)
options and/or warrants convertible into shares of common stock, $0.0001 par
value (“NewCardio Convertible Securities”) as set forth on Exhibit “A” annexed
hereto, collectively being 100% of the presently issued and outstanding
NewCardio equity on a fully converted basis;

      

      B.   Marine Park is a
reporting company whose common stock is quoted on the Over-the-Counter Bulletin
Board; and

      

      C.   The respective
Boards of Directors of Marine Park and NewCardio deem it advisable and in the
best interests of Marine Park and NewCardio that NewCardio become a wholly-owned
subsidiary of Marine Park (the “Acquisition”) pursuant to this
Agreement.

      

      NOW THEREFORE THIS AGREEMENT
WITNESSETH THAT in consideration of the premises and the mutual
covenants, agreements, representations and warranties contained herein, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:

      

      ARTICLE
1

      DEFINITIONS
AND INTERPRETATION

      

      Definitions

      

      1.1
  In this Agreement the following terms will have the following
meanings:

      

      
        	 
      	
                (a)

              	
                “
      Acquisition ”
      means the Acquisition, at the Closing, of NewCardio by Marine Park
      pursuant to this Agreement;

              

      

      

      

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

       

      
        	 
      	
                (b)

              	
                “
      Acquisition Shares
      ” means the Marine Park Common Shares, set forth on Exhibit “A,” to be
      issued to the NewCardio Shareholders at Closing pursuant to the terms of
      the Acquisition;

              

      

      

      
        	 
      	
                (c)

              	
                “
      Agreement ” means
      this share exchange agreement among Marine Park, NewCardio, and the
      NewCardio Shareholders;

              

      

      

      
        	 
      	
                (d)

              	
                “
      Closing ” means
      the completion, on the Closing Date, of the transactions contemplated
      hereby in accordance with Article 9
hereof;

              

      

      

      
        	 
      	
                (e)

              	
                “
      Closing Date ”
      means the day on which all conditions precedent to the completion of the
      transaction as contemplated hereby have been satisfied or waived, but in
      any event no later than January 5,
2008;

              

      

      

      
        	 
      	
                (f)

              	
                “
      Marine Park Accounts
      Payable and Liabilities ” means all accounts payable and
      liabilities of Marine Park, on a consolidated basis, due and owing or
      otherwise constituting a binding obligation of Marine Park and its
      subsidiaries (other than a Marine Park Material Contract) as of September
      30, 2007 as set forth is Schedule “A”
hereto;

              

      

      

      
        	 
      	
                (g)

              	
                “
      Marine Park Accounts
      Receivable ” means all accounts receivable and other debts owing to
      Marine Park, on a consolidated basis, as of September 30, 2007 as set
      forth in Schedule “B” hereto;

              

      

      

      
        	 
      	
                (h)

              	
                “
      Marine Park Assets
      ” means the undertaking and all the property and assets of the Marine Park
      Business of every kind and description wheresoever situated including,
      without limitation, Marine Park Equipment, Marine Park Inventory, Marine
      Park Material Contracts, Marine Park Accounts Receivable, Marine Park
      Cash, Marine Park Intangible Assets and Marine Park Goodwill, and all
      credit cards, charge cards and banking cards issued to Marine
      Park;

              

      

      

      
        	 
      	
                (i)

              	
                “
      Marine Park Bank
      Accounts ” means all of the bank accounts, lock boxes and safety
      deposit boxes of Marine Park and its subsidiaries or relating to the
      Marine Park Business as set forth in Schedule “C”
  hereto;

              

      

      

      
        	 
      	
                (j)

              	
                “
      Marine Park
      Business ” means all aspects of any business conducted by Marine
      Park and its subsidiaries;

              

      

      

      
        	 
      	
                (k)

              	
                “
      Marine Park Cash ”
      means all cash on hand or on deposit to the credit of Marine Park and its
      subsidiaries on the Closing Date;

              

      

      

      
        	 
      	
                (l)

              	
                “
      Marine Park Common
      Shares ” means the shares of common stock in the capital of Marine
      Park;

              

      

      

      
        	 
      	
                (m)

              	
                “
      Marine Park Debt to
      Related Parties ” means the debts owed by Marine Park to any
      affiliate, director or officer of Marine Park as described in Schedule “D”
      hereto;

              

      

      

      
        	 
      	
                (n)

              	
                “
      Marine Park
      Equipment ” means all machinery, equipment, furniture, and
      furnishings used in the Marine Park Business, including, without
      limitation, the items more particularly described in Schedule “E”
      hereto;

              

      

      

      

      - 2
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      

      
        	 
      	
                (o)

              	
                “
      Marine Park Financial
      Statements ” means, collectively, the audited consolidated
      financial statements of Marine Park for the fiscal year ended December 31,
      2006, together with the unqualified auditors' report thereon, and the
      unaudited consolidated financial statements of Marine Park for the three
      month period ended September 30, 2007, true copies of which are attached
      as Schedule “F” hereto;

              

      

      

      
        	 
      	
                (p)

              	
                “
      Marine Park
      Goodwill” means the goodwill of the Marine Park Business including
      the right to all corporate, operating and trade names associated with the
      Marine Park Business, or any variations of such names as part of or in
      connection with the Marine Park Business, all books and records and other
      information relating to the Marine Park Business, all necessary licenses
      and authorizations and any other rights used in connection with the Marine
      Park Business;

              

      

      

      
        	 
      	
                (q)

              	
                “
      Marine Park Insurance
      Policies ” means the public liability insurance and insurance
      against loss or damage to the Marine Park Assets and the Marine Park
      Business as described in Schedule “G”
hereto;

              

      

      

      
        	 
      	
                (r)

              	
                “
      Marine Park Intangible
      Assets " means all of the intangible assets of Marine Park and its
      subsidiaries, including, without limitation, Marine Park Goodwill, all
      trademarks, logos, copyrights, designs, and other intellectual and
      industrial property of Marine Park and its
  subsidiaries;

              

      

      

      
        	 
      	
                (s)

              	
                “
      Marine Park
      Inventory ” means all inventory and supplies of the Marine Park
      Business as of September 30, 2007, as set forth in Schedule “H” hereto;
      and

              

      

      

      
        	 
      	
                (t)

              	
                “
      Marine Park Material
      Contracts ” means the burden and benefit of and the right, title
      and interest of Marine Park and its subsidiaries in, to and under all
      trade and non-trade contracts, engagements or commitments, whether written
      or oral, to which Marine Park or its subsidiaries are entitled whereunder
      Marine Park or its subsidiaries are obligated to pay or entitled to
      receive the sum of $10,000 or more including, without limitation, any
      pension plans, profit sharing plans, bonus plans, loan agreements,
      security agreements, indemnities and guarantees, any agreements with
      employees, lessees, licensees, managers, accountants, suppliers, agents,
      distributors, officers, directors, attorneys or others which cannot be
      terminated without liability on not more than one month's notice, and
      those contracts listed in Schedule “I”
hereto.

              

      

      

      
        	 
      	
                (u)

              	
                “
      NewCardio Accounts
      Payable and Liabilities ” means all accounts payable and
      liabilities of NewCardio, due and owing or otherwise constituting a
      binding obligation of NewCardio (other than a NewCardio Material Contract)
      as of September 30, 2007 as set forth in Schedule “J”
    hereto;

              

      

      

      
        	 
      	
                (v)

              	
                “
      NewCardio Accounts
      Receivable ” means all accounts receivable and other debts owing to
      NewCardio, as of September 30, 2007 as set forth in Schedule “K”
      hereto;

              

      

      

      
        	 
      	
                (w)

              	
                “
      NewCardio Assets “
      means the undertaking and all the property and assets of the NewCardio
      Business of every kind and description wheresoever situated including,
      without limitation, NewCardio Equipment, NewCardio Inventory, NewCardio
      Material Contracts, NewCardio Accounts Receivable, NewCardio Cash,
      NewCardio Intangible Assets and NewCardio Goodwill, and all credit cards,
      charge cards and banking cards issued to
  NewCardio;

              

      

      

      
        	 
      	
                (x)

              	
                “
      NewCardio Bank
      Accounts ” means all of the bank accounts, lock boxes and safety
      deposit boxes of NewCardio or relating to the NewCardio Business as set
      forth in Schedule “L” hereto;

              

      

      

      

      - 3
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      

      
        	 
      	
                (y)

              	
                “
      NewCardio Bridge
      Warrants ” shall mean any warrant to purchase or otherwise acquire
      shares of capital stock of NewCardio issued in connection with a NewCardio
      financing transaction upon NewCardio’s consummation of such financing
      event;

              

      

      

      
        	 
      	
                (z)

              	
                “
      NewCardio Business
      ” means all aspects of the business conducted by
  NewCardio;

              

      

      

      
        	 
      	
                (aa)

              	
                “
      NewCardio Cash ”
      means all cash on hand or on deposit to the credit of NewCardio on the
      Closing Date;

              

      

      

      
        	 
      	
                (bb)

              	
                “
      NewCardio Common
      Warrants ” shall mean warrants to purchase or otherwise acquire
      NewCardio Shares, which were issued in connection with NewCardio’s Series
      A-2 Preferred Stock financing;

              

      

      

      
        	 
      	
                (cc)

              	
                “
      NewCardio Debt to Related
      Parties ” means the debts owed by NewCardio and its subsidiaries to
      the NewCardio Shareholders or to any family member thereof, or to any
      affiliate, director or officer of NewCardio or the NewCardio Shareholders
      as described in Schedule “M”;

              

      

      

      
        	 
      	
                (dd)

              	
                “
      NewCardio
      Equipment ” means all machinery, equipment, furniture, and
      furnishings used in the NewCardio Business, including, without limitation,
      the items more particularly described in Schedule “N”
    hereto;

              

      

      

      
        	 
      	
                (ee)

              	
                “
      NewCardio Financial
      Statements ” means collectively, the audited financial statements
      of NewCardio for the two fiscal years ended December 31, 2006, together
      with the unqualified auditors' report thereon, and the unaudited
      consolidated financial statements of NewCardio for the nine month period
      ended September 30, 2007, true copies of which are attached as Schedule
      “O” hereto;

              

      

      

      
        	 
      	
                (ff)

              	
                “
      NewCardio Goodwill
      ” means the goodwill of the NewCardio Business together with the exclusive
      right of Marine Park to represent itself as carrying on the NewCardio
      Business in succession of NewCardio subject to the terms hereof, and the
      right to use any words indicating that the NewCardio Business is so
      carried on including the right to use the name "NewCardio” or “NewCardio
      International" or any variation thereof as part of the name of or in
      connection with the NewCardio Business or any part thereof carried on or
      to be carried on by NewCardio, the right to all corporate, operating and
      trade names associated with the NewCardio Business, or any variations of
      such names as part of or in connection with the NewCardio Business, all
      telephone listings and telephone advertising contracts, all lists of
      customers, books and records and other information relating to the
      NewCardio Business, all necessary licenses and authorizations and any
      other rights used in connection with the NewCardio
    Business;

              

      

      

      
        	 
      	
                (gg)

              	
                “
      NewCardio Insurance
      Policies ” means the public liability insurance and insurance
      against loss or damage to NewCardio Assets and the NewCardio Business as
      described in Schedule “P” hereto;

              

      

      

      
        	 
      	
                (hh)

              	
                “
      NewCardio Intangible
      Assets ” means all of the intangible assets of NewCardio,
      including, without limitation, NewCardio Goodwill, all trademarks, logos,
      copyrights, designs, and other intellectual and industrial property of
      NewCardio and its subsidiaries;

              

      

      

      

      - 4
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      
        	
                 
      

              	
                 

              

      

      
        	 
      	
                (ii)

              	
                “
      NewCardio
      Inventory ” means all inventory and supplies of the NewCardio
      Business as of September 30, 2007 as set forth in Schedule “Q”
      hereto;

              

      

      

      
        	 
      	
                (jj)

              	
                “
      NewCardio Material
      Contracts ” means the burden and benefit of and the right, title
      and interest of NewCardio in, to and under all trade and non-trade
      contracts, engagements or commitments, whether written or oral, to which
      NewCardio is entitled in connection with the NewCardio Business whereunder
      NewCardio is obligated to pay or entitled to receive the sum of $10,000 or
      more including, without limitation, any pension plans, profit sharing
      plans, bonus plans, loan agreements, security agreements, indemnities and
      guarantees, any agreements with employees, lessees, licensees, managers,
      accountants, suppliers, agents, distributors, officers, directors,
      attorneys or others which cannot be terminated without liability on not
      more than one month's notice, and those contracts listed in Schedule “R”
      hereto;

              

      

      

      
        	 
      	
                (kk)

              	
                “NewCardio Option ”
      shall mean any option to purchase or otherwise acquire NewCardio Shares
      (whether or not vested) outstanding under any NewCardio Option
      Plan;

              

      

      

      
        	 
      	
                (ll)

              	
                “NewCardio Option Plan”
      shall mean (i) NewCardio’s 2004 Equity Incentive Plan and (ii) any other
      compensatory option plans or contracts of NewCardio, including option
      plans or contracts assumed by the NewCardio pursuant to a merger or
      acquisition;

              

      

      

      
        	 
      	
                (mm)

              	
                “
      NewCardio Related Party
      Debts ” means the debts owed by the NewCardio Shareholders or by
      any family member thereof, or by any affiliate, director or officer of
      NewCardio or the NewCardio Shareholders, to NewCardio as described in
      Schedule “S”;

              

      

      

      
        	 
      	
                (nn)

              	
                “
      NewCardio Shares ”
      means all of the issued and outstanding shares of common stock, $0.0001
      par value, of NewCardio, whether or not certificates have been issues with
      respect to such shares, and shares of common stock issuable upon
      conversion and/or exercise of all NewCardio Preferred Shares and NewCardio
      Convertible Debt;

              

      

      

      
        	 
      	
                (oo)

              	
                “
      NewCardio Warrants
      ” shall mean the NewCardio Common Warrants and the NewCardio Bridge
      Warrants;

              

      

      

      
        	 
      	
                (pp)

              	
                “
      Place of Closing ”
      means the offices of Sichenzia Ross Friedman Ference LLP, or such other
      place as Marine Park and NewCardio may mutually agree upon;
      and

              

      

      

      
        	 
      	
                (qq)

              	
                “
      Return to Treasury
      Agreement ” means the Return to Treasury Agreement to be entered
      into on the Closing Date between Marine Park and Harborview Master Fund
      L.P. and Diverse Trading Ltd. in the form attached hereto as Exhibit
      “B.”

              

      

      

      Any other
terms defined within the text of this Agreement will have the meanings so
ascribed to them.

      

      Captions
and Section Numbers

      

      1.2
  The headings and section references in this Agreement are for convenience
of reference only and do not form a part of this Agreement and are not intended
to interpret, define or limit the scope, extent or intent of this Agreement or
any provision thereof.

      

      

      - 5
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      Section
References and Schedules

      

      1.3
  Any reference to a particular “Article”, “section”, “paragraph”, “clause”
or other subdivision is to the particular Article, section, clause or other
subdivision of this Agreement and any reference to a Schedule by letter will
mean the appropriate Schedule attached to this Agreement and by such reference
the appropriate Schedule is incorporated into and made part of this Agreement.
The Schedules to this Agreement are as follows:

      

      Information
concerning Marine Park

      

      
        	
                Schedule
      “A”

              	
                Marine
      Park Accounts Payable and Liabilities

              
	
                Schedule
      “B”

              	
                Marine
      Park Accounts Receivable

              
	
                Schedule
      “C”

              	
                Marine
      Park Bank Accounts

              
	
                Schedule
      “D”

              	
                Marine
      Park Debts to Related Parties

              
	
                Schedule
      “E”

              	
                Marine
      Park Equipment

              
	
                Schedule
      “F”

              	
                Marine
      Park Financial Statements

              
	
                Schedule
      “G”

              	
                Marine
      Park Insurance Policies

              
	
                Schedule
      “H”

              	
                Marine
      Park Inventory

              
	
                Schedule
      “I”

              	
                Marine
      Park Material Contracts

              

      

      

      Information
concerning NewCardio

      

      
        	
                Schedule
      “J”

              	
                NewCardio
      Accounts Payable and Liabilities

              
	
                Schedule
      “K”

              	
                NewCardio
      Accounts Receivable

              
	
                Schedule
      “L”

              	
                NewCardio
      Bank Accounts

              
	
                Schedule
      “M”

              	
                NewCardio
      Debts to Related Parties

              
	
                Schedule
      “N”

              	
                NewCardio
      Equipment

              
	
                Schedule
      “O”

              	
                NewCardio
      Financial Statements

              
	
                Schedule
      “P”

              	
                NewCardio
      Insurance Policies

              
	
                Schedule
      “Q”

              	
                NewCardio
      Inventory

              
	
                Schedule
      “R”

              	
                NewCardio
      Material Contracts

              
	
                Schedule
      “S”

              	
                NewCardio
      Related Party Debts

              

      

      

      Exhibits

      

      
        	
                Exhibit
      “A”

              	
                Share
      Exchange Structure

              
	
                Exhibit
      “B”

              	
                Return
      to Treasury Agreement

              
	
                Exhibit
      “C”

              	
                Director
      Nominees

              
	
                Exhibit
      “D”

              	
                Certificate
      of Designation

              
	
                Exhibit
      “E”

              	
                Form
      of Legal Opinion

              

      

      

      Severability
of Clauses

      

      1.4
  If any part of this Agreement is declared or held to be invalid for any
reason, such invalidity will not affect the validity of the remainder which will
continue in full force and effect and be construed as if this Agreement had been
executed without the invalid portion, and it is hereby declared the intention of
the parties that this Agreement would have been executed without reference to
any portion which may, for any reason, be hereafter declared or held to be
invalid.

      

      

      - 6
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      ARTICLE
2

      THE
ACQUISITION

      

      Sale
of Shares

      

      2.1
  The NewCardio Shareholders hereby agree to sell to Marine Park the
NewCardio Shares in exchange for the Acquisition Shares on the Closing Date and
to transfer to Marine Park on the Closing Date a 100% undivided interest in and
to the NewCardio Shares free from all liens, mortgages, charges, pledges,
encumbrances or other burdens with all rights now or thereafter attached
thereto.

      

      
        	
                2.2

              	
                Treatment of NewCardio
      Options .

              

      

      

      (a)
  At the Closing, by virtue of the transactions contemplated hereunder and
without any action on the part of the holders of any shares of NewCardio
Options, each NewCardio Option that is issued and outstanding immediately prior
to the Closing Date, whether or not then exercisable, will be assumed by Marine
Park and converted automatically into an option to purchase Marine Park Common
Shares (“ Assumed
Options ”) as set forth below. Each Assumed Option will continue to have,
and be subject to, the same terms and conditions set forth in the NewCardio
Option Plan and the agreements evidencing the grant thereof immediately prior to
the Closing Date, including provisions with respect to vesting and the number of
whole shares they shall be exercisable for of Marine Park Common Shares . It is
the intention of the parties that each Assumed Option that qualified as an
incentive stock option (as defined in Section 422 of the Code) shall continue to
so qualify, to the maximum extent permissible, following the Closing
Date.

      

      (b)
  Promptly following the Closing Date, Marine Park shall issue to each
holder of a NewCardio Option that was assumed by Marine Park pursuant to Section
2.2(a) a document evidencing the assumption of such NewCardio Option by Marine
Park.

      

      (c)
  Following the Closing Date, Marine Park will be able to grant stock
awards, to the extent permissible by applicable Law and regulations, under the
terms of the NewCardio Option Plan or the terms of another plan adopted by
Marine Park to issue the reserved but unissued NewCardio Shares under such
NewCardio Option Plan and the shares that would otherwise return to the
NewCardio Option Plan pursuant to Section 4(b) thereof (which provides that
NewCardio Shares subject to unexercised portions of any award granted thereunder
that expires or otherwise terminates will return and may be used for awards to
be granted under the NewCardio Option Plan), except that (i) NewCardio Shares
covered by such awards will be shares of Marine Park Common Shares and (ii) all
references to a number of NewCardio Shares will be changed to reference Marine
Park Common Shares. Notwithstanding the foregoing, neither NewCardio, nor any
NewCardio Stockholder, nor any holder of a NewCardio Option, makes any
representation or warranty or shall have any obligation or any liability
whatsoever, including without limitation any indemnification obligation under
this Agreement, or be required to take any action with respect to or arising out
of this Section  2.2(c).

      

      
        	
                2.3

              	
                Treatment of NewCardio
      Warrants .

              

      

      

      (a)
  At the Closing, by virtue of the transactions contemplated hereunder and
without any action on the part of the holders of any shares of NewCardio
Warrants, each NewCardio Warrant that is issued and outstanding immediately
prior to the Closing Date will be assumed by Marine Park and converted
automatically into a warrant to purchase a number of shares of Marine Park
Common Shares as set forth in the agreements evidencing such NewCardio Warrant
at the exercise price set forth in the agreements evidencing such NewCardio
Warrant.

      

      

      - 7
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      (b)
  Promptly following the Closing Date, Marine Park shall issue to each
holder of a NewCardio Warrant that was assumed by Marine Park pursuant to
Section   2.3(a)
  a document
evidencing the assumption of such NewCardio Warrant by Marine Park.

      

      2.4
  Treatment of Restricted
Stock Grants . Notwithstanding anything herein to the contrary, each
NewCardio Shareholder who originally purchased NewCardio Shares pursuant to a
restricted stock purchase agreement or other agreement, in any case outside the
NewCardio Option Plan, which provides for the release or vesting of such
NewCardio Shares over the course of time, and as of the Closing Date, all or any
portion of the Acquisition Shares exchange therewith shall remain subject to
release or vesting pursuant to such agreement, and such NewCardio Shareholder
agrees that the portion of Acquisition Shares remaining subject to release or
vesting as of the Closing Date shall continue to remain subject to release or
vesting upon and following the Closing Date subject to the terms and conditions
set forth in the agreement through which such NewCardio Shares were originally
issued. At the Closing, by virtue of the transactions contemplated hereunder and
without any action on the part of the holders of any such NewCardio Shares,
Marine Park shall assume all of NewCardio’s rights and obligations under such
agreements with respect to the release or vesting of such Acquisition Shares
upon and following the Closing Date.

      

      2.5
  Treatment of NewCardio
Preferred Shares and NewCardio Convertible Debt . On the Closing Date, by
virtue of the sale to Marine Park of the NewCardio Shares in exchange for the
Acquisition Shares, the NewCardio Shareholders who previously held NewCardio
Preferred Shares and/or NewCardio Convertible Debt hereby confirm the conversion
thereof and agree that such NewCardio Preferred Shares and/or NewCardio
Convertible Debt shall automatically be cancelled and extinguished, without any
action on the part of the holder thereof, in exchange for the right to receive
the Acquisition Shares at the Closing. All such NewCardio Preferred Shares
and/or NewCardio Convertible Debt shall no longer be outstanding and shall
automatically be cancelled and retired and shall cease to exist, and each holder
thereof shall cease to have any rights with respect thereto, except the right to
receive the Acquisition Shares paid in consideration therefor upon the surrender
of such in accordance with this Agreement. Furthermore, the NewCardio
Shareholders hereby waive any requirement or obligation of NewCardio to provided
any notice or take any other actions with respect to the conversion of the
NewCardio Preferred Shares and/or NewCardio Convertible Debt.

      

      Allocation
of Consideration

      

      2.6
  The Acquisition Shares shall be allocated to the NewCardio Shareholders
on the basis of one Acquisition Share for each one NewCardio Share held by a
NewCardio Shareholder as set forth in Schedule 2.2 attached hereto.

      

      Adherence
with Applicable Securities Laws

      

      2.7
  The NewCardio Shareholders agree that they are acquiring the Acquisition
Shares for investment purposes and will not offer, sell or otherwise transfer,
pledge or hypothecate any of the Acquisition Shares issued to them (other than
pursuant to an effective Registration Statement under the Securities Act of 1933 , as
amended) directly or indirectly unless:

      

      
        	 
      	
                (a)

              	
                the
      sale is to Marine Park;

              

      

      

      
        	 
      	
                (b)

              	
                the
      sale is made pursuant to the exemption from registration under the Securities Act of 1933, as
      amended, provided by Rule 144 thereunder;
  or

              

      

      

      
        	 
      	
                (c)

              	
                the
      Acquisition Shares are sold in a transaction that does not require
      registration under the Securities Act of 1933, as
      amended, or any applicable United States state laws and regulations
      governing the offer and sale of securities, and the vendor has furnished
      to Marine Park an opinion of counsel to that effect or such other written
      opinion as may be reasonably required by Marine
  Park.

              

      

      

      

      - 8
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      The
NewCardio Shareholders acknowledge that the certificates representing the
Acquisition Shares shall bear the following legend:

      

      NO SALE,
OFFER TO SELL, OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL
BE MADE UNLESS A REGISTRATION STATEMENT UNDER THE FEDERAL SECURITIES ACT OF
1933, AS AMENDED, IN RESPECT OF SUCH SHARES IS THEN IN EFFECT OR AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SAID ACT IS THEN IN FACT APPLICABLE TO
SAID SHARES.

      

      ARTICLE
3

      REPRESENTATIONS
AND WARRANTIES

      OF
MARINE PARK

      

      Representations
and Warranties

      

      3.1
  Marine Park hereby represents and warrants in all material respects to
NewCardio and the NewCardio Shareholders, with the intent that NewCardio and the
NewCardio Shareholders will rely thereon in entering into this Agreement and in
approving and completing the transactions contemplated hereby,
that:

      

      Marine
Park - Corporate Status and Capacity

      

      
        	 
      	
                (a)

              	
                Incorporation .
      Marine Park is a corporation duly incorporated and validly subsisting
      under the laws of the State of Delaware and in good standing with the
      office of the Secretary of State for the State of
  Delaware;

              

      

      

      
        	 
      	
                (b)

              	
                Carrying on
      Business . Marine Park conducts the business described in its
      filings with the Securities and Exchange Commission and does not conduct
      any other business. Marine Park is duly authorized to carry on such
      business in the State of New York. The nature of the Marine Park Business
      does not require Marine Park to register or otherwise be qualified to
      carry on business in any other
jurisdictions;

              

      

      

      
        	 
      	
                (c)

              	
                Corporate
      Capacity . Marine Park has the corporate power, capacity and
      authority to own the Marine Park Assets and to enter into and complete
      this Agreement;

              

      

      

      
        	 
      	
                (d)

              	
                Reporting Status;
      Listing . Marine Park is required to file current reports with the
      Securities and Exchange Commission pursuant to section 15(d) of the
      Securities Exchange Act of 1934, Marine Park filed a registeration
      statement under the Securities Act of 1933 and are quoted on the
      Over-the-Counter Bulletin Board, and all reports required to be filed by
      Marine Park with the Securities and Exchange Commission or NASD have been
      filed;

              

      

      

      

      - 9
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                Marine
      Park - Capitalization

              

      

      

      
        	 
      	
                (e)

              	
                Authorized
      Capital . The authorized capital of Marine Park consists of
      99,000,000 Marine Park Common Shares, $0.001 par value and 1,000,000
      shares of preferred stock, $0.001 par value, of which 10,940,000 Marine
      Park Common Shares, and no shares of preferred stock are presently issued
      and outstanding;

              

      

      

      
        	 
      	
                (f)

              	
                No Option, Warrant or
      Other Right . No person, firm or corporation has any agreement,
      option, warrant, preemptive right or any other right capable of becoming
      an agreement, option, warrant or right for the acquisition of Marine Park
      Common Shares or for the purchase, subscription or issuance of any of the
      unissued shares in the capital of Marine
Park;

              

      

      

      
        	
                 
      

              	
                Marine
      Park - Records and Financial
Statements

              

      

      

      
        	 
      	
                (g)

              	
                Charter
      Documents . The charter documents of Marine Park and its
      subsidiaries have not been altered since the incorporation of each,
      respectively, except as filed in the record books of Marine Park or its
      subsidiaries, as the case may be;

              

      

      

      
        	 
      	
                (h)

              	
                Corporate Minute
      Books . The corporate minute books of Marine Park and its
      subsidiaries are complete and each of the minutes contained therein
      accurately reflect the actions that were taken at a duly called and held
      meeting or by consent without a meeting. All actions by Marine Park and
      its subsidiaries which required director or shareholder approval are
      reflected on the corporate minute books of Marine Park and its
      subsidiaries. Marine Park and its subsidiaries are not in violation or
      breach of, or in default with respect to, any term of their respective
      Certificates of Incorporation (or other charter documents) or
      by-laws.

              

      

      

      
        	 
      	
                (i)

              	
                Marine Park Financial
      Statements . The Marine Park Financial Statements present fairly,
      in all material respects, the assets and liabilities (whether accrued,
      absolute, contingent or otherwise) of Marine Park, on a consolidated
      basis, as of the respective dates thereof, and the sales and earnings of
      the Marine Park Business during the periods covered thereby, in all
      material respects and have been prepared in substantial accordance with
      generally accepted accounting principles consistently
    applied;

              

      

      

      
        	 
      	
                (j)

              	
                Marine Park Accounts
      Payable and Liabilities . There are no material liabilities,
      contingent or otherwise, of Marine Park or its subsidiaries which are not
      disclosed in Schedule “A” hereto or reflected in the Marine Park Financial
      Statements except those incurred in the ordinary course of business since
      the date of the said schedule and the Marine Park Financial Statements,
      and neither Marine Park nor its subsidiaries have guaranteed or agreed to
      guarantee any debt, liability or other obligation of any person, firm or
      corporation. Without limiting the generality of the foregoing, all
      accounts payable and liabilities of Marine Park as of September 30, 2007,
      are described in Schedule “A”
hereto;

              

      

      

      
        	 
      	
                (k)

              	
                Marine Park Accounts
      Receivable . All the Marine Park Accounts Receivable result from
      bona fide business transactions and services actually rendered without, to
      the knowledge and belief of Marine Park, any claim by the obligor for
      set-off or counterclaim. Without limiting the generality of the foregoing,
      all accounts receivable of Marine Park as of September 30, 2007, are
      described in Schedule “B” hereto;

              

      

      

      
        	 
      	
                (l)

              	
                Marine Park Bank
      Accounts . All of the Marine Park Bank Accounts, their location,
      numbers and the authorized signatories thereto are as set forth in
      Schedule “C” hereto;

              

      

      

      

      - 10
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                (m)

              	
                No Debt to Related
      Parties . Except as disclosed in Schedule “D” hereto, neither
      Marine Park nor any of its subsidiaries is, and on Closing will not be,
      indebted to any affiliate, director or officer of Marine Park except
      accounts payable on account of bona fide business transactions of Marine
      Park incurred in normal course of the Marine Park Business, including
      employment agreements, none of which are more than 30 days in
      arrears;

              

      

      

      
        	 
      	
                (n)

              	
                No Related Party Debt
      to Marine Park . No director or officer or affiliate of Marine Park
      is now indebted to or under any financial obligation to Marine Park or any
      subsidiary on any account whatsoever, except for advances on account of
      travel and other expenses not exceeding $1,000 in
  total;

              

      

      

      
        	 
      	
                (o)

              	
                No Dividends .
      No dividends or other distributions on any shares in the capital of Marine
      Park have been made, declared or authorized since the date of Marine Park
      Financial Statements;

              

      

      

      
        	 
      	
                (p)

              	
                No Payments .
      No payments of any kind have been made or authorized since the date of the
      Marine Park Financial Statements to or on behalf of officers, directors,
      shareholders or employees of Marine Park or its subsidiaries or under any
      management agreements with Marine Park or its subsidiaries, except
      payments made in the ordinary course of business and at the regular rates
      of salary or other remuneration payable to
them;

              

      

      

      
        	 
      	
                (q)

              	
                No Pension
      Plans . There are no pension, profit sharing, group insurance or
      similar plans or other deferred compensation plans affecting Marine
      Park;

              

      

      

      
        	 
      	
                (r)

              	
                No Adverse
      Events . Since the date of the Marine Park Financial
      Statements

              

      

      

      
        	 
      	
                (i)

              	
                there
      has not been any material adverse change in the consolidated financial
      position or condition of Marine Park, its subsidiaries, its liabilities or
      the Marine Park Assets or any damage, loss or other change in
      circumstances materially affecting Marine Park, the Marine Park Business
      or the Marine Park Assets or Marine Park’ right to carry on the Marine
      Park Business, other than changes in the ordinary course of
      business,

              

      

      

      
        	 
      	
                (ii)

              	
                there
      has not been any damage, destruction, loss or other event (whether or not
      covered by insurance) materially and adversely affecting Marine Park, its
      subsidiaries, the Marine Park Business or the Marine Park
      Assets,

              

      

      

      
        	 
      	
                (iii)

              	
                there
      has not been any material increase in the compensation payable or to
      become payable by Marine Park to any of Marine Park’ officers, employees
      or agents or any bonus, payment or arrangement made to or with any of
      them,

              

      

      

      
        	 
      	
                (iv)

              	
                the
      Marine Park Business has been and continues to be carried on in the
      ordinary course,

              

      

      

      
        	 
      	
                (v)

              	
                Marine
      Park has not waived or surrendered any right of material
      value,

              

      

      

      
        	 
      	
                (vi)

              	
                neither
      Marine Park nor its subsidiaries have discharged or satisfied or paid any
      lien or encumbrance or obligation or liability other than current
      liabilities in the ordinary course of business,
  and

              

      

      

      

      - 11
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                (vii)

              	
                no
      capital expenditures in excess of $10,000 individually or $30,000 in total
      have been authorized or made.

              

      

      

      Marine
Park - Income Tax Matters

      

      
        	 
      	
                (s)

              	
                Tax Returns .
      All tax returns and reports of Marine Park and its subsidiaries required
      by law to be filed have been filed and are true, complete and correct, and
      any taxes payable in accordance with any return filed by Marine Park and
      its subsidiaries or in accordance with any notice of assessment or
      reassessment issued by any taxing authority have been so
    paid;

              

      

      

      
        	 
      	
                (t)

              	
                Current Taxes .
      Adequate provisions have been made for taxes payable for the current
      period for which tax returns are not yet required to be filed and there
      are no agreements, waivers, or other arrangements providing for an
      extension of time with respect to the filing of any tax return by, or
      payment of, any tax, governmental charge or deficiency by Marine Park or
      its subsidiaries. Marine Park is not aware of any contingent tax
      liabilities or any grounds which would prompt a reassessment including
      aggressive treatment of income and expenses in filing earlier tax
      returns;

              

      

      

      Marine
Park - Applicable Laws and Legal Matters

      

      
        	 
      	
                (u)

              	
                Licenses .
      Marine Park and its subsidiaries hold all licenses and permits as may be
      requisite for carrying on the Marine Park Business in the manner in which
      it has heretofore been carried on, which licenses and permits have been
      maintained and continue to be in good standing except where the failure to
      obtain or maintain such licenses or permits would not have a material
      adverse effect on the Marine Park
Business;

              

      

      

      
        	 
      	
                (v)

              	
                Applicable Laws
      . Neither Marine Park nor its subsidiaries have been charged with or
      received notice of breach of any laws, ordinances, statutes, regulations,
      by-laws, orders or decrees to which they are subject or which apply to
      them the violation of which would have a material adverse effect on the
      Marine Park Business, and neither Marine Park nor its subsidiaries are in
      breach of any laws, ordinances, statutes, regulations, bylaws, orders or
      decrees the contravention of which would result in a material adverse
      impact on the Marine Park Business;

              

      

      

      
        	 
      	
                (w)

              	
                Pending or Threatened
      Litigation . There is no material litigation or administrative or
      governmental proceeding pending or threatened against or relating to
      Marine Park, its subsidiaries, the Marine Park Business, or any of the
      Marine Park Assets nor does Marine Park have any knowledge of any
      deliberate act or omission of Marine Park or its subsidiaries that would
      form any material basis for any such action or
  proceeding;

              

      

      

      
        	 
      	
                (x)

              	
                No Bankruptcy .
      Neither Marine Park nor its subsidiaries have made any voluntary
      assignment or proposal under applicable laws relating to insolvency and
      bankruptcy and no bankruptcy petition has been filed or presented against
      Marine Park or its subsidiaries and no order has been made or a resolution
      passed for the winding-up, dissolution or liquidation of Marine Park or
      its subsidiaries;

              

      

      

      
        	 
      	
                (y)

              	
                Labor Matters .
      Neither Marine Park nor its subsidiaries are party to any collective
      agreement relating to the Marine Park Business with any labor union or
      other association of employees and no part of the Marine Park Business has
      been certified as a unit appropriate for collective bargaining or, to the
      knowledge of Marine Park, has made any attempt in that
    regard;

              

      

      

      

      - 12
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                (z)

              	
                Finder's Fees .
      Neither Marine Park nor its subsidiaries are party to any agreement which
      provides for the payment of finder's fees, brokerage fees, commissions or
      other fees or amounts which are or may become payable to any third party
      in connection with the execution and delivery of this Agreement and the
      transactions contemplated herein;

              

      

      

      Execution
and Performance of Agreement

      

      
        	 
      	
                (aa)

              	
                Authorization and
      Enforceability . The execution and delivery of this Agreement, and
      the completion of the transactions contemplated hereby, have been duly and
      validly authorized by all necessary corporate action on the part of Marine
      Park;

              

      

      

      
        	 
      	
                (bb)

              	
                No Violation or
      Breach . The execution and performance of this Agreement will
      not:

              

      

      

      
        	 
      	
                (i)

              	
                violate
      the charter documents of Marine Park or result in any breach of, or
      default under, any loan agreement, mortgage, deed of trust, or any other
      agreement to which Marine Park or its subsidiaries are
    party,

              

      

      

      
        	 
      	
                (ii)

              	
                give
      any person any right to terminate or cancel any agreement including,
      without limitation, the Marine Park Material Contracts, or any right or
      rights enjoyed by Marine Park or its
  subsidiaries,

              

      

      

      
        	 
      	
                (iii)

              	
                result
      in any alteration of Marine Park’ or its subsidiaries’ obligations under
      any agreement to which Marine Park or its subsidiaries are party
      including, without limitation, the Marine Park Material
      Contracts,

              

      

      

      
        	 
      	
                (iv)

              	
                result
      in the creation or imposition of any lien, encumbrance or restriction of
      any nature whatsoever in favor of a third party upon or against the Marine
      Park Assets,

              

      

      

      
        	 
      	
                (v)

              	
                result
      in the imposition of any tax liability to Marine Park or its subsidiaries
      relating to the Marine Park Assets,
or

              

      

      

      
        	 
      	
                (vi)

              	
                violate
      any court order or decree to which either Marine Park or its subsidiaries
      are subject;

              

      

      

      Marine
Park Assets - Ownership and Condition

      

      
        	 
      	
                (cc)

              	
                Business Assets
      . The Marine Park Assets comprise all of the property and assets of the
      Marine Park Business, and no other person, firm or corporation owns any
      assets used by Marine Park or its subsidiaries in operating the Marine
      Park Business, whether under a lease, rental agreement or other
      arrangement, other than as disclosed in Schedules “E” or “H”
      hereto;

              

      

      

      
        	 
      	
                (dd)

              	
                Title . Marine
      Park or its subsidiaries are the legal and beneficial owner of the Marine
      Park Assets, free and clear of all mortgages, liens, charges, pledges,
      security interests, encumbrances or other claims whatsoever, save and
      except as disclosed in Schedules “E” or “H”
  hereto;

              

      

      

      
        	 
      	
                (ee)

              	
                No Option . No
      person, firm or corporation has any agreement or option or a right capable
      of becoming an agreement for the purchase of any of the Marine Park
      Assets;

              

      

      

      

      - 13
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                (ff)

              	
                Marine Park Insurance
      Policies . Marine Park and its subsidiaries maintain the public
      liability insurance and insurance against loss or damage to the Marine
      Park Assets and the Marine Park Business as described in Schedule “G”
      hereto;

              

      

      

      
        	 
      	
                (gg)

              	
                Marine Park Material
      Contracts . The Marine Park Material Contracts listed in Schedule
      “I” constitute all of the material contracts of Marine Park and its
      subsidiaries;

              

      

      

      
        	 
      	
                (hh)

              	
                No Default .
      There has not been any default in any material obligation of Marine Park
      or any other party to be performed under any of the Marine Park Material
      Contracts, each of which is in good standing and in full force and effect
      and unamended (except as disclosed in Schedule “I” hereto), and Marine
      Park is not aware of any default in the obligations of any other party to
      any of the Marine Park Material
Contracts;

              

      

      

      
        	 
      	
                (ii)

              	
                No Compensation on
      Termination . There are no agreements, commitments or
      understandings relating to severance pay or separation allowances on
      termination of employment of any employee of Marine Park or its
      subsidiaries. Neither Marine Park nor its subsidiaries are obliged to pay
      benefits or share profits with any employee after termination of
      employment except as required by
law;

              

      

      

      Marine
Park Assets - Marine Park Equipment

      

      
        	 
      	
                (jj)

              	
                Marine Park
      Equipment . The Marine Park Equipment has been maintained in a
      manner consistent with that of a reasonably prudent owner and such
      equipment is in good working
condition;

              

      

      

      Marine
Park Assets - Marine Park Goodwill and Other Assets

      

      
        	 
      	
                (kk)

              	
                Marine Park
      Goodwill . Marine Park and its subsidiaries do not carry on the
      Marine Park Business under any other business or trade names. Marine Park
      does not have any knowledge of any infringement by Marine Park or its
      subsidiaries of any patent, trademarks, copyright or trade
      secret;

              

      

      

      Marine
Park Business

      

      
        	 
      	
                (ll)

              	
                Maintenance of
      Business . Since the date of the Marine Park Financial Statements,
      Marine Park and its subsidiaries have not entered into any material
      agreement or commitment except in the ordinary course and except as
      disclosed herein;

              

      

      

      
        	 
      	
                (mm)

              	
                Subsidiaries .
      Marine Park does not own any subsidiaries and does not otherwise own,
      directly or indirectly, any shares or interest in any other corporation,
      partnership, joint venture or firm;
and

              

      

      

      Marine
Park - Acquisition Shares

      

      
        	 
      	
                (nn)

              	
                Acquisition
      Shares . The Acquisition Shares when delivered to the NewCardio
      Shareholders pursuant to the Acquisition shall be validly issued and
      outstanding as fully paid and non-assessable shares and the Acquisition
      Shares shall be transferable upon the books of Marine Park, in all cases
      subject to the provisions and restrictions of all applicable securities
      laws.

              

      

      

      

      - 14
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      Non-Merger
and Survival

      

      3.2
  The representations and warranties of Marine Park contained herein will
be true at and as of Closing in all material respects as though such
representations and warranties were made as of such time. Notwithstanding the
completion of the transactions contemplated hereby, the waiver of any condition
contained herein (unless such waiver expressly releases a party from any such
representation or warranty) or any investigation made by NewCardio or the
NewCardio Shareholders, the representations and warranties of Marine Park shall
survive the Closing.

      

      Indemnity

      

      3.3
  Marine Park agrees to indemnify and save harmless NewCardio and the
NewCardio Shareholders from and against any and all claims, demands, actions,
suits, proceedings, assessments, judgments, damages, costs, losses and expenses,
including any payment made in good faith in settlement of any claim (subject to
the right of Marine Park to defend any such claim), resulting from the breach by
it of any representation or warranty made under this Agreement or from any
misrepresentation in or omission from any certificate or other instrument
furnished or to be furnished by Marine Park to NewCardio or the NewCardio
Shareholders hereunder.

      

      

      ARTICLE
4

      COVENANTS
OF MARINE PARK

      

      Covenants

      

      4.1
  Marine Park covenants and agrees with NewCardio and the NewCardio
Shareholders that it will:

      

      
        	 
      	
                (a)

              	
                Conduct of
      Business . Until the Closing, conduct the Marine Park Business
      diligently and in the ordinary course consistent with the manner in which
      the Marine Park Business generally has been operated up to the date of
      execution of this Agreement;

              

      

      

      
        	 
      	
                (b)

              	
                Preservation of
      Business . Until the Closing, use its best efforts to preserve the
      Marine Park Business and the Marine Park Assets and, without limitation,
      preserve for NewCardio Marine Park’s and its subsidiaries’ relationships
      with any third party having business relations with
  them;

              

      

      

      
        	 
      	
                (c)

              	
                Access . Until
      the Closing, give NewCardio, the NewCardio Shareholders, and their
      representatives full access to all of the properties, books, contracts,
      commitments and records of Marine Park, and furnish to NewCardio, the
      NewCardio Shareholders and their representatives all such information as
      they may reasonably request; and

              

      

      

      
        	 
      	
                (d)

              	
                Procure
      Consents . Until the Closing, take all reasonable steps required to
      obtain, prior to Closing, any and all third party consents required to
      permit the Acquisition and to preserve and maintain the Marine Park Assets
      notwithstanding the change in control of NewCardio arising from the
      Acquisition.

              

      

      

      Authorization

      

      4.2
  Marine Park hereby agrees to authorize and direct any and all federal,
state, municipal, foreign and international governments and regulatory
authorities having jurisdiction respecting Marine Park and its subsidiaries to
release any and all information in their possession respecting Marine Park and
its subsidiaries to the NewCardio Shareholders. Marine Park shall promptly
execute and deliver to the NewCardio Shareholders any and all consents to the
release of information and specific authorizations which the NewCardio
Shareholders reasonably requires to gain access to any and all such
information.

      

      

      - 15
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

      

      

      Survival

      

      4.3
  The covenants set forth in this Article shall survive the Closing for the
benefit of NewCardio and the NewCardio Shareholders.

      

      

      ARTICLE
5

      REPRESENTATIONS
AND WARRANTIES OF

      NEWCARDIO
AND THE NEWCARDIO SHAREHOLDERS

      

      Representations
and Warranties

      

      5.1
  NewCardio and the NewCardio Shareholders hereby represent and warrant in
all material respects to Marine Park, with the intent that it will rely thereon
in entering into this Agreement and in approving and completing the transactions
contemplated hereby, that:

      

      NewCardio
- Company Status and Capacity

      

      
        	 
      	
                (a)

              	
                Formation .
      NewCardio is a corporation duly incorporated and validly subsisting under
      the laws of the State of Delaware and in good standing with the office of
      the Secretary of State for the State of
  Delaware;

              

      

      

      
        	 
      	
                (b)

              	
                Carrying on
      Business . NewCardio carries on the NewCardio Business primarily in
      the State of California and does not carry on any material business
      activity in any other jurisdiction. The nature of the NewCardio Business
      does not require NewCardio to register or otherwise be qualified to carry
      on business in any other
jurisdiction;

              

      

      

      
        	 
      	
                (c)

              	
                Legal Capacity
      . NewCardio has the legal power, capacity and authority to own NewCardio
      Assets, to carry on the Business of NewCardio and to enter into and
      complete this Agreement;

              

      

      

      NewCardio
- Capitalization

      

      
        	 
      	
                (d)

              	
                Authorized
      Capital . The authorized capital of NewCardio consists of
      40,000,000 shares of common stock, $0.0001 par
  value;

              

      

      

      
        	 
      	
                (e)

              	
                Ownership of NewCardio
      Common Shares . The issued and outstanding shares of NewCardio
      common stock will on Closing consist of 10,507,300 shares of common stock,
      $0.001 par value, (being the NewCardio Common Shares), which shares on
      Closing shall be validly issued and outstanding as fully paid and
      non-assessable shares. The NewCardio Shareholders at Closing will be the
      registered and beneficial owners of the NewCardio Common Shares. The
      NewCardio Common Shares owned by the NewCardio Shareholders will on
      Closing be free and clear of any and all liens, charges, pledges,
      encumbrances, restrictions on transfer and adverse claims
      whatsoever;

              

      

      

      
        	 
      	
                (f)

              	
                Ownership of NewCardio
      Preferred Shares . The issued and outstanding shares of NewCardio
      preferred stock will on Closing consist of 7,155,206 shares of preferred
      stock, $0.001 par value, (being the NewCardio Preferred Shares), which
      shares on Closing shall be validly issued and outstanding as fully paid
      and non-assessable shares. The NewCardio Shareholders at Closing will be
      the registered and beneficial owners of the NewCardio Preferred Shares.
      The NewCardio Preferred Shares owned by the NewCardio Shareholders will on
      Closing be free and clear of any and all liens, charges, pledges,
      encumbrances, restrictions on transfer and adverse claims
      whatsoever;

              

      

      

      

      - 16
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      

      

      

      
        	 
      	
                (g)

              	
                Options, Warrants or
      Other Rights . Except for the NewCardio Convertible Securities and
      the NewCardio Convertible Debt, no person, firm or corporation has any
      agreement, option, warrant, preemptive right or any other right capable of
      becoming an agreement, option, warrant or right for the acquisition of
      NewCardio Common Shares held by the NewCardio Shareholders or for the
      purchase, subscription or issuance of any of the unissued shares in the
      capital of NewCardio. The NewCardio Shareholders at Closing will be the
      registered and beneficial owners of the NewCardio Convertible Securities
      and the NewCardio Convertible Debt. The NewCardio Convertible Securities
      and the NewCardio Convertible Debt owned by the NewCardio Shareholders
      will on Closing be free and clear of any and all liens, charges, pledges,
      encumbrances, restrictions on transfer and adverse claims
      whatsoever;

              

      

      

      
        	 
      	
                (h)

              	
                No Restrictions
      . There are no restrictions on the transfer, sale or other disposition of
      NewCardio Shares contained in the charter documents of NewCardio or under
      any agreement;

              

      

      

      NewCardio
- Records and Financial Statements

      

      
        	 
      	
                (i)

              	
                Charter
      Documents . The charter documents of NewCardio have not been
      altered since its formation date, except as filed in the record books of
      NewCardio;

              

      

      

      
        	 
      	
                (j)

              	
                Minute Books .
      The minute books of NewCardio are complete and each of the minutes
      contained therein accurately reflect the actions that were taken at a duly
      called and held meeting or by consent without a meeting. All actions by
      NewCardio which required director or shareholder approval are reflected on
      the corporate minute books of NewCardio. NewCardio is not in violation or
      breach of, or in default with respect to, any term of its Certificate of
      Incorporation (or other charter documents) or
  by-laws.

              

      

      

      
        	 
      	
                (k)

              	
                NewCardio Financial
      Statements . The NewCardio Financial Statements present fairly, in
      all material respects, the assets and liabilities (whether accrued,
      absolute, contingent or otherwise) of NewCardio as of the date thereof,
      and the sales and earnings of the NewCardio Business during the periods
      covered thereby, in all material respects, and have been prepared in
      substantial accordance with generally accepted accounting principles
      consistently applied;

              

      

      

      
        	 
      	
                (l)

              	
                NewCardio Accounts
      Payable and Liabilities . There are no material liabilities,
      contingent or otherwise, of NewCardio which are not disclosed in Schedule
      “J” hereto or reflected in the NewCardio Financial Statements except those
      incurred in the ordinary course of business since the date of the said
      schedule and the NewCardio Financial Statements, and NewCardio has not
      guaranteed or agreed to guarantee any debt, liability or other obligation
      of any person, firm or corporation. Without limiting the generality of the
      foregoing, all accounts payable and liabilities of NewCardio as of
      September 30, 2007 are described in Schedule “J”
  hereto;

              

      

      

      
        	 
      	
                (m)

              	
                NewCardio Accounts
      Receivable . All the NewCardio Accounts Receivable result from bona
      fide business transactions and services actually rendered without, to the
      knowledge and belief of the NewCardio Shareholders, any claim by the
      obligor for set-off or counterclaim. Without limiting the generality of
      the foregoing, all accounts receivable of NewCardio as of September 30,
      2007, are described in Schedule “K”
hereto;

              

      

      

      

      - 17
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                (n)

              	
                NewCardio Bank
      Accounts . All of the NewCardio Bank Accounts, their location,
      numbers and the authorized signatories thereto are as set forth in
      Schedule “L” hereto;

              

      

      

      
        	 
      	
                (o)

              	
                No Debt to Related
      Parties . Except as disclosed in Schedule “M” hereto, NewCardio is
      not and on Closing will not be, indebted to the NewCardio Shareholders nor
      to any family member thereof, nor to any affiliate, director or officer of
      NewCardio or the NewCardio Shareholders except accounts payable on account
      of bona fide business transactions of NewCardio incurred in normal course
      of NewCardio Business, including employment agreements with the NewCardio
      Shareholders, none of which are more than 30 days in
    arrears;

              

      

      

      
        	 
      	
                (p)

              	
                No Related Party Debt
      to NewCardio . Except as set forth on Schedule ”M” hereto, no
      NewCardio Shareholder nor any director, officer or affiliate of NewCardio
      is now indebted to or under any financial obligation to NewCardio on any
      account whatsoever, except for advances on account of travel and other
      expenses not exceeding $5,000 in
total;

              

      

      

      
        	 
      	
                (q)

              	
                No Dividends .
      No dividends or other distributions on any shares in the capital of
      NewCardio have been made, declared or authorized since the date of the
      NewCardio Financial Statements;

              

      

      

      
        	 
      	
                (r)

              	
                No Payments .
      No payments of any kind have been made or authorized since the date of the
      NewCardio Financial Statements to or on behalf of the NewCardio
      Shareholders or to or on behalf of officers, directors, shareholders or
      employees of NewCardio or under any management agreements with NewCardio,
      except payments made in the ordinary course of business and at the regular
      rates of salary or other remuneration payable to
  them;

              

      

      

      
        	 
      	
                (s)

              	
                No Pension
      Plans . There are no pension, profit sharing, group insurance or
      similar plans or other deferred compensation plans affecting NewCardio,
      except as set forth in the NewCardio Financial
  Statements;

              

      

      

      
        	 
      	
                (t)

              	
                No Adverse
      Events . Since the date of the NewCardio Financial
      Statements:

              

      

      

      
        	 
      	
                (i)

              	
                there
      has not been any material adverse change in the consolidated financial
      position or condition of NewCardio, its liabilities or the NewCardio
      Assets or any damage, loss or other change in circumstances materially
      affecting NewCardio, the NewCardio Business or the NewCardio Assets or
      NewCardio’s right to carry on the NewCardio Business, other than changes
      in the ordinary course of business,

              

      

      

      
        	 
      	
                (ii)

              	
                there
      has not been any damage, destruction, loss or other event (whether or not
      covered by insurance) materially and adversely affecting NewCardio, the
      NewCardio Business or the NewCardio
Assets,

              

      

      

      
        	 
      	
                (iii)

              	
                there
      has not been any material increase in the compensation payable or to
      become payable by NewCardio to the NewCardio Shareholders or to any of
      NewCardio's officers, employees or agents or any bonus, payment or
      arrangement made to or with any of
them,

              

      

      

      

      - 18
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      

      

      
        	 
      	
                (iv)

              	
                the
      NewCardio Business has been and continues to be carried on in the ordinary
      course,

              

      

      

      
        	 
      	
                (v)

              	
                NewCardio
      has not waived or surrendered any right of material
  value,

              

      

      

      
        	 
      	
                (vi)

              	
                NewCardio
      has not discharged or satisfied or paid any lien or encumbrance or
      obligation or liability other than current liabilities in the ordinary
      course of business, and

              

      

      

      
        	 
      	
                (vii)

              	
                no
      capital expenditures in excess of $10,000 individually or $30,000 in total
      have been authorized or made;

              

      

      

      NewCardio
- Income Tax Matters

      

      
        	 
      	
                (u)

              	
                Tax Returns .
      All tax returns and reports of NewCardio required by law to be filed have
      been filed and are true, complete and correct, and any taxes payable in
      accordance with any return filed by NewCardio or in accordance with any
      notice of assessment or reassessment issued by any taxing authority have
      been so paid;

              

      

      

      
        	 
      	
                (v)

              	
                Current Taxes .
      Adequate provisions have been made for taxes payable for the current
      period for which tax returns are not yet required to be filed and there
      are no agreements, waivers, or other arrangements providing for an
      extension of time with respect to the filing of any tax return by, or
      payment of, any tax, governmental charge or deficiency by NewCardio.
      NewCardio is not aware of any contingent tax liabilities or any grounds
      which would prompt a reassessment including aggressive treatment of income
      and expenses in filing earlier tax
returns;

              

      

      

      
        	
                 
      

              	
                NewCardio
      - Applicable Laws and Legal Matters

              

      

      

      
        	 
      	
                (w)

              	
                Licenses .
      NewCardio holds all licenses and permits as may be requisite for carrying
      on the NewCardio Business in the manner in which it has heretofore been
      carried on, which licenses and permits have been maintained and continue
      to be in good standing except where the failure to obtain or maintain such
      licenses or permits would not have a material adverse effect on the
      NewCardio Business;

              

      

      

      
        	 
      	
                (x)

              	
                Applicable Laws
      . NewCardio has not been charged with or received notice of breach of any
      laws, ordinances, statutes, regulations, by-laws, orders or decrees to
      which they are subject or which applies to them the violation of which
      would have a material adverse effect on the NewCardio Business, and, to
      the knowledge of the NewCardio Shareholders, NewCardio is not in breach of
      any laws, ordinances, statutes, regulations, by-laws, orders or decrees
      the contravention of which would result in a material adverse impact on
      the NewCardio Business;

              

      

      

      
        	 
      	
                (y)

              	
                Pending or Threatened
      Litigation . There is no material litigation or administrative or
      governmental proceeding pending or threatened against or relating to
      NewCardio, the NewCardio Business, or any of the NewCardio Assets, nor do
      the NewCardio Shareholders have any knowledge of any deliberate act or
      omission of NewCardio that would form any material basis for any such
      action or proceeding;

              

      

      

      
        	 
      	
                (z)

              	
                No Bankruptcy .
      NewCardio has not made any voluntary assignment or proposal under
      applicable laws relating to insolvency and bankruptcy and no bankruptcy
      petition has been filed or presented against NewCardio and no order has
      been made or a resolution passed for the winding-up, dissolution or
      liquidation of NewCardio;

              

      

      

      

      - 19
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                (aa)

              	
                Labor Matters .
      NewCardio is not party to any collective agreement relating to the
      NewCardio Business with any labor union or other association of employees
      and no part of the NewCardio Business has been certified as a unit
      appropriate for collective bargaining or, to the knowledge of the
      NewCardio Shareholders, has made any attempt in that
    regard;

              

      

      

      
        	 
      	
                (bb)

              	
                Finder's Fees .
      NewCardio is not a party to any agreement which provides for the payment
      of finder's fees, brokerage fees, commissions or other fees or amounts
      which are or may become payable to any third party in connection with the
      execution and delivery of this Agreement and the transactions contemplated
      herein;

              

      

      

      Execution
and Performance of Agreement

      

      
        	 
      	
                (cc)

              	
                Authorization and
      Enforceability . The execution and delivery of this Agreement, and
      the completion of the transactions contemplated hereby, have been duly and
      validly authorized by all necessary corporate action on the part of
      NewCardio;

              

      

      

      
        	 
      	
                (dd)

              	
                No Violation or
      Breach . The execution and performance of this Agreement will
      not

              

      

      

      
        	 
      	
                (i)

              	
                violate
      the charter documents of NewCardio or result in any breach of, or default
      under, any loan agreement, mortgage, deed of trust, or any other agreement
      to which NewCardio is a party,

              

      

      

      
        	 
      	
                (ii)

              	
                give
      any person any right to terminate or cancel any agreement including,
      without limitation, NewCardio Material Contracts, or any right or rights
      enjoyed by NewCardio,

              

      

      

      
        	 
      	
                (iii)

              	
                result
      in any alteration of NewCardio's obligations under any agreement to which
      NewCardio is a party including, without limitation, the NewCardio Material
      Contracts,

              

      

      

      
        	 
      	
                (iv)

              	
                result
      in the creation or imposition of any lien, encumbrance or restriction of
      any nature whatsoever in favor of a third party upon or against the
      NewCardio Assets,

              

      

      

      
        	 
      	
                (v)

              	
                result
      in the imposition of any tax liability to NewCardio relating to NewCardio
      Assets or the NewCardio Shares, or

              

      

      

      
        	 
      	
                (vi)

              	
                violate
      any court order or decree to which either NewCardio is
      subject;

              

      

      

      NewCardio
Assets - Ownership and Condition

      

      
        	 
      	
                (ee)

              	
                Business Assets
      . The NewCardio Assets, comprise all of the property and assets of the
      NewCardio Business, and neither the NewCardio Shareholders nor any other
      person, firm or corporation owns any assets used by NewCardio in operating
      the NewCardio Business, whether under a lease, rental agreement or other
      arrangement, other than as disclosed in Schedules “N” or “Q”
      hereto;

              

      

      

      
        	 
      	
                (ff)

              	
                Title .
      NewCardio is the legal and beneficial owner of the NewCardio Assets, free
      and clear of all mortgages, liens, charges, pledges, security interests,
      encumbrances or other claims whatsoever, save and except as disclosed in
      Schedules “N” or “Q” hereto;

              

      

      

      

      - 20
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                (gg)

              	
                No Option . No
      person, firm or corporation has any agreement or option or a right capable
      of becoming an agreement for the purchase of any of the NewCardio
      Assets;

              

      

      

      
        	 
      	
                (hh)

              	
                NewCardio Insurance
      Policies . NewCardio maintains the public liability insurance and
      insurance against loss or damage to the NewCardio Assets and the NewCardio
      Business as described in Schedule “P”
hereto;

              

      

      

      
        	 
      	
                (ii)

              	
                NewCardio Material
      Contracts . The NewCardio Material Contracts listed in Schedule “R”
      constitute all of the material contracts of
  NewCardio;

              

      

      

      
        	 
      	
                (jj)

              	
                No Default .
      There has not been any default in any material obligation of NewCardio or
      any other party to be performed under any of NewCardio Material Contracts,
      each of which is in good standing and in full force and effect and
      unamended (except as disclosed in Schedule “R”), and NewCardio is not
      aware of any default in the obligations of any other party to any of the
      NewCardio Material Contracts;

              

      

      

      
        	 
      	
                (kk)

              	
                No Compensation on
      Termination . There are no agreements, commitments or
      understandings relating to severance pay or separation allowances on
      termination of employment of any employee of NewCardio. NewCardio is not
      obliged to pay benefits or share profits with any employee after
      termination of employment except as required by
  law;

              

      

      

      NewCardio
Assets - NewCardio Equipment

      

      
        	 
      	
                (ll)

              	
                NewCardio
      Equipment . The NewCardio Equipment has been maintained in a manner
      consistent with that of a reasonably prudent owner and such equipment is
      in good working condition;

              

      

      

      NewCardio
Assets - NewCardio Goodwill and Other Assets

      

      
        	 
      	
                (mm)

              	
                NewCardio
      Goodwill . NewCardio carries on the NewCardio Business only under
      the name " NewCardio Technologies, Inc. " and variations thereof and under
      no other business or trade names. The NewCardio Shareholders do not have
      any knowledge of any infringement by NewCardio of any patent, trademark,
      copyright or trade secret;

              

      

      

      
        	
                 
      

              	
                The
      Business of NewCardio

              

      

      

      
        	 
      	
                (nn)

              	
                Maintenance of
      Business . Since the date of the NewCardio Financial Statements,
      the NewCardio Business has been carried on in the ordinary course and
      NewCardio has not entered into any material agreement or commitment except
      in the ordinary course; and

              

      

      

      
        	 
      	
                (oo)

              	
                Subsidiaries .
      NewCardio does not own any subsidiaries and does not otherwise own,
      directly or indirectly, any shares or interest in any other corporation,
      partnership, joint venture or firm and NewCardio does not own any
      subsidiary and does not otherwise own, directly or indirectly, any shares
      or interest in any other corporation, partnership, joint venture or
      firm.

              

      

      

      

      - 21
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                NewCardio
      Shareholder Representations and
Warranties

              

      

      

      
        	 
      	
                (pp)

              	
                Investment
      Intent . The Acquisition Shares are being acquired hereunder by the
      NewCardio Shareholders for investment purposes only, for their own
      account, not as a nominee or agent and not with a view to the distribution
      thereof. The NewCardio Shareholders have no present intention to sell or
      otherwise dispose of the Acquisition Shares and they will not do so except
      in compliance with the provisions of the Securities Act of 1933, as
      amended, and applicable law. The NewCardio Shareholders understand that
      the Acquisition Shares which may be acquired hereunder must be held by
      them indefinitely unless a subsequent disposition or transfer of any of
      said shares is registered under the Securities Act of 1933, as amended, or
      is exempt from registration therefrom. The NewCardio Shareholders further
      understand that the exemption from registration afforded by Rule 144 (the
      provisions of which are known to such Seller) promulgated under the
      Securities Act of 1933, as amended, depends on the satisfaction of various
      conditions, and that, if and when applicable, Rule 144 may afford the
      basis for sales only in limited
amounts.

              

      

      

      
        	 
      	
                (qq)

              	
                Investment Experience;
      Suitability . The NewCardio Shareholders are each sophisticated
      investors familiar with the type of risks inherent in the acquisition of
      securities such as the Acquisition Shares and the NewCardio Shareholders’
      financial position is such that the NewCardio Shareholders can afford to
      retain the shares of Acquisition Shares for an indefinite period of time
      without realizing any direct or indirect cash return on its
      investment.

              

      

      

      
        	 
      	
                (rr)

              	
                Accreditation .
      The NewCardio Shareholders are each an “accredited investor” within the
      meaning of Rule 501(a) of Regulation D promulgated under the Securities
      Act of 1933, as amended. The NewCardio Shareholders understand that the
      Acquisition Shares are being offered to them in reliance upon specific
      exemptions from the registration requirements of United States federal and
      state securities laws and that Marine Park is relying upon the truth and
      accuracy of, and the NewCardio Shareholders’ compliance with, the
      representations, warranties, agreements, acknowledgments and
      understandings of the NewCardio Shareholders set forth herein in order to
      determine the availability of such exemptions and the eligibility of the
      NewCardio Shareholders to acquire the Acquisition
  Shares.

              

      

      

      Non-Merger
and Survival

      

      5.2
  The representations and warranties of NewCardio contained herein will be
true at and as of Closing in all material respects as though such
representations and warranties were made as of such time. Notwithstanding the
completion of the transactions contemplated hereby, the waiver of any condition
contained herein (unless such waiver expressly releases a party from any such
representation or warranty) or any investigation made by Marine Park, the
representations and warranties of NewCardio shall survive the
Closing.

      

      

      - 22
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      Indemnity

      

      5.3
  NewCardio and the NewCardio Shareholders agree to indemnify and save
harmless Marine Park from and against any and all claims, demands, actions,
suits, proceedings, assessments, judgments, damages, costs, losses and expenses,
including any payment made in good faith in settlement of any claim
(collectively, the “Claims”) (subject to the right of the NewCardio Shareholders
to defend any such claim), resulting from the breach by any of them of any
representation or warranty of such party made under this Agreement or from any
misrepresentation in or omission from any certificate or other instrument
furnished or to be furnished by NewCardio or the NewCardio Shareholders to
Marine Park hereunder; provided, however, the NewCardio Shareholders shall not
be required to indemnify Marine Park for any such Claims in excess of the value
of the NewCardio Shares.

      

      ARTICLE
6

      COVENANTS
OF NEWCARDIO AND

      THE
NEWCARDIO SHAREHOLDERS

       

      Covenants

      

      6.1
  NewCardio and the NewCardio Shareholders covenant and agree with Marine
Park that they will:

      

      
        	 
      	
                (a)

              	
                Conduct of
      Business . Until the Closing, conduct the NewCardio Business
      diligently and in the ordinary course consistent with the manner in which
      the NewCardio Business generally has been operated up to the date of
      execution of this Agreement;

              

      

      

      
        	 
      	
                (b)

              	
                Preservation of
      Business . Until the Closing, use their best efforts to preserve
      the NewCardio Business and the NewCardio Assets and, without limitation,
      preserve for Marine Park NewCardio’s relationships with their suppliers,
      customers and others having business relations with
  them;

              

      

      

      
        	 
      	
                (c)

              	
                Access . Until
      the Closing, give Marine Park and its representatives full access to all
      of the properties, books, contracts, commitments and records of NewCardio
      relating to NewCardio, the NewCardio Business and the NewCardio Assets,
      and furnish to Marine Park and its representatives all such information as
      they may reasonably request; and

              

      

      

      
        	 
      	
                (d)

              	
                Procure
      Consents . Until the Closing, take all reasonable steps required to
      obtain, prior to Closing, any and all third party consents required to
      permit the Acquisition and to preserve and maintain the NewCardio Assets,
      including the NewCardio Material Contracts, notwithstanding the change in
      control of NewCardio arising from the
  Acquisition.

              

      

      

      Authorization

      

      6.2
  NewCardio hereby agrees to authorize and direct any and all federal,
state, municipal, foreign and international governments and regulatory
authorities having jurisdiction respecting NewCardio to release any and all
information in their possession respecting NewCardio to Marine Park. NewCardio
shall promptly execute and deliver to Marine Park any and all consents to the
release of information and specific authorizations which Marine Park reasonably
require to gain access to any and all such information.

      

      

      - 23
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      Survival

      

      6.3
  The covenants set forth in this Article shall survive the Closing for the
benefit of Marine Park.

      

      ARTICLE
7

      CONDITIONS
PRECEDENT

      

      Conditions
Precedent in favor of Marine Park

      

      7.1
  Marine Park’s obligations to carry out the transactions contemplated
hereby are subject to the fulfillment of each of the following conditions
precedent on or before the Closing:

      

      
        	 
      	
                (a)

              	
                all
      documents or copies of documents required to be executed and delivered to
      Marine Park hereunder will have been so executed and
      delivered;

              

      

      

      
        	 
      	
                (b)

              	
                all
      of the terms, covenants and conditions of this Agreement to be complied
      with or performed by NewCardio or the NewCardio Shareholders at or prior
      to the Closing will have been complied with or
  performed;

              

      

      

      
        	 
      	
                (c)

              	
                title
      to the NewCardio Shares held by the NewCardio Shareholders will be free
      and clear of all mortgages, liens, charges, pledges, security interests,
      encumbrances or other claims whatsoever, save and except as disclosed
      herein, and the NewCardio Shares shall be duly transferred to Marine
      Park;

              

      

      

      
        	 
      	
                (d)

              	
                subject
      to Article 8 hereof, there will not have
  occurred

              

      

      

      
        	 
      	
                (i)

              	
                any
      material adverse change in the financial position or condition of
      NewCardio, its liabilities or the NewCardio Assets or any damage, loss or
      other change in circumstances materially and adversely affecting
      NewCardio, the NewCardio Business or the NewCardio Assets or NewCardio's
      right to carry on the NewCardio Business, other than changes in the
      ordinary course of business, none of which has been materially adverse,
      or

              

      

      

      
        	 
      	
                (ii)

              	
                any
      damage, destruction, loss or other event, including changes to any laws or
      statutes applicable to NewCardio or the NewCardio Business (whether or not
      covered by insurance) materially and adversely affecting NewCardio, the
      NewCardio Business or the NewCardio
Assets;

              

      

      

      
        	 
      	
                (e)

              	
                the
      transactions contemplated hereby shall have been approved by all other
      regulatory authorities having jurisdiction over the subject matter hereof,
      if any; and

              

      

      

      
        	 
      	
                (f)

              	
                the
      transactions contemplated hereby shall have been approved by the board of
      directors of NewCardio.

              

      

       

      Waiver
by Marine Park

      

      7.2
  The conditions precedent set out in the preceding section are inserted
for the exclusive benefit of Marine Park and any such condition may be waived in
whole or in part by Marine Park at or prior to the Closing by delivering to
NewCardio a written waiver to that effect signed by Marine Park. In the event
that the conditions precedent set out in the preceding section are not satisfied
on or before the Closing, Marine Park shall be released from all obligations
under this Agreement.

      

      

      - 24
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      Conditions
Precedent in Favor of NewCardio and the NewCardio Shareholders

      

      7.3
  The obligations of NewCardio and the NewCardio Shareholders to carry out
the transactions contemplated hereby are subject to the fulfillment of each of
the following conditions precedent on or before the Closing:

      

      
        	 
      	
                (a)

              	
                all
      documents or copies of documents required to be executed and delivered to
      NewCardio under Section 9 will have been so executed and
      delivered;

              

      

      

      
        	 
      	
                (b)

              	
                all
      of the terms, covenants and conditions of this Agreement to be complied
      with or performed by Marine Park at or prior to the Closing will have been
      complied with or performed;

              

      

      

      
        	 
      	
                (c)

              	
                Marine
      Park will have delivered the Acquisition Shares to be issued pursuant to
      the terms of the Acquisition to NewCardio at the Closing and the
      Acquisition Shares will be registered on the books of Marine Park in the
      name of the holder of NewCardio Shares at the time of
    Closing;

              

      

      

      
        	 
      	
                (d)

              	
                title
      to the Acquisition Shares will be free and clear of all mortgages, liens,
      charges, pledges, security interests, encumbrances or other claims
      whatsoever;

              

      

      

      
        	 
      	
                (e)

              	
                subject
      to Article 8 hereof, there will not have
  occurred

              

      

      

      
        	 
      	
                (i)

              	
                any
      material adverse change in the financial position or condition of Marine
      Park, its subsidiaries, their liabilities or the Marine Park Assets or any
      damage, loss or other change in circumstances materially and adversely
      affecting Marine Park, the Marine Park Business or the Marine Park Assets
      or Marine Park’ right to carry on the Marine Park Business, other than
      changes in the ordinary course of business, none of which has been
      materially adverse, or

              

      

      

      
        	 
      	
                (ii)

              	
                any
      damage, destruction, loss or other event, including changes to any laws or
      statutes applicable to Marine Park or the Marine Park Business (whether or
      not covered by insurance) materially and adversely affecting Marine Park,
      its subsidiaries, the Marine Park Business or the Marine Park
      Assets;

              

      

      

      
        	 
      	
                (f)

              	
                the
      transactions contemplated hereby shall have been approved by all other
      regulatory authorities having jurisdiction over the subject matter hereof,
      if any;

              

      

      

      
        	 
      	
                (g)

              	
                the
      transactions contemplated hereby shall have been approved by the board of
      directors of Marine Park;

              

      

      

      
        	 
      	
                (g)

              	
                each
      of the directors and officers of Marine Park shall have resigned as
      directors and/or officers of Marine
Park;

              

      

      

      
        	 
      	
                (h)

              	
                the
      nominees of the NewCardio Shareholders, set forth on Exhibit “C,” annexed
      hereto, shall have been appointed as members of the board of directors of
      Marine Park.

              

      

      

      

      - 25
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      Waiver
by NewCardio and the NewCardio Shareholders

      

      7.4
  The conditions precedent set out in the preceding section are inserted
for the exclusive benefit of NewCardio and the NewCardio Shareholders and any
such condition may be waived in whole or in part by NewCardio or the NewCardio
Shareholders at or prior to the Closing by delivering to Marine Park a written
waiver to that effect signed by NewCardio and the NewCardio Shareholders. In the
event that the conditions precedent set out in the preceding section are not
satisfied on or before the Closing, NewCardio and the NewCardio Shareholders
shall be released from all obligations under this Agreement.

      

      Nature
of Conditions Precedent

      

      7.5
  The conditions precedent set forth in this Article are conditions of
completion of the transactions contemplated by this Agreement and are not
conditions precedent to the existence of a binding agreement. Each party
acknowledges receipt of the sum of $10.00 and other good and valuable
consideration as separate and distinct consideration for agreeing to the
conditions of precedent in favor of the other party or parties set forth in this
Article.

      

      Termination

      

      7.6
  Notwithstanding any provision herein to the contrary, if the Closing does
not occur on or before January 5, 2008 (the “Termination Date”), this Agreement
will be at an end and will have no further force or effect, unless otherwise
agreed upon by the parties in writing.

      

      Confidentiality

      

      7.7
  Notwithstanding any provision herein to the contrary, the parties hereto
agree that the existence and terms of this Agreement are confidential and that
if this Agreement is terminated pursuant to the preceding section the parties
agree to return to one another any and all financial, technical and business
documents delivered to the other party or parties in connection with the
negotiation and execution of this Agreement and shall keep the terms of this
Agreement and all information and documents received from NewCardio and Marine
Park and the contents thereof confidential and not utilize nor reveal or release
same, provided, however, that Marine Park will be required to issue a news
release regarding the execution and consummation of this Agreement and file a
Current Report on Form 8-K with the Securities and Exchange Commission
respecting the proposed Acquisition contemplated hereby together with such other
documents as are required to maintain the currency of Marine Park’s filings with
the Securities and Exchange Commission.

      

      ARTICLE
8

      RISK

      

      Material
Change in the Business of NewCardio

      

      8.1
  If any material loss or damage to the NewCardio Business occurs prior to
Closing and such loss or damage, in Marine Park' reasonable opinion, cannot be
substantially repaired or replaced within sixty (60) days, Marine Park shall,
within two (2) days following any such loss or damage, by notice in writing to
NewCardio, at its option, either:

      

      
        	 
      	
                (a)

              	
                terminate
      this Agreement, in which case no party will be under any further
      obligation to any other party; or

              

      

      

      
        	 
      	
                (b)

              	
                elect
      to complete the Acquisition and the other transactions contemplated
      hereby, in which case the proceeds and the rights to receive the proceeds
      of all insurance covering such loss or damage will, as a condition
      precedent to Marine Park' obligations to carry out the transactions
      contemplated hereby, be vested in NewCardio or otherwise adequately
      secured to the satisfaction of Marine Park on or before the Closing
      Date.

              

      

      

      

      - 26
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      Material
Change in the Marine Park Business

      

      8.2
  If any material loss or damage to the Marine Park Business occurs prior
to Closing and such loss or damage, in NewCardio's reasonable opinion, cannot be
substantially repaired or replaced within sixty (60) days, NewCardio shall,
within two (2) days following any such loss or damage, by notice in writing to
Marine Park, at its option, either:

      

      
        	 
      	
                (a)

              	
                terminate
      this Agreement, in which case no party will be under any further
      obligation to any other party; or

              

      

      

      
        	 
      	
                (b)

              	
                elect
      to complete the Acquisition and the other transactions contemplated
      hereby, in which case the proceeds and the rights to receive the proceeds
      of all insurance covering such loss or damage will, as a condition
      precedent to NewCardio's obligations to carry out the transactions
      contemplated hereby, be vested in Marine Park or otherwise adequately
      secured to the satisfaction of NewCardio on or before the Closing
      Date.

              

      

      

      ARTICLE
9

      CLOSING

      

      Closing

      

      9.1
  The Acquisition and the other transactions contemplated by this Agreement
will be closed at the Place of Closing on Closing Date in accordance with the
closing procedure set out in this Article.

      

      Documents
to be Delivered by NewCardio

      

      9.2
  On or before the Closing, NewCardio and the NewCardio Shareholders will
deliver or cause to be delivered to Marine Park:

      

      
        	 
      	
                (a)

              	
                the
      original or certified copies of the charter documents of NewCardio,
      including amendments thereof, and all corporate records documents and
      instruments of NewCardio, the corporate seal of NewCardio and all books
      and accounts of NewCardio;

              

      

      

      
        	 
      	
                (b)

              	
                all
      reasonable consents or approvals required to be obtained by NewCardio for
      the purposes of completing the Acquisition and preserving and maintaining
      the interests of NewCardio under any and all NewCardio Material Contracts
      and in relation to NewCardio
Assets;

              

      

      

      
        	 
      	
                (c)

              	
                certified
      copies of such resolutions of the directors of NewCardio as are required
      to be passed to authorize the execution, delivery and implementation of
      this Agreement;

              

      

      

      
        	 
      	
                (d)

              	
                an
      acknowledgement from NewCardio of the satisfaction of the conditions
      precedent set forth in section 7.3
hereof;

              

      

      

      
        	 
      	
                (e)

              	
                the
      certificates or other evidence of ownership of the NewCardio Shares,
      together with such other documents or instruments required to effect
      transfer of ownership of the NewCardio Shares to Marine
    Park;

              

      

      

      

      - 27
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                (f)

              	
                declaration
      of acceptance by nominees of the NewCardio Shareholders set forth on
      Exhibit “C” of being elected as members of the board of directors of
      Marine Park, and

              

      

      

      
        	 
      	
                (g)

              	
                such
      other documents as Marine Park may reasonably require to give effect to
      the terms and intention of this
Agreement.

              

      

      

      Documents
to be Delivered by Marine Park

      

      9.3
  On or before the Closing, Marine Park shall deliver or cause to be
delivered to NewCardio and the NewCardio Shareholders:

      

      
        	 
      	
                (a)

              	
                share
      certificates representing the Acquisition Shares duly registered in the
      names of the holders of shares of NewCardio Common
  Stock;

              

      

      

      
        	 
      	
                (b)

              	
                certified
      copies of such resolutions of the directors of Marine Park as are required
      to be passed to authorize the execution, delivery and implementation of
      this Agreement;

              

      

      

      
        	 
      	
                (c)

              	
                a
      certified copy of a resolution of the directors of Marine Park dated as of
      the Closing Date appointing the nominees of the NewCardio Shareholders set
      forth on Exhibit “C” to the board of directors of Marine
    Park;

              

      

      

      
        	 
      	
                (d)

              	
                resignations
      of all of the officers and directors of Marine Park as of the Closing
      Date;

              

      

      

      
        	 
      	
                (e)

              	
                an
      acknowledgement from Marine Park of the satisfaction of the conditions
      precedent set forth in section 7.1
hereof;

              

      

      

      
        	 
      	
                (f)

              	
                certificate
      of incorporation and good standing certificate of Marine
    Park;

              

      

      

      
        	 
      	
                (g)

              	
                the
      Return to Treasury Agreements, duly executed by Marine Park and Harborview
      Master Fund L.P. and Diverse Trading Ltd., along with all applicable share
      certificates of Marine Park and any other documents required
      thereunder;

              

      

      

      
        	 
      	
                (h)

              	
                the
      Certificate of Designation, duly filed with the Secretary of State of
      Delaware by Marine Park;

              

      

      

      
        	 
      	
                (i)

              	
                a
      legal opinion of counsel to Marine Park, in substantially the form of
      Exhibit “E” attached hereto; and

              

      

      

      
        	 
      	
                (j)

              	
                such
      other documents as NewCardio may reasonably require to give effect to the
      terms and intention of this
Agreement.

              

      

      

      ARTICLE
10

      POST-CLOSING
MATTERS

      

      Forthwith
after the Closing, Marine Park, NewCardio and the NewCardio Shareholders, as the
case may be, agree to use all their best efforts to:

      

      
        	 
      	
                (a)

              	
                file
      a Form 8-K with the Securities and Exchange Commission disclosing the
      terms of this Agreement within 4 days of the Closing which includes the
      audited financial statements of NewCardio as well as pro forma financial
      information of NewCardio and Marine Park as required by Item 310 of
      Regulation SB as promulgated by the Securities and Exchange Commission;
      and

              

      

      

      

      - 28
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                (b)

              	
                change
      the name of Marine Park to such other name as determined by the board of
      directors of Marine Park.

              

      

      

      ARTICLE
11

      GENERAL
PROVISIONS

      

      Arbitration

      

      11.1
  The parties hereto shall attempt to resolve any dispute, controversy,
difference or claim arising out of or relating to this Agreement by negotiation
in good faith. If such good negotiation fails to resolve such dispute,
controversy, difference or claim within fifteen (15) days after any party
delivers to any other party a notice of its intent to submit such matter to
arbitration, then any party to such dispute, controversy, difference or claim
may submit such matter to arbitration in the City of New York, New
York.

      

      Notice

      

      11.2
  Any notice required or permitted to be given by any party will be deemed
to be given when in writing and delivered to the address for notice of the
intended recipient by personal delivery, prepaid single certified or registered
mail, or telecopier. Any notice delivered by mail shall be deemed to have been
received on the fourth business day after and excluding the date of mailing,
except in the event of a disruption in regular postal service in which event
such notice shall be deemed to be delivered on the actual date of receipt. Any
notice delivered personally or by telecopier shall be deemed to have been
received on the actual date of delivery.

      

      Addresses
for Service

      

      11.3
  The address for service of notice of each of the parties hereto is as
follows:

      

      
        	 
      	
                (a)

              	
                Marine
      Park:

              

      

      

      850 Third
Avenue, Suite 1801

      New York,
New York 10022

      Attention:
David Stefansky

      Telephone
no. (646) 218-1400

      Facsimile
no.

      

      With a
copy to:

      

      Anslow
& Jaclin, LLP

      195 Route
9 South, Suite 204

      Manalapan,
New Jersey 07726

      Attn:
Gregg E. Jaclin, Esq.

      Telephone
no. (732) 409-1212

      Facsimile
no. (732) 577-1188

      

      
        	 
      	
                (b)

              	
                NewCardio
      or the NewCardio Shareholders:

              

      

      

      2033
Gateway Plaza, Suite 500

      San Jose,
California 95110

      Attention:

      Telephone
no.

      Facsimile
no.

      

      

      - 29
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      With a
copy to:

      

      Sichenzia
Ross Friedman Ference LLP

      1065
Avenue of the Americas

      New York,
New York 10018

      Attn:
Marc Ross, Esq.

      Phone:
(212) 930-9700

      Telecopier:
(212) 930-9725

      

      Change
of Address

      

      11.4
  Any party may, by notice to the other parties change its address for
notice to some other address in North America and will so change its address for
notice whenever the existing address or notice ceases to be adequate for
delivery by hand. A post office box may not be used as an address for
service.

      

      Further
Assurances

      

      11.5
  Each of the parties will execute and deliver such further and other
documents and do and perform such further and other acts as any other party may
reasonably require to carry out and give effect to the terms and intention of
this Agreement.

      

      Time
of the Essence

      

      11.6
  Time is expressly declared to be the essence of this
Agreement.

      

      Entire
Agreement

      

      11.7
  The provisions contained herein constitute the entire agreement among
NewCardio, the NewCardio Shareholders and Marine Park respecting the subject
matter hereof and supersede all previous communications, representations and
agreements, whether verbal or written, among NewCardio, the NewCardio
Shareholders and Marine Park with respect to the subject matter
hereof.

      

      Enurement

      

      11.8
  This Agreement will enure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators, successors
and permitted assigns.

      

      Assignment

      

      11.9
  This Agreement is not assignable without the prior written consent of the
parties hereto.

      

      Counterparts

      

      11.10
  This Agreement may be executed in counterparts, each of which when
executed by any party will be deemed to be an original and all of which
counterparts will together constitute one and the same Agreement. Delivery of
executed copies of this Agreement by telecopier will constitute proper delivery,
provided that originally executed counterparts are delivered to the parties
within a reasonable time thereafter.

      

      

      - 30
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

       

      Applicable
Law

      

      11.11
  This Agreement shall be enforced, governed by and construed in accordance
with the laws of the State of New York applicable to agreements made and to be
performed entirely within such state, without regard to the principles of
conflict of laws The parties hereto hereby submit to the exclusive jurisdiction
of the United States federal courts located in New York, New York with respect
to any dispute arising under this Agreement, the agreements entered into in
connection herewith or the transactions contemplated hereby or thereby. All
parties irrevocably waive the defense of an inconvenient forum to the
maintenance of such suit or proceeding. All parties further agree that service
of process upon a party mailed by first class mail shall be deemed in every
respect effective service of process upon the party in any such suit or
proceeding. Nothing herein shall affect either party’s right to serve process in
any other manner permitted by law. All parties agree that a final non-appealable
judgment in any such suit or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on such judgment or in any other lawful manner.
The party which does not prevail in any dispute arising under this Agreement
shall be responsible for all fees and expenses, including attorneys’ fees,
incurred by the prevailing party in connection with such dispute.

      

      [Remainder
of page intentionally left blank.]

      

      

      - 31
-

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      

      IN WITNESS
WHEREOF the parties have executed this Agreement effective as of the day
and year first above written.

      

       

      

      
        	MARINE PARK HOLDINGS,
      INC.
	 	 
	
                By:

              	
                /s/
      David Stefansky

              
	 
      	
                David
      Stefansky

              
	 
      	
                President,
      Chief Executive Officer and

              
	 
      	
                Chief
      Financial Officer

              
	 
      	 
      
	
                NEWCARDIO,
      INC.

              
	 
      	 
      
	
                By:

              	
                /s/
      Branislav Vajdic

              
	 
      	
                Branislav Vajdic

              
	 
      	
                President
      and Chief Executive Officer

              

      

       

      [Signature
page to Share Exchange Agreement]

      

      

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      

      Exhibit
A

      

      
        	
                Name

              	 
      	
                NewCardio

                Shares

              	 
      	
                Marine
      Park

                 
      Shares

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

      

      

      

      
        

         

        

      

       

      

       

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Exhibit B.1

      RETURN
TO TREASURY AGREEMENT

      

      THIS AGREEMENT is made as of
the ___ day of December , 2007

       

      BETWEEN:

      

      MARINE PARK HOLDINGS, INC., a
corporation formed pursuant to the laws of the State of Delaware and having an
office for business at 850 Third Avenue, Suite 1801, New York, New York 10022
(the “Company”)

      

      
        	
                 
      

              	
                AND:

              

      

      

      HARBORVIEW MASTER FUND L.P. ,
a British Virgin Islands limited partnership and having an office for business
at 850 Third Avenue, Suite 1801, New York, New York 10022 (the
“Shareholder”).

      

      
        	
                 
      

              	
                WHEREAS:

              

      

      

      A.   The Shareholder is
the registered and beneficial owner of 9,830,600 shares of the Company’s common
stock.

      

      B.   The Company has
entered into a Share Exchange Agreement with NewCardio, Inc., a Delaware
corporation, and certain other parties (the “Merger Agreement”).

      

      C.   As a condition to
the aforementioned Merger Agreement, the Shareholder has agreed to return Nine
Million Three Hundred Twenty Five Thousand (9,325,000) shares of the Company’s
common stock (the “Surrendered Shares”) held by them to the treasury of the
Company for the sole purpose of the Company retiring the Surrendered
Shares.

      

      NOW THEREFORE THIS AGREEMENT
WITNESSETH THAT in consideration of the premises and sum of $1.00 now
paid by the Company to the Shareholder, the receipt and sufficiency whereof is
hereby acknowledged, the parties hereto hereby agree as follows:

      

      Surrender
of Shares

      

      1.  
The Shareholder hereby surrenders to the Company the Surrendered Shares by
delivering to the Company herewith a share certificate or certificates
representing the Shares, duly endorsed for transfer in blank, The Company hereby
acknowledges receipt from the Shareholder of the certificates for the sole
purpose of retiring the Surrendered Shares.

      

      Retirement
of Shares

      

      2.  
The Company agrees, subject to section 3 hereof, to forthwith after the closing
of the Merger Agreement to retire the Surrendered Shares pursuant to §243 of the
Delaware General Corporation Law.

      

      Condition
Precedent

      

      3.  
Notwithstanding any other provision herein, in the event that the transactions
contemplated by the Merger Agreement do not close on or before the deadline set
forth is said Merger Agreement, this Agreement shall terminate and the Company
shall forthwith return to the Shareholder the certificates representing the
Surrendered Shares.

      

       

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

         

      

       

      Representations
and Warranties

      

      4.  
The Shareholder represents and warrants to the Company that it is the owner of
the Surrendered Shares and that it has good and marketable title to the
Surrendered Shares and that the Surrendered Shares are free and clear of all
liens, security interests or pledges of any kind whatsoever.

      

      General

      

      5.  
Each of the parties will execute and deliver such further and other documents
and do and perform such further and other acts as any other party may reasonably
require to carry out and give effect to the terms and intention of this
Agreement.

      

      6.  
Time is expressly declared to be the essence of this Agreement.

      

      7.  
The provisions contained herein constitute the entire agreement among the
Company and the Shareholder respecting the subject matter hereof and supersede
all previous communications, representations and agreements, whether verbal or
written, among the Company and the Shareholder with respect to the subject
matter hereof.

      

      8.  
This Agreement will enure to the benefit of and be binding upon the parties
hereto and their respective heirs, executors, administrators, successors and
permitted assigns.

      

      9.  
This Agreement is not assignable without the prior written consent of the
parties hereto.

      

      10.
  This Agreement may be executed in counterparts, each of which when
executed by any party will be deemed to be an original and all of which
counterparts will together constitute one and the same Agreement. Delivery of
executed copies of this Agreement by telecopier will constitute proper delivery,
provided that originally executed counterparts are delivered to the parties
within a reasonable time thereafter.

      

      IN WITNESS WHEREOF the parties
have executed this Agreement effective as of the day and year first above
written.

      

      
        	
                MARINE
      PARK HOLDINGS, INC.

              
	 
      	 
      
	
                By:

              	
                 

              
	 
      	
                 

              
	 
      	
                 

              
	 
      	
                 

              
	 
      	 
      
	
                SHAREHOLDER:

              
	 
      	 
      
	
                HARBORVIEW
      MASTER FUND L.P.

              
	 
      	 
      
	
                By:

              	 
      

      

       

       

       

      
        

         

        

      

       

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      
Exhibit B.2

      

      RETURN
TO TREASURY AGREEMENT

      

      THIS AGREEMENT is made as of
the ___ day of December , 2007

       

      BETWEEN:

      

      MARINE PARK HOLDINGS, INC., a
corporation formed pursuant to the laws of the State of Delaware and having an
office for business at 850 Third Avenue, Suite 1801, New York, New York 10022
(the “Company”)

      

      
        	
                 
      

              	
                AND:

              

      

      

      DIVERSE TRADING LTD. , a
British Virgin Islands corporation and having an office for business at
_________________________ (the “Shareholder”).

       

      
        	
                 
      

              	
                WHEREAS:

              

      

      

      A.   The Shareholder is
the registered and beneficial owner of 1,000,000 shares of the Company’s common
stock.

      

      B.   The Company has
entered into a Share Exchange Agreement with NewCardio, Inc., a Delaware
corporation, and certain other parties (the “Merger Agreement”).

      

      C.   As a condition to
the aforementioned Merger Agreement, the Shareholder has agreed to return Sixty
Thousand Fifteen (60,015) shares of the Company’s common stock (the “Surrendered
Shares”) held by them to the treasury of the Company for the sole purpose of the
Company retiring the Surrendered Shares.

      

      NOW THEREFORE THIS AGREEMENT
WITNESSETH THAT in consideration of the premises and sum of $1.00 now
paid by the Company to the Shareholder, the receipt and sufficiency whereof is
hereby acknowledged, the parties hereto hereby agree as follows:

      

      Surrender
of Shares

      

      1.  
The Shareholder hereby surrenders to the Company the Surrendered Shares by
delivering to the Company herewith a share certificate or certificates
representing the Shares, duly endorsed for transfer in blank, The Company hereby
acknowledges receipt from the Shareholder of the certificates for the sole
purpose of retiring the Surrendered Shares.

      

      Retirement
of Shares

      

      2.  
The Company agrees, subject to section 3 hereof, to forthwith after the closing
of the Merger Agreement to retire the Surrendered Shares pursuant to §243 of the
Delaware General Corporation Law and to deliver to the Shareholder a balance
Certificate free of restrictive legends. .

      

      Condition
Precedent

      

      3.  
Notwithstanding any other provision herein, in the event that the transactions
contemplated by the Merger Agreement do not close on or before the deadline set
forth is said Merger Agreement, this Agreement shall terminate and the Company
shall forthwith return to the Shareholder the certificates representing the
Surrendered Shares.

      

      

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

        

      

       

      

      Representations
and Warranties

      

      4.  
The Shareholder represents and warrants to the Company that it is the owner of
the Surrendered Shares and that it has good and marketable title to the
Surrendered Shares and that the Surrendered Shares are free and clear of all
liens, security interests or pledges of any kind whatsoever.

      

      General

      

      5.  
Each of the parties will execute and deliver such further and other documents
and do and perform such further and other acts as any other party may reasonably
require to carry out and give effect to the terms and intention of this
Agreement.

      

      6.  
Time is expressly declared to be the essence of this Agreement.

      

      7.  
The provisions contained herein constitute the entire agreement among the
Company and the Shareholder respecting the subject matter hereof and supersede
all previous communications, representations and agreements, whether verbal or
written, among the Company and the Shareholder with respect to the subject
matter hereof.

      

      8.  
This Agreement will enure to the benefit of and be binding upon the parties
hereto and their respective heirs, executors, administrators, successors and
permitted assigns.

      

      9.  
This Agreement is not assignable without the prior written consent of the
parties hereto.

      

      10.   This Agreement may be executed in counterparts, each of which
when executed by any party will be deemed to be an original and all of which
counterparts will together constitute one and the same Agreement. Delivery of
executed copies of this Agreement by telecopier will constitute proper delivery,
provided that originally executed counterparts are delivered to the parties
within a reasonable time thereafter.

      

      IN WITNESS WHEREOF the parties
have executed this Agreement effective as of the day and year first above
written.

       

      
        	
                MARINE
      PARK HOLDINGS, INC.

              
	 
      
	
                By:

              	
                 

              	 
      
	
                           
      

              
	
                         

              
	
                          

              
	 
      
	
                SHAREHOLDER:

              
	 
      
	
                DIVERSE
      TRADING LTD.

              
	 
      
	
                By:

              	 
      	 
      

      

      

      

      - 2
-

      
        

         

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
C

    

    

    Director
Nominees

    

    
      	
              ·  
        

            	
              Branislav
      Vajdic

            

    

    
      	
              ·  
       

            	
              Robert
      Blair – Chairman of the Board

            

    

    

    Officer
Nominees

    

    
      	
              ·  
       

            	
              Branislav
      Vajdic - President, Chief Executive Officer and
  Secretary

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
D

     

    
       

      
 

      MARINE
PARK HOLDINGS, INC.

      

      CERTIFICATE
OF DESIGNATION OF PREFERENCES,

      RIGHTS
AND LIMITATIONS

      OF

      SERIES
A 10% CONVERTIBLE PREFERRED STOCK

      

      PURSUANT
TO SECTION 151 OF THE

      DELAWARE
GENERAL CORPORATION LAW

      

      The
undersigned, __________ and ____________, do hereby certify that:

      

      1. They
are the President and Secretary, respectively, of Marine Park Holdings, Inc., a
Delaware corporation (the “Corporation”).

      

      2. The
Corporation is authorized to issue 1,000,000 shares of preferred stock, none of
which have been issued.

      

      3. The
following resolutions were duly adopted by the board of directors of the
Corporation (the “Board of
Directors”):

      

      WHEREAS,
the certificate of incorporation of the Corporation provides for a class of its
authorized stock known as preferred stock, comprised of 1,000,000 shares, $0.001
par value per share, issuable from time to time in one or more
series;

      

      WHEREAS,
the Board of Directors is authorized to fix the dividend rights, dividend rate,
voting rights, conversion rights, rights and terms of redemption and liquidation
preferences of any wholly unissued series of preferred stock and the number of
shares constituting any series and the designation thereof, of any of them;
and

      

      WHEREAS,
it is the desire of the Board of Directors, pursuant to its authority as
aforesaid, to fix the rights, preferences, restrictions and other matters
relating to a series of the preferred stock, which shall consist of, except as
otherwise set forth in the Purchase Agreement, up to 12,000 shares of the
preferred stock which the Corporation has the authority to issue, as
follows:

      

      NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for
the issuance of a series of preferred stock for cash or exchange of other
securities, rights or property and does hereby fix and determine the rights,
preferences, restrictions and other matters relating to such series of preferred
stock as follows:

      

      1

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      TERMS
OF PREFERRED STOCK

      

      Section
1.  Definitions. Capitalized terms used and not
otherwise defined herein that are defined in the Purchase Agreement shall have
the meanings given such terms in the Purchase Agreement. For the purposes
hereof, the following terms shall have the following
meanings:

      

      “Alternate
Consideration” shall have the meaning set forth in Section
7(e).

       

      “Bankruptcy Event”
means any of the following events: (a) the Corporation or any Significant
Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) thereof
commences a case or other proceeding under any bankruptcy, reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or
liquidation or similar law of any jurisdiction relating to the Corporation or
any Significant Subsidiary thereof; (b) there is commenced against the
Corporation or any Significant Subsidiary thereof any such case or proceeding
that is not dismissed within 60 days after commencement; (c) the Corporation or
any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any
order of relief or other order approving any such case or proceeding is entered;
(d) the Corporation or any Significant Subsidiary thereof suffers any
appointment of any custodian or the like for it or any substantial part of its
property that is not discharged or stayed within 60 calendar days after such
appointment; (e) the Corporation or any Significant Subsidiary thereof makes a
general assignment for the benefit of creditors; (f) the Corporation or any
Significant Subsidiary thereof calls a meeting of its creditors with a view to
arranging a composition, adjustment or restructuring of its debts; or (g) the
Corporation or any Significant Subsidiary thereof, by any act or failure
to act, expressly indicates its consent to, approval of or acquiescence in any
of the foregoing or takes any corporate or other action for the purpose of
effecting any of the foregoing.

      

      “Base Conversion
Price” shall have the meaning set forth in Section 7(b).

      

      “Business Day” means
any day except Saturday, Sunday, any day which shall be a federal legal holiday
in the United States or any day on which banking institutions in the State of
New York are authorized or required by law or other governmental action to
close.

      

      “Buy-In” shall have
the meaning set forth in Section 6(e)(iii).

      

      2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      “Change of Control
Transaction” means the occurrence after the date of the Merger (as
defined in the Purchase Agreement) and after giving effect to the issuance of
the Preferred Stock as provided in the Purchase Agreement of any of (i) an
acquisition after the date hereof by an individual, legal entity or “group” (as
described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective
control (whether through legal or beneficial ownership of capital stock of the
Corporation, by contract or otherwise) of in excess of 33% of the voting
securities of the Corporation (other than by means of conversion or exercise of
Preferred Stock and the Securities issued together with the Preferred Stock), or
(ii) the Corporation merges into or consolidates with any other Person, or any
Person merges into or consolidates with the Corporation and, after giving effect
to such transaction, the stockholders of the Corporation immediately prior to
such transaction own less than 66% of the aggregate voting power of the
Corporation or the successor entity of such transaction, or (iii) the
Corporation sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Corporation immediately prior to such
transaction own less than 66% of the aggregate voting power of the acquiring
entity immediately after the transaction, or (iv) a replacement at one time or
within a one year period of more than one-half of the members of the
Corporation’s board of directors which is not approved by a majority of those
individuals who are members of the board of directors on the date hereof (or by
those individuals who are serving as members of the board of directors on any
date whose nomination to the board of directors was approved by a majority of
the members of the board of directors who are members on the date hereof), or
(v) the execution by the Corporation of an agreement to which the Corporation is
a party or by which it is bound, providing for any of the events set forth in
clauses (i) through (iv) above.

      

      “Closing Date” means
the Trading Day when all of the Transaction Documents have been executed and
delivered by the applicable parties thereto and all conditions precedent to (i)
each Holder’s obligations to pay the Subscription Amount and (ii) the
Corporation’s obligations to deliver the Securities have been satisfied or
waived.

      

      “Commission” means the
Securities and Exchange Commission.

      

      “Common Stock” means
the Corporation’s common stock, par value $0.001 per share, and stock of any
other class of securities into which such securities may hereafter be
reclassified or changed into.

      

      “Common Stock
Equivalents” means any securities of the Corporation or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or
exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

      

      “Conversion Amount”
means the sum of the Stated Value at issue.

      

      “Conversion Date”
shall have the meaning set forth in Section 6(a).

      

      “Conversion Price”
shall have the meaning set forth in Section 6(b).

      

      “Conversion Shares”
means, collectively, the shares of Common Stock issuable upon conversion of the
shares of Preferred Stock in accordance with the terms hereof.

      

      3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      “Conversion Shares
Registration Statement” means a registration statement that registers the
resale of all Conversion Shares of the Holders, who shall be named as a “selling
stockholder” therein and meets the requirements of the Registration Rights
Agreement.

       

      “Dilutive Issuance”
shall have the meaning set forth in Section 7(b).

       

      “Dilutive Issuance
Notice” shall have the meaning set forth in Section 7(b).

      

      “Dividend Payment
Date” shall have the meaning set forth in Section 3(a).

       

      “Dividend Share
Amount” shall have the meaning set forth in Section 3(a).

      

      “Effective Date” means
the date that the Conversion Shares Registration Statement is declared effective
by the Commission.

      

      “Equity Conditions”
means, during the period in question, (i) the Corporation shall have duly
honored all conversions scheduled to occur or occurring by virtue of one or more
Notices of Conversion of the applicable Holder on or prior to the dates so
requested or required, if any, (ii) the Corporation shall have paid all
liquidated damages and other amounts owing to the applicable Holder in respect
of the Preferred Stock, (iii) there is an effective Conversion Shares
Registration Statement pursuant to which the Holders are permitted to utilize
the prospectus thereunder to resell all of the shares of Common Stock issuable
pursuant to conversion of the Preferred Stock (and the Corporation believes, in
good faith, that such effectiveness will continue uninterrupted for the
foreseeable future), (iv) the Common Stock is trading on a Trading Market and
all of the shares issuable upon conversion of the Preferred Stock are listed for
trading on such Trading Market (and the Corporation believes, in good faith,
that trading of the Common Stock on a Trading Market will continue uninterrupted
for the foreseeable future), (v) there is a sufficient number of authorized, but
unissued and otherwise unreserved, shares of Common Stock for the issuance of
all of the shares of Common Stock issuable pursuant to the Transaction
Documents, (vi) there is no existing Triggering Event or no existing event
which, with the passage of time or the giving of notice, would constitute a
Triggering Event, (vii) the issuance of the shares in question (or, in the case
of a Forced Conversion, the shares issuable upon conversion in full of the
Forced Conversion amount) to the applicable Holder would not violate the
limitations set forth in Section 6(c), (viii) there has been no public
announcement of a pending or proposed Fundamental Transaction or Change of
Control Transaction that has not been consummated, and (ix) the applicable
Holder is not in possession of any information provided by the Company that
constitutes, or may constitute, material non-public information.

      

      “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

      

      4

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      “Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees,
officers or directors of the Corporation pursuant to the Employee Stock Option
Plan (as defined in the Purchase Agreement), (b) securities upon the exercise of
or conversion of any securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock
issued and outstanding on the date of the Purchase Agreement, provided that such
securities have not been amended since the date of the Purchase Agreement to
increase the number of such securities or to decrease the exercise or conversion
price of any such securities, and (c) securities issued pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors,
provided that any such issuance shall only be to a Person which is, itself or
through its subsidiaries, an operating company in a business synergistic with
the business of the Corporation and shall provide to the Corporation additional
benefits in addition to the investment of funds, but shall not include a
transaction in which the Corporation is issuing securities primarily for the
purpose of raising capital or to an entity whose primary business is investing
in securities.

       

      “Forced Conversion”
means a conversion of the Preferred Stock into Common Stock by the Company in
accordance with Section 8.

       

      “Forced Conversion
Amount” means the sum of (i) the aggregate Stated Value then outstanding,
(ii) accrued but unpaid dividends and (iii) all liquidated damages and other
amounts due in respect of the Preferred Stock.

       

      “Forced Conversion
Date” shall have the meaning set forth in Section 8.

       

      “Forced Conversion
Notice” shall have the meaning set forth in Section 8.

       

      “Forced Conversion Notice
Date” shall have the meaning set forth in Section 8.

       

      “Fundamental
Transaction” shall have the meaning set forth in Section
7(e).

       

      “Holder” shall have
the meaning given such term in Section 2.

      

      “Junior Securities”
means the Common Stock and all other Common Stock Equivalents of the Corporation
other than those securities which are explicitly senior or pari passu to the
Preferred Stock in dividend rights or liquidation preference.

      

      “Liquidation” shall
have the meaning set forth in Section 5.

      

      “New York Courts”
shall have the meaning set forth in Section 11(d).

      

      “Notice of Conversion”
shall have the meaning set forth in Section 6(a).

      

      “Original Issue Date”
means the date of the first issuance of any shares of the Preferred Stock
regardless of the number of transfers of any particular shares of Preferred
Stock and regardless of the number of certificates which may be issued to
evidence such Preferred Stock.

      

      5

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      “Permitted
Indebtedness” means (a) the Indebtedness existing on the Original Issue
Date and set forth on Schedule 3.1(aa)
attached to the Purchase Agreement and (b) lease obligations and purchase money
indebtedness of up to $100,000, in the aggregate, incurred in connection with
the acquisition of capital assets and lease obligations with respect to newly
acquired or leased assets.

      

      “Permitted Lien” means
the individual and collective reference to the following: (a) Liens for taxes,
assessments and other governmental charges or levies not yet due or Liens for
taxes, assessments and other governmental charges or levies being contested in
good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of the Corporation) have been established
in accordance with GAAP; (b) Liens imposed by law which were incurred in the
ordinary course of the Corporation’s business, such as carriers’, warehousemen’s
and mechanics’ Liens, statutory landlords’ Liens, and other similar Liens
arising in the ordinary course of the Corporation’s business, and which (x) do
not individually or in the aggregate materially detract from the value of such
property or assets or materially impair the use thereof in the operation of the
business of the Corporation and its consolidated Subsidiaries or (y) which are
being contested in good faith by appropriate proceedings, which proceedings have
the effect of preventing for the foreseeable future the forfeiture or sale of
the property or asset subject to such Lien; and (c) Liens incurred in connection
with Permitted Indebtedness under clause (b) thereunder, provided that such
Liens are not secured by assets of the Corporation or its Subsidiaries other
than the assets so acquired or leased.

       

      “Preferred Stock”
shall have the meaning set forth in Section 2.

      

      “Purchase Agreement”
means the Securities Purchase Agreement, dated as of the Original Issue Date, to
which the Corporation and the original Holders are parties, as amended, modified
or supplemented from time to time in accordance with its terms.

      

      “Registration Rights
Agreement” means the Registration Rights Agreement, dated as of the date
of the Purchase Agreement, to which the Corporation and the original Holder are
parties, as amended, modified or supplemented from time to time in accordance
with its terms.

      

      “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

      

      “Share Delivery Date”
shall have the meaning set forth in Section 6(e).

      

      “Stated Value” shall
have the meaning set forth in Section 2, as the same may be increased pursuant
to Section 3.

      

      6

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      “Subscription Amount”
means, as to each Purchaser, the amount in United States Dollars and in
immediately available funds to be paid for the Preferred Stock purchased
pursuant to the Purchase Agreement as specified below such Purchaser’s name on
the signature page of the Purchase Agreement and next to the heading
“Subscription Amount.”

      

      “Subsidiary” shall
have the meaning set forth in the Purchase Agreement.

      

      “Trading Day” means a
day on which the New York Stock Exchange is open for business.

      

      “Trading Market” means
the following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the American Stock Exchange, the Nasdaq
Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange or the OTC Bulletin Board.

      

      “Transaction
Documents” shall have the meaning set forth in the Purchase
Agreement.

      

      “Triggering Event”
shall have the meaning set forth in Section 9(a).

      “Triggering Redemption
Amount” means, for each share of Preferred Stock, the sum of (i) the
greater of (A) 120% of the Stated Value and (B) the product of (a) the VWAP on
the Trading Day immediately preceding the date of the Triggering Event and (b)
the Stated Value divided by the then Conversion Price, (ii) all accrued but
unpaid dividends thereon and (iii) all liquidated damages and other costs,
expenses or amounts due in respect of the Preferred Stock.

      

      “Triggering Redemption
Payment Date” shall have the meaning set forth in Section
9(b).

      

      “VWAP” means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed
or quoted for trading as reported by Bloomberg Financial L.P. (based on a
Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
time)); (b) if the OTC Bulletin Board is not a Trading Market, the volume
weighted average price of the Common Stock for such date (or the nearest
preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then
quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
are then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a
similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of the Common Stock so reported; or (d) in
all other cases, the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the Holders and reasonably
acceptable to the Corporation, the fees and expenses of which shall be paid by
the Corporation.

      

      7

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
2.  Designation,
Amount and Par Value. The
series of preferred stock shall be designated as its Series A 10% Convertible
Preferred Stock (the “Preferred
Stock”) and the number of
shares so designated shall be up to 12,000 (which shall not be subject to
increase without the written consent of all of the holders of the Preferred
Stock (each, a “Holder” and collectively, the “Holders”)). Each share of Preferred Stock
shall have a par value of $0.001 per share and a stated value equal to $1,000,
subject to increase set forth in Section 3(a) below (the “Stated
Value”).

       

      Section
3.  Dividends.

      

      a) Dividends in Cash or in
Kind. Holders shall be entitled to receive, and the Corporation shall
pay, cumulative dividends at the rate per share (as a percentage of the Stated
Value per share) of 10% per annum (subject to increase pursuant to Section
9(b)), payable quarterly
on January 1, April 1, July 1 and October 1, beginning on the first such date
after the Original Issue Date and on each Conversion Date (with respect only to
Preferred Stock being converted) (each such date, a “Dividend Payment
Date”) (if any Dividend Payment Date is not a Trading Day, the applicable
payment shall be due on the next succeeding Trading Day) in cash, or at the
Corporation’s option, in duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock as set forth in this Section 3(a), or a
combination thereof (the amount to be paid in shares of Common Stock, the “Dividend Share
Amount”). The form of dividend payments to each Holder shall be
determined in the following order of priority: (i) if funds are legally
available for the payment of dividends and the Equity Conditions have not been
met during the 20 consecutive Trading Days immediately prior to the applicable
Dividend Payment Date, in cash only; (ii) if funds are legally available for the
payment of dividends and the Equity Conditions have been met during the 20
consecutive Trading Days immediately prior to the applicable Dividend Payment
Date, at the sole election of the Corporation, in cash or shares of Common Stock
which shall be valued solely for such purpose (A) if not then effectively
registered for resale by the Holder, at 90% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date and (B) if then effectively registered for resale
by the Holder, at 100% of the average of the VWAPs for the 20 consecutive
Trading Days ending on the Trading Day that is immediately prior to the Dividend
Payment Date; (iii) if funds are not legally available for the payment of
dividends and the Equity Conditions have been met during the 20 consecutive
Trading Days immediately prior to the applicable Dividend Payment Date, in
shares of Common Stock which shall be valued solely for such purpose (A) if
not then effectively
registered for resale by the Holder, at 90% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date and (B) if then effectively registered for resale
by the Holder, at 100% of the average of the VWAPs for the 20 consecutive
Trading Days ending on the Trading Day that is immediately prior to the Dividend
Payment Date; and (iv) if funds are not legally available for the payment of
dividends and the Equity Conditions have not been met during the 20 consecutive
Trading Days immediately prior to the applicable Dividend Payment Date, then, at
the election of such Holder, (1) such dividends shall accrue to the next
Dividend Payment Date, (2) shall be accreted to, and increase, the outstanding
Stated Value, or (3) in shares of Common Stock which shall be valued solely for
such purpose (A) if not
then effectively registered for resale by the Holder, at 90% of the average of
the VWAPs for the 20 consecutive Trading Days ending on the Trading Day that is
immediately prior to the Dividend Payment Date and (B) if then effectively
registered for resale by the Holder, at 100% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date. The Holders shall have the same rights and
remedies with respect to the delivery of any such shares as if such shares were
being issued pursuant to Section 6. On the Closing Date, after giving effect to
the receipt by the Company of the proceeds from the sale of Preferred Stock
under the Purchase Agreement, the Corporation shall have notified the Holders
whether or not it may legally pay cash dividends as of the Closing Date. The
Corporation shall promptly notify the Holders at any time the Corporation shall
become able or unable, as the case may be, to legally pay cash dividends. If at
any time the Corporation has the right to pay dividends in cash or Common Stock,
the Corporation must provide the Holders with at least 20 Trading Days’ notice
of its election to pay a regularly scheduled dividend in Common Stock and
whether or not a registration statement
relating thereto is then effective (the Corporation may indicate in such notice
that the election contained in such notice shall continue for later periods
until revised by a subsequent notice). Dividends on the Preferred Stock shall be
calculated on the basis of a 360-day year, consisting of twelve 30 calendar day
periods, shall accrue daily commencing on the Original Issue Date, and shall be
deemed to accrue from such date whether or not earned or declared and whether or
not there are profits, surplus or other funds of the Corporation legally
available for the payment of dividends. Except as otherwise provided herein, if
at any time the Corporation pays dividends partially in cash and partially in
shares, then such payment shall be distributed ratably among the Holders based
upon the number of shares of Preferred Stock held by each Holder on such
Dividend Payment Date. Any dividends, whether paid in cash or shares of Common
Stock, that are not paid within three Trading Days following a Dividend Payment
Date shall continue to accrue and shall entail a late fee, which must be paid in
cash, at the rate of 18% per annum or the lesser rate permitted by applicable
law (such fees to accrue daily, from the Dividend Payment Date through and
including the date of payment). If at any time the Corporation delivers a notice
to the Holders of its election to pay the dividends in shares of Common Stock,
the Corporation shall timely file a prospectus supplement pursuant to Rule 424
disclosing such election.

      

      8

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      b) So long as any Preferred Stock shall
remain outstanding, neither the Corporation nor any Subsidiary thereof shall
redeem, purchase or otherwise acquire directly or indirectly any Junior
Securities except as expressly permitted by Section 9(a)(ix). So long as any
Preferred Stock shall remain outstanding, neither the Corporation nor any
Subsidiary thereof shall directly or indirectly pay or declare any dividend or
make any distribution upon (other than a dividend or distribution described in
Section 6 or dividends due and paid in the ordinary course on preferred stock of
the Corporation at such times when the Corporation is in compliance with its
payment and other obligations hereunder), nor shall any distribution be made in
respect of, any Junior Securities as long as any dividends due on the Preferred
Stock remain unpaid, nor shall any monies be set aside for or applied to the
purchase or redemption (through a sinking fund or otherwise) of any Junior
Securities or shares pari passu with the Preferred
Stock.

      

      9

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      c) The Corporation acknowledges and agrees
that the capital of the Corporation (as such term is used in Section 154 of the
Delaware General Corporation Law) in respect of the Preferred Stock and any
future issuances of the Corporation’s capital stock shall be equal to the
aggregate par value of such Preferred Stock or capital stock, as the case may
be, and that, on or after the date of the Purchase Agreement, it shall not
increase the capital of the Corporation with respect to any shares of the
Corporation’s capital stock issued and outstanding on such date. The Corporation
also acknowledges and agrees that it shall not create any special reserves under
Section 171 of the Delaware General Corporation Law without the prior written
consent of each Holder.

      

      Section
4.  Voting
Rights. Except as
otherwise provided herein or as otherwise required by law, the Preferred Stock
shall have no voting rights. However, as long as any shares of Preferred Stock
are outstanding, the Corporation shall not, without the affirmative vote of the
Holders of a majority of the then outstanding shares of the Preferred Stock, (a)
alter or change adversely the powers, preferences or rights given to the
Preferred Stock or alter or amend this Certificate of Designation, (b) authorize
or create any class of stock ranking as to dividends, redemption or distribution
of assets upon a Liquidation (as defined in Section 5) senior to or otherwise
pari passu with the Preferred Stock, (c) amend
its certificate of incorporation or other charter documents in any manner that
adversely affects any rights of the Holders, (d) increase the number of
authorized shares of Preferred Stock, or (e) enter into any agreement with
respect to any of the foregoing.

       

      Section
5.  Liquidation. Upon any liquidation, dissolution or
winding-up of the Corporation, whether voluntary or involuntary (a “Liquidation”), the Holders shall be entitled to
receive out of the assets, whether capital or surplus, of the Corporation an
amount equal to 120% of the Stated Value, plus any accrued and unpaid dividends
thereon and any other fees or liquidated damages owing thereon, for each share
of Preferred Stock before any distribution or payment shall be made to the
holders of any Junior Securities, and if the assets of the Corporation shall be
insufficient to pay in full such amounts, then the entire assets to be
distributed to the Holders shall be ratably distributed among the Holders in
accordance with the respective amounts that would be payable on such shares if
all amounts payable thereon were paid in full. A Fundamental Transaction or
Change of Control Transaction shall not be deemed a Liquidation. The Corporation
shall mail written notice of any such Liquidation, not less than 45 days prior
to the payment date stated therein, to each Holder.

      

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      Section
6.  Conversion.

      

      a) Conversions at Option of
Holder. Each share of Preferred Stock shall be convertible, at any time
and from time to time from and after the Original Issue Date at the option of
the Holder thereof, into that number of shares of Common Stock (subject to the
limitations set forth in Section 6(c)) determined by dividing the Stated Value
of such share of Preferred Stock by the Conversion Price. Holders shall effect
conversions by providing the Corporation with the form of conversion notice
attached hereto as Annex A (a “Notice of
Conversion”). Each Notice of
Conversion shall specify the number of shares of Preferred Stock to be
converted, the number of shares of Preferred Stock owned prior to the conversion
at issue, the number of shares of Preferred Stock owned subsequent to the
conversion at issue and the date on which such conversion is to be effected,
which date may not be prior to the date the applicable Holder delivers by
facsimile such Notice of Conversion to the Corporation (such date, the “Conversion Date”). If
no Conversion Date is specified in a Notice of Conversion, the Conversion Date
shall be the date that such Notice of Conversion to the Corporation is deemed
delivered hereunder. The calculations and entries set forth in the Notice of
Conversion shall control in the absence of manifest or mathematical error. To
effect conversions of shares of Preferred Stock, a Holder shall not be required
to surrender the certificate(s) representing such shares of Preferred Stock to
the Corporation unless all of the shares of Preferred Stock represented thereby
are so converted, in which case such Holder shall deliver the certificate
representing such shares of Preferred Stock promptly following the Conversion
Date at issue. Shares of Preferred Stock converted into Common Stock or redeemed
in accordance with the terms hereof shall be canceled and shall not be
reissued.

      

      b) Conversion
Price. The conversion
price for the Preferred Stock shall equal $0.95, subject to adjustment herein (the
“Conversion
Price”).

      

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      c) Beneficial
Ownership Limitation. The Corporation shall not effect any
conversion of the Preferred Stock, and a Holder shall not have the right to
convert any portion of the Preferred Stock, to the extent that, after giving
effect to the conversion set forth on the applicable Notice of Conversion, such
Holder (together with such Holder’s Affiliates, and any other person or entity
acting as a group together with such Holder or any of such Holder’s Affiliates)
would beneficially own in excess of the Beneficial Ownership Limitation (as
defined below).  For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by such Holder and its Affiliates
shall include the number of shares of Common Stock issuable upon conversion of
the Preferred Stock with respect to which such determination is being made, but
shall exclude the number of shares of Common Stock which are issuable upon (A)
conversion of the remaining, unconverted Stated Value of Preferred Stock
beneficially owned by such Holder or any of its Affiliates and (B) exercise or
conversion of the unexercised or unconverted portion of any other securities of
the Corporation subject to a limitation on conversion or exercise analogous to
the limitation contained herein (including the Warrants) beneficially owned by
such Holder or any of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 6(c), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. To the extent that the limitation
contained in this Section 6(c) applies, the determination of whether the
Preferred Stock is convertible (in relation to other securities owned by such
Holder together with any Affiliates) and of how many shares of Preferred Stock
are convertible shall be in the sole discretion of such Holder, and the
submission of a Notice of Conversion shall be deemed to be such Holder’s
determination of whether the shares of Preferred Stock may be converted (in
relation to other securities owned by such Holder together with any Affiliates)
and how many shares of the Preferred Stock are convertible, in each case subject
to the Beneficial Ownership Limitation. To ensure compliance with this
restriction, each Holder will be deemed to represent to the Corporation each
time it delivers a Notice of Conversion that such Notice of Conversion has not
violated the restrictions set forth in this paragraph and the Corporation shall
have no obligation to verify or confirm the accuracy of such determination. In
addition, a determination as to any group status as contemplated above shall be
determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. For purposes of this Section 6(c), in
determining the number of outstanding shares of Common Stock, a Holder may rely
on the number of outstanding shares of Common Stock as stated in the most recent
of the following: (A) the Corporation’s most recent periodic or annual filing
with the Securitites and Exchange Commission, as the case may be, (B) a more
recent public announcement by the Corporation or (C) a more recent notice by the
Corporation or the Corporation’s transfer agent setting forth the number of
shares of Common Stock outstanding.  Upon the written or oral request of a
Holder, the Corporation shall within two Trading Days confirm orally and in
writing to such Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of
securities of the Corporation, including the Preferred Stock, by such Holder or
its Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99%
of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon conversion of
Preferred Stock held by the applicable Holder. A Holder, upon not less than 61
days’ prior notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 6(c) applicable to its Preferred
Stock. Any such increase or decrease will not be effective until the
61st day after such notice is delivered to
the Company and shall only apply to such Holder and no other Holder. The
provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 6(c) to
correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply
to a successor holder of Preferred Stock.

      

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      d) [RESERVED].

      

      e) Mechanics of
Conversion

      i. Delivery of
Certificate Upon Conversion. Not later than three Trading Days
after each Conversion Date (the “Share
Delivery Date”), the
Corporation shall deliver, or cause to be delivered, to the converting Holder
(A) a certificate or certificates which, on or after the Effective Date, shall
be free of restrictive legends and trading restrictions (other than those which
may then be required by the Purchase Agreement) representing the number of
Conversion Shares being acquired upon the conversion of shares of Preferred
Stock, and (B) a bank check in the amount of accrued and unpaid dividends (if
the Corporation has elected or is required to pay accrued dividends in cash). On
or after the Effective Date, the Corporation shall, upon request of such Holder,
use its best efforts to deliver any certificate or certificates required to be
delivered by the Corporation under this Section 6 electronically through the
Depository Trust Company or another established clearing corporation performing
similar functions. If in the case of any Notice of Conversion such certificate
or certificates are not delivered to or as directed by the applicable Holder by
the third Trading Day after the Conversion Date, the applicable Holder shall be
entitled to elect to rescind such Conversion Notice by written notice to the
Corporation at any time on or before its receipt of such certificate or
certificates, in which event the Corporation shall promptly return to such
Holder any original Preferred Stock certificate delivered to the Corporation and
such Holder shall promptly return to the Corporation any Common Stock
certificates representing the shares of Preferred Stock unsuccessfully tendered
for conversion to the Corporation.

      

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      ii. Obligation
Absolute; Partial Liquidated Damages. The Corporation’s obligation to issue
and deliver the Conversion Shares upon conversion of Preferred Stock in
accordance with the terms hereof are absolute and unconditional, irrespective of
any action or inaction by a Holder to enforce the same, any waiver or consent
with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by such
Holder or any other Person of any obligation to the Corporation or any violation
or alleged violation of law by such Holder or any other person, and irrespective
of any other circumstance which might otherwise limit such obligation of the
Corporation to such Holder in connection with the issuance of such Conversion
Shares; provided, however, that such delivery shall not operate
as a waiver by the Corporation of any such action that the Corporation may have
against such Holder. In the event a Holder shall elect to convert any or all of
the Stated Value of its Preferred Stock, the Corporation may not refuse
conversion based on any claim that such Holder or any one associated or
affiliated with such Holder has been engaged in any violation of law, agreement
or for any other reason, unless an injunction from a court, on notice to Holder,
restraining and/or enjoining conversion of all or part of the Preferred Stock of
such Holder shall have been sought and obtained, and the Corporation posts a
surety bond for the benefit of such Holder in the amount of 150% of the Stated
Value of Preferred Stock which is subject to the injunction, which bond shall
remain in effect until the completion of arbitration/litigation of the
underlying dispute and the proceeds of which shall be payable to such Holder to
the extent it obtains judgment. In the absence of such injunction, the
Corporation shall issue Conversion Shares and, if applicable, cash, upon a
properly noticed conversion. If the Corporation fails to deliver to a Holder
such certificate or certificates pursuant to Section 6(e)(i) on the second
Trading Day after the Share Delivery Date applicable to such conversion, the
Corporation shall pay to such Holder, in cash, as liquidated damages and not as
a penalty, for each $5,000 of Stated Value of Preferred Stock being converted,
$50 per Trading Day (increasing to $100 per Trading Day on the third Trading Day
and increasing to $200 per Trading Day on the sixth Trading Day after such
damages begin to accrue) for each Trading Day after such second Trading Day
after the Share Delivery Date until such certificates are delivered. Nothing
herein shall limit a Holder’s right to pursue actual damages or declare a
Triggering Event pursuant to Section 9 for the Corporation’s failure to deliver
Conversion Shares within the period specified herein and such Holder shall have
the right to pursue all remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief. The Exercise of any such rights shall not prohibit a Holder
from seeking to enforce damages pursuant to any other Section hereof or under
applicable law.

      

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      iii. Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Conversion. If the
Corporation fails to deliver to a Holder the applicable certificate or
certificates by the Share Delivery Date pursuant to Section 6(e)(i), and if
after such Share Delivery Date such Holder is required by its brokerage firm to
purchase (in an open market transaction or otherwise), or the Holder’s brokerage
firm purchases, shares of Common Stock to deliver in satisfaction of a sale by
such Holder of the Conversion Shares which such Holder was entitled to receive
upon the conversion relating to such Share Delivery Date (a “Buy-In”), then the
Corporation shall (A) pay in cash to such Holder (in addition to any other
remedies available to or elected by such Holder) the amount by which (x) such
Holder’s total purchase price (including any brokerage commissions) for the
shares of Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that such Holder was entitled to receive from
the conversion at issue multiplied by (2) the actual sale price at which the
sell order giving rise to such purchase obligation was executed (including any
brokerage commissions) and (B) at the option of such Holder, either reissue (if
surrendered) the shares of Preferred Stock equal to the number of shares of
Preferred Stock submitted for conversion or deliver to such Holder the number of
shares of Common Stock that would have been issued if the Corporation had timely
complied with its delivery requirements under Section 6(e)(i). For example, if a
Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to an attempted conversion of shares of Preferred
Stock with respect to which the actual sale price (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000
under clause (A) of the immediately preceding sentence, the Corporation shall be
required to pay such Holder $1,000. The Holder shall provide the Corporation
written notice indicating the amounts payable
to such Holder in respect of the Buy-In and, upon request of the Corporation,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Corporation’s failure to timely deliver
certificates representing shares of Common Stock upon conversion of the shares
of Preferred Stock as required pursuant to the terms hereof.

      

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      iv. Reservation
of Shares Issuable Upon Conversion. The Corporation covenants that it
will at all times reserve and keep available out of its authorized and unissued
shares of Common Stock for the sole purpose of issuance upon conversion of the
Preferred Stock and payment of dividends on the Preferred Stock, each as herein
provided, free from preemptive rights or any other actual contingent purchase
rights of Persons other than the Holders of the Preferred Stock, not less than
such aggregate number of shares of the Common Stock as shall (subject to the
terms and conditions in the Purchase Agreement) be issuable (taking into account
the adjustments of Section 7) upon the conversion of all outstanding shares of
Preferred Stock and payment of dividends hereunder. The Corporation covenants
that all shares of Common Stock that shall be so issuable shall, upon issue, be
duly authorized, validly issued, fully paid and nonassessable and, if the
Conversion Shares Registration Statement is then effective under the Securities
Act, shall be registered for public sale in accordance with such Conversion
Shares Registration Statement.

      

      v. Fractional
Shares. No fractional
shares or scrip representing fractional shares shall be issued upon the
conversion of the Preferred Stock. As to any fraction of a share which a Holder
would otherwise be entitled to purchase upon such conversion, the Corporation
shall at its election, either pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Conversion Price
or round up to the next whole share.

      

      vi. Transfer
Taxes. The issuance of
certificates for shares of the Common Stock on conversion of this Preferred
Stock shall be made without charge to any Holder for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such
certificates, provided that the Corporation shall not be required to pay any tax
that may be payable in respect of any transfer involved in the issuance and
delivery of any such certificate upon conversion in a name other than that of
the Holders of such shares of Preferred Stock and the Corporation shall not be
required to issue or deliver such certificates unless or until the Person or
Persons requesting the issuance thereof shall have paid to the Corporation the
amount of such tax or shall have established to the satisfaction of the
Corporation that such tax has been paid.

      

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      Section
7.  Certain
Adjustments.

      

      a) Stock
Dividends and Stock Splits. If the Corporation, at any time while
this Preferred Stock is outstanding: (A) pays a stock dividend or otherwise
makes a distribution or distributions payable in shares of Common Stock on
shares of Common Stock or any other Common Stock Equivalents (which, for
avoidance of doubt, shall not include any shares of Common Stock issued by the
Corporation upon conversion of, or payment of a dividend on, this Preferred
Stock); (B) subdivides outstanding shares of Common Stock into a larger number
of shares; (C) combines (including by way of a reverse stock split) outstanding
shares of Common Stock into a smaller number of shares; or (D) issues, in the
event of a reclassification of shares of the Common Stock, any shares of capital
stock of the Corporation, then the Conversion Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding any treasury shares of the Corporation) outstanding immediately
before such event and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event. Any adjustment made
pursuant to this Section 7(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

       

      b) Subsequent Equity
Sales. If, at any time while this Preferred Stock is outstanding, the
Corporation or any Subsidiary sells or grants any option to purchase or sells or
grants any right to reprice its securities, or otherwise disposes of or issues
(or announces any sale, grant or any option to purchase or other disposition)
any Common Stock or Common Stock Equivalents entitling any Person to acquire
shares of Common Stock at an effective price per share that is lower than the
then Conversion Price (such lower price, the “Base Conversion
Price” and such issuances collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share that is lower than the Conversion Price, such issuance shall be
deemed to have occurred for less than the Conversion Price on such date of the
Dilutive Issuance), then (A) as to Dilutive Issuances that occur on or before
the two year anniversary of the Original Issue Date, the Conversion Price shall
be reduced to equal the Base Conversion Price and (B) as to Dilutive Issuances
that occur after the two year anniversary of the Original Issue Date, the
Conversion Price shall be reduced by multiplying the Conversion Price by a
fraction, the numerator of which is the number of shares of Common Stock issued
and outstanding immediately prior to the Dilutive Issuance plus the number of
shares of Common Stock which the offering price for such Dilutive Issuance would
purchase at the then Conversion Price, and the
denominator of which shall be the sum of the number of shares of Common Stock
issued and outstanding immediately prior to the Dilutive Issuance plus the
number of shares of Common Stock so issued or issuable in connection with the
Dilutive Issuance. Notwithstanding the foregoing, no adjustment will be made
under this Section 7(b) in respect of an Exempt Issuance. If the Corporation
enters into a Variable Rate Transaction, despite the prohibition set forth in
the Purchase Agreement, the Corporation shall be deemed to have issued Common
Stock or Common Stock Equivalents at the lowest possible conversion price at
which such securities may be converted or exercised. The Corporation shall
notify the Holders in writing, no later than the Business Day following the
issuance of any Common Stock or Common Stock Equivalents subject to this Section
7(b), indicating therein the applicable issuance price, or applicable reset
price, exchange price, conversion price and other pricing terms (such notice,
the “Dilutive Issuance
Notice”). For purposes of clarification, whether or not the Corporation
provides a Dilutive Issuance Notice pursuant to this Section 7(b), upon the
occurrence of any Dilutive Issuance, the Holders are entitled to receive a
number of Conversion Shares based upon the Base Conversion Price on or after the
date of such Dilutive Issuance, regardless of whether a Holder accurately refers
to the Base Conversion Price in the Notice of Conversion.

      

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      c) Subsequent
Rights Offerings. If the
Corporation, at any time while this Preferred Stock is outstanding, shall issue
rights, options or warrants to all holders of Common Stock (and not to Holders)
entitling them to subscribe for or purchase shares of Common Stock at a price
per share that is lower than the VWAP on the record date referenced below, then
the Conversion Price shall be multiplied by a fraction of which the denominator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of additional shares of
Common Stock offered for subscription or purchase, and of which the numerator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of shares which the
aggregate offering price of the total number of shares so offered (assuming
delivery to the Corporation in full of all consideration payable upon exercise
of such rights, options or warrants) would purchase at such VWAP. Such
adjustment shall be made whenever such rights or warrants are issued, and shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such rights, options or
warrants.

       

      d) Pro Rata
Distributions. If the
Corporation, at any time while this Preferred Stock is outstanding, distributes
to all holders of Common Stock (and not to Holders) evidences of its
indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security (other than Common Stock, which shall
be subject to Section 7(b)), then in each such case the Conversion Price shall
be adjusted by multiplying such Conversion Price in effect immediately prior to
the record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator shall be such
VWAP on such record date less the then fair market value at such record date of
the portion of such assets, evidence of indebtedness or rights or warrants so
distributed applicable to one outstanding share of the Common Stock as
determined by the Board of Directors of the Corporation in good faith. In either
case the adjustments shall be described in a statement delivered to the Holders
describing the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

      

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      e) Fundamental
Transaction. If, at any time while this Preferred Stock is outstanding,
(A) the Corporation effects any merger or consolidation of the Corporation with
or into another Person, (B) the Corporation effects any sale of all or
substantially all of its assets in one transaction or a series of related
transactions, (C) any tender offer or exchange offer (whether by the Corporation
or another Person) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or
property, or (D) the Corporation effects any reclassification of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property
(in any such case, a “Fundamental
Transaction”), then, upon any subsequent conversion of this Preferred
Stock, the Holders shall have the right to receive, for each Conversion Share
that would have been issuable upon such conversion immediately prior to the
occurrence of such Fundamental Transaction, the same kind and amount of
securities, cash or property as it would have been entitled to receive upon the
occurrence of such Fundamental Transaction if it had been, immediately prior to
such Fundamental Transaction, the holder of one share of Common Stock (the
“Alternate
Consideration”). For purposes of any such conversion, the determination
of the Conversion Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of Alternate Consideration issuable
in respect of one share of Common Stock in such Fundamental Transaction, and the
Corporation shall apportion the Conversion Price among the Alternate
Consideration in a reasonable manner reflecting the relative value of any
different components of the Alternate Consideration. If holders of Common Stock
are given any choice as to the securities, cash or property to be received in a
Fundamental Transaction, then the Holders shall be given the same choice as to
the Alternate Consideration it receives upon any conversion of this Preferred
Stock following such Fundamental Transaction. To the extent necessary to
effectuate the foregoing provisions, any successor to the Corporation or
surviving entity in such Fundamental Transaction shall file a new Certificate of
Designation with the same terms and conditions and issue to the Holders new
preferred stock consistent with the foregoing provisions and evidencing the
Holders’ right to convert such preferred stock into Alternate Consideration. The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this Section 7(e) and insuring that this
Preferred Stock (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental
Transaction.

       

      f) Calculations. All calculations under this Section 7
shall be made to the nearest cent or the nearest 1/100th of a share, as the case
may be. For purposes of this Section 7, the number of shares of Common Stock
deemed to be issued and outstanding as of a given date shall be the sum of the
number of shares of Common Stock (excluding any treasury shares of the
Corporation) issued and outstanding.

      

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      g) Notice to
the Holders.

      

      i. Adjustment
to Conversion Price.
Whenever the Conversion Price is adjusted pursuant to any provision of this
Section 7, the Corporation shall promptly deliver to each Holder a notice
setting forth the Conversion Price after such adjustment and setting forth a
brief statement of the facts requiring such adjustment.

       

      ii. Notice to
Allow Conversion by Holder. If (A) the Corporation shall declare
a dividend (or any other distribution in whatever form) on the Common Stock, (B)
the Corporation shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Corporation shall authorize the granting
to all holders of the Common Stock of rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the
approval of any stockholders of the Corporation shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to
which the Corporation is a party, any sale or transfer of all or substantially
all of the assets of the Corporation, of any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property or (E) the
Corporation shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Corporation, then, in each case,
the Corporation shall cause to be filed at each office or agency maintained for
the purpose of conversion of this Preferred Stock, and shall cause to be
delivered to each Holder at its last address as it shall appear upon the stock
books of the Corporation, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be determined or
(y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the
date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or
other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange, provided that the failure to deliver such
notice or any defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such notice. The
Holder is entitled to convert the Conversion Amount of this Preferred Stock (or
any part hereof) during the 20-day period commencing on the date of such notice
through the effective date of the event triggering such
notice.

      

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      Section
8.  Forced
Conversion.
Notwithstanding anything herein to the contrary, if after the Effective Date (i)
the VWAP for each of any 20 consecutive Trading Day period, which 20 consecutive
Trading Day period shall have commenced only after the Effective Date
(“Threshold
Period”), exceeds 300% of
the then effective Conversion Price, and (ii) the average daily trading volume
for the previous 20 Trading Days exceeds the lesser of (A) $250,000 or (B) 0.75%
of the Company’s total market capitalization as of the Forced Conversion Notice
Date, then the Corporation may, within 1 Trading Day after the end of any such
Threshold Period, deliver a written notice to all Holders (a “Forced
Conversion Notice” and the
date such notice is delivered to all Holders, the “Forced
Conversion Notice Date”)
to cause each Holder to convert all or part of such Holder’s Preferred Stock (as
specified in such Forced Conversion Notice) plus all accrued but unpaid
dividends thereon and all liquidated damages and other amounts due in respect of
the Preferred Stock pursuant to Section 6, it being agreed that the “Conversion
Date” for purposes of Section 6 shall be deemed to occur on the third Trading
Day following the Forced Conversion Notice Date (such third Trading Day, the
“Forced
Conversion Date”). The
Corporation may not deliver a Forced Conversion Notice, and any Forced
Conversion Notice delivered by the Corporation shall not be effective, unless
all of the Equity Conditions have been met on each Trading Day during the
applicable Threshold Period through and including the later of the Forced
Conversion Date and the Trading Day after the date that the Conversion Shares
issuable pursuant to such conversion are actually delivered to the Holders
pursuant to the Forced Conversion Notice. Any Forced Conversion Notices shall be
applied ratably to all of the Holders based on each Holder’s initial purchases
of Preferred Stock hereunder, provided that any voluntary conversions by a
Holder shall be applied against such Holder’s pro rata allocation, thereby decreasing the
aggregate amount forcibly converted hereunder if less than all shares of the
Preferred Stock are forcibly converted. For purposes of clarification, a Forced
Conversion shall be subject to all of the provisions of Section 6, including,
without limitation, the provisions requiring payment of liquidated damages and
limitations on conversions.

      

      Section
9.  Redemption
Upon Triggering Events.  a) “Triggering
Event” means any one or
more of the following events (whatever the reason and whether it shall be
voluntary or involuntary or effected by operation of law or pursuant to any
judgment, decree or order of any court, or any order, rule or regulation of any
administrative or governmental body):

      

      i. the Corporation shall fail for any
reason to pay in full the amount of cash due pursuant to a Buy-In within five
calendar days after notice therefor is delivered hereunder or shall fail to pay
all amounts owed on account of any Event (as defined in the Registration Rights
Agreement) within five days of the date due;

      

      ii. the Corporation shall fail to have
available a sufficient number of authorized and unreserved shares of Common
Stock to issue to such Holder upon a conversion hereunder;

      

      iii. Reserved

      

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      iv. the Corporation shall redeem more than
a de minimis number of Junior Securities other than
as to repurchases of Common Stock or Common Stock Equivalents from departing
officers and directors of the Corporation, provided that, while any of the
Preferred Stock remains outstanding, such repurchases shall not exceed an
aggregate of $100,000 from all officers and directors;

      

      v. any breach of the agreements delivered
to the initial Holders at the Closing pursuant to Section 2.2(a)(iv) of the
Purchase Agreement;

      

      vi. the Corporation shall be party to a
Change of Control Transaction;

      

      vii. there shall have occurred a Bankruptcy
Event;

      

      viii. the Common Stock shall fail to be
listed or quoted for trading on a Trading Market for more than five Trading
Days, which need not be consecutive Trading Days; or

      

      ix. any monetary judgment, writ or similar
final process shall be entered or filed against the Corporation, any subsidiary
or any of their respective property or other assets for greater than $50,000,
and such judgment, writ or similar final process shall remain unvacated,
unbonded or unstayed for a period of 45 calendar days.

      

      b) Upon the occurrence of a Triggering
Event, each Holder shall (in addition to all other rights it may have hereunder
or under applicable law) have the right, exercisable at the sole option of such
Holder, to require the Corporation to, (A) with respect to the Triggering Events
set forth in Sections 9(a)(i), (iii), (iv), (vi) (as to Changes of Control
approved by the Board of Directors of the Corporation) and (vii) (as to
voluntary filings only), redeem all of the Preferred Stock then held by such
Holder for a redemption price, in cash, equal to the Triggering Redemption
Amount or (B) at the option of each Holder and with respect to the Triggering
Events set forth in Sections 9(a) (ii), (v), (vi) (as to Changes of Control not
approved by the Board of Directors of the Corporation), (vii) (as to involuntary
filings only), (viii) and (ix), either (a) redeem all of the Preferred Stock
then held by such Holder for a redemption price, in shares of Common Stock,
equal to a number of shares of Common Stock equal to the Triggering Redemption
Amount divided by 75% of the average of the 10 VWAPs immediately prior to the
date of election hereunder or (b) increase the dividend rate on all of the
outstanding Preferred Stock held by such Holder to 18% per annum thereafter. The
Triggering Redemption Amount, in cash or in shares, shall be due and payable or
issuable, as the case may be, within five Trading Days of the date on which the
notice for the payment therefor is provided by a Holder (the “Triggering
Redemption Payment Date”).
If the Corporation fails to pay in full the Triggering Redemption Amount
hereunder on the date such amount is due in accordance with this Section
(whether in cash or shares of Common Stock), the Corporation will pay interest
thereon at a rate equal to the lesser of 18% per annum or the maximum rate
permitted by applicable law, accruing daily from such date until the Triggering
Redemption Amount, plus all such interest thereon, is paid in full. For purposes
of this Section, a share of Preferred Stock is outstanding until such date as
the applicable Holder shall have received Conversion Shares upon a conversion
(or attempted conversion) thereof that meets the requirements hereof or has been
paid the Triggering Redemption Amount in cash.

      

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      Section 10.  Negative Covenants.
So long as any shares of Preferred Stock are outstanding, unless the holders of
at least 67% in Stated Value of the then outstanding shares of Preferred Stock
shall have otherwise given prior written consent, the Corporation shall not, and
shall not permit any of its subsidiaries (whether or not a Subsidiary on the
Original Issue Date) to, directly or indirectly:

      

      a) other than Permitted Indebtedness,
enter into, create, incur, assume, guarantee or suffer to exist any indebtedness
for borrowed money of any kind, including but not limited to, a guarantee, on or
with respect to any of its property or assets now owned or hereafter acquired or
any interest therein or any income or profits therefrom;

       

      b) other than Permitted Liens, enter into,
create, incur, assume or suffer to exist any Liens of any kind, on or with
respect to any of its property or assets now owned or hereafter acquired or any
interest therein or any income or profits therefrom;

      

      c) amend its certificate of incorporation,
bylaws, or other charter documents so as to materially and adversely affect any
rights of any Holder;

      

      d) amend this Certificate of
Designations;

      

      e) repay, repurchase or offer to repay,
repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock,
Common Stock Equivalents or Junior Securities, except for the Conversion Shares
to the extent permitted or required under the Transaction Documents or as
otherwise permitted by the Transaction Documents;

      

      f) enter into any agreement or
understanding with respect to any of the foregoing; or

      

      g) pay cash dividends or distributions on
Junior Securities of the Corporation. 

      

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      Section
11. Miscellaneous.

      

      a) Notices. Any and all notices or other
communications or deliveries to be provided by the Holders hereunder including,
without limitation, any Notice of Conversion, shall be in writing and delivered
personally, by facsimile, or sent by a nationally recognized overnight courier
service, addressed to the Corporation, at the address set forth above, facsimile
number _______, Attention:
_________________or such
other facsimile number or address as the Corporation may specify for such
purposes by notice to the Holders delivered in accordance with this Section 11.
Any and all notices or other communications or deliveries to be provided by the
Corporation hereunder shall be in writing and delivered personally, by
facsimile, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number or address of such Holder
appearing on the books of the Corporation, or if no such facsimile number or
address appears on the books of the Corporation, at the principal place of
business of the Holders. Any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section 11 prior to 5:30 p.m. (New York City
time) on any date, (ii) the date immediately following the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
number specified in this Section 11 between 5:30 p.m. and 11:59 p.m. (New York
City time) on any date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv)
upon actual receipt by the party to whom such notice is required to be
given.

       

      b) Absolute
Obligation. Except as
expressly provided herein, no provision of this Certificate of Designation shall
alter or impair the obligation of the Corporation, which is absolute and
unconditional, to pay liquidated damages, accrued dividends and accrued
interest, as applicable, on the shares of Preferred Stock at the time, place,
and rate, and in the coin or currency, herein prescribed.

       

      c) Lost or
Mutilated Preferred Stock Certificate. If a Holder’s Preferred Stock
certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall
execute and deliver, in exchange and substitution for and upon cancellation of a
mutilated certificate, or in lieu of or in substitution for a lost, stolen or
destroyed certificate, a new certificate for the shares of Preferred Stock so
mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such
loss, theft or destruction of such certificate, and of the ownership hereof
reasonably satisfactory to the Corporation.

      

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      d) Governing Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Certificate of Designation shall be governed by and construed and
enforced in accordance with the internal laws of the State of Delaware, without
regard to the principles of conflict of laws thereof. Each party agrees that all
legal proceedings concerning the interpretation, enforcement and defense of the
transactions contemplated by any of the Transaction Documents (whether brought
against a party hereto or its respective Affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and
federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”).
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of
the New York Courts for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of such New York Courts, or such New York Courts are improper or
inconvenient venue for such proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Certificate of Designation and
agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by applicable law. Each
party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Certificate of Designation or the
transactions contemplated hereby. If either party shall commence an action or
proceeding to enforce any provisions of this Certificate of Designation, then
the prevailing party in such action or proceeding shall be reimbursed by the
other party for its attorneys’ fees and other costs and expenses incurred in the
investigation, preparation and prosecution of such action or
proceeding.

       

      e) Waiver. Any waiver by the Corporation or a
Holder of a breach of any provision of this Certificate of Designation shall not
operate as or be construed to be a waiver of any other breach of such provision
or of any breach of any other provision of this Certificate of Designation or a
waiver by any other Holders. The failure of the Corporation or a Holder to
insist upon strict adherence to any term of this Certificate of Designation on
one or more occasions shall not be considered a waiver or deprive that party (or
any other Holder) of the right thereafter to insist upon strict adherence to
that term or any other term of this Certificate of Designation. Any waiver by
the Corporation or a Holder must be in writing.

       

      f) Severability. If any provision of this Certificate
of Designation is invalid, illegal or unenforceable, the balance of this
Certificate of Designation shall remain in effect, and if any provision is
inapplicable to any Person or circumstance, it shall nevertheless remain
applicable to all other Persons and circumstances. If it shall be found that any
interest or other amount deemed interest due hereunder violates the applicable
law governing usury, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum rate of interest permitted under
applicable law.

      

      g) Next
Business Day. Whenever any
payment or other obligation hereunder shall be due on a day other than a
Business Day, such payment shall be made on the next succeeding Business
Day.

      

      h) Headings. The headings contained herein are for
convenience only, do not constitute a part of this Certificate of Designation
and shall not be deemed to limit or affect any of the provisions
hereof.

      

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      i) Status of
Converted or Redeemed Preferred Stock. Shares of Preferred Stock may only be
issued pursuant to the Purchase Agreement. If any shares of Preferred Stock
shall be converted, redeemed or reacquired by the Corporation, such shares shall
resume the status of authorized but unissued shares of preferred stock and shall
no longer be designated as Series A 10% Convertible Preferred
Stock.

      

      *********************

      

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      RESOLVED,
FURTHER, that the Chairman, the president or any vice-president, and the
secretary or any assistant secretary, of the Corporation be and they hereby are
authorized and directed to prepare and file a Certificate of Designation of
Preferences, Rights and Limitations in accordance with the foregoing resolution
and the provisions of Delaware law.

      

      IN
WITNESS WHEREOF, the undersigned have executed this Certificate this ___ day of
December __ 2007.

      

      
        	 
      	 
      	 
      
	
                Name:

                Title:

              	 
      	
                Name:

                Title:

              

      

      

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      ANNEX
A

      

      NOTICE OF
CONVERSION

      

      (TO BE
EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES

      OF
PREFERRED STOCK)

      

      The
undersigned hereby elects to convert the number of shares of Series A 10%
Convertible Preferred Stock indicated below into shares of common stock, par
value $0.001 per share (the “Common Stock”), of
Marine Park Holdings, Inc., a Delaware corporation (the “Corporation”),
according to the conditions hereof, as of the date written below. If shares of
Common Stock are to be issued in the name of a Person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates and opinions as may be
required by the Corporation in accordance with the Purchase Agreement. No fee
will be charged to the Holders for any conversion, except for any such transfer
taxes.

      

      Conversion
calculations:

       

      Date to Effect Conversion:
________________________________________________________

       

      Number of
shares of Preferred Stock owned prior to Conversion:
____________________________

      

      Number of
shares of Preferred Stock to be Converted:
____________________________________

       

      Stated Value of shares of Preferred
Stock to be Converted: _________________________________

       

      Number of shares of Common Stock to be
Issued: ________________________________________

       

      Applicable Conversion Price: 
_______________________________________________________

       

      Number of shares of Preferred Stock
subsequent to
Conversion:  ____________________________

      Address for Delivery:
_____________________________________________________________

       

      or

       

      DWAC
Instructions:

       

      Broker no:
______________

       

      Account
no:  ________________

       

      
        	
                [HOLDER]

              
	 
      
	
                By:

              	 
      
	 
      	
                Name:

              
	 
      	
                Title:

              

      

       

      28

         

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      EXHIBIT
E

      

      FORM
OF LEGAL OPINION

      

      

      

      

      [List of
Purchasers]

      

      

      

      Ladies
and Gentlemen:

      

      We have acted as counsel to Marine Park
Holdings, Inc., a Delaware corporation (the “Company”), in
connection with the execution and delivery by the Company of the Share Exchange
Agreement, dated as of December __, 2007 (the “Agreement”), by and
among the Company, NewCardio, Inc. and the shareholders of NewCardio, Inc.
identified on the signature pages thereto (the “Shareholders”).  This
opinion is given to you pursuant to Section 9.3(1) of the
Agreement.  (Capitalized terms not otherwise
defined herein are defined as set forth in the Agreement.)

      

      We have participated in the preparation
and negotiation of the Agreement and the Exhibits and Schedules thereto, and the
other documents referred to therein.  We also have examined such
certificates of public officials, corporate documents and records and other
certificates, opinions, agreements and instruments and have made such other
investigations as we have deemed necessary in connection with the opinions
hereinafter set forth.

      

      Based on the foregoing and upon such
investigation as we have deemed necessary, we give you our opinion as
follows:

      

      1. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of Delaware.  The Company has all requisite power and
authority, and all material governmental licenses, authorizations, consents and
approvals, that are required to own and operate its properties and assets and to
carry on its business as now conducted and as proposed to be conducted. The
Company is duly qualified to transact business and is in good standing in each
jurisdiction in which the failure to qualify could have a material adverse
effect on the Company.

       

      2. Each of
the following subsidiaries of the Company (the “Subsidiaries”) is a
corporation, duly organized and in good standing under the laws of its state of
organization, as noted:

       

      3. The
Company has all requisite power and authority (i) to execute, deliver and
perform the Agreement and the other documents contemplated therein, (ii) to
issue, sell and deliver the Acquisition Shares pursuant to the Agreement and
(iii) to carry out and perform its obligations under, and to consummate the
transactions contemplated by, the Agreement and the transactions contemplated
therein.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4. All
action on the part of the Company, its directors and its stockholders necessary
for the authorization, execution and delivery by the Company of the Agreement
and the other documents contemplated therein, the authorization, issuance, sale
and delivery of the Acquisition Shares pursuant to the Agreement, and the
consummation by the Company of the transactions contemplated by the Agreement
has been duly taken.  The Agreement and the other documents
contemplated therein have been duly and validly executed and delivered by the
Company and constitute the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with their terms, except that (a)
such enforceability may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditors’ rights in general and (b) the
remedies of specific performance and injunctive and other forms of injunctive
relief may be subject to equitable defenses.

       

      5. After
giving effect to the transactions contemplated by the Agreement, and immediately
after the Closing, the authorized capital stock of the Company will consist of:
an aggregate of _________ shares of Marine Park Common Shares, of which  shares will be
issued and outstanding and _________ shares are reserved for issuance upon
conversion of issued and outstanding options, warrants and other derivative
securities, __________ shares are reserved for issuance to employees, officers
and directors under currently outstanding incentive stock option grants and
__________ shares are subject to currently outstanding non-qualified stock
option grants.  All presently issued and outstanding shares of Marine
Park Common Shares have been duly authorized and validly issued and are fully
paid and nonassessable and free of any preemptive or similar rights, and have
been issued in compliance with applicable securities laws and
regulations.  The Acquisition Shares which are being issued on the
date hereof pursuant to the Agreement have been duly authorized and validly
issued and are fully paid and nonassessable and free of preemptive or similar
rights, and have been issued in compliance with applicable securities laws,
rules and regulations.  To our knowledge, except for rights described
in the Agreement, there are no other options, warrants, conversion privileges or
other rights presently outstanding to purchase or otherwise acquire from the
Company any capital stock or other securities of the Company, or any other
agreements to issue any such securities or rights.  The rights,
privileges and preferences of the Marine Park Common Shares are as stated in the
Company’s Certificate of Incorporation.

       

      6. The
Company has filed all reports (the “SEC Reports”)
required to be filed by it under Sections 13(a) and 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”).  As of their respective filing dates, the SEC Reports
complied in all material respects as to form with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder.

       

      7. Based in
part upon the representations of the NewCardio Shareholders contained in the
Agreement, the Acquisition Shares may be issued to the NewCardio
Shareholders without registration under the Securities Act of 1933, as
amended.

       

      8. The
execution, delivery and performance by the Company of, and the compliance by the
Company with the terms of, the Agreement and the other documents contemplated
therein and the issuance, sale and delivery of the Acquisition Shares pursuant
to the Agreement do not (a) conflict with or result in a violation of any
provision of law, rule or regulation applicable to the Company or its
Subsidiaries or of the certificate of incorporation or by-laws or other similar
organizational documents of the Company or its Subsidiaries, (b) conflict with,
result in a breach of or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or result in or permit the
termination or modification of, any agreement, instrument, order, writ, judgment
or decree known to us to which the Company of its Subsidiaries is a party or is
subject or (c) result in the creation or imposition of any lien, claim or
encumbrance on any of the assets or properties of the Company or its
Subsidiaries.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      9. To our
knowledge, except as set forth in the Schedules to the Agreement, there is no
claim, action, suit, proceeding, arbitration, investigation or inquiry, pending
or threatened, before any court or governmental or administrative body or
agency, or any private arbitration tribunal, against the Company or its
Subsidiaries, or any of the officers, directors or employees (in connection with
the discharge of their duties as officers, directors and employees) of the
Company or its Subsidiaries, or affecting any of its properties or
assets.

       

      10. In
connection with the valid execution, delivery and performance by the Company of
the Agreement and the other documents contemplated therein, or the offer, sale,
issuance or delivery of the Acquisition Shares or the consummation of the
transactions contemplated thereby, no consent, license, permit, waiver, approval
or authorization of, or designation, declaration, registration or filing with,
any court, governmental or regulatory authority, or self-regulatory
organization, is required.

       

      11. The
Company is not, and after the consummation of the transactions contemplated by
the Agreement and the other documents contemplated therein shall not be, an
Investment Company within the meaning of the Investment Company Act of 1940, as
amended.

       

      

      

      Very truly
yours,

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