Document:

RADIANT
      LOGISTICS, INC.

     

     

     

     

     

     

     

      
        

      

    

    
Securities
      Purchase Agreement

     

    
      

    

     

    Common
      Stock

     

    
      
        

      

    

    

    

    

    

    CONFIDENTIAL

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NOTICE
      TO OFFEREES

    

    THE
      SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER THE APPLICABLE SECURITIES
      LAWS OF ANY STATE OR OTHER JURISDICTION. THIS SECURITIES PURCHASE AGREEMENT
      DOES
      NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY THE
      SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE
      UNLAWFUL. THERE IS NO ESTABLISHED MARKET FOR THE SECURITIES AND THERE CAN BE
      NO
      ASSURANCE THAT SUCH A MARKET WILL EVER DEVELOP OR, IF IT DOES, THAT IT WILL
      CONTINUE.

    

    THE
      SECURITIES ARE BEING SOLD FOR INVESTMENT PURPOSES ONLY, WITHOUT A VIEW TO RESALE
      OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED, RESOLD OR OFFERED FOR
      RESALE EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT AND REGISTRATION
      OR QUALIFICATION UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER
      JURISDICTION, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION
      OR
      QUALIFICATION. 

    

    NEITHER
      THE SECURITIES AND EXCHANGE COMMISSION NOR THE SECURITIES COMMISSION OR OTHER
      REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION HAS APPROVED OR
      DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF
      THIS
      SECURITIES PURCHASE AGREEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
      OFFENSE. 

    

    INVESTORS
      MUST COMPLY WITH ALL APPLICABLE LAWS AND REGULATIONS IN FORCE IN ANY
      JURISDICTION IN WHICH THEY PURCHASE, OFFER OR SELL THE SECURITIES AND MUST
      OBTAIN ANY CONSENT, APPROVAL OR PERMISSION REQUIRED FOR THE PURCHASE, OFFER
      OR
      SALE BY IT OF THE SECURITIES UNDER THE LAWS AND REGULATIONS IN FORCE IN ANY
      JURISDICTION TO WHICH IT IS SUBJECT OR IN WHICH IT MAKES SUCH PURCHASES, OFFERS
      OR SALES. THE COMPANY SHALL NOT HAVE ANY RESPONSIBILITY WITH RESPECT TO INVESTOR
      COMPLIANCE THEREWITH.

    

    INVESTORS
      ARE EXPECTED TO CONDUCT AN INDEPENDENT INVESTIGATION OF THE RISKS POSED BY
      AN
      INVESTMENT IN THE SECURITIES. AN OFFICER OF THE COMPANY IS AVAILABLE TO ANSWER
      QUESTIONS CONCERNING THE COMPANY AND WILL, UPON REQUEST, MAKE AVAILABLE SUCH
      OTHER INFORMATION AS QUALIFIED, POTENTIAL INVESTORS MAY REASONABLY REQUEST
      AND
      THAT CAN BE PROVIDED BY THE COMPANY WITHOUT UNREASONABLE EFFORT OR
      EXPENSE.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    INVESTORS
      ARE EXPECTED TO CONSULT THEIR OWN INVESTMENT, LEGAL, TAX AND ACCOUNTING ADVISORS
      TO DETERMINE WHETHER THE SECURITIES CONSTITUTE APPROPRIATE INVESTMENTS FOR
      THEM
      AND THE APPLICABLE LEGAL, TAX, REGULATORY AND ACCOUNTING TREATMENT OF THE
      SECURITIES. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR
      OWN
      EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS
      AND RISKS INVOLVED. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO
      BEAR
      THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
      TIME.

    

    CONFIDENTIALITY

    

    By
      receiving this Agreement, each investor acknowledges and agrees that all of
      the
      information contained herein is of a confidential nature and may be regarded
      as
      material non-public information under Regulation FD under the Securities
      Exchange Act of 1934, as amended, and that this Agreement has been furnished
      to
      the investor by the Company solely for the purpose of enabling the investor
      to
      consider and evaluate an investment in the Company. Each investor further agrees
      that he, she or it will treat such information in a confidential manner, will
      not use such information for any purpose other than evaluating an investment
      in
      the Company, and will not, directly or indirectly, disclose or permit his,
      her
      or its agents or affiliates to disclose any of such information without the
      prior written consent of the Company. Each investor also agrees to make his,
      her
      or its representatives aware of the terms of this paragraph and to be
      responsible for any breach of this agreement by such representatives. Likewise,
      without the prior written consent of the Company, no investor will, directly
      or
      indirectly, make any statements, any public announcements, or any release to
      any
      trade publication or to the press with respect to the subject matter of this
      Agreement. If the investor decides to not pursue further investigation of the
      Company, the investor agrees to promptly return this Agreement and any
      accompanying documentation to the Company. Each investor understands that the
      United States securities laws provide severe civil and criminal penalties for
      those persons trading in securities of the Company while in possession of
      material non-public information.

    

    
      
         

      

      
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    CONFIDENTIAL

    

    THIS
      SECURITIES PURCHASE AGREEMENT (this "Agreement"), entered into as of the date
      indicated on the signature page hereof, by and between RADIANT LOGISTICS, INC.,
      a Delaware corporation (the "Company"), and the purchaser or purchasers
      identified on the signature page hereof ("Purchaser").

    

    R
      E C
      I T A L S:

    

    WHEREAS,
      Purchaser desires to purchase and the Company desires to sell shares of common
      stock on the terms and conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the premises hereof and the agreements set forth
      herein below, the parties hereto hereby agree as follows:

    

    1. Restricted
      Securities; Use of Proceeds.
      

    

    (a) Restricted
      Securities.
      The
      shares (“Shares”) of common stock, $.001 par value per share (“Common Stock”),
      offered by this Agreement are being offered in a private offering (the
      "Offering") intended to be exempt from the registration requirements of the
      Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section
      4(2) thereof and Rule 506 of Regulation D thereunder. 

    

    (b) Use
      of
      Proceeds.
      The
      Company intends to use the proceeds for general working capital purposes and
      other general corporate purposes.

    

    2. Sale
      and Purchase of Shares.

    

    (a) Sale
      and Purchase of Shares.
      Subject
      to the terms and conditions hereof, the Company agrees to sell, and Purchaser
      agrees to purchase, the number of Shares specified on the signature page of
      this
      Agreement at a purchase price of $.44 per Share. The aggregate purchase price
      for the Shares shall be as set forth on the signature page hereto (the "Purchase
      Price") and shall be payable upon execution hereof by check or wire transfer
      of
      immediately available funds.

    

    (b) Subscription
      Procedure.
      In
      order to purchase Shares, Purchaser shall deliver to the Company, at its
      principal executive office identified in Section 16 hereof: (i) one completed
      and duly executed copy of this Agreement; and (ii) immediately available funds
      in an amount equal to the Purchase Price. Execution and delivery of this
      Agreement shall constitute an irrevocable subscription for that number of Shares
      set forth on the signature page hereto. Payment for the Shares may be made
      by
      wire transfer to an account designated by the Company or on behalf of the
      Company or by check made payable to: Radiant Logistics, Inc., 1604 Locust
      Street, Third Floor, Philadelphia, PA 19103. This Agreement may be rejected
      by
      the Company, in whole or in part, in its sole discretion, in which event the
      Purchase Price will be returned (by mail) to Purchaser within ten (10) business
      days thereafter. Unless the Offering is otherwise terminated by the Company,
      as
      soon as possible after the receipt and acceptance by the Company of this
      Agreement and collection of the funds paid therefor, the Company will issue
      certificates for the Shares to Purchaser.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3. Representations
      and Warranties of Purchaser.
      Purchaser represents and warrants to the Company as follows:

    

    (a) Organization
      and Qualification.
      

    

    (i) If
      Purchaser is an entity, Purchaser is duly organized, validly existing and in
      good standing under the laws of its jurisdiction of organization, with the
      corporate or other entity power and authority to own and operate its business
      as
      presently conducted, except where the failure to be or have any of the foregoing
      would not have a material adverse effect on Purchaser, and Purchaser is duly
      qualified as a foreign corporation or other entity to do business and is in
      good
      standing in each jurisdiction where the character of its properties owned or
      held under lease or the nature of their activities makes such qualification
      necessary, except for such failures to be so qualified or in good standing
      as
      would not have a material adverse effect on it.

    

    (ii) If
      Purchaser is an entity, the address of its principal place of business is as
      set
      forth on the signature page hereto, and if Purchaser is an individual, the
      address of its principal residence is as set forth on the signature page
      hereto.

    

    (b) Authority;
      Validity and Effect of Agreement.
      

    

    (i) If
      Purchaser is an entity, Purchaser has the requisite corporate or other entity
      power and authority to execute and deliver this Agreement and perform its
      obligations under this Agreement. The execution and delivery of this Agreement
      by Purchaser, the performance by Purchaser of its obligations hereunder and
      all
      other necessary corporate or other entity action on the part of Purchaser have
      been duly authorized by its board of directors or similar governing body, and
      no
      other corporate or other entity proceedings on the part of Purchaser is
      necessary for Purchaser to execute and deliver this Agreement and perform its
      obligations hereunder. 

    

    (ii) This
      Agreement has been duly and validly authorized, executed and delivered by
      Purchaser and, assuming it has been duly and validly executed and delivered
      by
      the Company, constitutes a legal, valid and binding obligation of Purchaser,
      in
      accordance with its terms.

    

    (c) No
      Conflict; Required Filings and Consents.
      Neither
      the execution and delivery of this Agreement by Purchaser nor the performance
      by
      Purchaser of its obligations hereunder will: (i) if Purchaser is an entity,
      conflict with Purchaser’s articles of incorporation or bylaws, or other similar
      organizational documents; (ii) violate any statute, law, ordinance, rule or
      regulation, applicable to Purchaser or any of the properties or assets of
      Purchaser; or (iii) violate, breach, be in conflict with or constitute a default
      (or an event which, with notice or lapse of time or both, would constitute
      a
      default) under, or permit the termination of any provision of, or result in
      the
      termination of, the acceleration of the maturity of, or the acceleration of
      the
      performance of any obligation of Purchaser under, or result in the creation
      or
      imposition of any lien upon any properties, assets or business of Purchaser
      under, any material contract or any order, judgment or decree to which Purchaser
      is a party or by which it or any of its assets or properties is bound or
      encumbered except, in the case of clauses (ii) and (iii), for such violations,
      breaches, conflicts, defaults or other occurrences which, individually or in
      the
      aggregate, would not have a material adverse effect on its obligation to perform
      its covenants under this Agreement.

    

    
      
         

      

      
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    (d) Accredited
      Investor.
       Purchaser
      is an "accredited investor" as that term is defined in Rule 501(a) of Regulation
      D under the Securities Act. If Purchaser is an entity, Purchaser was not formed
      for the specific purpose of acquiring the Shares, and, if it was, all of
      Purchaser’s equity owners are “accredited investors” as defined
      above.

    

    (e) No
      Government Review.
      Purchaser understands that neither the United States Securities and Exchange
      Commission (“SEC”) nor any securities commission or other governmental authority
      of any state, country or other jurisdiction has approved the issuance of the
      Shares or passed upon or endorsed the merits of the Shares, this Agreement,
      the
      SEC Reports referred to herein or any of the other documents relating to the
      proposed Offering (collectively, the “Offering Documents”), or confirmed the
      accuracy of, determined the adequacy of, or reviewed this Agreement or the
      other
      Offering Documents.

    

    (f) Investment
      Intent.
      The
      Shares are being acquired for the Purchaser’s own account for investment
      purposes only, not as a nominee or agent and not with a view to the resale
      or
      distribution of any part thereof, and Purchaser has no present intention of
      selling, granting any participation in or otherwise distributing the same.
      By
      executing this Agreement, Purchaser further represents that Purchaser does
      not
      have any contract, undertaking, agreement or arrangement with any person to
      sell, transfer or grant participation to such person or third person with
      respect to any of the Shares.

    

    (g) Restrictions
      on Transfer.
      Purchaser understands that the Shares are “restricted securities” as such term
      is defined in Rule 144 under the Securities Act and have not been registered
      under the Securities Act or registered or qualified under any state securities
      law, and may not be, directly or indirectly, sold, transferred, offered for
      sale, pledged, hypothecated or otherwise disposed of without registration under
      the Securities Act and registration or qualification under applicable state
      securities laws or the availability of an exemption therefrom. In any case
      where
      such an exemption is relied upon by Purchaser from the registration requirements
      of the Securities Act and the registration or qualification requirements of
      such
      state securities laws, Purchaser shall furnish the Company with an opinion
      of
      counsel stating that the proposed sale or other disposition of such securities
      may be effected without registration under the Securities Act and will not
      result in any violation of any applicable state securities laws relating to
      the
      registration or qualification of securities for sale, such counsel and opinion
      to be satisfactory to the Company. Purchaser acknowledges that it is able to
      bear the economic risks of an investment in the Shares for an indefinite period
      of time, and that its overall commitment to investments that are not readily
      marketable is not disproportionate to its net worth.

    

    (h) Investment
      Experience.
      Purchaser has such knowledge, sophistication and experience in financial, tax
      and business matters in general, and investments in securities in particular,
      that it is capable of evaluating the merits and risks of this investment in
      the
      Shares, and Purchaser has made such investigations in connection herewith as
      it
      deemed necessary or desirable so as to make an informed investment decision
      without relying upon the Company for legal or tax advice related to this
      investment. In making its decision to acquire the Shares, Purchaser has not
      relied upon any information other than information provided to Purchaser by
      the
      Company or its representatives and contained herein and in the other Offering
      Documents.

    

    
      
         

      

      
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    (i) Access
      to Information.
      Purchaser acknowledges that it has had access to and has reviewed all documents
      and records relating to the Company, including, but not limited to, the
      Company’s filings with the SEC, that it has deemed necessary in order to make an
      informed investment decision with respect to an investment in the Shares; that
      it has had the opportunity to ask representatives of the Company certain
      questions and request certain additional information regarding the terms and
      conditions of such investment and the finances, operations, business and
      prospects of the Company and has had any and all such questions and requests
      answered to its satisfaction; and that it understands the risks and other
      considerations relating to such investment.

    

    (j) Reliance
      on Representations. Purchaser
      understands that the Shares
      are
      being offered and sold to it in reliance on specific exemptions from the
      registration requirements of the federal and state securities laws and that
      the
      Company is relying in part upon the truth and accuracy of, and such Purchaser’s
      compliance with, the representations, warranties, agreements, acknowledgments
      and understandings of such Purchaser set forth herein in order to determine
      the
      availability of such exemptions and the eligibility of such Purchaser to acquire
      the Shares.
      Purchaser
      represents and warrants to the Company that any information that Purchaser
      has
      heretofore furnished or furnishes herewith to the Company is complete and
      accurate, and further represents and warrants that it will notify and supply
      corrective information to the Company immediately upon the occurrence of any
      change therein occurring prior to the Company's issuance of the Shares. Within
      five (5) days after receipt of a request from the Company, Purchaser will
      provide such information and deliver such documents as may reasonably be
      necessary to comply with any and all laws and regulations to which the Company
      is subject.

    

    (k) No
      General Solicitation.
      Purchaser is unaware of, and in deciding to participate in the Offering is
      in no
      way relying upon, and did not become aware of the Offering through or as a
      result of, any form of general solicitation or general advertising including,
      without limitation, any article, notice, advertisement or other communication
      published in any newspaper, magazine or similar media, or broadcast over
      television or radio or the internet, in connection with the
      Offering.

    

    (l) Placement
      and Finder’s Fees. 
      No
      agent, broker, investment banker, finder, financial advisor or other person
      acting on behalf of Purchaser or under its authority is or will be entitled
      to
      any broker’s or finder’s fee or any other commission or similar fee, directly or
      indirectly, in connection with the Offering, and no person is entitled to any
      fee or commission or like payment in respect thereof based in any way on
      agreements, arrangements or understanding made by or on behalf of
      Purchaser.

    

    (m) Investment
      Risks.
      An
      investment in the Shares should not be made by a Purchaser who cannot afford
      the
      loss of his entire Purchase Price. The Purchaser acknowledges that the
      securities offered hereby have not been approved or disapproved by the
      Securities and Exchange Commission, or any state securities commission, nor
      has
      the Securities and Exchange Commission or any state securities commission passed
      upon the adequacy or accuracy of this Agreement or any of the contents hereof.
      Prior to making an investment in the Shares, the Purchaser has reviewed all
      reports filed by the Company with the SEC (the “SEC Reports”), including, most
      importantly, the Company’s most recent Current Report on Form 8-K, filed with
      the SEC on January 18, 2006, which reports on the Company’s acquisition of
      Airgroup Corporation, and has fully considered, among other things, the risk
      factors enumerated in such Current Report filed on Form 8-K prior to making
      this
      investment decision. 

    

    
      
         

      

      
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    (n) Legends.
      The
      certificates and agreements evidencing the Shares shall have endorsed thereon
      the following legend (and appropriate notations thereof will be made in the
      Company's stock transfer books), and stop transfer instructions reflecting
      these
      restrictions on transfer will be placed with the transfer agent of the
      Shares:

    

    

    “THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES
      REPRESENTED HEREBY HAVE BEEN TAKEN BY THE REGISTERED OWNER FOR INVESTMENT,
      AND
      WITHOUT A VIEW TO RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE SOLD,
      TRANSFERRED OR DISPOSED OF WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE
      ISSUER THAT SUCH TRANSFER OR DISPOSITION DOES NOT VIOLATE THE SECURITIES ACT
      OF
      1933, AS AMENDED, THE RULES AND REGULATIONS THEREUNDER OR OTHER APPLICABLE
      SECURITIES LAWS.”

    

    4. Representations
      and Warranties of the Company.
      The
      Company represents and warrants to Purchaser as follows:

    

    (a) Organization
      and Qualification.
      The
      Company is duly organized, validly existing and in good standing under the
      laws
      of its jurisdiction of organization, with the corporate power and authority
      to
      own and operate its business as presently conducted, except where the failure
      to
      be or have any of the foregoing would not have a material adverse effect on
      the
      Company. The Company is duly qualified as a foreign corporation or other entity
      to do business and is in good standing in each jurisdiction where the character
      of its properties owned or held under lease or the nature of their activities
      makes such qualification necessary, except for such failures to be so qualified
      or in good standing as would not have a material adverse effect on the
      Company.

    

    (b) Authority;
      Validity and Effect of Agreement.
      

    

    (i) The
      Company has the requisite corporate power and authority to execute and deliver
      this Agreement, perform its obligations under this Agreement, and conduct the
      Offering. The execution and delivery of this Agreement by the Company, the
      performance by the Company of its obligations hereunder, the Offering and all
      other necessary corporate action on the part of the Company have been duly
      authorized by its board of directors, and no other corporate proceedings on
      the
      part of the Company are necessary to authorize this Agreement or the Offering.
      This Agreement has been duly and validly executed and delivered by the Company
      and, assuming that it has been duly authorized, executed and delivered by
      Purchaser, constitutes a legal, valid and binding obligation of the Company,
      in
      accordance with its terms, subject to the effects of bankruptcy, insolvency,
      fraudulent conveyance, reorganization, moratorium and other similar laws
      relating to or affecting creditors’ rights generally, general equitable
      principles (whether considered in a proceeding in equity or at law) and an
      implied covenant of good faith and fair dealing.

    

    
      
         

      

      
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    (ii) The
      Shares have been duly authorized and, when issued and paid for in accordance
      with this Agreement, will be validly issued, fully paid and non-assessable
      shares of Common Stock with no personal liability resulting solely from the
      ownership of such shares and will be free and clear of all liens, charges,
      restrictions, claims and encumbrances imposed by or through the Company.

    

    (c) No
      Conflict; Required Filings and Consents.
      Neither
      the execution and delivery of this Agreement by the Company nor the performance
      by the Company of its obligations hereunder will: (i) conflict with the
      Company’s certificate of incorporation or bylaws; (ii) violate any statute, law,
      ordinance, rule or regulation, applicable to the Company or any of the
      properties or assets of the Company; or (iii) violate, breach, be in conflict
      with or constitute a default (or an event which, with notice or lapse of time
      or
      both, would constitute a default) under, or permit the termination of any
      provision of, or result in the termination of, the acceleration of the maturity
      of, or the acceleration of the performance of any obligation of the Company,
      or
      result in the creation or imposition of any lien upon any properties, assets
      or
      business of the Company under, any material contract or any order, judgment
      or
      decree to which the Company is a party or by which it or any of its assets
      or
      properties is bound or encumbered except, in the case of clauses (ii) and (iii),
      for such violations, breaches, conflicts, defaults or other occurrences which,
      individually or in the aggregate, would not have a material adverse effect
      on
      its obligation to perform its covenants under this Agreement. 

    

    5. Indemnification.
      Purchaser agrees to indemnify, defend and hold harmless the Company and its
      respective affiliates and agents from and against any and all demands, claims,
      actions or causes of action, judgments, assessments, losses, liabilities,
      damages or penalties and reasonable attorneys' fees and related disbursements
      incurred by the Company that arise out of or result from a breach of any
      representations or warranties made by Purchaser herein, and Purchaser agrees
      that in the event of any breach of any representations or warranties made by
      Purchaser herein, the Company may, at its option, forthwith rescind the sale
      of
      the Shares to Purchaser.

    

    6. Registration
      Rights.
      Purchaser shall be entitled to the rights and subject to the obligations set
      forth below:

    

    6.1 For
      the
      purpose of this Section 6, the following definitions shall apply:

    

    (a) "Exchange
      Act"
      shall
      mean the Securities Exchange Act of 1934, as amended, and the rules and
      regulations of the SEC thereunder, all as the same shall be in effect at the
      time.

    

    (b) "Person"
      shall
      mean an individual, partnership (general or limited), corporation, limited
      liability company, joint venture, business trust, cooperative, association
      or
      other form of business organization, whether or not regarded as a legal entity
      under applicable law, a trust (inter vivos or testamentary), an estate of a
      deceased, insane or incompetent person, a quasi-governmental entity, a
      government or any agency, authority, political subdivision or other
      instrumentality thereof, or any other entity.

    

    
      
         

      

      
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    (c) “Register,”
      “registered,”
and
      “registration”
shall
      refer to a registration effected by preparing and filing a registration
      statement in compliance with the Securities Act, and the declaration or order
      of
      effectiveness of such registration statement or document by the
      SEC.

    

    (d) "Registration
      Statement"
      shall
      mean any registration statement of the Company filed with the SEC pursuant
      to
      the provisions of Section 6.2 of this Agreement, which covers the resale of
      the
      Restricted Stock on an appropriate form then permitted by the SEC to be used
      for
      such registration and the sales contemplated to be made thereby under the
      Securities Act, or any similar rule that may be adopted by the SEC, and all
      amendments and supplements to such registration statement, including any pre-
      and post- effective amendments thereto, in each case including the prospectus
      contained therein, all exhibits thereto and all materials incorporated by
      reference therein.

    

    (e) "Restricted
      Stock"
      shall
      mean (i) the Shares; and (ii) any additional shares of Common Stock of the
      Company issued or issuable after the date hereof in respect of any of the
      foregoing securities, by way of a stock dividend or stock split; provided that
      as to any particular shares of Restricted Stock, such securities shall cease
      to
      constitute Restricted Stock when (x) a Registration Statement with respect
      to
      the sale of such securities shall have become effective under the Securities
      Act
      and such securities shall have been disposed of thereunder, (y) such securities
      are permitted to be transferred pursuant to Rule 144(k) (or any successor
      provision to such rule) under the Securities Act or (z) such securities are
      otherwise freely transferable to the public without further registration under
      the Securities Act.

    

    (f) "Selling
      Stockholders"
      shall
      mean Purchaser and any other purchaser of Shares in the Offering, and their
      respective successors and assigns.

    

    6.2. Registration
      of the Shares.

    

    (a) The
      Company shall notify all Selling Stockholders in writing at least ten
      (10) days
      prior to the filing of any registration statement under the Securities Act
      for
      purposes of registering securities of the Company, excluding registration
      statements on SEC Forms S-4, S-8 or any similar or successor forms, and will
      afford each such Selling Stockholder an opportunity to include in such
      registration statement all or part of such Restricted Stock held by such Selling
      Stockholder. Each Selling Stockholder desiring to include in any such
      registration statement all or any part of the Restricted Stock held by it shall,
      within five (5) days after the above-described notice from the Company, so
      notify the Company in writing. Such notice shall state the intended method
      of
      disposition of the Restricted Stock by such Selling Stockholder. If a Selling
      Stockholder decides not to include all of its Restricted Stock in any
      registration statement thereafter filed by the Company, such Selling Stockholder
      shall nevertheless continue to have the right to include any Restricted Stock
      in
      any subsequent registration statement or registration statements as may be
      filed
      by the Company with respect to offerings of its securities, all upon the terms
      and conditions set forth herein. The Company may, without the consent of the
      Selling Stockholders, withdraw such registration statement prior to its becoming
      effective if the proposal to register the securities proposed to be registered
      thereby is abandoned.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (b)
       In
      the
      event that any registration pursuant to Section 6.2(a) shall be, in whole or
      in
      part, an underwritten public offering of Common Stock on behalf of the Company,
      all Purchasers proposing to distribute their Restricted Stock through such
      underwriting shall enter into an underwriting agreement in customary form with
      the underwriter or underwriters selected for such underwriting by the Company.
      If the managing underwriter thereof advises the Company in writing that in
      its
      opinion the number of securities requested to be included in such registration
      exceeds the number which can be sold in an orderly manner in such offering
      within a price range acceptable to the Company, the Company shall include in
      such registration (i) first, the securities the Company proposes to sell, (ii)
      second, securities held by person with demand or mandatory registration rights,
      and (iii) third, the Restricted Stock and any other securities eligible and
      requested to be included in such registration to the extent that the number
      of
      shares to be registered under this clause (iii) will not, in the opinion of
      the
      managing underwriter, adversely affect the offering of the securities pursuant
      to clause (i) or (ii). In such a case, shares shall be registered pro rata
      among
      the holders of such Restricted Stock and registrable securities on the basis
      of
      the number of shares eligible for registration that are owned by all such
      holders and requested to be included in such registration. 

    

    (c) Notwithstanding
      anything to the contrary contained herein, the Company's obligation in Sections
      6.2(a) and 6.2(b) above shall extend only to the inclusion of the Restricted
      Stock in a Registration Statement. The Company shall have no obligation to
      assure the terms and conditions of distribution, to obtain a commitment from
      an
      underwriter relative to the sale of the Restricted Stock or to otherwise assume
      any responsibility for the manner, price or terms of the distribution of the
      Restricted Stock. 

    

    (d) The
      Company shall have the right to terminate or withdraw any registration initiated
      by it under this Section 6.2 prior to the effectiveness of such registration
      without thereby incurring liability to the holders of the Restricted Stock,
      regardless of whether any holder has elected to include securities in such
      registration. The Registration Expenses (as defined in Section 6.5) of such
      withdrawn registration shall be borne by the Company in accordance with
      Section 6.4 hereof.

    

    6.3. Registration
      Procedures.
      Whenever it is obligated to register any Restricted Stock pursuant to this
      Agreement, the Company shall:

    

    (a) prepare
      and file with the SEC a Registration Statement with respect to the Restricted
      Stock in the manner set forth in Section 6.2 hereof and use its reasonable
      best
      efforts to cause such Registration Statement to become effective as promptly
      as
      possible and to remain effective until the earlier of (i) the sale of all shares
      of Restricted Stock covered thereby, (ii) the availability under Rule 144 for
      the Selling Stockholder to immediately, freely resell without restriction all
      Restricted Stock covered thereby, or (iii) two (2) years from the date of this
      Agreement;

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (b) prepare
      and file with the SEC such amendments (including post-effective amendments)
      and
      supplements to such Registration Statement and the prospectus used in connection
      therewith as may be necessary to keep such Registration Statement effective
      for
      the period specified in Section 6.3(a) above and to comply with the provisions
      of the Act with respect to the disposition of all Restricted Stock covered
      by
      such Registration Statement in accordance with the intended method of
      disposition set forth in such Registration Statement for such
      period;

    

    (c) furnish
      to the Selling Stockholders such number of copies of the Registration Statement
      and the prospectus included therein (including each preliminary prospectus)
      as
      such person may reasonably request in order to facilitate the public sale or
      other disposition of the Restricted Stock covered by such Registration
      Statement;

    

    (d) use
      its
      reasonable best efforts to register or qualify the Restricted Stock covered
      by
      such Registration Statement under the state securities laws of such
      jurisdictions as any Selling Stockholder shall reasonably request; provided,
      however,
      that
      the Company shall not for any such purpose be required to qualify generally
      to
      transact business as a foreign corporation in any jurisdiction where it is
      not
      so qualified or to consent to general service of process in any such
      jurisdiction;

    

    (e) in
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter(s) of such offering. Each Selling Stockholder
      participating in such underwriting shall also enter into and perform its
      obligations under such an agreement, as described in Section
      6.2(b);

    

    (f) immediately
      notify each Selling Stockholder at any time when a prospectus relating thereto
      is required to be delivered under the Act, of the happening of any event as
      a
      result of which the prospectus contained in such Registration Statement, as
      then
      in effect, includes an untrue statement of a material fact or omits to state
      a
      material fact required or necessary to be stated therein in order to make the
      statements contained therein not misleading in light of the circumstances under
      which they were made. The Company will use reasonable efforts to amend or
      supplement such prospectus in order to cause such prospectus not to include
      any
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary to make the statements therein not misleading
      in
      the light of the circumstances under which they were made;

    

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

    

    (h) use
      its
      reasonable best efforts to list the Restricted Stock covered by such
      Registration Statement on each exchange or automated quotation system on which
      similar securities issued by the Company are then listed (with the listing
      application being made at the time of the filing of such Registration Statement
      or as soon thereafter as is reasonably practicable); 

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (i) notify
      each Selling Stockholder of any threat by the SEC or state securities commission
      to undertake a stop order with respect to sales under the Registration
      Statement; and 

    

    (j) cooperate
      in the timely removal of any restrictive legends from the shares of Restricted
      Stock in connection with the resale of such shares covered by an effective
      Registration Statement.

    

    6.4. Delay
      of Registration. 
      No
      Selling Stockholder shall have any right to obtain or seek an injunction
      restraining or otherwise delaying any such registration as the result of any
      controversy that might arise with respect to the interpretation or
      implementation of this Section 6.

    

    6.5 Expenses.

    

    (a) For
      the
      purposes of this Section 6.5, the term "Registration Expenses" shall mean:
      all
      expenses incurred by the Company in complying with Section 6.2 of this
      Agreement, including, without limitation, all registration and filing fees,
      printing expenses, fees and disbursements of counsel and independent public
      accountants for the Company, fees under state securities laws, fees of the
      National Association of Securities Dealers, Inc. ("NASD"), fees and expenses
      of
      listing shares of Restricted Stock on any securities exchange or automated
      quotation system on which the Company's shares are listed and fees of transfer
      agents and registrars. The term "Selling Expenses" shall mean: all underwriting
      discounts and selling commissions applicable to the sale of Restricted Stock
      and
      all accountable or non-accountable expenses paid to any underwriter in respect
      of such sale.

    

    (b) Except
      as
      otherwise provided herein, the Company will pay all Registration Expenses in
      connection with the Registration Statements filed pursuant to Section 6.2 of
      this Agreement. All Selling Expenses in connection with any Registration
      Statements filed pursuant to Section 6.1 of this Agreement shall be borne by
      the
      Selling Stockholders pro rata on the basis of the number of shares registered
      by
      each Selling Stockholder whose shares of Restricted Stock are covered by such
      Registration Statement, or by such persons other than the Company (except to
      the
      extent the Company may be a seller) as they may agree.

    

    6.6. Obligations
      of the Selling Stockholders.

    

    (a) In
      connection with each registration hereunder, each Selling Stockholder will
      furnish to the Company in writing such information with respect to it and the
      securities held by it and the proposed distribution by it, as shall be
      reasonably requested by the Company in order to assure compliance with
      applicable federal and state securities laws as a condition precedent to
      including the Selling Stockholder's Restricted Stock in the Registration
      Statement. Each Selling Stockholder shall also promptly notify the Company
      of
      any changes in such information included in the Registration Statement or
      prospectus as a result of which there is an untrue statement of material fact
      or
      an omission to state any material fact required or necessary to be stated
      therein in order to make the statements contained therein not misleading in
      light of the circumstances under which they were made.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (b) In
      connection with the filing of the Registration Statement, each Selling
      Stockholder shall furnish to the Company in writing such information and
      affidavits as the Company reasonably requests for use in connection with such
      Registration Statement or prospectus.

    

    (c) In
      connection with each registration pursuant to this Agreement, each Selling
      Stockholder agrees that it will not effect sales of any Restricted Stock until
      notified by the Company of the effectiveness of the Registration Statement,
      and
      thereafter will suspend such sales after receipt of telegraphic or written
      notice from the Company to suspend sales to permit the Company to correct or
      update a Registration Statement or prospectus. At the end of any period during
      which the Company is obligated to keep a Registration Statement current, each
      Selling Stockholder shall discontinue sales of Restricted Stock pursuant to
      such
      Registration Statement upon receipt of notice from the Company of its intention
      to remove from registration the Restricted Stock covered by such Registration
      Statement that remains unsold, and each Selling Stockholder shall notify the
      Company of the number of shares registered which remain unsold immediately
      upon
      receipt of such notice from the Company.

    

    6.7. Information
      Blackout and Holdbacks.

    

    (a) At
      any
      time when a Registration Statement effected pursuant to Section 6.2 is
      effective, upon written notice from the Company to Purchaser that the Company
      has determined in good faith that the sale of Restricted Stock pursuant to
      the
      Registration Statement would require disclosure of non-public material
      information, each Selling Stockholder shall suspend sales of Restricted Stock
      pursuant to such Registration Statement until such time as the Company notifies
      the Selling Stockholders that such material information has been disclosed
      to
      the public or has ceased to be material, or that sales pursuant to such
      Registration Statement may otherwise be resumed.

    

    (b) Notwithstanding
      any other provision of this Agreement, in the event that the Company undertakes
      a primary offering of shares of its unissued Common Stock, which may also
      include other securities (a "Primary Offering"), in which all of the shares
      of
      Restricted Stock are not included, the Investor shall not sell, transfer, make
      any short sale of, grant any option for the purchase of, or enter into any
      hedging or similar transaction with the same economic effect as a sale of,
      any
      Common Stock (or other securities) of the Company held by such Investor (except
      for shares included in the Primary Offering), during the thirty (30) days prior
      to the commencement of any such Primary Offering and ending one hundred fifty
      (150) days after completion of any such Primary Offering, unless the Company,
      in
      the case of a non-underwritten Primary Offering, or the managing underwriter,
      in
      the case of an underwritten Primary Offering, otherwise agree in writing. The
      Company may impose stop-transfer instructions with respect to the shares of
      Common Stock (or other securities) subject to the foregoing restriction until
      the end of said one hundred fifty (150) day period.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    6.8. Indemnification.

    

    (a) To
      the
      extent permitted by law, the Company shall indemnify, each Selling Stockholder,
      such Selling Stockholder’s respective partners, officers, directors,
      underwriters and each Person who controls any Selling Stockholder (within the
      meaning of the Securities Act) against all losses, claims, damages, liabilities
      and expenses caused by (i) any untrue statement of or alleged untrue statement
      of material fact contained in the Registration Statement, prospectus or
      preliminary prospectus or any amendment or supplement thereto, (ii) any omission
      of or alleged omission of a material fact required to be stated therein or
      necessary to make the statements therein not misleading, or (iii) any violation
      or alleged violation by the Company of the Securities Act, the Exchange Act,
      any
      state securities law or any rule or regulation promulgated under the Securities
      Act, the Exchange Act or any state securities law in connection with the
      offering covered by such registration statement (“Violations”); provided,
      however,
      that
      the indemnity agreement contained in this Section 6.8(a) shall not apply to
      amounts paid in settlement of any such loss, claim, damage, liability or action
      if such settlement is effected without the consent of the Company, which consent
      shall not be unreasonably withheld, nor shall the Company be liable in for
      any
      loss, claim, damage, liability or action to the extent that it arises out of
      or
      is based upon a Violation which occurs in reliance upon and in conformity with
      written information furnished expressly for use in connection with such
      registration by such Selling Stockholder, partner, officer, director,
      underwriter or controlling person of such Selling Stockholder occurs as a result
      of any failure to deliver a copy of the prospectus relating to such Registration
      Statement, or occurs as a result of any disposition of the Restricted Stock
      in a
      manner that fails to comply with the permitted methods of distribution
      identified within the Registration Statement.

    

    (b) To
      the
      extent permitted by law, each Selling Stockholder shall indemnify and hold
      harmless the Company, each of its directors, its officers and each person,
      if
      any, who controls the Company within the meaning of the Securities Act, any
      underwriter and any other Selling Stockholder selling securities under such
      registration statement or any of such other Selling Stockholder’s partners,
      directors or officers or any person who controls such Selling Stockholder,
      against any losses, claims, damages or liabilities (joint or several) to which
      the Company or any such director, officer, controlling person, underwriter
      or
      other such Selling Stockholder, or partner, director, officer or controlling
      person of such other Selling Stockholder, may become subject under the
      Securities Act, the Exchange Act or other federal or state law, insofar as
      such
      losses, claims, damages or liabilities (or actions in respect thereto) arise
      out
      of or are based upon any Violation, in each case to the extent (and only to
      the
      extent) that such Violation (i) occurs in reliance upon and in conformity with
      written information furnished by such Selling Stockholder to the Company for
      use
      in connection with such registration, (ii) occurs as a result of any failure
      to
      deliver a copy of the prospectus relating to such Registration Statement, or
      (iii) occurs as a result of any disposition of the Restricted Stock in a manner
      that fails to comply with the permitted methods of distribution identified
      within the Registration Statement.

    

    (c) Any
      Person entitled to indemnification hereunder shall (i) give prompt written
      notice to the indemnifying party of any claim with respect to which it seeks
      indemnification (provided that the failure to give prompt notice shall not
      impair any Person's right to indemnification hereunder to the extent such
      failure has not prejudiced the indemnifying party), and (ii) unless in such
      indemnified party's reasonable judgment a conflict of interest between such
      indemnified and indemnifying parties may exist with respect to such claim,
      permit such indemnifying party to assume the defense of such claim with counsel
      reasonably satisfactory to the indemnified party. If such defense is assumed,
      the indemnifying party shall not be subject to any liability for any settlement
      made by the indemnified party without its consent (but such consent shall not
      be
      unreasonably withheld). An indemnifying party who is not entitled to, or elects
      not to, assume the defense of a claim shall not be obligated to pay the fees
      and
      expenses of more than one counsel for all parties indemnified by such
      indemnifying party with respect to such claim, unless in the reasonable judgment
      of any indemnified party a conflict of interest may exist between such
      indemnified party and any other of such indemnified parties with respect to
      such
      claim.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (d)
       If
      the
      indemnification provided for in this Section 6.8 is held by a court of
      competent jurisdiction to be unavailable to an indemnified party with respect
      to
      any losses, claims, damages or liabilities referred to herein, the indemnifying
      party, in lieu of indemnifying such indemnified party thereunder, shall to
      the
      extent permitted by applicable law contribute to the amount paid or payable
      by
      such indemnified party as a result of such loss, claim, damage or liability
      in
      such proportion as is appropriate to reflect the relative fault of the
      indemnifying party on the one hand and of the indemnified party on the other
      in
      connection with the violation(s) described in Section 6.8(a) that resulted
      in
      such loss, claim, damage or liability, as well as any other relevant equitable
      considerations. The relative fault of the indemnifying party and of the
      indemnified party shall be determined by a court of law by reference to, among
      other things, whether the untrue or alleged untrue statement of a material
      fact
      or the omission to state a material fact relates to information supplied by
      the
      indemnifying party or by the indemnified party and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      statement or omission; provided,
      that in
      no event shall any contribution by a Selling Stockholder hereunder exceed the
      net proceeds from the offering received by such Selling
      Stockholder.

    

    (e) The
      indemnification provided for under this Agreement shall remain in full force
      and
      effect regardless of any investigation made by or on behalf of the indemnified
      party or any officer, director or controlling Person of such indemnified party
      and shall survive the transfer of securities. The Company also agrees to make
      such provisions as are reasonably requested by any indemnified party for
      contribution to such party in the event the Company's indemnification is
      unavailable for any reason. 

    

    7. Confidentiality.
      Purchaser acknowledges and agrees that:

    

    (a) All
      of
      the information contained herein is of a confidential nature and may be regarded
      as material non-public information under Regulation FD of the Securities
      Act.

    

    (b) This
      Agreement has been furnished to Purchaser by the Company for the sole purpose
      of
      enabling Purchaser to consider and evaluate an investment in the Company, and
      will be kept confidential by Purchaser and not used for any other
      purpose.

    

    (c) The
      information contained herein shall not, without the prior written consent of
      the
      Company, be disclosed by Purchaser to any person or entity, other than
      Purchaser’s personal financial and legal advisors for the sole purpose of
      evaluating an investment in the Company, and Purchaser will not, directly or
      indirectly, disclose or permit Purchaser’s personal financial and legal advisors
      to disclose, any of such information without the prior written consent of the
      Company.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (d) Purchaser
      shall make its representatives aware of the terms of this section and to be
      responsible for any breach of this Agreement by such representatives.

    

    (e) Purchaser
      shall not, without the prior written consent of the Company, directly or
      indirectly, make any statements, public announcements or release to trade
      publications or the press with respect to the subject matter of this Agreement
      and the other Offering Documents. 

    

    (f) If
      Purchaser decides to not pursue further investigation of the Company or to
      not
      participate in the Offering, Purchaser will promptly return this Agreement
      and
      any accompanying documentation to the Company.

    

    8. Non-Public
      Information. Purchaser
      acknowledges that information concerning the matters that are the subject matter
      of this Agreement may constitute material non-public information under United
      States federal securities laws, and that United States federal securities laws
      prohibit any person who has received material non-public information relating
      to
      the Company from purchasing or selling securities of the Company, or from
      communicating such information to any person under circumstances in which it
      is
      reasonably foreseeable that such person is likely to purchase or sell securities
      of the Company. Accordingly, until such time as any such non-public information
      has been adequately disseminated to the public, Purchaser shall not purchase
      or
      sell any securities of the Company, or communicate such information to any
      other
      person.

    

    9. Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties and supersedes
      all
      prior agreements and understandings, both written and oral, between the parties
      with respect to the subject matter hereto, and no party shall be liable or
      bound
      to any other party in any manner by any warranties, representations, guarantees
      or covenants except as specifically set forth in this Agreement. Nothing in
      this
      Agreement, express or implied, is intended to confer upon any party other than
      the parties hereto or their respective successors and assigns any rights,
      remedies, obligations or liabilities under or by reason of this Agreement,
      except as expressly provided in this Agreement.

    

    10. Amendment
      and Modification.
      This
      Agreement may not be amended, modified or supplemented except by an instrument
      or instruments in writing signed by the party against whom enforcement of any
      such amendment, modification or supplement is sought.

     

    11. Extensions
      and Waivers.
      At any
      time prior to the Closing, the parties hereto entitled to the benefits of a
      term
      or provision may (a) extend the time for the performance of any of the
      obligations or other acts of the parties hereto, (b) waive any inaccuracies
      in
      the representations and warranties contained herein or in any document,
      certificate or writing delivered pursuant hereto, or (c) waive compliance with
      any obligation, covenant, agreement or condition contained herein. Any agreement
      on the part of a party to any such extension or waiver shall be valid only
      if
      set forth in an instrument or instruments in writing signed by the party against
      whom enforcement of any such extension or waiver is sought. No failure or delay
      on the part of any party hereto in the exercise of any right hereunder shall
      impair such right or be construed to be a waiver of, or acquiescence in, any
      breach of any representation, warranty, covenant or agreement.

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    12. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns, provided, however, that no party
      hereto may assign its rights or delegate its obligations under this Agreement
      without the express prior written consent of the other party hereto. Except
      as
      provided in Sections 5 and 6, nothing in this Agreement is intended to confer
      upon any person not a party hereto (and their successors and assigns) any
      rights, remedies, obligations or liabilities under or by reason of this
      Agreement.

    

    13. Survival
      of Representations, Warranties and Covenants.
      The
      representations and warranties contained herein shall survive the Closing and
      shall thereupon terminate 18 months from the Closing, except that the
      representations contained in Sections 3(a), 3(b), 4(a), and 4(b) shall survive
      indefinitely. All covenants and agreements contained herein which by their
      terms
      contemplate actions following the Closing shall survive the Closing and remain
      in full force and effect in accordance with their terms. All other covenants
      and
      agreements contained herein shall not survive the Closing and shall thereupon
      terminate.

    

    14. Headings;
      Definitions.
      The
      Section headings contained in this Agreement are inserted for convenience of
      reference only and will not affect the meaning or interpretation of this
      Agreement. All references to Sections contained herein mean Sections of this
      Agreement unless otherwise stated. All capitalized terms defined herein are
      equally applicable to both the singular and plural forms of such
      terms 

    

    15. Severability.
      If any
      provision of this Agreement or the application thereof to any person or
      circumstance is held to be invalid or unenforceable to any extent, the remainder
      of this Agreement shall remain in full force and effect and shall be reformed
      to
      render the Agreement valid and enforceable while reflecting to the greatest
      extent permissible the intent of the parties.

    

    16. Notices.
      All
      notices hereunder shall be sufficiently given for all purposes hereunder if
      in
      writing and delivered personally, sent by documented overnight delivery service
      or, to the extent receipt is confirmed, telecopy, telefax or other electronic
      transmission service to the appropriate address or number as set forth
      below:

    

    If
      to
      the Company:

    

    Radiant
      Logistics, Inc.

    1604
      Locust Street

    Third
      Floor

    Philadelphia,
      PA 19103

    Attention:
      Bohn H. Crain 

    Chief
      Executive Officer

    

    With
      a
      Copy to:

    

    Fox
      Rothschild LLP

    c/o
      Vincent
      A
      Vietti, Esq.

    Princeton
      Pike Corp. Center

    997
      Lenox
      Drive, Building 3

    Lawrenceville,
      New Jersey 08648-2311

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    If
      to
      Purchaser:

    

    To
      that
      address indicated on the signature page hereof.

    

    17. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      Commonwealth of Pennsylvania, without regard to the laws that might otherwise
      govern under applicable principles of conflicts of laws thereof, except to
      the
      extent that the General Corporation Law of the State of Delaware shall apply
      to
      the internal corporate governance of the Company.

    

    18. Arbitration. If
      a
      dispute arises as to the interpretation of this Agreement, it shall be decided
      in an arbitration proceeding conforming to the Rules of the American Arbitration
      Association applicable to commercial arbitration then in effect at the time
      of
      the dispute. The arbitration shall take place in Philadelphia, Pennsylvania.
      The
      decision of the arbitrators shall be conclusively binding upon the parties
      and
      final and such decision shall be enforceable as a judgment in any court of
      competent jurisdiction. The parties shall share equally the costs of the
      arbitration.

    

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

    

    [Remainder
      of page intentionally left blank]

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, intending to be legally bound, the parties hereto have caused
      this Agreement to be executed as of the date set forth below.

     

    
      	 	 	 
	 	PURCHASER
	 	 
	
              Date:
                January __, 2006

            	
            
	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	Name:
	 	Title:
	 	Address: 
	 	 
	 	 

    

    
      	 	 	 
	 	
            
	 	
              Number
                of Shares Purchased: _____________

               

              Purchase
                Price 

              @
                $.44 per Share: $_______________________

            
	 	 
	 	RADIANT LOGISTICS, INC.
	 	 
	 
 	 
 	 
 
	
              Date:
                January __, 2006

            	By:  	/s/ 
	 	Bohn H. Crain
	 	
              Chief
                Executive Officer

            

    

     

    
      
         

      

      
        17AMENDED AND RESTATED

                      STANDBY EQUITY DISTRIBUTION AGREEMENT

THIS AMENDED AND RESTATED STANDBY EQUITY DISTRIBUTION  AGREEMENT dated as of the
3rd day of February 2006 (the "Agreement") between CORNELL CAPITAL PARTNERS, LP,
a Delaware limited partnership (the "Investor"), and HEALTHRENU MEDICAL, INC., a
corporation  organized  and existing  under the laws of the State of Nevada (the
"Company").

      WHEREAS,  on May 23, 2005,  the parties  hereto  entered into the original
Standby Equity  Distribution  Agreement.  The parties desire that this Agreement
amend and restate the original Standby Equity Distribution Agreement.

      WHEREAS,  the  parties  desire  that,  upon the terms and  subject  to the
conditions  contained herein,  the Company shall issue and sell to the Investor,
from time to time as provided  herein,  and the Investor shall purchase from the
Company up to Ten Million Dollars  ($10,000,000)  of the Company's common stock,
par value $0.001 per share (the "Common Stock"); and

      WHEREAS,  such investments will be made in reliance upon the provisions of
Regulation D ("Regulation D") of the Securities Act of 1933, as amended, and the
regulations  promulgated  thereunder (the  "Securities  Act"),  and or upon such
other exemption from the registration  requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder.

      WHEREAS,  the Company has engaged  Monitor  Capital,  Inc. (the "Placement
Agent"),  to act as the Company's  exclusive  placement agent in connection with
the sale of the Company's Common Stock to the Investor hereunder pursuant to the
Placement  Agent  Agreement  dated May 23,  2005 by and among the  Company,  the
Placement Agent and the Investor (the "Placement Agent Agreement").

      NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I.
                               Certain Definitions

      Section 1.1.  "Advance"  shall mean the portion of the  Commitment  Amount
requested by the Company in the Advance Notice.

      Section 1.2.  "Advance  Date" shall mean the first (1st) Trading Day after
expiration of the applicable Pricing Period for each Advance.

      Section 1.3.  "Advance  Notice" shall mean a written notice in the form of
Exhibit A attached hereto to the Investor  executed by an officer of the Company
and setting forth the Advance amount that the Company requests from the Investor
and the Advance Date.
<PAGE>

      Section  1.4.  "Advance  Notice  Date"  shall  mean each date the  Company
delivers to the  Investor an Advance  Notice  requiring  the Investor to advance
funds to the Company,  subject to the terms of this Agreement. No Advance Notice
Date shall be less than five (5)  Trading  Days after the prior  Advance  Notice
Date.

      Section 1.5.  "Bid Price" shall mean,  on any date,  the closing bid price
(as reported by Bloomberg  L.P.) of the Common Stock on the Principal  Market or
if the Common Stock is not traded on a Principal  Market,  the highest  reported
bid price for the Common  Stock,  as furnished by the  National  Association  of
Securities Dealers, Inc.

      Section  1.6.  "Closing"  shall mean one of the closings of a purchase and
sale of Common Stock pursuant to Section 2.3.

      Section 1.7.  "Commitment Amount" shall mean the aggregate amount of up to
Ten Million  Dollars  ($10,000,000)  which the Investor has agreed to provide to
the Company in order to purchase  the  Company's  Common  Stock  pursuant to the
terms and conditions of this Agreement.

      Section 1.8.  "Commitment  Period" shall mean the period commencing on the
earlier to occur of (i) the  Effective  Date,  or (ii) such  earlier date as the
Company and the  Investor  may  mutually  agree in writing,  and expiring on the
earliest to occur of (x) the date on which the Investor  shall have made payment
of Advances  pursuant to this  Agreement in the aggregate  amount of Ten Million
Dollars  ($10,000,000),  (y) the date this  Agreement is terminated  pursuant to
Section  2.4,  or (z) the date  occurring  twenty-four  (24)  months  after  the
Effective Date.

      Section 1.9.  "Common  Stock" shall mean the Company's  common stock,  par
value $0.001 per share.

      Section  1.10.  "Condition  Satisfaction  Date" shall have the meaning set
forth in Section 7.2.

      Section 1.11.  "Damages" shall mean any loss,  claim,  damage,  liability,
costs and expenses (including,  without limitation,  reasonable  attorney's fees
and disbursements and costs and expenses of expert witnesses and investigation).

      Section 1.12.  "Effective Date" shall mean the date on which the SEC first
declares  effective  a  Registration  Statement  registering  the  resale of the
Registrable Securities as set forth in Section 7.2(a).

      Section 1.13. Intentionally Omitted.

      Section 1.14.  "Exchange  Act" shall mean the  Securities  Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

      Section  1.15.   "Material  Adverse  Effect"  shall  mean  any  condition,
circumstance, or situation that would prohibit or otherwise materially interfere
with the ability of the Company to enter into and perform any of its obligations
under this  Agreement  or the  Registration  Rights  Agreement  in any  material
respect.

                                       2
<PAGE>

      Section  1.16.  "Market  Price"  shall mean the lowest  VWAP of the Common
Stock during the Pricing Period.

      Section  1.17.  "Maximum  Advance  Amount"  shall be Three  Hundred  Fifty
Thousand Dollars ($350,000) per Advance Notice.

      Section  1.18.  "NASD" shall mean the National  Association  of Securities
Dealers, Inc.

      Section  1.19.  "Person"  shall  mean  an  individual,  a  corporation,  a
partnership, an association, a trust or other entity or organization,  including
a government or political subdivision or an agency or instrumentality thereof.

      Section  1.20.  "Placement  Agent"  shall mean  Monitor  Capital,  Inc., a
registered broker-dealer.

      Section 1.21. "Pricing Period" shall mean the five (5) consecutive Trading
Days after the Advance Notice Date.

      Section 1.22.  "Principal  Market" shall mean the Nasdaq National  Market,
the Nasdaq SmallCap Market, the American Stock Exchange,  the OTC Bulletin Board
or the New York Stock Exchange,  whichever is at the time the principal  trading
exchange or market for the Common Stock.

      Section 1.23.  "Purchase Price" shall be set at ninety seven percent (97%)
of the Market Price during the Pricing Period.

      Section  1.24.  "Registrable  Securities"  shall mean the shares of Common
Stock to be issued hereunder in respect of which the Registration  Statement has
not been declared effective by the SEC.

      Section 1.25.  "Registration Rights Agreement" shall mean the Registration
Rights  Agreement dated May 23, 2005,  regarding the filing of the  Registration
Statement for the resale of the Registrable Securities, entered into between the
Company and the Investor.

      Section 1.26. "Registration Statement" shall mean a registration statement
on Form  S-1 or  SB-2  (if use of such  form is then  available  to the  Company
pursuant to the rules of the SEC and, if not, on such other form  promulgated by
the SEC for which the Company then  qualifies  and which counsel for the Company
shall deem appropriate,  and which form shall be available for the resale of the
Registrable  Securities  to be  registered  thereunder  in  accordance  with the
provisions  of this  Agreement and the  Registration  Rights  Agreement,  and in
accordance with the intended method of distribution of such securities), for the
registration of the resale by the Investor of the Registrable  Securities  under
the Securities Act.

      Section  1.27.  "Regulation  D" shall  have the  meaning  set forth in the
recitals of this Agreement.

      Section 1.28. "SEC" shall mean the Securities and Exchange Commission.

                                       3
<PAGE>

      Section  1.29.  "Securities  Act" shall have the  meaning set forth in the
recitals of this Agreement.

      Section 1.30.  "SEC  Documents"  shall mean Annual Reports on Form 10-KSB,
Quarterly  Reports  on  Form  10-QSB,  Current  Reports  on Form  8-K and  Proxy
Statements of the Company as supplemented to May 23, 2005,  filed by the Company
for a period of at least twelve (12) months  immediately  preceding May 23, 2005
or the  Advance  Date,  as the case may be,  until  such time as the  Company no
longer  has an  obligation  to  maintain  the  effectiveness  of a  Registration
Statement as set forth in the Registration Rights Agreement.

      Section  1.31.  "Trading Day" shall mean any day during which the New York
Stock Exchange shall be open for business.

      Section 1.32.  "VWAP" shall mean the volume weighted  average price of the
Company's Common Stock as quoted by Bloomberg, LP.

                                   ARTICLE II.
                                    Advances

      Section 2.1. Advances.

            Upon the terms and conditions set forth herein  (including,  without
limitation,  the  provisions of Article VII hereof),  the Company may request an
Advance by the  Investor  by the  delivery of an Advance  Notice.  The number of
shares of Common Stock that the Investor shall purchase pursuant to each Advance
shall be determined by dividing the amount of the Advance by the Purchase Price.
No fractional shares shall be issued.  Fractional shares shall be rounded to the
next higher whole number of shares. The aggregate maximum amount of all Advances
that the  Investor  shall be obligated  to make under this  Agreement  shall not
exceed the Commitment Amount.

      Section 2.2. Mechanics.

            (a) Advance Notice.  At any time during the Commitment  Period,  the
Company may deliver an Advance Notice to the Investor, subject to the conditions
set forth in Section  7.2;  provided,  however,  the amount for each  Advance as
designated by the Company in the applicable  Advance  Notice,  shall not be more
than the Maximum Advance Amount.  The aggregate amount of the Advances  pursuant
to  this  Agreement  shall  not  exceed  the  Commitment   Amount.  The  Company
acknowledges  that the  Investor may sell shares of the  Company's  Common Stock
corresponding  with a  particular  Advance  Notice  after the Advance  Notice is
received by the  Investor.  There  shall be a minimum of five (5)  Trading  Days
between each Advance Notice Date.

            (b) Date of Delivery of Advance  Notice.  An Advance Notice shall be
deemed delivered on (i) the Trading Day it is received by facsimile or otherwise
by the Investor if such notice is received  prior to 12:00 noon Eastern Time, or
(ii) the  immediately  succeeding  Trading Day if it is received by facsimile or
otherwise after 12:00 noon Eastern Time on a Trading Day or at any time on a day
which is not a Trading Day. No Advance  Notice may be deemed  delivered on a day
that is not a Trading Day.

                                       4
<PAGE>

      Section 2.3. Closings.  On each Advance Date (i) the Company shall deliver
to the Investor such number of shares of the Common Stock registered in the name
of the  Investor as shall equal (x) the amount of the Advance  specified in such
Advance Notice pursuant to Section 2.1 herein, divided by (y) the Purchase Price
and (ii) upon receipt of such shares,  the Investor shall deliver to the Company
the amount of the Advance  specified in the Advance  Notice by wire  transfer of
immediately  available funds. In addition, on or prior to the Advance Date, each
of the  Company  and the  Investor  shall  deliver  to the other all  documents,
instruments and writings  required to be delivered by either of them pursuant to
this  Agreement in order to implement and effect the  transactions  contemplated
herein.  To the  extent  the  Company  has not  paid  the  fees,  expenses,  and
disbursements  of the Investor in accordance with Section 12.4, or the Company's
counsel  fees,  the  amount of such fees,  expenses,  and  disbursements  may be
deducted by the Investor (and shall be paid to the relevant  party) directly out
of the  proceeds of the Advance with no reduction in the amount of shares of the
Company's Common Stock to be delivered on such Advance Date.

      Section 2.4. Termination of Investment.  The obligation of the Investor to
make an  Advance to the  Company  pursuant  to this  Agreement  shall  terminate
permanently  (including  with  respect  to an  Advance  Date  that  has  not yet
occurred)  in the event that (i) there shall occur any stop order or  suspension
of the  effectiveness  of the  Registration  Statement for an aggregate of fifty
(50)  Trading  Days,  other  than due to the acts of the  Investor,  during  the
Commitment  Period,  and (ii) the Company  shall at any time fail  materially to
comply with the  requirements of Article VI and such failure is not cured within
thirty (30) days after receipt of written  notice from the  Investor,  provided,
however,  that  this  termination  provision  shall  not  apply  to  any  period
commencing upon the filing of a  post-effective  amendment to such  Registration
Statement  and ending upon the date on which such post  effective  amendment  is
declared effective by the SEC.

      Section 2.5.  Agreement to Advance Funds.  The Investor  agrees to advance
the amount  specified in the Advance  Notice to the Company after the completion
of each of the following  conditions and the other  conditions set forth in this
Agreement:

            (a) the execution and delivery by the Company, and the Investor,  of
this Agreement and the Exhibits hereto;

            (b) the  Investor  shall have  received  the shares of Common  Stock
applicable to the Advance in  accordance  with Section 2.3. Such shares shall be
free of restrictive legends;

            (c) the Company's  Registration Statement with respect to the resale
of the Registrable  Securities in accordance with the terms of the  Registration
Rights Agreement shall have been declared effective by the SEC;

            (d) the  Company  shall  have  obtained  all  material  permits  and
qualifications  required by any  applicable  state for the offer and sale of the
Registrable Securities,  or shall have the availability of exemptions therefrom.
The sale and issuance of the Registrable  Securities shall be legally  permitted
by all laws and regulations to which the Company is subject;

            (e) the  Company  shall have filed with the  Commission  in a timely
manner  all  reports,  notices  and other  documents  required  of a  "reporting
company" under the Exchange Act and applicable Commission regulations;

                                       5
<PAGE>

            (f) the fees as set forth in Section 12.4 below shall have been paid
or can be withheld as provided in Section 2.3; and

            (g) the  conditions  set  forth  in  Section  7.2  shall  have  been
satisfied;

            (h)  the   Company   shall  have   provided   to  the   Investor  an
acknowledgement,  from Ham, Langston & Brezina, LLP as to its ability to provide
all consents  required in order to file a  registration  statement in connection
with this transaction; and

            (i) The Company's transfer agent shall be DWAC eligible.

      Section 2.6. Lock Up Period. On the date hereof,  the Company shall obtain
from each officer and director a lock-up  agreement,  as defined  below,  in the
form annexed hereto as Schedule 2.6 agreeing to only sell in compliance with the
volume limitation of Rule 144.

      Section  2.7.  Hardship.  In the event the  Investor  sells  shares of the
Company's  Common Stock after receipt of an Advance Notice and the Company fails
to perform its  obligations  as mandated in Section  2.3, and  specifically  the
Company  fails to  deliver to the  Investor  on the  Advance  Date the shares of
Common Stock corresponding to the applicable Advance,  the Company  acknowledges
that the Investor shall suffer financial  hardship and therefore shall be liable
for any and all losses,  commissions,  fees, or financial hardship caused to the
Investor.

                                  ARTICLE III.
                   Representations and Warranties of Investor

      Investor  hereby  represents and warrants to, and agrees with, the Company
that the following are true and as of May 23, 2005 and as of each Advance Date:

      Section  3.1.  Organization  and  Authorization.   The  Investor  is  duly
incorporated  or  organized  and  validly  existing in the  jurisdiction  of its
incorporation  or  organization  and has all  requisite  power and  authority to
purchase and hold the securities issuable hereunder.  The decision to invest and
the execution and delivery of this Agreement by such Investor,  the  performance
by such  Investor of its  obligations  hereunder  and the  consummation  by such
Investor of the transactions  contemplated  hereby have been duly authorized and
requires no other  proceedings on the part of the Investor.  The undersigned has
the right,  power and  authority to execute and deliver this  Agreement  and all
other  instruments  (including,  without  limitations,  the Registration  Rights
Agreement), on behalf of the Investor. This Agreement has been duly executed and
delivered by the Investor and,  assuming the  execution and delivery  hereof and
acceptance thereof by the Company,  will constitute the legal, valid and binding
obligations of the Investor, enforceable against the Investor in accordance with
its terms.

      Section 3.2.  Evaluation  of Risks.  The Investor has such  knowledge  and
experience in financial tax and business  matters as to be capable of evaluating
the  merits  and risks of,  and  bearing  the  economic  risks  entailed  by, an
investment  in the Company and of protecting  its  interests in connection  with
this  transaction.  It recognizes that its investment in the Company  involves a
high degree of risk.

                                       6
<PAGE>

      Section 3.3. No Legal Advice From the Company.  The Investor  acknowledges
that it had the  opportunity  to  review  this  Agreement  and the  transactions
contemplated  by this Agreement with his or its own legal counsel and investment
and tax  advisors.  The Investor is relying  solely on such counsel and advisors
and  not on any  statements  or  representations  of the  Company  or any of its
representatives  or agents for legal,  tax or investment  advice with respect to
this  investment,  the  transactions  contemplated  by  this  Agreement  or  the
securities laws of any jurisdiction.

      Section 3.4. Investment Purpose. The securities are being purchased by the
Investor for its own account,  and for investment  purposes and without any view
to the  distribution,  assignment  or resale to others or  fractionalization  in
whole or in part.  The Investor  agrees not to assign or in any way transfer the
Investor's  rights to the  securities or any interest  therein and  acknowledges
that the Company will not recognize any purported  assignment or transfer except
in accordance with applicable Federal and state securities laws. No other person
has or will have a direct or indirect beneficial interest in the securities. The
Investor  agrees not to sell,  hypothecate or otherwise  transfer the Investor's
securities  unless the securities  are  registered  under Federal and applicable
state securities laws or unless,  in the opinion of counsel  satisfactory to the
Company, an exemption from such laws is available.

      Section 3.5. Accredited Investor. The Investor is an "Accredited Investor"
as that term is defined in Rule 501(a)(3) of Regulation D of the Securities Act.

      Section 3.6. Information. The Investor and its advisors (and its counsel),
if any,  have  been  furnished  with all  materials  relating  to the  business,
finances and  operations of the Company and  information  it deemed  material to
making an informed investment decision.  The Investor and its advisors,  if any,
have been  afforded  the  opportunity  to ask  questions  of the Company and its
management.  Neither such  inquiries nor any other due diligence  investigations
conducted by such Investor or its advisors, if any, or its representatives shall
modify,  amend  or  affect  the  Investor's  right  to  rely  on  the  Company's
representations  and  warranties  contained  in  this  Agreement.  The  Investor
understands that its investment  involves a high degree of risk. The Investor is
in a position  regarding  the  Company,  which,  based upon  employment,  family
relationship or economic bargaining power,  enabled and enables such Investor to
obtain information from the Company in order to evaluate the merits and risks of
this investment. The Investor has sought such accounting,  legal and tax advice,
as it has  considered  necessary to make an informed  investment  decision  with
respect to this transaction.

      Section  3.7.  Receipt of  Documents.  The  Investor  and its counsel have
received and read in their entirety: (i) this Agreement and the Exhibits annexed
hereto;  (ii) all due  diligence and other  information  necessary to verify the
accuracy and  completeness  of such  representations,  warranties and covenants;
(iii) the  Company's  Form 10-KSB for the year ended  September  30, 2004,  Form
10-QSB for the period  ended  December  31,  2004 and Form 10-QSB for the period
ended March 31, 2005;  and (iv) answers to all questions the Investor  submitted
to the Company  regarding an  investment  in the  Company;  and the Investor has
relied on the information contained therein and has not been furnished any other
documents, literature, memorandum or prospectus.

                                       7
<PAGE>

      Section 3.8. Registration Rights Agreement.  The parties have entered into
the Registration Rights Agreement dated May 23, 2005.

      Section 3.9. No General Solicitation.  Neither the Company, nor any of its
affiliates,  nor any person  acting on its or their  behalf,  has engaged in any
form of general  solicitation  or general  advertising  (within  the  meaning of
Regulation D under the Securities  Act) in connection  with the offer or sale of
the shares of Common Stock offered hereby.

      Section 3.10. Not an Affiliate.  The Investor is not an officer,  director
or a person that  directly,  or indirectly  through one or more  intermediaries,
controls or is controlled by, or is under common control with the Company or any
"Affiliate"  of the  Company  (as  that  term  is  defined  in  Rule  405 of the
Securities Act).

      Section 3.11. Trading  Activities.  The Investor's trading activities with
respect to the Company's Common Stock shall be in compliance with all applicable
federal  and state  securities  laws,  rules and  regulations  and the rules and
regulations  of the  Principal  Market on which the  Company's  Common  Stock is
listed or traded.  Neither the  Investor  nor its  affiliates  has an open short
position in the Common Stock of the Company,  the Investor  agrees that it shall
not, and that it will cause its  affiliates not to, engage in any short sales of
or hedging  transactions  with respect to the Common  Stock,  provided  that the
Company  acknowledges  and agrees  that upon  receipt  of an Advance  Notice the
Investor has the right to sell the shares to be issued to the Investor  pursuant
to the Advance Notice during the applicable Pricing Period.

                                   ARTICLE IV.
                  Representations and Warranties of the Company

      Except as stated below, on the disclosure  schedules  attached hereto (the
"Disclosure Schedules") or in the SEC Documents (as defined herein), the Company
hereby  represents  and warrants to, and covenants  with,  the Investor that the
following are true and correct as of May 23, 2005:

      Section  4.1.   Organization  and  Qualification.   The  Company  is  duly
incorporated  or  organized  and  validly  existing in the  jurisdiction  of its
incorporation or organization  and has all requisite  corporate power to own its
properties  and to carry on its  business  as now being  conducted.  Each of the
Company and its  subsidiaries  is duly qualified as a foreign  corporation to do
business and is in good  standing in every  jurisdiction  in which the nature of
the business conducted by it makes such qualification  necessary,  except to the
extent that the failure to be so qualified or be in good standing would not have
a Material Adverse Effect on the Company and its subsidiaries taken as a whole.

      Section   4.2.   Authorization,   Enforcement,   Compliance   with   Other
Instruments.  (i) The Company has the requisite corporate power and authority to
enter into and perform this Agreement,  the Registration  Rights Agreement,  the
Placement  Agent  Agreement and any related  agreements,  in accordance with the
terms hereof and thereof, (ii) the execution and delivery of this Agreement, the
Registration  Rights  Agreement,  the Placement  Agent Agreement and any related
agreements  by the  Company  and  the  consummation  by it of  the  transactions
contemplated  hereby and thereby,  have been duly  authorized  by the  Company's
Board of Directors and no further  consent or  authorization  is required by the
Company, its Board of Directors or its stockholders,  (iii) this Agreement,  the
Registration  Rights  Agreement,  the Placement  Agent Agreement and any related
agreements  have been duly  executed and  delivered  by the  Company,  (iv) this
Agreement,  the Registration Rights Agreement, the Placement Agent Agreement and
any related  agreements  and assuming  the  execution  and delivery  thereof and
acceptance by the Investor  constitute the valid and binding  obligations of the
Company  enforceable  against the Company in accordance with their terms, except
as such  enforceability  may be  limited  by  general  principles  of  equity or
applicable bankruptcy,  insolvency,  reorganization,  moratorium, liquidation or
similar laws relating to, or affecting generally,  the enforcement of creditors'
rights and remedies.

                                       8
<PAGE>

      Section 4.3. Capitalization. As of the date hereof, the authorized capital
stock of the Company  consists of 50,000,000  shares of Common Stock,  par value
$0.001 per share and 5,000,000  shares of Preferred  Stock, par value $0.001 per
share,  of which  1,500,000  shares are  designated as Series 2000A  Convertible
Preferred Stock and 500,000 shares are designated as 2003A  Preferred  Stock. As
of May 23,  2005,  29,897,531  shares of Common Stock and 1,763 shares of Series
2000A  Convertible  Preferred  Stock were  issued and  outstanding.  All of such
outstanding shares have been validly issued and are fully paid and nonassessable
except as disclosed in the Disclosure Schedules.  Except as disclosed in the SEC
Documents,  no shares of Common  Stock are subject to  preemptive  rights or any
other similar rights or any liens or  encumbrances  suffered or permitted by the
Company.  Except as disclosed in the SEC Documents,  as of the date hereof,  (i)
there are no outstanding options, warrants, scrip, rights to subscribe to, calls
or commitments of any character  whatsoever relating to, or securities or rights
convertible  into,  any  shares of  capital  stock of the  Company or any of its
subsidiaries, or contracts, commitments, understandings or arrangements by which
the  Company  or  any of  its  subsidiaries  is or may  become  bound  to  issue
additional  shares of capital stock of the Company or any of its subsidiaries or
options,  warrants,  scrip,  rights to subscribe to, calls or commitments of any
character  whatsoever relating to, or securities or rights convertible into, any
shares of capital  stock of the Company or any of its  subsidiaries,  (ii) there
are no outstanding debt securities  (iii) there are no outstanding  registration
statements  other  than  on  Form  S-8  and  (iv)  there  are no  agreements  or
arrangements  under which the Company or any of its subsidiaries is obligated to
register the sale of any of their  securities  under the  Securities Act (except
pursuant to the  Registration  Rights  Agreement).  There are no  securities  or
instruments  containing   anti-dilution  or  similar  provisions  that  will  be
triggered by this Agreement or any related  agreement or the consummation of the
transactions  described  herein or therein.  The Company  has  furnished  to the
Investor,  or made  available  through the SEC's website at  http://www.sec.gov,
true and correct copies of the Company's  Articles of Incorporation,  as amended
and as in effect on May 23,  2005 (the  "Articles  of  Incorporation"),  and the
Company's By-laws,  as in effect on May 23, 2005 (the "By-laws"),  and the terms
of all  securities  convertible  into or  exercisable  for Common  Stock and the
material rights of the holders thereof in respect thereto.

      Section 4.4. No Conflict. The execution,  delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated  hereby  will not (i)  result in a  violation  of the  Articles  of
Incorporation,  any certificate of  designations  of any  outstanding  series of
preferred  stock of the Company or By-laws or (ii) conflict with or constitute a
default (or an event  which with notice or lapse of time or both would  become a
default)  under,  or  give to  others  any  rights  of  termination,  amendment,
acceleration or cancellation of, any material agreement, indenture or instrument
to which  the  Company  or any of its  subsidiaries  is a party,  or result in a

                                       9
<PAGE>

violation of any law, rule,  regulation,  order,  judgment or decree  (including
federal and state  securities laws and regulations and the rules and regulations
of the Principal  Market on which the Common Stock is quoted)  applicable to the
Company or any of its subsidiaries or by which any material property or asset of
the  Company or any of its  subsidiaries  is bound or  affected  and which would
cause a Material  Adverse  Effect.  Except as  disclosed  in the SEC  Documents,
neither the Company nor its  subsidiaries  is in  violation of any term of or in
default under its Articles of Incorporation  or By-laws or their  organizational
charter or by-laws, respectively, or any material contract, agreement, mortgage,
indebtedness,  indenture,  instrument, judgment, decree or order or any statute,
rule or regulation  applicable to the Company or its subsidiaries.  The business
of the Company and its  subsidiaries  is not being conducted in violation of any
material law, ordinance, regulation of any governmental entity applicable to it.
Except as specifically  contemplated by this Agreement and as required under the
Securities  Act and any  applicable  state  securities  laws, the Company is not
required to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental  agency in order for it to execute,
deliver  or  perform  any of its  obligations  under  or  contemplated  by  this
Agreement or the  Registration  Rights  Agreement in  accordance  with the terms
hereof  or  thereof.   All  consents,   authorizations,   orders,   filings  and
registrations  which the  Company is required to obtain or effect on or prior to
May 23, 2005 pursuant to the  preceding  sentence have been obtained or effected
on or prior to May 23, 2005. The Company and its subsidiaries are unaware of any
fact or circumstance which might give rise to any of the foregoing.

      Section 4.5. SEC Documents;  Financial Statements.  Since January 1, 2003,
the  Company  has filed all  reports,  schedules,  forms,  statements  and other
documents required to be filed by it with the SEC under of the Exchange Act. The
Company has delivered to the Investor or its representatives,  or made available
through the SEC's website at http://www.sec.gov, true and complete copies of the
SEC Documents.  As of their respective  dates,  the financial  statements of the
Company disclosed in the SEC Documents (the "Financial  Statements") 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 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 exclude
footnotes or may be condensed or summary  statements) and, fairly present in all
material respects the financial  position of the Company as of the dates thereof
and the  results of its  operations  and cash flows for the  periods  then ended
(subject,  in the  case  of  unaudited  statements,  to  normal  year-end  audit
adjustments).  No other  information  provided by or on behalf of the Company to
the  Investor  which is not  included in the SEC  Documents  contains any untrue
statement of a material  fact or omits to state any material  fact  necessary in
order to make the statements  therein,  in the light of the circumstances  under
which they were made, not misleading.

                                       10
<PAGE>

      Section 4.6. 10b-5. The SEC Documents do not include any untrue statements
of material  fact,  nor do they omit to state any material  fact  required to be
stated  therein  necessary  to  make  the  statements  made,  in  light  of  the
circumstances under which they were made, not misleading.

      Section 4.7. No Default.  Except as disclosed  in the SEC  Documents,  the
Company is not in default  in the  performance  or  observance  of any  material
obligation,  agreement,  covenant  or  condition  contained  in  any  indenture,
mortgage, deed of trust or other material instrument or agreement to which it is
a party or by which it is or its  property is bound and  neither the  execution,
nor the  delivery  by the  Company,  nor the  performance  by the Company of its
obligations  under this Agreement or any of the exhibits or  attachments  hereto
will  conflict  with or result in the breach or violation of any of the terms or
provisions  of, or  constitute a default or result in the creation or imposition
of any lien or  charge on any  assets or  properties  of the  Company  under its
Articles of Incorporation,  By-Laws, any material indenture,  mortgage,  deed of
trust or other  material  agreement  applicable  to the Company or instrument to
which the Company is a party or by which it is bound, or any applicable statute,
or any decree, judgment, order, rules or regulation of any court or governmental
agency or body with respect to the Company or its properties, in each case which
default,  lien or charge is likely  to cause a  Material  Adverse  Effect on the
Company's business or financial condition.

      Section 4.8. Absence of Events of Default. Except for matters described in
the SEC Documents and/or this Agreement,  no Event of Default, as defined in the
respective  agreement to which the Company is a party, and no event which,  with
the giving of notice or the  passage of time or both,  would  become an Event of
Default (as so  defined),  has occurred  and is  continuing,  which would have a
Material  Adverse  Effect  on the  Company's  business,  properties,  prospects,
financial condition or results of operations.

      Section  4.9.   Intellectual   Property   Rights.   The  Company  and  its
subsidiaries  own or possess  adequate  rights or licenses to use the trademark,
HealthRenu' and all trade names, copyrights,  inventions,  licenses,  approvals,
governmental authorizations, trade secrets and rights necessary to conduct their
respective businesses as now conducted.  The Company and its subsidiaries do not
have any knowledge of any  infringement  by the Company or its  subsidiaries  of
trademark,  trade name rights, patents, patent rights,  copyrights,  inventions,
licenses, service names, service marks, service mark registrations, trade secret
or other similar rights of others,  and, to the knowledge of the Company,  there
is no claim,  action or  proceeding  being  made or brought  against,  or to the
Company's  knowledge,  being threatened against, the Company or its subsidiaries
regarding trademark,  trade name, patents, patent rights, invention,  copyright,
license, service names, service marks, service mark registrations,  trade secret
or other  infringement;  and the Company and its subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing.

      Section  4.10.  Employee  Relations.  Neither  the  Company nor any of its
subsidiaries  is involved in any labor  dispute  nor,  to the  knowledge  of the
Company or any of its subsidiaries,  is any such dispute threatened. None of the
Company's or its subsidiaries'  employees is a member of a union and the Company
and its subsidiaries believe that their relations with their employees are good.

                                       11
<PAGE>

      Section 4.11. Environmental Laws. The Company and its subsidiaries are (i)
in compliance with any and all applicable material foreign,  federal,  state and
local  laws and  regulations  relating  to the  protection  of human  health and
safety,  the environment or hazardous or toxic substances or wastes,  pollutants
or contaminants ("Environmental Laws"), (ii) have received all permits, licenses
or other  approvals  required  of them under  applicable  Environmental  Laws to
conduct their  respective  businesses and (iii) are in compliance with all terms
and conditions of any such permit, license or approval.

      Section 4.12. Title. Except as set forth in the SEC Documents, the Company
has good and marketable title to its properties and material assets owned by it,
free and clear of any pledge,  lien,  security interest,  encumbrance,  claim or
equitable  interest  other than such as are not  material to the business of the
Company.  Any real property and  facilities  held under lease by the Company and
its subsidiaries are held by them under valid, subsisting and enforceable leases
with such  exceptions as are not material and do not interfere with the use made
and proposed to be made of such  property  and  buildings by the Company and its
subsidiaries.

      Section  4.13.  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 been
refused any insurance coverage sought or applied for and 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 materially and adversely affect the condition,
financial or otherwise,  or the earnings,  business or operations of the Company
and its subsidiaries, taken as a whole.

      Section 4.14. Regulatory Permits. The Company and its subsidiaries possess
all material certificates,  authorizations and permits issued by the appropriate
federal,  state or foreign  regulatory  authorities  necessary to conduct  their
respective  businesses,  and neither the  Company  nor any such  subsidiary  has
received any notice of proceedings relating to the revocation or modification of
any such certificate, authorization or permit.

      Section 4.15.  Internal Accounting  Controls.  The Company and each of its
subsidiaries  maintain a system of internal  accounting  controls  sufficient to
provide  reasonable  assurance that (i)  transactions are executed in accordance
with  management's  general or specific  authorizations,  (ii)  transactions are
recorded  as  necessary  to  permit  preparation  of  financial   statements  in
conformity with generally accepted  accounting  principles and to maintain asset
accountability,  (iii) access to assets is  permitted  only in  accordance  with
management's   general  or  specific   authorization   and  (iv)  the   recorded
accountability  for assets is compared  with the existing  assets at  reasonable
intervals and appropriate action is taken with respect to any differences.

      Section 4.16. No Material  Adverse  Breaches,  etc. Except as set forth in
the SEC Documents, neither the Company nor any of its subsidiaries is subject to
any charter,  corporate or other legal  restriction,  or any  judgment,  decree,
order, rule or regulation which in the judgment of the Company's officers has or
is expected  in the future to have a Material  Adverse  Effect on the  business,
properties,  operations, financial condition, results of operations or prospects
of the Company or its  subsidiaries.  Except as set forth in the SEC  Documents,
neither the Company nor any of its  subsidiaries is in breach of any contract or
agreement  which breach,  in the judgment of the Company's  officers,  has or is
expected  to  have  a  Material  Adverse  Effect  on the  business,  properties,
operations,  financial  condition,  results of  operations  or  prospects of the
Company or its subsidiaries.

                                       12
<PAGE>

      Section  4.17.  Absence  of  Litigation.  Except  as set  forth in the SEC
Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency,  self-regulatory  organization
or body pending against or affecting the Company, the Common Stock or any of the
Company's subsidiaries, wherein an unfavorable decision, ruling or finding would
(i) have a Material Adverse Effect on the transactions  contemplated hereby (ii)
adversely affect the validity or enforceability  of, or the authority or ability
of the Company to perform its  obligations  under,  this Agreement or any of the
documents contemplated herein, or (iii) except as expressly disclosed in the SEC
Documents,  have  a  Material  Adverse  Effect  on  the  business,   operations,
properties,  financial  condition or results of operation of the Company and its
subsidiaries taken as a whole.

      Section 4.18. Subsidiaries.  Except as disclosed in the SEC Documents, the
Company does not presently own or control, directly or indirectly,  any interest
in any other corporation, partnership, association or other business entity.

      Section 4.19. Tax Status.  Except as disclosed in the SEC Documents or the
Disclosure Schedules, the Company and each of its subsidiaries has made or filed
all federal and state income and all other tax returns, reports and declarations
required by any  jurisdiction to which it is subject and (unless and only to the
extent that the Company and each of its  subsidiaries has set aside on its books
provisions  reasonably  adequate  for the  payment of all unpaid and  unreported
taxes) has paid all taxes and other  governmental  assessments  and charges that
are material in amount,  shown or determined to be due on such returns,  reports
and  declarations,  except those being contested in good faith and has set aside
on its books  provision  reasonably  adequate  for the  payment of all taxes for
periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company know of no
basis for any such claim.

      Section  4.20.  Certain  Transactions.  Except  as set  forth  in the  SEC
Documents  or the  Disclosure  Schedules  none of the  officers,  directors,  or
employees  of the  Company  is  presently  a party to any  transaction  with the
Company  (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 corporation,
partnership,  trust or other entity in which any officer,  director, or any such
employee  has a  substantial  interest  or is an officer,  director,  trustee or
partner.

      Section  4.21.  Fees and  Rights  of First  Refusal.  The  Company  is not
obligated to offer the securities  offered hereunder on a right of first refusal
basis or otherwise to any third parties  including,  but not limited to, current
or former shareholders of the Company,  underwriters,  brokers,  agents or other
third parties.

                                       13
<PAGE>

      Section 4.22. Use of Proceeds. The Company shall use the net proceeds from
this offering for general corporate purposes, including, without limitation, the
payment of loans incurred by the Company and for working capital. However, in no
event shall the Company use the net proceeds  from this offering for the payment
(or  loan to any  such  person  for  the  payment)  of any  judgment,  or  other
liability,  incurred by any executive officer,  officer, director or employee of
the Company, except for any liability owed to such person for services rendered,
or if any  judgment or other  liability  is incurred by such person  originating
from  services  rendered to the  Company,  or the Company has  indemnified  such
person from liability.

      Section 4.23. Further Representation and Warranties of the Company. For so
long  as  any  securities   issuable  hereunder  held  by  the  Investor  remain
outstanding, the Company acknowledges,  represents,  warrants and agrees that it
will maintain the listing of its Common Stock on the Principal Market.

      Section 4.24. Opinion of Counsel. Investor shall receive an opinion letter
from counsel to the Company on the date hereof.

      Section  4.25.  Opinion  of  Counsel.  The  Company  will  obtain  for the
Investor, at the Company's expense, any and all opinions of counsel which may be
reasonably  required in order to sell the securities  issuable hereunder without
restriction.

      Section  4.26.  Dilution.  The  Company  is aware  and  acknowledges  that
issuance  of shares of the  Company's  Common  Stock  could  cause  dilution  to
existing shareholders and could significantly increase the outstanding number of
shares of Common Stock.

                                   ARTICLE V.
                                 Indemnification

      The Investor and the Company  represent  to the other the  following  with
respect to itself:

      Section 5.1. Indemnification.

            (a) In  consideration  of the  Investor's  execution and delivery of
this Agreement,  and in addition to all of the Company's other obligations under
this Agreement,  the Company shall defend, protect,  indemnify and hold harmless
the Investor, and all of its officers, directors, partners, employees and agents
(including,   without   limitation,   those  retained  in  connection  with  the
transactions  contemplated  by  this  Agreement)  (collectively,  the  "Investor
Indemnitees")  from and against any and all  actions,  causes of action,  suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith  (irrespective of whether any such Investor Indemnitee is a
party  to the  action  for  which  indemnification  hereunder  is  sought),  and
including  reasonable   attorneys'  fees  and  disbursements  (the  "Indemnified
Liabilities"),  incurred by the Investor  Indemnitees or any of them as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any
representation  or  warranty  made  by the  Company  in  this  Agreement  or the
Registration  Rights Agreement or any other certificate,  instrument or document
contemplated  hereby or thereby,  (b) any breach of any  covenant,  agreement or
obligation of the Company contained in this Agreement or the Registration Rights
Agreement or any other certificate,  instrument or document  contemplated hereby
or thereby,  or (c) any cause of action,  suit or claim  brought or made against
such  Investor  Indemnitee  not  arising  out of any  action or  inaction  of an
Investor  Indemnitee,  and  arising  out of or  resulting  from  the  execution,
delivery,  performance or enforcement of this Agreement or any other instrument,
document  or  agreement   executed  pursuant  hereto  by  any  of  the  Investor
Indemnitees.  To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and  satisfaction of each of the Indemnified  Liabilities,  which is
permissible under applicable law.

                                       14
<PAGE>

            (b) In consideration of the Company's execution and delivery of this
Agreement, and in addition to all of the Investor's other obligations under this
Agreement,  the Investor shall defend, protect,  indemnify and hold harmless the
Company and all of its officers, directors,  shareholders,  employees and agents
(including,   without   limitation,   those  retained  in  connection  with  the
transactions  contemplated  by  this  Agreement)  (collectively,   the  "Company
Indemnitees") from and against any and all Indemnified  Liabilities  incurred by
the  Company  Indemnitees  or any of them as a result of, or arising  out of, or
relating  to (a)  any  misrepresentation  or  breach  of any  representation  or
warranty  made  by the  Investor  in this  Agreement,  the  Registration  Rights
Agreement, or any instrument or document contemplated hereby or thereby executed
by the Investor, (b) any breach of any covenant,  agreement or obligation of the
Investor(s)  contained in this Agreement,  the Registration  Rights Agreement or
any other  certificate,  instrument or document  contemplated  hereby or thereby
executed by the Investor,  or (c) any cause of action,  suit or claim brought or
made against such Company  Indemnitee  based on  misrepresentations  or due to a
breach by the  Investor  and arising  out of or  resulting  from the  execution,
delivery,  performance or enforcement of this Agreement or any other instrument,
document  or  agreement   executed   pursuant  hereto  by  any  of  the  Company
Indemnitees. To the extent that the foregoing undertaking by the Investor may be
unenforceable for any reason,  the Investor shall make the maximum  contribution
to the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law.

            (c) The obligations of the parties to indemnify or make contribution
under this Section 5.1 shall survive termination.

                                   ARTICLE VI.
                            Covenants of the Company

      Section 6.1. Registration Rights. The Company shall cause the Registration
Rights Agreement to remain in full force and effect and the Company shall comply
in all material respects with the terms thereof.

      Section  6.2.  Listing of Common  Stock.  The Company  shall  maintain the
Common  Stock's  authorization  for  quotation  on the National  Association  of
Securities Dealers Inc.'s Over the Counter Bulletin Board.

      Section 6.3. Exchange Act Registration.  The Company will cause its Common
Stock to continue to be registered under Section 12(g) of the Exchange Act, will
file in a timely  manner all  reports  and other  documents  required of it as a
reporting  company  under the  Exchange Act and will not take any action or file
any document  (whether or not permitted by Exchange Act or the rules thereunder)
to  terminate  or suspend  such  registration  or to  terminate  or suspend  its
reporting and filing obligations under said Exchange Act.

                                       15
<PAGE>

      Section  6.4.  Transfer  Agent  Instructions.  Upon  effectiveness  of the
Registration  Statement the Company shall deliver  instructions  to its transfer
agent to issue  shares  of  Common  Stock to the  Investor  free of  restrictive
legends on or before each Advance Date.

      Section  6.5.  Corporate  Existence.  The  Company  will  take  all  steps
necessary to preserve and continue the corporate existence of the Company.

      Section 6.6. Notice of Certain Events Affecting  Registration;  Suspension
of Right to Make an Advance.  The Company will  immediately  notify the Investor
upon its becoming  aware of the  occurrence  of any of the  following  events in
respect  of a  registration  statement  or  related  prospectus  relating  to an
offering of  Registrable  Securities:  (i) receipt of any request for additional
information  by the SEC or any other  Federal  or state  governmental  authority
during the period of effectiveness of the Registration  Statement for amendments
or supplements to the  registration  statement or related  prospectus;  (ii) the
issuance by the SEC or any other Federal or state governmental  authority of any
stop order suspending the  effectiveness  of the  Registration  Statement or the
initiation  of  any  proceedings   for  that  purpose;   (iii)  receipt  of  any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction  or the  initiation  or  threatening  of any  proceeding  for  such
purpose;  (iv) the happening of any event that makes any  statement  made in the
Registration  Statement or related  prospectus of any document  incorporated  or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration  Statement,  related
prospectus or documents so that, in the case of the Registration  Statement,  it
will not contain any untrue  statement  of a material  fact or omit to state any
material fact required to be stated  therein or necessary to make the statements
therein not misleading,  and that in the case of the related prospectus, it will
not  contain  any  untrue  statement  of a  material  fact or omit to state  any
material fact required to be stated  therein or necessary to make the statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the  Registration  Statement would be appropriate;  and the Company
will promptly make available to the Investor any such supplement or amendment to
the related  prospectus.  The  Company  shall not  deliver to the  Investor  any
Advance Notice during the continuation of any of the foregoing events.

      Section 6.7. Restriction on Sale of Capital Stock.

            (a) During  the  Commitment  Period,  except as set forth in Section
6.7(b) of this  Agreement,  the Company  shall not,  without  the prior  written
consent of the Investor not to be unreasonably  withheld,  (i) issue or sell any
Common Stock or Preferred Stock without consideration or for a consideration per
share less than the  average  Bid Price of the  Common  Stock for the 10 trading
days prior to its  issuance,  (ii) issue or sell any Preferred  Stock,  warrant,
option,  right,  contract,  call, or other  security or instrument  granting the
holder thereof the right to acquire Common Stock without  consideration or for a
consideration  per share less than such Common Stock's average Bid Price for the
10 trading days prior to its issuance, or (iii) file any registration  statement
on Form S-8 except to register  securities to be issued under a stock  incentive
plan of the Company up to a maximum of 10% of the outstanding  shares of Company
Common Stock for each 12 month period commencing on the date of this Agreement.

                                       16
<PAGE>

            (b)  Notwithstanding  Section  6.7(a),  the Company may (i) issue or
sell  securities  in  connection  with a strategic  alliance,  joint  venture or
similar  transaction  and (ii) sell up to $800,000 per month of securities for a
consideration  of not less than a 20%  discount to the average Bid Price for the
10  trading  days prior to the date of  issuance  in the event the  Company  has
requested an advance  pursuant to the terms of this  Agreement  and the Investor
has  failed to provide  the  Company  with the  amount  for such  advance by the
Advance Date.

      Section 6.8.  Consolidation;  Merger.  The Company  shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into,  or a transfer  of all or  substantially  all the assets of the Company to
another  entity (a  "Consolidation  Event")  unless the  resulting  successor or
acquiring  entity  (if  not the  Company)  assumes  by  written  instrument  the
obligation to deliver to the Investor such shares of stock and/or  securities as
the Investor is entitled to receive pursuant to this Agreement.

      Section  6.9.  Issuance of the  Company's  Common  Stock.  The sale of the
shares of Common  Stock  shall be made in  accordance  with the  provisions  and
requirements of Regulation D and any applicable state securities law.

                                  ARTICLE VII.
                Conditions for Advance and Conditions to Closing

      Section 7.1. Conditions  Precedent to the Obligations of the Company.  The
obligation hereunder of the Company to issue and sell the shares of Common Stock
to the  Investor  incident to each  Closing is subject to the  satisfaction,  or
waiver by the Company, at or before each such Closing, of each of the conditions
set forth below.

            (a) Accuracy of the Investor's  Representations and Warranties.  The
representations  and warranties of the Investor shall be true and correct in all
material respects.

            (b) Performance by the Investor.  The Investor shall have performed,
satisfied  and  complied in all  respects  with all  covenants,  agreements  and
conditions  required by this Agreement and the Registration  Rights Agreement to
be  performed,  satisfied  or complied  with by the Investor at or prior to such
Closing.

      Section 7.2.  Conditions  Precedent to the Right of the Company to Deliver
an Advance  Notice and the  Obligation  of the  Investor to  Purchase  Shares of
Common  Stock.  The right of the  Company to  deliver an Advance  Notice and the
obligation  of the  Investor  hereunder  to  acquire  and pay for  shares of the
Company's  Common Stock  incident to a Closing is subject to the  fulfillment by
the  Company,  on (i) the date of delivery of such  Advance  Notice and (ii) the
applicable Advance Date (each a "Condition  Satisfaction  Date"), of each of the
following conditions:

            (a) Registration of the Common Stock with the SEC. The Company shall
have filed with the SEC a  Registration  Statement with respect to the resale of
the  Registrable  Securities  in accordance  with the terms of the  Registration
Rights  Agreement.  As set  forth  in the  Registration  Rights  Agreement,  the
Registration  Statement shall have previously  become effective and shall remain
effective on each  Condition  Satisfaction  Date and (i) neither the Company nor
the Investor  shall have  received  notice that the SEC has issued or intends to
issue a stop order with  respect to the  Registration  Statement or that the SEC
otherwise  has  suspended or withdrawn  the  effectiveness  of the  Registration
Statement, either temporarily or permanently, or intends or has threatened to do
so (unless the SEC's concerns have been addressed and the Investor is reasonably
satisfied that the SEC no longer is considering or intends to take such action),
and (ii) no other  suspension of the use or withdrawal of the  effectiveness  of
the Registration  Statement or related  prospectus shall exist. The Registration
Statement  must  have  been  declared  effective  by the SEC  prior to the first
Advance Notice Date.

                                       17
<PAGE>

            (b)  Authority.  The  Company  shall have  obtained  all permits and
qualifications   required  by  any  applicable  state  in  accordance  with  the
Registration  Rights  Agreement  for the offer and sale of the  shares of Common
Stock,  or shall have the  availability  of exemptions  therefrom.  The sale and
issuance of the shares of Common  Stock shall be legally  permitted  by all laws
and regulations to which the Company is subject.

            (c)  Fundamental  Changes.  There  shall not  exist any  fundamental
changes to the information set forth in the  Registration  Statement which would
require  the  Company to file a  post-effective  amendment  to the  Registration
Statement.

            (d)  Performance by the Company.  The Company shall have  performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement  (including,  without limitation,  the
conditions  specified  in  Section  2.5  hereof)  and  the  Registration  Rights
Agreement to be performed, satisfied or complied with by the Company at or prior
to each Condition Satisfaction Date.

            (e) No Injunction.  No statute, rule,  regulation,  executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by any court or governmental  authority of competent  jurisdiction that
prohibits or directly and adversely affects any of the transactions contemplated
by this Agreement, and no proceeding shall have been commenced that may have the
effect  of   prohibiting  or  adversely   affecting  any  of  the   transactions
contemplated by this Agreement.

            (f) No Suspension  of Trading in or Delisting of Common  Stock.  The
trading of the Common Stock is not suspended by the SEC or the Principal  Market
(if the Common Stock is traded on a Principal Market). The issuance of shares of
Common Stock with respect to the applicable  Closing,  if any, shall not violate
the shareholder  approval  requirements  of the Principal  Market (if the Common
Stock is traded on a Principal Market).  The Company shall not have received any
notice  threatening  the continued  listing of the Common Stock on the Principal
Market (if the Common Stock is traded on a Principal Market).

            (g) Maximum  Advance Amount.  The amount of an Advance  requested by
the Company  shall not exceed the Maximum  Advance  Amount.  In addition,  in no
event shall the number of shares issuable to the Investor pursuant to an Advance
cause the aggregate number of shares of Common Stock  beneficially  owned by the
Investor and its  affiliates to exceed nine and 9/10 percent  (9.9%) of the then
outstanding  Common  Stock of the  Company.  For the  purposes  of this  section
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act.

                                       18
<PAGE>

            (h) No  Knowledge.  The Company has no  knowledge of any event which
would be more  likely than not to have the effect of causing  such  Registration
Statement to be suspended or otherwise ineffective.

            (i) Executed  Advance  Notice.  The Investor shall have received the
Advance  Notice  executed by an officer of the  Company and the  representations
contained in such Advance  Notice shall be true and correct as of each Condition
Satisfaction Date.

                                  ARTICLE VIII.
         Due Diligence Review; Non-Disclosure of Non-Public Information

      Section 8.1. Due Diligence Review. Prior to the filing of the Registration
Statement the Company  shall make  available  for  inspection  and review by the
Investor, its advisors and representatives, and any underwriter participating in
any disposition of the Registrable Securities on behalf of the Investor pursuant
to the Registration  Statement,  any such registration statement or amendment or
supplement  thereto or any blue sky,  NASD or other  filing,  all  financial and
other  records,  all SEC Documents and other filings with the SEC, and all other
corporate documents and properties of the Company as may be reasonably necessary
for the purpose of such review, and cause the Company's officers,  directors and
employees to supply all such information reasonably requested by the Investor or
any  such  representative,  advisor  or  underwriter  in  connection  with  such
Registration  Statement  (including,  without  limitation,  in  response  to all
questions  and other  inquiries  reasonably  made or  submitted by any of them),
prior to and  from  time to time  after  the  filing  and  effectiveness  of the
Registration  Statement  for the sole  purpose of enabling the Investor and such
representatives,  advisors and underwriters and their respective accountants and
attorneys  to conduct  initial  and ongoing due  diligence  with  respect to the
Company and the accuracy of the Registration Statement.

      Section 8.2. Non-Disclosure of Non-Public Information.

            (a) The Company  shall not disclose  non-public  information  to the
Investor,  its advisors,  or its representatives,  unless prior to disclosure of
such  information the Company  identifies such  information as being  non-public
information and provides the Investor,  such advisors and  representatives  with
the  opportunity to accept or refuse to accept such  non-public  information for
review. The Company may, as a condition to disclosing any non-public information
hereunder,  require the Investor's  advisors and representatives to enter into a
confidentiality agreement in form reasonably satisfactory to the Company and the
Investor.

            (b) Nothing herein shall require the Company to disclose  non-public
information to the Investor or its advisors or representatives,  and the Company
represents that it does not disseminate  non-public information to any investors
who purchase stock in the Company in a public offering,  to money managers or to
securities analysts,  provided, however, that notwithstanding anything herein to
the contrary, the Company will, as hereinabove provided,  immediately notify the
advisors and representatives of the Investor and, if any,  underwriters,  of any
event or the existence of any  circumstance  (without any obligation to disclose
the specific  event or  circumstance)  of which it becomes  aware,  constituting
non-public  information (whether or not requested of the Company specifically or
generally  during  the course of due  diligence  by such  persons or  entities),
which, if not disclosed in the prospectus included in the Registration Statement
would  cause such  prospectus  to include a material  misstatement  or to omit a
material  fact  required to be stated  therein in order to make the  statements,
therein,  in light of the circumstances in which they were made, not misleading.
Nothing  contained  in this  Section  8.2 shall be  construed  to mean that such
persons or entities other than the Investor  (without the written consent of the
Investor  prior to disclosure  of such  information)  may not obtain  non-public
information  in the course of conducting  due  diligence in accordance  with the
terms of this  Agreement  and nothing  herein shall  prevent any such persons or
entities  from  notifying  the Company of their  opinion  that based on such due
diligence by such persons or entities,  that the Registration Statement contains
an untrue  statement of material  fact or omits a material  fact  required to be
stated  in the  Registration  Statement  or  necessary  to make  the  statements
contained  therein,  in light of the  circumstances in which they were made, not
misleading.

                                       19
<PAGE>

                                   ARTICLE IX.
                           Choice of Law/Jurisdiction

      Section  9.1.  Governing  Law.  This  Agreement  shall be  governed by and
interpreted  in  accordance  with the laws of the  State of New  Jersey  without
regard to the principles of conflict of laws. The parties further agree that any
action between them shall be heard in Hudson County,  New Jersey,  and expressly
consent  to the  jurisdiction  and venue of the  Superior  Court of New  Jersey,
sitting in Hudson County, New Jersey and the United States District Court of New
Jersey,  sitting in Newark, New Jersey, for the adjudication of any civil action
asserted pursuant to this paragraph.

                                   ARTICLE X.
                             Assignment; Termination

      Section  10.1.  Assignment.  Neither this  Agreement nor any rights of the
Company hereunder may be assigned to any other Person.

      Section  10.2.  Termination.  The  obligations  of the  Investor  to  make
Advances under Article II hereof shall terminate  twenty-four  (24) months after
the Effective Date.

                                   ARTICLE XI.
                                     Notices

      Section  11.1.  Notices.   Any  notices,   consents,   waivers,  or  other
communications  required  or  permitted  to be  given  under  the  terms of this
Agreement  must be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered  personally;  (ii) upon receipt, when sent by facsimile,
provided a copy is mailed by U.S.  certified  mail,  return  receipt  requested;
(iii) three (3) days after being sent by U.S.  certified  mail,  return  receipt
requested,  or (iv)  one (1) day  after  deposit  with a  nationally  recognized
overnight  delivery  service,  in each case  properly  addressed to the party to
receive the same.  The addresses and facsimile  numbers for such  communications
shall be:

                                       20
<PAGE>

If to the Company, to:              HealthRenu Medical, Inc.
                                    12777 Jones Road - Suite 481
                                    Houston, Texas 77070
                                    Attention: Robert W. Prokos
                                    Telephone: (281) 890-2561
                                    Facsimile: (281) 890-2587

With a copy to:                     Gallagher, Briody & Butler
                                    155 Village Boulevard - Suite 201
                                    Princeton, NJ 08540
                                    Attention: Thomas P. Gallagher, Esq.
                                    Telephone: (609) 452-6000
                                    Facsimile: (609) 452-0090

If to the Investor(s):              Cornell Capital Partners, LP
                                    101 Hudson Street -Suite 3700
                                    Jersey City, NJ 07302
                                    Attention: Mark Angelo
                                               Portfolio Manager
                                    Telephone: (201) 985-8300
                                    Facsimile: (201) 985-8266

With a Copy to:                     Troy Rillo, Esq.
                                    101 Hudson Street - Suite 3700
                                    Jersey City, NJ 07302
                                    Telephone: (201) 985-8300
                                    Facsimile: (201) 985-8266

Each party shall provide five (5) days' prior written  notice to the other party
of any change in address or facsimile number.

                                  ARTICLE XII.
                                  Miscellaneous

      Section 12.1. Counterparts.  This Agreement may be executed in two or more
identical  counterparts,  all of  which  shall  be  considered  one and the same
agreement and shall become effective when  counterparts have been signed by each
party and  delivered  to the other  party.  In the event any  signature  page is
delivered  by  facsimile  transmission,  the party  using such means of delivery
shall  cause  four  (4)  additional  original  executed  signature  pages  to be
physically  delivered to the other party  within five (5) days of the  execution
and delivery hereof,  though failure to deliver such copies shall not affect the
validity of this Agreement.

      Section 12.2. Entire Agreement;  Amendments. This Agreement supersedes all
other prior oral or written agreements between the Investor,  the Company, their
affiliates  and  persons  acting on their  behalf  with  respect to the  matters
discussed  herein,  and this  Agreement and the  instruments  referenced  herein
contain  the entire  understanding  of the parties  with  respect to the matters
covered  herein and therein  and,  except as  specifically  set forth  herein or
therein,  neither  the  Company  nor  the  Investor  makes  any  representation,
warranty,  covenant or undertaking with respect to such matters. No provision of
this  Agreement  may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

                                       21
<PAGE>

      Section 12.3.  Reporting Entity for the Common Stock. The reporting entity
relied upon for the  determination of the trading price or trading volume of the
Common Stock on any given Trading Day for the purposes of this  Agreement  shall
be Bloomberg,  L.P. or any successor thereto.  The written mutual consent of the
Investor and the Company shall be required to employ any other reporting entity.

      Section  12.4.  Fees and  Expenses.  The Company  hereby agrees to pay the
following fees:

            (a) Structuring Fees. Each of the parties shall pay its own fees and
expenses (including the fees of any attorneys, accountants, appraisers or others
engaged by such party) in connection  with this  Agreement and the  transactions
contemplated  hereby,  except that the  Company  will pay a  structuring  fee of
Fifteen Thousand Dollars  ($15,000) to Yorkville  Advisors  Management,  LLC, of
which Ten Thousand Dollars ($10,000) was previously paid on May 23, 2005 and the
remaining  balance of Five Thousand  Dollars  ($5,000) shall be paid immediately
following the declaration of effectiveness  of the registration  statement filed
pursuant  to  the   Registration   Rights   Agreement  of  even  date  herewith.
Subsequently  on each  advance  date,  the Company will pay  Yorkville  Advisors
Management,  LLC a structuring  fee of Five Hundred  Dollars ($500) directly out
the gross proceeds of each Advance.

            (b)  Due   Diligence   Fee.   Company   shall  pay  the  Investor  a
non-refundable  due diligence fee of Two Thousand Five Hundred Dollars  ($2,500)
upon submission of the due diligence documents to the Investor.

            (c) Commitment Fees.

                  (i)  On  each  Advance  Date  the  Company  shall  pay  to the
Investor,  directly from the gross proceeds of each Advance,  an amount equal to
five percent (5%) of the amount of each Advance.  The Company hereby agrees that
if such  payment,  as is  described  above,  is not made by the  Company  on the
Advance  Date,  such  payment  will be made at the  direction of the Investor as
outlined and mandated by Section 2.3 of this Agreement.

                  (ii) The Company shall pay to the Investor a commitment fee in
the amount of Three Hundred Fifty Thousand  Dollars  ($350,000),  which shall be
deemed fully earned on the date hereof and which shall be paid as follows:  Upon
the  execution  of this  Agreement  the  Company  shall  issue  to the  Investor
1,465,065  restricted  shares of the  Company's  Common  Stock (the  "Investor's
Shares") and a Promissory  Note (the "Note") in the amount of One Hundred Eighty
Eight Thousand Eight Hundred Forty Three Dollars ($188,843).

                  (iii) Fully  Earned.  The  Investor's  Shares  shall be deemed
fully earned as of the date hereof.

                                       22
<PAGE>

                  (iv)  Registration  Rights.  The  Investor's  Shares will have
"piggy-back" registration rights.

      Section 12.5. Brokerage. Each of the parties hereto represents that it has
had no dealings in connection  with this  transaction  with any finder or broker
who will  demand  payment of any fee or  commission  from the other  party.  The
Company on the one hand, and the Investor, on the other hand, agree to indemnify
the other against and hold the other  harmless from any and all  liabilities  to
any  person  claiming  brokerage  commissions  or  finder's  fees on  account of
services  purported to have been rendered on behalf of the indemnifying party in
connection with this Agreement or the transactions contemplated hereby.

      Section  12.6.  Confidentiality.   If  for  any  reason  the  transactions
contemplated by this Agreement are not  consummated,  each of the parties hereto
shall keep  confidential  any information  obtained from any other party (except
information  publicly  available  or in such  party's  domain  prior to the date
hereof,  and except as required by court order) and shall promptly return to the
other  parties  all  schedules,  documents,  instruments,  work  papers or other
written information without retaining copies thereof, previously furnished by it
as a result of this Agreement or in connection herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       23
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Standby  Equity
Distribution  Agreement  to be  executed  by  the  undersigned,  thereunto  duly
authorized, as of the date first set forth above.

                                    COMPANY:
                                    HEALTHRENU MEDICAL, INC.

                                    By: /s/ Robert W. Prokos
                                       -----------------------------------------
                                    Name:  Robert W. Prokos
                                    Title: President and Chief Executive Officer

                                    INVESTOR:
                                    CORNELL CAPITAL PARTNERS, LP

                                    By:  Yorkville Advisors, LLC
                                    Its: General Partner

                                    By: /s/ Mark Angelo
                                       -----------------------------------------
                                    Name:  Mark Angelo
                                    Title: Portfolio Manager

                                       24
<PAGE>

                                    EXHIBIT A

                                 ADVANCE NOTICE

                            HEALTHRENU MEDICAL, INC.

      The undersigned,  Robert W. Prokos hereby  certifies,  with respect to the
sale of shares of Common Stock of  HEALTHRENU  MEDICAL,  INC.  (the  "Company"),
issuable in connection with this Advance Notice and Compliance Certificate dated
___________________  (the  "Notice"),  delivered  pursuant to the Standby Equity
Distribution Agreement (the "Agreement"), as follows:

      1. The  undersigned  is the duly  elected  President  and Chief  Executive
Officer of the Company.

      2. There are no fundamental  changes to the  information  set forth in the
Registration  Statement which would require the Company to file a post effective
amendment to the Registration Statement.

      3. The Company has  performed in all material  respects all  covenants and
agreements  to be  performed  by the  Company and has  complied in all  material
respects with all  obligations  and conditions  contained in the Agreement on or
prior to the Advance  Notice Date, and shall continue to perform in all material
respects all covenants and agreements to be performed by the Company through the
applicable Advance Date.

      4. The undersigned hereby  represents,  warrants and covenants that it has
made  all  filings  ("SEC  Filings")  required  to be  made  by it  pursuant  to
applicable securities laws (including,  without limitation, all filings required
under the Securities  Exchange Act of 1934, which include Forms 10-QSB,  10-KSB,
8-K,  etc.  All SEC Filings and other  public  disclosures  made by the Company,
including,  without limitation, all press releases, analysts meetings and calls,
etc. (collectively,  the "Public Disclosures"),  have been reviewed and approved
for release by the Company's attorneys and, if containing financial information,
the Company's  independent  certified public accountants.  None of the Company's
Public  Disclosures  contain any untrue  statement of a material fact or omit to
state any material fact  required to be stated  therein or necessary to make the
statements  therein,  in the light of the  circumstances  under  which they were
made, not misleading.

      5. The Advance requested is _____________________.

      The undersigned has executed this Certificate this ___ day of ___________.

                                    HEALTHRENU MEDICAL, INC.

                                    By:
                                       -----------------------------------------
                                    Name:  Robert W. Prokos
                                    Title: President and Chief Executive Officer
<PAGE>

                                  SCHEDULE 2.6

                            HEALTHRENU MEDICAL, INC.

      The  undersigned  hereby  agrees that for a period  commencing on the date
hereof and  expiring on the  termination  of the Amended  and  Restated  Standby
Equity  Distribution  Agreement  dated  February  ___,  2006 between  HealthRenu
Medical,  Inc. (the "Company") and Cornell Capital Partners, LP (the "Investor")
(the "Lock-up Period"), he, she or it will not, directly or indirectly,  without
the prior written consent of the Investor, issue, offer, agree or offer to sell,
sell,  grant an option for the purchase or sale of,  transfer,  pledge,  assign,
hypothecate,  distribute or otherwise  encumber or dispose of except pursuant to
Rule 144 of the General Rules and Regulations  under the Securities Act of 1933,
as amended,  any securities of the Company,  including  common stock or options,
rights, warrants or other securities underlying,  convertible into, exchangeable
or  exercisable  for or  evidencing  any right to purchase or subscribe  for any
common stock  (whether or not  beneficially  owned by the  undersigned),  or any
beneficial interest therein (collectively, the "Securities").

      In order to enable the aforesaid covenants to be enforced, the undersigned
hereby consents to the placing of legends and/or  stop-transfer  orders with the
transfer agent of the Company's securities with respect to any of the Securities
registered  in  the  name  of  the  undersigned  or  beneficially  owned  by the
undersigned, and the undersigned hereby confirms the undersigned's investment in
the Company.

Dated: February __, 2006

                                    Signature

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

                                    Name: ______________________________________

                                    Address:____________________________________

                                    City, State, Zip Code:______________________

                                    ____________________________________________
                                    Print Social Security Number
                                    or Taxpayer I.D. Number

                                       26

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