Document:

EXHIBIT
        4.4

       

      

       

      CONVERTIBLE
        PREFERRED STOCK PURCHASE AGREEMENT

       

      Between

       

      MARKET
        CENTRAL, INC.

       

      and

       

      THE
        PURCHASER(S) LISTED ON SCHEDULE 1 HERETO

       

      

       

      March
        25, 2004

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
        OF CONTENTS

       

      
        
          	
                   

                  Article
                    I CERTAIN DEFINITIONS

                   

                	
                   

                  1

                
	
                  1.1

                	
                  Certain
                    Definitions

                	
                  1

                
	
                   

                  ARTICLE
                    II PURCHASE AND SALE OF CONVERTIBLE PREFERRED SHARES

                   

                	
                   

                  4

                
	
                  2.1

                	
                  Purchase
                    and Sale: Purchase Price.

                	
                  4

                
	
                  2.2

                	
                  Execution
                    and Delivery of Documents: The Closing.

                	
                  5

                
	
                   

                  ARTICLE
                    III REPRESENTATIONS AND WARRANTIES

                   

                	
                   

                  6

                
	
                  3.1

                	
                  Representations

                	
                  6

                
	
                  3.2

                	
                  Representations
                    and Warranties of the Purchaser

                	
                  10

                
	
                   

                  ARTICLE
                    IV OTHER AGREEMENTS OF THE PARTIES

                   

                	
                   

                  13

                
	
                  4.1

                	
                  Manner
                    of Offering

                	
                  13

                
	
                  4.2

                	
                  Notice
                    of Certain Events

                	
                  13

                
	
                  4.3

                	
                  Blue
                    Sky Laws

                	
                  13

                
	
                  4.4

                	
                  Integration

                	
                  13

                
	
                  4.5

                	
                  Furnishing
                    of Rule 144(c) Materials

                	
                  14

                
	
                  4.6

                	
                  Solicitation
                    Materials

                	
                  14

                
	
                  4.7

                	
                  Listing
                    of Common Stock

                	
                  14

                
	
                  4.8

                	
                  Attorney-in-Fact

                	
                  14

                
	
                  4.9

                	
                  Indemnification

                	
                  14

                
	
                  4.10

                	
                  Notice
                    and Consultation Before Securities Issuances

                	
                  16

                
	
                  4.11

                	
                  Purchaser’s
                    Ownership of Common Stock

                	
                  17

                
	
                  4.12

                	
                  No
                    Violation of Applicable Law

                	
                  17

                
	
                  4.13

                	
                  Redemption
                    Restrictions

                	
                  17

                
	
                  4.14

                	
                  Option
                    for Additional Company Shares

                	
                  18

                
	
                  4.15

                	
                  Lock-Up
                    Agreement

                	
                  18

                
	
                  4.16

                	
                  Use
                    of Proceeds

                	
                  18

                
	
                   

                  ARTICLE
                    V MISCELLANEOUS

                   

                	
                   

                  18

                
	
                  5.1

                	
                  Fees
                    and Expenses

                	
                  18

                
	
                  5.2

                	
                  Entire
                    Agreement

                	
                  19

                
	
                  5.3

                	
                  Notices

                	
                  19

                
	
                  5.4

                	
                  Amendments;
                    Waivers

                	
                  20

                
	
                  5.5

                	
                  Headings

                	
                  20

                
	
                  5.6

                	
                  No
                    Third Party Beneficiaries

                	
                  20

                
	
                  5.7

                	
                  Governing
                    Law/Venue/Service of Process

                	
                  20

                
	
                  5.8

                	
                  Survival

                	
                  20

                
	
                  5.9

                	
                  Counterpart
                    Signatures

                	
                  20

                
	
                  5.10

                	
                  Publicity

                	
                  20

                
	
                  5.11

                	
                  Severability

                	
                  21

                
	
                  5.12

                	
                  Limitation
                    of Remedies

                	
                  21

                
	
                  5.13

                	
                  Successors
                    and Assigns

                	
                  21

                
	
                  5.14

                	
                  Legal
                    Fees and Interest Default Rate

                	
                  21

                

        

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      THIS
        CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT (this “Agreement”) is made and
        entered into as of March __,2004, between Market Central, Inc., a corporation
        organized and existing under the laws of the State of Delaware (the “Company”),
        and the purchaser(s) listed on Schedule
        1
        hereto
        (the “Purchaser”).

       

      WHEREAS,
        subject to the terms and conditions set forth in this Agreement, the Company
        desires to issue and sell to the Purchaser and the Purchaser desires to acquire
        from the Company three hundred fifty thousand (350,000) shares of the Company’s
        Series B Convertible Preferred Stock, $.001 par value per share (the “Series B
        Preferred Stock”), with a Stated Value of ten dollars ($10) per share, and an
        aggregate Stated Value of three million five hundred thousand dollars
        ($3,500,000), for an aggregate purchase price of three million five hundred
        thousand dollars ($3,5000,000).

       

      IN
        CONSIDERATION of the mutual covenants contained in this Agreement, the Company
        and each Purchaser agree as follows:

       

      ARTICLE
        I

       

      CERTAIN
        DEFINITIONS

       

      1.1  Certain
        Definitions.
        As used
        in this Agreement, and unless the context requires a different meaning, the
        following terms have the meanings indicated:

       

      “Affiliate”
        means,
        with respect to any Person, any Person that, directly or indirectly, controls,
        is controlled by or is under common control with such Person. For the purposes
        of this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”) shall mean the possession,
        directly or indirectly, of the power to direct or cause the direction of
        the
        management and policies of such Person, whether through the ownership of
        voting
        securities or by contract or otherwise.

       

      “Agreement”
        shall
        have the meaning set forth in the introductory paragraph of this
        Agreement.

       

      “Armadillo
        Shares”
        means of
        the
        Ordinary Shares of Armadillo Investments, Plc.

       

      “Attorney-in-Fact”
        means
        Gottbetter & Partners, LLP, 488 Madison Avenue, 12 Floor, New York, NY
        10022; Tel: 212-400-6900; Fax: 212-400-6901.

       

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

       

      “Certificate
        of Designation”
        means
        the Certificate of Designation of the Series B Preferred Stock annexed as
        Exhibit A hereto.

       

      “Chance
        of Control”
        means
        the acquisition, directly or indirectly, by any Person of ownership of, or
        the
        power to direct the exercise of voting power with respect to, a majority
        of the
        issued and outstanding voting shares of the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Closing”
        shall
        have the meaning set forth in Section 2.2 a.

       

      “Closing
        Date”
        shall
        have the meaning set forth in Section 2.2 a.

       

      “Common
        Stock”
        means
        shares now or hereafter authorized of the class of common stock, $___ par
        value,
        of the Company and stock of any other class into which such shares may hereafter
        have been reclassified or changed.

       

      “Company”
        shall
        have the meaning set forth in the introductory paragraph.

       

      “Control
        Person”
        shall
        have the meaning set forth in Section 4.11 (a) hereof.

       

      “Conversion
        Date”
        shall
        have the meaning set forth in the Certificate of Designation.

       

      “Conversion
        Price”
        shall
        have the meaning set forth in the Certificate of Designation.

       

      “Default”
        means
        any event or condition which constitutes an Event of Default or which with
        the
        giving of notice or lapse of time or both would, unless cured or waived,
        become
        an Event of Default.

       

      “Disclosure
        Documents”
        means
        the Company’s reports filed under the Exchange Act with the SEC.

       

      “Escrow
        Agent”
        means
        Gottbetter & Partners, LLP, 488 Madison Avenue, 12 Floor, New York, NY
        10022; Tel: 212-400-6900; Fax: 212-400-6901.

       

      “Escrow
        Agreement”
        means
        the Escrow Agreement in the form of Exhibit M annexed hereto.

       

      “Event
        of Default”
        shall
        have the meaning set forth in Section 5.

       

      “Exchange
        Act”
        means
        the Securities Exchange Act of 1934, as amended. “Execution Date” means the date
        of this Agreement first written above. “Indemnified Party” shall have the
        meaning set forth in Section 4.11 b hereof. “Indemnifying Party” shall have the
        meaning set forth in Section 4.11 b hereof. “G&P” means Gottbetter &
        Partners, LLP.

       

      “Limitation
        on Conversion”
        shall
        have the meaning set forth in Section 4.11 hereof.

       

      “Losses”
        shall
        have the meaning set forth in Section 4.11 a hereof.

       

      “Material”
        shall mean having a financial consequence in excess of $25,000.

       

      “Material
        Adverse Effect”
        shall
        have the meaning set forth in Section 3.1(a).

       

      “NASD”
        means
        the National Association of Securities Dealers, Inc.

       

      “NASDAQ”
        shall
        mean the NASDAQ Stock Market, Inc.

       

      
        
          
          

        

        
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      “Original
        Issue Date”
        shall
        have the meaning set forth in the Certificate of Designation. “OTCBB” shall mean
        the NASD over-the counter Bulletin Board.

       

      “Per
        Share Market Value”
        of the
        Common Stock means on any particular date (a) the last sale price of shares
        of
        Common Stock on such date or, if no such sale takes place on such date, the
        last
        sale price on the most recent prior date, in each case as officially reported
        on
        the principal national securities exchange on which the Common Stock is then
        listed or admitted to trading, or (b) if the Common Stock is not then listed
        or
        admitted to trading on any national securities exchange, the closing bid
        price
        per share as reported by Nasdaq, or (c) if the Common Stock is not then listed
        or admitted to trading on the Nasdaq, the closing bid price per share of
        the
        Common Stock on such date as reported on the OTCBB or if there is no such
        price
        on such date, then the last bid price on the date nearest preceding such
        date,
        or (d) if the Common Stock is not quoted on the OTCBB, the closing bid price
        for
        a share of Common Stock on such date in the over-the-counter market as reported
        by the Pinksheets LLC (or similar organization or agency succeeding to its
        functions of reporting prices) or if there is no such price on such date,
        then
        the last bid price on the date nearest preceding such date, or (e) if the
        Common
        Stock is no longer publicly traded, the fair market value of a share of the
        Common Stock as determined by an Appraiser (as defined in the Certificate
        of
        Designation) selected in good faith by the holders of a majority of the Series
        B
        Preferred Stock; provided, however, that the Company, after receipt of the
        determination by such Appraiser, shall have the right to select an additional
        Appraiser, in which case, the fair market value shall be equal to the average
        of
        the determinations by each such Appraiser.

       

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

       

      “Power
        of Attorney”
        means
        the power of attorney in the form of Exhibit G annexed hereto.

       

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

       

      “Purchase
        Price”
        shall
        have the meaning set forth in Section 2.1(b).

       

      “Purchaser”
        shall
        have the meaning set forth in the introductory paragraph.

       

      “Redemption
        Price”
        shall
        mean an amount equal to the Stated Value of the Shares outstanding that are
        subject to redemption.

       

      “Registration
        Rights Agreement”
        means
        the Registration Rights Agreement in the form of Exhibit J annexed
        hereto.

       

      “Reporting
        Issuer”
        means a
        company that is subject to the reporting requirements of Section 13 or 15(d)
        of
        the Exchange Act.

       

      “Required
        Approvals”
        shall
        have the meaning set forth in Section 3.1(f).

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “Securities”
        means
        the Shares, the Underlying Shares and the Option Shares.

       

      “SEC”
        means
        the Securities and Exchange Commission.

       

      “Securities
        Act”
        means
        the Securities Act of 1933, as amended.

       

      “Series
        B Preferred Stock”
        shall
        have the meaning set forth in the recital.

       

      “Shares”
        shall
        have the meaning set forth in Section 2.1(a).

       

      “Stated
        Value”
        means
        the sum of ten dollars ($10) per Share or three million five hundred thousand
        ($3,500,000) for all of the Shares.

       

      “Subsidiaries”
        shall
        have the meaning set forth in Section 3.1(a).

       

      “Trading
        Day”
        means
        (a) a day on which the Common Stock is quoted on Nasdaq, the OTCBB or the
        principal stock exchange on which the Common Stock has been listed, or (b)
        if
        the Common Stock is not quoted on Nasdaq, the OTCBB or any stock exchange,
        a day
        on which the Common Stock is quoted in the over-the-counter market, as reported
        by the Pinksheets LLC (or any similar organization or agency succeeding its
        functions of reporting prices).

       

      “Transaction
        Documents”
        means
        this Agreement and all exhibits and schedules hereto and all other documents,
        instruments and writings required pursuant to this Agreement.

       

      “Underlying
        Shares”
        means
        the shares of the Company’s Common Stock into which the Shares are convertible
        as provided in the Certificate of Designation.

       

      ARTICLE
        II

       

      PURCHASE
        AND SALE OF CONVERTIBLE PREFERRED SHARES

       

      2.1  Purchase
        and Sale:
        Purchase Price. 

       

      (a)  Subject
        to the terms and conditions set forth herein, the Company shall issue and
        sell
        and the Purchaser shall purchase three hundred fifty thousand (350,000) shares
        of the Company’s Series B 0 % Convertible Preferred Stock, $.001 par value per
        share (the “Shares”). The Series B Preferred Stock shall have the respective
        rights, preferences and privileges as set forth in the Certificate of
        Designation to be filed by the Company with the Secretary of State of Delaware
        prior to the Execution Date.

       

      (b)  The
        purchase price for each Share shall be Ten Dollars ($10) (the “Per Share
        Consideration”). The Per Share Consideration multiplied by the number of Shares
        to be purchased by the Purchaser is referred to as the “Purchase
        Price.”

       

      (c)  The
        Purchase Price shall be paid by delivery to the Company of _______________
        Ordinary Shares (the “Armadillo Shares”) of Armadillo Investments, Plc. The
        number of Ordinary Shares to be issued will be based on the conversion rate
        in
        effect as of the close of business on the day preceding the closing of the
        transaction. For example, if the effective conversion rate is $1 .85/i 1,
        then
        Armadillo will issue $3,5000,000/$1.85, or 1,891,892 Ordinary
        Shares.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (d)  Notwithstanding
        anything to the contrary contained in this Agreement, the Company’s obligations
        hereunder shall be expressly contingent upon the Company selling the Armadillo
        Shares to a purchaser to be located by Purchaser simultaneously with receipt
        of
        the Armadillo Shares for a price not less than £ .50 per share.

       

      2.2  Execution
        and Delivery of Documents: The Closing. 

       

      (a)  The
        Closing of the purchase and sale of the Shares (the “Closing”) shall take place
        simultaneously with the execution and delivery of this Agreement (the “Closing
        Date”). On the Closing Date,

       

      (i)  the
        Company shall execute and deliver to the Purchaser the certificates representing
        the Shares, which Shares shall have the respective rights, preferences and
        privileges as set forth in the Certificate of Designation annexed as Exhibit
        A
        hereto and the Power of Attorney;

       

      (ii)  the
        Company shall execute and deliver to the Purchaser a certificate of its
        President, in the form of Exhibit I annexed hereto, certifying that attached
        thereto is a copy of resolutions duly adopted by the Board of Directors of
        the
        Company authorizing the Company to execute and deliver the Transaction Documents
        and to enter into the transactions contemplated thereby;

       

      (iii)  the
        Company shall execute and deliver to Purchaser an executed Power of Attorney
        in
        the form annexed hereto as Exhibit G;

       

      (iv)  the
        Company and the Purchaser shall execute and deliver to each other an executed
        Registration Rights Agreement in the form annexed hereto as
        Exhibit;

       

      (v)  counsel
        for the Company shall execute and deliver to the Purchaser an executed copy
        of
        the opinion of counsel annexed hereto as Exhibit K;

       

      (vi)  the
        Company, the Escrow Agent and the Purchaser shall execute and deliver to
        each
        other an executed Escrow Agreement in the form annexed hereto as Exhibit
        M and
        the certificates representing the Escrow Shares as defined in the Escrow
        Agreement;

       

      (vii)  the
        Purchaser shall deliver to the Company the Armadillo Shares.

       

      (b)  Notwithstanding
        the foregoing, at Closing, the Company shall deliver to the Escrow Agent
        a
        certificate representing the Shares (the “Closing Stock Certificate”), that
        shall be held by the Escrow Agent upon the terms and conditions set forth
        in the
        Escrow Agreement, and that shall bear the following legends:

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (1)
        THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN
        AN
“OFFSHORE TRANSACTION” IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE
        SECURITIES AND EXCHANGE COMMISSION AND IN ACCORDANCE WITH SECTION 4(2) OF
        THE
        SECURITIES ACT OF 1933 (THE “SECURITIES ACT”). ACCORDINGLY, THE SECURITIES
        REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT OF 1933 AND MAY NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH REGULATION
        5, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN
        AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, THE AVAILABILITY
        OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

       

      (2)
        ADDITIONALLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD
        OR
        OTHERWISE TRANSFERRED UNLESS AND UNTIL THE COMPANY SELLS THE ARMADILLO SHARES
        (AS DEFINED IN THE CONVERTIBLE STOCK PURCHASE AGREEMENT DATED AS OF MARCH
        2004
        BETWEEN THE COMPANY AND JUBILEE INVESTMENT TRUST PLC) AND PURCHASE PRICE
        FOR
        SUCH SHARES OF NOT LESS THAN FIFTY PERCENT(50%) of £1.00 PER SHARE, LESS
        BROKERAGE COMMISSIONS.

       

      Promptly
        after the Company sells the Armadillo Shares and receives a purchase price
        for
        the Armadillo Shares of not less than fifty percent (50%) of £1.00 for each
        Armadillo Share, less brokerage commissions, the Company shall issue to the
        Escrow Agent a certificate representing the Shares that bears only paragraph
        (1)
        above as a legend (the “Final Stock Certificate”), in exchange for the Closing
        Stock Certificate in the manner provided in the Escrow Agreement. In the
        event
        that the Company is unable to sell the Armadillo Shares within ten (10) days
        of
        the Closing in the manner described in the previous sentence, the Company
        shall
        return the certificate for the Armadillo Shares to Purchaser, and the Escrow
        Agent shall return the Closing Stock Certificate to the Company.

       

      ARTICLE
        III

       

      REPRESENTATIONS
        AND WARRANTIES 

       

      3.1  Representations.
        Warranties and Agreements of the Company. The Company hereby makes the following
        representations and warranties to the Purchaser, all of which shall survive
        the
        Closing:

       

      (a)  Organization
        and Qualification.
        The
        Company is a corporation, duly incorporated, validly existing and in good
        standing under the laws of the State of Nevada, with the requisite corporate
        power and authority to own and use its properties and assets and to carry
        on its
        business as currently conducted. The Company has no subsidiaries other than
        as
        set forth on Schedule 3.1(a) attached hereto (collectively, the “Subsidiaries”).
        Each of the Subsidiaries is a corporation, duly incorporated, validly existing
        and in good standing under the laws of the jurisdiction of its incorporation,
        with the full corporate power and authority to own and use its properties
        and
        assets and to carry on its business as currently conducted. Each of the Company
        and the Subsidiaries is duly qualified to do business and is in good standing
        as
        a foreign corporation in each jurisdiction in which the nature of the business
        conducted or property owned by it makes such qualification necessary, except
        where the failure to be so qualified or in good standing, as the case may
        be,
        would not, individually or in the aggregate, have a material adverse effect
        on
        the results of operations, assets, or financial condition of the Company
        and the
        Subsidiaries, taken as a whole (a “Material Adverse Effect”).

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (b)  Authorization,
        Enforcement.
        The
        Company has the requisite corporate power and authority to enter into and
        to
        consummate the transactions contemplated hereby and by each other Transaction
        Document and to otherwise to carry out its obligations hereunder and thereunder.
        The execution and delivery of this Agreement and each of the other Transaction
        Documents by the Company and the consummation by it of the transactions
        contemplated hereby and thereby has been duly authorized by all necessary
        action
        on the part of the Company. Each of this Agreement and each of the other
        Transaction Documents has been or will be duly executed by the Company and
        when
        delivered in accordance with the terms hereof or thereof will constitute
        the
        valid and binding obligation of the Company enforceable against the Company
        in
        accordance with its terms, except as such enforceability may be limited by
        applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
        or
        similar laws relating to, or affecting generally the enforcement of, creditors’
        rights and remedies or by other equitable principles of general
        application.

       

      (c)  Capitalization.
        The
        authorized, issued and outstanding capital stock of the Company is set forth
        on
        Schedule 3.1(c). No shares of the Series B Preferred Stock have been issued
        as
        of the date hereof. No shares of Common Stock are entitled to preemptive
        or
        similar rights, nor is any holder of the Common Stock entitled to preemptive
        or
        similar rights arising out of any agreement or understanding with the Company
        by
        virtue of this Agreement. Except as disclosed in Schedule 3.1(c), there are
        no
        outstanding options, warrants, script, rights to subscribe to, registration
        rights, calls or commitments of any character whatsoever relating to, or,
        except
        as a result of the purchase and sale of the Series B Preferred Stock hereunder,
        securities, rights or obligations convertible into or exchangeable for, or
        giving any person any right to subscribe for or acquire, any shares of Common
        Stock, or contracts, commitments, understandings, or arrangements by which
        the
        Company or any Subsidiary is or may become bound to issue additional shares
        of
        Common Stock, or securities or rights convertible or exchangeable into shares
        of
        Common Stock. Neither the Company nor any Subsidiary is in violation of any
        of
        the provisions of its Certificate of Incorporation, bylaws or other charter
        documents.

       

      (d)  Issuance
        of Securities.
        The
        Shares have been duly and validly authorized for issuance, offer and sale
        pursuant to this Agreement and, when issued and delivered as provided hereunder
        against payment in accordance with the terms hereof, shall be valid and binding
        obligations of the Company enforceable in accordance with their respective
        terms. The Company has and at all times while the Shares are outstanding
        will
        continue to maintain an adequate reserve of shares of Common Stock to enable
        it
        to perform its obligations under this Agreement and the Certificate of
        Designation. When issued in accordance with the terms hereof, the Underlying
        Shares and the Option Shares will be duly authorized, validly issued, fully
        paid
        and non-assessable. Except as set forth in Schedule 3.1(d) hereto, there
        is no
        equity or equity equivalent security outstanding that is substantially similar
        to the Shares, including any security having a floating conversion price
        substantially similar to the Shares.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (e)  No
        Conflicts.
        The
        execution, delivery and performance of this Agreement and the other Transaction
        Documents by the Company and the consummation by the Company of the transactions
        contemplated hereby and thereby do not and will not (i) conflict with or
        violate
        any provision of its Certificate of Incorporation or bylaws (each as amended
        through the date hereof) or (ii) be subject to obtaining any consents except
        those referred to in Section 3.1(f), conflict with, or constitute a default
        (or
        an event which with notice or lapse of time or both would become a default)
        under, or give to others any rights of termination, amendment, acceleration
        or
        cancellation of, any agreement, indenture or instrument to which the Company
        is
        a party, or (iii) result in a violation of any law, rule, regulation, order,
        judgment, injunction, decree or other restriction of any court or governmental
        authority to which the Company or its Subsidiaries is subject (including,
        but
        not limited to, those of other countries and the federal and state securities
        laws and regulations), or by which any property or asset of the Company or
        its
        Subsidiaries is bound or affected, except in the case of clause (ii), such
        conflicts, defaults, terminations, amendments, accelerations, cancellations
        and
        violations as would not, individually or in the aggregate, have a Material
        Adverse Effect. The business of the Company and its Subsidiaries is not being
        conducted in violation of any law, ordinance or regulation of any governmental
        authority.

       

      (f)  Consents
        and Approvals.
        Except
        as specifically set forth in Schedule 3.1(f), neither the Company nor any
        Subsidiary is required to obtain any consent, waiver, authorization or order
        of,
        or make any filing or registration with, any court or other federal, state,
        local or other governmental authority or other Person in connection with
        the
        execution, delivery and performance by the Company of this Agreement and
        each of
        the other Transaction Documents, except for the filing of the Certificate
        of
        Designation with respect to the Series B Preferred Stock with the Secretary
        of
        State of the State of Nevada, which filing shall be effected prior to the
        Closing Date (together with the consents, waivers, authorizations, orders,
        notices and filings referred to in Schedule 3.1(0, the “Required
        Approvals”).

       

      (g)  Litigation
        Proceedings.
        Except
        as specifically disclosed in Schedule 3.1(g), there is no action, suit, notice
        of violation, proceeding or investigation pending or, to the best knowledge
        of
        the Company, threatened against or affecting the Company or any of its
        Subsidiaries or any of their respective properties before or by any court,
        governmental or administrative agency or regulatory authority (federal, state,
        county, local or foreign) which (i) relates to or challenges the legality,
        validity or enforceability of any of the Transaction Documents, the Shares
        or
        the Underlying Shares, (ii) could, individually or in the aggregate, have
        a
        Material Adverse Effect or (iii) could, individually or in the aggregate,
        materially impair the ability of the Company to perform fully on a timely
        basis
        its obligations under the Transaction Documents.

       

      (h)  No
        Default or Violation.
        Except
        as set forth in Schedule 3.1(h) hereto, neither the Company nor any Subsidiary
        (i) is in default under or in violation of any indenture, loan or credit
        agreement or any other agreement or instrument to which it is a party or
        by
        which it or any of its properties is bound, except such conflicts or defaults
        as
        do not have a Material Adverse Effect, (ii) is in violation of any order
        of any
        court, arbitrator or governmental body, except for such violations as do
        not
        have a Material Adverse Effect, or (iii) is in violation of any statute,
        rule or
        regulation of any governmental authority which could (individually or in
        the
        aggregate) (x) adversely affect the legality, validity or enforceability
        of this
        Agreement, (y) have a Material Adverse Effect or (z) adversely impair the
        Company’s ability or obligation to perform fully on a timely basis its
        obligations under this Agreement.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (i)  Intentionally
        omitted.

       

      (j)  Disclosure
        Documents.
        The
        Disclosure Documents are accurate in all material respects and do not contain
        any untrue statement of material fact or omit to state any material fact
        necessary in order to make the statements made therein, in light of the
        circumstances under which they were made, not misleading.

       

      (k)  Non-Registered
        Offering.
        Neither
        the Company nor any Person acting on its behalf has taken or will take any
        action (including, without limitation, any offering of any securities of
        the
        Company under circumstances which would require the integration of such offering
        with the offering of the Securities under the Securities Act) which might
        subject the offering, issuance or sale of the Securities to the registration
        requirements of Section 5 of the Securities Act.

       

      (l)  Placing
        Agent.
        The
        Company accepts and agrees that Dungarvon Associates, Inc. (“Dungarvon”) is
        acting for the Purchaser and does not regard any person other than the Purchaser
        as its customer in relation to this Agreement, and that it has not made any
        recommendation to the Company, in relation to this Agreement and is not advising
        the Company, with regard to the suitability or merits of the Armadillo Shares
        and in particular Dungarvon has no duties or responsibilities to the Company
        for
        the best execution of the transaction contemplated by this
        Agreement.

       

      (m)  Private
        Placement Representations.
        The
        Company (i) has received and carefully reviewed such information and
        documentation relating to the Purchaser that the Company has requested,
        including, without limitation, the Purchaser’s Confidential Private Offering
        Memorandum dated January 1, 2004; (ii) has had a reasonable opportunity to
        ask
        questions of and receive answers from the Purchaser concerning the Armadillo
        Shares, and all such questions, if any, have been answered to the full
        satisfaction of the Company; (iii) has such knowledge and expertise in financial
        and business matters that it is capable of evaluating the merits and risks
        involved in an investment in the Armadillo Shares; (iii) understands that
        Armadillo has determined that the exemption from the registration provisions
        of
        the Securities Act of 1933, as amended (the “Securities Act”), provided by
        Section 4(2) of the Securities Act and Rule 506 of Regulation D thereunder
        is
        applicable to the offer and sale of the Armadillo Shares, based, in part,
        upon
        the representations, warranties and agreements made by the Company herein;
        and
        (iv) except as set forth herein, no representations or warranties have been
        made
        to the Company by the Purchaser or any agent, employee or affiliate of the
        Purchaser and in entering into this transaction the Company is not relying
        upon
        any information, other than the results of independent investigation by the
        Company.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      The
        Purchaser acknowledges and agrees that the Company makes no representation
        or
        warranty with respect to the transactions contemplated hereby other than
        those
        specifically set forth in Section 3.1 hereof.

       

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

       

      (a)  Organization
        Authority.
        The
        Purchaser is a corporation, duly organized, validly existing and in good
        standing under the laws of the jurisdiction of its formation with the requisite
        power and authority to enter into and to consummate the transactions
        contemplated hereby and by the other Transaction Documents and otherwise
        to
        carry out its obligations hereunder and thereunder. The acquisition of the
        Shares to be purchased by the Purchaser hereunder has been duly authorized
        by
        all necessary action on the part of the Purchaser. This Agreement has been
        duly
        executed and delivered by the Purchaser and constitutes the valid and legally
        binding obligation of the Purchaser, enforceable against it in accordance
        with
        its terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium or similar laws relating
        to,
        or affecting generally the enforcement of, creditors rights and remedies
        or by
        other general principles of equity.

       

      (b)  Investment
        Intent.
        The
        Purchaser is acquiring the Shares to be purchased by it hereunder, and will
        acquire the Underlying Shares relating to such Shares, and the Option Shares
        for
        its own account for investment purposes only and not with a view to or for
        distributing or reselling such Shares, Underlying Shares or Option Shares,
        or
        any part thereof or interest therein, without prejudice, however, to such
        Purchaser’s right, subject to the provisions of this Agreement, at all times to
        sell or otherwise dispose of all or any part of such Shares, Underlying Shares
        or Option Shares in compliance with applicable federal and state securities
        laws.

       

      (c)  Experience
        of Purchaser.
        The
        Purchaser, either alone or together with its representatives, has such
        knowledge, sophistication and experience in business and financial matters
        so as
        to be capable of evaluating the merits and risks of an investment in the
        Securities to be acquired by it hereunder, and has so evaluated the merits
        and
        risks of such investment.

       

      (d)  Ability
        of Purchaser to Bear Risk of Investment.
        The
        Purchaser is able to bear the economic risk of an investment in the Securities
        to be acquired by it hereunder and, at the present time, is able to afford
        a
        complete loss of such investment.

       

      (e)  Access
        to Information.
        The
        Purchaser acknowledges that it has been afforded (i) the opportunity to ask
        such
        questions as it has deemed necessary of, and to receive answers from,
        representatives of the Company concerning the terms and conditions of the
        Securities offered hereunder and the merits and risks of investing in such
        securities; (ii) access to information about the Company and the Company’s
        financial condition, results of operations, business, properties, management
        and
        prospects sufficient to enable it to evaluate its investment in the Securities;
        and (iii) the opportunity to obtain such additional information which the
        Company possesses or can acquire without unreasonable effort or expense that
        is
        necessary to make an informed investment decision with respect to the investment
        and to verify the accuracy and completeness of the information that it has
        received about the Company.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (f)  Reliance.
        The
        Purchaser understands and acknowledges that (i) the Shares, Underlying Shares
        and Option Shares being offered and sold to it hereunder are being offered
        and
        sold without registration under the Securities Act in a private placement
        that
        is exempt from the registration provisions of the Securities Act under Section
        4(2) of the Securities Act and (ii) the availability of such exemption depends
        in part on, and that the Company will rely upon the accuracy and truthfulness
        of, the foregoing representations and such Purchaser hereby consents to such
        reliance.

       

      (g)  Regulation
        S.
        

       

      (i)  The
        Purchaser understands and acknowledges that (A) the Shares acquired pursuant
        to
        this Agreement have not been registered under the Securities Act, are being
        sold
        in reliance upon an exemption from registration afforded by Regulation 5;
        and
        that such Shares have not been registered with any state Securities commission
        or authority; (B) pursuant to the requirements of Regulation 5, the Shares
        may
        not be transferred, sold or otherwise exchanged unless in compliance with
        the
        provisions of Regulation S and/or pursuant to registration under the Securities
        Act, or pursuant to an available exemption thereunder; and (C) other than
        as set
        forth in this Agreement between the Company and the Purchaser, the Company
        is
        under no obligation to register the Shares under the Securities Act or any
        state
        securities law, or to take any action to make any exemption from any such
        registration provisions available.

       

      (ii)  (A)
        The
        Purchaser is not a U.S. person and is not acquiring the Shares for the account
        of any U.S. person; (B) if a corporation, it is not organized or incorporated
        under the laws of the United States; (C) if a corporation, no director or
        executive officer is a national or citizen of the United States; and (D)
        it is
        not otherwise deemed to be a “U.S. Person” within the meaning of Regulation
        S.

       

      (iii)  The
        Purchaser, was not formed specifically for the purpose of acquiring the Shares
        purchased pursuant to this Agreement.

       

      (iv)  The
        Purchaser is purchasing the Shares for its own account and risk and not for
        the
        account or benefit of a U.S. Person as defined in Regulation S and no other
        person has any interest in or participation in the Shares or any right, option,
        security interest, pledge or other interest in or to the Shares. The Purchaser
        understands, acknowledges and agrees that it must bear the economic risk
        of its
        investment in the Shares for an indefinite period of time and that prior
        to any
        such offer or sale, the Company may require, as a condition to effecting
        a
        transfer of the Shares, an opinion of counsel, acceptable to the Company,
        as to
        the registration or exemption therefrom under the Shares Act and any state
        Shares acts, if applicable.

       

      (v)  The
        Purchaser will, after the expiration of the Restricted Period, as set forth
        under Regulation S Rule 903(b)(3)(iii)(A), offer, sell, pledge or otherwise
        transfer the Shares only in accordance with Regulation 5, or pursuant to
        an
        available exemption under the Securities Act and, in any case, in accordance
        with applicable state Securities laws. The transactions contemplated by this
        Subscription Agreement have neither been pre-arranged with a purchaser who
        is in
        the United States or who is a U.S. Person, nor are they part of a plan or
        scheme
        to evade the registration provisions of the United States federal securities
        laws.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      (vi)  The
        offer
        leading to the sale evidenced hereby was made in an “offshore transaction.” For
        purposes of Regulation 5, the Purchaser understands that an “offshore
        transaction” as defined under Regulation S is any offer or sale not made to a
        person in the United States and either (A) at the time the buy order is
        originated, the purchaser is outside the United States, or the seller or
        any
        person acting on his behalf reasonably believes that the purchaser is outside
        the United States; or (B) for purposes of (1) Rule 903 of Regulation 5, the
        transaction is executed in, or on or through a physical trading floor of
        an
        established foreign exchange that is located outside the United States or
        (2)
        Rule 904 of Regulation 5, the transaction is executed in, on or through the
        facilities of a designated offshore securities market, and neither the seller
        nor any person acting on its behalf knows that the transaction has been
        prearranged with a buyer in the United States.

       

      (vii)  Neither
        the Purchaser nor any affiliate of the Purchaser or any person acting on
        its
        behalf has made or is aware of any “directed selling efforts” in the United
        States, which is defined in Regulation S to be any activity undertaken for
        the
        purpose of, or that could reasonably be expected to have the effect of,
        conditioning the market in the United States for any of the Shares being
        purchased hereby.

       

      (viii)  The
        Purchaser understands that the Company is the seller of the Shares which
        are the
        subject of this Agreement, and that, for purpose of Regulation 5, a
“distributor” is any underwriter, dealer or other person who participates,
        pursuant to a contractual arrangement, in the distribution of securities
        offered
        or sold in reliance on Regulation S and that an “affiliate” is any partner,
        officer, director or any person directly or indirectly controlling, controlled
        by or under common control with any person in question. The Purchaser agrees
        that it will not, during the Restricted Period set forth under Rule
        903(b)(iii)(A), act as a distributor, either directly or though any affiliate,
        nor shall it sell, transfer, hypothecate or otherwise convey the Shares other
        than to a non-U.S. Person.

       

      (ix)  The
        Purchaser acknowledges that the Shares will bear a legend in substantially
        the
        following form:

       

      THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN
        AN
“OFFSHORE TRANSACTION” IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE
        SECURITIES AND EXCHANGE COMMISSION AND IN ACCORDANCE WITH SECTION 4(2)OF
        THE
        SECURITIES ACT OF 1933 (THE “SECURITIES ACT”).ACCORDINGLY, THE SECURITIES
        REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT OF 1933 AND MAY NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH REGULATION
        5, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN
        AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, THE AVAILABILITY
        OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES
        REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS
        UNLESS SUCH TRANSACTIONS ARE CONDUCTED INCOMPLIANCE WITH THE SECURITIES
        ACT.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (h)  Private
        Placement Memorandum.
        The
        Private Placement Memorandum does not contain any untrue statement of a material
        fact or omit to state a material fact necessary in order to make the statements
        made therein, in light of the circumstances in which they are made, not
        misleading.

       

      The
        Company acknowledges and agrees that the Purchaser makes no representations
        or
        warranties with respect to the transactions contemplated hereby other than
        those
        specifically set forth in this Section 3.2.

       

      ARTICLE
        IV

       

      OTHER
        AGREEMENTS OF THE PARTIES

       

      4.1  Manner
        of Offering.
        The
        Securities are being issued pursuant to section 4(2) of the Securities Act
        and
        Regulation S thereunder. The Armadillo shares are being issued pursuant to
        section 4(2) of the Securities Act.

       

      4.2  Notice
        of Certain Events.
        The
        Company shall, on a continuing basis, (i) advise the Purchaser promptly after
        obtaining knowledge of, and, if requested by the Purchaser, confirm such
        advice
        in writing, of (A) the issuance by any state securities commission of any
        stop
        order suspending the qualification or exemption from qualification of the
        Shares
        or the Underlying Shares, for offering or sale in any jurisdiction, or the
        initiation of any proceeding for such purpose by any state securities commission
        or other regulatory authority (ii) use its best efforts to prevent the issuance
        of any stop order or order suspending the qualification or exemption from
        qualification of the Securities under any state securities or Blue Sky laws,
        and
        (iii) if at any time any state securities commission or other regulatory
        authority shall issue an order suspending the qualification or exemption
        from
        qualification of the Securities under any such laws, and use its best efforts
        to
        obtain the withdrawal or lifting of such order at the earliest possible
        time.

       

      4.3  Blue
        Sky Laws.
        The
        Company shall cooperate with the Purchaser in connection with the exemption
        from
        registration of the Securities under the securities or Blue Sky laws of such
        jurisdictions as the Purchasers may request; provided, however, that neither
        the
        Company nor its Subsidiaries shall be required in connection therewith to
        qualify as a foreign corporation where they are not now so qualified. The
        Company agrees that it will execute all necessary documents and pay all
        necessary state filing or notice fees to enable the Company to sell the
        Securities to the Purchasers.

       

      4.4  Integration.
        The
        Company shall not and shall use its best efforts to ensure that no Affiliate
        shall sell, offer for sale or solicit offers to buy or otherwise negotiate
        in
        respect of any security (as defined in Section 2 of the Securities Act) that
        would be integrated with the offer or sale of the Securities in a manner
        that
        would require the registration under the Securities Act of the sale of the
        Securities to the Purchaser.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      4.5  Furnishing
        of Rule 144(c) Materials.
        The
        Company shall, for so long as any of the Securities remain outstanding and
        during any period in which the Company is no longer subject to Section 13
        or
        15(d) of the Exchange Act, make available to any registered holder of the
        Securities (“Holder” or “Holders”) in connection with any sale thereof and any
        prospective purchaser of such Securities from such Person, such information
        in
        accordance with Rule 144(c) promulgated under the Securities Act as is required
        to sell the Securities under Rule 144 promulgated under the Securities
        Act.

       

      4.6  Solicitation
        Materials.
        The
        Company shall not (i) distribute any offering materials in connection with
        the
        offering and sale of the Shares or Underlying Shares other than the Disclosure
        Documents and any amendments and supplements thereto prepared in compliance
        herewith or (ii) solicit any offer to buy or sell the Shares or Underlying
        Shares by means of any form of general solicitation or advertising.

       

      4.7  Listing
        of Common Stock.
        If the
        Common Stock is or shall become listed on the OTCBB or on another exchange,
        the
        Company shall (a) use its best efforts to maintain the listing of its Common
        Stock on the OTCBB or such other exchange on which the Common Stock is then
        listed until expiration of the periods during which the Shares may be converted
        and (b) shall provide to the Purchaser evidence of such listing.

       

      4.8  Attorney-in-Fact.
        For the
        sole purpose of effectuating the terms and provisions of this Agreement and
        the
        Certificate of Designation, the Company hereby agrees to give a power of
        attorney to G&P as is evidenced by Exhibit G annexed hereto. All acts done
        under such power of attorney are hereby ratified and approved and neither
        the
        Attorney-in-Fact nor any designee or agent thereof shall be liable for any
        acts
        of commission or omission, for any error of judgment or for any mistake of
        fact
        or law, as long as the Attorney-in-Fact is operating within the scope of
        the
        power of attorney and this Agreement and its exhibits. The power of attorney,
        being coupled with an interest, shall be irrevocable while any of the Shares
        remain unconverted, or any portion of this Agreement remains unsatisfied.
        In
        addition, the Company shall give the Attorney-in-Fact resolutions executed
        by
        the Board of Directors of the Company which authorize transfers of the Shares
        and future issuances of the Underlying Shares for the Shares, and which
        resolutions state that they are irrevocable while any of the Shares remain
        unconverted, or any portion of this Agreement remains unsatisfied.

       

      4.9  Indemnification. 

       

      (a)  Indemnification:
        

       

      (i)  The
        Company shall, notwithstanding termination of this Agreement and without
        limitation as to time, indemnify and hold harmless the Purchaser and its
        officers, directors, agents, employees and affiliates, each Person who controls
        or the Purchaser (within the meaning of Section 15 of the Securities Act
        or
        Section 20 of the Exchange Act) (each such Person, a “Control Person”) and the
        officers, directors, agents, employees and affiliates of each such Control
        Person, to the fullest extent permitted by applicable law, from and against
        any
        and all losses, claims, damages, liabilities, costs (including, without
        limitation, costs of preparation and attorneys’ fees) and expenses
        (collectively, “Losses”), as incurred, arising out of, or relating to, a breach
        or breaches of any representation, warranty, covenant or agreement by the
        Company under this Agreement or any other Transaction Document.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (ii)  The
        Purchaser shall, notwithstanding termination of this Agreement and without
        limitation as to time, indemnify and hold harmless the Company, its officers,
        directors, agents and employees, each Control Person and the officers,
        directors, agents and employees of each Control Person, to the fullest extent
        permitted by application law, from and against any and all Losses, as incurred,
        arising out of, or relating to, a breach or breaches of any representation,
        warranty, covenant or agreement by the Purchaser under this Agreement or
        the
        other Transaction Documents.

       

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

       

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

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      All
        fees
        and expenses of the Indemnified Party to which the Indemnified Party is entitled
        hereunder (including reasonable fees and expenses to the extent incurred
        in
        connection with investigating or preparing to defend such Proceeding in a
        manner
        not inconsistent with this Section) shall be paid to the Indemnified Party,
        as
        incurred, within ten (10) Business Days of written notice thereof to the
        Indemnifying Party.

       

      No
        right
        of indemnification under this Section shall be available as to a particular
        Indemnified Party if there is a non-appealable final judicial determination
        that
        such Losses arise solely out of the negligence or bad faith of such Indemnified
        Party in performing the obligations of such Indemnified Party under this
        Agreement or a breach by such Indemnified Party of its obligations under
        this
        Agreement.

       

      (c)  Contribution.
        If a
        claim for indemnification under this Section is unavailable to an Indemnified
        Party or is insufficient to hold such Indemnified Party harmless for any
        Losses
        in respect of which this Section would apply by its terms (other than by
        reason
        of exceptions provided in this Section), then each Indemnifying Party, in
        lieu
        of indemnifying such Indemnified Party, shall contribute to the amount paid
        or
        payable by such Indemnified Party as a result of such Losses in such proportion
        as is appropriate to reflect the relative benefits received by the Indemnifying
        Party on the one hand and the Indemnified Party on the other and the relative
        fault of the Indemnifying Party and Indemnified Party in connection with
        the
        actions or omissions that resulted in such Losses as well as any other relevant
        equitable considerations. The relative fault of such Indemnifying Party and
        Indemnified Party shall be determined by reference to, among other things,
        whether there was a judicial determination that such Losses arise in part
        out of
        the negligence or bad faith of the Indemnified Party in performing the
        obligations of such Indemnified Party under this Agreement or the Indemnified
        Party’s breach of its obligations under this Agreement. The amount paid or
        payable by a party as a result of any Losses shall be deemed to include any
        attorneys’ or other fees or expenses incurred by such party in connection with
        any Proceeding to the extent such party would have been indemnified for such
        fees or expenses if the indemnification provided for in this Section was
        available to such party.

       

      (d)  Non-Exclusivity.
        The
        indemnity and contribution agreements contained in this Section are in addition
        to any obligation or liability that the Indemnifying Parties may have to
        the
        Indemnified Parties.

       

      4.10  Notice
        and Consultation Before Securities Issuances.
        Until
        such time as Purchaser shall have sold all of the Shares and the Underlying
        Shares, the Company shall not offer or issue any equity, equity equivalent
        security or debt that with a floating conversion price, or any equity lines
        of
        credit (the “New Securities”), without first giving thirty (30) days notice
        thereof to the Purchaser and thereafter consulting in good faith with the
        Purchaser concerning such issuance. After such consultation between the Company
        and the Purchaser, the Company may offer or sell the New Securities on such
        terms and conditions as the Company deems appropriate. Purchaser shall keep
        all
        information concerning the New Securities confidential and shall not trade
        any
        of the Company’s securities until information about the New Securities is
        publicly disclosed or the Company advises the Purchaser that it has determined
        not to issue the New Securities.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      4.11  Purchaser’s
        Ownership of Common Stock.
        In
        addition to and not in lieu of the limitations on conversion set forth in
        the
        Certificate of Designation, the conversion and exercise rights of the Purchaser
        set forth in the Certificate of Designation shall be limited, solely to the
        extent required, from time to time, such that, unless the Purchaser gives
        written notice seventy five (75) days in advance to the Company of the
        Purchaser’s intention to exceed the Limitation on Conversion as defined herein,
        with respect to all or a specified amount of the Shares and the corresponding
        number of the Underlying Shares, in no instance shall the maximum number
        of
        shares of Common Stock which the Purchaser (singularly, together with any
        Persons who in the determination of the Purchaser, together with the Purchaser,
        constitute a group as defined in Rule 1 3d-S of the Exchange Act) may receive
        in
        respect of any conversion of the Shares exceed, at any one time, an amount
        equal
        to four and ninety nine one hundredths percent (4.99%) of the then issued
        and
        outstanding shares of Common Stock of the Company following such conversion
        (the
        foregoing being herein referred to as the “Limitation on Conversion”); provided,
        however, that the Limitation on Conversion shall not apply to any forced
        or
        automatic conversion pursuant to this agreement or the Certificate of
        Designation; and provided, further that if the Purchaser shall have declared
        an
        Event of Default and, if a cure period is provided, the Company shall not
        have
        properly and fully cured such Event of Default within any such cure period,
        the
        provisions of this Section 4.11 shall be null and void from and after such
        date.
        The Company shall, promptly upon its receipt of a Notice of Conversion tendered
        by the Purchaser (or its sole designee) for the Shares, as applicable, notify
        the Purchaser by telephone and by facsimile of the number of shares of Common
        Stock outstanding on such date and the number of Underlying Shares which
        would
        be issuable to the Purchaser (or its sole designee, as the case may be) if
        the
        conversion requested in such Notice of Conversion or exercise requested in
        such
        Notice of Exercise were effected in full, whereupon, in accordance with the
        Certificate of Designation and notwithstanding anything to the contrary set
        forth therein, the Purchaser may within one (1) Business Day of its receipt
        of
        the Company notice required by this Section 4.11 by facsimile revoke such
        conversion or exercise to the extent (in whole or in part) that the Purchaser
        determines that such conversion or exercise would result in the ownership
        by the
        Purchaser of shares of Common Stock in excess of the Limitation on Conversion.
        

       

      4.12  No
        Violation of Applicable Law.
        Notwithstanding any provision of this Agreement to the contrary, if the
        redemption of the Shares otherwise required under this Agreement or the
        Certificate of Designation would be prohibited by the relevant provisions
        of
        Delaware law, such redemption shall be effected as soon as it is permitted
        under
        such law; provided, however, that interest payable by the Company with respect
        to any such redemption shall accrue in accordance with Article X(e) of the
        Certificate of Designation until such redemption is effected.

       

      4.13  Redemption
        Restrictions.
        Notwithstanding any provision of this Agreement to the contrary, if any
        redemption of the Shares otherwise required under this Agreement or the
        Certificate of Designation would be prohibited in the absence of consent
        from
        any lender to the Company or any of the Subsidiaries, or by the holders of
        any
        class of securities of the Company, the Company shall use its best efforts
        to
        obtain such consent as promptly as practicable after any such redemption
        is
        required. Interest payable by the Company with respect to any such redemption
        shall accrue in accordance with Article X(e) of the Certificate of Designation
        until such consent is obtained. Nothing contained in this Section 4.13 shall
        be
        construed as a waiver by the Purchaser of any rights they may have by virtue
        of
        any breach of any representation or warranty of the Company herein as to
        the
        absence of any requirement to obtain any such consent.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      4.14  Option
        for Additional Company Shares.
        The
        Company hereby grants to Purchaser an option to acquire that number of shares
        of
        the Company’s Common Stock (the “Option Shares”), such option to be exercisable
        during the thirty (30) day period commencing on the date Purchaser completes
        the
        conversion of all of the Series B Preferred Stock (the “Conversion Completion
        Date”), equal to the difference, if a positive amount, between (a) the number
        of
        the Company’s shares of Common Stock into which the original amount of the
        Series B Preferred Stock would have been convertible on the Closing Date
        at a
        conversion price equal to fifty percent (50%) of the Fixed Conversion Price
        (as
        defined in the Certificate of Designation) less (b) the aggregate number
        of the
        shares of Common Stock into which the original amount of the Series B Preferred
        Stock has actually been converted as of the Conversion Completion Date. The
        exercise price for the Option Shares shall be the closing bid price for the
        Company’s Common stock on the Closing Date plus ten cents ($.10). In case of any
        stock split, stock dividend, reclassification of the Common Stock, any
        consolidation or merger of the Company with or into another person, the sale
        or
        transfer of all or substantially all of the assets of the Company or any
        compulsory share exchange pursuant to which the Common Stock is converted
        into
        other securities, cash or property, then each Option Share then outstanding
        shall have the right thereafter upon exercise to receive only such shares
        of
        stock and other securities and property receivable upon or deemed to be held
        by
        holders of Common Stock following such stock split, stock dividend,
        reclassification, consolidation, merger, sale, transfer or share exchange
        (except in the event the property is cash, then the Purchaser shall have
        the
        right to exercise the Option Shares and receive cash in the same manner as
        other
        stockholders). In such event, if appropriate, the exercise price for the
        Option
        Shares shall be proportionately adjusted.

       

      4.15  Lock-Up
        Agreement.
        Purchaser agrees not to sell, transfer or assign all or any part of the Series
        B
        Preferred Stock or the Underlying Shares for a period of two (2) years following
        the Closing Date, without the express written consent of the Company.
        Notwithstanding the foregoing, Purchaser may convert the Series B Preferred
        Stock at any time and from time to time following the Closing Date.

       

      4.16  Use
        of
        Proceeds.
        The
        Company agrees that none of the proceeds from the sale of the Series B Preferred
        Stock shall be used to repay loans owed by the Company to any of its
        shareholders.

       

      ARTICLE
        V

       

      MISCELLANEOUS

       

      5.1  Fees
        and Expenses.
        Except
        as set forth in this Agreement, each party shall pay the fees and expenses
        of
        its advisers, counsel, accountants and other experts, if any, and all other
        expenses incurred by such party incident to the negotiation, preparation,
        execution, delivery and performance of this Agreement. The Company shall
        pay all
        stamp and other taxes and duties levied in connection with the issuance of
        the
        Shares (and, upon conversion or exercise thereof the Underlying Shares) pursuant
        hereto. The Purchaser shall be responsible for any taxes payable by the
        Purchaser that may arise as a result of the investment hereunder or the
        transactions contemplated by this Agreement or any other Transaction Document.
        The Company agrees to pay a total Purchaser’s counsel $7,500 for legal fees
        associated with the transactions contemplated by this Agreement, $5,000 prior
        to
        document preparation and $2,500 at Closing, and $5,000 for escrow services
        pursuant to the Escrow Agreement, payable at or prior to Closing, and the
        reasonable disbursements of counsel in connection with the transactions
        contemplated by this Agreement. The Company shall pay all costs, expenses,
        fees
        and all taxes incident to and in connection with: (A) the issuance and delivery
        of the Securities, (B) the exemption from registration of the Securities
        for
        offer and sale to the Purchaser under the securities or Blue Sky laws of
        the
        applicable jurisdictions, and (C) the preparation of certificates for the
        Securities (including, without limitation, printing and engraving thereof),
        and
        (D) all fees and expenses of counsel and accountants of the
        Company.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      5.2  Entire
        Agreement.
        This
        Agreement, together with all of the Exhibits and Schedules annexed hereto,
        and
        any other Transaction Document contains the entire understanding of the parties
        with respect to the subject matter hereof and supersede all prior agreements
        and
        understandings, oral or written, with respect to such matters. This Agreement
        shall be deemed to have been drafted and negotiated by both parties hereto
        and
        no presumptions as to interpretation, construction or enforceability shall
        be
        made by or against either party in such regard.

       

      5.3  Notices.
        Any
        notice or other communication required or permitted to be given hereunder
        shall
        be in writing and shall be deemed to have been duly given upon facsimile
        transmission (with written transmission confirmation report) at the number
        designated below (if delivered on a Business Day during normal business hours
        where such notice is to be received), or the first Business Day following
        such
        delivery (if delivered other than on a Business Day during normal business
        hours
        where such notice is to be received) whichever shall first occur. The addresses
        for such communications shall be:

       

      
        	 	
                If
                  to the Company:

              	
                Market
                  Central, Inc.

                1650A
                  Gum Branch Road

                Jacksonville,
                  NC 28540

                
                  Attn:
                    CEO

                

                Tel:

                Fax:

              

      

       

      
        	 	
                With
                  copies to:

              	
                Greenberg
                  Traurig, LLP

                Suite
                  400

                3290
                  Northside Parkway

                Atlanta,
                  GA 30327

                
                  Attn:
                    Gerald
                    L. Baxter, Esq.

                

                
                  Tel:
                    (678)
                    553-2430 
                    
                      Fax:
                        (678) 553-2431

                    

                  

                

              

      

       

      
        
          	 	
                  If
                    to the Purchaser:

                	
                  See
                    Schedule 1 attached hereto

                

        

         

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      
        	 	
                With
                  copies to:

              	
                Gottbetter
                  & Partners, LLP

                12th
                  Floor 488 Madison Avenue

                New
                  York, NY 10022

                
                  Attn:
                    Adam
                    S. Gottbetter, Esq.

                

                
                  Tel:
                    (212)
                    400-6900

                  
                    Fax:
                      (212)
                      400-6901

                  

                

              

      

       

      or
        such
        other address as may be designated hereafter by notice given pursuant to
        the
        terms of this Section 5.3.

       

      5.4  Amendments;
        Waivers.
        No
        provision of this Agreement may be waived or amended except in a written
        instrument signed, in the case of an amendment, by both the Company and the
        Purchaser, or, in the case of a waiver, by the party against whom enforcement
        of
        any such waiver is sought. No waiver of any default with respect to any
        provision, condition or requirement of this Agreement shall be deemed to
        be a
        continuing waiver in the future or a waiver of any other provision, condition
        or
        requirement hereof, nor shall any delay or omission of either party to exercise
        any right hereunder in any manner impair the exercise of any such right accruing
        to it thereafter.

       

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

       

      5.6  No
        Third Party Beneficiaries. This
        Agreement is intended for the benefit of the parties hereto and their respective
        permitted successors and assigns and is not for the benefit of, nor may any
        provision hereof be enforced by, any other person.

       

      5.7  Governing
        Law/Venue/Service of Process.
        The
        parties hereto acknowledge that the transactions contemplated by this Agreement
        and the exhibits hereto bear a reasonable relation to the State of New York.
        The
        parties hereto agree that the internal laws of the State of New York shall
        govern this Agreement and the exhibits hereto, including, but not limited
        to,
        all issues related to usury. Any action to enforce the terms of this Agreement
        or any of its exhibits, or any other Transaction Document shall be brought
        exclusively in the state and/or federal courts situate in the County and
        State
        of New York. Service of process in any action by the Purchaser to enforce
        the
        terms of this Agreement may be made by serving a copy of the summons and
        complaint, in addition to any other relevant documents, by commercial overnight
        courier to the Company at its principal address set forth in this
        Agreement.

       

      5.8  Survival.
        The
        representations and warranties of the Company and the Purchaser contained
        in
        Article III and the agreements and covenants of the parties contained in
        Article
        IV and this Article V shall survive the Closing for a period of one (1)
        year.

       

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

       

      5.10  Publicity.
        The
        Company and the Purchaser shall consult with each other in issuing any press
        releases or otherwise making public statements with respect to the transactions
        contemplated hereby and neither party shall issue any such press release
        or
        otherwise make any such public statement without the prior written consent
        of
        the other, which consent shall not be unreasonably withheld or delayed, unless
        counsel for the disclosing party deems such public statement to be required
        by
        applicable federal and/or state securities laws. Except as otherwise required
        by
        applicable law or regulation, the Company will not disclose to any third
        party
        (excluding its legal counsel, accountants and representatives) the names
        of the
        Purchaser.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      5.11  Severability.
        In case
        any one or more of the provisions of this Agreement shall be invalid or
        unenforceable in any respect, the validity and enforceability of the remaining
        terms and provisions of this Agreement shall not in any way be affected or
        impaired thereby and the parties will attempt to agree upon a valid and
        enforceable provision which shall be a reasonable substitute therefore, and
        upon
        so agreeing, shall incorporate such substitute provision in this
        Agreement.

       

      5.12  Limitation
        of Remedies.
        With
        respect to claims by the Company or any person acting by or through the Company,
        or by the Purchaser or any person acting through the Purchaser, for remedies
        at
        law or at equity relating to or arising out of a breach of this Agreement,
        liability, if any, shall, in no event, include loss of profits or incidental,
        indirect, exemplary, punitive, special or consequential damages of any
        kind.

       

      5.13  Successors
        and Assigns.
        This
        Agreement shall become effective when it is executed by the parties and shall
        thereafter be binding upon and enure to the benefit of the parties hereto
        and
        their permitted successors and assigns. This agreement and any of the rights,
        interests or obligations hereunder may be assigned by the Purchaser without
        the
        consent of the Company, provided that notwithstanding such assignment,
        Purchaser’s obligations hereunder shall continue as if such assignment had not
        occurred.

       

      5.14  Legal
        Fees and Interest Default Rate.
        In the
        event any party hereto commences legal action to enforce its rights under
        this
        Agreement or any other Transaction Document, the non-prevailing party shall
        pay
        all reasonable costs and expenses (including but not limited to reasonable
        attorney’s fees, accountant’s fees, appraiser’s fees and investigative fees)
        incurred in enforcing such rights. In the event of an uncured Event of Default
        by any party hereunder, interest shall accrue on all unpaid amounts due the
        aggrieved party at the rate of ten percent (10%) per annum, compounded
        annually.

       

      

      [SIGNATURE
        PAGE FOLLOWS]

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
        executed as of the date first indicated above.

       

      Company:

       

      Market
        Central, Inc.

       

      By:
        ______________________________

      Name:
        ____________________________

      Title:
        _____________________________

       

      Purchaser:Dungarvon
        Associates, Inc., on behalf of Armadillo Investments, PLC

       

      By:
        ______________________________

      Name:
        ____________________________

      Title:
        _____________________________

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      
        	 	Schedule 1 	 
	 	 	 
	 	Purchaser(s) 	 
	
                 

                Name
                  and Address of Purchaser

                 

              	
                 

                Purchase
                  Price

                 

              	
                 

                No.
                  of Share

                 

              
	
                 

                Armadillo
                  Investments Plc.

                30
                  Farringdon Street

                London
                  

                EC4A
                  4HJ

                Fax: 011.44.20.7724.0090

              	
                 

                $3,500,000

              	
                 

                350,000

              

      

      
 

      
        
          
          

        

        
          23Exhibit
        4.5

       

      REGISTRATION
        RIGHTS AGREEMENT

       

       

      This
        Registration Rights Agreement (this “Agreement”)
        dated
        as of March 25, 2004,
        by
        and between Market Central, Inc., a Delaware corporation with its principal
        place of business at 1 650A
        Gum
        Branch Road, Jacksonville, NC 28540 (the “Company”), and Armadillo Investments,
        Plc., a company incorporated in England and Wales, with its principal place
        of
        business at 30 Farringdon Street, London EC4A 4HJ (the
“Purchaser”).

       

      Simultaneously
        with the execution and delivery of this Agreement, the Purchaser and the
        Company
        have entered into a Convertible Preferred Stock Purchase Agreement, dated
        as of
        the date hereof (the “Purchase
        Agreement”),
        which
        Purchase Agreement is incorporated herein by reference, and pursuant to which
        the Purchaser has agreed to purchase Series B Preferred Stock (the “Shares”),
        that is convertible into Common Stock, par value $.00l per share of the Company
        (the “Underlying
        Shares”),
        and has
        an option to acquire Common Stock, par value $.001 of the Company (the
“Option
        Shares”),
        all as
        more particularly provided therein.

       

      The
        Company and the Holder hereby agree as follows:

       

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

       

      “Affiliate”
        means,
        with respect to any Person, any other Person that directly or indirectly
        controls or is controlled by or under common control with such Person. For
        the
        purposes of this definition only, the term “control,” when used with respect to
        any Person, means the possession, direct or indirect, of the power to direct
        or
        cause the direction of the management and policies of such Person, whether
        through the ownership of voting securities, by contract or otherwise; and
        the
        terms “affiliated,”“controlling”
        and
“controlled”
        have
        meanings correlative to the foregoing.

       

      “Business
        Day”
        means
        any day except Saturday, Sunday and any day which shall be a legal holiday
        or a
        day on which banking institutions in the state of New York are authorized
        or
        required by law or other government actions to close between the hours of
        9:30
        a.m. and 5:00 p.m. New York Time.

       

      “Commission”
        means
        the United States Securities and Exchange Commission.

       

      “Common
        Stock”
        means
        the Company’s common stock, par value $.0l per share.

       

      “Event”
        shall
        have the meaning set forth in Section 7 hereof.

       

      “Event
        Date”
        shall
        have the meaning set forth in Section 7 hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Exchange
        Act” means the Securities Exchange Act of 1934, as amended.

       

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

       

      “Indemnified
        Party”
        shall
        have the meaning set forth in Section 6(c) hereof.

       

      “Indemnifying
        Party”
        shall
        have the meaning set forth in Section 6(c) hereof.

       

      “Inspectors”
        shall
        have the meaning set forth in Section 5(a)(viii) hereof.

       

      “Losses”
        shall
        have the meaning set forth in Section 6(a) hereof.

       

      “New
        York Courts”
        shall
        have the meaning set forth in Section 10(e) hereof.

       

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

       

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

       

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

       

      “Registrable
        Securities”
        means
        the Underlying Shares and the Option Shares, and any other shares of Common
        Stock issued as (or issuable upon the conversion or exercise of any warrant,
        right, or other security which is issued as) a dividend or other distribution
        with respect to, or in exchange for or in replacement of, the Shares, the
        Underlying Shares and the Option Shares, excluding in all cases, however,
        any
        Registrable Securities sold by a Person in a transaction in which the seller’s
        rights under this Agreement are not assigned.

       

      “Registration”
        shall
        have the meaning set forth in Section 3(a) hereof.

       

      “Registration
        Expenses”
        means
        all expenses incurred in effecting any registration pursuant to this Agreement,
        including, without limitation, all registration, qualification, and filing
        fees,
        printing expenses, escrow fees, fees and disbursements of counsel for the
        Company, blue sky fees and expenses, expenses of any regular or special audits
        incident to or required by any such registration, and the compensation of
        regular employees of the Company, but shall not include Selling Expenses,
        and
        fees and disbursements of counsel and accountants for the Selling
        Holders.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Registration
        Statement”
        means
        each registration statement, contemplated by Section 3(a) hereof, including
        the
        prospectus, amendments and supplements to such registration statement or
        prospectus, including pre- and post-effective amendments, all exhibits thereto,
        and all material incorporated by reference or deemed to be incorporated by
        reference in such registration statement.

       

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

       

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

       

      “Rule
        415”
        shall
        mean Rule 415 as promulgated by the Commission under the Securities Act,
        as such
        rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect
        as such
        rule.

       

      “Rule
        158”
        means
        Rule 158 promulgated by the Commission pursuant to the Securities Act, as
        such
        rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect
        as such
        rule.

       

      “Securities
        Act”
        means
        the Securities Act of 1933, as amended.

       

      “Selling
        Expenses”
        means
        the underwriting or sales discounts and commissions charged with respect
        to the
        sale of Registrable Securities.

       

      “Selling
        Holders”
        means
        each Holder any of whose Registrable Securities are being registered pursuant
        to
        a Registration Statement.

       

      “Underwritten
        Registration
        or
“Underwritten
        Offering”
        means a
        registration in connection with which securities of the Company are sold
        to an
        underwriter for sale to the public pursuant to an effective registration
        statement.

       

      2.  Restrictions
        on Transfer.

       

      (a)  Each
        Holder agrees not to offer, sell, transfer, pledge, assign, hypothecate or
        otherwise dispose of all or any portion of its Registrable Securities unless
        and
        until the transferee has agreed in writing for the benefit of the Company
        to be
        bound by the terms of this Agreement and;

       

      (i)  There
        is
        then in effect a registration statement under the Securities Act covering
        such
        proposed disposition and such disposition is made in accordance with such
        registration statement; or

       

      (ii)  Such
        Holder shall have (A) notified the Company of the proposed disposition and
        shall
        have furnished the Company with a detailed statement of the circumstances
        surrounding the proposed disposition, and (B) furnished the Company with
        an
        opinion of counsel, reasonably satisfactory to the Company, that such
        disposition will not require registration of such shares under the Securities
        Act.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (b)  Each
        certificate representing Registrable Securities shall bear the following
        legend:

       

      THE
        SHARES OF COMMON STOCK REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR APPLICABLE STATE “BLUE SKY” OR
        SECURITIES LAWS (“STATE LAWS”), AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
        ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS AND UNTIL
        (i)
        REGISTERED UNDER THE ACT AND APPLICABLE STATE LAWS OR (ii) THE COMPANY SHALL
        HAVE RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, SATISFACTORY TO THE
        COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

       

      (c)  The
        Company shall be obligated to reissue promptly unlegended certificates at
        the
        request of any Holder thereof if the Holder shall have obtained an opinion
        of
        counsel at such Holder’s expense (which counsel may be counsel to the Company)
        reasonably acceptable to the Company to the effect that the securities proposed
        to be disposed of may lawfully be so disposed of without registration,
        qualification or legend;

       

      (d)  Any
        legend endorsed on an instrument pursuant to applicable state securities
        laws
        and the stop-transfer instructions with respect to such securities shall
        be
        removed upon receipt by the Company of an order of the appropriate blue sky
        authority authorizing such removal.

       

      3.  “Piggy-back”
        Registrations.

       

      (a)  If
        the
        Company decides to register any of its Common Stock or securities convertible
        into or exchangeable for Common Stock under the Securities Act (a
“Registration”) on a form that is suitable for an offering of shares of Common
        Stock by the Company or by third parties and that is not a registration solely
        to implement an employee benefit plan on form S-8, a registration statement
        on
        Form 5-4 (or successor form) or a transaction to which Rule 145 or any other
        similar rule of the Commission is applicable (such form, a “Registration
        Statement”), the Company shall give written notice to the Holders of its
        intention to effect such a Registration. Subject to Section 3(b) below, the
        Company shall use all reasonable efforts to effect Registration under the
        Securities Act of all Registrable Securities that the Holders request be
        included in such Registration by a written notice delivered to the Company
        within thirty (30) days after the notice given by the Company. Each of the
        Holders agrees that any Registrable Securities which such Holder requests
        to be
        included in a Registration pursuant to this Section 3 shall be included by
        the
        Company on the same form of Registration Statement as selected for the
        Registration;

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (b)  If
        a
        Registration involves an underwritten offering, the Company shall not be
        required to register securities in excess of the amount that the principal
        underwriter reasonably and in good faith recommends in writing for inclusion
        in
        such offering (a “Cutback”), a copy of which recommendation, and supporting
        reasoning, shall be delivered to each Holder. If such a Cutback occurs, the
        number of shares that are entitled to be included in the Registration and
        underwriting shall be allocated in the following manner: (i) first, to the
        Company for any securities it proposes to sell for its own account, (ii)
        second,
        to any Person with demand registration rights requiring such registration,
        and
        (iii) third, to the Holders and other holders of Company securities with
        piggy-back registration rights requesting inclusion in the Registration,
        pro
        rata among the respective holders thereof on the basis of the number of shares
        for which each such requesting holder has requested registration;

       

      (c)  If
        the
        Registration of which the Company gives notice is for an underwritten public
        offering, the Company shall so advise the Holders as a part of the written
        notice given pursuant to Section 3(a). In such event, the right of any Holder
        to
        have its Registrable Securities included in the Registration pursuant to
        this
        Section 3 shall be conditioned upon such Holder’s participation in such
        underwriting and the inclusion of such Holder’s Registrable Securities in the
        underwriting to the extent provided herein. All Holders proposing to distribute
        their securities through such underwriting shall (together with the Company
        and
        its other security holders with registration rights to participate therein
        distributing their securities through such underwriting) enter into an
        underwriting agreement in customary form with the representative of the
        underwriters or the managing underwriter selected by the Company;

       

      (d)  If
        the
        Company elects to terminate any Registration after a Registration Statement
        for
        such Registration shall have been filed, the Company will have no obligation
        to
        register the Registrable Securities that the Holders sought to have included
        in
        such Registration. The Company shall bear all Registration Expenses of the
        Holders in connection with any Registration.

       

      4.  Representations
        and Warranties.

       

      (a)  The
        Company hereby makes the following representations and warranties to the
        Purchaser:

       

      (i)  The
        Company has the requisite corporate power and authority to enter into, execute
        and deliver this Agreement, and to consummate the transactions contemplated
        hereby and to carry out its obligations hereunder. The execution and delivery
        of
        this Agreement by the Company and the consummation by it of the transactions
        contemplated hereby have been duly authorized by all necessary action on
        the
        part of the Company. This Agreement has been duly executed and delivered
        by the
        Company and constitutes the valid and binding obligations of the Company
        enforceable against the Company in accordance with its terms, except as such
        enforceability may be limited by applicable bankruptcy, insolvency, fraudulent
        transfer, reorganization, moratorium, liquidation or similar laws relating
        to,
        or affecting generally the enforcement of,
        creditors’
        rights or by other equitable principles of general application;

       

      (ii)  The
        Shares are validly issued, fully paid and non-assessable. The Underlying
        Shares
        and the Option Shares have been duly authorized for issuance, offer and sale,
        and when issued and delivered, in accordance with the Purchase Agreement,
        shall
        be validly issued, fully paid and non-assessable;

       

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
         

        (iii)  The
          Company has and at all times while Shares remain outstanding and the Option
          Shares remain unissued, has and will continue to maintain an adequate reserve
          of
          shares of Common Stock to enable it to perform its obligations under this
          Agreement and the Purchase Agreement;

         

      

      (iv)  The
        execution, delivery and performance of this Agreement, and the consummation
        by
        the Company of the transactions contemplated hereby do not and will not (i)
        conflict with or violate any provision of its or any Subsidiary’s articles of
        incorporation, resolutions or bylaws or (ii) require the consent of any third
        party, conflict with, or constitute a default (or an event which with notice
        or
        lapse of time or both would become a default) under, or give to others any
        rights of termination, amendment, acceleration or cancellation of, any
        agreement, indenture or instrument to which the Company is a party, or (iii)
        result in a violation of any law, rule, regulation, order, judgment, injunction,
        decree or other restriction of any court or governmental authority to which
        the
        Company is subject (including federal and state securities laws and
        regulations), or by which any property or assets of the Company or any of
        its
        Subsidiaries is bound or affected, except in the case of each of clauses
        (ii)
        and (iii), such conflicts, defaults, terminations, amendments, accelerations,
        cancellations and violations as would not, individually or in the aggregate,
        have a Material Adverse Effect (as defined in the Purchase
        Agreement);

       

      (v)  Neither
        the Company nor any Subsidiary is required to obtain any consent, permit,
        waiver, authorization or order of,
        or
        make
        any filing or registration with, any court or other federal, state, local
        or
        other governmental authority or other Person in connection with the execution,
        delivery and performance by the Company of this Agreement;

       

      (vi)  Neither
        the Company nor any Subsidiary (i) is in default under or in violation of
        any
        indenture, loan or credit agreement or any other agreement or instrument
        to
        which it is a party or by which it or any of its properties is bound, except
        such conflicts or defaults as do not have a Material Adverse Effect, (ii)
        is in
        violation of any order of any court, arbitrator or governmental body, except
        for
        such violations as do not have a Material Adverse Effect, or (iii) is in
        violation of any statute, rule or regulation of any governmental authority
        which
        could (individually or in the aggregate) (x) adversely affect the legality,
        validity or enforceability of this Agreement, (y) have a Material Adverse
        Effect
        or (z) adversely impair the Company’s ability or obligation to perform fully on
        a timely basis its obligations under this Agreement;

       

      (b)  The
        Purchaser hereby represents and warrants to the Company as follows:

       

      (i)  Such
        Purchaser is a corporation duly incorporated and validly existing and in
        good
        standing under the laws of the jurisdiction of its incorporation.

       

      (ii)  Such
        Purchaser has the requisite corporate power and authority to enter into and
        to
        consummate the transactions contemplated hereby and otherwise to carry out
        its
        obligations hereunder. The execution and delivery of this Agreement have
        been
        duly authorized by all necessary corporate action on the part of such Purchaser.
        This Agreement has been duly executed and delivered by such Purchaser or
        on its
        behalf and constitutes the valid and legally binding obligation of such
        Purchaser, enforceable against it in accordance with its terms; except as
        such
        enforceability may be limited by applicable bankruptcy, insolvency, liquidation,
        fraudulent transfer, reorganization, moratorium laws and remedies or by other
        equitable principles of general application or similar laws relating to or
        affecting generally the enforcement of creditors’ rights.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (iii)  Purchaser
        is acquiring the Shares and the Option Shares for its own account for investment
        purposes only and without a view toward the resale or distribution thereof,
        without prejudice, however, to the Purchaser’s right, subject to the provisions
        of this Agreement, at all times to sell or otherwise dispose of all or any
        part
        of such Shares or Option Shares in compliance with applicable federal and
        state
        securities laws.

       

      5.  Procedures
        for Registration.

       

      (a)  Whenever
        the Company is required to register Registrable Securities under this Agreement,
        it agrees to do the following at its sole cost and expense:

       

      (i)  advise
        the underwriter(s), if any, and the Selling Holders promptly and, if requested
        by such Persons, to confirm such advice in writing: (A) when the prospectus,
        or
        any prospectus supplement or post-effective amendment has been filed, and,
        with
        respect to the Registration Statement or any post-effective amendment thereto,
        when the same has become effective; (B) of any request by the Commission
        for
        amendments to the Registration Statement or amendments or supplements to
        the
        prospectus or for additional information relating thereto; (C) of the issuance
        by the Commission of any stop order suspending the effectiveness of the
        Registration Statement under the Securities Act or of the suspension by any
        state securities commission of the qualification of the Registrable Securities
        for qualification, offering or sale in any jurisdiction, or the initiation
        of
        any Proceeding for any of the preceding purposes; and (D) of the existence
        of
        any fact or the happening of any event that makes any statement of a material
        fact made in the Registration Statement, the prospectus, any amendment or
        supplement thereto, or any document incorporated by reference therein untrue,
        or
        that requires the making of any additions to or changes in the Registration
        Statement or the prospectus in order to make the statements therein not
        misleading. If,
        at
        any
        time, the Commission issues any stop order suspending the effectiveness of
        the
        Registration Statement or any state securities commission or other regulatory
        authority issues an order suspending the qualification or exemption from
        qualification of any Registrable Securities under state securities or Blue
        Sky
        laws, the Company shall use its best efforts to obtain the withdrawal or
        lifting
        of such order at the earliest possible time;

       

      (ii)  if
        requested by any Selling Holder or the underwriter(s), if any, incorporate
        in
        the Registration Statement or prospectus, pursuant to a supplement or
        post-effective amendment if necessary, such information as such Selling Holder
        and the underwriter(s), if any, may reasonably request to have included therein,
        with respect to the number of Registrable Securities, if any, being sold
        to such
        underwriter(s), the purchase price being paid therefor and any other terms
        of
        the offering of the Registrable Securities to be sold in such offering, and
        the
        Company shall make all required filings of such prospectus supplement or
        post-effective amendment as soon as practicable after the Company is notified
        of
        the matters to be incorporated in such prospectus supplement or post-effective
        amendment;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (iii)  furnish
        to the Selling Holders and each of the underwriter(s), if any, without charge,
        before filing with the Commission, at least one copy of the Registration
        Statement, as first filed with the Commission, and of each amendment thereto,
        including the prospectus and all documents incorporated by reference therein
        and
        all exhibits (including exhibits incorporated therein by
        reference);

       

      (iv)  consult
        with the Selling Holders and the underwriter(s), if any, prior to the filing
        of
        such Registration Statement or prospectus;

       

      (v)  deliver
        to each of the Selling Holders and underwriter(s), if any, without charge,
        as
        many copies of the prospectus (including each preliminary prospectus) and
        any
        amendment or supplement thereto as such Persons may reasonably request, the
        Company hereby consenting to the use of the prospectus and any amendment
        or
        supplement thereto by each of the Selling Holders and each of the
        underwriter(s), if any, in connection with the offering and the sale of any
        Registrable Securities covered by the prospectus or any amendment or supplement
        thereto;

       

      (vi)  use
        its
        best efforts, prior to any public offering of Registrable Securities, to
        register or qualify the Registrable Securities under the securities or blue
        sky
        laws of such jurisdictions as the Holder or underwriter(s), if any, may
        reasonably request and do any and all other acts or things necessary or
        advisable to enable the disposition in such jurisdictions of the Registrable
        Securities covered by the Registration Statement; provided, however,
        that
        the Company shall not be required to register or qualify as a foreign
        corporation where it is not now so qualified or to take any action that would
        subject it to the service of process in suits or to taxation, other than
        as to
        matters and transactions relating to the Registration Statement, in any
        jurisdiction where it is not now so subject;

       

      (vii)  cooperate
        with the Selling Holders and the underwriter(s), if any, to facilitate the
        timely preparation and delivery of certificates representing Registrable
        Securities covered by a Registration Statement and not bearing any restrictive
        legends, except as required by law, and enable such Registrable Securities
        to be
        in such denominations and registered in such names as the Holders may request
        prior to any sale of Registrable Securities made by the underwriter(s), if
        any;

       

      (viii)  in
        connection with the preparation and filing of each Registration Statement
        under
        the Securities Act pursuant to this Agreement, the Company shall give Selling
        Holders, their underwriters, if any, and one counsel or firm of counsel and
        one
        accountant or firm of accountants representing all Selling Holders the
        opportunity to participate in the preparation of such Registration Statement,
        each prospectus included therein or filed with the Commission, and each
        amendment thereof or supplement thereto.

       

      (ix)  make
        available for inspection by the Selling Holders, any underwriter participating
        in any disposition pursuant to a Registration Statement, and any attorney,
        accountant or other agent retained by any Holder or underwriter (collectively,
        the “Inspectors”), all financial and other records, pertinent corporate
        documents and properties of the Company necessary to enable them to exercise
        their due diligence responsibility, and cause the Company’s officers, directors
        and employees to supply all information reasonably requested by any such
        Inspector in connection with such Registration Statement;

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (x)  notify
        each seller of Registrable Securities covered by a Registration Statement
        at any
        time when a prospectus relating thereto is required to be delivered under
        the
        Securities Act of the happening of any event as a result of which the prospectus
        included in the Registration Statement, as then in effect, includes and untrue
        statement of a material fact or omits to state a material fact required to
        be
        stated therein or necessary to make the statements therein not misleading
        or
        incomplete in the light of the circumstances then existing, and, at the request
        of any such seller, prepare and furnish to such seller a reasonable number
        of
        copies of a supplement to be an amendment of such prospectus as may be necessary
        so that, as thereafter delivered to the purchasers of any Registrable
        Securities, such prospectus shall not include an untrue statement of a material
        fact or omit to state a material fact required to be stated therein or necessary
        to make the statements therein not misleading or incomplete in the light
        of the
        circumstances then existing;

       

      (xi)  keep
        such
        registration effective for a period of one hundred eighty (180) days or until
        the Selling Holders have completed the distribution described in any
        Registration Statement relating thereto, whichever first occurs; provided, however,
        that
        (A) such 180-day period shall be extended for a period of time equal to the
        longer of (1) the period the Holder refrains from selling any securities
        included in such registration at the request of an underwriter of securities
        of
        the Company and (2) the period ending on the date on which Rule 144(k) first
        becomes available for transfers of Registrable Securities and (B) in the
        case of
        any Registration of Registrable Securities on Form S-3 which are intended
        to be
        offered on a continuous or delayed basis, such 180-day period shall be extended,
        if necessary, to keep the Registration Statement effective until all such
        Registrable Securities are sold, however in no event longer than one year
        from
        the Effective Date of the Registration Statement and provided that Rule 415
        permits an offering on a continuous or delayed basis;

       

      (xii)  cause
        all
        such Registrable Securities registered hereunder to be listed on each securities
        exchange on which similar securities issued by the Company are then
        listed;

       

      (xiii)  provide
        a
        transfer agent and registrar for all Registrable Securities registered pursuant
        to a Registration Statement and a CUSIP number for all such Registrable
        Securities, in each case not later than the effective date of such Registration
        Statement;

       

      (xiv)  otherwise
        use its best efforts to comply with all applicable rules and regulations
        of the
        Commission, and make available to its security holders, as soon as reasonably
        practicable, an earnings statement covering the period of at least twelve
        months, but not more than eighteen months, beginning with the first month
        after
        the effective date of the Registration Statement, which earnings statement
        shall
        satisfy the provisions of Section 11(a) of the Securities Act; and

       

      (xv)  at
        such
        time as a Registration Statement covering a resale of any Registrable Securities
        has been declared effective by the Commission, cause its counsel to deliver
        to
        the transfer agent for the Common Stock an opinion, subject to the making
        by
        Selling Holders of such representations and warranties to Company counsel
        as it
        may reasonably require, certifying that such Registrable Securities may be
        sold
        by the Selling Holders pursuant to such Registration Statement with the
        purchasers thereof receiving share certificates without restrictive legend,
        which opinion shall remain effective so long as such Registration Statement
        remains in full force and effect;

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (b)  Each
        Selling Holder shall, upon receipt of notice from the Company of the occurrence
        of any event of the kind described in Section 4(a)(x), forthwith discontinue
        disposition of Registrable Securities following the effective date of a
        Registration Statement covering Registrable Securities until such Holder’s
        receipt of copies of the prospectus supplement and/or post-effective amendment
        or until it is advised in writing by the Company that the use of the applicable
        prospectus may be resumed and, in either case, has received copies of any
        additional or supplemental filings that are incorporated or deemed to be
        incorporated by reference in such prospectus or Registration
        Statement.

       

      (c)  Each
        Holder covenants and agrees that (i) it will not offer or sell any Registrable
        Securities being registered pursuant to any Registration Statement until
        such
        Holder shall have received copies of the related prospectus and notice from
        the
        Company that such Registration Statement has become effective and (ii) such
        Holder and its officers, directors and Affiliates, if any, will comply with
        the
        prospectus delivery requirements of the Securities Act as applicable to them
        in
        connection with sales of Registrable Securities pursuant to any Registration
        Statement.

       

      6.  Indemnification.

       

      (a)  Indemnification
        by the Company.
        The
        Company shall, notwithstanding termination of this Agreement and without
        limitation as to time, indemnify and hold harmless each Holder, the officers,
        directors, agents (including any underwriters retained by the Holders in
        connection with the offer or sale of Registrable Securities), brokers,
        investment advisors and employees of each of them, each Person who controls
        any
        such Holder (within the meaning of Section 15 of the Securities Act or Section
        20 of the Exchange Act) and the officers, directors, agents and employees
        of
        each such controlling Person, from and against any and all losses, claims,
        damages, liabilities, costs (including, without limitation, costs of preparation
        and attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising
        out of or relating to any untrue or alleged untrue statement of a material
        fact
        contained in such Registration Statement, any prospectus or any form of
        prospectus or in any amendment or supplement thereto or in any preliminary
        prospectus, or arising out of or relating to any omission or alleged omission
        of
        a material fact required to be stated therein or necessary to make the
        statements therein (in the case of any prospectus or form of prospectus or
        amendment or supplement thereto, in light of the circumstances under which
        they
        were made) not misleading, except solely to the extent that (I) such untrue
        statements or omissions are based solely upon information regarding such
        Holder
        furnished in writing to the Company by or on behalf of such Holder expressly
        for
        use therein, which information was relied on by the Company for use therein
        or
        (ii) such information relates to such Holder or such Holder’s proposed method of
        distribution of Registrable Securities and was furnished in writing to the
        Company by or on behalf of such Holder expressly for use therein. The Company
        shall notify the Holders promptly of the institution, threat or assertion
        of any
        Proceeding of which the Company is aware in connection with the transactions
        contemplated by this Agreement.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b)  Indemnification
        by Holders.
        In
        connection with each Registration Statement, each Selling Holder shall furnish
        to the Company in writing such information as the Company reasonably requests
        for use in connection with such Registration Statement or the related prospectus
        and agrees, severally and not jointly, to indemnify and hold harmless the
        Company, their directors, officers, agents and employees, each Person who
        controls the Company (within the meaning of Section 15 of the Securities
        Act and
        Section 20 of the Exchange Act), and the directors, officers, agents or
        employees of such controlling Persons, to the fullest extent permitted by
        applicable law, from and against all Losses (as determined by a court of
        competent jurisdiction in a final judgment not subject to appeal or review)
        arising solely out of or based solely upon any untrue statement of a material
        fact contained in such Registration Statement, such prospectus, or any form
        of
        prospectus, or arising solely out of or based solely upon any omission of
        a
        material fact required to be stated therein or necessary to make the statements
        therein not misleading solely to the extent that (I) such untrue statement
        or
        omission is contained in any information furnished in writing by such Holder
        to
        the Company specifically for inclusion in such Registration Statement or
        such
        prospectus and such information was relied upon by the Company for use in
        such
        Registration Statement, such prospectus or such form of prospectus, or (ii)
        such
        information relates to such Holder or such Holder’s proposed method of
        distribution of Registrable Securities and was furnished in writing by or
        on
        behalf of such Holder to the Company specifically for inclusion in such
        Registration Statement or such prospectus and such information was relied
        upon
        by the Company for use in such Registration Statement, such prospectus or
        such
        form of prospectus; provided, however, that anything contained herein to
        the
        contrary notwithstanding, no Holder shall be liable for any claims hereunder
        in
        an amount in excess of the net proceeds received by such Holder from the
        sale of
        its Registrable Securities pursuant to a Registration Statement. In addition,
        the foregoing shall not inure to the benefit of any Holder if a copy of such
        prospectus (as then amended or supplemented) was furnished by the Company
        to
        such Holder and was not sent or given by or on behalf of such Holder to such
        Holder’s purchaser of Registrable Securities if required by law to have been so
        delivered.

       

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

       

      An
        Indemnified Party shall have the right to employ separate counsel in any
        such
        Proceeding and to participate in the defense thereof but the fees and expenses
        of such counsel shall be at the expense of such Indemnified Party or Parties
        unless: (I) the Indemnifying Party has agreed to pay such fees and expenses;
        or
        (ii) the Indemnifying Party shall have failed to assume promptly the defense
        of
        such Proceeding and to employ counsel reasonably satisfactory to such
        Indemnified Party in such Proceeding; or (iii) the named parties to any such
        Proceeding (including any impleaded parties) include both such Indemnified
        Party
        and the Indemnifying Party, and such Indemnified Party shall have been advised
        by counsel that a conflict of interest is likely to exist if the same counsel
        were to represent such Indemnified Party and the Indemnifying Party (in which
        case, if such Indemnified Party notifies the Indemnifying Party in writing
        that
        it elects to employ separate counsel at the expense of the Indemnifying Party,
        the Indemnifying Party shall not have the right to assume the defense of
        the
        claim against the Indemnified Party but shall retain the right to control
        the
        overall Proceedings out of which the claim arose, and counsel employed by
        the
        Indemnified Party shall be at the expense of the Indemnifying Party). The
        Indemnifying Party shall not be liable for any settlement of any such Proceeding
        effected without its written consent, which consent shall not be unreasonably
        withheld. No Indemnifying Party shall, without the prior written consent
        of the
        Indemnified Party, effect any settlement of any pending Proceeding in respect
        of
        which any Indemnified Party is a party, unless such settlement includes an
        unconditional release of such Indemnified Party from all liability on claims
        that are the subject matter of such Proceeding.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      All
        fees
        and expenses of the Indemnified Party to which the Indemnified Party is entitled
        hereunder (including reasonable fees and expenses to the extent incurred
        in
        connection with investigating or preparing to defend such Proceeding in a
        manner
        not inconsistent with this Section) shall be paid to the Indemnified Party,
        as
        incurred, within ten (10) Business Days after the Indemnified Party gives
        written notice thereof to the Indemnifying Party.

       

      (d)  Contribution.
        If a
        claim for indemnification under Section 6(a) or ~±i2) of this Agreement is
        unavailable to an Indemnified Party or is insufficient to hold such Indemnified
        Party harmless for any Losses in respect of which this Section would apply
        by
        its terms (other than by reason of exceptions provided in this Section),
        then
        each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
        shall
        contribute to the amount paid or payable by such Indemnified Party as a result
        of such Losses, (i) in such proportion as is appropriate to reflect the relative
        benefits received by the Indemnifying Party on the one hand and the Indemnified
        Party on the other from the distribution of the Registrable Securities or
        (ii)
        if the allocation provided by clause (i) above in this paragraph is not
        permitted by applicable law, in such proportion as is appropriate to reflect
        not
        only the relative benefits referred to in such clause (i) but also the relative
        fault of the Indemnifying Party and Indemnified Party in connection with
        the
        actions, statements or omissions that resulted in such Losses as well as
        any
        other relevant equitable considerations. The relative fault of such Indemnifying
        Party and Indemnified Party shall be determined by reference to, among other
        things, whether any action in question, including any untrue or alleged untrue
        statement of a material fact or omission or alleged omission of a material
        fact,
        has been taken or made by, or relates to information supplied by, such
        Indemnifying Party or Indemnified Party, and the parties’ relative intent,
        knowledge, access to information and opportunity to correct or prevent such
        action, statement or omission. The amount paid or payable by a party as a
        result
        of any Losses shall be deemed to include, subject to the limitations set
        forth
        in Section 6(c) hereof any attorneys’ or other fees or expenses incurred by such
        party in connection with any Proceeding to the extent such party would have
        been
        indemnified for such fees or expenses if the indemnification provided for
        in
        this Section was available to such party.

       

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

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (e)  The
        indemnity and contribution agreements contained in this Section
        6
        and the
        representations and warranties of the Company set forth in this Agreement
        shall
        remain operative and in full force and effect, regardless of any investigation
        made by or on behalf of any Holder or any Person controlling Holder, the
        Company, its directors or officers or any Person controlling the
        Company.

       

      (f)  No
        Indemnifying Party shall, without the prior written consent of the Indemnified
        Party, effect any settlement of any pending or threatened action, suit or
        proceeding in respect of which any Indemnified Party is or could have been
        a
        party and indemnity could have been sought hereunder by such Indemnified
        Party,
        unless such settlement includes an unconditional release of such Indemnified
        Party from all liability on claims that are the subject matter of such action,
        suit or proceeding.

       

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

       

      7.  Rule
        144.
        The
        Company shall file the reports required to be filed by it under the Securities
        Act and the Exchange Act in a timely manner and, if at any time the Company
        is
        not required to file such reports, it will, upon the request of any Holder,
        make
        publicly available other information for as long as necessary to permit sales
        of
        its securities pursuant to Rule 144. The Company further covenants that it
        will
        take such further action as any Holder may reasonably request, all to the
        extent
        required from time to time to enable such Holder to sell Registrable Securities
        without registration under the Securities Act within the limitation of the
        exemptions provided by Rule 144. Upon the request of any Holder, the Company
        shall deliver to such Holder a written certification of a duly authorized
        officer as to whether it has complied with such requirements.

       

      8.  Rule
        144A.
        The
        Company agrees that, upon the request of a Holder or any prospective purchaser
        of Registrable Securities designated by a Holder, the Company shall promptly
        provide (but in any case within fifteen (15)
        days
        of a
        request) to such Holder or potential purchaser, the following
        information:

       

      (a)  a
        brief
        statement of the nature of the business of the Company and any subsidiaries
        and
        the products and services each of them offers;

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (b)  the
        most
        recent consolidated balance sheets and profit and losses and retained earnings
        statements, and similar financial statements of the Company for the two (2)
        most
        recent fiscal years (such financial information shall be audited, to the
        extent
        reasonably available); and

       

      (c)  such
        other information about the Company, any subsidiaries, and their business,
        financial condition and results of operations as such Holder or purchaser
        of
        such Registrable Securities shall request in order to comply with Rule 144A,
        as
        amended, and in connection therewith the anti-fraud provisions of the federal
        and state securities laws.

       

      The
        Company hereby represents and warrants to the Holders and any prospective
        purchaser of Registrable Securities from a Holder that the information provided
        by the Company pursuant to this Section
        8
        will, as
        of the dates of such information, not contain any untrue statement of a material
        fact or omit to state a material fact necessary in order to make the statements
        made, in light of the circumstances under which they were made, not
        misleading.

       

      9.  Consent
        to be Bound; Assignability of Registration Rights.
        Each
        subsequent holder of Registrable Securities must consent in writing to be
        bound
        by the terms and conditions of this Agreement in order to acquire the rights
        granted pursuant to this Agreement. Subject to the foregoing sentence, the
        registration rights set forth in this Agreement are assignable to each assignee
        of Registrable Securities conveyed in accordance herewith who agrees in writing
        to be bound by the terms and conditions of this Agreement.

       

      10.  Miscellaneous.

       

      (a)  No
        amendment, modification, termination or cancellation of this Agreement shall
        be
        effective unless made in a writing signed by the Company and all of the Persons
        who are then Holders of Registrable Securities;

       

      (b)  The
        Company and the Holders agree that the rights created by this Agreement are
        unique, and that the loss of any such right is not susceptible to monetary
        quantification. Consequently, the parties agree that an action for specific
        performance (including for temporary and/or permanent injunctive relief)
        of the
        obligations created by this Agreement is a proper remedy for the breach of
        the
        provisions of this Agreement, without the necessity of proving actual damages.
        If the parties hereto are forced to institute legal proceedings to enforce
        their
        rights in accordance with the provisions of this Agreement, the prevailing
        party
        shall be entitled to recover its reasonable expenses, including attorneys’ fees,
        in connection with any such action;

       

      (c)  Except
        as
        otherwise specifically provided herein, all notices, requests, demands and
        other
        communications provided for hereunder shall be in writing and shall be deemed
        duly given to the Person for whom intended (i) upon receipt when personally
        delivered, (ii) one (1) day after being sent by a nationally recognized
        overnight courier for next day delivery or telecopy providing confirmation
        or
        receipt of delivery, or (iii) three (3) days after being sent by certified
        or
        registered mail, postage and certified or registered mail fees prepaid, return
        receipt requested, if sent to such Person at the address for such Person
        indicated below or to such other address as may be designated by such Person
        in
        writing sent by such Person in the manner required by this Section:

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      
        	If to the Company:	
                Market
                  Central, Inc.

                1650A
                  Gum Branch Road

                Jacksonville,
                  NC 28540

                Attn:
                  CEO

                Tel:

                Fax:

              
	 	 
	With copies to: 	
                Greenberg
                  Traurig LLP

                Suite
                  400

                3290
                  Northside Parkway

                Atlanta,
                  GA 30327

                Attn: Gerald
                  L. Baxter, Esq.

                Tel: (678)
                  553-2430

                Fax: (678)
                  553-2431

              
	 	 
	 	
                Gottbetter
                  & Partners, LLP

                488
                  Madison Avenue

                New
                  York, NY 10022

                Attn: Adam
                  S. Gottbetter, Esq.

                Tel: (212)
                  400-6900

                Fax: (212)
                  400-6901

              
	 	 
	If to the Holders: 	
                To the
                  address of each such Holder as it appears in the stock transfer
                  records of
                  the Company

              
	 	 
	With copies to: 	
                Gottbetter
                  & Partners, LLP

                488
                  Madison Avenue

                New
                  York, NY 10022

                Attn: Adam
                  S. Gottbetter, Esq.

                Tel: (212)
                  400-6900

                Fax: (212)
                  400-6901

              

      

       

      (d)  This
        Agreement may be executed in any number of counterparts, each of which when
        so
        executed shall be deemed to be an original and, all of which taken together
        shall constitute one and the same Agreement. In the event that any signature
        is
        delivered by facsimile transmission, such signature shall create a valid
        and
        binding obligation of the party executing (or on whose behalf such signature
        is
        executed) the same with the same force and effect as if such facsimile signature
        were the original thereof

       

      (e)  This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        state of New York without regard to principles thereof relating to the conflict
        of laws. Each of the Company and each Holder hereby irrevocably submits to
        the
        jurisdiction of any New York state court or any federal court sitting in
        the
        city and county of New York (collectively, the “New York Courts”) in respect of
        any Proceeding arising out of or relating to this Agreement and irrevocably
        accepts for itself and in respect of its property, generally and
        unconditionally, jurisdiction of the New York Courts. Each of the Company
        and
        each Holder irrevocably waives, to the fullest extent it may effectively
        do so
        under applicable law, any objection that it may now or hereafter have to
        the
        laying of the venue of any such Proceeding brought in any New York Court
        and any
        claim that any such Proceeding brought in any New York Court has been brought
        in
        an inconvenient forum;

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (f)  The
        remedies provided herein are cumulative and not exclusive of one another
        or of
        any remedies provided by law;

       

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

       

      (h)  The
        headings in this Agreement are for convenience of reference only and shall
        not
        limit or otherwise affect the meaning hereof.

       

      (i)  This
        Agreement shall terminate when all of the Registrable Securities held by
        all of
        the Selling Holders are eligible for immediate sale pursuant to the provisions
        of Rule 144.

       

      [Signatures
        on following page]

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

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

       

       

      
        	 	 	 
	 	Company:
	 
 	
                 

                MARKET
                  CENTRAL, INC.
  
 

              
	 	By:  	 
	 	
                
Name:
	 	Title 

      

       

      
        
          	 	 	 
	 	
                  Purchaser:

                   

                
	 
 	
                  
                    DUNGARVON
                      ASSOCIATES, INC. ON

                    BEHALF
                      OF ARMADILLO

                    INVESTMENTS,
                      PLC.

                  

                   

                   

                
	 	By:  	 
	 	
                  
Name:
	 	Title

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