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                          SECURITIES PURCHASE AGREEMENT

                            DATED AS OF MAY 25, 2006

                                  BY AND AMONG

                          WORLD WASTE TECHNOLOGIES, INC

                                       AND

                           THE INVESTORS NAMED HEREIN

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                                TABLE OF CONTENTS

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                                                                                Page
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ARTICLE I    AUTHORIZATION AND SALE OF THE SECURITIES.............................1

       1.1   Authorization of Issuance and Sale of the Securities.................1
       1.2   Sale and Issuance....................................................1
       1.3   The Initial Closing..................................................1
       1.4   Additional Closings..................................................2
       1.5   Senior Debentures....................................................2
       1.6   Use of Proceeds......................................................3

ARTICLE II   THE CLOSINGS.........................................................3

       2.1   Deliveries at Each Closing...........................................3

ARTICLE III  REPRESENTATIONS AND WARRANTIES OF THE COMPANY........................4

       3.1   Subsidiaries; Organization; Good Standing; Qualification and Power...4
       3.2   Authorization........................................................4
       3.3   Non-contravention....................................................4
       3.4   Capitalization of the Company........................................5
       3.5   Financial Statements and Liabilities.................................6
       3.6   Legal Compliance.....................................................7
       3.7   Litigation...........................................................7
       3.8   Environment, Safety and Permits......................................7
       3.9   Offering Exemption...................................................9
       3.10  Ownership of Purchased Securities....................................9
       3.11  Securities Filings...................................................9
       3.12  Transactions With Affiliates And Employees...........................9
       3.13  Internal Accounting Controls........................................10
       3.14  Listing And Maintenance Requirements................................10
       3.15  No Integrated Offering..............................................11
       3.16  No Investment Company...............................................11
       3.17  Insurance...........................................................11
       3.18  Labor Relations.....................................................11
       3.19  Taxes...............................................................11
       3.20  No Brokers..........................................................13
       3.21  Reliance............................................................13
       3.22  Employee Benefits...................................................13

ARTICLE IV   REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS....................14

       4.1   Authority...........................................................14
       4.2   Experience..........................................................15
       4.3   Suitability of Investment...........................................15
       4.4   Investment..........................................................15
       4.5   Patriot Act Compliance..............................................16
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ARTICLE V    ADDITIONAL AGREEMENTS...............................................16

       5.1   Survival of Representations, Warranties and Agreements..............16
       5.2   Transaction Expenses and Taxes......................................16
       5.3   Escrow of Funds.....................................................16
       5.4   Securities Laws.....................................................17
       5.5   Reporting Matters...................................................17

ARTICLE VI   MISCELLANEOUS.......................................................17

       6.1   No Third Party Beneficiaries........................................17
       6.2   Entire Agreement....................................................18
       6.3   Successors and Assigns..............................................18
       6.4   Counterparts........................................................18
       6.5   Notices.............................................................18
       6.6   Governing Law.......................................................19
       6.7   Submission to Jurisdiction; Waivers.................................19
       6.8   Amendments and Waivers; Purchasers Consent..........................20
       6.9   Certain Definitions.................................................20
       6.10  Incorporation of Schedules and Exhibits.............................24
       6.11  Construction........................................................24
       6.12  Interpretation......................................................24
       6.13  Remedies............................................................24
       6.14  Severability........................................................25
       6.15  Delivery by Facsimile...............................................25
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                                      -ii-

<PAGE>

Schedules

DISCLOSURE SCHEDULE

Exhibits
--------

Exhibit A    -     Allocation Schedule
Exhibit B    -     Form of Warrant
Exhibit C    -     Form of Registration Rights Agreement
Exhibit D    -     Certificate of Determination
Exhibit E    -     Form of Legal Opinion
Exhibit F          Patriot Act Compliance Terms

                                     -iii-

<PAGE>

      THIS SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of May 25,
2006, by and among World Waste Technologies, Inc., a California corporation (the
"Company")  and each of the  purchasers  set  forth on the  Allocation  Schedule
attached  hereto  as  Exhibit  A (each,  a  "Purchaser"  and  collectively,  the
"Purchasers").

      WHEREAS,  subject to the terms and conditions set forth in this Agreement,
the Company  desires to sell to the  Purchasers,  and the  Purchasers  desire to
purchase  from the  Company,  up to 89,000  shares of the  Company's 8% Series B
Cumulative Redeemable Convertible  Participating  Preferred Stock (the "Series B
Preferred Stock"), together with common stock purchase warrants.

      NOW,  THEREFORE,  in  consideration of the mutual promises herein made and
the representations,  warranties,  and covenants herein contained, and for other
good and  valuable  consideration,  the receipt and adequacy of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:

                                    ARTICLE I
                                AUTHORIZATION AND
                             SALE OF THE SECURITIES

      1.1 Authorization of Issuance and Sale of the Securities.

      Subject to the terms and conditions hereof, the Company has authorized (i)
the  issuance  and sale of up to 89,000  shares of Series B Preferred  Stock and
warrants to acquire up to 890,000  shares of Common Stock (the  "Warrants"),  at
the  Closings (as defined  herein),  for an  aggregate  purchase  price of up to
$8,900,000,  and (ii) the issuance of shares of the Company's  Common Stock upon
conversion  of such  shares of Series B  Preferred  Stock and  exercise  of such
Warrants (the "Underlying Shares").

      1.2 Sale and Issuance.

      Subject to the terms and  conditions  hereof,  at the Initial  Closing (as
defined below),  each Purchaser  severally and not jointly,  agrees to purchase,
and the  Company  agrees to sell and  issue to such  Purchaser,  that  number of
shares of Series B Preferred Stock (the "Initial Purchased Shares") and warrants
(the "Initial  Warrants" and, together with the Initial  Purchased  Shares,  the
"Initial Purchased Securities"),  as set forth opposite such Purchaser's name on
Exhibit A attached hereto.

      1.3 The Initial Closing.

      (a) Simultaneously with the execution and delivery of this Agreement,  the
initial closing hereunder (the "Initial  Closing") with respect to the issuance,
sale and delivery of the Initial Purchased Securities shall take place (the date
on which the Initial Closing occurs, the "Initial Closing Date").

      (b) At the Initial  Closing,  on the terms and  subject to the  conditions
contained  herein,  (i)  the  Company  shall  issue,  sell  and  deliver  to the
Purchasers,  and the  Purchasers  shall  purchase  from the Company,  all of the
Initial Purchased  Securities free and clear of any liens,  claims,  charges and
encumbrances  whatsoever and with no  restrictions  on the voting rights thereof
and other incidents of record and beneficial  ownership  pertaining thereto, and
(ii)  the  Purchasers  shall  deliver  to  the  Company,  by  wire  transfer  of
immediately  available  funds  to an  account  designated  by the  Company,  the
aggregate  purchase  price (the  "Purchase  Price") for such  Initial  Purchased
Securities  in the  individual  amounts  set  forth on the  Allocation  Schedule
attached hereto as Exhibit A.

<PAGE>

      1.4 Additional Closings.

      In the event that less than 89,000 shares of Series B Preferred  Stock are
issued and sold at the Initial Closing,  one or more additional  closings (each,
an "Additional Closing" and together the "Additional Closings") may occur on any
day on or prior to April 28,  2006 (or,  if the  offering  pursuant to which the
shares are being sold is extended by the Company,  prior to May 28,  2006),  for
the sale of up to the  balance of such  shares  and  related  Warrants,  to such
persons as the Company may determine,  so long as the sale of such securities at
each such Additional Closing is effected pursuant to the terms of this Agreement
(or a separate agreement with terms  substantially  similar to the terms hereof)
and at a price per  share  paid in cash,  no less  than the per  share  Purchase
Price.  Each  Additional  Closing  shall be  effected in the manner set forth in
Section 1.3. Any  individual  or entity  purchasing  securities at an Additional
Closing  (each,  an  "Additional   Purchaser,"  and   collectively   "Additional
Purchasers")  shall  execute  a  signature  page  to  this  Agreement  (or  such
substantially  similar separate  agreement) and the Company shall, as applicable
update Exhibit A hereto to include each such Additional Purchaser, at which time
each such Additional  Purchasers  shall be deemed to be a "Purchaser"  hereunder
for purposes of this Agreement and all other agreements contemplated hereby, and
a  "Holder"  under the Rights  Agreement  (as  defined in Section  2.1) (or such
separate  registration rights agreement with terms substantially  similar to the
terms  of the  Rights  Agreement).  At or  promptly  following  each  Additional
Closing,  (i) the Company will deliver to the Additional  Purchasers the various
certificates,  instruments  and documents  referred to in Section 2.1(a) hereof,
(ii)  the  Additional  Purchasers  will  deliver  to  the  Company  the  various
certificates, instruments and documents referred to in Section 2.1(b) below, and
(iii) the Company shall deliver to each Additional Purchaser a share certificate
and Warrant  registered in such Additional  Purchaser's  name  representing  the
shares of Series B Preferred Stock and Warrants that such  Additional  Purchaser
is to  receive  from the  Company  at such  Additional  Closing  to be set forth
opposite such Additional Purchaser's name on the updated Exhibit A hereto (or in
a separate agreement),  against payment of the purchase price therefore by check
or wire  transfer  to an  account  designated  by the  Company  or  other  means
acceptable to the Company.  The Initial Purchased Securities and the securities,
if any,  purchased  at each  Additional  Closing,  are referred to herein as the
"Purchased Securities."

      1.5 Senior Debentures.

      Each Purchaser  acknowledges  that the Company may,  simultaneous with the
Initial Closing or any Additional  Closing,  issue and sell additional shares of
Series B Preferred Stock to holders of the Company's  senior secured  debentures
(the "Senior  Debentures"),  if and to the extent such holders elect to exchange
such Senior Debentures for shares of Series B Preferred pursuant to the terms of
the agreements entered into in connection with the Senior Debentures.

                                       2
<PAGE>

      1.6 Use of Proceeds.

      The  Company  will  use  the  net  proceeds  of the  Purchased  Securities
purchased  by the  Purchasers  pursuant  to this  Agreement  for  commissioning,
operation and process  improvement  investments  by the  Company's  wholly owned
subsidiary,  World Waste of Anaheim,  Inc.,  at Plant Number One located at 2740
Coronado Street, Anaheim, California, for working capital, for general corporate
purposes.

                                   ARTICLE II
                                  THE CLOSINGS

      2.1 Deliveries at Each Closing.

      (a)  As a  condition  to  each  Purchaser's  obligation  to  purchase  its
respective   portion  of  the   Purchased   Securities,   at  each  Closing  all
representations  and  warranties  set  forth in  Article  III  shall be true and
correct in each case, as of the date of this Agreement (other than those that by
their terms are to be true and correct as of a  specified  date,  in which case,
such  representations and warranties shall be true and correct as of such date),
and the Company shall deliver to or on behalf of each Purchaser:

            (i) a stock  certificate  registered in the name of such  Purchaser,
representing the Purchased Shares being purchased by such Purchaser  pursuant to
Section  1.3(b)  (provided  that  the  Company  may at its  option  deliver  the
foregoing promptly following such Closing);

            (ii) a Warrant  Certificate in the form attached hereto as Exhibit B
in the name of such Purchaser  representing the Warrants being purchased by such
Purchaser  pursuant  to Section  1.3(b)  (provided  that the  Company may at its
option deliver the foregoing promptly following such Closing);

            (iii) a counterpart of the Amended and Restated  Registration Rights
Agreement,  in the form attached  hereto as Exhibit C (the "Rights  Agreement"),
duly  executed by the Company and the other  shareholders  of the Company  party
thereto; and

            (iv) a  legal  opinion  of Troy & Gould  substantially  in the  form
attached hereto as Exhibit E.

      (b) As a  condition  to the  Company's  obligation  to sell the  Purchased
Securities to each Purchaser, at each Closing all representations and warranties
set forth in Article IV shall be true and correct in all material  respects,  in
each case, as of the date of this Agreement, and each Purchaser shall deliver to
the Company:

            (i) the Purchase Price for the Purchased  Securities being purchased
by such Purchaser pursuant to Section 1.3(b);

            (ii) a counterpart  of the Rights  Agreement,  duly executed by such
Purchaser; and

                                       3
<PAGE>

            (iii) a duly executed Form W-9 or W-8, as appropriate.

                                  ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      Except as set forth on the  Disclosure  Schedule  attached  hereto,  or as
disclosed  in any of the SEC Reports (as defined in Section  3.11),  the Company
represents  and warrants to the  Purchasers as of the date hereof and as of each
Closing Date as follows:

      3.1 Subsidiaries; Organization; Good Standing; Qualification and Power.

      (a) The Company has the subsidiaries (each a "Subsidiary") as set forth in
the SEC Reports (as defined  below).  The Company owns,  directly or indirectly,
all of the capital stock of each  Subsidiary,  free and clear of any liens,  and
all of the issued and outstanding shares of capital stock of each Subsidiary are
duly  authorized,  validly  issued,  fully  paid,  non-assessable  and  free  of
preemptive and similar rights to subscribe for or purchase securities.

      (b) The Company and each  Subsidiary is duly organized,  validly  existing
and in good standing under the laws of the jurisdiction of its  incorporation or
organization (as applicable),  has all requisite power to own, lease and operate
its Assets and to carry on its business as  presently  being  conducted,  and is
qualified to do business and in good standing in every jurisdiction in which the
failure  to so  qualify or be in good  standing  would  have a Material  Adverse
Effect.

      3.2 Authorization.

      (a) The  Company  has all  requisite  power and  authority  to execute and
deliver each Document and any and all  instruments  necessary or  appropriate in
order to  effectuate  fully the terms and  conditions  of each  Document and all
related  transactions and to perform its obligations  under each Document.  Each
Document  has  been  duly  authorized  by  all  necessary   action   (corporate,
shareholder  or otherwise) on the part of the Company,  and no further action is
required by the Company in connection therewith, and each Document has been duly
executed and  delivered by the Company,  and  constitutes  the valid and legally
binding obligation of the Company,  enforceable in accordance with its terms and
conditions,  except as  enforceability  thereof may be limited by any applicable
bankruptcy, reorganization, insolvency or other Laws affecting creditors' rights
generally or by general principles of equity.

      (b) The  authorization,  issuance,  sale  and  delivery  of the  Purchased
Securities  and the  Underlying  Shares and the  execution  and  delivery of the
Documents and the performance by the Company of its obligations  thereunder have
each  been  authorized  by  all  requisite  action  (corporate,  shareholder  or
otherwise),  and no further  action is  required  by the  Company in  connection
therewith.

                                       4
<PAGE>

      3.3 Non-contravention.

      The execution,  delivery and  performance by the Company of the Documents,
the  consummation of the transactions  contemplated  thereby and compliance with
the  provisions  thereof,  including  the  issuance,  sale and  delivery  of the
Purchased  Securities and upon conversion or exercise  thereof,  the issuance of
the Underlying Shares,  have not and shall not, (a) violate any Law to which any
Assets of the Company or any Subsidiary is subject, (b) violate any provision of
the Company's Amended and Restated Articles of Incorporation and/or Bylaws or of
a  Subsidiary's  certificate  or  articles  of  incorporation,  bylaws  or other
organizational documents, (c) conflict with, result in a breach of, constitute a
default under,  result in the  acceleration of, create in any party the right to
accelerate,  terminate,  modify or  cancel,  or  require  any  notice  under any
contract,  decree,  judgment or order to which the Company or a Subsidiary  is a
party or by which any of the Assets of the Company or a Subsidiary is bound,  or
(d) result in the  imposition  of any Lien upon any of the Assets of the Company
or  Subsidiary,  except  in the case of  clause  (c) or (d) as would  not have a
Material Adverse Effect. To the Company's knowledge, neither the Company nor any
of its Subsidiaries is in violation of its Articles of Incorporation, By-laws or
other  organizational   documents  and  neither  the  Company  nor  any  of  its
Subsidiaries is in default (and no event has occurred which with notice or lapse
of time or both could put the  Company or any of its  Subsidiaries  in  default)
under,  and neither the Company nor any of its Subsidiaries has taken any action
or  failed  to  take  any  action  that  would  give to  others  any  rights  of
termination,   amendment,   acceleration  or  cancellation  of,  any  agreement,
indenture or  instrument  to which the Company or any of its  Subsidiaries  is a
party or by which any Assets of the Company or any of its  Subsidiaries is bound
or affected,  except for possible defaults as would not,  individually or in the
aggregate,  have a Material  Adverse  Effect.  To the Company's  knowledge,  the
businesses  of the Company and its  Subsidiaries  are not being  conducted,  and
shall  not be  conducted  so  long  as a  Purchaser  owns  any of the  Purchased
Securities,  in violation of any law,  rule or  regulation  of any  Governmental
Entity,  except as would  not have a  Material  Adverse  Effect.  Other  than as
specifically  contemplated  by this  Agreement and as required by the Securities
Act and any state  securities  laws, the Company has not been nor is required to
give any notice to, make any filing with, or obtain any  authorization,  consent
or approval of any  Governmental  Entity,  self regulatory  organization,  stock
market or any other Person for the valid authorization, issuance and delivery of
the Purchased  Securities and Underlying Shares or the authorization,  execution
and delivery of the Documents.

      3.4 Capitalization of the Company.

      (a) Immediately upon  consummation of the Initial Closing,  the authorized
capital stock of the Company shall consist of:

            (i) 100,000,000  shares of Common Stock, of which 24,730,807  shares
will be  issued  and  outstanding,  3,560,000  shares  of which  will  have been
reserved for  issuance  upon  conversion  in full of the  Purchased  Shares (not
including shares of Series B Preferred Stock issuable as dividends  thereon) and
890,000  shares of which will have been  reserved for issuance  upon exercise in
full of the Warrants; and

            (ii) 10,000,000  shares of Preferred Stock,  325,000 of which shares
will be designated  Series B Preferred Stock and 9.1 million of which shares are
designated Series A Preferred Stock.

      (b) Except as  contemplated  by the Documents,  there are, and immediately
after  consummation of each Closing there will be, no (i) outstanding  warrants,
options, calls, agreements,  convertible securities,  exchangeable securities or
other commitments or instruments  pursuant to which the Company is or may become
obligated to issue or sell any shares of its capital stock or other  securities,
or (ii)  preemptive  right,  right of first  refusal or similar  rights,  of any
character  whatsoever,  to purchase or otherwise  acquire  shares of the capital
stock or other  securities of the Company  pursuant to any provision of Law, the
Company's Bylaws or equivalent document or any contract to which the Company or,
to the Company's  knowledge,  any shareholder of the Company thereof is a party;
and, except as contemplated by the Documents,  there is, and,  immediately after
the consummation of the Closing there will be, no Lien (such as a right of first
refusal, right of first offer, proxy, voting trust, voting agreement, etc.) with
respect to the sale or voting of shares of capital or  securities of the Company
(whether outstanding or issuable).

                                       5
<PAGE>

      (c) All shares of the  capital  stock and other  securities  issued by the
Company (i) have been duly  authorized and validly  issued,  (ii) are fully paid
and  nonassessable and (iii) have been issued in transactions in accordance with
applicable Laws governing the sale and purchase of securities and any preemptive
rights and rights of first refusal.

      3.5 Financial Statements and Liabilities.

      (a) As of their respective dates, the financial  statements of the Company
included in the SEC Reports  complied as to form in all material  respects  with
applicable  accounting  requirements  and the published rules and regulations of
the SEC with respect  thereto.  Such financial  statements have been prepared in
accordance  with  United  States  generally  accepted   accounting   principles,
consistently  applied,  during  the  periods  involved  (except  (i)  as  may be
otherwise  indicated in such financial  statements or the notes thereto, or (ii)
in the case of unaudited interim statements,  to the extent they may not include
footnotes or may be condensed or summary  statements)  and fairly present in all
material  respects the  consolidated  financial  position of the Company and its
consolidated  Subsidiaries as of the dates thereof and the consolidated  results
of their  operations and cash flows for the periods then ended (subject,  in the
case of unaudited statements, to normal year-end audit adjustments).

      (b) The Company and its  Subsidiaries  have no  liability  or  obligation,
absolute or contingent  (individually or in the aggregate),  including,  without
limitation,  any tax  liability  due and payable,  which is not reflected on the
Balance Sheet,  other than (i)  liabilities  and  obligations  that would not be
required  to be  included  since  the date of the  Balance  Sheet  reflected  on
financial statements prepared in accordance with GAAP, which, individually or in
the aggregate,  are not material to the financial condition or operating results
of the Company,  or (ii) legal and fundraising costs incurred in connection with
the transactions  contemplated hereby, or (iii) liabilities that may have arisen
in the ordinary course of the Company's business  consistent with past practice,
which,  individually  or in the  aggregate,  are not  material to the  financial
condition or operating results of the Company.

      (c)  Subsequent  to the  date  of the  financial  statements,  none of the
Company and any of its Subsidiaries has made or changed any election, changed an
annual accounting period,  adopted or changed any accounting  method,  filed any
amended Tax Return, entered into any closing agreement, settled any Tax claim or
assessment,  surrendered any right to claim a refund of Taxes,  consented to any
extension or waiver of the  limitations  period  applicable  to any Tax claim or
assessment or taken any other similar  action  relating to the filing of any Tax
Return or the payment of any Tax.

                                       6
<PAGE>

      3.6 Legal Compliance.

      The Company and its  Subsidiaries  have complied in all Material  respects
with, all applicable Laws, Orders and permits,  and no Proceeding is pending or,
to the Company's knowledge, threatened, alleging any failure to so comply.

      3.7 Litigation.

      (a) Except as disclosed in the SEC Reports or as would not have a Material
Adverse Effect, individually or in the aggregate, there is no Proceeding pending
or, to the  Company's  knowledge,  threatened  by or against,  or affecting  the
Assets of, the Company (or any of its predecessors) or the Subsidiaries, and the
Company and the Subsidiaries  are not bound by any Order. No Proceeding  pending
or threatened by or against,  or affecting the Assets of, the Company (or any of
its  predecessors) or the  Subsidiaries  will or could reasonably be expected to
result in a Material Adverse Change.

      (b) Neither the Company nor any  Subsidiary,  nor, to the knowledge of the
Company, any director or officer thereof who has served as such since August 24,
2004,  is or has  been  the  subject  of any  Proceeding  involving  a claim  of
violation of or liability  under federal or state  securities laws or a claim of
breach of fiduciary duty. 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. Since August 24, 2004,
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.

      3.8 Environment, Safety and Permits.

      (a) The  Company  and each of its  Subsidiaries  is in  possession  of all
franchises,  grants,  authorizations,  licenses, permits, easements,  variances,
exemptions, consents, certificates, approvals and orders necessary to own, lease
and  operate  its  properties  and to carry on its  business  as it is now being
conducted (collectively,  the "Company Permits"), and there is no action pending
or,  to the  knowledge  of  the  Company,  threatened  regarding  suspension  or
cancellation  of any of the Company  Permits,  except in each case as would not,
individually or in the aggregate,  have a Material  Adverse Effect.  Neither the
Company  nor any of its  Subsidiaries  is in  conflict  with,  or in  default or
violation  of,  any of the  Company  Permits,  except  for any  such  conflicts,
defaults or violations which, individually or in the aggregate, would not have a
Material Adverse Effect.  Since August 24, 2004,  neither the Company nor any of
its  Subsidiaries  has  received  any  notification  with  respect  to  possible
conflicts,  defaults  or  violations  of  applicable  laws,  except for  notices
relating  to  possible  conflicts,  defaults  or  violations,  which  conflicts,
defaults or violations would not have a Material Adverse Effect.

      (b) Except as disclosed in Schedule 3.8 or as would not,  individually  or
in the aggregate, have a Material Adverse Effect:

                                       7
<PAGE>

            (i) The Company and its Subsidiaries hold and formerly held, and are
and have been, in compliance with, all Environmental Permits;

            (ii)  The  Company  and  its  Subsidiaries  are,  and  have  been in
compliance with all applicable Environmental Laws;

            (iii) Neither the Company nor any of its  Subsidiaries  has received
any Environmental Claim, and the Company is not aware, after due inquiry, of any
threatened  Environmental  Claim or of any  circumstances,  conditions or events
that could reasonably be expected to give rise to an Environmental Claim against
the Company or any of the Subsidiaries;

            (iv) There are no (1) underground storage tanks, (2) polychlorinated
biphenyls, (3) asbestos or asbestos-containing  materials, (4) urea-formaldehyde
insulation,  (5)  surface  impoundments,  (6)  landfills,  (7)  sewers or septic
systems  or (8)  Hazardous  Substances  present  at any  facility  currently  or
formerly owned, leased,  operated or otherwise used by the Company and/or any of
the Subsidiaries  that could reasonably be expected to give rise to liability of
any of the Company or its Subsidiaries under any Environmental Laws;

            (v) There are no past (including,  without limitation,  with respect
to assets or businesses formerly owned, leased or operated by the Company or any
Subsidiary) or present actions, activities, events, conditions or circumstances,
including  without  limitation  the  release,   threatened  release,   emission,
discharge  generation,  treatment,  storage or disposal of Hazardous Substances,
that could  reasonably  be expected to give rise to  liability of the Company or
any Subsidiary under any Environmental Laws or any contract or agreement;

            (vi) No modification,  revocation, reissuance, alteration, transfer,
or amendment of the Company's or any Subsidiary's  Environmental Permits, or any
review by, or  approval  of, any third  party of such  Environmental  Permits is
required in connection  with the execution or delivery of this  Agreement or the
consummation of the transactions  contemplated hereby or the continuation of the
business of the Company or any Subsidiary following such consummation;

            (vii) Hazardous  Substances  have not been  generated,  transported,
treated, stored, disposed of, released or threatened to be released at, on, from
or under any of the properties or facilities currently or formerly owned, leased
or otherwise used,  including without limitation for receipt of the Company's or
any Subsidiary's wastes, by the Company or any Subsidiary, in violation of or in
a manner or to a location  that could  reasonably  be  expected  to give rise to
liability under any Environmental Laws;

            (viii)  Neither  the Company nor any  Subsidiary  has  contractually
assumed any liabilities or obligations under any Environmental Laws;

            (ix)  The  Company  and each of the  Subsidiaries  have  accrued  or
otherwise provided, in accordance with and as required by GAAP, for all damages,
liabilities, penalties or costs that they may incur in connection with any claim
pending  or  threatened  against  them,  or any  requirement  that  is or may be
applicable  to them,  under any  Environmental  Laws,  and such accrual or other
provisions is reflected in the Company's most recent financial statements.

                                       8
<PAGE>

      3.9 Offering Exemption.

      Based in part upon and assuming the accuracy of the representations of the
Purchasers  in Article IV, the  offering,  sale and  issuance  of the  Purchased
Securities  have been,  are,  and will be,  exempt from  registration  under the
Securities Act, and such offering, sale and issuance is, and the issuance of the
Underlying Shares upon conversion of the Purchased Securities or exercise of the
Warrants,  as the case may be, will be exempt from registration under applicable
Federal and state  securities  and "blue sky" laws. The Company has made or will
make all requisite filings and has taken or will take all action necessary to be
taken to comply with such Federal and state securities or "blue sky" laws.

      3.10 Ownership of Purchased Securities.

      Upon issuance and delivery of the Purchased Securities (and the Underlying
Shares upon conversion or exercise  thereof) to each Purchaser  pursuant to this
Agreement in consideration of the Purchasers' payments therefore,  the Purchased
Securities and Underlying Shares will be duly and validly issued, fully paid and
non-assessable,  free and clear of all Liens and encumbrances or restrictions on
transfer,  other than (i)  restrictions  on transfer  set forth herein or in the
Documents,  and (ii) any liens,  charges or encumbrances created by a Purchaser.
The delivery of the Purchased  Securities to each  Purchaser at each Closing and
the  delivery  of the  Underlying  Shares  upon  conversion  or  exercise of the
Purchased  Securities  will  transfer  good and valid  title to, and  beneficial
ownership of, the Purchased  Securities and the Underlying Shares, other than as
a result of any encumbrances, Liens and claims described in clauses (i) and (ii)
of the preceding  sentence.  The issuance and sale of the  Purchased  Securities
pursuant  hereto (and the issuance of the Underlying  Shares upon the conversion
or exercise  thereof) will not give rise to any  preemptive  rights or rights of
first refusal that have not been complied with or waived.

      3.11 Securities Filings.

      Since  August 24,  2004,  the  Company has filed with the  Securities  and
Exchange  Commission  (the  "Commission")  all  documents  (the  "SEC  Reports")
required to be filed by it under the Securities  Exchange Act of 1934 as amended
(the "Exchange Act").  Each such SEC Report,  at the time of its filing,  was in
compliance with the requirements of its respective form as in effect on the date
such  document  was  filed  and  neither  the SEC  Reports,  nor  the  financial
statements  (and the notes  thereto)  included  therein,  contained  any  untrue
statement of a material  fact or omitted 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,  except to the extent
superseded by an SEC Report filed subsequently and prior to the date hereof.

      3.12 Transactions With Affiliates And Employees.

      Except as set forth in the SEC Reports,  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 $60,000
other than (a) for payment of salary or consulting  fees for services  rendered,
(b)  reimbursement  for  expenses  incurred on behalf of the Company and (c) for
other  employee  benefits,  including  stock option  agreements  under any stock
option plan of the Company.

                                       9
<PAGE>

      3.13 Internal Accounting Controls.

      The Company has established disclosure controls and procedures (as defined
in Exchange  Act Rules  13a-14 and 15d-14)  for the  Company and  designed  such
disclosure controls and procedures to ensure that material  information relating
to the Company,  including  its  Subsidiaries,  is made known to the  certifying
officers by others  within  those  entities,  particularly  during the period in
which  the  Company's  Form  10-KSB  or  10-QSB,  as the case  may be,  is being
prepared.  The Company's certifying officers have evaluated the effectiveness of
the  Company's  disclosure  controls and  procedures as of a date within 90 days
prior to the filing date of the most recently  filed  periodic  report under the
Exchange Act (such date, the "Evaluation  Date").  The Company  presented in its
most recently filed Form 10-KSB or Form 10-QSB the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
have been no  significant  changes in the Company's  internal  controls (as such
term is defined in Item 307(b) of Regulation S-K under the Exchange Act).  There
has been no disclosure to the Company's  Board,  Audit  Committee or independent
auditors of any significant  deficiencies or material  weakness in the design or
operation of interim  controls over  financial  reporting  requiring  corrective
action,  any  fraud  that  involves  management  or other  employees  who have a
significant role in the Company's or any  Subsidiary's  internal  controls,  any
material complaints or claims made relating to the Company's or any Subsidiary's
internal accounting  controls,  and any report by any attorney  representing the
Company or any of its  Subsidiaries  of a material  violation  of Law or similar
matters  (provided  that the foregoing  representations  shall be limited to the
knowledge  of the Company  with  respect to any of the  foregoing  that may have
occurred prior to August 24, 2004).

      3.14 Listing And Maintenance Requirements.

      (a) The Company's Common Stock is registered  pursuant to Section 12(g) of
the Exchange  Act, and the Company has taken no action  designed to, or which to
its knowledge is likely to have the effect of,  terminating the  registration of
the  Common  Stock  under the  Exchange  Act nor has the  Company  received  any
notification that the Commission is contemplating terminating such registration.

      (b) To the  Company's  knowledge,  the Company is not in  violation of the
listing  requirements of the  Over-the-Counter  Bulletin Board (the "OTCBB") and
does not  reasonably  anticipate  that the Common  Stock will be delisted by the
OTCBB in the foreseeable future. The Company and its Subsidiaries are unaware of
any facts or circumstances that might give rise to any of the foregoing.

                                       10
<PAGE>

      3.15 No Integrated Offering.

      Neither the Company,  nor, to the  knowledge  of the  Company,  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
Purchased  Securities to be integrated  with prior  offerings by the Company for
purposes  of  the  Securities  Act  or  any  applicable   shareholder   approval
provisions,  including,  without limitation,  under the rules and regulations of
any exchange or automated quotation system on which any of the securities of the
Company are listed or designated.

      3.16 No Investment Company.

      The  Company  is not,  and upon  the  issuance  and sale of the  Purchased
Securities as contemplated by this Agreement will not be an "investment company"
required  to be  registered  under  the  Investment  Company  Act  of  1940  (an
"Investment Company"). The Company is not controlled by an Investment Company.

      3.17 Insurance.

      The  Company  and each of its  Subsidiaries  are  insured by  insurers  of
recognized  financial  responsibility  against such losses and risks and in such
amounts as management of the Company believes to be prudent and customary in the
businesses in which the Company and its  Subsidiaries  are engaged.  Neither the
Company nor any such  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 at a cost that would not have a Material Adverse Effect.

      3.18 Labor Relations.

      (a) No material  labor dispute exists or, to the knowledge of the Company,
is imminent  with  respect to any of the  employees of the Company or any of its
Subsidiaries  or any unfair  practice  which,  individually or in the aggregate,
would result in a Material Adverse Effect.

      (b) (i)  There  has  been  no work  stoppage  due to  labor  disagreements
experienced  by the Company or any  Subsidiary,  (ii) no written notice has been
received from any  Governmental  Entity of any unfair labor  practice  charge or
complaint  against the Company  pending or threatened  before the National Labor
Relations Board or any other  Governmental  Entity with respect to the employees
of the Company or any Subsidiary and (iii) there is no labor strike, slowdown or
stoppage  actually  pending or, to the  Company's  knowledge,  threatened by the
employees of the Company or any  Subsidiary  against or affecting the Company or
any  Subsidiary,  except in any such case set forth in clauses (i) through (iii)
above as would not,  individually or in the aggregate,  have a Material  Adverse
Effect.

      3.19 Taxes.

      (a) Since August 24, 2004,  each of the Company and its  Subsidiaries  has
timely filed all Tax Returns that it was required to file under  applicable laws
and  regulations.  All such Tax  Returns are true,  correct and  complete in all
Material  respects and were prepared in Material  compliance with all applicable
laws and  regulations.  All Taxes due,  owed by, or with  respect to, any of the
Company  and its  Subsidiaries  (whether or not shown or  reportable  on any Tax
Return)  with  respect  to any  period  ending  on or  prior to the date of this
Agreement  have been timely paid. The amount of the liability of the Company and
each of its  Subsidiaries  for unpaid Taxes for all periods  ending on or before
the Closing Date shall not, in the  aggregate,  exceed the amount of the current
liability  accruals for Taxes  (excluding  reserves for deferred  Taxes) as such
accruals  are  reflected  on the  face of the  Balance  Sheet,  as  adjusted  in
accordance with past custom and practice for operations and  transactions in the
ordinary course of business of the Company and its  Subsidiaries  since the date
of the Balance Sheet.  Since the date of the Balance Sheet,  neither the Company
nor any of its  Subsidiaries  has incurred any  liability for Taxes arising from
extraordinary gains or losses outside the ordinary course of business.

                                       11
<PAGE>

      (b) The Company and each of its Subsidiaries  has properly  classified for
Tax purposes  all  employees,  consultants,  independent  contractors  and other
service providers,  and has timely made all filings and has withheld,  deposited
and paid all Taxes required to have been filed,  withheld,  deposited or paid in
connection  with  services  provided by such persons or in  connection  with any
amounts  paid or owing to any  other  person.  To the  Company's  knowledge,  no
deficiencies  for any Tax have been  assessed  against the Company or any of its
Subsidiaries,  none of the Company or any of its  Subsidiaries  has received any
notice of deficiency or proposed adjustment for any Taxes proposed,  asserted or
assessed by any Taxing authority against the Company or any of its Subsidiaries,
and no Tax  Return  of the  Company  or any of its  Subsidiaries  has ever  been
audited and, to the  knowledge of the Company and its  officers,  directors  and
employees,  there is no such audit  pending or  contemplated.  There is no Lien,
whether  imposed by any federal,  state,  local or foreign  Taxing  authority or
otherwise, outstanding against the assets, properties or business of the Company
or any of its  Subsidiaries,  other than any Lien for current  Taxes not yet due
and payable. To the Company's knowledge, no claim has been made since August 24,
2004  by  any  authority  in a  jurisdiction  where  the  Company  or any of its
Subsidiaries  does not file Tax Returns that it is or may be subject to Taxation
by that jurisdiction. Neither the Company nor any of its Subsidiaries has waived
any statute of  limitations  in respect of Taxes or agreed to any  extension  of
time with respect to a Tax assessment or deficiency, since August 24, 2004.

      (c) None of the Company and its  Subsidiaries  will be required to include
any item of income in, or exclude any item of deduction from, taxable income for
any  taxable  period (or portion  thereof)  ending  after the Closing  Date as a
result of any: (A) change in method of accounting for a taxable period ending on
or prior to the Closing  Date;  (B)  "closing  agreement"  as  described in Code
Section  7121 (or any  corresponding  or similar  provision  of state,  local or
foreign  income  Tax  law)  executed  on or  prior  to  the  Closing  Date;  (C)
intercompany  transactions  or any excess  loss  account  described  in Treasury
Regulations  under Code Section 1502 (or any  corresponding or similar provision
of state,  local or  foreign  income  Tax  law);  (D)  installment  sale or open
transaction disposition made on or prior to the Closing Date; (E) recapture of a
pre-Closing  Tax  benefit;  or (F)  prepaid  amount  received on or prior to the
Closing  Date.  No item  of  income  or  gain  reported  by the  Company  or any
Subsidiary of the Company for financial  accounting  purposes in any pre-Closing
period is required to be included in Taxable income for a post-Closing period.

                                       12
<PAGE>

      (d) To the Company's knowledge,  neither the Company nor any Subsidiary of
the  Company has any  liability  for or any  obligation  to pay the Taxes of any
person under Treasury  Regulation  Section 1.1502-6 (or any similar provision of
state,  local or foreign  law),  as a  transferee  or  successor,  by  contract,
pursuant to a Tax sharing agreement,  indemnification or guaranty, or otherwise.
Neither the Company nor any  Subsidiary of the Company has filed a consent under
Section 341(f) of the Code  concerning  collapsible  corporations,  or agreed to
have Section 341(f)(2) of the Code apply to any disposition of an asset owned by
the  Company  or any of its  Subsidiaries.  None of the  Company  nor any of its
Subsidiaries  has  engaged  in any  listed  transaction  as set forth in written
guidance or a notice issued by the Internal Revenue Service. None of the Company
nor its  Subsidiaries  are  foreign  entities  or conduct  business in a foreign
country.

      3.20 No Brokers.

      Except for Chadbourn  Securities,  Inc.,  Thomas  Weisel  Partners LLC and
First Montauk Securities Corp.  (collectively,  the "Placement Agents"), each of
whose fees and expenses are the sole responsibility of the Company, no broker or
finder has acted directly or indirectly for the Company in connection  with this
Agreement or the transactions  contemplated  hereby,  and no broker or finder is
entitled to any brokerage or finder's fee or other commission in respect thereof
based in any way on agreements,  arrangements  or  understandings  made by or on
behalf of the Company.  The Company may, however, be responsible for the payment
of fees and expenses to other brokers in connection with Additional Closings.

      3.21 Reliance.

      The Company  understands and confirms that the Purchasers will rely on the
representations  and  covenants  contained in this  Agreement  in acquiring  the
Purchased Securities.

      3.22 Employee Benefits.

      (a) The Company and its ERISA  Affiliates  have  performed in all material
respects all  obligations  required to be performed by them under each  Employee
Plan, and each Employee Plan has been established and maintained in all Material
respects  in  accordance  with its terms  and in  Material  compliance  with all
applicable laws,  statutes,  orders,  rules and  regulations,  including but not
limited to ERISA,  the Code,  COBRA, and HIPAA. Any Employee Plan intended to be
qualified  under Section  401(a) of the Code and each trust  intended to qualify
under  Section  501(a)  of the  Code has  obtained  a  favorable  determination,
notification, advisory and/or opinion letter, as applicable, as to its qualified
status from the IRS.  For each  Employee  Plan that is intended to be  qualified
under Section 401(a) of the Code, to the Company's knowledge,  there has been no
event,  condition or  circumstance  that has adversely  affected or is likely to
adversely affect such qualified status. No "prohibited  transaction," within the
meaning of Section  4975 of the Code or Sections  406 and 407 of ERISA,  and not
otherwise  exempt under  Section 408 of ERISA,  has occurred with respect to any
Employee  Plan.  There  are no  actions,  suits or  claims  pending,  or, to the
knowledge of the Company,  threatened  (other than routine  claims for benefits)
against any Employee Plan or against the assets of any Employee Plan.  There are
no audits,  inquiries or proceedings pending or, to the knowledge of the Company
or any ERISA Affiliates, threatened by the IRS or DOL, or any other governmental
authority with respect to any Employee  Plan.  Neither the Company nor any ERISA
Affiliate is subject to any Material penalty or tax with respect to any Employee
Plan under  Section  502(i) of ERISA or Sections  4975 through 4980 of the Code.
The Company and each ERISA  Affiliate  have  timely made all  contributions  and
other payments required by and due under the terms of each Employee Plan.

                                       13
<PAGE>

      (b)  Neither  the Company  nor any ERISA  Affiliate  has ever  maintained,
established,  sponsored,  participated  in, or contributed  to, any Pension Plan
that  is  subject  to  Title  IV of  ERISA  or  Section  412 of the  Code or any
Multiemployer Plan.

      (c) No Employee  Plan or  employment  agreement  provides,  or reflects or
represents  any  liability  to provide,  retiree  benefits to any person for any
reason,  except as may be required by COBRA or other applicable statute, and the
Company has not represented,  promised or contracted (whether in oral or written
form) to any Company Employee (either  individually or to Company Employees as a
group) or any other person that such Company  Employee(s)  or other person would
be provided with retiree benefits, except to the extent required by statute.

      (d)  Neither the  Company  nor any of its  Subsidiaries  is a party to any
agreement,  plan,  arrangement  or  other  contract  covering  any  employee  or
independent  contractor  or former  employee  or  independent  contractor  that,
considered   individually  or  considered   collectively  with  any  other  such
contracts,  would reasonably be expected to, give rise directly or indirectly to
the payment of any amount that would not be deductible  pursuant to Section 280G
or Section 162(m) the Code (or any comparable  provision of state or foreign tax
laws).  All Employee  Plans which are subject to Section 409A of the Code are in
Material compliance with Section 409A.

                                   ARTICLE IV
                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

      Each Purchaser,  individually and not jointly,  represents and warrants to
the Company as of the date hereof and as of each Closing Date, as follows:

      4.1 Authority.

      Such  Purchaser  has full power and authority to enter into and to perform
this Agreement and the Documents to which it is a party in accordance with their
terms and to consummate the transactions  contemplated hereby and thereby.  This
Agreement  and the  Documents to which it is a party have been duly executed and
delivered by such Purchaser and constitute valid and binding obligations of such
Purchaser each of which are enforceable in accordance with its respective  terms
and  conditions,  except as the  enforceability  thereof  may be  limited by any
applicable  bankruptcy,  reorganization,  insolvency  or  other  laws  affecting
creditor's  rights  generally  or by  general  principles  of  equity.  To  such
Purchaser's  knowledge,  the  execution  and  performance  of  the  transactions
contemplated  by this  Agreement  and the Documents  and  compliance  with their
provisions  by such  Purchaser:  (i)  will  not  violate  any  provision  of Law
applicable to such  Purchaser;  and (ii) will not conflict with or result in any
breach of any of the material terms,  conditions or provisions of, or constitute
a default under such Purchaser's partnership agreement, certificate of formation
or operating agreement,  or any indenture,  lease, agreement or other instrument
to which such  Purchaser is a party or by which it or any of its  properties  is
bound, or any decree, judgment, order, statute, rule or regulation applicable to
such Purchaser, which, in any such case would impair such Purchaser's ability to
purchase  the  Purchased  Securities  or otherwise  comply with its  obligations
hereunder.

                                       14
<PAGE>

      4.2 Experience.

      Such Purchaser is either an "accredited investor" as defined under Section
501 of the rules and regulations of the Commission under the Securities Act or a
Qualified Institutional Buyer (as defined in Rule 144A under the Securities Act)
and,  by virtue  of its  experience  in  evaluating  and  investing  in  private
placement  transactions of securities in companies similar to the Company,  such
Purchaser is capable of evaluating the merits and risks of its investment in the
Company and has the capacity to protect its own  interests.  Such  Purchaser has
had access to the Company's  senior  management  and has had the  opportunity to
conduct  such  due  diligence  review  as it has  deemed  appropriate  provided,
however, that the foregoing shall not alter, diminish or impair such Purchaser's
right or ability to rely upon any of the  representations  or  warranties of the
Company contained herein.

      4.3 Suitability of Investment.

      Such Purchaser has read the Company's Private  Placement  Memorandum dated
as of April 10, 2006 relating to the offering contemplated hereby, including all
of  the  attachments  thereto  (the  "Memorandum")  and  fully  understands  the
Memorandum  and the  terms of this  offering.  With  respect  to  individual  or
partnership tax and other economic  considerations  involved in this investment,
such  Purchaser  is not relying on the Company.  Such  Purchaser  has  carefully
considered  and has,  to the  extent  it  believes  such  discussion  necessary,
discussed with its professional legal, tax,  accounting,  and financial advisors
the suitability of an investment in the Purchased  Securities for its particular
tax and financial  situation and has  determined  that the Purchased  Securities
being  purchased  by it are a suitable  investment  for it. Such  Purchaser  has
carefully  reviewed  and  considered  the risk  factors  discussed  in the "Risk
Factors" section of the Memorandum prior to making an investment decision.

      4.4 Investment.

      Such  Purchaser  has not been formed solely for the purpose of making this
investment  (or, if it has been so formed,  all of the owners of such  Purchaser
are  themselves  accredited  investors),  and such  Purchaser is  acquiring  the
Purchased  Securities for  investment  for its own account,  not as a nominee or
agent,  and not  with the  view  to,  or for  resale  in  connection  with,  any
distribution  of any  part  thereof,  provided,  however,  that  by  making  the
representations  herein,  such  Purchaser  does  not  agree  to hold  any of the
Purchased  Securities  for any minimum or other  specific  term and reserves the
right to dispose of the Purchased  Securities at any time in accordance  with or
pursuant to a registration statement or otherwise in compliance with federal and
state securities laws. Such Purchaser  understands that the Purchased Securities
and the Underlying  Shares have not been registered  under the Securities Act or
applicable  state and other  securities  laws by reason of a specific  exemption
from the registration  provisions of the Securities Act and applicable state and
other  securities  laws,  the  availability  of which depends upon,  among other
things,  the bona fide nature of the investment  intent and the accuracy of such
Purchaser's representations as expressed herein.

                                       15
<PAGE>

      4.5 Patriot Act Compliance.

      In  order to  induce  the  Company  to  accept  the  subscription  of such
Purchaser,  such Purchaser  represents and confirms to the Company (on behalf of
the Company and the Placement  Agents) that the Purchaser is in compliance  with
the  Patriot  Act  requirements  and  standards  set forth on  Exhibit F annexed
hereto, which is incorporated by reference herein.

                                   ARTICLE V
                              ADDITIONAL AGREEMENTS

      5.1 Survival of Representations, Warranties and Agreements.

      All  representations  and  warranties  contained  herein shall survive the
Initial  Closing  for a period of 12 months  and all  covenants  and  agreements
contained  herein shall survive  until fully  discharged.  All  representations,
warranties,  covenants  and  agreements  made  herein by the  Company  or in any
certificate  delivered  at a Closing  shall be deemed  Material and to have been
relied upon by the Purchasers.

      5.2 Transaction Expenses and Taxes.

      (a) The  Company  and each  Purchaser  shall  bear  all of its  respective
expenses in connection  with the  negotiation,  preparation and execution of the
Documents.

      (b) All sales, use, transfer, stamp (including documentary stamp taxes, if
any),  excise,  recording,  franchise and other  similar  taxes or  governmental
charges with respect to the securities  issued pursuant hereto shall be borne by
the Company.

      (c) All transfer,  documentary,  sales, use, stamp, registration and other
such  Taxes  and  fees  (including  any  penalties  and  interest)  incurred  in
connection  with  this  Agreement  (including  any  corporate-level   gains  Tax
triggered  by the sale of the  Company's  stock,  and any similar tax imposed in
other  states or  subdivisions)  shall be paid by the Company  when due, and the
Company  shall,  at its own expense,  file all  necessary  Tax Returns and other
documentation with respect to all such transfer, documentary, sales, use, stamp,
registration and other Taxes and fees.

      5.3 Escrow of Funds.

      The Company and the Placement  Agents have  established  an escrow account
with the law firm of  Ellenoff  Grossman  & Schole  LLP which  firm has acted as
counsel only to First  Montauk  Securities  Corp.  in the offering of securities
contemplated  hereby.  Funds from each Purchaser shall be held in a non-interest
bearing account until accepted or rejected by the Company. Any subscription that
is  rejected,  whether in whole or in part,  will be promptly  returned  without
interest or deduction.

                                       16
<PAGE>

      5.4 Securities Laws.

      (a) The Company  agrees to timely file all documents  required to be filed
with the  Commission,  specifically,  a Form D (or  equivalent  form required by
applicable  state  law)  with  respect  to the  Purchased  Securities  if and as
required  under  Regulation D and any such forms or documents  under  applicable
state securities  laws,  including the filing of a form 99 under the laws of the
State of New York, to establish an exemption from registration.

      (b) Each certificate  representing the Purchased Shares and the Underlying
Shares shall bear a legend  containing  substantially  the following  legend (in
addition to any other legend required by law or applicable agreement):

            THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED
            (THE  "ACT"),  OR STATE  SECURITIES  LAWS AND  CANNOT BE
            OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
            REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM OR
            IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION  UNDER
            THE ACT AND APPLICABLE STATE SECURITIES LAWS.

      5.5 Reporting Matters.

      The Company agrees not to report any actual or deemed  non-cash  dividends
with  respect  to  the  Series  B  Preferred  Stock  to  the  Purchasers  or any
Governmental  Entity on IRS Form 1099-DIV or other  information  return,  unless
otherwise  instructed to do so in writing by a Governmental Entity in connection
with a  Proceeding  involving  the Company.  The Company  shall not withhold any
Taxes on any actual or deemed non-cash  dividends to the Purchasers with respect
to the Series B Preferred Stock, unless otherwise instructed to do so in writing
by a Governmental Entity in connection with a Proceeding  involving the Company.
The Company  agrees with each of the  Purchasers  that for Tax  purposes (i) the
issue  price of the  Series B  Preferred  Stock  will be $93.40 per share of the
Series B Preferred Stock paid by the Purchasers and that the issue price for the
Warrants  shall be $6.60 per share subject to the Warrants and (ii) the Series B
Preferred Stock will not be designated as debt.

                                   ARTICLE VI
                                  MISCELLANEOUS

      6.1 No Third Party Beneficiaries.

      Except as expressly  provided herein,  this Agreement shall not confer any
rights or remedies  upon any Person other than the parties and their  respective
successors and permitted assigns, personal  representatives,  heirs and estates,
as the case may be.

                                       17
<PAGE>

      6.2 Entire Agreement.

      This Agreement and the other  Documents  constitute  the entire  agreement
among  the  Parties  and  supersede  any  prior  understandings,  agreements  or
representations by or among the Parties,  written or oral, that may have related
in any way to the subject matter of any Document including,  without limitation,
any  letter  of  intent  dated as of or prior to the date  hereof,  between  the
Company and the Purchasers.

      6.3 Successors and Assigns.

      This  Agreement  shall be  binding  upon and inure to the  benefit  of the
Parties and their respective  successors and permitted assigns.  No party hereto
may assign either this Agreement or any of its rights, interests, or obligations
hereunder  without  the prior  written  approval  of the other  parties  hereto;
provided,  however, that any Purchaser may assign,  hypothecate or pledge any of
its rights under any of the  Documents  to (i) an  Affiliate of such  Purchaser,
(ii) any  Person  who  shall  acquire  substantially  all of the  assets of such
Purchaser or a majority in voting power of the capital  stock of such  Purchaser
(whether pursuant to a merger,  consolidation,  stock sale or otherwise),  (iii)
any lender of such Purchaser (or any agent therefore) for security  purposes and
the  assignment  thereof  by any  such  lender  or agent  to such  Purchaser  in
connection  with the  exercise  by any such lender or agent of all of its rights
and remedies as a secured creditor with respect  thereto,  or (iv) any person to
whom such Purchaser assigns or transfers any Purchased Securities, provided such
transferee  agrees in  writing to be bound,  with  respect  to the  transfer  of
Purchased Securities, by the provisions hereof that apply to the Purchasers.

      6.4 Counterparts.

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

      6.5 Notices.

      All notices, requests, demands, claims, and other communications hereunder
shall be in  writing  and shall be deemed to have been duly  given if  delivered
personally,  telecopied,  sent by  nationally  recognized  overnight  courier or
mailed by  registered  or certified  mail (return  receipt  requested),  postage
prepaid, to the parties at the following addresses (or at such other address for
a party as shall be specified by like notice):

                                       18
<PAGE>

                  If to the Company:

                  World Waste Technologies, Inc.
                  13520 Evening Creek Drive
                  Suite 130
                  San Diego, California 92128
                  Telephone:        (858) 391-3400
                  Facsimile:        (858) 486-3352
                  Attention:        CFO
                  with a copy to:

                  Troy & Gould Professional Corporation
                  1801 Century Park East, 16th Floor
                  Los Angeles, CA 90067
                  Telephone:        (310) 553-4441
                  Facsimile:        (310) 201-4746
                  Attention:        Lawrence Schnapp, Esq.

                  If to the  Purchasers,  to the  addresses  set  forth on the
                  signature pages hereto.

      All such  notices  and other  communications  shall be deemed to have been
given and  received  (i) in the case of personal  delivery,  on the date of such
delivery,  (ii) in the  case  of  delivery  by  facsimile,  on the  date of such
delivery,  (iii) in the case of  delivery  by  nationally  recognized  overnight
courier,  on the third  business day following  dispatch and (iv) in the case of
mailing, on the seventh business day following such mailing.

      6.6 Governing Law.

      THIS  AGREEMENT  WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE
DOMESTIC  LAWS OF THE STATE OF NEW YORK WITHOUT  GIVING  EFFECT TO ANY CHOICE OF
LAW  OR  CONFLICTING  PROVISION  OR  RULE  THAT  WOULD  CAUSE  THE  LAWS  OF ANY
JURISDICTION  OTHER THAN THE STATE OF NEW YORK TO BE APPLIED.  IN FURTHERANCE OF
THE  FOREGOING,  THE  INTERNAL  LAW OF THE  STATE OF NEW YORK WILL  CONTROL  THE
INTERPRETATION   AND  CONSTRUCTION  OF  THIS  AGREEMENT,   EVEN  IF  UNDER  SUCH
JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF
SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

      6.7 Submission to Jurisdiction; Waivers.

      The Company and each Purchaser irrevocably agrees that any legal action or
proceeding  with respect to this Agreement or for recognition and enforcement of
any  judgment  in  respect  hereof  brought  by any  other  party  hereto or its
successors  may be brought and  determined  in the Supreme Court of New York for
Kings County or the federal district court in the Southern District of New York,
and the Company and each Purchaser hereby irrevocably submits with regard to any
such action or proceeding  for itself and in respect to its property,  generally
and unconditionally,  to the nonexclusive  jurisdiction of the aforesaid courts.
The Company and each  Purchaser  hereby  irrevocably  waives,  and agrees not to
assert, by way of motion, as a defense, counterclaim or otherwise, in any action
or  proceeding  with  respect  to  this  Agreement,  (a) any  claim  that is not
personally  subject to the jurisdiction of the above-named courts for any reason
other than the failure to lawfully serve process, (b) that it or its property is
exempt or immune from  jurisdiction  of any such court or from any legal process
commenced in such courts (whether through service of notice, attachment prior to
judgment,  attachment in aid of execution of judgment,  execution of judgment or
otherwise),  and (c) to the fullest extent permitted by applicable law, that (i)
the suit,  action or proceeding in any such court is brought in an  inconvenient
forum,  (ii) the venue of such suit,  action or proceeding is improper and (iii)
this Agreement,  or the subject matter hereof, may not be enforced in or by such
courts.

                                       19
<PAGE>

      6.8 Amendments and Waivers; Purchasers Consent.

      No amendment of any provision of this Agreement  shall be valid unless the
same shall be in writing and signed by the Company and the holders of at least a
majority of the then-outstanding Purchased Shares. No waiver by any party hereto
of any default, misrepresentation,  or breach of warranty or covenant hereunder,
whether intentional or not, shall be deemed to extend to any prior or subsequent
default,  misrepresentation,  or breach of  warranty or  covenant  hereunder  or
affect in any way any rights  arising by virtue of any prior or subsequent  such
occurrence.

      6.9 Certain Definitions.

      "Affiliate"  means,  with  respect to any  Person,  any of (a) a director,
officer  or  shareholder  holding  5% or more of the  capital  stock (on a fully
diluted basis) of such Person,  (b) a spouse,  parent,  sibling or descendant of
such  Person (or a spouse,  parent,  sibling or  descendant  of any  director or
officer of such Person) and (c) any other Person  that,  directly or  indirectly
through one or more intermediaries,  controls,  or is controlled by, or is under
common  control with,  another  Person.  The term  "control"  includes,  without
limitation,  the possession,  directly or indirectly, of the power to direct the
management  and policies of a Person,  whether  through the  ownership of voting
securities, by contract or otherwise.

      "Assets"  means,  with respect to any Person,  all of the assets,  rights,
intellectual property, interests and other properties, real, personal and mixed,
tangible and  intangible,  of any nature  whatsoever,  either owned or leased by
such Person.

      "Balance  Sheet"  means  the  audited  consolidated  balance  sheet of the
Company as of December 31, 2005.

      "Board" shall mean the Board of Directors of the Company.

      "CERCLA"  means the United States  Comprehensive  Environmental  Response,
Compensation and Liability Act, 42 U.S.C ss. 9601 et seq., as amended.

                                       20
<PAGE>

      "Certificate  of  Determination"   means  the  Company's   Certificate  of
Determination  of  Rights,  Preferences  and  Privileges  of  the  8%  Series  B
Cumulative Redeemable Convertible  Participating Preferred Stock in effect as of
the Initial Closing in the form attached as Exhibit D hereto.

      "COBRA" shall mean the Consolidated  Omnibus Budget  Reconciliation Act of
1985,  as amended and as  codified in Section  4980B of the Code and Section 601
et. seq. of ERISA.

      "Company Employee" shall mean any current director, employee or consultant
of the Company or any ERISA Affiliate.

      "Documents" means this Agreement,  the Certificate of  Determination,  the
Warrants and the Registration Rights Agreement.

      "Employee Plan" shall mean any plan, program, policy, practice,  contract,
agreement  or  other   arrangement   providing  for   compensation,   severance,
termination  pay,   deferred   compensation,   performance   awards,   stock  or
stock-related awards, fringe benefits or other employee benefits or remuneration
of any kind,  whether  written,  unwritten  or  otherwise,  funded or  unfunded,
including without  limitation,  each "employee benefit plan," within the meaning
of Section  3(3) of ERISA  which is or has been,  within the past six (6) years,
maintained,  contributed to, or required to be contributed to, by the Company or
any ERISA Affiliate for the benefit of any Company Employee,  or with respect to
which  the  Company  or any ERISA  Affiliate  has or may have any  liability  or
obligation.

      "Environment"  means soil,  soil gas, land surface or  subsurface  strata,
surface  waters  (including  navigable  waters,  ocean waters,  streams,  ponds,
drainage  basins and  wetlands),  groundwater,  drinking  water  supply,  stream
sediments,  ambient air  (including  indoor air),  plant and animal life and any
other environmental medium or natural resource.

      "Environmental  Claim"  means any written or oral notice,  claim,  demand,
action,  suit,   complaint,   proceeding,   request  for  information  or  other
communication by any person alleging liability or potential liability (including
without  limitation  liability or potential  liability for investigatory  costs,
cleanup costs,  governmental response costs, natural resource damages,  property
damage,  personal injury, fines or penalties) arising out of, relating to, based
on or resulting from (i) the presence, discharge, emission release or threatened
release  of any  Hazardous  Substances  at any  location,  whether or not owned,
leased or  operated  by the  Company  or any  Subsidiary  or (ii)  circumstances
forming the basis of any violation or alleged violation of any Environmental Law
or  Environmental   Permit  or  (iii)  otherwise   relating  to  obligations  or
liabilities under any Environmental laws.

      "Environmental  Law"  means all laws,  rules,  regulations  or  guidelines
relating  to  pollution  or  protection  of  human  health  or the  Environment,
including,  without  limitation,  (a) laws relating to the Release or threatened
Release of Hazardous  Materials or other substances into the Environment and (b)
laws  relating  to  the  identification,  generation,  manufacture,  processing,
distribution,  use, treatment, storage, disposal, recovery, transport, transfer,
refinement,  production,  management or other handling of Hazardous Materials or
other substances.  Environmental Laws shall include, without limitation, CERCLA,
the Federal Water Pollution Control Act (33 U.S.C. ss. 1251 et seq.),  RCRA, the
Safe Drinking Water Act (21 U.S.C.  ss. 349, 42 U.S.C.  ss.ss.  201, 300f),  the
Toxic Substances Control Act (15 U.S.C. ss. 2601 et seq.), the Clean Air Act (42
U.S.C.  ss. 7401 et seq.),  the California  Health and Safety Code (ss. 25100 et
seq.,  ss. 39000 et seq.) as enacted  prior to the Closing Date and as in effect
on the Closing Date.

                                       21
<PAGE>

      "Environmental  Permits" means all permits,  licenses,  registrations  and
other  governmental  authorizations  required  for each of the  Company  and the
Subsidiaries  and the operations of each of the Company's and the  Subsidiaries'
facilities and otherwise to conduct its business under Environmental Laws.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended, and the rules and regulations promulgated thereunder.

      "ERISA  Affiliate" shall mean each Subsidiary of the Company and any other
person  or  entity  under  common  control  with  the  Company  or  any  of  its
Subsidiaries  within the meaning of Section 414(b),  (c), (m) or (o) of the Code
and the regulations issued thereunder.

      "GAAP" means  United  States  Generally  Accepted  Accounting  Principles,
consistently applied.

      "Governmental Entity" means any court,  administrative  agency,  tribunal,
department,   bureau  or   commission   or  other   governmental   authority  or
instrumentality,  domestic or foreign, Federal, state or local or any arbitrator
or arbitral body.

      "Hazardous Substances" means any dangerous,  toxic or hazardous pollutant,
contaminant,  chemical, waste, material or substance, including those defined in
or  governed  by any  federal,  state or local law,  statute,  code,  ordinance,
regulation,  rule or other requirement,  relating to such substance or otherwise
relating  to the  environment  or human  health  or  safety,  including  without
limitation any waste, material,  substance,  pollutant or contaminant that might
cause any  injury to human  health  or safety or to the  environmental  or might
subject the Company or any of its  Subsidiaries  to any  imposition  of costs or
liability under any Environmental Law.

      "HIPAA" shall mean the Health Insurance Portability and Accountability Act
of 1996, as amended.

      "IRS"  shall  mean the  United  States  Internal  Revenue  Service  or any
successor thereto.

      "Law" means any  constitution,  law,  statute,  treaty,  rule,  directive,
requirement or regulation or Order of any Governmental Entity.

      "Lien" means any security interest,  pledge,  bailment (in the nature of a
pledge or for purposes of  security),  mortgage,  deed of trust,  the grant of a
power  to  confess  judgment,  conditional  sale or  title  retention  agreement
(including  any lease in the nature  thereof),  charge,  encumbrance,  easement,
reservation,  restriction, cloud, right of first refusal or first offer, option,
or other similar arrangement or interest in real or personal property.

                                       22
<PAGE>

      "Material,"  "Material Adverse Change" and "Material Adverse Effect" shall
mean the occurrence of any single event, or any series of related events, or set
of related  circumstances,  which  would have a material  adverse  effect on the
condition  (financial or other),  business,  results of operations,  cash flows,
ability to conduct business or Assets of the Company and the Subsidiaries  taken
as a whole.

      "Multiemployer   Plan"   shall  mean  any   "Pension   Plan"  which  is  a
"multiemployer plan," as defined in Section 3(37) of ERISA.

      "Orders" means judgments, writs, decrees, injunctions,  orders, compliance
agreements  or  settlement  agreements  of or with any  Governmental  Entity  or
arbitrator.

      "Pension Plan" shall mean each Employee Plan that is an "employee  pension
benefit plan," within the meaning of Section 3(2) of ERISA.

      "Person"  shall be construed  broadly and shall include an  individual,  a
partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture,  an unincorporated  organization,  or a
Governmental  Entity  (or  any  department,  agency,  or  political  subdivision
thereof).

      "Proceeding"  means  any  action,  suit,  proceeding,  complaint,  charge,
hearing,  inquiry  or  investigation  before or by a  Governmental  Entity or an
arbitrator or arbitral body.

      "Registration   Rights   Agreement"   means  the  Amended   and   Restated
Registration Rights Agreement dated as of the date hereof among the Company, the
Purchasers and the other parties thereto,  in form and substance attached hereto
as Exhibit C.

      "Release"  means and includes any  spilling,  leaking,  pumping,  pouring,
injecting,  emitting,  emptying,  discharging,  depositing,  escaping, leaching,
migrating (including passive migration),  dumping,  disposing or other releasing
into the Environment or the workplace,  whether intentional or unintentional and
otherwise defined in any Environmental Law.

      "Tax" or  "Taxes"  means all  federal,  state,  local and  foreign  taxes,
levies,  deficiencies  and other  assessments  and  charges of  whatever  nature
(including  income,  franchise,  property,  sales, use, gross receipts,  excise,
license,  occupation,  recording,  value added,  transfer,  withholding,  backup
withholding,   payroll,  employment,   severance,  stamp,  occupation,  premium,
windfall  profits,  environmental,  capital  stock,  profits,  social  security,
unemployment, disability, real property, personal property, real property gains,
registration,  alternative  or add-on  minimum  and  estimated  taxes;  workers'
compensation premiums,  customs duties and other governmental charges; and other
obligations  of  the  same  nature  as or of a  nature  similar  to  any  of the
foregoing)  imposed  by any  taxing  authority,  as  well as any  obligation  to
contribute  to the  payment of taxes  determined  on a  consolidated,  combined,
unitary or similar basis with respect to the Company or any of its Subsidiaries,
including any interest, penalty (civil or criminal) or addition thereto, whether
disputed  or not,  as well as any  expenses  incurred  in  connection  with  the
determination, settlement or litigation of any such tax liability.

                                       23
<PAGE>

      "Tax  Return"  means  any  federal,   state,   local  or  foreign  return,
declaration,  report,  claim for  refund,  amended  return,  excise tax  report,
declaration of estimated tax, information return or statement relating to Taxes,
and any schedule or attachment thereto,  filed or maintained,  or required to be
filed  or  maintained,  in  connection  with  the  calculation,   determination,
assessment or collection  of any Tax, and  including any amendment  thereof,  as
well as, where permitted or required, consolidated, combined, unitary or similar
returns  for any  group of  entities  that  include  the  Company  or any of its
Subsidiaries;  and reports with respect to backup withholding and other payments
to third parties.

      6.10 Incorporation of Schedules and Exhibits.

      The Schedule and Exhibits  identified in this  Agreement are  incorporated
herein by reference and made a part hereof.

      6.11 Construction.

      Where specific  language is used to clarify by example a general statement
contained herein, such specific language shall not be deemed to modify, limit or
restrict in any manner the  construction  of the general  statement  to which it
relates.  The language used in this Agreement shall be deemed to be the language
chosen by the parties  hereto to express  their  mutual  intent,  and no rule of
strict construction shall be applied against any party.

      6.12 Interpretation.

      Accounting  terms used but not  otherwise  defined  herein  shall have the
meanings  given to them under GAAP.  As used in this  Agreement  (including  all
Schedules,  Exhibits and amendments hereto), the masculine,  feminine and neuter
gender and the  singular or plural  number shall be deemed to include the others
whenever the context so requires.  References to Articles and Sections  refer to
articles and sections of this Agreement.  Similarly, references to Schedules and
Exhibits  refer  to  schedules  and  exhibits,  respectively,  attached  to this
Agreement.  Unless the  content  requires  otherwise,  words  such as  "hereby,"
"herein," "hereinafter," "hereof" "hereto," "hereunder" and words of like import
refer to this  Agreement.  The Article and Section  headings  contained  in this
Agreement are inserted for convenience  only and shall not affect in any way the
meaning or interpretation of this Agreement.

      A Person (other than an individual)  will be deemed to have "knowledge" of
a particular  fact or other matter if any individual who is serving,  or who has
at any time served, as a director,  officer,  partner,  executor,  or trustee of
such Person (or in any similar  capacity) has, or at any time had,  knowledge of
such fact or other  matter,  except that the Company shall not be deemed to have
knowledge of a particular  fact or matter solely as a result of the knowledge of
any  individual  who served as an officer or director  of the  Company  prior to
August 24,  2004 but has not served as an officer or  director of the Company at
any time subsequent to August 24, 2004.

      6.13 Remedies.

      The  parties  hereto  shall  each have and  retain  all other  rights  and
remedies  existing  in  their  favor  at  Law  or  equity,  including,   without
limitation,  any actions for specific  performance  and/or  injunctive  or other
equitable relief (including,  without  limitation,  the remedy of rescission) to
enforce or prevent any violations of the provisions of this  Agreement.  Without
limiting the generality of the foregoing,  the Company hereby agrees that in the
event the  Company  fails to convey any number of  Purchased  Securities  to the
Purchasers in accordance with the provisions of this Agreement or any Underlying
Shares in  accordance  with the terms of any  Purchased  Securities  pursuant to
which they are issuable,  the  Purchasers'  remedy at law may be inadequate.  In
such event, the Purchasers shall have the right, in addition to all other rights
and remedies it may have,  to specific  performance  of the  obligations  of the
Company to convey such number of Purchased  Securities or Underlying  Shares, as
the case may be.

                                       24
<PAGE>

6.14     Severability.

      It is the desire and intent of the  Parties  that the  provisions  of this
Agreement  be  enforced  to the fullest  extent  permissible  under the laws and
public policies  applied in each  jurisdiction  in which  enforcement is sought.
Accordingly,  if any particular provision of this Agreement shall be adjudicated
by a court of competent jurisdiction to be invalid,  prohibited or unenforceable
for any reason, such provision,  as to such jurisdiction,  shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting the
validity or  enforceability  of this  Agreement  or  affecting  the  validity or
enforceability of such provision in any other jurisdiction.  Notwithstanding the
foregoing,  if such  provision  could  be more  narrowly  drawn  so as not to be
invalid, prohibited or unenforceable in such jurisdiction,  it shall, as to such
jurisdiction,   be  so  narrowly  drawn,   without  invalidating  the  remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

      6.15 Delivery by Facsimile.

      This  Agreement  and any  amendments  hereto,  to the  extent  signed  and
delivered by means of a facsimile machine,  shall be considered to have the same
binding legal effect as if it were the original signed version thereof delivered
in person.  At the request of any party  hereto,  each other party  hereto shall
re-execute  original forms and deliver them to the other party.  No party hereto
shall  raise the use of a facsimile  machine to deliver a signature  or the fact
that any signature or agreement or instrument was  transmitted  or  communicated
through  the  use of a  facsimile  machine  as a  defense  to the  formation  or
enforceability  of this  Agreement and each such party  forever  waives any such
defense.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto have  executed  this  Securities
Purchase Agreement as of the date first above written.

                                        THE COMPANY:
                                        ------------

                                        WORLD WASTE TECHNOLOGIES, INC.,
                                        a California corporation

                                        By:_____________________________________
                                            Name:    David Rane
                                            Title: Chief Financial Officer

                                       26
<PAGE>

                                        THE PURCHASERS:
                                        ---------------

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________
                                        Address:

                                        Telephone:______________________________
                                        Facsimile:______________________________
                                        Attention:

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________
                                        Address:

                                        Telephone:______________________________
                                        Facsimile:______________________________
                                        Attention:

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________
                                        Address:

                                        Telephone:______________________________
                                        Facsimile:______________________________
                                        Attention:

                                       27
<PAGE>

                                    EXHIBIT A

                               ALLOCATION SCHEDULE

<TABLE>
<CAPTION>
                                              Number of Shares
                                                 of Series B          Number of          Purchase Price
Name                                           Preferred Stock         Warrants           of Securities
-------------------------------------------   ----------------    ------------------    -----------------
<S>                                                     <C>                  <C>            <C>
Jerome Belson                                           10,000               100,000        $1,000,000.00
Anthony Trobiano Trust                                   1,875                18,750          $187,500.00
Michael S. Klein                                           250                 2,500           $25,000.00
Martin S. & Beata Beck                                     850                 8,500           $85,000.00
Linden Growth Partners                                  20,000               200,000        $2,000,000.00
Michael A. Stahl                                           500                 5,000           $50,000.00
Barry Berger                                             2,800                28,000          $280,000.00
C. Ames & Donna B. Byrd                                    500                 5,000           $50,000.00
Robert Karsten                                           1,500                15,000          $150,000.00
Robert Karsten Ira  Rollover                             2,500                25,000          $250,000.00
Kevin J. Martin                                          1,000                10,000          $100,000.00
The Gerald Brauser Irrevocable Trust                    12,500               125,000        $1,250,000.00
G. Michael Dart                                          5,000                50,000          $500,000.00
The Lindsay E. Dart Separate Property Trst               2,500                25,000          $250,000.00
Daniel J. Walsh                                          1,000                10,000          $100,000.00
Steven T. Kelley                                           500                 5,000           $50,000.00
Susan Brauser                                            1,500                15,000          $150,000.00
Paul Becker                                              1,000                10,000          $100,000.00
Glider Funding Corp.                                     1,500                15,000          $150,000.00
Israel Cohen & Susan C Cohen Rev Trst                      400                 4,000           $40,000.00
Frank Lagano                                             2,375                23,750          $237,500.00
Frank Lagano, Jr.                                          250                 2,500           $25,000.00
Jonathan Kohn                                            1,500                15,000          $150,000.00
Marvin Sheeber                                             800                 8,000           $80,000.00
Robert & Susan Moran                                       625                 6,250           $62,500.00
</TABLE>

                                      A -1
<PAGE>

<TABLE>
<CAPTION>

                                              Number of Shares
                                                 of Series B          Number of          Purchase Price
Name                                           Preferred Stock         Warrants           of Securities
-------------------------------------------   ----------------    ------------------    -----------------
<S>                                                        <C>                 <C>             <C>
Mayer Ballas Md Pc Profit Share Plan                       250                 2,500           $25,000.00
John Jeffrey & Patricia Bachman                            250                 2,500           $25,000.00
The General's Group LLC                                    300                 3,000           $30,000.00
Maurice Abadi                                              625                 6,250           $62,500.00
Richard Metzger                                            250                 2,500           $25,000.00
Ronald Depinho                                             250                 2,500           $25,000.00
Cary Fields                                              1,250                12,500          $125,000.00
The Lawrence Gorelick DDS PC PS                            250                 2,500           $25,000.00
Robert & Patricia Harran                                   250                 2,500           $25,000.00
Helen Desantis                                             250                 2,500           $25,000.00
Marvin J. Slepian                                          500                 5,000           $50,000.00
Michael C. Brown Trust                                   2,500                25,000          $250,000.00
Douglas Pennock                                            500                 5,000           $50,000.00
Dino Liso                                                  250                 2,500           $25,000.00
Tooker Family Trust                                      1,000                10,000          $100,000.00
Jane M. Teller                                             500                 5,000           $50,000.00
Narvin Lichfield                                           750                 7,500           $75,000.00
Ronald & Alberta Weinisch                                  500                 5,000           $50,000.00
Kenneth Childrey                                           500                 5,000           $50,000.00
Israel Berkowitz                                           500                 5,000           $50,000.00
E. Gerald Kay                                              475                 4,750           $47,500.00
Kranenberg 1998 Trust                                    2,500                25,000          $250,000.00
Joseph B. Childrey                                       1,375                13,750          $137,500.00

                                      Total             89,000               890,000        $8,900,000.00
</TABLE>

                                       A -2
<PAGE>

                                    EXHIBIT F
                                    ---------

                   PATRIOT ACT COMPLIANCE CONDITIONS AND TERMS
                   -------------------------------------------

      (a) Such Purchaser represents that no holder of any beneficial interest in
such Purchaser's  equity securities of the Company (each a "Beneficial  Interest
Holder") and, no Related Person (in the case the undersigned is an entity) is or
will be:

            (1)   A person or entity whose name appears on the list of specially
                  designated  nationals  and blocked  persons  maintained by the
                  Office of Foreign Asset Control from time to time;

            (2)   A Foreign Shell Bank; or

            (3)   A person or entity resident in or whose subscription funds are
                  transferred  from or through  an account in a  Non-Cooperative
                  Jurisdiction.

      (b) Such Purchaser represents that the bank or other financial institution
(the "Wiring  Institution")  from which such Purchaser's  funds will be wired is
located in a FATF Country.

      (c) Such Purchaser represents that:

            (1)   Neither  it, any  Beneficial  Interest  Holder nor any Related
                  Person  (in the case of the  undersigned  is an  entity)  is a
                  Senior  Foreign  Political  Figure,  any  member  of a  Senior
                  Foreign  Political  Figure's  Immediate  Family  or any  Close
                  Associate of a Senior Foreign Political Figure; or

            (2)   Neither  it, any  Beneficial  Interest  Holder nor any Related
                  Person (in the case the  undersigned is an entity) is resident
                  in,  or  organized   or   chartered   under  the  laws  of,  a
                  jurisdiction  that has been designated by the Secretary of the
                  Treasury  under  Section  311 or 312 of the USA PATRIOT Act as
                  warranting special measures due to money laundering concerns.

            (3)   Its investment  funds do not originate  from, nor will they be
                  routed through, an account maintained at a Foreign Shell Bank,
                  an "offshore bank," or a bank organized or chartered under the
                  laws of a Non-Cooperative Jurisdiction.

Section 7 Definitions
---------------------

Close Associate: With respect to a Senior Foreign Political Figure, a person who
is widely and publicly  known  internationally  to maintain an  unusually  close
relationship with the Senior Foreign Political Figure, and includes a person who
is in a position to conduct  substantial  domestic and  international  financial
transactions on behalf of the Senior Foreign Political Figure.

FATF: The Financial Action Task Force on Money Laundering.

                                      F - 1
<PAGE>

FATF Country:  A country that is a member of FATF. As of September 1, 2003,  the
countries which are members of FATF are: Argentina; Australia; Austria; Belgium;
Brazil; Canada; Denmark;  Finland;  France; Germany; Greece; Hong Kong; Iceland;
Ireland;  Italy;  Japan;  Luxembourg;  Mexico;  Kingdom of the Netherlands;  New
Zealand; Norway; Portugal;  Singapore; South Africa; Spain; Sweden; Switzerland;
Turkey; United Kingdom and United States. For a current list of FATF members see
http://www1.oecd.org/fatf/Members_en.htm.

Foreign Bank: An organization  that (i) is organized under the laws of a country
outside the United  States;  (ii) engages in the  business of banking;  (iii) is
recognized  as a bank by the  bank  supervisory  or  monetary  authority  of the
country of its  organization  or principal  banking  operations;  (iv)  receives
deposits to a substantial extent in the regular course of its business;  and (v)
has the power to accept demand deposits,  but does not include the U.S. branches
or agencies of a foreign bank.

Foreign  Shell Bank: A Foreign Bank without a Physical  Presence in any country,
but does not include a Regulated Affiliate.

Government  Entity:  Any government or any state,  department or other political
subdivision   thereof,   or  any  governmental   body,   agency,   authority  or
instrumentality   in  any  jurisdiction   exercising   executive,   legislative,
regulatory or administrative functions of or pertaining to government.

Immediate Family:  With respect to a Senior Foreign Political Figure,  typically
includes the political figure's parents, siblings, spouse, children and in-laws.

Non-Cooperative  Jurisdiction:  Any foreign  country or territory  that has been
designated  as   non-cooperative   with  international   anti-money   laundering
principles or procedures by an intergovernmental group or organization,  such as
FATF,  of which the United  States is a member and with  which  designation  the
United States  representative to the group or organization  continues to concur.
See  http://www1.oecd.org/fatf/NCCT_en.htm  for FATF's  list of  non-cooperative
countries and territories.

Physical Presence:  A place of business that is maintained by a Foreign Bank and
is  located  at a fixed  address,  other  than  solely a post  office  box or an
electronic  address,  in a country in which the Foreign  Bank is  authorized  to
conduct banking activities,  at which location the Foreign Bank: (a) employs one
or more  individuals  on a full-time  basis;  (b)  maintains  operating  records
related to its  banking  activities;  and (c) is subject  to  inspection  by the
banking authority that licensed the Foreign Bank to conduct banking activities.

Publicly Traded Company:  An entity whose  securities are listed on a recognized
securities  exchange or quoted on an automated  quotation  system in the U.S. or
country other than a Non-Cooperative  Jurisdiction or a wholly-owned  subsidiary
of such an entity.

Qualified Plan: A tax qualified pension or retirement plan in which at least 100
employees participate that is maintained by an employer that is organized in the
U.S. or is a U.S. Government Entity.

                                      F - 2

<PAGE>

Regulated  Affiliate:  A Foreign  Shell  Bank  that:  (a) is an  affiliate  of a
depository institution,  credit union, or Foreign Bank that maintains a Physical
Presence in the U.S. or a foreign country, as applicable;  and (b) is subject to
supervision by a banking  authority in the country  regulating  such  affiliated
depository institution, credit union, or Foreign Bank.

Related  Person:  With  respect to any entity,  any interest  holder,  director,
senior officer, trustee, beneficiary or grantor of such entity; provided that in
the case of an entity that is a Publicly Traded Company or a Qualified Plan, the
term "Related  Person" shall exclude any interest holder holding less than 5% of
any class of securities of such Publicly  Traded  Company and  beneficiaries  of
such Qualified Plan.

Senior  Foreign   Political   Figure:   A  senior  official  in  the  executive,
legislative,  administrative,  military  or  judicial  branches  of  a  non-U.S.
government  (whether  elected or not),  a senior  official  of a major  non-U.S.
political  party,  or  a  senior   executive  of  a  non-U.S.   government-owned
corporation.  In  addition,  a Senior  Foreign  Political  Figure  includes  any
corporation,  business  or other  entity  that has been  formed  by,  or for the
benefit of, a Senior Foreign Political Figure.

USA PATRIOT ACT: The Uniting and Strengthening  America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act) Act of 2001
(Pub. L. No. 107-56).

                                      F - 3================================================================================

                          SECURITIES PURCHASE AGREEMENT

                            DATED AS OF MAY 25, 2006

                                  BY AND AMONG

                          WORLD WASTE TECHNOLOGIES, INC

                                       AND

                           THE INVESTORS NAMED HEREIN

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                 Page

<S>                                                                               <C>
ARTICLE I     AUTHORIZATION AND SALE OF THE SECURITIES.............................1

       1.1    Authorization of Issuance and Sale of the Securities.................1
       1.2    Sale and Issuance....................................................1
       1.3    The Initial Closing..................................................1
       1.4    Additional Closings..................................................2
       1.5    Senior Debentures....................................................2
       1.6    Use of Proceeds......................................................3

ARTICLE II    THE CLOSINGS.........................................................3

       2.1    Deliveries at Each Closing...........................................3

ARTICLE III   REPRESENTATIONS AND WARRANTIES OF THE COMPANY........................4

       3.1    Subsidiaries; Organization; Good Standing; Qualification and Power...4
       3.2    Authorization........................................................4
       3.3    Non-contravention....................................................4
       3.4    Capitalization of the Company........................................5
       3.5    Financial Statements and Liabilities.................................6
       3.6    Legal Compliance.....................................................7
       3.7    Litigation...........................................................7
       3.8    Environment, Safety and Permits......................................7
       3.9    Offering Exemption...................................................9
       3.10   Ownership of Purchased Securities....................................9
       3.11   Securities Filings...................................................9
       3.12   Transactions With Affiliates And Employees...........................9
       3.13   Internal Accounting Controls........................................10
       3.14   Listing And Maintenance Requirements................................10
       3.15   No Integrated Offering..............................................11
       3.16   No Investment Company...............................................11
       3.17   Insurance...........................................................11
       3.18   Labor Relations.....................................................11
       3.19   Taxes...............................................................11
       3.20   No Brokers..........................................................13
       3.21   Reliance............................................................13
       3.22   Employee Benefits...................................................13

ARTICLE IV    REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS....................14

       4.1    Authority...........................................................14
       4.2    Experience..........................................................15
       4.3    Suitability of Investment...........................................15
       4.4    Investment..........................................................15
       4.5    Patriot Act Compliance..............................................16
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<CAPTION>

<S>                                                                              <C>
ARTICLE V     ADDITIONAL AGREEMENTS...............................................16

       5.1    Survival of Representations, Warranties and Agreements..............16
       5.2    Transaction Expenses and Taxes......................................16
       5.3    Escrow of Funds.....................................................16
       5.4    Securities Laws.....................................................17
       5.5    Reporting Matters...................................................17

ARTICLE VI    MISCELLANEOUS.......................................................17

       6.1    No Third Party Beneficiaries........................................17
       6.2    Entire Agreement....................................................18
       6.3    Successors and Assigns..............................................18
       6.4    Counterparts........................................................18
       6.5    Notices.............................................................18
       6.6    Governing Law.......................................................19
       6.7    Submission to Jurisdiction; Waivers.................................19
       6.8    Amendments and Waivers; Purchasers Consent..........................20
       6.9    Certain Definitions.................................................20
       6.10   Incorporation of Schedules and Exhibits.............................24
       6.11   Construction........................................................24
       6.12   Interpretation......................................................24
       6.13   Remedies............................................................24
       6.14   Severability........................................................25
       6.15   Delivery by Facsimile...............................................25
</TABLE>

                                      -ii-

<PAGE>

Schedules
---------

DISCLOSURE SCHEDULE

Exhibits
--------

Exhibit A     -     Allocation Schedule
Exhibit B     -     Form of Warrant
Exhibit C     -     Form of Registration Rights Agreement
Exhibit D     -     Certificate of Determination
Exhibit E     -     Form of Legal Opinion
Exhibit F           Patriot Act Compliance Terms

                                     -iii-

<PAGE>

      THIS SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of May 25,
2006, by and among World Waste Technologies, Inc., a California corporation (the
"Company")  and each of the  purchasers  set  forth on the  Allocation  Schedule
attached  hereto  as  Exhibit  A (each,  a  "Purchaser"  and  collectively,  the
"Purchasers").

      WHEREAS,  subject to the terms and conditions set forth in this Agreement,
the Company  desires to sell to the  Purchasers,  and the  Purchasers  desire to
purchase  from the Company,  up to 161,000  shares of the  Company's 8% Series B
Cumulative Redeemable Convertible  Participating  Preferred Stock (the "Series B
Preferred Stock"), together with common stock purchase warrants.

      NOW,  THEREFORE,  in  consideration of the mutual promises herein made and
the representations,  warranties,  and covenants herein contained, and for other
good and  valuable  consideration,  the receipt and adequacy of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:

                                   ARTICLE I
                                AUTHORIZATION AND
                             SALE OF THE SECURITIES

      1.1 Authorization of Issuance and Sale of the Securities.

      Subject to the terms and conditions hereof, the Company has authorized (i)
the  issuance and sale of up to 161,000  shares of Series B Preferred  Stock and
warrants to acquire up to 1,610,000 shares of Common Stock (the "Warrants"),  at
the  Closings (as defined  herein),  for an  aggregate  purchase  price of up to
$16,100,000,  and (ii) the issuance of shares of the Company's Common Stock upon
conversion  of such  shares of Series B  Preferred  Stock and  exercise  of such
Warrants (the "Underlying Shares").

      1.2 Sale and Issuance.

      Subject to the terms and  conditions  hereof,  at the Initial  Closing (as
defined below),  each Purchaser  severally and not jointly,  agrees to purchase,
and the  Company  agrees to sell and  issue to such  Purchaser,  that  number of
shares of Series B Preferred Stock (the "Initial Purchased Shares") and warrants
(the "Initial  Warrants" and, together with the Initial  Purchased  Shares,  the
"Initial Purchased Securities"),  as set forth opposite such Purchaser's name on
Exhibit A attached hereto.

      1.3 The Initial Closing.

      (a) Simultaneously with the execution and delivery of this Agreement,  the
initial closing hereunder (the "Initial  Closing") with respect to the issuance,
sale and delivery of the Initial Purchased Securities shall take place (the date
on which the Initial Closing occurs, the "Initial Closing Date").

      (b) At the Initial  Closing,  on the terms and  subject to the  conditions
contained  herein,  (i)  the  Company  shall  issue,  sell  and  deliver  to the
Purchasers,  and the  Purchasers  shall  purchase  from the Company,  all of the
Initial Purchased  Securities free and clear of any liens,  claims,  charges and
encumbrances  whatsoever and with no  restrictions  on the voting rights thereof
and other incidents of record and beneficial  ownership  pertaining thereto, and
(ii)  the  Purchasers  shall  deliver  to  the  Company,  by  wire  transfer  of
immediately  available  funds  to an  account  designated  by the  Company,  the
aggregate  purchase  price (the  "Purchase  Price") for such  Initial  Purchased
Securities  in the  individual  amounts  set  forth on the  Allocation  Schedule
attached hereto as Exhibit A.

<PAGE>

      1.4 Additional Closings.

      In the event that less than 161,000 shares of Series B Preferred Stock are
issued and sold at the Initial Closing,  one or more additional  closings (each,
an "Additional Closing" and together the "Additional Closings") may occur on any
day on or  prior to May 30,  2006,  for the  sale of up to the  balance  of such
shares and related  Warrants,  to such persons as the Company may determine,  so
long as the sale of such securities at each such Additional  Closing is effected
pursuant  to the terms of this  Agreement  (or a separate  agreement  with terms
substantially  similar  to the terms  hereof)  and at a price per share  paid in
cash, no less than the per share Purchase Price.  Each Additional  Closing shall
be effected in the manner set forth in Section  1.3.  Any  individual  or entity
purchasing securities at an Additional Closing (each, an "Additional Purchaser,"
and collectively "Additional Purchasers") shall execute a signature page to this
Agreement (or such  substantially  similar  separate  agreement) and the Company
shall,  as applicable  update  Exhibit A hereto to include each such  Additional
Purchaser, at which time each such Additional Purchasers shall be deemed to be a
"Purchaser"  hereunder for purposes of this  Agreement and all other  agreements
contemplated  hereby,  and a "Holder" under the Rights  Agreement (as defined in
Section  2.1)  (or  such  separate  registration  rights  agreement  with  terms
substantially  similar to the terms of the  Rights  Agreement).  At or  promptly
following  each  Additional  Closing,  (i)  the  Company  will  deliver  to  the
Additional  Purchasers  the  various  certificates,  instruments  and  documents
referred  to in Section  2.1(a)  hereof,  (ii) the  Additional  Purchasers  will
deliver to the Company  the  various  certificates,  instruments  and  documents
referred to in Section 2.1(b) below, and (iii) the Company shall deliver to each
Additional  Purchaser  a  share  certificate  and  Warrant  registered  in  such
Additional  Purchaser's name representing the shares of Series B Preferred Stock
and Warrants  that such  Additional  Purchaser is to receive from the Company at
such  Additional  Closing to be set forth opposite such  Additional  Purchaser's
name on the  updated  Exhibit A hereto  (or in a  separate  agreement),  against
payment of the purchase price  therefore by check or wire transfer to an account
designated by the Company or other means acceptable to the Company.  The Initial
Purchased  Securities and the securities,  if any,  purchased at each Additional
Closing, are referred to herein as the "Purchased Securities."

      1.5 Senior Debentures.

      Each Purchaser  acknowledges  that the Company may,  simultaneous with the
Initial Closing or any Additional  Closing,  issue and sell additional shares of
Series B Preferred Stock to holders of the Company's  senior secured  debentures
(the "Senior  Debentures"),  if and to the extent such holders elect to exchange
such Senior Debentures for shares of Series B Preferred pursuant to the terms of
the agreements entered into in connection with the Senior Debentures.

                                       2
<PAGE>

      1.6 Use of Proceeds.

      The  Company  will  use  the  net  proceeds  of the  Purchased  Securities
purchased by the  Purchasers  pursuant to this Agreement for repaying the Senior
Debentures (to the extent such  Debentures have not been exchanged for shares of
Series B Preferred Stock, and the balance, if any, for commissioning,  operation
and process  improvement  investments by the Company's wholly owned  subsidiary,
World  Waste of Anaheim,  Inc.,  at Plant  Number One  located at 2740  Coronado
Street,  Anaheim,  California,  for working capital,  and for general  corporate
purposes.

                                   ARTICLE II
                                  THE CLOSINGS

      2.1 Deliveries at Each Closing.

      (a)  As a  condition  to  each  Purchaser's  obligation  to  purchase  its
respective   portion  of  the   Purchased   Securities,   at  each  Closing  all
representations  and  warranties  set  forth in  Article  III  shall be true and
correct in each case, as of the date of this Agreement (other than those that by
their terms are to be true and correct as of a  specified  date,  in which case,
such  representations and warranties shall be true and correct as of such date),
and the Company shall deliver to or on behalf of each Purchaser:

            (i) a stock  certificate  registered in the name of such  Purchaser,
representing the Purchased Shares being purchased by such Purchaser  pursuant to
Section  1.3(b)  (provided  that  the  Company  may at its  option  deliver  the
foregoing promptly following such Closing);

            (ii) a Warrant  Certificate in the form attached hereto as Exhibit B
in the name of such Purchaser  representing the Warrants being purchased by such
Purchaser  pursuant  to Section  1.3(b)  (provided  that the  Company may at its
option deliver the foregoing promptly following such Closing);

            (iii) a counterpart of the Amended and Restated  Registration Rights
Agreement,  in the form attached  hereto as Exhibit C (the "Rights  Agreement"),
duly  executed by the Company and the other  shareholders  of the Company  party
thereto; and

            (iv) a  legal  opinion  of Troy & Gould  substantially  in the  form
attached hereto as Exhibit E.

            (b) As a condition to the Company's obligation to sell the Purchased
Securities to each Purchaser, at each Closing all representations and warranties
set forth in Article IV shall be true and correct in all material  respects,  in
each case, as of the date of this Agreement, and each Purchaser shall deliver to
the Company:

            (i) the Purchase Price for the Purchased  Securities being purchased
by such Purchaser pursuant to Section 1.3(b);

            (ii) a counterpart  of the Rights  Agreement,  duly executed by such
Purchaser; and

            (iii) a duly executed Form W-9 or W-8, as appropriate.

                                       3
<PAGE>

                                  ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      Except as set forth on the  Disclosure  Schedule  attached  hereto,  or as
disclosed  in any of the SEC Reports (as defined in Section  3.11),  the Company
represents  and warrants to the  Purchasers as of the date hereof and as of each
Closing Date as follows:

      3.1 Subsidiaries; Organization; Good Standing; Qualification and Power.

      (a) The Company has the subsidiaries (each a "Subsidiary") as set forth in
the SEC Reports (as defined  below).  The Company owns,  directly or indirectly,
all of the capital stock of each  Subsidiary,  free and clear of any liens,  and
all of the issued and outstanding shares of capital stock of each Subsidiary are
duly  authorized,  validly  issued,  fully  paid,  non-assessable  and  free  of
preemptive and similar rights to subscribe for or purchase securities.

      (b) The Company and each  Subsidiary is duly organized,  validly  existing
and in good standing under the laws of the jurisdiction of its  incorporation or
organization (as applicable),  has all requisite power to own, lease and operate
its Assets and to carry on its business as  presently  being  conducted,  and is
qualified to do business and in good standing in every jurisdiction in which the
failure  to so  qualify or be in good  standing  would  have a Material  Adverse
Effect.

      3.2 Authorization.

      (a) The  Company  has all  requisite  power and  authority  to execute and
deliver each Document and any and all  instruments  necessary or  appropriate in
order to  effectuate  fully the terms and  conditions  of each  Document and all
related  transactions and to perform its obligations  under each Document.  Each
Document  has  been  duly  authorized  by  all  necessary   action   (corporate,
shareholder  or otherwise) on the part of the Company,  and no further action is
required by the Company in connection therewith, and each Document has been duly
executed and  delivered by the Company,  and  constitutes  the valid and legally
binding obligation of the Company,  enforceable in accordance with its terms and
conditions,  except as  enforceability  thereof may be limited by any applicable
bankruptcy, reorganization, insolvency or other Laws affecting creditors' rights
generally or by general principles of equity.

      (b) The  authorization,  issuance,  sale  and  delivery  of the  Purchased
Securities  and the  Underlying  Shares and the  execution  and  delivery of the
Documents and the performance by the Company of its obligations  thereunder have
each  been  authorized  by  all  requisite  action  (corporate,  shareholder  or
otherwise),  and no further  action is  required  by the  Company in  connection
therewith.

                                       4
<PAGE>

      3.3 Non-contravention.

      The execution,  delivery and  performance by the Company of the Documents,
the  consummation of the transactions  contemplated  thereby and compliance with
the  provisions  thereof,  including  the  issuance,  sale and  delivery  of the
Purchased  Securities and upon conversion or exercise  thereof,  the issuance of
the Underlying Shares,  have not and shall not, (a) violate any Law to which any
Assets of the Company or any Subsidiary is subject, (b) violate any provision of
the Company's Amended and Restated Articles of Incorporation and/or Bylaws or of
a  Subsidiary's  certificate  or  articles  of  incorporation,  bylaws  or other
organizational documents, (c) conflict with, result in a breach of, constitute a
default under,  result in the  acceleration of, create in any party the right to
accelerate,  terminate,  modify or  cancel,  or  require  any  notice  under any
contract,  decree,  judgment or order to which the Company or a Subsidiary  is a
party or by which any of the Assets of the Company or a Subsidiary is bound,  or
(d) result in the  imposition  of any Lien upon any of the Assets of the Company
or  Subsidiary,  except  in the case of  clause  (c) or (d) as would  not have a
Material Adverse Effect. To the Company's knowledge, neither the Company nor any
of its Subsidiaries is in violation of its Articles of Incorporation, By-laws or
other  organizational   documents  and  neither  the  Company  nor  any  of  its
Subsidiaries is in default (and no event has occurred which with notice or lapse
of time or both could put the  Company or any of its  Subsidiaries  in  default)
under,  and neither the Company nor any of its Subsidiaries has taken any action
or  failed  to  take  any  action  that  would  give to  others  any  rights  of
termination,   amendment,   acceleration  or  cancellation  of,  any  agreement,
indenture or  instrument  to which the Company or any of its  Subsidiaries  is a
party or by which any Assets of the Company or any of its  Subsidiaries is bound
or affected,  except for possible defaults as would not,  individually or in the
aggregate,  have a Material  Adverse  Effect.  To the Company's  knowledge,  the
businesses  of the Company and its  Subsidiaries  are not being  conducted,  and
shall  not be  conducted  so  long  as a  Purchaser  owns  any of the  Purchased
Securities,  in violation of any law,  rule or  regulation  of any  Governmental
Entity,  except as would  not have a  Material  Adverse  Effect.  Other  than as
specifically  contemplated  by this  Agreement and as required by the Securities
Act and any state  securities  laws, the Company has not been nor is required to
give any notice to, make any filing with, or obtain any  authorization,  consent
or approval of any  Governmental  Entity,  self regulatory  organization,  stock
market or any other Person for the valid authorization, issuance and delivery of
the Purchased  Securities and Underlying Shares or the authorization,  execution
and delivery of the Documents.

      3.4 Capitalization of the Company.

      (a) Immediately upon  consummation of the Initial Closing,  the authorized
capital stock of the Company shall consist of:

            (i) 100,000,000  shares of Common Stock, of which 24,730,807  shares
will be  issued  and  outstanding,  6,440,000  shares  of which  will  have been
reserved for issuance upon conversion in full of the Purchased  Shares (plus the
shares of Common Stock underlying future Series B Preferred Stock dividends) and
1,610,000  shares of which will have been reserved for issuance upon exercise in
full of the Warrants; and

            (ii) 10,000,000  shares of Preferred Stock,  500,000 of which shares
will be designated  Series B Preferred Stock and 9.1 million of which shares are
designated Series A Preferred Stock.

      (b) Except as  contemplated  by the Documents,  there are, and immediately
after  consummation of each Closing there will be, no (i) outstanding  warrants,
options, calls, agreements,  convertible securities,  exchangeable securities or
other commitments or instruments  pursuant to which the Company is or may become
obligated to issue or sell any shares of its capital stock or other  securities,
or (ii)  preemptive  right,  right of first  refusal or similar  rights,  of any
character  whatsoever,  to purchase or otherwise  acquire  shares of the capital
stock or other  securities of the Company  pursuant to any provision of Law, the
Company's Bylaws or equivalent document or any contract to which the Company or,
to the Company's  knowledge,  any shareholder of the Company thereof is a party;
and, except as contemplated by the Documents,  there is, and,  immediately after
the consummation of the Closing there will be, no Lien (such as a right of first
refusal, right of first offer, proxy, voting trust, voting agreement, etc.) with
respect to the sale or voting of shares of capital or  securities of the Company
(whether outstanding or issuable).

                                       5
<PAGE>

      (c) All shares of the  capital  stock and other  securities  issued by the
Company (i) have been duly  authorized and validly  issued,  (ii) are fully paid
and  nonassessable and (iii) have been issued in transactions in accordance with
applicable Laws governing the sale and purchase of securities and any preemptive
rights and rights of first refusal.

      3.5 Financial Statements and Liabilities.

      (a) As of their respective dates, the financial  statements of the Company
included in the SEC Reports  complied as to form in all material  respects  with
applicable  accounting  requirements  and the published rules and regulations of
the SEC with respect  thereto.  Such financial  statements have been prepared in
accordance  with  United  States  generally  accepted   accounting   principles,
consistently  applied,  during  the  periods  involved  (except  (i)  as  may be
otherwise  indicated in such financial  statements or the notes thereto, or (ii)
in the case of unaudited interim statements,  to the extent they may not include
footnotes or may be condensed or summary  statements)  and fairly present in all
material  respects the  consolidated  financial  position of the Company and its
consolidated  Subsidiaries as of the dates thereof and the consolidated  results
of their  operations and cash flows for the periods then ended (subject,  in the
case of unaudited statements, to normal year-end audit adjustments).

      (b) The Company and its  Subsidiaries  have no  liability  or  obligation,
absolute or contingent  (individually or in the aggregate),  including,  without
limitation,  any tax  liability  due and payable,  which is not reflected on the
Balance Sheet,  other than (i)  liabilities  and  obligations  that would not be
required  to be  included  since  the date of the  Balance  Sheet  reflected  on
financial statements prepared in accordance with GAAP, which, individually or in
the aggregate,  are not material to the financial condition or operating results
of the Company,  or (ii) legal and fundraising costs incurred in connection with
the transactions  contemplated hereby, or (iii) liabilities that may have arisen
in the ordinary course of the Company's business  consistent with past practice,
which,  individually  or in the  aggregate,  are not  material to the  financial
condition or operating results of the Company.

      (c)  Subsequent  to the  date  of the  financial  statements,  none of the
Company and any of its Subsidiaries has made or changed any election, changed an
annual accounting period,  adopted or changed any accounting  method,  filed any
amended Tax Return, entered into any closing agreement, settled any Tax claim or
assessment,  surrendered any right to claim a refund of Taxes,  consented to any
extension or waiver of the  limitations  period  applicable  to any Tax claim or
assessment or taken any other similar  action  relating to the filing of any Tax
Return or the payment of any Tax.

                                       6
<PAGE>

      3.6 Legal Compliance.

      The Company and its  Subsidiaries  have complied in all Material  respects
with, all applicable Laws, Orders and permits,  and no Proceeding is pending or,
to the Company's knowledge, threatened, alleging any failure to so comply.

      3.7 Litigation.

      (a) Except as disclosed in the SEC Reports or as would not have a Material
Adverse Effect, individually or in the aggregate, there is no Proceeding pending
or, to the  Company's  knowledge,  threatened  by or against,  or affecting  the
Assets of, the Company (or any of its predecessors) or the Subsidiaries, and the
Company and the Subsidiaries  are not bound by any Order. No Proceeding  pending
or threatened by or against,  or affecting the Assets of, the Company (or any of
its  predecessors) or the  Subsidiaries  will or could reasonably be expected to
result in a Material Adverse Change.

      (b) Neither the Company nor any  Subsidiary,  nor, to the knowledge of the
Company, any director or officer thereof who has served as such since August 24,
2004,  is or has  been  the  subject  of any  Proceeding  involving  a claim  of
violation of or liability  under federal or state  securities laws or a claim of
breach of fiduciary duty. 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. Since August 24, 2004,
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.

      3.8 Environment, Safety and Permits.

      (a) The  Company  and each of its  Subsidiaries  is in  possession  of all
franchises,  grants,  authorizations,  licenses, permits, easements,  variances,
exemptions, consents, certificates, approvals and orders necessary to own, lease
and  operate  its  properties  and to carry on its  business  as it is now being
conducted (collectively,  the "Company Permits"), and there is no action pending
or,  to the  knowledge  of  the  Company,  threatened  regarding  suspension  or
cancellation  of any of the Company  Permits,  except in each case as would not,
individually or in the aggregate,  have a Material  Adverse Effect.  Neither the
Company  nor any of its  Subsidiaries  is in  conflict  with,  or in  default or
violation  of,  any of the  Company  Permits,  except  for any  such  conflicts,
defaults or violations which, individually or in the aggregate, would not have a
Material Adverse Effect.  Since August 24, 2004,  neither the Company nor any of
its  Subsidiaries  has  received  any  notification  with  respect  to  possible
conflicts,  defaults  or  violations  of  applicable  laws,  except for  notices
relating  to  possible  conflicts,  defaults  or  violations,  which  conflicts,
defaults or violations would not have a Material Adverse Effect.

      (b) Except as disclosed in Schedule 3.8 or as would not,  individually  or
in the aggregate, have a Material Adverse Effect:

                                       7
<PAGE>

            (i) The Company and its Subsidiaries hold and formerly held, and are
and have been, in compliance with, all Environmental Permits;

            (ii)  The  Company  and  its  Subsidiaries  are,  and  have  been in
compliance with all applicable Environmental Laws;

            (iii) Neither the Company nor any of its  Subsidiaries  has received
any Environmental Claim, and the Company is not aware, after due inquiry, of any
threatened  Environmental  Claim or of any  circumstances,  conditions or events
that could reasonably be expected to give rise to an Environmental Claim against
the Company or any of the Subsidiaries;

            (iv) There are no (1) underground storage tanks, (2) polychlorinated
biphenyls, (3) asbestos or asbestos-containing  materials, (4) urea-formaldehyde
insulation,  (5)  surface  impoundments,  (6)  landfills,  (7)  sewers or septic
systems  or (8)  Hazardous  Substances  present  at any  facility  currently  or
formerly owned, leased,  operated or otherwise used by the Company and/or any of
the Subsidiaries  that could reasonably be expected to give rise to liability of
any of the Company or its Subsidiaries under any Environmental Laws;

            (v) There are no past (including,  without limitation,  with respect
to assets or businesses formerly owned, leased or operated by the Company or any
Subsidiary) or present actions, activities, events, conditions or circumstances,
including  without  limitation  the  release,   threatened  release,   emission,
discharge  generation,  treatment,  storage or disposal of Hazardous Substances,
that could  reasonably  be expected to give rise to  liability of the Company or
any Subsidiary under any Environmental Laws or any contract or agreement;

            (vi) No modification,  revocation, reissuance, alteration, transfer,
or amendment of the Company's or any Subsidiary's  Environmental Permits, or any
review by, or  approval  of, any third  party of such  Environmental  Permits is
required in connection  with the execution or delivery of this  Agreement or the
consummation of the transactions  contemplated hereby or the continuation of the
business of the Company or any Subsidiary following such consummation;

            (vii) Hazardous  Substances  have not been  generated,  transported,
treated, stored, disposed of, released or threatened to be released at, on, from
or under any of the properties or facilities currently or formerly owned, leased
or otherwise used,  including without limitation for receipt of the Company's or
any Subsidiary's wastes, by the Company or any Subsidiary, in violation of or in
a manner or to a location  that could  reasonably  be  expected  to give rise to
liability under any Environmental Laws;

            (viii)  Neither  the Company nor any  Subsidiary  has  contractually
assumed any liabilities or obligations under any Environmental Laws;

            (ix)  The  Company  and each of the  Subsidiaries  have  accrued  or
otherwise provided, in accordance with and as required by GAAP, for all damages,
liabilities, penalties or costs that they may incur in connection with any claim
pending  or  threatened  against  them,  or any  requirement  that  is or may be
applicable  to them,  under any  Environmental  Laws,  and such accrual or other
provisions is reflected in the Company's most recent financial statements.

                                       8
<PAGE>

      3.9 Offering Exemption.

      Based in part upon and assuming the accuracy of the representations of the
Purchasers  in Article IV, the  offering,  sale and  issuance  of the  Purchased
Securities  have been,  are,  and will be,  exempt from  registration  under the
Securities Act, and such offering, sale and issuance is, and the issuance of the
Underlying Shares upon conversion of the Purchased Securities or exercise of the
Warrants,  as the case may be, will be exempt from registration under applicable
Federal and state  securities  and "blue sky" laws. The Company has made or will
make all requisite filings and has taken or will take all action necessary to be
taken to comply with such Federal and state securities or "blue sky" laws.

      3.10 Ownership of Purchased Securities.

      Upon issuance and delivery of the Purchased Securities (and the Underlying
Shares upon conversion or exercise  thereof) to each Purchaser  pursuant to this
Agreement in consideration of the Purchasers' payments therefore,  the Purchased
Securities and Underlying Shares will be duly and validly issued, fully paid and
non-assessable,  free and clear of all Liens and encumbrances or restrictions on
transfer,  other than (i)  restrictions  on transfer  set forth herein or in the
Documents,  and (ii) any liens,  charges or encumbrances created by a Purchaser.
The delivery of the Purchased  Securities to each  Purchaser at each Closing and
the  delivery  of the  Underlying  Shares  upon  conversion  or  exercise of the
Purchased  Securities  will  transfer  good and valid  title to, and  beneficial
ownership of, the Purchased  Securities and the Underlying Shares, other than as
a result of any encumbrances, Liens and claims described in clauses (i) and (ii)
of the preceding  sentence.  The issuance and sale of the  Purchased  Securities
pursuant  hereto (and the issuance of the Underlying  Shares upon the conversion
or exercise  thereof) will not give rise to any  preemptive  rights or rights of
first refusal that have not been complied with or waived.

      3.11 Securities Filings.

      Since  August 24,  2004,  the  Company has filed with the  Securities  and
Exchange  Commission  (the  "Commission")  all  documents  (the  "SEC  Reports")
required to be filed by it under the Securities  Exchange Act of 1934 as amended
(the "Exchange Act").  Each such SEC Report,  at the time of its filing,  was in
compliance with the requirements of its respective form as in effect on the date
such  document  was  filed  and  neither  the SEC  Reports,  nor  the  financial
statements  (and the notes  thereto)  included  therein,  contained  any  untrue
statement of a material  fact or omitted 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,  except to the extent
superseded by an SEC Report filed subsequently and prior to the date hereof.

      3.12 Transactions With Affiliates And Employees.

      Except as set forth in the SEC Reports,  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 $60,000
other than (a) for payment of salary or consulting  fees for services  rendered,
(b)  reimbursement  for  expenses  incurred on behalf of the Company and (c) for
other  employee  benefits,  including  stock option  agreements  under any stock
option plan of the Company.

                                       9
<PAGE>

      3.13 Internal Accounting Controls.

      The Company has established disclosure controls and procedures (as defined
in Exchange  Act Rules  13a-14 and 15d-14)  for the  Company and  designed  such
disclosure controls and procedures to ensure that material  information relating
to the Company,  including  its  Subsidiaries,  is made known to the  certifying
officers by others  within  those  entities,  particularly  during the period in
which  the  Company's  Form  10-KSB  or  10-QSB,  as the case  may be,  is being
prepared.  The Company's certifying officers have evaluated the effectiveness of
the  Company's  disclosure  controls and  procedures as of a date within 90 days
prior to the filing date of the most recently  filed  periodic  report under the
Exchange Act (such date, the "Evaluation  Date").  The Company  presented in its
most recently filed Form 10-KSB or Form 10-QSB the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
have been no  significant  changes in the Company's  internal  controls (as such
term is defined in Item 307(b) of Regulation S-K under the Exchange Act).  There
has been no disclosure to the Company's  Board,  Audit  Committee or independent
auditors of any significant  deficiencies or material  weakness in the design or
operation of interim  controls over  financial  reporting  requiring  corrective
action,  any  fraud  that  involves  management  or other  employees  who have a
significant role in the Company's or any  Subsidiary's  internal  controls,  any
material complaints or claims made relating to the Company's or any Subsidiary's
internal accounting  controls,  and any report by any attorney  representing the
Company or any of its  Subsidiaries  of a material  violation  of Law or similar
matters  (provided  that the foregoing  representations  shall be limited to the
knowledge  of the Company  with  respect to any of the  foregoing  that may have
occurred prior to August 24, 2004).

      3.14 Listing And Maintenance Requirements.

      (a) The Company's Common Stock is registered  pursuant to Section 12(g) of
the Exchange  Act, and the Company has taken no action  designed to, or which to
its knowledge is likely to have the effect of,  terminating the  registration of
the  Common  Stock  under the  Exchange  Act nor has the  Company  received  any
notification that the Commission is contemplating terminating such registration.

      (b) To the  Company's  knowledge,  the Company is not in  violation of the
listing  requirements of the  Over-the-Counter  Bulletin Board (the "OTCBB") and
does not  reasonably  anticipate  that the Common  Stock will be delisted by the
OTCBB in the foreseeable future. The Company and its Subsidiaries are unaware of
any facts or circumstances that might give rise to any of the foregoing.

                                       10
<PAGE>

      3.15 No Integrated Offering.

      Neither the Company,  nor, to the  knowledge  of the  Company,  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
Purchased  Securities to be integrated  with prior  offerings by the Company for
purposes  of  the  Securities  Act  or  any  applicable   shareholder   approval
provisions,  including,  without limitation,  under the rules and regulations of
any exchange or automated quotation system on which any of the securities of the
Company are listed or designated.

      3.16 No Investment Company.

      The  Company  is not,  and upon  the  issuance  and sale of the  Purchased
Securities as contemplated by this Agreement will not be an "investment company"
required  to be  registered  under  the  Investment  Company  Act  of  1940  (an
"Investment Company"). The Company is not controlled by an Investment Company.

      3.17 Insurance.

      The  Company  and each of its  Subsidiaries  are  insured by  insurers  of
recognized  financial  responsibility  against such losses and risks and in such
amounts as management of the Company believes to be prudent and customary in the
businesses in which the Company and its  Subsidiaries  are engaged.  Neither the
Company nor any such  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 at a cost that would not have a Material Adverse Effect.

      3.18 Labor Relations.

      (a) No material  labor dispute exists or, to the knowledge of the Company,
is imminent  with  respect to any of the  employees of the Company or any of its
Subsidiaries  or any unfair  practice  which,  individually or in the aggregate,
would result in a Material Adverse Effect.

      (b) (i)  There  has  been  no work  stoppage  due to  labor  disagreements
experienced  by the Company or any  Subsidiary,  (ii) no written notice has been
received from any  Governmental  Entity of any unfair labor  practice  charge or
complaint  against the Company  pending or threatened  before the National Labor
Relations Board or any other  Governmental  Entity with respect to the employees
of the Company or any Subsidiary and (iii) there is no labor strike, slowdown or
stoppage  actually  pending or, to the  Company's  knowledge,  threatened by the
employees of the Company or any  Subsidiary  against or affecting the Company or
any  Subsidiary,  except in any such case set forth in clauses (i) through (iii)
above as would not,  individually or in the aggregate,  have a Material  Adverse
Effect.

      3.19 Taxes.

      (a) Since August 24, 2004,  each of the Company and its  Subsidiaries  has
timely filed all Tax Returns that it was required to file under  applicable laws
and  regulations.  All such Tax  Returns are true,  correct and  complete in all
Material  respects and were prepared in Material  compliance with all applicable
laws and  regulations.  All Taxes due,  owed by, or with  respect to, any of the
Company  and its  Subsidiaries  (whether or not shown or  reportable  on any Tax
Return)  with  respect  to any  period  ending  on or  prior to the date of this
Agreement  have been timely paid. The amount of the liability of the Company and
each of its  Subsidiaries  for unpaid Taxes for all periods  ending on or before
the Closing Date shall not, in the  aggregate,  exceed the amount of the current
liability  accruals for Taxes  (excluding  reserves for deferred  Taxes) as such
accruals  are  reflected  on the  face of the  Balance  Sheet,  as  adjusted  in
accordance with past custom and practice for operations and  transactions in the
ordinary course of business of the Company and its  Subsidiaries  since the date
of the Balance Sheet.  Since the date of the Balance Sheet,  neither the Company
nor any of its  Subsidiaries  has incurred any  liability for Taxes arising from
extraordinary gains or losses outside the ordinary course of business.

      (b) The Company and each of its Subsidiaries  has properly  classified for
Tax purposes  all  employees,  consultants,  independent  contractors  and other
service providers,  and has timely made all filings and has withheld,  deposited
and paid all Taxes required to have been filed,  withheld,  deposited or paid in
connection  with  services  provided by such persons or in  connection  with any
amounts  paid or owing to any  other  person.  To the  Company's  knowledge,  no
deficiencies  for any Tax have been  assessed  against the Company or any of its
Subsidiaries,  none of the Company or any of its  Subsidiaries  has received any
notice of deficiency or proposed adjustment for any Taxes proposed,  asserted or
assessed by any Taxing authority against the Company or any of its Subsidiaries,
and no Tax  Return  of the  Company  or any of its  Subsidiaries  has ever  been
audited and, to the  knowledge of the Company and its  officers,  directors  and
employees,  there is no such audit  pending or  contemplated.  There is no Lien,
whether  imposed by any federal,  state,  local or foreign  Taxing  authority or
otherwise, outstanding against the assets, properties or business of the Company
or any of its  Subsidiaries,  other than any Lien for current  Taxes not yet due
and payable. To the Company's knowledge, no claim has been made since August 24,
2004  by  any  authority  in a  jurisdiction  where  the  Company  or any of its
Subsidiaries  does not file Tax Returns that it is or may be subject to Taxation
by that jurisdiction. Neither the Company nor any of its Subsidiaries has waived
any statute of  limitations  in respect of Taxes or agreed to any  extension  of
time with respect to a Tax assessment or deficiency, since August 24, 2004.

                                       11
<PAGE>

      (c) None of the Company and its  Subsidiaries  will be required to include
any item of income in, or exclude any item of deduction from, taxable income for
any  taxable  period (or portion  thereof)  ending  after the Closing  Date as a
result of any: (A) change in method of accounting for a taxable period ending on
or prior to the Closing  Date;  (B)  "closing  agreement"  as  described in Code
Section  7121 (or any  corresponding  or similar  provision  of state,  local or
foreign  income  Tax  law)  executed  on or  prior  to  the  Closing  Date;  (C)
intercompany  transactions  or any excess  loss  account  described  in Treasury
Regulations  under Code Section 1502 (or any  corresponding or similar provision
of state,  local or  foreign  income  Tax  law);  (D)  installment  sale or open
transaction disposition made on or prior to the Closing Date; (E) recapture of a
pre-Closing  Tax  benefit;  or (F)  prepaid  amount  received on or prior to the
Closing  Date.  No item  of  income  or  gain  reported  by the  Company  or any
Subsidiary of the Company for financial  accounting  purposes in any pre-Closing
period is required to be included in Taxable income for a post-Closing period.

      (d) To the Company's knowledge,  neither the Company nor any Subsidiary of
the  Company has any  liability  for or any  obligation  to pay the Taxes of any
person under Treasury  Regulation  Section 1.1502-6 (or any similar provision of
state,  local or foreign  law),  as a  transferee  or  successor,  by  contract,
pursuant to a Tax sharing agreement,  indemnification or guaranty, or otherwise.
Neither the Company nor any  Subsidiary of the Company has filed a consent under
Section 341(f) of the Code  concerning  collapsible  corporations,  or agreed to
have Section 341(f)(2) of the Code apply to any disposition of an asset owned by
the  Company  or any of its  Subsidiaries.  None of the  Company  nor any of its
Subsidiaries  has  engaged  in any  listed  transaction  as set forth in written
guidance or a notice issued by the Internal Revenue Service. None of the Company
nor its  Subsidiaries  are  foreign  entities  or conduct  business in a foreign
country.

                                       12
<PAGE>

      3.20 No Brokers.

      Except for Chadbourn  Securities,  Inc.,  Thomas  Weisel  Partners LLC and
First Montauk Securities Corp.  (collectively,  the "Placement Agents"), each of
whose fees and expenses are the sole responsibility of the Company, no broker or
finder has acted directly or indirectly for the Company in connection  with this
Agreement or the transactions  contemplated  hereby,  and no broker or finder is
entitled to any brokerage or finder's fee or other commission in respect thereof
based in any way on agreements,  arrangements  or  understandings  made by or on
behalf of the Company.  The Company may, however, be responsible for the payment
of fees and expenses to other brokers in connection with Additional Closings.

      3.21 Reliance.

      The Company  understands and confirms that the Purchasers will rely on the
representations  and  covenants  contained in this  Agreement  in acquiring  the
Purchased Securities.

      3.22 Employee Benefits.

      (a) The Company and its ERISA  Affiliates  have  performed in all material
respects all  obligations  required to be performed by them under each  Employee
Plan, and each Employee Plan has been established and maintained in all Material
respects  in  accordance  with its terms  and in  Material  compliance  with all
applicable laws,  statutes,  orders,  rules and  regulations,  including but not
limited to ERISA,  the Code,  COBRA, and HIPAA. Any Employee Plan intended to be
qualified  under Section  401(a) of the Code and each trust  intended to qualify
under  Section  501(a)  of the  Code has  obtained  a  favorable  determination,
notification, advisory and/or opinion letter, as applicable, as to its qualified
status from the IRS.  For each  Employee  Plan that is intended to be  qualified
under Section 401(a) of the Code, to the Company's knowledge,  there has been no
event,  condition or  circumstance  that has adversely  affected or is likely to
adversely affect such qualified status. No "prohibited  transaction," within the
meaning of Section  4975 of the Code or Sections  406 and 407 of ERISA,  and not
otherwise  exempt under  Section 408 of ERISA,  has occurred with respect to any
Employee  Plan.  There  are no  actions,  suits or  claims  pending,  or, to the
knowledge of the Company,  threatened  (other than routine  claims for benefits)
against any Employee Plan or against the assets of any Employee Plan.  There are
no audits,  inquiries or proceedings pending or, to the knowledge of the Company
or any ERISA Affiliates, threatened by the IRS or DOL, or any other governmental
authority with respect to any Employee  Plan.  Neither the Company nor any ERISA
Affiliate is subject to any Material penalty or tax with respect to any Employee
Plan under  Section  502(i) of ERISA or Sections  4975 through 4980 of the Code.
The Company and each ERISA  Affiliate  have  timely made all  contributions  and
other payments required by and due under the terms of each Employee Plan.

                                       13
<PAGE>

      (b)  Neither  the Company  nor any ERISA  Affiliate  has ever  maintained,
established,  sponsored,  participated  in, or contributed  to, any Pension Plan
that  is  subject  to  Title  IV of  ERISA  or  Section  412 of the  Code or any
Multiemployer Plan.

      (c) No Employee  Plan or  employment  agreement  provides,  or reflects or
represents  any  liability  to provide,  retiree  benefits to any person for any
reason,  except as may be required by COBRA or other applicable statute, and the
Company has not represented,  promised or contracted (whether in oral or written
form) to any Company Employee (either  individually or to Company Employees as a
group) or any other person that such Company  Employee(s)  or other person would
be provided with retiree benefits, except to the extent required by statute.

      (d)  Neither the  Company  nor any of its  Subsidiaries  is a party to any
agreement,  plan,  arrangement  or  other  contract  covering  any  employee  or
independent  contractor  or former  employee  or  independent  contractor  that,
considered   individually  or  considered   collectively  with  any  other  such
contracts,  would reasonably be expected to, give rise directly or indirectly to
the payment of any amount that would not be deductible  pursuant to Section 280G
or Section 162(m) the Code (or any comparable  provision of state or foreign tax
laws).  All Employee  Plans which are subject to Section 409A of the Code are in
Material compliance with Section 409A.

                                   ARTICLE IV
                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

      Each Purchaser,  individually and not jointly,  represents and warrants to
the Company as of the date hereof and as of each Closing Date, as follows:

      4.1 Authority.

      Such  Purchaser  has full power and authority to enter into and to perform
this Agreement and the Documents to which it is a party in accordance with their
terms and to consummate the transactions  contemplated hereby and thereby.  This
Agreement  and the  Documents to which it is a party have been duly executed and
delivered by such Purchaser and constitute valid and binding obligations of such
Purchaser each of which are enforceable in accordance with its respective  terms
and  conditions,  except as the  enforceability  thereof  may be  limited by any
applicable  bankruptcy,  reorganization,  insolvency  or  other  laws  affecting
creditor's  rights  generally  or by  general  principles  of  equity.  To  such
Purchaser's  knowledge,  the  execution  and  performance  of  the  transactions
contemplated  by this  Agreement  and the Documents  and  compliance  with their
provisions  by such  Purchaser:  (i)  will  not  violate  any  provision  of Law
applicable to such  Purchaser;  and (ii) will not conflict with or result in any
breach of any of the material terms,  conditions or provisions of, or constitute
a default under such Purchaser's partnership agreement, certificate of formation
or operating agreement,  or any indenture,  lease, agreement or other instrument
to which such  Purchaser is a party or by which it or any of its  properties  is
bound, or any decree, judgment, order, statute, rule or regulation applicable to
such Purchaser, which, in any such case would impair such Purchaser's ability to
purchase  the  Purchased  Securities  or otherwise  comply with its  obligations
hereunder.

                                       14
<PAGE>

      4.2 Experience.

      Such Purchaser is either an "accredited investor" as defined under Section
501 of the rules and regulations of the Commission under the Securities Act or a
Qualified Institutional Buyer (as defined in Rule 144A under the Securities Act)
and,  by virtue  of its  experience  in  evaluating  and  investing  in  private
placement  transactions of securities in companies similar to the Company,  such
Purchaser is capable of evaluating the merits and risks of its investment in the
Company and has the capacity to protect its own  interests.  Such  Purchaser has
had access to the Company's  senior  management  and has had the  opportunity to
conduct  such  due  diligence  review  as it has  deemed  appropriate  provided,
however, that the foregoing shall not alter, diminish or impair such Purchaser's
right or ability to rely upon any of the  representations  or  warranties of the
Company contained herein.

      4.3 Suitability of Investment.

      Such Purchaser has read the Company's Private  Placement  Memorandum dated
as of May 2, 2006 relating to the offering contemplated hereby, including all of
the attachments  thereto (the "Memorandum") and fully understands the Memorandum
and the terms of this offering.  With respect to individual or  partnership  tax
and other economic considerations involved in this investment, such Purchaser is
not relying on the Company.  Such Purchaser has carefully considered and has, to
the  extent  it  believes  such   discussion   necessary,   discussed  with  its
professional legal, tax,  accounting,  and financial advisors the suitability of
an investment in the Purchased  Securities  for its particular tax and financial
situation and has determined that the Purchased Securities being purchased by it
are a suitable  investment  for it. Such  Purchaser has  carefully  reviewed and
considered  the risk  factors  discussed  in the "Risk  Factors"  section of the
Memorandum prior to making an investment decision.

      4.4 Investment.

      Such  Purchaser  has not been formed solely for the purpose of making this
investment  (or, if it has been so formed,  all of the owners of such  Purchaser
are  themselves  accredited  investors),  and such  Purchaser is  acquiring  the
Purchased  Securities for  investment  for its own account,  not as a nominee or
agent,  and not  with the  view  to,  or for  resale  in  connection  with,  any
distribution  of any  part  thereof,  provided,  however,  that  by  making  the
representations  herein,  such  Purchaser  does  not  agree  to hold  any of the
Purchased  Securities  for any minimum or other  specific  term and reserves the
right to dispose of the Purchased  Securities at any time in accordance  with or
pursuant to a registration statement or otherwise in compliance with federal and
state securities laws. Such Purchaser  understands that the Purchased Securities
and the Underlying  Shares have not been registered  under the Securities Act or
applicable  state and other  securities  laws by reason of a specific  exemption
from the registration  provisions of the Securities Act and applicable state and
other  securities  laws,  the  availability  of which depends upon,  among other
things,  the bona fide nature of the investment  intent and the accuracy of such
Purchaser's representations as expressed herein.

                                       15
<PAGE>

      4.5 Patriot Act Compliance.

      In  order to  induce  the  Company  to  accept  the  subscription  of such
Purchaser,  such Purchaser  represents and confirms to the Company (on behalf of
the Company and the Placement  Agents) that the Purchaser is in compliance  with
the  Patriot  Act  requirements  and  standards  set forth on  Exhibit F annexed
hereto, which is incorporated by reference herein.

                                   ARTICLE V
                              ADDITIONAL AGREEMENTS

      5.1 Survival of Representations, Warranties and Agreements.

      All  representations  and  warranties  contained  herein shall survive the
Initial  Closing  for a period of 12 months  and all  covenants  and  agreements
contained  herein shall survive  until fully  discharged.  All  representations,
warranties,  covenants  and  agreements  made  herein by the  Company  or in any
certificate  delivered  at a Closing  shall be deemed  Material and to have been
relied upon by the Purchasers.

      5.2 Transaction Expenses and Taxes.

      (a) The  Company  and each  Purchaser  shall  bear  all of its  respective
expenses in connection  with the  negotiation,  preparation and execution of the
Documents.

      (b) All sales, use, transfer, stamp (including documentary stamp taxes, if
any),  excise,  recording,  franchise and other  similar  taxes or  governmental
charges with respect to the securities  issued pursuant hereto shall be borne by
the Company.

      (c) All transfer,  documentary,  sales, use, stamp, registration and other
such  Taxes  and  fees  (including  any  penalties  and  interest)  incurred  in
connection  with  this  Agreement  (including  any  corporate-level   gains  Tax
triggered  by the sale of the  Company's  stock,  and any similar tax imposed in
other  states or  subdivisions)  shall be paid by the Company  when due, and the
Company  shall,  at its own expense,  file all  necessary  Tax Returns and other
documentation with respect to all such transfer, documentary, sales, use, stamp,
registration and other Taxes and fees.

      5.3 Escrow of Funds.

      The Company has  established  an escrow  account  with a third party bank.
Funds from each Purchaser shall be held in a non-interest  bearing account until
accepted or rejected by the Company. Any subscription that is rejected,  whether
in whole or in part, will be promptly returned without interest or deduction.

                                       16
<PAGE>

      5.4 Securities Laws.

      (a) The Company  agrees to timely file all documents  required to be filed
with the  Commission,  specifically,  a Form D (or  equivalent  form required by
applicable  state  law)  with  respect  to the  Purchased  Securities  if and as
required  under  Regulation D and any such forms or documents  under  applicable
state securities  laws,  including the filing of a form 99 under the laws of the
State of New York, to establish an exemption from registration.

      (b) Each certificate  representing the Purchased Shares and the Underlying
Shares shall bear a legend  containing  substantially  the following  legend (in
addition to any other legend required by law or applicable agreement):

      THE SHARES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES  ACT OF 1933, AS AMENDED (THE "ACT"),  OR STATE
      SECURITIES LAWS AND CANNOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
      IN THE ABSENCE OF REGISTRATION  OR THE  AVAILABILITY OF AN EXEMPTION
      FROM OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION  UNDER THE
      ACT AND APPLICABLE STATE SECURITIES LAWS.

      5.5 Reporting Matters.

      The Company agrees not to report any actual or deemed  non-cash  dividends
with  respect  to  the  Series  B  Preferred  Stock  to  the  Purchasers  or any
Governmental  Entity on IRS Form 1099-DIV or other  information  return,  unless
otherwise  instructed to do so in writing by a Governmental Entity in connection
with a  Proceeding  involving  the Company.  The Company  shall not withhold any
Taxes on any actual or deemed non-cash  dividends to the Purchasers with respect
to the Series B Preferred Stock, unless otherwise instructed to do so in writing
by a Governmental Entity in connection with a Proceeding  involving the Company.
The Company  agrees with each of the  Purchasers  that for Tax  purposes (i) the
issue  price of the  Series B  Preferred  Stock  will be $93.40 per share of the
Series B Preferred Stock paid by the Purchasers and that the issue price for the
Warrants  shall be $6.60 per share subject to the Warrants and (ii) the Series B
Preferred Stock will not be designated as debt.

                                   ARTICLE VI
                                  MISCELLANEOUS

      6.1 No Third Party Beneficiaries.

      Except as expressly  provided herein,  this Agreement shall not confer any
rights or remedies  upon any Person other than the parties and their  respective
successors and permitted assigns, personal  representatives,  heirs and estates,
as the case may be.

                                       17
<PAGE>

      6.2 Entire Agreement.

      This Agreement and the other  Documents  constitute  the entire  agreement
among  the  Parties  and  supersede  any  prior  understandings,  agreements  or
representations by or among the Parties,  written or oral, that may have related
in any way to the subject matter of any Document including,  without limitation,
any  letter  of  intent  dated as of or prior to the date  hereof,  between  the
Company and the Purchasers.

      6.3 Successors and Assigns.

      This  Agreement  shall be  binding  upon and inure to the  benefit  of the
Parties and their respective  successors and permitted assigns.  No party hereto
may assign either this Agreement or any of its rights, interests, or obligations
hereunder  without  the prior  written  approval  of the other  parties  hereto;
provided,  however, that any Purchaser may assign,  hypothecate or pledge any of
its rights under any of the  Documents  to (i) an  Affiliate of such  Purchaser,
(ii) any  Person  who  shall  acquire  substantially  all of the  assets of such
Purchaser or a majority in voting power of the capital  stock of such  Purchaser
(whether pursuant to a merger,  consolidation,  stock sale or otherwise),  (iii)
any lender of such Purchaser (or any agent therefore) for security  purposes and
the  assignment  thereof  by any  such  lender  or agent  to such  Purchaser  in
connection  with the  exercise  by any such lender or agent of all of its rights
and remedies as a secured creditor with respect  thereto,  or (iv) any person to
whom such Purchaser assigns or transfers any Purchased Securities, provided such
transferee  agrees in  writing to be bound,  with  respect  to the  transfer  of
Purchased Securities, by the provisions hereof that apply to the Purchasers.

      6.4 Counterparts.

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

      6.5 Notices.

      All notices, requests, demands, claims, and other communications hereunder
shall be in  writing  and shall be deemed to have been duly  given if  delivered
personally,  telecopied,  sent by  nationally  recognized  overnight  courier or
mailed by  registered  or certified  mail (return  receipt  requested),  postage
prepaid, to the parties at the following addresses (or at such other address for
a party as shall be specified by like notice):

                                       18
<PAGE>

                  If to the Company:
                  ------------------

                  World Waste Technologies, Inc.
                  13520 Evening Creek Drive
                  Suite 130
                  San Diego, California 92128
                  Telephone:        (858) 391-3400
                  Facsimile:        (858) 486-3352
                  Attention:        CFO

                  with a copy to:

                  Troy & Gould Professional Corporation
                  1801 Century Park East, 16th Floor
                  Los Angeles, CA 90067
                  Telephone:        (310) 553-4441
                  Facsimile:        (310) 201-4746
                  Attention:        Lawrence Schnapp, Esq.

                  If to the  Purchasers,  to the  addresses  set  forth on the
                  signature pages hereto.

      All such  notices  and other  communications  shall be deemed to have been
given and  received  (i) in the case of personal  delivery,  on the date of such
delivery,  (ii) in the  case  of  delivery  by  facsimile,  on the  date of such
delivery,  (iii) in the case of  delivery  by  nationally  recognized  overnight
courier,  on the third  business day following  dispatch and (iv) in the case of
mailing, on the seventh business day following such mailing.

      6.6 Governing Law.

      THIS  AGREEMENT  WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE
DOMESTIC  LAWS OF THE STATE OF NEW YORK WITHOUT  GIVING  EFFECT TO ANY CHOICE OF
LAW  OR  CONFLICTING  PROVISION  OR  RULE  THAT  WOULD  CAUSE  THE  LAWS  OF ANY
JURISDICTION  OTHER THAN THE STATE OF NEW YORK TO BE APPLIED.  IN FURTHERANCE OF
THE  FOREGOING,  THE  INTERNAL  LAW OF THE  STATE OF NEW YORK WILL  CONTROL  THE
INTERPRETATION   AND  CONSTRUCTION  OF  THIS  AGREEMENT,   EVEN  IF  UNDER  SUCH
JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF
SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

                                       19
<PAGE>

      6.7 Submission to Jurisdiction; Waivers.

      The Company and each Purchaser irrevocably agrees that any legal action or
proceeding  with respect to this Agreement or for recognition and enforcement of
any  judgment  in  respect  hereof  brought  by any  other  party  hereto or its
successors  may be brought and  determined  in the Supreme Court of New York for
Kings County or the federal district court in the Southern District of New York,
and the Company and each Purchaser hereby irrevocably submits with regard to any
such action or proceeding  for itself and in respect to its property,  generally
and unconditionally,  to the nonexclusive  jurisdiction of the aforesaid courts.
The Company and each  Purchaser  hereby  irrevocably  waives,  and agrees not to
assert, by way of motion, as a defense, counterclaim or otherwise, in any action
or  proceeding  with  respect  to  this  Agreement,  (a) any  claim  that is not
personally  subject to the jurisdiction of the above-named courts for any reason
other than the failure to lawfully serve process, (b) that it or its property is
exempt or immune from  jurisdiction  of any such court or from any legal process
commenced in such courts (whether through service of notice, attachment prior to
judgment,  attachment in aid of execution of judgment,  execution of judgment or
otherwise),  and (c) to the fullest extent permitted by applicable law, that (i)
the suit,  action or proceeding in any such court is brought in an  inconvenient
forum,  (ii) the venue of such suit,  action or proceeding is improper and (iii)
this Agreement,  or the subject matter hereof, may not be enforced in or by such
courts.

      6.8 Amendments and Waivers; Purchasers Consent.

      No amendment of any provision of this Agreement  shall be valid unless the
same shall be in writing and signed by the Company and the holders of at least a
majority of the then-outstanding Purchased Shares. No waiver by any party hereto
of any default, misrepresentation,  or breach of warranty or covenant hereunder,
whether intentional or not, shall be deemed to extend to any prior or subsequent
default,  misrepresentation,  or breach of  warranty or  covenant  hereunder  or
affect in any way any rights  arising by virtue of any prior or subsequent  such
occurrence.

      6.9 Certain Definitions.

      "Affiliate"  means,  with  respect to any  Person,  any of (a) a director,
officer  or  shareholder  holding  5% or more of the  capital  stock (on a fully
diluted basis) of such Person,  (b) a spouse,  parent,  sibling or descendant of
such  Person (or a spouse,  parent,  sibling or  descendant  of any  director or
officer of such Person) and (c) any other Person  that,  directly or  indirectly
through one or more intermediaries,  controls,  or is controlled by, or is under
common  control with,  another  Person.  The term  "control"  includes,  without
limitation,  the possession,  directly or indirectly, of the power to direct the
management  and policies of a Person,  whether  through the  ownership of voting
securities, by contract or otherwise.

      "Assets"  means,  with respect to any Person,  all of the assets,  rights,
intellectual property, interests and other properties, real, personal and mixed,
tangible and  intangible,  of any nature  whatsoever,  either owned or leased by
such Person.

      "Balance  Sheet"  means  the  audited  consolidated  balance  sheet of the
Company as of December 31, 2005.

      "Board" shall mean the Board of Directors of the Company.

      "CERCLA"  means the United States  Comprehensive  Environmental  Response,
Compensation and Liability Act, 42 U.S.C ss. 9601 et seq., as amended.

                                       20
<PAGE>

      "Certificate  of  Determination"   means  the  Company's   Certificate  of
Determination  of  Rights,  Preferences  and  Privileges  of  the  8%  Series  B
Cumulative Redeemable Convertible  Participating Preferred Stock in effect as of
the Initial Closing in the form attached as Exhibit D hereto.

      "COBRA" shall mean the Consolidated  Omnibus Budget  Reconciliation Act of
1985,  as amended and as  codified in Section  4980B of the Code and Section 601
et. seq. of ERISA.

      "Company Employee" shall mean any current director, employee or consultant
of the Company or any ERISA Affiliate.

      "Documents" means this Agreement,  the Certificate of  Determination,  the
Warrants and the Registration Rights Agreement.

      "Employee Plan" shall mean any plan, program, policy, practice,  contract,
agreement  or  other   arrangement   providing  for   compensation,   severance,
termination  pay,   deferred   compensation,   performance   awards,   stock  or
stock-related awards, fringe benefits or other employee benefits or remuneration
of any kind,  whether  written,  unwritten  or  otherwise,  funded or  unfunded,
including without  limitation,  each "employee benefit plan," within the meaning
of Section  3(3) of ERISA  which is or has been,  within the past six (6) years,
maintained,  contributed to, or required to be contributed to, by the Company or
any ERISA Affiliate for the benefit of any Company Employee,  or with respect to
which  the  Company  or any ERISA  Affiliate  has or may have any  liability  or
obligation.

      "Environment"  means soil,  soil gas, land surface or  subsurface  strata,
surface  waters  (including  navigable  waters,  ocean waters,  streams,  ponds,
drainage  basins and  wetlands),  groundwater,  drinking  water  supply,  stream
sediments,  ambient air  (including  indoor air),  plant and animal life and any
other environmental medium or natural resource.

      "Environmental  Claim"  means any written or oral notice,  claim,  demand,
action,  suit,   complaint,   proceeding,   request  for  information  or  other
communication by any person alleging liability or potential liability (including
without  limitation  liability or potential  liability for investigatory  costs,
cleanup costs,  governmental response costs, natural resource damages,  property
damage,  personal injury, fines or penalties) arising out of, relating to, based
on or resulting from (i) the presence, discharge, emission release or threatened
release  of any  Hazardous  Substances  at any  location,  whether or not owned,
leased or  operated  by the  Company  or any  Subsidiary  or (ii)  circumstances
forming the basis of any violation or alleged violation of any Environmental Law
or  Environmental   Permit  or  (iii)  otherwise   relating  to  obligations  or
liabilities under any Environmental laws.

      "Environmental  Law"  means all laws,  rules,  regulations  or  guidelines
relating  to  pollution  or  protection  of  human  health  or the  Environment,
including,  without  limitation,  (a) laws relating to the Release or threatened
Release of Hazardous  Materials or other substances into the Environment and (b)
laws  relating  to  the  identification,  generation,  manufacture,  processing,
distribution,  use, treatment, storage, disposal, recovery, transport, transfer,
refinement,  production,  management or other handling of Hazardous Materials or
other substances.  Environmental Laws shall include, without limitation, CERCLA,
the Federal Water Pollution Control Act (33 U.S.C. ss. 1251 et seq.),  RCRA, the
Safe Drinking Water Act (21 U.S.C.  ss. 349, 42 U.S.C.  ss.ss.  201, 300f),  the
Toxic Substances Control Act (15 U.S.C. ss. 2601 et seq.), the Clean Air Act (42
U.S.C.  ss. 7401 et seq.),  the California  Health and Safety Code (ss. 25100 et
seq.,  ss. 39000 et seq.) as enacted  prior to the Closing Date and as in effect
on the Closing Date.

                                       21
<PAGE>

      "Environmental  Permits" means all permits,  licenses,  registrations  and
other  governmental  authorizations  required  for each of the  Company  and the
Subsidiaries  and the operations of each of the Company's and the  Subsidiaries'
facilities and otherwise to conduct its business under Environmental Laws.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended, and the rules and regulations promulgated thereunder.

      "ERISA  Affiliate" shall mean each Subsidiary of the Company and any other
person  or  entity  under  common  control  with  the  Company  or  any  of  its
Subsidiaries  within the meaning of Section 414(b),  (c), (m) or (o) of the Code
and the regulations issued thereunder.

      "GAAP" means  United  States  Generally  Accepted  Accounting  Principles,
consistently applied.

      "Governmental Entity" means any court,  administrative  agency,  tribunal,
department,   bureau  or   commission   or  other   governmental   authority  or
instrumentality,  domestic or foreign, Federal, state or local or any arbitrator
or arbitral body.

      "Hazardous Substances" means any dangerous,  toxic or hazardous pollutant,
contaminant,  chemical, waste, material or substance, including those defined in
or  governed  by any  federal,  state or local law,  statute,  code,  ordinance,
regulation,  rule or other requirement,  relating to such substance or otherwise
relating  to the  environment  or human  health  or  safety,  including  without
limitation any waste, material,  substance,  pollutant or contaminant that might
cause any  injury to human  health  or safety or to the  environmental  or might
subject the Company or any of its  Subsidiaries  to any  imposition  of costs or
liability under any Environmental Law.

      "HIPAA" shall mean the Health Insurance Portability and Accountability Act
of 1996, as amended.

      "IRS"  shall  mean the  United  States  Internal  Revenue  Service  or any
successor thereto.

      "Law" means any  constitution,  law,  statute,  treaty,  rule,  directive,
requirement or regulation or Order of any Governmental Entity.

      "Lien" means any security interest,  pledge,  bailment (in the nature of a
pledge or for purposes of  security),  mortgage,  deed of trust,  the grant of a
power  to  confess  judgment,  conditional  sale or  title  retention  agreement
(including  any lease in the nature  thereof),  charge,  encumbrance,  easement,
reservation,  restriction, cloud, right of first refusal or first offer, option,
or other similar arrangement or interest in real or personal property.

                                       22
<PAGE>

      "Material,"  "Material Adverse Change" and "Material Adverse Effect" shall
mean the occurrence of any single event, or any series of related events, or set
of related  circumstances,  which  would have a material  adverse  effect on the
condition  (financial or other),  business,  results of operations,  cash flows,
ability to conduct business or Assets of the Company and the Subsidiaries  taken
as a whole.

      "Multiemployer   Plan"   shall  mean  any   "Pension   Plan"  which  is  a
"multiemployer plan," as defined in Section 3(37) of ERISA.

      "Orders" means judgments, writs, decrees, injunctions,  orders, compliance
agreements  or  settlement  agreements  of or with any  Governmental  Entity  or
arbitrator.

      "Pension Plan" shall mean each Employee Plan that is an "employee  pension
benefit plan," within the meaning of Section 3(2) of ERISA.

      "Person"  shall be construed  broadly and shall include an  individual,  a
partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture,  an unincorporated  organization,  or a
Governmental  Entity  (or  any  department,  agency,  or  political  subdivision
thereof).

      "Proceeding"  means  any  action,  suit,  proceeding,  complaint,  charge,
hearing,  inquiry  or  investigation  before or by a  Governmental  Entity or an
arbitrator or arbitral body.

      "Registration   Rights   Agreement"   means  the  Amended   and   Restated
Registration Rights Agreement dated as of the date hereof among the Company, the
Purchasers and the other parties thereto,  in form and substance attached hereto
as Exhibit C.

      "Release"  means and includes any  spilling,  leaking,  pumping,  pouring,
injecting,  emitting,  emptying,  discharging,  depositing,  escaping, leaching,
migrating (including passive migration),  dumping,  disposing or other releasing
into the Environment or the workplace,  whether intentional or unintentional and
otherwise defined in any Environmental Law.

      "Tax" or  "Taxes"  means all  federal,  state,  local and  foreign  taxes,
levies,  deficiencies  and other  assessments  and  charges of  whatever  nature
(including  income,  franchise,  property,  sales, use, gross receipts,  excise,
license,  occupation,  recording,  value added,  transfer,  withholding,  backup
withholding,   payroll,  employment,   severance,  stamp,  occupation,  premium,
windfall  profits,  environmental,  capital  stock,  profits,  social  security,
unemployment, disability, real property, personal property, real property gains,
registration,  alternative  or add-on  minimum  and  estimated  taxes;  workers'
compensation premiums,  customs duties and other governmental charges; and other
obligations  of  the  same  nature  as or of a  nature  similar  to  any  of the
foregoing)  imposed  by any  taxing  authority,  as  well as any  obligation  to
contribute  to the  payment of taxes  determined  on a  consolidated,  combined,
unitary or similar basis with respect to the Company or any of its Subsidiaries,
including any interest, penalty (civil or criminal) or addition thereto, whether
disputed  or not,  as well as any  expenses  incurred  in  connection  with  the
determination, settlement or litigation of any such tax liability.

      "Tax  Return"  means  any  federal,   state,   local  or  foreign  return,
declaration,  report,  claim for  refund,  amended  return,  excise tax  report,
declaration of estimated tax, information return or statement relating to Taxes,
and any schedule or attachment thereto,  filed or maintained,  or required to be
filed  or  maintained,  in  connection  with  the  calculation,   determination,
assessment or collection  of any Tax, and  including any amendment  thereof,  as
well as, where permitted or required, consolidated, combined, unitary or similar
returns  for any  group of  entities  that  include  the  Company  or any of its
Subsidiaries;  and reports with respect to backup withholding and other payments
to third parties.

                                       23
<PAGE>

      6.10 Incorporation of Schedules and Exhibits.

      The Schedule and Exhibits  identified in this  Agreement are  incorporated
herein by reference and made a part hereof.

      6.11 Construction.

      Where specific  language is used to clarify by example a general statement
contained herein, such specific language shall not be deemed to modify, limit or
restrict in any manner the  construction  of the general  statement  to which it
relates.  The language used in this Agreement shall be deemed to be the language
chosen by the parties  hereto to express  their  mutual  intent,  and no rule of
strict construction shall be applied against any party.

      6.12 Interpretation.

      Accounting  terms used but not  otherwise  defined  herein  shall have the
meanings  given to them under GAAP.  As used in this  Agreement  (including  all
Schedules,  Exhibits and amendments hereto), the masculine,  feminine and neuter
gender and the  singular or plural  number shall be deemed to include the others
whenever the context so requires.  References to Articles and Sections  refer to
articles and sections of this Agreement.  Similarly, references to Schedules and
Exhibits  refer  to  schedules  and  exhibits,  respectively,  attached  to this
Agreement.  Unless the  content  requires  otherwise,  words  such as  "hereby,"
"herein," "hereinafter," "hereof" "hereto," "hereunder" and words of like import
refer to this  Agreement.  The Article and Section  headings  contained  in this
Agreement are inserted for convenience  only and shall not affect in any way the
meaning or interpretation of this Agreement.

      A Person (other than an individual)  will be deemed to have "knowledge" of
a particular  fact or other matter if any individual who is serving,  or who has
at any time served, as a director,  officer,  partner,  executor,  or trustee of
such Person (or in any similar  capacity) has, or at any time had,  knowledge of
such fact or other  matter,  except that the Company shall not be deemed to have
knowledge of a particular  fact or matter solely as a result of the knowledge of
any  individual  who served as an officer or director  of the  Company  prior to
August 24,  2004 but has not served as an officer or  director of the Company at
any time subsequent to August 24, 2004.

      6.13 Remedies.

      The  parties  hereto  shall  each have and  retain  all other  rights  and
remedies  existing  in  their  favor  at  Law  or  equity,  including,   without
limitation,  any actions for specific  performance  and/or  injunctive  or other
equitable relief (including,  without  limitation,  the remedy of rescission) to
enforce or prevent any violations of the provisions of this  Agreement.  Without
limiting the generality of the foregoing,  the Company hereby agrees that in the
event the  Company  fails to convey any number of  Purchased  Securities  to the
Purchasers in accordance with the provisions of this Agreement or any Underlying
Shares in  accordance  with the terms of any  Purchased  Securities  pursuant to
which they are issuable,  the  Purchasers'  remedy at law may be inadequate.  In
such event, the Purchasers shall have the right, in addition to all other rights
and remedies it may have,  to specific  performance  of the  obligations  of the
Company to convey such number of Purchased  Securities or Underlying  Shares, as
the case may be.

                                       24
<PAGE>

      6.14 Severability.

      It is the desire and intent of the  Parties  that the  provisions  of this
Agreement  be  enforced  to the fullest  extent  permissible  under the laws and
public policies  applied in each  jurisdiction  in which  enforcement is sought.
Accordingly,  if any particular provision of this Agreement shall be adjudicated
by a court of competent jurisdiction to be invalid,  prohibited or unenforceable
for any reason, such provision,  as to such jurisdiction,  shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting the
validity or  enforceability  of this  Agreement  or  affecting  the  validity or
enforceability of such provision in any other jurisdiction.  Notwithstanding the
foregoing,  if such  provision  could  be more  narrowly  drawn  so as not to be
invalid, prohibited or unenforceable in such jurisdiction,  it shall, as to such
jurisdiction,   be  so  narrowly  drawn,   without  invalidating  the  remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

      6.15 Delivery by Facsimile.

      This  Agreement  and any  amendments  hereto,  to the  extent  signed  and
delivered by means of a facsimile machine,  shall be considered to have the same
binding legal effect as if it were the original signed version thereof delivered
in person.  At the request of any party  hereto,  each other party  hereto shall
re-execute  original forms and deliver them to the other party.  No party hereto
shall  raise the use of a facsimile  machine to deliver a signature  or the fact
that any signature or agreement or instrument was  transmitted  or  communicated
through  the  use of a  facsimile  machine  as a  defense  to the  formation  or
enforceability  of this  Agreement and each such party  forever  waives any such
defense.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto have  executed  this  Securities
Purchase Agreement as of the date first above written.

                                        THE COMPANY:

                                        WORLD WASTE TECHNOLOGIES, INC.,
                                        a California corporation

                                        By: ___________________________________
                                        Name: John Pimentel
                                        Title: Chief Executive Officer

                                       26
<PAGE>

                                        THE PURCHASERS:

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________
                                        Address:

                                        Telephone:______________________________
                                        Facsimile:______________________________
                                        Attention:

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________
                                        Address:

                                        Telephone:______________________________
                                        Facsimile:______________________________
                                        Attention:

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________
                                        Address:

                                        Telephone:______________________________
                                        Facsimile:______________________________
                                        Attention:

                                       27
<PAGE>

                                    EXHIBIT A
                                    ---------

                               ALLOCATION SCHEDULE
                               -------------------

<TABLE>
<CAPTION>

                                             Number of Shares of
                                              Series B Preferred                               Purchase Price of
Name                                                 Stock             Number of Warrants         Securities
----------------------------------------    ----------------------    ---------------------   --------------------

<S>                                                     <C>                    <C>                    <C>
Seminary Investments I                                  1,000                  10,000                 $100,000

Elizabeth Rose                                            550                   5,500                  $55,000

Al Assad Jr. Trust UTD 4/9/02                             500                   5,000                  $50,000

Frederick WB Vogel                                      2,500                  25,000                 $250,000

V7, LLC                                                   500                   5,000                  $50,000

Karen & Michael Vanechanos                                750                   7,500                  $75,000

Seminary Investments II                                 1,000                  10,000                 $100,000

Diamondback - Master Fund                              10,000                 100,000               $1,000,000

Wilshire Camp Assoc.                                    3,000                  30,000                 $300,000

Kranenburg Fund                                         2,500                  25,000                 $250,000

Joseph B. Childrey                                      1,125                  11,250                 $112,500

Frederick R. Stahl, Jr.                                   250                   2,500                  $25,000

SAISC, Inc.                                               300                   3,000                  $30,000

Jonathan Kohn                                             500                   5,000                  $50,000

Gerdz Investments LP, RLLLP                               250                   2,500                  $25,000

Gibson Living Trust                                       250                   2,500                  $25,000

Antoine de  Sejournet                                     250                   2,500                  $25,000

Keystone Private Equity Investment -
    Rainer Busch                                        5,000                  50,000                 $500,000

Pascal Investment Partners Equity Fund                  2,500                  25,000                 $250,000

Peterson Family Trust dtd 8/16/2000                     1,000                  10,000                 $100,000

Elizabeth Reed                                            500                   5,000                  $50,000

Kranenburg 1998 Trust                                   2,500                  25,000                 $250,000

Bradley Rotter Self Employed Pension
    Plan & Trust                                        2,500                  25,000                 $250,000
</TABLE>

                                      A - 1

<PAGE>

<TABLE>
<CAPTION>

                                             Number of Shares of
                                              Series B Preferred                               Purchase Price of
Name                                                 Stock             Number of Warrants         Securities
----------------------------------------    ----------------------    ---------------------   --------------------

<S>                                                   <C>                   <C>                    <C>
Ely Family Trust UTD 3/16/84                              300                   3,000                  $30,000

Kyle Harrington                                           250                   2,500                  $25,000

Frontage Road Freres                                    1,000                  10,000                 $100,000

RBC Dain Rausher Custodian FBO Trevor
    Colby IRA                                             500                   5,000                  $50,000

Trevor Colby                                              500                   5,000                  $50,000

John T. Borgese                                           250                   2,500                  $25,000

Scott Marsh                                               250                   2,500                  $25,000

Martin Beck                                               400                   4,000                  $40,000

Moldow Family Trust                                     1,000                  10,000                 $100,000

John P. Pimentel                                          250                   2,500                  $25,000

White Sand Investor Group LP                              750                   7,500                  $75,000

Carl & Linda Brockl, Brockl Family Trust                1,500                  15,000                 $150,000

Jonathan Bruce Kruljac                                    250                   2,500                  $25,000

Gregory G. Sauber                                         250                   2,500                  $25,000

Andrew S. Miller                                          250                   2,500                  $25,000

Evergreen Highland LLC                                  1,500                  15,000                 $150,000

Joseph J. Siegel                                          250                   2,500                  $25,000

Leon Brauser                                            2,500                  25,000                 $250,000

L. Joseph Loveland, Jr.                                   500                   5,000                  $50,000

William L. Fisher                                         250                   2,500                  $25,000

Joel D. Aaseby Living Trust                               250                   2,500                  $25,000

Newport Private Investments Limited                       400                   4,000                  $40,000

Guy & Madeline Ossello, JTWROs                            250                   2,500                  $25,000

Sam Cortez                                                250                   2,500                  $25,000

Ervin Living Trust, Robert D.                             250                   2,500                  $25,000

Gerald Kay                                                525                   5,250                  $52,500

James J. Keane                                          1,000                  10,000                 $100,000
</TABLE>

                                      A - 2
<PAGE>

<TABLE>
<CAPTION>
                                             Number of Shares of
                                              Series B Preferred                               Purchase Price of
Name                                                 Stock             Number of Warrants         Securities
----------------------------------------    ----------------------    ---------------------   --------------------
<S>                                                   <C>                   <C>                    <C>
Lloyd Quartin                                             250                   2,500                  $25,000

Dan Purjes                                              1,000                  10,000                 $100,000

Philip Fiederlein                                         500                   5,000                  $50,000

HSBC, Jane Teller                                         250                   2,500                  $25,000

Walter D. O'Hearn, Jr.                                    500                   5,000                  $50,000

RST Network, LLC                                          500                   5,000                  $50,000

Vision Opportunity Master Fund DB Cayman
    Ltd                                                 3,000                  30,000                 $300,000

Paragon Capital LP                                      3,500                   3,500                 $350,000

Vision Opportunity Master Fund, Ltd.                    1,500                  15,000                 $150,000

Harris Cohen                                              250                   2,500                  $25,000

Millenium Technology Value Partners, LP                 4,968                  49,680                 $496,800

Millenium Technology Value Partners LP                  5,032                  50,320                 $503,200

TWM Associates, LLC                                       500                   5,000                  $50,000

Old Westbury Real Return Fund - Bessemer
    Investment Mgmt.                                   50,000                 500,000               $5,000,000

Alan G. Williams                                          400                   4,000                  $40,000

Ronald A. Scheeler                                        250                   2,500                  $25,000

TFFS, Inc.                                                500                   5,000                  $50,000

Francisco Uy                                              250                   2,500                  $25,000

Donald L. Wells                                           250                   2,500                  $25,000

Diamond Oppty Fund LLC                                  5,000                  50,000                 $500,000

Nite Capital                                            5,000                  50,000                 $500,000

Iroquois Master Fund                                    2,500                  25,000                 $250,000

Capital Ventures                                       10,000                 100,000               $1,000,000

Nancy Farina                                              250                   2,500                  $25,000

                                                    ---------               ---------               ----------
                 Totals                               151,000               1,510,000              $15,100,000
</TABLE>

                                      A - 3

<PAGE>

                                    EXHIBIT F
                                    ---------

                   PATRIOT ACT COMPLIANCE CONDITIONS AND TERMS
                   -------------------------------------------

      (a) Such Purchaser represents that no holder of any beneficial interest in
such Purchaser's  equity securities of the Company (each a "Beneficial  Interest
Holder") and, no Related Person (in the case the undersigned is an entity) is or
will be:

            (1)   A person or entity whose name appears on the list of specially
                  designated  nationals  and blocked  persons  maintained by the
                  Office of Foreign Asset Control from time to time;

            (2)   A Foreign Shell Bank; or

            (3)   A person or entity resident in or whose subscription funds are
                  transferred  from or through  an account in a  Non-Cooperative
                  Jurisdiction.

      (b) Such Purchaser represents that the bank or other financial institution
(the "Wiring  Institution")  from which such Purchaser's  funds will be wired is
located in a FATF Country.

      (c) Such Purchaser represents that:

            (1)   Neither  it, any  Beneficial  Interest  Holder nor any Related
                  Person  (in the case of the  undersigned  is an  entity)  is a
                  Senior  Foreign  Political  Figure,  any  member  of a  Senior
                  Foreign  Political  Figure's  Immediate  Family  or any  Close
                  Associate of a Senior Foreign Political Figure; or

            (2)   Neither  it, any  Beneficial  Interest  Holder nor any Related
                  Person (in the case the  undersigned is an entity) is resident
                  in,  or  organized   or   chartered   under  the  laws  of,  a
                  jurisdiction  that has been designated by the Secretary of the
                  Treasury  under  Section  311 or 312 of the USA PATRIOT Act as
                  warranting special measures due to money laundering concerns.

            (3)   Its investment  funds do not originate  from, nor will they be
                  routed through, an account maintained at a Foreign Shell Bank,
                  an "offshore bank," or a bank organized or chartered under the
                  laws of a Non-Cooperative Jurisdiction.

Section 7 Definitions
---------------------

Close Associate: With respect to a Senior Foreign Political Figure, a person who
is widely and publicly  known  internationally  to maintain an  unusually  close
relationship with the Senior Foreign Political Figure, and includes a person who
is in a position to conduct  substantial  domestic and  international  financial
transactions on behalf of the Senior Foreign Political Figure.

FATF: The Financial Action Task Force on Money Laundering.

                                      F - 1

<PAGE>

FATF Country:  A country that is a member of FATF. As of September 1, 2003,  the
countries which are members of FATF are: Argentina; Australia; Austria; Belgium;
Brazil; Canada; Denmark;  Finland;  France; Germany; Greece; Hong Kong; Iceland;
Ireland;  Italy;  Japan;  Luxembourg;  Mexico;  Kingdom of the Netherlands;  New
Zealand; Norway; Portugal;  Singapore; South Africa; Spain; Sweden; Switzerland;
Turkey; United Kingdom and United States. For a current list of FATF members see
http://www1.oecd.org/fatf/Members_en.htm.

Foreign Bank: An organization  that (i) is organized under the laws of a country
outside the United  States;  (ii) engages in the  business of banking;  (iii) is
recognized  as a bank by the  bank  supervisory  or  monetary  authority  of the
country of its  organization  or principal  banking  operations;  (iv)  receives
deposits to a substantial extent in the regular course of its business;  and (v)
has the power to accept demand deposits,  but does not include the U.S. branches
or agencies of a foreign bank.

Foreign  Shell Bank: A Foreign Bank without a Physical  Presence in any country,
but does not include a Regulated Affiliate.

Government  Entity:  Any government or any state,  department or other political
subdivision   thereof,   or  any  governmental   body,   agency,   authority  or
instrumentality   in  any  jurisdiction   exercising   executive,   legislative,
regulatory or administrative functions of or pertaining to government.

Immediate Family:  With respect to a Senior Foreign Political Figure,  typically
includes the political figure's parents, siblings, spouse, children and in-laws.

Non-Cooperative  Jurisdiction:  Any foreign  country or territory  that has been
designated  as   non-cooperative   with  international   anti-money   laundering
principles or procedures by an intergovernmental group or organization,  such as
FATF,  of which the United  States is a member and with  which  designation  the
United States  representative to the group or organization  continues to concur.
See  http://www1.oecd.org/fatf/NCCT_en.htm  for FATF's  list of  non-cooperative
countries and territories.

Physical Presence:  A place of business that is maintained by a Foreign Bank and
is  located  at a fixed  address,  other  than  solely a post  office  box or an
electronic  address,  in a country in which the Foreign  Bank is  authorized  to
conduct banking activities,  at which location the Foreign Bank: (a) employs one
or more  individuals  on a full-time  basis;  (b)  maintains  operating  records
related to its  banking  activities;  and (c) is subject  to  inspection  by the
banking authority that licensed the Foreign Bank to conduct banking activities.

Publicly Traded Company:  An entity whose  securities are listed on a recognized
securities  exchange or quoted on an automated  quotation  system in the U.S. or
country other than a Non-Cooperative  Jurisdiction or a wholly-owned  subsidiary
of such an entity.

Qualified Plan: A tax qualified pension or retirement plan in which at least 100
employees participate that is maintained by an employer that is organized in the
U.S. or is a U.S. Government Entity.

                                      F - 2

<PAGE>

Regulated  Affiliate:  A Foreign  Shell  Bank  that:  (a) is an  affiliate  of a
depository institution,  credit union, or Foreign Bank that maintains a Physical
Presence in the U.S. or a foreign country, as applicable;  and (b) is subject to
supervision by a banking  authority in the country  regulating  such  affiliated
depository institution, credit union, or Foreign Bank.

Related  Person:  With  respect to any entity,  any interest  holder,  director,
senior officer, trustee, beneficiary or grantor of such entity; provided that in
the case of an entity that is a Publicly Traded Company or a Qualified Plan, the
term "Related  Person" shall exclude any interest holder holding less than 5% of
any class of securities of such Publicly  Traded  Company and  beneficiaries  of
such Qualified Plan.

Senior  Foreign   Political   Figure:   A  senior  official  in  the  executive,
legislative,  administrative,  military  or  judicial  branches  of  a  non-U.S.
government  (whether  elected or not),  a senior  official  of a major  non-U.S.
political  party,  or  a  senior   executive  of  a  non-U.S.   government-owned
corporation.  In  addition,  a Senior  Foreign  Political  Figure  includes  any
corporation,  business  or other  entity  that has been  formed  by,  or for the
benefit of, a Senior Foreign Political Figure.

USA PATRIOT ACT: The Uniting and Strengthening  America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act) Act of 2001
(Pub. L. No. 107-56).

                                      F - 3

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