Document:

SECURED
      DEMAND CONVERTIBLE PROMISSORY NOTE

     

    

    $250,000Executed
      at: Fort Lauderdale, Florida

    Dated:
      September 6, 2007

    

    theglobe.com,
      inc. a Delaware corporation (the "Company"), the principal office of which
      is
      located at 110 East Broward Boulevard, Suite 1400, Fort Lauderdale, Florida
      33301, for value received, hereby promises to pay to Dancing Bear Investments,
      Inc., a Florida corporation, or its permitted assigns (the "Holder"), the sum
      of
      Two Hundred and Fifty Thousand Dollars ($250,000.00), or such lesser amount
      as
      shall then equal the outstanding principal amount hereof, together with interest
      thereon at the rate of ten percent (10%) per annum, on the terms and conditions
      set forth hereinafter. This Note is one of several Notes issued in accordance
      with, and is subject to the provisions of, that certain Note Purchase Agreement
      between the Company and the Holder, dated on or about May 29, 2007 (the "Note
      Purchase Agreement"). For purposes of this Note, the holders of the Notes
      representing at least a majority of the outstanding principal of all the Notes
      in the aggregate issued pursuant to the Note Purchase Agreement are referred
      to
      herein as the “Majority Holders”). Other defined terms used herein and not
      otherwise specifically defined herein shall have the same meanings as set forth
      in the Note Purchase Agreement. 

    

    The
      following is a statement of the rights of the Holder and the conditions to
      which
      this Note is subject, and to which the Holder, by the acceptance of this Note,
      agrees:

    

    1.  Principal
      and Interest.
      Except
      as provided herein and in Section 5 hereof, all payments under this Note shall
      be by cashier's check, wire transfer or other immediately available funds
      payable in United States currency. The principal hereof shall be due and payable
      five business days following any DEMAND for payment (the "Maturity Date"),
      which
      DEMAND may be made by the Holder at anytime. Accrued interest, at the rate
      mentioned above, shall be due and payable on the Maturity Date. 

     

    2.  Events
      of Default.
      Each of
      the following events shall be deemed an Event of Default hereunder: (i) the
      Company fails to timely pay all then outstanding principal and accrued interest
      when due; (ii) the Company files a petition or action for relief under any
      bankruptcy, insolvency or moratorium law or any other law for the relief of,
      or
      relating to, debtors, now or hereafter in effect, or makes any assignment for
      the benefit of creditors or takes any action in furtherance of any of the
      foregoing; (iii) an involuntary petition is filed against the Company (unless
      such petition is dismissed or discharged within sixty (60) days) under any
      bankruptcy statute now or hereafter in effect, or a custodian, receiver,
      trustee, assignee for the benefit of creditors (or other similar official)
      is
      appointed to take possession, custody or control of any property of the Company;
      or (iv) the Company defaults on any of its obligations or breaches any of its
      representations, warranties or covenants in the Note Purchase Agreement or
      the
      Security Agreement and such breach remains uncured to the reasonable
      satisfaction of the Majority Holders for a period of five (5) business days
      after notice thereof from the Majority Holders (whom may elect to waive any
      such
      default or breach).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Upon
      the
      occurrence of an Event of Default hereunder, all unpaid principal, accrued
      interest and other amounts owing hereunder shall: at the option of the Holder
      in
      the case of an Event of Default of the nature specified in clause (i) above;
      automatically in the case of an Event of Default pursuant to clauses (ii) or
      (iii) above; and at the option of the Majority Holders in the case of an Event
      of Default pursuant to clause (iv) above, be immediately due, payable and
      collectible by Holder pursuant to applicable law. Subject to the foregoing,
      Holder shall have all rights and may exercise any remedies available to it
      under
      law, successively or concurrently. In addition, at any time or times during
      which an Event of Default shall then exist or upon the maturity of this Note,
      the interest rate under this Note shall be equal to the lesser of: (i) eighteen
      percent (18%) per annum; or (ii) the maximum rate of interest permitted by
      applicable law, and shall be due and payable ON DEMAND. 

    

    3.  Security.
      The
      Company's obligations hereunder shall be secured by a security interest in
      and
      upon the "Collateral" (as defined in the Security Agreement) of the Company.
      The
      Company agrees to execute and deliver to the Holder and for the benefit of
      all
      Holders of the Notes, in form and substance reasonably satisfactory to Majority
      Holders, a security agreement, financing statement and such other documents
      as
      the Majority Holders may reasonably require with regards to such security
      interest. 

     

    4.  Prepayment.
      The
      Company may not prepay this Note in whole or in part at any time prior to May
      29, 2008, without the prior written consent of the Majority Holders. In
      recognition of Holder's conversion rights pursuant to Section 5 hereof, such
      consent may be withheld in the sole discretion of the Majority Holders. After
      May 29, 2008, the Company may prepay this Note at any time upon at least fifteen
      days prior written notice of the proposed date of prepayment; provided, however,
      that the Holder may elect to convert all or a portion of this Note at any time
      prior to such date of prepayment.

     

    5.  Conversion.

     

    Voluntary
      Conversion.
      The
      Holder of this Note has the right, at the Holder's option, to convert the
      outstanding principal under this Note, in accordance with the provisions of
      Section 5.2 hereof, in whole or in part, but in denominations of not less than
      Ten Thousand Dollars ($10,000) (unless the entire principal balance of this
      Note
      is being converted), into fully paid and nonassessable shares of Common Stock
      of
      the Company. Subject to Section 6 below, the number of shares of Common Stock
      into which the outstanding principal of this Note may be converted ("Conversion
      Shares") shall be determined by dividing the principal amount for which
      conversion is requested by the Conversion Price (as defined below) in effect
      at
      the time of such conversion. The initial “Conversion Price” shall be One Cent
      ($.01). Notwithstanding anything herein to the contrary, if, after taking into
      account the number of shares of the Company’s Common Stock issuable upon
      exercise or conversion of all outstanding securities of the Company (other
      than
      the Notes) that are, directly or indirectly, convertible or exercisable into
      shares of Common Stock, the Company does not have authorized a sufficient number
      of shares of Common Stock to permit conversion of this Note and each other
      Note
      in full, then this Note shall, subject to the terms hereof, be convertible
      only
      to the extent of the number of shares of Common Stock that are authorized and
      available for issuance hereunder. Any portion of the principal amount of this
      Note which is not convertible due to the application of the foregoing sentence
      shall become subject to conversion hereunder at such time as the Company’s
      shareholders authorize an amendment to the Company’s certificate of
      incorporation authorizing a number of additional shares of Common Stock
      sufficient to permit such conversion.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.1  Conversion
      Procedure.
      Before
      the Holder shall be entitled to convert this Note into shares of Common Stock,
      it shall give written notice by mail, postage prepaid, to the Company at its
      principal corporate office, of the election to convert the Note, and shall
      state
      therein the name or names in which the certificate for shares of Common Stock
      are to be issued. A closing for such conversion shall be held at the offices
      of
      the Company on the fifth business day following the date of deposit of the
      notice in the mail or such other date mutually acceptable to the Holder and
      the
      Company. At such closing the Company shall issue and deliver to the Holder
      of
      this Note a certificate or certificates (bearing such legends as are required
      under applicable state and federal securities laws in the opinion of counsel
      to
      the Company) for the number of shares of Common Stock to which the Holder shall
      be entitled as aforesaid, together with a check made payable to the Holder
      in
      the amount of any accrued interest on the principal amount converted to the
      date
      of such conversion, and the Holder shall surrender this Note. Such conversion
      shall be deemed to have been made immediately prior to the close of business
      on
      the date of mailing of Holder's written notice of exercise (the "Effective
      Date"), and the person or persons entitled to receive the shares of Common
      Stock
      issuable upon such conversion shall be treated for all purposes as the record
      holder or holders of such shares of Common Stock as of such date.

     

    5.2  Mechanics
      of Conversion.
      No
      fractional shares of Common Stock shall be issued upon conversion of this Note.
      In lieu of the Company issuing any fractional shares to the Holder upon the
      conversion of this Note, the Company shall pay to the Holder the amount of
      outstanding principal that is not so converted. If the conversion is for less
      than the entire outstanding principal balance of this Note, then the Company
      shall issue a replacement Note to the Holder representing the unconverted
      principal balance. 

     

    6.  Conversion
      Price Adjustments.

     

    6.1  Adjustments
      for Subdivision, Dividends, Combinations or Consolidations of Common
      Stock.
      If the
      Company shall at any time or from time to time after the date that this Note
      is
      issued (the “Original Issue Date”) effect a combination or consolidation of the
      outstanding Common Stock, by reclassification or otherwise, into a lesser number
      of shares of Common Stock, the Conversion Price in effect immediately prior
      to
      such combination or consolidation shall, concurrently with the effectiveness
      of
      such combination or consolidation, be proportionately increased. In the event
      the Company shall declare or pay any dividend on the Common Stock payable in
      Common Stock or in the event the outstanding shares of Common Stock shall be
      subdivided, by reclassification or otherwise than by payment of a dividend
      in
      Common Stock, into a greater number of shares of Common Stock, the Conversion
      Price in effect immediately prior to such dividend or subdivision shall be
      proportionately decreased. Such adjustment shall take place (i) in the case
      of
      any such dividend, immediately after the close of business on the record date
      for the determination of holders of any class of securities entitled to receive
      such dividend and (ii) in the case of any such subdivision, at the close of
      business on the date immediately prior to the date upon which such corporate
      action becomes effective. If such record date shall have been fixed and such
      dividend shall not have been fully paid on the date fixed therefor, the
      adjustment previously made in the applicable Conversion Price that became
      effective on such record date shall be canceled as of the close of business
      on
      such record date, and thereafter the applicable Conversion Price shall be
      adjusted as of the time of actual payment of such dividend. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.2  Adjustment
      for Other Dividends and Distributions.
      If the
      Company at any time or from time to time after the Original Issue Date makes,
      or
      fixes a record date for the determination of holders of Common Stock entitled
      to
      receive, a dividend or other distribution payable in securities of the Company
      other than shares of Common Stock, in each such event provision shall be made
      so
      that the holder of the Note shall receive upon conversion thereof, in addition
      to the number of shares of Common Stock receivable thereupon, the amount of
      other securities of the Company that it would have received had its Note been
      converted for Common Stock on the date of such event and had it thereafter,
      during the period from the date of such event to and including the conversion
      date, retained such securities receivable by them as aforesaid during such
      period, subject to all other adjustments called for during such period under
      this Section 6 with respect to the rights of the Holder or with respect to
      such
      other securities by their terms. 

     

    6.3  Adjustment
      for Reclassification, Exchange and Substitution.
      If at
      any time or from time to time after the Original Issue Date, the Common Stock
      issuable upon the conversion of the Note is changed into the same or a different
      number of shares of any class or classes of stock, whether by recapitalization,
      reclassification or otherwise (other than a subdivision or combination of shares
      or stock dividend or a reorganization, merger, consolidation or sale of assets
      provided for elsewhere in this Section 6), in any such event the Holder shall
      have the right thereafter to convert this Note for the kind and amount of stock
      and other securities and property receivable upon such recapitalization,
      reclassification or other change by holders of the maximum number of shares
      of
      Common Stock into which this Note could have been converted immediately prior
      to
      such recapitalization, reclassification or change, all subject to further
      adjustment as provided herein or with respect to such other securities or
      property by the terms thereof. 

     

    6.4  Certificate
      as to Adjustments.
      Upon
      the occurrence of each adjustment or readjustment of the Conversion Price
      pursuant to this Section 6, the Company at its expense shall promptly compute
      such adjustment or readjustment in accordance with the terms hereof and furnish
      to each Holder a certificate setting forth such adjustment or readjustment
      and
      showing in detail the facts upon which such adjustment or readjustment is based.
      The Company shall, upon the written request at any time of any Holder, furnish
      or cause to be furnished to such Holder a like certificate setting forth (i)
      such adjustments and readjustments, (ii) the Conversion Price at the time in
      effect, and (iii) the number of shares of Common Stock and the amount, if any,
      of other property which at the time would be received upon the conversion of
      the
      Note; provided, however, that no adjustment need be made hereunder until the
      cumulative affect of such adjustment to the Conversion Price is at least
      $.01.

     

    7.  Assignment.
      Subject
      to the restrictions on transfer or assignment set forth in the Note Purchase
      Agreement, the rights and obligations of the Company and the Holder of this
      Note
      shall be binding upon and benefit the successors, assigns, heirs, administrators
      and transferees of the parties.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.  Notices.
      All
      notices, requests, consents and other communications hereunder to any party,
      shall be deemed to be sufficient if in writing and contained (i) delivered
      in
      person, (ii) delivered and received by telex, telecopier, telegram, if a
      confirmatory mailing in accordance herewith is also made, (iii) duly sent by
      registered mail return receipt requested and postage prepaid or (iv) duly sent
      by overnight delivery service, addressed to such party at the address set forth
      in the Note Purchase Agreement. All such notices and communications shall be
      deemed to have been received: (i) at the time personally (including delivery
      by
      telex, telecopier and telegram), (ii) three days after mailed to the foregoing
      persons at the addresses set forth above; (iii) the next day when sent by
      overnight delivery service; provided that rejection or other refusal to accept
      or inability to deliver because of changed address for which no notice has
      been
      received shall also constitute receipt.

     

    9.  No
      Stockholder Rights.
      Nothing
      contained in this Note shall be construed as conferring upon the Holder or
      any
      other person the right to vote or to consent or to receive notice as a
      stockholder in respect of meetings of stockholders for the election of the
      Company or any other matters or any rights whatsoever as a stockholder of the
      Company; and no dividends or other distributions shall be payable or accrued
      in
      respect of this Note or the interest represented hereby or the Conversion Shares
      obtainable hereunder until, and only to the extent that, this Note shall have
      been converted.

     

    10.  Amendment
      and Waiver.
      This
      Note is one of several issued pursuant to the Note Purchase Agreement. Any
      term
      of this Note may be amended and the observance of any term of this Note may
      be
      waived (either generally or in a particular instance and either retroactively
      or
      prospectively), only with the written consent of the Company and the Majority
      Holders. Any amendment or waiver effected in accordance with this paragraph
      shall be binding upon the Holder, and each future holder of the Note and the
      Company, provided that no such amendment or waiver shall be binding on a Holder
      that does not consent thereto to the extent such amendment or waiver treats
      such
      Holder substantially differently than any holder of a Note that does consent
      thereto.

     

    11.  Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of Delaware, excluding that body of law relating to conflict of
      laws.

     

    

    IN
      WITNESS WHEREOF, the Company has caused this Note to be issued this 6th day
      of
      September, 2007

     

    
      	 	 	 
	 	theglobe.com,
              inc.
	 
 	 
 	 
 
	 	By:  	/s/ Edward
              A.
              Cespedes
	 	
              
Edward
              A. Cespedes
	 	Title President

   

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Name
      of
      Holder: Dancing Bear Investments, Inc.

    

    Address:
        110
      E.
      Broward Boulevard    

    Suite
      1400      

    Fort
      Lauderdale, FL 33301    

    

    Taxpayer
      ID#:  65-0712083      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NOTICE
      OF CONVERSION

     

    (To
      Be
      Signed Only Upon Conversion of the Note)

    

    

    TO: theglobe.com,
      inc.

    110
      East
      Broward Blvd.

    14th
      Floor

    Fort
      Lauderdale, Florida 33301

    

    The
      undersigned, the Holder of the foregoing Note, hereby elects to convert
      $____________ of the unpaid principal amount of such Note into shares of Common
      Stock of theglobe.com, inc., and requests that the certificate for such shares
      be issued in the name of ____________.

    

    

    Dated:
           ,
      200__.

    

    

    
      	 	 	 
	 	 	
              (Signature
                must conform in

              all
                respects to name of Holder

              as
                specified on the face of the Note)

            

    

    

    
      	 	 	 
	 	 	
              (Address)Unassociated Document

    SUBSCRIPTION
      AGREEMENT

     

    SUBSCRIPTION
      AGREEMENT (this “Agreement” or this “Subscription Agreement”) dated as
      of _________ __, 2007 between Advanced Photonix, Inc., a Delaware
      corporation (the “Company”) and the undersigned investor (the “Investor” and
      together with all other investors in the offering herein described, the
“Investors”).

     

    The
      Company is offering (the “Offering”) a limited number of eligible investors the
      opportunity to purchase up to 786,725 units of its securities (the “Units”) at a
      price equal to the Formula Price (as defined below), each Unit consisting of
      (i)
      four (4) shares of its Class A Common Stock, par value $.001 a share (“Common
      Stock” ), and (ii) one (1) warrant to purchase a share of Common Stock
      (the “2007 Series Warrants”).

     

    The
      Investor desires to participate in the Offering.

     

    The
      Investor has reviewed copies of the various documents referred to in
Schedule 1
      attached
      hereto (the “Disclosure Documents”).

     

    NOW,
      THEREFORE, the Company and the Investor hereby agree as follows:

     

    
      	Section
              1. 	
               Purchase
                and Sale of Units; Description of 2007 Series Warrants; Use of Proceeds;
                Power of Attorney

            

    

     

    1.1.  Purchase
      of Units and Payment; Description of Warrants.
      Upon
      the terms and subject to the conditions contained in this Agreement, the
      Investor has on or prior to this day paid to the Company, by check, by wire
      transfer of immediately available funds, or by other means acceptable to the
      Company, the sum of money set forth opposite the Investor’s name on the
      signature page to this Agreement (the "Purchase Price"). In consideration of
      such payment, by (and subject to) its acceptance of this Subscription Agreement,
      the Company will issue to the Investor at the Closing (as defined below) the
      number of Units determined by dividing the Purchase Price by the Formula Price
      provided that no fractional shares or warrants are to be issued, but rather
      the
      number of shares and warrants to be issued shall be rounded down to the nearest
      whole number. The “Formula Price” means the product of four (4) multiplied by
      the closing price of the Company’s Common Stock on the American Stock Exchange
      (“AMEX”) on the business day immediately preceding the Closing, but in no event
      will be more than $6.00 a Unit or less than $5.72 a Unit. The Investor
      acknowledges that the Investor’s Purchase Price is non-refundable except to the
      limited extent expressly provided by the last sentence of the first paragraph
      of
      Section 1.5 below. 

     

        Each
      2007
      Series Warrant will have a term of five years (subject to earlier exercise
      or
      termination if the closing price of the Common Stock on the AMEX equals or
      exceeds $4.50 for at least twenty (20) consecutive Business Days (as defined
      in
      2007 Series Warrant to Purchase Class A Common Stock)), will be exercisable
      for the number of shares Common Stock stated therein at any time and from time
      to time during its term at an exercise price of $1.85 per share, subject to
      adjustment in certain circumstances, and will be substantially in the form
      attached hereto as Exhibit
      A.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

                
The
      Common Stock and the 2007
      Series Warrants comprising the Units shall be immediately separable upon
      issuance.

     

    1.2.  Maximum/Minimum.
      The
      Company will not accept subscriptions having an aggregate Purchase Price of
      more
      than $4,500,000 or less than $2,500,000, and the Offering will terminate and
      be
      of no force and effect unless the Company has received and accepted valid
      subscription agreements from one or more Investors having an aggregate Purchase
      Price of at least $2,500,000 (the “Minimum Condition”) on or prior to the
      Closing.

     

    1.3.  Use
      of
      Proceeds.
      The
      proceeds of the Offering will provide a portion of the funds required to
      discharge in full (the “Debt Retirement”) the indebtedness under the Company’s
      outstanding convertible notes as provided on Schedule
      1.3
      (the
“Convertible Notes”). The balance of the funds required to discharge such
      indebtedness is expected to be provided out of cash on hand and bank
      indebtedness. In this connection, the Company has received a formal commitment
      from Fifth Third Bank with respect to a proposed increase in the Company’s
      existing credit facility with that bank. No assurances can be given that the
      financing contemplated in such commitment letter can be consummated.

     

        In
      the
      unlikely event that the outstanding Convertible Notes are converted prior to
      the
      Debt Retirement, the proceeds of the Offering will be used to pay down other
      indebtedness of the Company and/or working capital.

     

    1.4.  Closing.
      Subject
      to this Section 1.4 and assuming the Minimum Condition has been met, the closing
      of the Offering with respect to each individual Investor (the "Closing") shall
      take place at the offices of the Company’s attorney, Dornbush Schaeffer Strongin
& Venaglia, LLP (at the address in Section 5.8, Notices) upon the Company’s
      acceptance of such Investor’s Subscription Agreement on such date as may be
      determined by the Company, but which shall be no later than September 7, 2007.
      The Investor understands and agrees that the Company, in its sole discretion,
      has the right to reject any Subscription Agreement proffered to it by an
      Investor at any time prior to the Closing, and/or to waive any of the
      requirements for the purchase of the Units set forth herein with respect to
      any
      Investor or Investors (which waivers need not be uniform as among or between
      Investors). In the event that this Subscription Agreement is not accepted by
      the
      Company on or before the September 7, 2007 or in the event that the Company
      withdraws or terminates this Offering, the Company will promptly return to
      the
      undersigned Investor, without interest, all funds received from the undersigned
      Investor in respect hereof. 

     

        At
      the
      Closing, the Company (i) shall deliver (or irrevocably instruct its transfer
      agent to deliver) to the Investor, certificates representing the number of
      shares of Common Stock and 2007 Series Warrants to be purchased by the Investor
      hereunder, (ii) shall execute and deliver (or cause to be delivered) to the
      Investor, a fully executed copy of the Registration Rights Agreement attached
      hereto as Exhibit
      B
      and
      (iii) shall execute and deliver (or cause to be delivered) to the Investor
      a
      signed counterpart of this Subscription Agreement. The Investor expressly
      acknowledges and agrees that the certificates to be issued to him at the Closing
      shall bear a legend to the following effect:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      
        
          	
                  THE
                    ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
                    BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                    ACT OF
                    1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
                    MAY
                    NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT
                    PURSUANT TO
                    AN EFFECTIVE REGISTRATION UNDER THE ACT OR PURSUANT TO AN EXEMPTION
                    THEREFROM.

                

        

      

    

     

    
      	Section
              2.  	
              Representations
                and Warranties

            

    

     

    2.1.  Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to the Investor as of the date hereof
      and
      the Closing Date that:

     

    (a)    Organization,
      Good Standing and Qualification.
      The
      Company is a corporation duly incorporated and existing in good standing under
      the General Corporation Law of the State of Delaware and has all requisite
      corporate power and authority to own and operate its assets and properties,
      to
      conduct its business as it is currently being conducted, to execute and deliver
      this Agreement and to consummate the transactions contemplated
      herein.

     

    (b)    Valid
      Issuance.
      The
      Common Stock subscribed for hereunder and issuable upon the exercise of the
      2007
      Series Warrants, when issued in accordance with the terms hereof and thereof,
      will be duly authorized, validly issued and non-assessable and free and clear
      of
      all taxes, liens, options, calls, contracts, commitments, demands, charges,
      security interests, encumbrances or restrictions on transfer, other than
      restrictions on transfer under applicable state and federal securities
      laws.

     

    (c)    Authorization.
      

     

    (i)  The
      Company has all requisite corporate power and authority to enter into and
      perform its obligations under this Agreement and the Registration Rights
      Agreement (collectively, the “Transaction Documents”) and to issue the Common
      Stock and Warrants in accordance with the terms hereof; 

     

    (ii)  the
      execution and delivery of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated hereby and thereby,
      including the issuance of the Common Stock and Warrants, have been duly
      authorized by all necessary corporate action, and no further consent or
      authorization of the Company or its Board of Directors (or any committee or
      subcommittee thereof) or stockholders is required; 

     

    (iii)  the
      Transaction Documents have been duly executed and delivered by the Company;
      

     

    (iv)  the
      Transaction Documents constitute valid and binding obligations of the Company
      enforceable against the Company; and 

     

    (v)  the
      Common Stock and the Warrants, and shares of Common Stock issuable upon the
      exercise of the Warrants thereof, have been duly authorized and, upon issuance
      thereof and payment therefor in accordance with the terms of this Agreement,
      will be validly issued, fully paid and non-assessable, free and clear of any
      and
      all liens, claims and encumbrances.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)    Public
      Information.
      The
      Disclosure Documents as at the respective dates of filing thereof:

     

    (i)  complied
      as to form in all material respects with applicable accounting requirements
      and
      the published rules and regulations of the Securities Exchange Commission with
      respect thereto;

     

    (ii)  all
      financial statements included therein were prepared in accordance with generally
      accepted accounting principles, consistently applied during the periods involved
      (except (x) as may otherwise be disclosed or indicated in such financial
      statements or the notes thereto or (y) 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
      year end statements to normal year-end audit adjustments); and

     

    (iii)  did
      not
      contain any untrue statement of a material fact or omit 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.

     

    (e)    No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated hereby
      and
      thereby and issuance of the Common Stock and Warrants, and the shares Common
      Stock issuable upon exercise of the Warrants will not:

     

    (i)  result
      in
      a violation of the Certificate of Incorporation, any certificate of
      designations, preferences and rights of any outstanding series of preferred
      stock of the Company or the By-laws that would have a material adverse effect;
      

     

    (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 agreement, indenture or
      instrument to which the Company or any of its subsidiaries is a party, or

     

    (iii)  result
      in
      a violation of any law, rule, regulation, order, judgment or decree (including
      United States federal and state securities laws and regulations and the rules
      and regulations of the American Stock Exchange (“Principal Market”) or other
      principal securities exchange or trading market on which the Common Stock is
      traded or listed) applicable to the Company or any of its subsidiaries or by
      which any property or asset of the Company or any of its subsidiaries is bound
      or affected that would have a material adverse effect. 

     

    (f)    Absence
      of Litigation.
      There
      is no action, suit, proceeding, inquiry or investigation before or by any court,
      public board, government agency, self-regulatory organization or body pending
      or, to the knowledge of the Company or any of its subsidiaries, threatened
      against or affecting the Company, the Common Stock or any of the Company’s
      subsidiaries or any of the Company’s or the Company’s subsidiaries’ officers or
      directors in their capacities as such, which would be material to the Company
      except as set forth in SEC Documents which were filed at least 10 days before
      the date hereof. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)    No
      Integrated Offering.
      Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf has, directly or indirectly, made any offers or sales of any security
      or
      solicited any offers to buy any security, under circumstances that would cause
      this offering of the Common Stock and Warrants to the Investors to be integrated
      with prior offerings by the Company for purposes of the Securities Act of 1933,
      as amended (the “1933 Act”), or any applicable stockholder approval provisions,
      including, without limitation, under the rules and regulations of the Principal
      Market, nor will the Company or any of its subsidiaries take any action or
      steps
      that would cause the offering of the Common Stock and Warrants to be integrated
      with other offerings.

     

    (h)    Manner
      of Sale.
      Sales
      of the Common Stock offered hereby will be made directly by the Company to
      a
      limited number of accredited investors as defined in Rule 501of Regulation
      D of
      the 1933 Act and no brokers or other intermediaries will be retained by the
      Company in connection with the Offering.

     

    2.2.  Representations
      and Warranties of the Investor.
      The
      Investor hereby represents and warrants to the Company as of the date hereof
      and
      the Closing Date that:

     

    (a)    Review
      of Agreements.
      The
      Investor has reviewed the Disclosure Documents. The Investor acknowledges that
      certain of the Disclosure Documents include “forward looking” statements that
      involve a number of risks and uncertainties, including the risks and
      uncertainties referred to in the Company’s Annual Report on Form 10-K most
      recently filed with the Securities and Exchange Commission. 

     

    (b)    Suitability
      of Investment.

     

    (i)  The
      Investor is acquiring the Units for the Investor’s own account, for investment
      purposes only and not with a view to the resale or distribution
      thereof.

     

    (ii)  The
      Investor has not and will not, directly or indirectly, offer, sell, transfer,
      assign, exchange or otherwise dispose of all or any part of the Units, except
      in
      accordance with applicable federal and state securities laws.

     

    (iii)  The
      Investor has such knowledge and experience in financial, business and tax
      matters that the Investor is capable of evaluating the merits and risks relating
      to the Investor’s investment in the Units and making an investment decision with
      respect to the Company. The Investor has independently evaluated the risks
      and
      merits of purchasing the Units and has independently determined that the Units
      are a suitable investment for such Investor. The Investor acknowledges that
      except as otherwise expressly provided herein, the Company has made no
      representation or warranty to the Investor with respect to the income or other
      tax consequences to the Investor under the laws of any jurisdiction with respect
      to an investment in the Units.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv)  To
      the
      full satisfaction of the Investor, the Investor has been given the opportunity
      to obtain information and documents relating to the Company and to ask questions
      of and receive answers from representatives of the Company concerning the
      Company and the investment made hereby.

     

    (v)  Neither
      the Investor nor any of its affiliates has engaged in any activity that would
      be
      deemed a “general solicitation” under the provisions of Regulation D under the
      1933 Act.

     

    (vi)  The
      Investor is able at this time, and in the foreseeable future, to bear the
      economic risk of a total loss of its investment in the Company.

     

    (vii)  The
      Investor is aware that there are substantial risks incident to an investment
      in
      the Company, including without limitation, those set forth in the Disclosure
      Documents. 

     

    (viii)  The
      Investor understands that, unless he, she or it notifies the Company in writing
      to the contrary at or before the Closing, all the undersigned’s representations
      and warranties contained in this Agreement will be deemed to have been
      reaffirmed and confirmed as of the Closing, taking into account all information
      received by the undersigned Investor.

     

    (ix)  The
      Investor is an “accredited investor” within the meaning of that term as set
      forth in Rule 501(a) under the 1933 Act, and the Investor has completed the
      Investor Certificate attached as Annex
      A
      hereto
      to indicate the qualifications that make the Investor such an accredited
      investor.

     

    (c)    American
      Stock Exchange Investor Questionnaire.
      The
      Investor has completed and returned to the Company the AMEX Investor
      Questionnaire if applicable.

     

    (d)    Accuracy
      of Information.
      The
      information concerning the Investor (and its executive officers, directors
      and
      owners, if applicable) which is set forth in the Investor Certificate and the
      AMEX Investor Questionnaire, is true and correct on the date of the Investor’s
      execution and delivery of this Agreement and the Investor will promptly notify
      the Company of any event which would cause the same not to be true and
      correct.

     

    (e)    Authorization.
      All
      action on the part of the Investor necessary for the authorization, execution
      and delivery of this Agreement and for the performance of all obligations of
      the
      Investor hereunder has been taken. This Agreement has been duly executed and
      delivered by the Investor and constitutes the valid and binding obligation
      of
      the Investor, enforceable against the Investor in accordance with its
      terms.

     

    (f)    Trading
      in Common Stock.
      Since
      August 1, 2007 the Investor has not executed, and during the period between
      August 1, 2007 and the Closing the Investor will not execute, any purchase
      or
      sale of the Common Stock or any short sales. For purposes of this clause (g),
      the term short sale means all types of direct and indirect stock pledges,
      forward sale contacts, options, puts, calls, short sales, swaps (including
      on a
      total return basis), and any other similar transactions whether or not having
      the effect of hedging any position in the Common Stock. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	Section
              3.  	
              Indemnification

            

    

     

    3.1.  Company
      Indemnification.
      The
      Company covenants and agrees to defend, indemnify and save and hold harmless
      the
      Investor, together with its officers, directors, partners, members, employees,
      trustees, and affiliates, attorneys and representatives, from and against any
      and all losses, costs, expenses, liabilities, claims or legal damages
      (including, without limitation, reasonable fees and disbursements of counsel
      and
      accountants and other costs and expenses incident to any actual or threatened
      claim, suit, action or proceeding, whether incurred in connection with a claim
      against the Company or a third party claim) (collectively, “Investor Losses”) up
      to the amount of the Purchase Price arising out of or resulting from: (i) any
      inaccuracy in or breach of any representation, warranty, covenant or agreement
      made by the Company in this Agreement; or (ii) the failure of the Company to
      perform or observe fully any covenant, agreement or provision to be performed
      or
      observed by it pursuant to this Agreement. Investor Losses resulting directly
      from the gross negligence or willful misconduct of the Investor or any of its
      respective officers, directors, employees, affiliates and attorneys are not
      covered under this Section. 

     

    3.2.  Investor
      Indemnification. The Investor covenants and agrees to defend, indemnify and
      save and hold harmless the Company, its officers, directors, partners, members,
      employees, trustees, affiliates, attorneys and representatives, from and against
      any and all losses, costs, expenses, liabilities, claims or legal damages
      (including, without limitation, reasonable fees and disbursements of counsel
      and
      accountants and other costs and expenses incident to any actual or threatened
      claim, suit, action or proceeding, whether incurred in connection with a claim
      against the Investor or a third party claim) (collectively, “Company Losses”),
      relating to violations of 1933 Act or other applicable law arising out of or
      resulting from: (i) any inaccuracy in or breach of any representation, warranty,
      covenant or agreement made by the Investor in this Agreement; or (ii) the
      failure of the Investor to perform or observe fully any covenant, agreement
      or
      provision to be performed or observed by it pursuant to this Agreement.
      Notwithstanding the foregoing, the Investor shall only be liable to make any
      indemnification pursuant to this Section 3.2 to the extent of the aggregate
      dollar amount invested by the Investor pursuant to the offering. Company Losses
      resulting directly from the gross negligence or willful misconduct of the
      Company or any of its respective officers, directors, employees, affiliates
      and
      attorneys are not covered under this Section. 

     

    3.3.  Indemnification
      Procedure.
      Each
      party entitled to be indemnified pursuant to Section 3.1 and 3.2 (each, an
      “Indemnified Party”) shall notify the other party (the “Indemnifying Party”) in
      writing of any action against such Indemnified Party in respect of which the
      other party is or may be obligated to provide indemnification pursuant to
      Section 3.1 or 3.2, promptly after the receipt of notice or knowledge of the
      commencement thereof. The omission of any Indemnified Party so to notify the
      other party of any such action shall not relieve the Indemnifying Party from
      any
      liability which it may have to such Indemnified Party except to the extent
      the
      Indemnifying Party shall have been prejudiced by the omission of such
      Indemnified Party so to notify it, pursuant to this Section 3.3. In case any
      such action shall be brought against any Indemnified Party, the Indemnifying
      Party shall be entitled to participate therein and, to the extent that the
      Indemnifying Party may wish, to assume the defense thereof, with counsel
      reasonably satisfactory to such Indemnified Party, and after notice from it
      to
      such Indemnified Party of its election so to assume the defense thereof, the
      Indemnifying Party will not be liable to such Indemnified Party for any legal
      or
      other expense subsequently incurred by such Indemnified Party in connection
      with
      the defense thereof nor for any settlement thereof entered into without the
      consent of the Indemnifying Party; provided,
      however,
      that
      (i) if the Indemnifying Party shall elect not to assume the defense of such
      claim or action or (ii) if the Indemnified Party reasonably determines (x)
      that
      there is a substantial actual conflict between the positions of the Indemnifying
      Party and of the Indemnified Party in defending such claim or action or (y)
      that
      there may be legal defenses available to such Indemnified Party different from
      or in addition to those available to the Indemnifying Party, then separate
      counsel for the Indemnified Party shall be entitled to participate in and
      conduct the defense, and the Indemnifying Party shall be liable for any
      reasonable legal or other expenses incurred by the Indemnified Party in
      connection therewith.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.4.  Indemnification
      Exclusive.
      The
      foregoing indemnification provisions are exclusive, and in lieu of any
      statutory, equitable or common law remedy any party may have for breach of
      representation, warranty, covenant or agreement, all of which are hereby
      irrevocably waived and relinquished to the maximum legal effect.

     

     Section
      4.    Registration
      Rights.
      The
      Investor is aware that except as set forth below, the Company does not intend
      (and is not required) to register the offer or sale of the Common Stock and
      2007
      Series Warrants offered hereby under the Securities Act of 1933, as amended
      or
      under any similar law of any other jurisdiction (the “Act”), that such offer and
      sale are intended to be exempt from registration under the Acts, and that the
      Acts may prohibit or severely limit the Investor’s ability to sell, assign,
      transfer or otherwise dispose of the Common Stock and 2007 Series Warrants
      to be
      purchased hereunder unless and until any such registration is completed.
      Notwithstanding the foregoing, at
      the
      Closing the Investor and the Company shall enter into the Registration Rights
      Agreement providing, among other things, that the Company will (i) file a
      registration statement covering the resale of the shares of Common Stock of
      the
      Investor purchased hereunder and issuable upon exercise of the 2007 Series
      Warrants with the Securities Exchange Commission not later than December 7,
      2007
      (the “Filing Deadline”) and (ii) cause such registration statement to become
      effective not later than 120 days following the Filing Deadline, in each case
      as
      more fully provided and subject to the terms and conditions of such Registration
      Rights Agreement, provided that if there
      is
      a full review of the Registration Statement by the Securities and Exchange
      Commission, 150 days after the Filing Deadline.

     

    
      	Section
              5.  	
              Miscellaneous

            

    

     

    5.1.  Survival
      of Warranties and Covenants.
      The
      representations, warranties and rights to indemnification set forth in Section
      2
      shall survive indefinitely except as limited by applicable laws.

     

    5.2.  Successors
      and Assigns.
      This
      Agreement may not be assigned by the Investor without the prior written consent
      of the Company. Nothing in this Agreement, express or implied, is intended
      to
      confer upon any party, other than the parties hereto or their respective
      successors and permitted assigns, any rights, remedies, obligations, or
      liabilities under or by reason of this Agreement, except as expressly provided
      in this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.3.  Waiver
      and Amendment.
      Neither
      this Agreement nor any provisions hereof shall be modified, amended, discharged
      or terminated, except by an instrument in writing, signed by the party against
      whom any modification, amendment, discharge or termination is sought. Any term
      or condition of this Agreement may be waived at any time by the party that
      is
      entitled to the benefit thereof, but no such waiver shall be effective unless
      set forth in a written instrument duly executed by or on behalf of the party
      waiving such term or condition. No waiver by any party of any term or condition
      of this Agreement, in any one or more instances, shall be deemed to be or
      construed as a waiver of the same or any other term or condition of this
      Agreement on any future occasion. All remedies, either under this Agreement
      or
      by law or otherwise afforded, will be cumulative and not
      alternative.

     

    5.4.  Submission
      to Jurisdiction.
      Each of
      the Investor and the Company hereby submits to the exclusive jurisdiction of
      the
      courts of the State of New York and the federal courts of the United States
      located in the State of New York, for purposes of all legal proceedings arising
      out of or relating to this Agreement and the transactions contemplated hereby.
      Each of the Investor and the Company irrevocably waives, to the fullest extent
      permitted by law, any objection which it may now or hereafter have to the laying
      of the venue of any such proceeding brought in such a court and any claim that
      any such proceeding brought in such a court has been brought in an inconvenient
      forum.

     

    5.5.  Waiver
      of Jury Trial.
      Each
      party hereto hereby waives its rights to a jury trial of any claim or cause
      of
      action based upon or arising out of this Agreement. The scope of this waiver
      is
      intended to be all-encompassing of any and all disputes that may be filed in
      any
      court and that relate to the subject matter of this transaction, including,
      without limitation, contract claims, tort claims, breach of duty claims and
      all
      other common law and statutory claims. Each party hereto hereby further warrants
      and represents that such party knowingly and voluntarily waives its jury trial
      rights following consultation with legal counsel. This waiver is irrevocable,
      meaning that it may not be modified either orally or in writing, and this waiver
      shall apply to any subsequent amendments, supplement or modifications to (or
      assignments of) this Agreement. In the event of litigation, this Agreement
      may
      be filed as a written consent to a trial (without a jury) by the
      court.

     

    5.6.  Section
      and Other Headings.
      The
      section and other headings contained in this Agreement are for reference
      purposes only and shall not affect the meaning or interpretation of this
      Agreement.

     

    5.7.  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed to be an original and all of which
      together shall be deemed to be one and the same agreement. The Parties agree
      that facsimile signatures of this Agreement shall be deemed a valid and binding
      execution of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.8.  Notices.
      Unless
      otherwise provided, any notice or other communication required or permitted
      to
      be given or effected under this Agreement shall be in writing and shall be
      deemed effective upon personal or facsimile delivery to the party to be notified
      or three business days after deposit with an internationally recognized courier
      service, delivery fees prepaid, and addressed to the party to be notified at
      the
      following respective addresses, or at such other addresses as may be designated
      by written notice; provided,
      however,
      that
      any notice of change of address shall be deemed effective only upon
      receipt:

     

    
      	 	
              If
                to the Company:

            	
              Advanced
                Photonix, Inc.

            

      	 	 	
              2925
                Boardwalk

              Ann
                Arbor, MI 48104

              Attention:
                President

            

    

    

    
      	 	
              With
                a copy to:

            	
              Dornbush
                Schaeffer Strongin & Venaglia, LLP

            

      	 	 	
              747
                Third Avenue

              New
                York, New York 10017

              Attention:
                Landey Strongin, Esq.

            

    

    
    

    
    

     

    
      	 	
              If
                to the Investor:

            	
              At
                the address of the Investor indicated on the signature page
                hereof.

            

    

    

    5.9.  Entire
      Agreement.
      This
      Agreement, including the Schedules and Exhibits attached hereto, supersedes
      all
      prior discussions and agreements among the parties hereto with respect to the
      subject matter hereof and contains the sole and entire agreement among the
      parties hereto with respect to the subject matter hereof.

     

    5.10.  Expenses;
      Attorneys’ Fees.
      The
      Company shall pay reasonable legal costs not to exceed $10,000 incurred by
      Investors in connection with the Offering including directly related
      post-Closing matters, and review of any registration statement filed pursuant
      to
      Section 4 above.

     

    5.11.  Further
      Assurances.
      Each
      party hereto shall execute and deliver such additional documents as may
      reasonably be necessary or desirable to consummate the transactions contemplated
      by this Agreement.

     

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

     

    5.13.  Money
      Laundering.
      The
      Investor acknowledges that due to money laundering laws and regulations that
      may
      be applicable to the operation of the Company and its business, the Company
      may
      require such proof of identity or other documentation as may be required to
      comply with such laws and regulations before this Agreement can be processed
      and
      the Company and its directors, officers, employees, and agents shall be held
      harmless and indemnified against any loss ensuing due to the failure of the
      Investor to truthfully provide any such proof as may be so
      required.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Agreement on this
      _____ day of __________, 2007.

    

    
      	
              Name
                of Investor:

            	
              Aggregate
                Purchase Price: 

              $________________________________________

            
	
               

               

              _________________________________________

              By:
                 

              Name:
                

              Title:

               

               

              Witness’
                Signature: _________________________________________

            	 
	
              Number
                and Street

               

               

            
	
               

              City,
                State and Zip

               

               

            
	
               Subscriber’s
                Social Security or Taxpayer Identification Number:

               

            	 

    

    

    If
      Fiduciary or Corporation, check one:

     

    
      	
              o Trust

            	
              o  Estate 
                

            	
              o Power
                of Attorney

            	
              o 
                Corporation

            

    

     

    ALL
      INVESTORS MUST COMPLETE THE QUESTIONNAIRE 

    ATTACHED
      AS ANNEX A 

    

    Accepted
      by:

    

    ADVANCED
      PHOTONIX, INC.

    

    

    

    By:
      _____________________________________________ 

       Richard
      D. Kurtz,
      Chief Executive Officer and President        Dated:
      _______ ___, 2007

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