Document:

GUARANTY
      AND PLEDGE AGREEMENT

     

    GUARANTY
      AND PLEDGE AGREEMENT
      (this
“Agreement”),
      dated
      as of September 21, 2007, among Innofone.com, Inc., a Nevada corporation (the
      “Company”),
      Alex
      Lightman (the “Pledgor”),
      and
      the pledgees signatory hereto and their respective endorsees, transferees and
      assigns (collectively, the “Pledgees”).

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      pursuant to a Securities Purchase Agreement, dated the date hereof, between
      Company and the Pledgees (the “Purchase
      Agreement”),
      Company has agreed to issue to the Pledgees and the Pledgees have agreed to
      purchase from Company certain of Company’s 8% Callable Secured Convertible
      Notes, due three years from the date of issuance (the “Notes”),
      which
      are convertible into shares of Company’s Common Stock, par value $.001 per share
      (the “Common
      Stock”).
      In
      connection therewith, Company shall issue the Pledgees certain Common Stock
      purchase warrants (the “Warrants”);
      and

     

    WHEREAS,
      as a material inducement to the Pledgees to enter into the Purchase Agreement,
      the Pledgees have required and the Pledgor has agreed (i) to unconditionally
      guarantee the timely and full satisfaction of all obligations of the Company,
      whether matured or unmatured, now or hereafter existing or created and becoming
      due and payable (the “Obligations”)
      to the
      Pledgees, their successors, endorsees, transferees or assigns under the
      Transaction Documents (as defined in the Purchase Agreement) to the extent
      of
      the Collateral (as defined in Section 5 hereof), and (ii) to grant to the
      Pledgees, their successors, endorsees, transferees or assigns a security
      interest in the number of shares of Common Stock currently owned by the Pledgor
      as set forth below the Pledgor’s signature on the signature page hereto
      (collectively, the “Shares”),
      as
      collateral security for Obligations. Terms used and not defined herein shall
      have the meaning ascribed to them in the Purchase Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing recitals, and the mutual covenants
      contained herein, the parties hereby agree as follows:

     

    1. Guaranty.
      To the
      extent of the Collateral, the Pledgor hereby absolutely, unconditionally and
      irrevocably guarantees to the Pledgees, their successors, endorsees, transferees
      and assigns the due and punctual performance and payment of the Obligations
      owing to the Pledgees, their successors, endorsees, transferees or assigns
      when
      due, all at the time and place and in the amount and manner prescribed in,
      and
      otherwise in accordance with, the Transaction Documents, regardless of any
      defense or set-off counterclaim which the Company or any other person may have
      or assert, and regardless of whether or not the Pledgees or anyone on behalf
      of
      the Pledgees shall have instituted any suit, action or proceeding or exhausted
      its remedies or taken any steps to enforce any rights against the Company or
      any
      other person to compel any such performance or observance or to collect all
      or
      part of any such amount, either pursuant to the provisions of the Transaction
      Documents or at law or in equity, and regardless of any other condition or
      contingency. The Pledgor shall have no obligation whatsoever to the Pledgees
      beyond the Collateral pledged for the Obligations set forth
      herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. Waiver
      of Demand.
      The
      Pledgor hereby unconditionally: (i) waives any requirement that the Pledgees,
      in
      the event of a breach in any material respect by the Company of any of its
      representations or warranties in the Transaction Documents, first make demand
      upon, or seek to enforce remedies against, the Company or any other person
      before demanding payment of enforcement hereunder; (ii) covenants that this
      Agreement will not be discharged except by complete performance of all the
      Obligations to the extent of the Collateral; (iii) agrees that this Agreement
      shall remain in full force and effect without regard to, and shall not be
      affected or impaired, without limitation, by, any invalidity, irregularity
      or
      unenforceability in whole or in part of the Transaction Documents or any
      limitation on the liability of the Company thereunder, or any limitation on
      the
      method or terms of payment thereunder which may now or hereafter be caused
      or
      imposed in any manner whatsoever; and (iv) waives diligence, presentment and
      protest with respect to, and notice of default in the performance or payment
      of
      any Obligation by the Company under or in connection with the Transaction
      Documents.

     

    3. Release.
      The
      obligations, covenants, agreements and duties of the Pledgor hereunder shall
      not
      be released, affected or impaired by any assignment or transfer, in whole or
      in
      part, of the Transaction Documents or any Obligation, although made without
      notice to or the consent of the Pledgor, or any waiver by the Pledgees, or
      by
      any other person, of the performance or observance by the Company or the Pledgor
      of any of the agreements, covenants, terms or conditions contained in the
      Transaction Documents, or any indulgence in or the extension of the time or
      renewal thereof, or the modification or amendment (whether material or
      otherwise), or the voluntary or involuntary liquidation, sale or other
      disposition of all or any portion of the stock or assets of the Company or
      the
      Pledgor, or any receivership, insolvency, bankruptcy, reorganization, or other
      similar proceedings, affecting the Company or the Pledgor or any assets of
      the
      Company or the Pledgor, or the release of any proper from any security for
      any
      Obligation, or the impairment of any such property or security, or the release
      or discharge of the Company or the Pledgor from the performance or observance
      of
      any agreement, covenant, term or condition contained in or arising out of the
      Transaction Documents by operation of law, or the merger or consolidation of
      the
      Company, or any other cause, whether similar or dissimilar to the
      foregoing.

     

    4. Subrogation.

     

    (a) Unless
      and until complete performance of all the Obligations to the extent of the
      Collateral, the Pledgor shall not be entitled to exercise any right of
      subrogation to any of the rights of the Pledgees against the Company or any
      collateral security or guaranty held by the Pledgees for the payment or
      performance of the Obligations, nor shall the Pledgor seek any reimbursement
      from the Company in respect of payments made by the Pledgor
      hereunder.

     

    (b) In
      the
      extent that the Pledgor shall become obligated to perform or pay any sums
      hereunder, or in the event that for any reason the Company is now or shall
      hereafter become indebted to the Pledgor, the amount of such sum shall at all
      times be subordinate as to lien, time of payment and in all other respects,
      to
      the amounts owing to the Pledgees under the Transaction Documents and the
      Pledgor shall not enforce or receive payment thereof until all Obligations
      due
      to the Pledgees under the Transaction have been performed or paid. Nothing
      herein contained is intended or shall be construed to give to the Pledgor any
      right of subrogation in or under the Transaction Documents, or any right to
      participate in any way therein, or in any right, title or interest in the assets
      of the Pledgees.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    5. Security.
      As
      collateral security for the punctual payment and performance, when due, by
      the
      Company of all the Obligations, the Pledgor hereby pledges with, hypothecates,
      transfers and assigns to the Pledgees all of the Shares and all proceeds, shares
      and other securities received, receivable or otherwise distributed in respect
      of
      or in exchange for the Shares, including, without limitation, any shares and
      other securities into which such Shares may be convertible or exchangeable
      (collectively, the “Additional
      Collateral”
and
      together with the Shares, the “Collateral”).
      Simultaneously herewith, the Pledgor shall deliver to the Pledgees the
      certificate(s) representing the Shares, stamped with a bank medallion guarantee,
      along with a stock transfer power duly executed in blank by the Pledgor, to
      be
      held by the Pledgees as security. Any Collateral received by the Pledgor on
      or
      after the date hereof shall be immediately delivered to the Pledgees together
      with any executed stock powers or other transfer documents requested by the
      Pledgees, which request may be made at any time prior to the date when the
      Obligations shall have been paid and otherwise satisfied in full.

     

    6. Voting
      Power, Dividends, Etc. and other Agreements.

     

    (a) Unless
      and until an Event of Default (as set forth in Section 7 hereof) has occurred,
      the Pledgor shall be entitled to:

     

    (i) Exercise
      all voting and/or consensual powers pertaining to the Collateral, or any part
      thereof, for all purposes;

     

    (ii) Receive
      and retain dividends paid with respect to the Collateral; and

     

    (iii) Receive
      the benefits of any income tax deductions available to the Pledgor as a
      shareholder of the Company.

     

    (b) The
      Pledgor agrees that it will not sell, assign, transfer, pledge, hypothecate,
      encumber or otherwise dispose of the Collateral.

     

    (c) The
      Pledgor and the Company jointly and severally agree to pay all costs including
      all reasonable attorneys’ fees and disbursements incurred by the Pledgees in
      enforcing this Agreement in accordance with its terms.

     

    7. Default
      and Remedies.

     

    (a) For
      the
      purposes of this Agreement, “Event
      of Default”
shall
      mean:

     

    (i) default
      in or under any of the Obligations after the expiration, without cure, of any
      applicable cure period;

     

    (ii) a
      breach
      in any material respect by the Company of any of its representations or
      warranties in the Transaction Documents; or

    
      
         

      

      
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    (iii) a
      breach
      in any material respect by the Pledgor of any of its representations or
      warranties in this Agreement.

     

    (b) the
      Pledgees shall have the following rights upon any Event of Default:

     

    (i) the
      rights and remedies provided by the Uniform Commercial Code as adopted by the
      State of New York (the “UCC”)
      (as
      said law may at any time be amended);

     

    (ii) the
      right
      to receive and retain all dividends, payments and other distributions of any
      kind upon any or all of the Collateral;

     

    (iii) the
      right
      to cause any or all of the Collateral to be transferred to its own name or
      to
      the name of its designee and have such transfer recorded in any place or places
      deemed appropriate by the Pledgees; and

     

    (iv) the
      right
      to sell, at a public or private sale, the Collateral or any part thereof for
      cash, upon credit or for future delivery, and at such price or prices in
      accordance with the UCC (as such law may be amended from time to time). Upon
      any
      such sale the Pledgees shall have the right to deliver, assign and transfer
      to
      the purchaser thereof the Collateral so sold. The Pledgees shall give the
      Pledgor not less than ten (10) days’ written notice of its intention to make any
      such sale. Any such sale, shall be held at such time or times during ordinary
      business hours and at such place or places as the Pledgees may fix in the notice
      of such sale. The Pledgees may adjourn or cancel any sale or cause the same
      to
      be adjourned from time to time by announcement at the time and place fixed
      for
      the sale, and such sale may be made at any time or place to which the same
      may
      be so adjourned. In case of any sale of all or any part of the Collateral upon
      terms calling for payments in the future, any Collateral so sold may be retained
      by the Pledgees until the selling price is paid by the purchaser thereof, but
      the Pledgees shall incur no liability in the case of the failure of such
      purchaser to take up and pay for the Collateral so sold and, in the case of
      such
      failure, such Collateral may again be sold upon like notice. The Pledgees,
      however, instead of exercising the power of sale herein conferred upon them,
      may
      proceed by a suit or suits at law or in equity to foreclose the security
      interest and sell the Collateral, or any portion thereof, under a judgment
      or
      decree of a court or courts of competent jurisdiction, the Pledgor having been
      given due notice of all such action. The Pledgees shall incur no liability
      as a
      result of a sale of the Collateral or any part thereof. All proceeds of any
      such
      sale, after deducting the reasonable expenses and reasonable attorneys’ fees
      incurred in connection with such sale, shall be applied in reduction of the
      Obligations, and the remainder, if any, shall be paid to the
      Pledgor.

     

    8. Application
      of Proceeds; Release.
      The
      proceeds of any sale or enforcement of or against all or any part of the
      Collateral, and any other cash or collateral at the time held by the Pledgees
      hereunder, shall be applied by the Pledgees first to the payment of the
      reasonable costs of any such sale or enforcement, then to reimburse the Pledgees
      for any damages, costs or expenses incurred by the Pledgees as a result of
      an
      Event of Default, then to the payment of the principal amount or stated valued
      (as applicable) of, and interest or dividends (as applicable) and any other
      payments due in respect of, the Obligations. The remainder, if any, shall be
      paid to the Pledgor. As used in this Agreement, “proceeds”
shall
      mean cash, securities and other property realized in respect of, and
      distributions in kind of, the Collateral, including any thereof received under
      any reorganization, liquidation or adjustment of debt of any issuer of
      securities included in the Collateral.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    9. Representations
      and Warranties.

     

    (a) The
      Pledgor hereby represents and warrants to the Pledgees that:

     

    (i) the
      Pledgor has full power and authority and legal right to pledge the Collateral
      to
      the Pledgees pursuant to this Agreement and this Agreement constitutes a legal,
      valid and binding obligation of the Pledgor, enforceable in accordance with
      its
      terms.

     

    (ii) the
      execution, delivery and performance of this Agreement and other instruments
      contemplated herein will not violate any provision of any order or decree of
      any
      court or governmental instrumentality or of any mortgage, indenture, contract
      or
      other agreement to which the Pledgor is a party or by which the Pledgor and
      the
      Collateral may be bound, and will not result in the creation or imposition
      of
      any lien, charge or encumbrance on, or security interest in, any of the
      Pledgor’s properties pursuant to the provisions of such mortgage, indenture,
      contract or other agreement.

     

    (iii) the
      Pledgor is the sole record and beneficial owner of all of the Shares;
      and

     

    (iv) the
      Pledgor owns the Collateral free and clear of all Liens.

     

    (b) The
      Company represents and warrants to the Pledgees that:

     

    (i) it
      has no
      knowledge that any of the representations or warranties of the Pledgor herein
      are incorrect or false in any material respect;

     

    (ii) all
      of
      the Shares were validly issued, fully paid and non-assessable; and

     

    (iii) the
      Pledgor is the record holder of the Shares.

     

    10. No
      Waiver; No Election of Remedies.
      No
      failure on the part of the Pledgees to exercise, and no delay in exercising,
      any
      right, power or remedy hereunder shall operate as a waiver thereof; nor shall
      any single or partial exercise by the Pledgees of any right, power or remedy
      preclude any other or further exercise thereof or the exercise of any other
      right, power or remedy. The remedies herein provided are cumulative and are
      not
      exclusive of any remedies provided by law. In addition, the exercise of any
      right or remedy of the Pledgees at law or equity or under this Agreement or
      any
      of the documents shall not be deemed to be an election of Pledgee’s rights or
      remedies under such documents or at law or equity.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    11. Termination.
      This
      Agreement shall terminate on the date on which all Obligations have been
      performed, satisfied, paid or discharged in full.

     

    12. Further
      Assurances.
      The
      parties hereto agree that, from time to time upon the written request of any
      party hereto, they will execute and deliver such further documents and do such
      other acts and things as such party may reasonably request in order fully to
      effect the purposes of this Agreement. The Pledgees acknowledge that they are
      aware that Pledgor shall have no obligations whatsoever to the Pledgees beyond
      the Collateral pledged for the Obligations set forth herein, and no request
      for
      further assurance may or shall increase such Obligations.

     

    13. Miscellaneous.

     

    (a) Modification.
      This
      Agreement contains the entire understanding between the parties with respect
      to
      the subject matter hereof and specifically incorporates all prior oral and
      written agreements relating to the subject matter hereof. No portion or
      provision of this Agreement may be changed, modified, amended, waived,
      supplemented, discharged, canceled or terminated orally or by any course of
      dealing, or in any manner other than by an agreement in writing, signed by
      the
      party to be charged.

     

    (b) Notice.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile telephone number specified in this
      Section prior to 6:30 p.m. (New York City time) on a Business Day (as defined
      in
      the Purchase Agreement), (ii) the Business Day after the date of transmission,
      if such notice or communication is delivered via facsimile at the facsimile
      telephone number specified in this Agreement later than 6:30 p.m. (New York
      City
      time) on any date and earlier than 11:59 p.m. (New York City time) on such
      date,
      (iii) the Business Day following the date of mailing, if sent by nationally
      recognized overnight courier services, or (iv) upon actual receipt by the party
      to whom such notice is required to be given. The address for such notices and
      communications shall be as follows:

    

      
        	
                If
                  to the Company:

              	
                Innofone.com,
                  Inc.

              
	 	
                3470
                  Olney-Laytonsville Road, Suite 118

              
	 	
                Olney,
                  MD 20832

              
	 	
                Attention:
                  Chief Executive Officer

              
	 	
                Telephone:
                  (301) 774-6913

              
	 	
                Facsimile:

              

      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
              With
                copies to:

            	
              Gersten,
                Savage, Kaplowitz, Wolf & Marcus, LLP

            
	 	
              600
                Lexington Avenue

            
	 	
              New
                York, New York 10022

            
	 	
              Attention:
                Arthur S. Marcus, Esq.

            
	 	
              Telephone:
                (212) 752-9700

            
	 	
              Facsimile:
                (212) 980-5192

            
	 	 
	
              If
                to the Pledgor:

            	
              Alex
                Lightman

            
	 	
              c/o
                Innofone.com, Inc.

            
	 	
              3470
                Olney-Laytonsville Road, Suite 118

            
	 	
              Olney,
                MD 20832

            
	 	
              Attention:
                Chief Executive Officer

            
	 	
              Telephone:

            
	 	
              Facsimile:

            
	 	 
	
              If
                to the Pledgees:

            	
              AJW
                Partners, LLC

            
	 	
              AJW
                Master Fund, Ltd.

            
	 	
              New
                Millennium Capital Partners II, LLC

            
	 	
              1044
                Northern Boulevard

            
	 	
              Suite
                302

            
	 	
              Roslyn,
                New York 11576

            
	 	
              Facsimile
                No.: (516) 739-7115

            
	 	
              Attention:
                Corey S. Ribotsky

            
	 	 
	
              With
                copies to:

            	
              Ballard
                Spahr Andrews & Ingersoll, LLP

            
	 	
              1735
                Market Street, 51st Fl.

            
	 	
              Philadelphia,
                PA 19103

            
	 	
              Facsimile
                No.: (215) 864-8999

            
	 	
              Attention:
                Gerald J. Guarcini, Esquire

            

    

     

    (c) Invalidity.
      If any
      part of this Agreement is contrary to, prohibited by, or deemed invalid under
      applicable laws or regulations, such provision shall be inapplicable and deemed
      omitted to the extent so contrary, prohibited or invalid, but the remainder
      hereof shall not be invalidated thereby and shall be given effect so far as
      possible.

     

    (d) Benefit
      of Agreement.
      This
      Agreement shall be binding upon and inure to the parties hereto and their
      respective successors and assigns.

     

    (e) Mutual
      Agreement.
      This
      Agreement embodies the arm’s length negotiation and mutual agreement between the
      parties hereto and shall not be construed against either party as having been
      drafted by it.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (f) New
      York Law to Govern.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      internal laws of the State of New York without regard to the principals of
      conflicts of law thereof. Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and Federal courts sitting in the city of New York,
      borough of Manhattan, for the adjudication of any dispute hereunder or in
      connection herewith or with any transaction contemplated hereby or discussed
      herein, and hereby irrevocably waives, and agrees not to assert in any suit,
      action or proceeding, any claim that it is not personally subject to the
      jurisdiction of any such court or that such suit, action or proceeding is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address in effect for notices to
      it
      under this agreement and agrees that such service shall constitute good and
      sufficient service of process and notice thereof. Nothing contained herein
      shall
      be deemed to limit in any way any right to serve process in any manner permitted
      by law.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Guaranty and Pledge
      Agreement to be duly executed by their respective authorized persons as of
      the
      date first indicated above.

    

    
      	
              INNOFONE.COM,
                INC.

            
	 	 	 
	
              By:

            	 
	 	Alex
              Lightman
	 	Chief
              Executive Officer
	 	 	 
	
              Pledgees:

            
	 	 	 
	
              AJW
                PARTNERS, LLC

            
	
              By:

            	
              SMS
                Group, LLC

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Corey
                S. Ribotsky

            
	 	 	
              Manager

            
	 	 	 
	
              AJW
                MASTER FUND, LTD.

            
	
              By:
                

            	
              First
                Street Manager II, LLC

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Corey
                S. Ribotsky

            
	 	 	
              Manager

            
	 	 	 
	
              NEW MILLENNIUM CAPITAL PARTNERS II, LLC

            
	
              By:
                

            	
              First
                Street Manager II, LLC

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Corey
                S. Ribotsky

            
	 	 	
              Manager

            

    

     

    [Signatures
      Continued on Following Page]

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
              Pledgor:

            
	 
	
              Alex
                Lightman

            
	 
	
              Number of Shares subject to this pledge: __________

            
	 
	
              Date such Shares were acquired: __________

            

    

     

    
      
         

      

      
        10REGISTRATION
      RIGHTS AGREEMENT

     

    REGISTRATION
      RIGHTS AGREEMENT (this “Agreement”),
      dated
      as of September 21, 2007, by and among Innofone.com, Inc., a Nevada corporation,
      with headquarters located at 3470 Onley-Laytonsville Road, Suite 118, Olney,
      MD
      20832 (the “Company”),
      and
      each of the undersigned (together with their respective affiliates and any
      assignee or transferee of all of their respective rights hereunder, the
“Initial
      Investors”).
      

     

    WHEREAS:

     

    A. In
      connection with the Securities Purchase Agreement by and among the parties
      hereto of even date herewith (the “Securities Purchase Agreement”), the Company
      has agreed, upon the terms and subject to the conditions contained therein,
      to
      issue and sell to the Initial Investors (i) secured
      convertible notes in the aggregate principal amount of up to Two Hundred
      Thousand Dollars ($200,000) (the “Notes”) that are convertible into shares of
      the Company’s common stock (the “Common Stock”), upon the terms and subject to
      the limitations and conditions set forth in such Notes and (ii) warrants
      (the “Warrants”) to acquire an aggregate of 5,000,000 shares of Common Stock,
      upon the terms and conditions and subject to the limitations and conditions
      set
      forth in the Warrants; and

     

    B. To
      induce
      the Initial Investors to execute and deliver the Securities Purchase Agreement,
      the Company has agreed to provide certain registration rights under the
      Securities Act of 1933, as amended, and the rules and regulations thereunder,
      or
      any similar successor statute (collectively, the “1933
      Act”),
      and
      applicable state securities laws;

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and each of the Initial Investors hereby agree
      as follows:

     

    1. DEFINITIONS.

     

    a. As
      used
      in this Agreement, the following terms shall have the following
      meanings:

     

    (i) “Investors”
means
      the Initial Investors and any transferee or assignee who agrees to become bound
      by the provisions of this Agreement in accordance with Section 9
      hereof.

     

    (ii) “register,”
      “registered,”
and
      “registration”
refer
      to a registration effected by preparing and filing a Registration Statement
      or
      Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
      1933 Act or any successor rule providing for offering securities on a continuous
      basis (“Rule
      415”),
      and
      the declaration or ordering of effectiveness of such Registration Statement
      by
      the United States Securities and Exchange Commission (the “SEC”).

     

    (iii) “Registrable
      Securities”
means
      the Conversion Shares issued or issuable upon conversion or otherwise pursuant
      to the Notes (as defined in the Securities Purchase Agreement) including,
      without limitation, Damages Shares (as defined in the Notes) issued or issuable
      pursuant to the Notes, shares of Common Stock issued or issuable in payment
      of
      the Standard Liquidated Damages Amount (as defined in the Securities Purchase
      Agreement), shares issued or issuable in respect of interest or in redemption
      of
      the Notes in accordance with the terms thereof) and Warrant Shares issuable,
      upon exercise or otherwise pursuant to the Warrants, and any shares of capital
      stock issued or issuable as a dividend on or in exchange for or otherwise with
      respect to any of the foregoing.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (iv) “Registration
      Statement”
means
      a
      registration statement of the Company under the 1933 Act.

     

    b. Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Securities Purchase Agreement or the Convertible
      Note.

     

    2. REGISTRATION.

     

    a. Mandatory
      Registration.
      The
      Company shall prepare, and, on or prior to forty-five (45) days from the date
      of
      Closing (as defined in the Securities Purchase Agreement) (the “Filing
      Date”),
      file
      with the SEC a Registration Statement on Form S-3 (or, if Form S-3 is not then
      available, on such form of Registration Statement as is then available to effect
      a registration of the Registrable Securities, subject to the consent of the
      Initial Investors, which consent will not be unreasonably withheld) covering
      the
      resale of the Registrable Securities underlying the Notes and Warrants issued
      or
      issuable pursuant to the Securities Purchase Agreement, which Registration
      Statement, to the extent allowable under the 1933 Act and the rules and
      regulations promulgated thereunder (including Rule 416), shall state that such
      Registration Statement also covers such indeterminate number of additional
      shares of Common Stock as may become issuable upon conversion of or otherwise
      pursuant to the Notes and exercise of the Warrants to prevent dilution resulting
      from stock splits, stock dividends or similar transactions. The number of shares
      of Common Stock initially included in such Registration Statement shall be
      no
      less than an amount equal to the sum of the number of Conversion Shares that
      are
      then issuable upon conversion of the Notes and (based on the Variable Conversion
      Price as would then be in effect and assuming the Variable Conversion Price
      is
      the Conversion Price at such time), and the number of Warrant Shares that are
      then issuable upon exercise of the Warrants, without regard to any limitation
      on
      the Investor’s ability to convert the Notes or exercise the Warrants. The
      Company acknowledges that the number of shares initially included in the
      Registration Statement represents a good faith estimate of the maximum number
      of
      shares issuable upon conversion of the Notes and upon exercise of the Warrants.
      

     

    b. Underwritten
      Offering.
      If any
      offering pursuant to a Registration Statement pursuant to Section 2(a) hereof
      involves an underwritten offering, the Investors who hold a majority in interest
      of the Registrable Securities subject to such underwritten offering, with the
      consent of a majority-in-interest of the Initial Investors, shall have the
      right
      to select one legal counsel and an investment banker or bankers and manager
      or
      managers to administer the offering, which investment banker or bankers or
      manager or managers shall be reasonably satisfactory to the
      Company.

    
      
         

      

      
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    c. Payments
      by the Company.
      The
      Company shall use its best efforts to obtain effectiveness of the Registration
      Statement as soon as practicable. If (i) the
      Registration Statement(s) covering the Registrable Securities required to be
      filed by the Company pursuant to Section 2(a) hereof is not filed by the Filing
      Date or declared effective by the SEC on or prior to one hundred and twenty
      (120) days from the date of Closing (as defined in the Securities Purchase
      Agreement), or (ii) after
      the Registration Statement has been declared effective by the SEC, sales of
      all
      of the Registrable Securities cannot be made pursuant to the Registration
      Statement, or (iii) the
      Common Stock is not listed or included for quotation on the Nasdaq National
      Market (“Nasdaq”),
      the
      Nasdaq SmallCap Market (“Nasdaq
      SmallCap”),
      the
      New York Stock Exchange (the “NYSE”)
      or the
      American Stock Exchange (the “AMEX”)
      after
      being so listed or included for quotation, or (iv) the
      Common Stock ceases to be traded on the Over-the-Counter Bulletin Board (the
      “OTCBB”)
      or any
      equivalent replacement exchange prior to being listed or included for quotation
      on one of the aforementioned markets, then the Company will make payments to
      the
      Investors in such amounts and at such times as shall be determined pursuant
      to
      this Section 2(c) as partial relief for the damages to the Investors by reason
      of any such delay in or reduction of their ability to sell the Registrable
      Securities (which remedy shall not be exclusive of any other remedies available
      at law or in equity). The Company shall pay to each holder of the Notes or
      Registrable Securities an amount equal to the then outstanding principal amount
      of the Notes (and, in the case of holders of Registrable Securities, the
      principal amount of Notes from which such Registrable Securities were converted)
      (“Outstanding
      Principal Amount”),
      multiplied by the Applicable Percentage (as defined below) times the sum of:
      (i)
      the number of months (prorated for partial months) after the Filing Date or
      the
      end of the aforementioned one hundred and five (105) day period and prior to
      the
      date the Registration Statement is declared effective by the SEC, provided,
      however, that there shall be excluded from such period any delays which are
      solely attributable to changes required by the Investors in the Registration
      Statement with respect to information relating to the Investors, including,
      without limitation, changes to the plan of distribution, or to the failure
      of
      the Investors to conduct their review of the Registration Statement pursuant
      to
      Section 3(h) below in a reasonably prompt manner; (ii) the number of months
      (prorated for partial months) that sales of all of the Registrable Securities
      cannot be made pursuant to the Registration Statement after the Registration
      Statement has been declared effective (including, without limitation, when
      sales
      cannot be made by reason of the Company’s failure to properly supplement or
      amend the prospectus included therein in accordance with the terms of this
      Agreement, but excluding any days during an Allowed Delay (as defined in Section
      3(f)); and (iii) the number of months (prorated for partial months) that the
      Common Stock is not listed or included for quotation on the OTCBB, Nasdaq,
      Nasdaq SmallCap, NYSE or AMEX or that trading thereon is halted after the
      Registration Statement has been declared effective. The term “Applicable
      Percentage”
means
      two hundredths (.02). (For example, if the Registration Statement becomes
      effective one (1) month after the end of such one hundred and twenty (120)
      day
      period, the Company would pay $5,000 for each $250,000 of Outstanding Principal
      Amount. If thereafter, sales could not be made pursuant to the Registration
      Statement for an additional period of one (1) month, the Company would pay
      an
      additional $5,000 for each $250,000 of Outstanding Principal Amount.) Such
      amounts shall be paid in cash or, at the Company’s option, in shares of Common
      Stock priced at the Conversion Price (as defined in the Notes) on such payment
      date. 

    
      
         

      

      
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    d. Piggy-Back
      Registrations.
      Subject
      to the last sentence of this Section 2(d), if at any time prior to the
      expiration of the Registration Period (as hereinafter defined) the Company
      shall
      determine to file with the SEC a Registration Statement relating to an offering
      for its own account or the account of others under the 1933 Act of any of its
      equity securities (other than on Form S-4 or Form S-8 or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other bona fide,
      employee benefit plans), the Company shall send to each Investor who is entitled
      to registration rights under this Section 2(d) written notice of such
      determination and, if within fifteen (15) days after the effective date of
      such
      notice, such Investor shall so request in writing, the Company shall include
      in
      such Registration Statement all or any part of the Registrable Securities such
      Investor requests to be registered, except that if, in connection with any
      underwritten public offering for the account of the Company the managing
      underwriter(s) thereof shall impose a limitation on the number of shares of
      Common Stock which may be included in the Registration Statement because, in
      such underwriter(s)’ judgment, marketing or other factors dictate such
      limitation is necessary to facilitate public distribution, then the Company
      shall be obligated to include in such Registration Statement only such limited
      portion of the Registrable Securities with respect to which such Investor has
      requested inclusion hereunder as the underwriter shall permit. Any exclusion
      of
      Registrable Securities shall be made pro rata among the Investors seeking to
      include Registrable Securities in proportion to the number of Registrable
      Securities sought to be included by such Investors; provided,
      however,
      that
      the Company shall not exclude any Registrable Securities unless the Company
      has
      first excluded all outstanding securities, the holders of which are not entitled
      to inclusion of such securities in such Registration Statement or are not
      entitled to pro rata inclusion with the Registrable Securities; and provided,
      further,
      however,
      that,
      after giving effect to the immediately preceding proviso, any exclusion of
      Registrable Securities shall be made pro rata with holders of other securities
      having the right to include such securities in the Registration Statement other
      than holders of securities entitled to inclusion of their securities in such
      Registration Statement by reason of demand registration rights. No right to
      registration of Registrable Securities under this Section 2(d) shall be
      construed to limit any registration required under Section 2(a) hereof. If
      an
      offering in connection with which an Investor is entitled to registration under
      this Section 2(d) is an underwritten offering, then each Investor whose
      Registrable Securities are included in such Registration Statement shall, unless
      otherwise agreed by the Company, offer and sell such Registrable Securities
      in
      an underwritten offering using the same underwriter or underwriters and, subject
      to the provisions of this Agreement, on the same terms and conditions as other
      shares of Common Stock included in such underwritten offering. Notwithstanding
      anything to the contrary set forth herein, the registration rights of the
      Investors pursuant to this Section 2(d) shall only be available in the event
      the
      Company fails to timely file, obtain effectiveness or maintain effectiveness
      of
      any Registration Statement to be filed pursuant to Section 2(a) in accordance
      with the terms of this Agreement.

     

    e. Eligibility
      for Form S-3, SB-2 or S-1; Conversion to Form S-3.
      The
      Company represents and warrants that it meets the requirements for the use
      of
      Form S-3, SB-2 or S-1 for registration of the sale by the Initial Investors
      and
      any other Investors of the Registrable Securities. The Company agrees to file
      all reports required to be filed by the Company with the SEC in a timely manner
      so as to remain eligible or become eligible, as the case may be, and thereafter
      to maintain its eligibility, for the use of Form S-3. If the Company is not
      currently eligible to use Form S-3, not later than five (5) business days after
      the Company first meets the registration eligibility and transaction
      requirements for the use of Form S-3 (or any successor form) for registration
      of
      the offer and sale by the Initial Investors and any other Investors of
      Registrable Securities, the Company shall file a Registration Statement on
      Form
      S-3 (or such successor form) with respect to the Registrable Securities covered
      by the Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
      filed pursuant to Section 2(a) (and include in such Registration Statement
      on
      Form S-3 the information required by Rule 429 under the 1933 Act) or convert
      the
      Registration Statement on Form SB-2 or Form S-1, whichever is applicable, filed
      pursuant to Section 2(a) to a Form S-3 pursuant to Rule 429 under the 1933
      Act
      and cause such Registration Statement (or such amendment) to be declared
      effective no later than sixty (60) days after filing. In the event of a breach
      by the Company of the provisions of this Section 2(e), the Company will be
      required to make payments pursuant to Section 2(c) hereof.

    
      
         

      

      
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    3. OBLIGATIONS
      OF THE COMPANY. 

     

    In
      connection with the registration of the Registrable Securities, the Company
      shall have the following obligations:

     

    a. The
      Company shall prepare promptly, and file with the SEC not later than the Filing
      Date, a Registration Statement with respect to the number of Registrable
      Securities provided in Section 2(a), and thereafter use its best efforts to
      cause such Registration Statement relating to Registrable Securities to become
      effective as soon as possible after such filing but in no event later than
      one
      hundred and twenty (120) days from the date of Closing), and keep the
      Registration Statement effective pursuant to Rule 415 at all times until such
      date as is the earlier of (i) the date on which all of the Registrable
      Securities have been sold and (ii) the date on which the Registrable Securities
      (in the opinion of counsel to the Initial Investors) may be immediately sold
      to
      the public without registration or restriction (including, without limitation,
      as to volume by each holder thereof) under the 1933 Act (the “Registration
      Period”),
      which
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall not contain 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.

     

    b. The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statements and
      the prospectus used in connection with the Registration Statements as may be
      necessary to keep the Registration Statements effective at all times during
      the
      Registration Period, and, during such period, comply with the provisions of
      the
      1933 Act with respect to the disposition of all Registrable Securities of the
      Company covered by the Registration Statements until such time as all of such
      Registrable Securities have been disposed of in accordance with the intended
      methods of disposition by the seller or sellers thereof as set forth in the
      Registration Statements. In the event the number of shares available under
      a
      Registration Statement filed pursuant to this Agreement is insufficient to
      cover
      all of the Registrable Securities issued or issuable upon conversion of the
      Notes and exercise of the Warrants, the Company shall amend the Registration
      Statement, or file a new Registration Statement (on the short form available
      therefor, if applicable), or both, so as to cover all of the Registrable
      Securities, in each case, as soon as practicable, but in any event within
      fifteen (15) days after the necessity therefor arises (based on the market
      price
      of the Common Stock and other relevant factors on which the Company reasonably
      elects to rely). The Company shall use its best efforts to cause such amendment
      and/or new Registration Statement to become effective as soon as practicable
      following the filing thereof, but in any event within thirty (30) days after
      the
      date on which the Company reasonably first determines (or reasonably should
      have
      determined) the need therefor. The provisions of Section 2(c) above shall be
      applicable with respect to such obligation, with the one hundred and twenty
      (120) days running from the day the Company reasonably first determines (or
      reasonably should have determined) the need therefor.

    
      
         

      

      
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    c. The
      Company shall furnish to each Investor whose Registrable Securities are included
      in a Registration Statement and its legal counsel (i) promptly
      (but in no event more than two (2) business days) after the same is prepared
      and
      publicly distributed, filed with the SEC, or received by the Company, one copy
      of each Registration Statement and any amendment thereto, each preliminary
      prospectus and prospectus and each amendment or supplement thereto, and, in
      the
      case of the Registration Statement referred to in Section 2(a), each letter
      written by or on behalf of the Company to the SEC or the staff of the SEC,
      and
      each item of correspondence from the SEC or the staff of the SEC, in each case
      relating to such Registration Statement (other than any portion of any thereof
      which contains information for which the Company has sought confidential
      treatment), and (ii) promptly
      (but in no event more than two (2) business days) after the Registration
      Statement is declared effective by the SEC, such number of copies of a
      prospectus, including a preliminary prospectus, and all amendments and
      supplements thereto and such other documents as such Investor may reasonably
      request in order to facilitate the disposition of the Registrable Securities
      owned by such Investor. The Company will immediately notify each Investor by
      facsimile of the effectiveness of each Registration Statement or any
      post-effective amendment. The Company will promptly (but in no event more than
      five (5) business days) respond to any and all comments received from the SEC
      (which comments shall promptly be made available to the Investors upon request),
      with a view towards causing each Registration Statement or any amendment thereto
      to be declared effective by the SEC as soon as practicable, shall promptly
      file
      an acceleration request as soon as practicable (but in no event more than two
      (2) business days) following the resolution or clearance of all SEC comments
      or,
      if applicable, following notification by the SEC that any such Registration
      Statement or any amendment thereto will not be subject to review and shall
      promptly file with the SEC a final prospectus as soon as practicable (but in
      no
      event more than two (2) business days) following receipt by the Company from
      the
      SEC of an order declaring the Registration Statement effective. In the event
      of
      a breach by the Company of the provisions of this Section 3(c), the Company
      will
      be required to make payments pursuant to Section 2(c) hereof.

     

    d. The
      Company shall use reasonable efforts to (i) register
      and qualify the Registrable Securities covered by the Registration Statements
      under such other securities or “blue sky” laws of such jurisdictions in the
      United States as the Investors who hold a majority in interest of the
      Registrable Securities being offered reasonably request, (ii) prepare
      and file in those jurisdictions such amendments (including post-effective
      amendments) and supplements to such registrations and qualifications as may
      be
      necessary to maintain the effectiveness thereof during the Registration Period,
      (iii) take
      such other actions as may be necessary to maintain such registrations and
      qualifications in effect at all times during the Registration Period, and
(iv) take
      all other actions reasonably necessary or advisable to qualify the Registrable
      Securities for sale in such jurisdictions; provided,
      however,
      that
      the Company shall not be required in connection therewith or as a condition
      thereto to (a) qualify
      to do business in any jurisdiction where it would not otherwise be required
      to
      qualify but for this Section 3(d), (b) subject
      itself to general taxation in any such jurisdiction, (c) file
      a general consent to service of process in any such jurisdiction, (d) provide
      any undertakings that cause the Company undue expense or burden, or (e) make
      any change in its charter or bylaws, which in each case the Board of Directors
      of the Company determines to be contrary to the best interests of the Company
      and its shareholders.

    
      
         

      

      
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    e. In
      the
      event Investors who hold a majority-in-interest of the Registrable Securities
      being offered in the offering (with the approval of a majority-in-interest
      of
      the Initial Investors) select underwriters for the offering, the Company shall
      enter into and perform its obligations under an underwriting agreement, in
      usual
      and customary form, including, without limitation, customary indemnification
      and
      contribution obligations, with the underwriters of such offering.

     

    f. As
      promptly as practicable after becoming aware of such event, the Company shall
      notify each Investor of the happening of any event, of which the Company has
      knowledge, as a result of which the prospectus included in any Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, and use its best efforts promptly
      to
      prepare a supplement or amendment to any Registration Statement to correct
      such
      untrue statement or omission, and deliver such number of copies of such
      supplement or amendment to each Investor as such Investor may reasonably
      request; provided that, for not more than ten (10) consecutive trading days
      (or
      a total of not more than twenty (20) trading days in any twelve (12) month
      period), the Company may delay the disclosure of material non-public information
      concerning the Company (as well as prospectus or Registration Statement
      updating) the disclosure of which at the time is not, in the good faith opinion
      of the Company, in the best interests of the Company (an “Allowed
      Delay”);
      provided, further, that the Company shall promptly (i) notify
      the Investors in writing of the existence of (but in no event, without the
      prior
      written consent of an Investor, shall the Company disclose to such investor
      any
      of the facts or circumstances regarding) material non-public information giving
      rise to an Allowed Delay and (ii) advise
      the Investors in writing to cease all sales under such Registration Statement
      until the end of the Allowed Delay. Upon expiration of the Allowed Delay, the
      Company shall again be bound by the first sentence of this Section 3(f) with
      respect to the information giving rise thereto.

     

    g. The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of any Registration Statement, and, if such
      an
      order is issued, to obtain the withdrawal of such order at the earliest possible
      moment and to notify each Investor who holds Registrable Securities being sold
      (or, in the event of an underwritten offering, the managing underwriters) of
      the
      issuance of such order and the resolution thereof.

     

    h. The
      Company shall permit a single firm of counsel designated by the Initial
      Investors to review such Registration Statement and all amendments and
      supplements thereto (as well as all requests for acceleration or effectiveness
      thereof) a reasonable period of time prior to their filing with the SEC, and
      not
      file any document in a form to which such counsel reasonably objects and will
      not request acceleration of such Registration Statement without prior notice
      to
      such counsel. The sections of such Registration Statement covering information
      with respect to the Investors, the Investor’s beneficial ownership of securities
      of the Company or the Investors intended method of disposition of Registrable
      Securities shall conform to the information provided to the Company by each
      of
      the Investors.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    i. The
      Company shall make generally available to its security holders as soon as
      practicable, but not later than one hundred and twenty (120) days after the
      close of the period covered thereby, an earnings statement (in form complying
      with the provisions of Rule 158 under the 1933 Act) covering a twelve-month
      period beginning not later than the first day of the Company’s fiscal quarter
      next following the effective date of the Registration Statement.

     

    j. At
      the
      request of any Investor, the Company shall furnish, on the date that Registrable
      Securities are delivered to an underwriter, if any, for sale in connection
      with
      any Registration Statement or, if such securities are not being sold by an
      underwriter, on the date of effectiveness thereof (i) an
      opinion, dated as of such date, from counsel representing the Company for
      purposes of such Registration Statement, in form, scope and substance as is
      customarily given in an underwritten public offering, addressed to the
      underwriters, if any, and the Investors and (ii) a
      letter, dated such date, from the Company’s independent certified public
      accountants in form and substance as is customarily given by independent
      certified public accountants to underwriters in an underwritten public offering,
      addressed to the underwriters, if any, and the Investors.

     

    k. The
      Company shall make available for inspection by (i) any
      Investor, (ii) any
      underwriter participating in any disposition pursuant to a Registration
      Statement, (iii) one
      firm of attorneys and one firm of accountants or other agents retained by the
      Initial Investors, (iv) one
      firm of attorneys and one firm of accountants or other agents retained by all
      other Investors, and (v) one
      firm of attorneys retained by all such underwriters (collectively, the
“Inspectors”)
      all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company, including without limitation, records of conversions
      by other holders of convertible securities issued by the Company and the
      issuance of stock to such holders pursuant to the conversions (collectively,
      the
“Records”),
      as
      shall be reasonably deemed necessary by each Inspector to enable each Inspector
      to exercise its due diligence responsibility, and cause the Company’s officers,
      directors and employees to supply all information which any Inspector may
      reasonably request for purposes of such due diligence; provided,
      however,
      that
      each Inspector shall hold in confidence and shall not make any disclosure
      (except to an Investor) of any Record or other information which the Company
      determines in good faith to be confidential, and of which determination the
      Inspectors are so notified, unless (a) the
      disclosure of such Records is necessary to avoid or correct a misstatement
      or
      omission in any Registration Statement, (b) the
      release of such Records is ordered pursuant to a subpoena or other order from
      a
      court or government body of competent jurisdiction, or (c) the
      information in such Records has been made generally available to the public
      other than by disclosure in violation of this or any other agreement. The
      Company shall not be required to disclose any confidential information in such
      Records to any Inspector until and unless such Inspector shall have entered
      into
      confidentiality agreements (in form and substance satisfactory to the Company)
      with the Company with respect thereto, substantially in the form of this Section
      3(k). Each Investor agrees that it shall, upon learning that disclosure of
      such
      Records is sought in or by a court or governmental body of competent
      jurisdiction or through other means, give prompt notice to the Company and
      allow
      the Company, at its expense, to undertake appropriate action to prevent
      disclosure of, or to obtain a protective order for, the Records deemed
      confidential. Nothing herein (or in any other confidentiality agreement between
      the Company and any Investor) shall be deemed to limit the Investor’s ability to
      sell Registrable Securities in a manner which is otherwise consistent with
      applicable laws and regulations. 

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    l. The
      Company shall hold in confidence and not make any disclosure of information
      concerning an Investor provided to the Company unless (i) disclosure
      of such information is necessary to comply with federal or state securities
      laws, (ii) the
      disclosure of such information is necessary to avoid or correct a misstatement
      or omission in any Registration Statement, (iii) the
      release of such information is ordered pursuant to a subpoena or other order
      from a court or governmental body of competent jurisdiction, or (iv) such
      information has been made generally available to the public other than by
      disclosure in violation of this or any other agreement. The Company agrees
      that
      it shall, upon learning that disclosure of such information concerning an
      Investor is sought in or by a court or governmental body of competent
      jurisdiction or through other means, give prompt notice to such Investor prior
      to making such disclosure, and allow the Investor, at its expense, to undertake
      appropriate action to prevent disclosure of, or to obtain a protective order
      for, such information.

     

    m. The
      Company shall (i) cause
      all the Registrable Securities covered by the Registration Statement to be
      listed on each national securities exchange on which securities of the same
      class or series issued by the Company are then listed, if any, if the listing
      of
      such Registrable Securities is then permitted under the rules of such exchange,
      or (ii) to
      the extent the securities of the same class or series are not then listed on
      a
      national securities exchange, secure the designation and quotation, of all
      the
      Registrable Securities covered by the Registration Statement on Nasdaq or,
      if
      not eligible for Nasdaq, on Nasdaq SmallCap or, if not eligible for Nasdaq
      or
      Nasdaq SmallCap, on the OTCBB and, without limiting the generality of the
      foregoing, to arrange for at least two market makers to register with the
      National Association of Securities Dealers, Inc. (“NASD”)
      as
      such with respect to such Registrable Securities.

     

    n. The
      Company shall provide a transfer agent and registrar, which may be a single
      entity, for the Registrable Securities not later than the effective date of
      the
      Registration Statement.

     

    o. The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and the managing underwriter or underwriters, if any, to facilitate
      the
      timely preparation and delivery of certificates (not bearing any restrictive
      legends) representing Registrable Securities to be offered pursuant to a
      Registration Statement and enable such certificates to be in such denominations
      or amounts, as the case may be, as the managing underwriter or underwriters,
      if
      any, or the Investors may reasonably request and registered in such names as
      the
      managing underwriter or underwriters, if any, or the Investors may request,
      and,
      within three (3) business days after a Registration Statement which includes
      Registrable Securities is ordered effective by the SEC, the Company shall
      deliver, and shall cause legal counsel selected by the Company to deliver,
      to
      the transfer agent for the Registrable Securities (with copies to the Investors
      whose Registrable Securities are included in such Registration Statement) an
      instruction in the form attached hereto as Exhibit
      1
      and an
      opinion of such counsel in the form attached hereto as Exhibit 2.

    
      
         

      

      
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    p. At
      the
      request of the holders of a majority-in-interest of the Registrable Securities,
      the Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      any
      prospectus used in connection with the Registration Statement as may be
      necessary in order to change the plan of distribution set forth in such
      Registration Statement.

     

    q. From
      and
      after the date of this Agreement, the Company shall not, and shall not agree
      to,
      allow the holders of any securities of the Company to include any of their
      securities in any Registration Statement under Section 2(a) hereof or any
      amendment or supplement thereto under Section 3(b) hereof without the consent
      of
      the holders of a majority-in-interest of the Registrable
      Securities.

     

    r. The
      Company shall take all other reasonable actions necessary to expedite and
      facilitate disposition by the Investors of Registrable Securities pursuant
      to a
      Registration Statement.

     

    4. OBLIGATIONS
      OF THE INVESTORS.

     

    In
      connection with the registration of the Registrable Securities, the Investors
      shall have the following obligations:

     

    a. It
      shall
      be a condition precedent to the obligations of the Company to complete the
      registration pursuant to this Agreement with respect to the Registrable
      Securities of a particular Investor that such Investor shall furnish to the
      Company such information regarding itself, the Registrable Securities held
      by it
      and the intended method of disposition of the Registrable Securities held by
      it
      as shall be reasonably required to effect the registration of such Registrable
      Securities and shall execute such documents in connection with such registration
      as the Company may reasonably request. At least three (3) business days prior
      to
      the first anticipated filing date of the Registration Statement, the Company
      shall notify each Investor of the information the Company requires from each
      such Investor. 

     

    b. Each
      Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of the Registration Statements hereunder, unless
      such Investor has notified the Company in writing of such Investor’s election to
      exclude all of such Investor’s Registrable Securities from the Registration
      Statements.

     

    c. In
      the
      event Investors holding a majority-in-interest of the Registrable Securities
      being registered (with the approval of the Initial Investors) determine to
      engage the services of an underwriter, each Investor agrees to enter into and
      perform such Investor’s obligations under an underwriting agreement, in usual
      and customary form, including, without limitation, customary indemnification
      and
      contribution obligations, with the managing underwriter of such offering and
      take such other actions as are reasonably required in order to expedite or
      facilitate the disposition of the Registrable Securities, unless such Investor
      has notified the Company in writing of such Investor’s election to exclude all
      of such Investor’s Registrable Securities from such Registration
      Statement.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    d. Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(f) or 3(g), such
      Investor will immediately discontinue disposition of Registrable Securities
      pursuant to the Registration Statement covering such Registrable Securities
      until such Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Section 3(f) or 3(g) and, if so directed by the
      Company, such Investor shall deliver to the Company (at the expense of the
      Company) or destroy (and deliver to the Company a certificate of destruction)
      all copies in such Investor’s possession, of the prospectus covering such
      Registrable Securities current at the time of receipt of such
      notice.

     

    e. No
      Investor may participate in any underwritten registration hereunder unless
      such
      Investor (i) agrees
      to sell such Investor’s Registrable Securities on the basis provided in any
      underwriting arrangements in usual and customary form entered into by the
      Company, (ii) completes
      and executes all questionnaires, powers of attorney, indemnities, underwriting
      agreements and other documents reasonably required under the terms of such
      underwriting arrangements, and (iii) agrees
      to pay its pro rata share of all underwriting discounts and commissions and
      any
      expenses in excess of those payable by the Company pursuant to Section 5
      below.

     

    5. EXPENSES
      OF REGISTRATION.

     

    All
      reasonable expenses, other than underwriting discounts and commissions, incurred
      in connection with registrations, filings or qualifications pursuant to Sections
      2 and 3, including, without limitation, all registration, listing and
      qualification fees, printers and accounting fees, the fees and disbursements
      of
      counsel for the Company, and the reasonable fees and disbursements of one
      counsel selected by the Initial Investors pursuant to Sections 2(b) and 3(h)
      hereof shall be borne by the Company.

     

    6. INDEMNIFICATION.
      

     

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    a. To
      the
      extent permitted by law, the Company will indemnify, hold harmless and defend
      (i) each
      Investor who holds such Registrable Securities, (ii) the
      directors, officers, partners, employees, agents and each person who controls
      any Investor within the meaning of the 1933 Act or the Securities Exchange
      Act
      of 1934, as amended (the “1934
      Act”),
      if
      any, (iii) any
      underwriter (as defined in the 1933 Act) for the Investors, and (iv) the
      directors, officers, partners, employees and each person who controls any such
      underwriter within the meaning of the 1933 Act or the 1934 Act, if any (each,
      an
“Indemnified
      Person”),
      against any joint or several losses, claims, damages, liabilities or expenses
      (collectively, together with actions, proceedings or inquiries by any regulatory
      or self-regulatory organization, whether commenced or threatened, in respect
      thereof, “Claims”)
      to
      which any of them may become subject insofar as such Claims arise out of or
      are
      based upon: (i) any untrue statement or alleged untrue statement of a material
      fact in a Registration Statement or the omission or alleged omission to state
      therein a material fact required to be stated or necessary to make the
      statements therein not misleading; (ii) any untrue statement or alleged untrue
      statement of a material fact contained in any preliminary prospectus if used
      prior to the effective date of such Registration Statement, or contained in
      the
      final prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading; or (iii) any violation or alleged violation by the Company
      of the 1933 Act, the 1934 Act, any other law, including, without limitation,
      any
      state securities law, or any rule or regulation thereunder relating to the
      offer
      or sale of the Registrable Securities (the matters in the foregoing clauses
      (i)
      through (iii) being, collectively, “Violations”).
      Subject to the restrictions set forth in Section 6(c) with respect to the number
      of legal counsel, the Company shall reimburse the Indemnified Person, promptly
      as such expenses are incurred and are due and payable, for any reasonable legal
      fees or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 6(a): (i) shall not apply to a Claim arising out of or based upon a
      Violation which occurs in reliance upon and in conformity with information
      furnished in writing to the Company by any Indemnified Person or underwriter
      for
      such Indemnified Person expressly for use in connection with the preparation
      of
      such Registration Statement or any such amendment thereof or supplement thereto,
      if such prospectus was timely made available by the Company pursuant to Section
      3(c) hereof; (ii) shall not apply to amounts paid in settlement of any Claim
      if
      such settlement is effected without the prior written consent of the Company,
      which consent shall not be unreasonably withheld; and (iii) with respect to
      any
      preliminary prospectus, shall not inure to the benefit of any Indemnified Person
      if the untrue statement or omission of material fact contained in the
      preliminary prospectus was corrected on a timely basis in the prospectus, as
      then amended or supplemented, such corrected prospectus was timely made
      available by the Company pursuant to Section 3(c) hereof, and the Indemnified
      Person was promptly advised in writing not to use the incorrect prospectus
      prior
      to the use giving rise to a Violation and such Indemnified Person,
      notwithstanding such advice, used it. Such indemnity shall remain in full force
      and effect regardless of any investigation made by or on behalf of the
      Indemnified Person and shall survive the transfer of the Registrable Securities
      by the Investors pursuant to Section 9.

     

    b. In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees severally and not jointly to indemnify,
      hold harmless and defend, to the same extent and in the same manner set forth
      in
      Section 6(a), the Company, each of its directors, each of its officers who
      signs
      the Registration Statement, each person, if any, who controls the Company within
      the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
      shareholder selling securities pursuant to the Registration Statement or any
      of
      its directors or officers or any person who controls such shareholder or
      underwriter within the meaning of the 1933 Act or the 1934 Act (collectively and
      together with an Indemnified Person, an “Indemnified
      Party”),
      against any Claim to which any of them may become subject, under the 1933 Act,
      the 1934 Act or otherwise, insofar as such Claim arises out of or is based
      upon
      any Violation by such Investor, in each case to the extent (and only to the
      extent) that such Violation occurs in reliance upon and in conformity with
      written information furnished to the Company by such Investor expressly for
      use
      in connection with such Registration Statement; and subject to Section 6(c)
      such
      Investor will reimburse any legal or other expenses (promptly as such expenses
      are incurred and are due and payable) reasonably incurred by them in connection
      with investigating or defending any such Claim; provided,
      however,
      that
      the indemnity agreement contained in this Section 6(b) shall not apply to
      amounts paid in settlement of any Claim if such settlement is effected without
      the prior written consent of such Investor, which consent shall not be
      unreasonably withheld; provided,
      further,
      however,
      that
      the Investor shall be liable under this Agreement (including this Section 6(b)
      and Section 7) for only that amount as does not exceed the net proceeds to
      such
      Investor as a result of the sale of Registrable Securities pursuant to such
      Registration Statement. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such Indemnified Party
      and shall survive the transfer of the Registrable Securities by the Investors
      pursuant to Section 9. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(b) with
      respect to any preliminary prospectus shall not inure to the benefit of any
      Indemnified Party if the untrue statement or omission of material fact contained
      in the preliminary prospectus was corrected on a timely basis in the prospectus,
      as then amended or supplemented.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    c. Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action (including any governmental action),
      such Indemnified Person or Indemnified Party shall, if a Claim in respect
      thereof is to be made against any indemnifying party under this Section 6,
      deliver to the indemnifying party a written notice of the commencement thereof,
      and the indemnifying party shall have the right to participate in, and, to
      the
      extent the indemnifying party so desires, jointly with any other indemnifying
      party similarly noticed, to assume control of the defense thereof with counsel
      mutually satisfactory to the indemnifying party and the Indemnified Person
      or
      the Indemnified Party, as the case may be; provided,
      however,
      that an
      Indemnified Person or Indemnified Party shall have the right to retain its
      own
      counsel with the fees and expenses to be paid by the indemnifying party, if,
      in
      the reasonable opinion of counsel retained by the indemnifying party, the
      representation by such counsel of the Indemnified Person or Indemnified Party
      and the indemnifying party would be inappropriate due to actual or potential
      differing interests between such Indemnified Person or Indemnified Party and
      any
      other party represented by such counsel in such proceeding. The indemnifying
      party shall pay for only one separate legal counsel for the Indemnified Persons
      or the Indemnified Parties, as applicable, and such legal counsel shall be
      selected by Investors holding a majority-in-interest of the Registrable
      Securities included in the Registration Statement to which the Claim relates
      (with the approval of a majority-in-interest of the Initial Investors), if
      the
      Investors are entitled to indemnification hereunder, or the Company, if the
      Company is entitled to indemnification hereunder, as applicable. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent that the indemnifying party is actually prejudiced in
      its
      ability to defend such action. The indemnification required by this Section
      6
      shall be made by periodic payments of the amount thereof during the course
      of
      the investigation or defense, as such expense, loss, damage or liability is
      incurred and is due and payable.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    7. CONTRIBUTION.

     

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided,
      however,
      that
(i) no
      contribution shall be made under circumstances where the maker would not have
      been liable for indemnification under the fault standards set forth in Section
      6, (ii) no
      seller of Registrable Securities guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from any seller of Registrable Securities who was not guilty of such fraudulent
      misrepresentation, and (iii)contribution
      (together with any indemnification or other obligations under this Agreement)
      by
      any seller of Registrable Securities shall be limited in amount to the net
      amount of proceeds received by such seller from the sale of such Registrable
      Securities.

     

    8. REPORTS
      UNDER THE 1934 ACT.

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the investors to sell securities of the Company to the public
      without registration (“Rule
      144”),
      the
      Company agrees to:

     

    a. make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

     

    b. file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the 1933 Act and the 1934 Act so long as the Company remains
      subject to such requirements (it being understood that nothing herein shall
      limit the Company’s obligations under Section 4(c) of the Securities Purchase
      Agreement) and the filing of such reports and other documents is required for
      the applicable provisions of Rule 144; and

     

    c. furnish
      to each Investor so long as such Investor owns Registrable Securities, promptly
      upon request, (i) a
      written statement by the Company that it has complied with the reporting
      requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a
      copy of the most recent annual or quarterly report of the Company and such
      other
      reports and documents so filed by the Company, and (iii) such
      other information as may be reasonably requested to permit the Investors to
      sell
      such securities pursuant to Rule 144 without registration.

     

    9. ASSIGNMENT
      OF REGISTRATION RIGHTS.

     

    The
      rights under this Agreement shall be automatically assignable by the Investors
      to any transferee of all or any portion of Registrable Securities if:
      (i) the Investor agrees in writing with the transferee or assignee to
      assign such rights, and a copy of such agreement is furnished to the Company
      within a reasonable time after such assignment, (ii) the Company is, within
      a reasonable time after such transfer or assignment, furnished with written
      notice of (a) the
      name and address of such transferee or assignee, and (b) the
      securities with respect to which such registration rights are being transferred
      or assigned, (iii) following such transfer or assignment, the further
      disposition of such securities by the transferee or assignee is restricted
      under
      the 1933 Act and applicable state securities laws, (iv) at or before the time
      the Company receives the written notice contemplated by clause (ii) of this
      sentence, the transferee or assignee agrees in writing with the Company to
      be
      bound by all of the provisions contained herein, (v) such transfer shall have
      been made in accordance with the applicable requirements of the Securities
      Purchase Agreement, and (vi) such transferee shall be an “accredited
      investor”
as
      that
      term defined in Rule 501 of Regulation D promulgated under the 1933
      Act.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    10. AMENDMENT
      OF REGISTRATION RIGHTS. 

     

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with written consent of the Company, each of the Initial
      Investors (to the extent such Initial Investor still owns Registrable
      Securities) and Investors who hold a majority interest of the Registrable
      Securities. Any amendment or waiver effected in accordance with this Section
      10
      shall be binding upon each Investor and the Company.

     

    11. MISCELLANEOUS.

     

    a. A
      person
      or entity is deemed to be a holder of Registrable Securities whenever such
      person or entity owns of record such Registrable Securities. If the Company
      receives conflicting instructions, notices or elections from two or more persons
      or entities with respect to the same Registrable Securities, the Company shall
      act upon the basis of instructions, notice or election received from the
      registered owner of such Registrable Securities.

     

    b. Any
      notices required or permitted to be given under the terms hereof shall be sent
      by certified or registered mail (return receipt requested) or delivered
      personally or by courier (including a recognized overnight delivery service)
      or
      by facsimile and shall be effective five days after being placed in the mail,
      if
      mailed by regular United States mail, or upon receipt, if delivered personally
      or by courier (including a recognized overnight delivery service) or by
      facsimile, in each case addressed to a party. The addresses for such
      communications shall be:

     

    If
      to the
      Company:

     

    Innofone.com,
      Inc.

    3470
      Olney-Laytonsville Road, Suite 118

    Olney,
      MD
      20832

    Attention:
      Chief Executive Officer

    Telephone:
      (301) 774-6913

    Facsimile:

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    With
      a
      copy to:

     

    Gersten,
      Savage, Kaplowitz, Wolf & Marcus, LLP

    600
      Lexington Avenue

    New
      York,
      New York 10022

    Attention:
      Arthur S. Marcus, Esq.

    Telephone:
      (212) 752-9700

    Facsimile:
      (212) 980-5192

     

    If
      to an
      Investor: to the address set forth immediately below such Investor’s name on the
      signature pages to the Securities Purchase Agreement. 

     

    With
      a
      copy to:

     

    Ballard
      Spahr Andrews & Ingersoll, LLP

    1735
      Market Street

    51st
      Floor

    Philadelphia,
      Pennsylvania 19103

    Attention:
      Gerald J. Guarcini, Esq.

    Telephone:
      215-865-8625

    Facsimile:
      215-864-8999

     

    c. Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    d. 
      THIS
      AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
      LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
      UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH RESPECT TO ANY
      DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION
      HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
      IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
      SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
      UPON
      A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
      SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
      SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
      BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
      SUIT
      OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
      BY
      SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT
      PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR
      ALL
      FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY
      IN CONNECTION WITH SUCH DISPUTE.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    e. In
      the
      event that any provision of this Agreement is invalid or unenforceable under
      any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any provision hereof
      which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision hereof.

     

    f. This
      Agreement, the Notes, the Warrants and the Securities Purchase Agreement
      (including all schedules and exhibits thereto) constitute the entire agreement
      among the parties hereto with respect to the subject matter hereof and thereof.
      There are no restrictions, promises, warranties or undertakings, other than
      those set forth or referred to herein and therein. This Agreement and the
      Securities Purchase Agreement supersede all prior agreements and understandings
      among the parties hereto with respect to the subject matter hereof and
      thereof.

     

    g. Subject
      to the requirements of Section 9 hereof, this Agreement shall be binding upon
      and inure to the benefit of the parties and their successors and
      assigns.

     

    h. The
      headings in this Agreement are for convenience of reference only and shall
      not
      form part of, or affect the interpretation of, this Agreement.

     

    i. This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement
      and shall become effective when counterparts have been signed by each party
      and
      delivered to the other party. This Agreement, once executed by a party, may
      be
      delivered to the other party hereto by facsimile transmission of a copy of
      this
      Agreement bearing the signature of the party so delivering this
      Agreement.

     

    j. Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    k. Except
      as
      otherwise provided herein, all consents and other determinations to be made
      by
      the Investors pursuant to this Agreement shall be made by Investors holding
      a
      majority of the Registrable Securities, determined as if the all of the Notes
      then outstanding have been converted into for Registrable
      Securities.

     

    l. The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to each Investor by vitiating the intent and purpose of the
      transactions contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for breach of its obligations under this Agreement will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of any of the provisions under this Agreement, that each Investor shall
      be entitled, in addition to all other available remedies in law or in equity,
      and in addition to the penalties assessable herein, to an injunction or
      injunctions restraining, preventing or curing any breach of this Agreement
      and
      to enforce specifically the terms and provisions hereof, without the necessity
      of showing economic loss and without any bond or other security being
      required.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    m. The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company and the undersigned Initial Investors have caused this Agreement to
      be
      duly executed as of the date first above written.

     

    
      	
              INNOFONE.COM,
                INC.

            
	 
	
              Alex
                Lightman

            
	
              Chief
                Executive Officer

            
	 
	
              AJW
                PARTNERS, LLC

            
	
              By:
                SMS Group, LLC

            
	 
	
              Corey
                S. Ribotsky

            
	
              Manager
                

            
	 
	
              AJW
                MASTER FUND, LTD.

            
	
              By:
                First Street Manager II, LLC

            
	 
	
              Corey
                S. Ribotsky

            
	
              Manager

            
	 
	
              NEW MILLENNIUM CAPITAL PARTNERS, II, LLC

            
	
              By:
                First Street Manager II, LLC

            
	 
	
              Corey
                S. Ribotsky

            
	
              Manager

            

    

    
      
         

      

      
        19

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