Document:

9
                                        1

                                     WARRANT

THE  SECURITIES  REPRESENTED  BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES  ACT  OF  1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES  HAVE  BEEN  ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  ASSIGNED  IN  THE  ABSENCE  OF AN EFFECTIVE REGISTRATION
STATEMENT  FOR  THE  SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE  STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
SATISFACTORY  TO  THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE  STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.  NOTWITHSTANDING  THE  FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
WITH  A  BONA  FIDE  MARGIN  ACCOUNT.

                         LOCATEPLUS HOLDINGS CORPORATION

                        WARRANT TO PURCHASE COMMON STOCK

Warrant  No.:  LPHC-1-[A, B, C, D, E, F]     Number of Shares:          ________
     Warrant  Exercise  Price:          $_______
     Expiration  Date:     March  __,  2012

Date  of  Issuance:  March  __,  2007

LocatePLUS  Holdings Corporation, a Delaware corporation (the "Company"), hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of  which  are hereby acknowledged, CORNELL CAPITAL PARTNERS, LP (the "Holder"),
the  registered  holder hereof or its permitted assigns, is entitled, subject to
the  terms  set forth below, to purchase from the Company upon surrender of this
Warrant,  at  any time or times on or after the date hereof, but not after 11:59
P.M.  Eastern  Time  on  the  Expiration  Date  (as  defined  herein)  up  to
[_____________]  fully paid and nonassessable shares of Common Stock (as defined
herein)  of  the  Company (the "Warrant Shares") at the exercise price per share
provided  in  Section 1(b) below or as subsequently adjusted; provided, however,
that  in  no  event  shall the holder be entitled to exercise this Warrant for a
number  of Warrant Shares in excess of that number of Warrant Shares which, upon
giving  effect  to  such exercise, would cause the aggregate number of shares of
Common Stock beneficially owned by the holder and its affiliates to exceed 4.99%
of  the  outstanding  shares of the Common Stock following such exercise, except
within  sixty (60) days of the Expiration Date (however, such restriction may be
waived  by  Holder  (but only as to itself and not to any other holder) upon not
less  than  65 days prior notice to the Company).  For purposes of the foregoing
proviso,  the  aggregate  number of shares of Common Stock beneficially owned by
the holder and its affiliates shall include the number of shares of Common Stock
issuable  upon  exercise of this Warrant with respect to which the determination
of  such  proviso  is being made, but shall exclude shares of Common Stock which
would  be  issuable  upon  (i)  exercise  of the remaining, unexercised Warrants
beneficially  owned  by  the  holder  and  its  affiliates  and (ii) exercise or
conversion  of the unexercised or unconverted portion of any other securities of
the  Company  beneficially  owned  by  the holder and its affiliates (including,
without  limitation,  any  convertible  notes  or  preferred stock) subject to a
limitation  on  conversion  or  exercise  analogous  to the limitation contained
herein.  Except  as  set  forth  in the preceding sentence, for purposes of this
paragraph,  beneficial  ownership shall be calculated in accordance with Section
13(d)  of the Securities Exchange Act of 1934, as amended.  For purposes of this
Warrant,  in  determining  the  number  of  outstanding shares of Common Stock a
holder may rely on the number of outstanding shares of Common Stock as reflected
in (1) the Company's most recent Form 10-QSB or Form 10-KSB, as the case may be,
(2)  a more recent public announcement by the Company or (3) any other notice by
the  Company  or its transfer agent setting forth the number of shares of Common
Stock  outstanding.  Upon  the  written request of any holder, the Company shall
promptly,  but in no event later than one (1) Business Day following the receipt
of  such  notice,  confirm in writing to any such holder the number of shares of
Common Stock then outstanding.  In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the exercise of Warrants
(as  defined below) by such holder and its affiliates since the date as of which
such  number  of  outstanding  shares  of  Common  Stock  was  reported.

Section  1.

(a)     This  Warrant  is  one of the warrants issued pursuant to the Securities
Purchase  Agreement  ("Securities  Purchase  Agreement")  dated  the date hereof
between  the  Company  and  the Buyers listed on Schedule I thereto or issued in
exchange  or  substitution  thereafter or replacement thereof.  Each Capitalized
term  used,  and  not  otherwise defined herein, shall have the meaning ascribed
thereto  in  the  Securities  Purchase  Agreement.

(b)     Definitions.  The  following  words  and  terms  as used in this Warrant
shall  have  the  following  meanings:

(i)     "Approved  Stock  Plan" means a stock option plan that has been approved
by  the  Board  of  Directors of the Company prior to the date of the Securities
Purchase  Agreement,  pursuant  to  which the Company's securities may be issued
only  to any employee, officer or director for services provided to the Company.

(ii)      "Business  Day" means any day other than Saturday, Sunday or other day
on  which  commercial  banks  in the City of CityplaceNew York are authorized or
required  by  law  to  remain  closed.

(iii)     "Closing  Bid  Price"  means  the closing bid price of Common Stock as
quoted  on  the  Principal  Market  (as  reported by Bloomberg Financial Markets
("Bloomberg")  through  its  "Volume  at  Price"  function).

(iv)     "Common  Stock"  means  (i) the Company's common stock, par value $0.01
per  share,  and  (ii) any capital stock into which such Common Stock shall have
been  changed  or  any  capital  stock resulting from a reclassification of such
Common  Stock.

(v)     "Event  of  Default"  means  an  event  of  default under the Securities
Purchase Agreement or the Convertible Debentures issued in connection therewith.

(vi)     "Excluded  Securities"  means, (a) shares issued or deemed to have been
issued  by  the Company pursuant to an Approved Stock Plan, (b) shares of Common
Stock issued or deemed to be issued by the Company upon the conversion, exchange
or exercise of any right, option, obligation or security outstanding on the date
prior  to  date of the Securities Purchase Agreement, provided that the terms of
such right, option, obligation or security are not amended or otherwise modified
on or after the date of the Securities Purchase Agreement, and provided that the
conversion  price, exchange price, exercise price or other purchase price is not
reduced, adjusted or otherwise modified and the number of shares of Common Stock
issued  or  issuable is not increased (whether by operation of, or in accordance
with, the relevant governing documents or otherwise) on or after the date of the
Securities  Purchase  Agreement,  and  (c)  the shares of Common Stock issued or
deemed to be issued by the Company upon conversion of the Convertible Debentures
or  exercise  of  the  Warrants.

(vii)     "Expiration  Date"  means  March  ____,  2012.

(viii)     "Issuance  Date"  means  the  date  hereof.

(ix)     "Options"  means  any  rights,  warrants or options to subscribe for or
purchase  Common  Stock  or  Convertible  Securities.

(x)      "Person"  means  an  individual,  a  limited  liability  company,  a
partnership,  a  joint  venture,  a  corporation,  a  trust,  an  unincorporated
organization  and  a  government  or  any  department  or  agency  thereof.

(xi)     "Primary  Market"  means on any of (a) the American Stock Exchange, (b)
New  York  Stock  Exchange, (c) the Nasdaq Global Market, (d) the Nasdaq Capital
Market,  or  (e)  the  Nasdaq  OTC  Bulletin  Board  ("OTCBB")

(xii)     "Securities  Act"  means  the  Securities  Act  of  1933,  as amended.

(xiii)     "Warrant"  means  this  Warrant  and all Warrants issued in exchange,
transfer  or  replacement  thereof.

(xiv)     "Warrant  Exercise Price" shall be [$____] or as subsequently adjusted
as  provided  in  Section  8  hereof.

(c)     Other  Definitional  Provisions.

(i)     Except  as  otherwise specified herein, all references herein (A) to the
Company  shall  be  deemed  to  include  the Company's successors and (B) to any
applicable  law defined or referred to herein shall be deemed references to such
applicable  law as the same may have been or may be amended or supplemented from
time  to  time.

(ii)     When  used  in  this  Warrant,  the  words  "herein",  "hereof",  and
"hereunder"  and words of similar import, shall refer to this Warrant as a whole
and  not  to any provision of this Warrant, and the words "Section", "Schedule",
and  "Exhibit"  shall  refer to Sections of, and Schedules and Exhibits to, this
Warrant  unless  otherwise  specified.

(iii)     Whenever  the  context  so  requires,  the  neuter gender includes the
masculine  or  feminine,  and  the singular number includes the plural, and vice
versa.

Section  2.     Exercise  of  Warrant.

(a)     Subject  to  the  terms  and  conditions  hereof,  this  Warrant  may be
exercised  by the holder hereof then registered on the books of the Company, pro
rata  as  hereinafter  provided, at any time on any Business Day on or after the
opening  of  business  on such Business Day, commencing with the first day after
the date hereof, and prior to 11:59 P.M. Eastern Time on the Expiration Date (i)
by delivery of a written notice, in the form of the subscription notice attached
as  Exhibit  A  hereto  (the  "Exercise  Notice"),  of such holder's election to
exercise  this  Warrant, which notice shall specify the number of Warrant Shares
to  be  purchased,  payment  to  the  Company  of an amount equal to the Warrant
Exercise  Price(s)  applicable to the Warrant Shares being purchased, multiplied
by the number of Warrant Shares (at the applicable Warrant Exercise Price) as to
which  this  Warrant  is  being exercised (plus any applicable issue or transfer
taxes)  (the "Aggregate Exercise Price") in cash or wire transfer of immediately
available  funds  and  the  surrender  of  this  Warrant  (or an indemnification
undertaking  with  respect  to  this  Warrant  in the case of its loss, theft or
destruction)  to  a common carrier for overnight delivery to the Company as soon
as  practicable  following  such  date  ("Cash Basis") or (ii) if at the time of
exercise,  the  Warrant  Shares  are  not  subject  to an effective registration
statement  or  if  an  Event  of Default has occurred, by delivering an Exercise
Notice  and in lieu of making payment of the Aggregate Exercise Price in cash or
wire  transfer,  elect instead to receive upon such exercise the "Net Number" of
shares  of  Common  Stock  determined  according  to  the following formula (the
"Cashless  Exercise"):

Net Number = (A x B) - (A x C)
                                      B

     For purposes of the foregoing formula:

A = the total number of Warrant Shares with respect to which this Warrant is
then being exercised.

B = the Closing Bid Price of the Common Stock on the date of exercise of the
Warrant.

C = the Warrant Exercise Price then in effect for the applicable Warrant Shares
at the time of such exercise.

     In  the  event of any exercise of the rights represented by this Warrant in
compliance  with  this Section 2, the Company shall on or before the fifth (5th)
Business Day following the date of receipt of the Exercise Notice, the Aggregate
Exercise  Price and this Warrant (or an indemnification undertaking with respect
to  this  Warrant in the case of its loss, theft or destruction) and the receipt
of the representations of the holder specified in Section 6 hereof, if requested
by  the  Company (the "Exercise Delivery Documents"), and if the Common Stock is
DTC  eligible,  credit  such aggregate number of shares of Common Stock to which
the  holder  shall be entitled to the holder's or its designee's balance account
with  The  Depository  Trust  Company;  provided,  however,  if  the  holder who
submitted  the  Exercise Notice requested physical delivery of any or all of the
Warrant  Shares,  or,  if the Common Stock is not DTC eligible  then the Company
shall,  on  or  before  the  fifth  (5th)  Business Day following receipt of the
Exercise  Delivery  Documents,  issue  and  surrender  to  a  common carrier for
overnight  delivery  to  the  address  specified  in  the  Exercise  Notice,  a
certificate,  registered  in the name of the holder, for the number of shares of
Common  Stock  to  which  the holder shall be entitled pursuant to such request.
Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to in
clause  (i)  or  (ii)  above  the holder of this Warrant shall be deemed for all
corporate  purposes  to  have  become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised.  In the case of a dispute
as  to the determination of the Warrant Exercise Price, the Closing Bid Price or
the  arithmetic  calculation  of  the Warrant Shares, the Company shall promptly
issue  to the holder the number of Warrant Shares that is not disputed and shall
submit  the disputed determinations or arithmetic calculations to the holder via
facsimile  within  one  (1)  Business  Day  of  receipt of the holder's Exercise
Notice.

(b)     If the holder and the Company are unable to agree upon the determination
of  the  Warrant  Exercise Price or arithmetic calculation of the Warrant Shares
within  one  (1)  day  of  such disputed determination or arithmetic calculation
being  submitted  to  the  holder, then the Company shall immediately submit via
facsimile  (i)  the  disputed determination of the Warrant Exercise Price or the
Closing  Bid  Price to an independent, reputable investment banking firm or (ii)
the  disputed  arithmetic  calculation of the Warrant Shares to its independent,
outside  accountant.  The Company shall cause the investment banking firm or the
accountant,  as  the  case may be, to perform the determinations or calculations
and  notify  the Company and the holder of the results no later than forty-eight
(48)  hours  from  the  time  it  receives  the  disputed  determinations  or
calculations.  Such  investment  banking firm's or accountant's determination or
calculation,  as  the  case  may  be, shall be deemed conclusive absent manifest
error.

(c)     Unless  the  rights  represented  by  this Warrant shall have expired or
shall  have  been fully exercised, the Company shall, as soon as practicable and
in  no event later than five (5) Business Days after any exercise and at its own
expense, issue a new Warrant identical in all respects to this Warrant exercised
except  it  shall  represent  rights  to  purchase  the number of Warrant Shares
purchasable  immediately  prior  to  such exercise under this Warrant exercised,
less  the  number  of  Warrant  Shares  with  respect  to  which such Warrant is
exercised.

(d)     No fractional Warrant Shares are to be issued upon any pro rata exercise
of  this  Warrant,  but  rather  the  number  of Warrant Shares issued upon such
exercise  of  this  Warrant  shall  be  rounded  up or down to the nearest whole
number.

(e)     If the Company or its Transfer Agent shall fail for any reason or for no
reason  to  issue  to the holder within ten (10) days of receipt of the Exercise
Delivery  Documents, a certificate for the number of Warrant Shares to which the
holder is entitled or to credit the holder's balance account with The Depository
Trust  Company for such number of Warrant Shares to which the holder is entitled
upon  the  holder's  exercise of this Warrant, the Company shall, in addition to
any other remedies under this Warrant or otherwise available to such holder, pay
as  additional  damages  in cash to such holder on each day the issuance of such
certificate  for Warrant Shares is not timely effected an amount equal to 0.025%
of  the product of (A) the sum of the number of Warrant Shares not issued to the
holder  on  a  timely  basis  and  to  which the holder is entitled, and (B) the
Closing  Bid Price of the Common Stock for the trading day immediately preceding
the  last possible date which the Company could have issued such Common Stock to
the  holder  without  violating  this  Section  2.

(f)     If  within  ten  (10)  days  after the Company's receipt of the Exercise
Delivery Documents, the Company fails to deliver a new Warrant to the holder for
the  number  of  Warrant  Shares  to  which  such holder is entitled pursuant to
Section  2  hereof, then, in addition to any other available remedies under this
Warrant,  or  otherwise  available  to  such  holder,  the  Company shall pay as
additional  damages  in  cash to such holder on each day after such tenth (10th)
day  that  such delivery of such new Warrant is not timely effected in an amount
equal to 0.25% of the product of (A) the number of Warrant Shares represented by
the portion of this Warrant which is not being exercised and (B) the Closing Bid
Price  of  the  Common  Stock for the trading day immediately preceding the last
possible  date  which  the  Company could have issued such Warrant to the holder
without  violating  this  Section  2.

Section  3.     Covenants  as to Common Stock.  The Company hereby covenants and
agrees  as  follows:

(a)     This  Warrant  is,  and  any  Warrants  issued  in  substitution  for or
replacement  of  this Warrant will upon issuance be, duly authorized and validly
issued.

(b)     All  Warrant  Shares which may be issued upon the exercise of the rights
represented  by  this Warrant will, upon issuance, be validly issued, fully paid
and nonassessable and free from all taxes, liens and charges with respect to the
issue  thereof.

(c)     Subject  to  the Company's obligation to increase its authorized capital
as  set  forth  in  the  Securities Purchase Agreement, during the period within
which  the rights represented by this Warrant may be exercised, the Company will
at all times have authorized and reserved at least one hundred percent (100%) of
the  number  of shares of Common Stock needed to provide for the exercise of the
rights then represented by this Warrant and the par value of said shares will at
all times be less than or equal to the applicable Warrant Exercise Price.  If at
any time the Company does not have a sufficient number of shares of Common Stock
authorized and available, then the Company shall call and hold a special meeting
of  its stockholders within sixty (60) days of that time for the sole purpose of
increasing  the  number  of  authorized  shares  of  Common  Stock.

(d)     If  at  any  time  after  the  date  hereof  the  Company  shall  file a
registration statement, the Company shall include the Warrant Shares issuable to
the holder, pursuant to the terms of this Warrant and shall maintain, so long as
any other shares of Common Stock shall be so listed, such listing of all Warrant
Shares  from  time  to  time issuable upon the exercise of this Warrant; and the
Company  shall  so  list  on  each  national  securities  exchange  or automated
quotation  system,  as  the case may be, and shall maintain such listing of, any
other  shares of capital stock of the Company issuable upon the exercise of this
Warrant  if  and so long as any shares of the same class shall be listed on such
national  securities  exchange  or  automated  quotation  system.

(e)     The  Company  will not, by amendment of its Articles of Incorporation or
through  any  reorganization,  transfer  of  assets,  consolidation,  merger,
dissolution,  issue  or sale of securities, or any other voluntary action, avoid
or  seek  to  avoid  the  observance  or  performance  of any of the terms to be
observed  or  performed  by  it  hereunder,  but will at all times in good faith
assist  in  the  carrying  out  of all the provisions of this Warrant and in the
taking  of  all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against  dilution  or other impairment, consistent with the tenor and purpose of
this  Warrant.  The  Company  will  not  increase the par value of any shares of
Common  Stock  receivable  upon  the  exercise of this Warrant above the Warrant
Exercise  Price  then  in  effect, and (ii) will take all such actions as may be
necessary or appropriate in order that the Company may validly and legally issue
fully  paid  and  nonassessable shares of Common Stock upon the exercise of this
Warrant.

(f)     This  Warrant  will be binding upon any entity succeeding to the Company
by  merger,  consolidation  or  acquisition  of  all or substantially all of the
Company's  assets.

Section  4.     Taxes.  The  Company  shall  pay  any  and all taxes, except any
applicable  withholding,  which  may be payable with respect to the issuance and
delivery  of  Warrant  Shares  upon  exercise  of  this  Warrant.

Section  5.     Warrant  Holder  Not  Deemed a Stockholder.  Except as otherwise
specifically  provided  herein,  no  holder,  as  such, of this Warrant shall be
entitled  to  vote  or  receive  dividends  or be deemed the holder of shares of
capital  stock  of  the Company for any purpose, nor shall anything contained in
this  Warrant be construed to confer upon the holder hereof, as such, any of the
rights  of  a  stockholder of the Company or any right to vote, give or withhold
consent  to  any  corporate  action (whether any reorganization, issue of stock,
reclassification  of  stock,  consolidation,  merger,  conveyance or otherwise),
receive  notice  of  meetings,  receive  dividends  or  subscription  rights, or
otherwise,  prior  to  the issuance to the holder of this Warrant of the Warrant
Shares which he or she is then entitled to receive upon the due exercise of this
Warrant.  In  addition,  nothing contained in this Warrant shall be construed as
imposing  any  liabilities  on  such  holder  to  purchase  any securities (upon
exercise  of  this  Warrant  or  otherwise)  or as a stockholder of the Company,
whether  such  liabilities  are  asserted  by the Company or by creditors of the
Company.  Notwithstanding this Section 5, the Company will provide the holder of
this  Warrant with copies of the same notices and other information given to the
stockholders of the Company generally, contemporaneously with the giving thereof
to  the  stockholders.

Section  6.     Representations  of  Holder.  The holder of this Warrant, by the
acceptance  hereof, represents that it is acquiring this Warrant and the Warrant
Shares  for  its own account for investment only and not with a view towards, or
for  resale  in connection with, the public sale or distribution of this Warrant
or the Warrant Shares, except pursuant to sales registered or exempted under the
Securities  Act;  provided,  however, that by making the representations herein,
the  holder does not agree to hold this Warrant or any of the Warrant Shares for
any  minimum  or  other  specific term and reserves the right to dispose of this
Warrant  and  the Warrant Shares at any time in accordance with or pursuant to a
registration  statement or an exemption under the Securities Act.  The holder of
this  Warrant  further  represents, by acceptance hereof, that, as of this date,
such  holder  is  an  "accredited  investor"  as  such  term  is defined in Rule
501(a)(1)  of Regulation D promulgated by the Securities and Exchange Commission
under  the  Securities  Act  (an  "Accredited Investor").  Upon exercise of this
Warrant  the holder shall, if requested by the Company, confirm in writing, in a
form satisfactory to the Company, that the Warrant Shares so purchased are being
acquired  solely for the holder's own account and not as a nominee for any other
party,  for  investment,  and  not with a view toward distribution or resale and
that  such  holder  is  an Accredited Investor.  If such holder cannot make such
representations  because  they  would  be  factually  incorrect,  it  shall be a
condition  to  such  holder's  exercise of this Warrant that the Company receive
such  other  representations  as  the  Company considers reasonably necessary to
assure  the  Company  that  the issuance of its securities upon exercise of this
Warrant  shall  not  violate  any  United  States  or  state  securities  laws.

Section  7.     Ownership  and  Transfer.

(a)     The  Company  shall maintain at its principal executive offices (or such
other  office  or  agency  of  the  Company as it may designate by notice to the
holder  hereof),  a register for this Warrant, in which the Company shall record
the  name  and address of the person in whose name this Warrant has been issued,
as  well  as the name and address of each transferee.  The Company may treat the
person  in whose name any Warrant is registered on the register as the owner and
holder thereof for all purposes, notwithstanding any notice to the contrary, but
in  all  events  recognizing  any transfers made in accordance with the terms of
this  Warrant.

Section  8.     Adjustment  of Warrant Exercise Price and Number of Shares.  The
Warrant  Exercise  Price  and the number of shares of Common Stock issuable upon
exercise  of  this  Warrant  shall  be  adjusted  from  time to time as follows:

(a)     Adjustment  of Warrant Exercise Price and Number of Shares upon Issuance
of Common Stock.  If and whenever on or after the Issuance Date of this Warrant,
the  Company issues or sells, or is deemed to have issued or sold, any shares of
Common Stock (other than Excluded Securities) for a consideration per share less
than  a  price  (the  "Applicable Price") equal to the Warrant Exercise Price in
effect  immediately  prior to such issuance or sale, then immediately after such
issue  or  sale the Warrant Exercise Price then in effect shall be reduced to an
amount  equal to such consideration per share.  Upon each such adjustment of the
Warrant  Exercise  Price  hereunder,  the number of Warrant Shares issuable upon
exercise of this Warrant shall be adjusted to the number of shares determined by
multiplying  the  Warrant  Exercise  Price  in  effect immediately prior to such
adjustment  by  the  number  of  Warrant  Shares  issuable upon exercise of this
Warrant immediately prior to such adjustment and dividing the product thereof by
the  Warrant  Exercise  Price  resulting  from  such  adjustment.

(b)     Effect  on  Warrant  Exercise  Price of Certain Events.  For purposes of
determining  the  adjusted  Warrant Exercise Price under Section 8(a) above, the
following  shall  be  applicable:

(i)     Issuance  of  Options.  If  after  the  date  hereof, the Company in any
manner  grants any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion
or  exchange  of  any  convertible securities issuable upon exercise of any such
Option  is less than the Applicable Price, then such share of Common Stock shall
be  deemed  to be outstanding and to have been issued and sold by the Company at
the  time  of the granting or sale of such Option for such price per share.  For
purposes of this Section 8(b)(i), the lowest price per share for which one share
of  Common Stock is issuable upon exercise of such Options or upon conversion or
exchange  of such Convertible Securities shall be equal to the sum of the lowest
amounts  of  consideration  (if  any) received or receivable by the Company with
respect  to  any  one  share  of  Common  Stock upon the granting or sale of the
Option,  upon  exercise  of  the  Option  or  upon conversion or exchange of any
convertible  security  issuable  upon  exercise  of  such  Option.  No  further
adjustment  of the Warrant Exercise Price shall be made upon the actual issuance
of such Common Stock or of such convertible securities upon the exercise of such
Options  or  upon  the  actual  issuance of such Common Stock upon conversion or
exchange  of  such  convertible  securities.

(ii)     Issuance  of  Convertible  Securities.  If  the  Company  in any manner
issues  or  sells  any convertible securities and the lowest price per share for
which  one  share  of  Common  Stock is issuable upon the conversion or exchange
thereof is less than the Applicable Price, then such share of Common Stock shall
be  deemed  to be outstanding and to have been issued and sold by the Company at
the  time  of the issuance or sale of such convertible securities for such price
per  share.  For  the  purposes  of  this Section 8(b)(ii), the lowest price per
share  for  which  one share of Common Stock is issuable upon such conversion or
exchange  shall  be  equal to the sum of the lowest amounts of consideration (if
any)  received  or receivable by the Company with respect to one share of Common
Stock  upon the issuance or sale of the convertible security and upon conversion
or  exchange of such convertible security.  No further adjustment of the Warrant
Exercise  Price shall be made upon the actual issuance of such Common Stock upon
conversion  or exchange of such convertible securities, and if any such issue or
sale  of  such  convertible  securities is made upon exercise of any Options for
which  adjustment  of  the  Warrant  Exercise  Price  had been or are to be made
pursuant  to other provisions of this Section 8(b), no further adjustment of the
Warrant  Exercise  Price  shall  be  made  by  reason  of  such  issue  or sale.

(iii)     Change  in  Option Price or Rate of Conversion.  If the purchase price
provided  for in any Options, the additional consideration, if any, payable upon
the  issue, conversion or exchange of any convertible securities, or the rate at
which any convertible securities are convertible into or exchangeable for Common
Stock  changes  at any time, the Warrant Exercise Price in effect at the time of
such  change  shall  be  adjusted to the Warrant Exercise Price which would have
been  in effect at such time had such Options or convertible securities provided
for  such changed purchase price, additional consideration or changed conversion
rate,  as the case may be, at the time initially granted, issued or sold and the
number  of  Warrant  Shares  issuable  upon  exercise  of  this Warrant shall be
correspondingly  readjusted.  For  purposes  of  this  Section 8(b)(iii), if the
terms  of  any  Option  or  convertible  security that was outstanding as of the
Issuance  Date  of  this  Warrant  are  changed  in  the manner described in the
immediately preceding sentence, then such Option or convertible security and the
Common Stock deemed issuable upon exercise, conversion or exchange thereof shall
be  deemed  to  have  been  issued as of the date of such change.  No adjustment
pursuant  to  this Section 8(b) shall be made if such adjustment would result in
an  increase  of  the  Warrant  Exercise  Price  then  in  effect.

(iv)     Calculation of Consideration Received.  If any Common Stock, Options or
convertible  securities are issued or sold or deemed to have been issued or sold
for  cash,  the  consideration  received  therefore will be deemed to be the net
amount  received  by  the  Company  therefore.  If  any Common Stock, Options or
convertible  securities  are issued or sold for a consideration other than cash,
the  amount of such consideration received by the Company will be the fair value
of  such  consideration,  except where such consideration consists of marketable
securities,  in  which  case the amount of consideration received by the Company
will  be  the  market  price  of  such securities on the date of receipt of such
securities.  If  any  Common Stock, Options or convertible securities are issued
to the owners of the non-surviving entity in connection with any merger in which
the  Company is the surviving entity, the amount of consideration therefore will
be deemed to be the fair value of such portion of the net assets and business of
the  non-surviving  entity  as  is attributable to such Common Stock, Options or
convertible securities, as the case may be.  The fair value of any consideration
other  than cash or securities will be determined jointly by the Company and the
holders  of  Warrants representing at least two-thirds (b) of the Warrant Shares
issuable  upon  exercise  of the Warrants then outstanding.  If such parties are
unable  to reach agreement within ten (10) days after the occurrence of an event
requiring  valuation  (the  "Valuation  Event"),  the  fair  value  of  such
consideration  will  be determined within five (5) Business Days after the tenth
(10th)  day following the Valuation Event by an independent, reputable appraiser
jointly  selected  by  the  Company  and the holders of Warrants representing at
least  two-thirds  (b)  of  the  Warrant  Shares  issuable  upon exercise of the
Warrants  then  outstanding.  The determination of such appraiser shall be final
and  binding  upon all parties and the fees and expenses of such appraiser shall
be  borne  jointly  by  the  Company  and  the  holders  of  Warrants.

(v)     Integrated  Transactions.  In  case  any  Option is issued in connection
with  the  issue or sale of other securities of the Company, together comprising
one  integrated  transaction  in which no specific consideration is allocated to
such  Options  by  the  parties thereto, the Options will be deemed to have been
issued  for  a  consideration  of  $.01.

(vi)     Treasury  Shares.  The  number of shares of Common Stock outstanding at
any  given  time  does not include shares owned or held by or for the account of
the  Company,  and  the  disposition  of  any  shares  so  owned or held will be
considered  an  issue  or  sale  of  Common  Stock.

(vii)     Record  Date.  If  the Company takes a record of the holders of Common
Stock  for  the  purpose  of  entitling  them (1) to receive a dividend or other
distribution  payable  in  Common Stock, Options or in convertible securities or
(2)  to  subscribe  for  or  purchase  Common  Stock,  Options  or  convertible
securities,  then such record date will be deemed to be the date of the issue or
sale  of  the shares of Common Stock deemed to have been issued or sold upon the
declaration  of  such  dividend  or the making of such other distribution or the
date  of the granting of such right of subscription or purchase, as the case may
be.

(c)     Adjustment  of Warrant Exercise Price upon Subdivision or Combination of
Common  Stock.  If  the  Company  at any time after the date of issuance of this
Warrant  subdivides  (by  any  stock  split, stock dividend, recapitalization or
otherwise)  one or more classes of its outstanding shares of Common Stock into a
greater number of shares, any Warrant Exercise Price in effect immediately prior
to  such subdivision will be proportionately reduced and the number of shares of
Common  Stock  obtainable  upon exercise of this Warrant will be proportionately
increased.  If  the  Company  at  any  time  after  the date of issuance of this
Warrant  combines (by combination, reverse stock split or otherwise) one or more
classes  of  its  outstanding  shares  of  Common Stock into a smaller number of
shares,  any  Warrant  Exercise  Price  in  effect  immediately  prior  to  such
combination  will  be proportionately increased and the number of Warrant Shares
issuable  upon  exercise of this Warrant will be proportionately decreased.  Any
adjustment  under  this  Section  8(c)  shall  become  effective at the close of
business  on  the  date  the  subdivision  or  combination  becomes  effective.

(d)     Distribution  of  Assets.  If  the  Company  shall  declare  or make any
dividend  or  other distribution of its assets (or rights to acquire its assets)
to holders of Common Stock, by way of return of capital or otherwise (including,
without  limitation,  any  distribution  of  cash,  stock  or  other securities,
property  or options by way of a dividend, spin off, reclassification, corporate
rearrangement  or  other  similar  transaction)  (a "Distribution"), at any time
after  the  issuance  of  this  Warrant,  then,  in  each  such  case:

(i)     any  Warrant  Exercise Price in effect immediately prior to the close of
business  on  the  record  date fixed for the determination of holders of Common
Stock entitled to receive the Distribution shall be reduced, effective as of the
close of business on such record date, to a price determined by multiplying such
Warrant  Exercise  Price  by  a fraction of which (A) the numerator shall be the
Closing  Sale Price of the Common Stock on the trading day immediately preceding
such  record  date  minus  the  value of the Distribution (as determined in good
faith  by  the  Company's  Board of Directors) applicable to one share of Common
Stock,  and  (B)  the  denominator shall be the Closing Sale Price of the Common
Stock  on  the  trading  day  immediately  preceding  such  record  date;  and

(ii)     either  (A)  the  number  of Warrant Shares obtainable upon exercise of
this  Warrant  shall  be  increased to a number of shares equal to the number of
shares  of Common Stock obtainable immediately prior to the close of business on
the  record date fixed for the determination of holders of Common Stock entitled
to  receive  the  Distribution  multiplied by the reciprocal of the fraction set
forth  in  the  immediately  preceding  clause (i), or (B) in the event that the
Distribution  is  of common stock of a company whose common stock is traded on a
national  securities exchange or a national automated quotation system, then the
holder  of  this  Warrant shall receive an additional warrant to purchase Common
Stock,  the  terms  of which shall be identical to those of this Warrant, except
that  such warrant shall be exercisable into the amount of the assets that would
have been payable to the holder of this Warrant pursuant to the Distribution had
the holder exercised this Warrant immediately prior to such record date and with
an  exercise  price  equal  to  the  amount  by which the exercise price of this
Warrant  was decreased with respect to the Distribution pursuant to the terms of
the  immediately  preceding  clause  (i).

(e)     Certain  Events.  If  any  event  occurs of the type contemplated by the
provisions  of  this Section 8 but not expressly provided for by such provisions
(including,  without  limitation,  the  granting  of  stock appreciation rights,
phantom  stock  rights or other rights with equity features), then the Company's
Board  of  Directors will make an appropriate adjustment in the Warrant Exercise
Price  and the number of shares of Common Stock obtainable upon exercise of this
Warrant  so  as  to protect the rights of the holders of the Warrants; provided,
except  as  set  forth  in section 8(c),that no such adjustment pursuant to this
Section  8(e) will increase the Warrant Exercise Price or decrease the number of
shares  of  Common  Stock  obtainable  as  otherwise determined pursuant to this
Section  8.

(f)     Voluntary  Adjustments  By  Company.  The Company may at any time during
the  term  of  this Warrant reduce the then current Exercise Price to any amount
and  for  any period of time deemed appropriate by the Board of Directors of the
Company.

(g)     Notices.

(i)     Immediately  upon  any  adjustment  of  the  Warrant Exercise Price, the
Company  will give written notice thereof to the holder of this Warrant, setting
forth  in reasonable detail, and certifying, the calculation of such adjustment.

(ii)     The  Company  will give written notice to the holder of this Warrant at
least  ten  (10) days prior to the date on which the Company closes its books or
takes  a record (A) with respect to any dividend or distribution upon the Common
Stock,  (B) with respect to any pro rata subscription offer to holders of Common
Stock  or  (C) for determining rights to vote with respect to any Organic Change
(as  defined  below), dissolution or liquidation, provided that such information
shall  be  made  known to the public prior to or in conjunction with such notice
being  provided  to  such  holder.

(iii)     The  Company  will  also  give  written  notice  to the holder of this
Warrant  at  least  ten (10) days prior to the date on which any Organic Change,
dissolution or liquidation will take place, provided that such information shall
be  made  known  to the public prior to or in conjunction with such notice being
provided  to  such  holder.

Section 9.     Purchase Rights; Reorganization, Reclassification, Consolidation,
Merger  or  placeCitySale.

(a)     In  addition  to  any adjustments pursuant to Section 8 above, if at any
time  the Company grants, issues or sells any Options, Convertible Securities or
rights to purchase stock, warrants, securities or other property pro rata to the
record  holders  of  any class of Common Stock (the "Purchase Rights"), then the
holder of this Warrant will be entitled to acquire, upon the terms applicable to
such Purchase Rights, the aggregate Purchase Rights which such holder could have
acquired if such holder had held the number of shares of Common Stock acquirable
upon  complete  exercise  of this Warrant immediately before the date on which a
record  is taken for the grant, issuance or sale of such Purchase Rights, or, if
no such record is taken, the date as of which the record holders of Common Stock
are  to  be  determined  for  the  grant, issue or sale of such Purchase Rights.

(b)     Any  recapitalization,  reorganization, reclassification, consolidation,
merger,  sale  of  all  or  substantially all of the Company's assets to another
Person  or  other  transaction in each case which is effected in such a way that
holders  of  Common  Stock  are  entitled  to  receive  (either directly or upon
subsequent  liquidation)  stock,  securities  or  assets  with  respect to or in
exchange  for  Common Stock is referred to herein as an "Organic Change."  Prior
to the consummation of any (i) sale of all or substantially all of the Company's
assets  to  an acquiring Person or (ii) other Organic Change following which the
Company  is  not  a  surviving  entity,  the Company will secure from the Person
purchasing  such  assets or the successor resulting from such Organic Change (in
each  case,  the  "Acquiring Entity") a written agreement (in form and substance
satisfactory  to  the holders of Warrants representing at least two-thirds (iii)
of  the  Warrant Shares issuable upon exercise of the Warrants then outstanding)
to  deliver to each holder of Warrants in exchange for such Warrants, a security
of  the Acquiring Entity evidenced by a written instrument substantially similar
in  form  and  substance  to this Warrant and satisfactory to the holders of the
Warrants  (including  an  adjusted warrant exercise price equal to the value for
the  Common  Stock reflected by the terms of such consolidation, merger or sale,
and  exercisable for a corresponding number of shares of Common Stock acquirable
and  receivable  upon exercise of the Warrants without regard to any limitations
on  exercise,  if  the  value  so  reflected is less than any Applicable Warrant
Exercise  Price immediately prior to such consolidation, merger or sale).  Prior
to  the  consummation  of  any  other  Organic  Change,  the  Company shall make
appropriate  provision  (in  form  and  substance satisfactory to the holders of
Warrants representing a majority of the Warrant Shares issuable upon exercise of
the  Warrants  then  outstanding)  to  insure  that  each  of the holders of the
Warrants  will thereafter have the right to acquire and receive in lieu of or in
addition  to  (as  the  case  may be) the Warrant Shares immediately theretofore
issuable  and  receivable  upon  the exercise of such holder's Warrants (without
regard  to  any  limitations  on  exercise), such shares of stock, securities or
assets  that  would  have  been  issued  or  payable in such Organic Change with
respect to or in exchange for the number of Warrant Shares which would have been
issuable  and  receivable  upon  the exercise of such holder's Warrant as of the
date  of  such  Organic  Change  (without taking into account any limitations or
restrictions  on  the  exercisability  of  this  Warrant).

Section  10.     Lost,  Stolen, Mutilated or Destroyed Warrant.  If this Warrant
is  lost, stolen, mutilated or destroyed, the Company shall promptly, on receipt
of  an  indemnification undertaking (or, in the case of a mutilated Warrant, the
Warrant),  issue a new Warrant of like denomination and tenor as this Warrant so
lost,  stolen,  mutilated  or  destroyed.

Section  11.     Notice.  Any notices, consents, waivers or other communications
required  or  permitted  to  be given under the terms of this Warrant must be in
writing  and  will  be  deemed  to  have been delivered:  (i) upon receipt, when
delivered  personally;  (ii)  upon  receipt,  when  sent  by facsimile (provided
confirmation  of  receipt  is  received  by  the  sending  party transmission is
mechanically or electronically generated and kept on file by the sending party);
or  (iii)  one Business Day after deposit with a nationally recognized overnight
delivery  service,  in  each case properly addressed to the party to receive the
same.  The  addresses  and  facsimile  numbers for such communications shall be:

If to Holder:     Cornell Capital Partners, LP
     addressStreet101 Hudson Street - addressStreetSuite 3700
     placeCityJersey City, StateNJ  PostalCode07302
     Attention:  Mark A. Angelo
     Telephone:  (201) 985-8300
     Facsimile:  (201) 985-8266

With Copy to:     David Gonzalez, Esq.
     addressStreet101 Hudson Street - addressStreetSuite 3700
     placeCityJersey City, StateNJ PostalCode07302
     Telephone:  (201) 985-8300
     Facsimile:  (201) 985-8266

If to the Company, to:     LocatePLUS Holdings Corporation
     100 Cummings Center, addressStreetSuite 235M
     placeCityBeverly, StateMA PostalCode01915
     Attention:  Chief Executive Officer
     Telephone:
     Facsimile:

With a copy to:     Sichenzia Ross Friedman Ference LLP
     1065 Avenue of the placecountry-regionAmericas
     placeCityNew York, StateNY PostalCode10018
     Attention:
     Telephone:   (212) 930-9700
     Facsimile:    (212) 930-9725

If  to  a  holder of this Warrant, to it at the address and facsimile number set
forth  on  Exhibit C hereto, with copies to such holder's representatives as set
forth on Exhibit C, or at such other address and facsimile as shall be delivered
to  the Company upon the issuance or transfer of this Warrant.  Each party shall
provide  five  days'  prior  written  notice to the other party of any change in
address  or  facsimile number.  Written confirmation of receipt (A) given by the
recipient of such notice, consent, facsimile, waiver or other communication, (or
(B)  provided  by  a  nationally  recognized overnight delivery service shall be
rebuttable  evidence of personal service, receipt by facsimile or receipt from a
nationally  recognized overnight delivery service in accordance with clause (i),
(ii)  or  (iii)  above,  respectively.

Section  12.     Date.  The  date of this Warrant is set forth on page 1 hereof.
This  Warrant,  in  all  events, shall be wholly void and of no effect after the
close  of business on the Expiration Date, except that notwithstanding any other
provisions  hereof,  the provisions of Section 8(b) shall continue in full force
and  effect  after such date as to any Warrant Shares or other securities issued
upon  the  exercise  of  this  Warrant.

Section  13.     Amendment and Waiver.  Except as otherwise provided herein, the
provisions  of  the  Warrants may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it,  only  if  the  Company  has  obtained the written consent of the holders of
Warrants  representing  at  least two-thirds of the Warrant Shares issuable upon
exercise  of  the  Warrants  then outstanding; provided that, except for Section
8(d),  no  such  action  may increase the Warrant Exercise Price or decrease the
number  of  shares  or  class  of  stock obtainable upon exercise of any Warrant
without  the  written  consent  of  the  holder  of  such  Warrant.

Section  14.     Descriptive  Headings; Governing Law.  The descriptive headings
of  the  several  sections  and  paragraphs  of  this  Warrant  are inserted for
convenience  only  and  do not constitute a part of this Warrant.  The corporate
laws  of  the State of placeStateDelaware shall govern all issues concerning the
relative  rights  of  the  Company  and  its  stockholders.  All other questions
concerning  the  construction,  validity, enforcement and interpretation of this
Agreement  shall  be  governed  by the internal laws of the State of New Jersey,
without  giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New Jersey or any other jurisdictions) that would cause
the  application  of  the  laws of any jurisdictions other than the State of New
Jersey.  Each  party hereby irrevocably submits to the exclusive jurisdiction of
the  state  and  federal  courts  sitting in Hudson County and the United States
District  Court  for  the  District  of  New Jersey, for the adjudication of any
dispute  hereunder  or  in  connection  herewith  or  therewith,  or  with  any
transaction  contemplated  hereby  or  discussed  herein, and hereby irrevocably
waives,  and  agrees  not to assert in any suit, action or proceeding, any claim
that  it  is  not personally subject to the jurisdiction of any such court, that
such  suit, action or proceeding is brought in an inconvenient forum or that the
venue  of  such  suit,  action  or  proceeding  is  improper.  Each party hereby
irrevocably  waives  personal  service  of process and consents to process being
served  in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such  service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to  serve  process  in  any  manner  permitted  by  law.

SECTION  15.     Waiver  of Jury Trial.  AS A MATERIAL INDUCEMENT FOR EACH PARTY
HERETO  TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO
TRIAL  BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR
ANY  AND  ALL  OF  THE  OTHER  DOCUMENTS  ASSOCIATED  WITH  THIS  TRANSACTION.

                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

<PAGE>
IN  WITNESS  WHEREOF, the Company has caused this Warrant to be signed as of the
date  first  set  forth  above.

     LOCATEPLUS HOLDINGS CORPORATION

     By:
     Name:  Jon R. Latorella
     Title:  President and Chief Executive Officer

<PAGE>

                              EXHIBIT A TO WARRANT

                                 EXERCISE NOTICE

                                 TO BE EXECUTED
                BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                         LOCATEPLUS HOLDINGS CORPORATION

The  undersigned holder hereby exercises the right to purchase ______________ of
the shares of Common Stock ("Warrant Shares") of LocatePLUS Holdings Corporation
(the "Company"), evidenced by the attached Warrant (the "Warrant").  Capitalized
terms  used  herein and not otherwise defined shall have the respective meanings
set  forth  in  the  Warrant.

Specify  Method  of  exercise  by  check  mark:

1.  ___     Cash  Exercise

(a)  Payment  of  Warrant  Exercise  Price.  The  holder shall pay the Aggregate
Exercise Price of $______________ to the Company in accordance with the terms of
the  Warrant.

(b)  Delivery  of  Warrant  Shares.  The  Company  shall  deliver  to the holder
_________  Warrant  Shares  in  accordance  with  the  terms  of  the  Warrant.

     2.  ___     Cashless  Exercise

(a)  Payment  of  Warrant  Exercise  Price.  In  lieu  of  making payment of the
Aggregate  Exercise  Price,  the holder elects to receive upon such exercise the
Net  Number of shares of Common Stock determined in accordance with the terms of
the  Warrant.

(b)  Delivery  of  Warrant  Shares.  The  Company  shall  deliver  to the holder
_________  Warrant  Shares  in  accordance  with  the  terms  of  the  Warrant.

Date: _______________ __, ______

Name of Registered Holder

By:
Name:
Title:

<PAGE>

                              EXHIBIT B TO WARRANT

                              FORM OF WARRANT POWER

FOR  VALUE  RECEIVED,  the  undersigned  does  hereby  assign  and  transfer  to
________________,  Federal  Identification No. __________, a warrant to purchase
____________  shares  of  the  capital  stock of LocatePLUS Holdings Corporation
represented  by  warrant  certificate  no.  _____,  standing  in the name of the
undersigned  on  the  books  of  said  corporation.  The undersigned does hereby
irrevocably  constitute  and  appoint  ______________,  attorney to transfer the
warrants  of  said corporation, with full power of substitution in the premises.

Dated:

     By:
     Name:
     Title:SECURITIES PURCHASE AGREEMENT

     THIS  SECURITIES  PURCHASE  AGREEMENT (this "Agreement"), dated as of March
20,  2007,  by and among LOCATEPLUS HOLDINGS CORPORATION, a Delaware corporation
(the  "Company"),  and  the  Buyers  listed  on  Schedule  I  attached  hereto
(individually,  a  "Buyer"  or  collectively  "Buyers").

                                   WITNESSETH

     WHEREAS,  the  Company  and  the Buyer(s) are executing and delivering this
Agreement in reliance upon an exemption from securities registration pursuant to
Section  4(2) and/or Rule 506 of Regulation D ("Regulation D") as promulgated by
the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act
of  1933,  as  amended  (the  "Securities  Act");

WHEREAS,  the  parties desire that, upon the terms and subject to the conditions
contained  herein, the Company shall issue and sell to the Buyer(s), as provided
herein,  and  the  Buyer(s)  shall  purchase  (i)  up  to  Six  Million  Dollars
($6,000,000)  of  secured  convertible debentures in the form attached hereto as
"Exhibit  A"  (the  "Convertible  Debentures"),  which shall be convertible into
shares  of  the Company's common stock, par value $0.01 (the "Common Stock") (as
converted,  the "Conversion Shares") in the respective amounts set in the column
labeled  "Subscription Amount" set forth opposite each Buyer(s) name on Schedule
I,  and  (ii)  warrants substantially in the form attached hereto as "Exhibit B"
(the  "Warrants"),  to  acquire up to that number of additional shares of Common
Stock  set  forth  opposite such Buyer's name in the Warrant table of Schedule I
(as exercised, the "Warrant Shares") of which Three Million Dollars ($3,000,000)
shall  be  funded  within  three (3) business day following the date hereof (the
"First  Closing"),  Two Million Dollars ($2,000,000) shall be funded on the date
the  registration statement (the "Registration Statement") is filed, pursuant to
the  Registration  Rights  Agreement  dated  the  date hereof, with the SEC (the
"Second  Closing"),  and One Million Dollars ($1,000,000) shall be funded within
three  (3)  business  days after the date the Registration Statement is declared
effective  by  the  SEC  (the  "Third  Closing")  (individually referred to as a
"Closing"  collectively  referred  to  as  the "Closings"), for a total purchase
price  of  up  to  Six  Million  Dollars  ($6,000,000),  (the "Purchase Price");

WHEREAS,  contemporaneously  with  the execution and delivery of this Agreement,
the  parties hereto are executing and delivering a Registration Rights Agreement
(the  "Registration  Rights Agreement") pursuant to which the Company has agreed
to  provide  certain  registration rights under the Securities Act and the rules
and  regulations  promulgated there under, and applicable state securities laws;

WHEREAS, the Convertible Debentures are secured by a security interest in all of
the assets of the Company and of each of the Company's subsidiaries as evidenced
by  the  security  agreement  of  even  date herewith (the "Security Document");

WHEREAS,  contemporaneously  with  the execution and delivery of this Agreement,
the  parties  hereto  are  executing  and  delivering Irrevocable Transfer Agent
Instructions  (the  "Irrevocable  Transfer  Agent  Instructions");  and

<PAGE>

WHEREAS,  the  Convertible  Debentures, the Conversion Shares, the Warrants, and
the  Warrants  Shares  collectively are referred to herein as the "Securities").

NOW,  THEREFORE,  in  consideration of the mutual covenants and other agreements
contained  in  this  Agreement  the  Company  and  the  Buyer(s) hereby agree as
follows:

1.     PURCHASE  AND  SALE  OF  CONVERTIBLE  DEBENTURES.

(a)     Purchase  of  Convertible  Debentures.  Subject  to the satisfaction (or
waiver)  of  the  terms  and  conditions  of  this Agreement, each Buyer agrees,
severally and not jointly, to purchase at each Closing and the Company agrees to
sell  and  issue  to  each  Buyer,  severally  and not jointly, at each Closing,
Convertible Debentures in amounts corresponding with the Subscription Amount set
forth  opposite  each  Buyer's  name  on  Schedule  I hereto and the Warrants to
acquire up that number of Warrant Shares as set forth opposite such Buyer's name
in  Warrant  table  on  Schedule  I  .

(b)     Closing  Dates.  The  First  Closing  of  the  purchase  and sale of the
Convertible  Debentures  and  Warrants  shall  take  place at 10:00 a.m. Eastern
Standard Time on the third (3rd) business day following the date hereof, subject
to notification of satisfaction of the conditions to the First Closing set forth
herein  and  in Sections 6 and 7 below (or such later date as is mutually agreed
to  by  the  Company  and  the  Buyer(s)) (the "First Closing Date"), the Second
Closing  of the purchase and sale of the Convertible Debentures shall take place
at  4:00  p.m.  Eastern  Standard Time on the date the Registration Statement is
filed with the SEC, subject to notification of satisfaction of the conditions to
the Second Closing set forth herein and in Sections 6 and 7 below (or such later
date  as  is  mutually  agreed  to by the Company and the Buyer(s)) (the "Second
Closing  Date"),  and  the  Third  Closing  of  the  purchase  and  sale  of the
Convertible  Debentures  shall take place at 10:00 a.m. Eastern Standard Time on
the  third  (3rd)  business  day immediately following the date the Registration
Statement  is  declared  effective  by  the  SEC,  subject  to  notification  of
satisfaction  of  the  conditions  to  the Third Closing set forth herein and in
Sections  6  and  7  below (or such earlier date as is mutually agreed to by the
Company and the Buyer(s)) (the "Third Closing Date") (collectively referred to a
the  "Closing Dates").  The Closings shall occur on the respective Closing Dates
at  the  offices  of  Yorkville  Advisors,  LLC, 3700 Hudson Street, Suite 3700,
Jersey  City,  New Jersey 07302 (or such other place as is mutually agreed to by
the  Company  and  the  Buyer(s)).

(c)     Form  of  Payment.  Subject  to  the  satisfaction  of  the  terms  and
conditions of this Agreement, on each Closing Date, (i) the Buyers shall deliver
to  the  Company  such  aggregate  proceeds  for  the Convertible Debentures and
Warrants  to be issued and sold to such Buyer at such Closing, minus the fees to
be paid directly from the proceeds of such Closing as set forth herein, and (ii)
the  Company  shall  deliver  to each Buyer, Convertible Debentures and Warrants
which  such  Buyer  is  purchasing at such Closing in amounts indicated opposite
such  Buyer's  name  on  Schedule  I,  duly  executed  on behalf of the Company.

(d)     Establishment  of  Deposit Account, Dominion Account Agreements.  Within
ten  (10)  days  of  the  date  hereof,  the  Company,  the  Buyer,  and  each

<PAGE>
applicable bank or other depository institution shall enter into Deposit Account
Agreements  (as  defined  in the Security Documents) with respect to each of the
Company's  Deposit  Accounts  (as  defined  in the Security Documents) providing
dominion  and  control  over such accounts to the Buyer such that upon notice by
the  Buyer  to such bank or other depository institution of the occurrence of an
Event  of  Default  (as defined in the Convertible Debentures) all actions under
such  account  shall  be  taken  solely  at  the  Buyer's  direction.

2.     BUYER'S  REPRESENTATIONS  AND  WARRANTIES.

Each  Buyer  represents  and  warrants,  severally  and  not  jointly,  that:

(a)     Investment  Purpose.  Each Buyer is acquiring the Securities for its own
account  for  investment  only  and  not  with  a view towards, or for resale in
connection  with,  the  public  sale or distribution thereof, except pursuant to
sales  registered  or exempted under the Securities Act; provided, however, that
by  making  the representations herein, such Buyer reserves the right to dispose
of  the  Securities  at  any time in accordance with or pursuant to an effective
registration  statement covering such Securities or an available exemption under
the  Securities  Act.  Such  Buyer  does  not  presently  have  any agreement or
understanding,  directly or indirectly, with any Person to distribute any of the
Securities.

(b)     Accredited  Investor  Status.  Each Buyer is an "Accredited Investor" as
that  term  is  defined  in  Rule  501(a)(3)  of  Regulation  D.

(c)     Reliance  on Exemptions.  Each Buyer understands that the Securities are
being  offered  and  sold  to  it  in  reliance  on specific exemptions from the
registration requirements of United States federal and state securities laws and
that  the  Company  is  relying in part upon the truth and accuracy of, and such
Buyer's  compliance  with,  the  representations,  warranties,  agreements,
acknowledgments  and  understandings  of such Buyer set forth herein in order to
determine  the availability of such exemptions and the eligibility of such Buyer
to  acquire  the  Securities.

(d)     Information.  Each  Buyer and its advisors (and his or, its counsel), if
any,  have  been furnished with all materials relating to the business, finances
and  operations  of  the Company and information he deemed material to making an
informed  investment  decision  regarding  his purchase of the Securities, which
have  been  requested  by such Buyer.  Each Buyer and its advisors, if any, have
been  afforded  the  opportunity  to  ask  questions  of  the  Company  and  its
management.  Neither  such  inquiries nor any other due diligence investigations
conducted  by  such  Buyer or its advisors, if any, or its representatives shall
modify,  amend  or  affect  such  Buyer's  right  to  rely  on  the  Company's
representations  and  warranties  contained  in  Section  3  below.  Each  Buyer
understands  that  its  investment  in  the Securities involves a high degree of
risk.  Each  Buyer  is  in  a  position regarding the Company, which, based upon
employment,  family  relationship  or  economic  bargaining  power,  enabled and
enables  such  Buyer to obtain information from the Company in order to evaluate
the merits and risks of this investment.  Each Buyer has sought such accounting,
legal  and  tax  advice,  as  it  has  considered  necessary to make an informed
investment  decision  with  respect  to  its  acquisition  of  the  Securities.

<PAGE>
(e)     No  Governmental  Review.  Each  Buyer understands that no United States
federal  or  state  agency  or  any  other government or governmental agency has
passed  on  or  made any recommendation or endorsement of the Securities, or the
fairness  or  suitability  of  the  investment  in the Securities, nor have such
authorities  passed  upon  or  endorsed  the  merits  of  the  offering  of  the
Securities.

(f)     Transfer  or  Resale.  Each Buyer understands that except as provided in
the  Registration Rights Agreement: (i) the Securities have not been and are not
being  registered under the Securities Act or any state securities laws, and may
not  be  offered for sale, sold, assigned or transferred unless (A) subsequently
registered  thereunder,  (B)  such  Buyer shall have delivered to the Company an
opinion  of  counsel,  in  a  generally acceptable form, to the effect that such
Securities  to  be  sold,  assigned  or  transferred  may  be  sold, assigned or
transferred pursuant to an exemption from such registration requirements, or (C)
such  Buyer  provides  the  Company  with  reasonable assurances (in the form of
seller  and  broker  representation  letters)  that such Securities can be sold,
assigned  or  transferred  pursuant  to  Rule  144,  Rule  144(k),  or Rule 144A
promulgated  under  the Securities Act, as amended (or a successor rule thereto)
(collectively, "Rule 144"), in each case following the applicable holding period
set  forth therein; (ii) any sale of the Securities made in reliance on Rule 144
may  be  made only in accordance with the terms of Rule 144 and further, if Rule
144 is not applicable, any resale of the Securities under circumstances in which
the  seller (or the person through whom the sale is made) may be deemed to be an
underwriter  (as  that  term  is  defined  in  the  Securities  Act) may require
compliance  with  some other exemption under the Securities Act or the rules and
regulations  of  the SEC thereunder; and (iii) neither the Company nor any other
person  is  under any obligation to register the Securities under the Securities
Act  or  any state securities laws or to comply with the terms and conditions of
any  exemption  thereunder.

(g)     Legends.  Each Buyer agrees to the imprinting, so long as is required by
this  Section 2(g), of a restrictive legend in substantially the following form:

THE  SECURITIES  REPRESENTED  BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE  SECURITIES  ACT  OF  1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE  SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW  TOWARD  RESALE  AND  MAY  NOT  BE  OFFERED  FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED  IN  THE  ABSENCE  OF  AN  EFFECTIVE  REGISTRATION  STATEMENT  FOR  THE
SECURITIES  UNDER  THE  SECURITIES  ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES  LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

Certificates  evidencing  the  Conversion  Shares  or  Warrant  Shares shall not
contain  any  legend  (including  the  legend  set  forth  above),  (i)  while a
registration  statement  (including  the

<PAGE>
Registration  Statement) covering the resale of such security is effective under
the Securities Act, (ii) following any sale of such Conversion Shares or Warrant
Shares  pursuant  to Rule 144, (iii) if such Conversion Shares or Warrant Shares
are  eligible for sale under Rule 144(k), or (iv) if such legend is not required
under  applicable  requirements  of  the  Securities  Act  (including  judicial
interpretations and pronouncements issued by the staff of the SEC).  The Company
shall cause its counsel to issue a legal opinion to the Company's transfer agent
promptly  after  the  effective  date  (the  "Effective Date") of a Registration
Statement  if  required by the Company's transfer agent to effect the removal of
the  legend  hereunder.  If  all or any portion of the Convertible Debentures or
Warrants  are  exercised  by  a Buyer that is not an Affiliate of the Company (a
"Non-Affiliated  Buyer")  at  a  time  when  there  is an effective registration
statement  to  cover  the resale of the Conversion Shares or the Warrant Shares,
such  Conversion  Shares  or Warrant Shares shall be issued free of all legends.
The  Company  agrees  that  following the Effective Date or at such time as such
legend  is  no  longer  required under this Section 2(g), it will, no later than
three  (3)  Trading Days following the delivery by a Non-Affiliated Buyer to the
Company or the Company's transfer agent of a certificate representing Conversion
Shares  or  Warrant Shares, as the case may be, issued with a restrictive legend
(such  third  Trading  Day,  the  "Legend Removal Date"), deliver or cause to be
delivered  to  such  Non-Affiliated Buyer a certificate representing such shares
that  is  free from all restrictive and other legends.  The Company may not make
any  notation  on  its records or give instructions to any transfer agent of the
Company  that  enlarge  the  restrictions on transfer set forth in this Section.
Each  Buyer  acknowledges  that  the Company's agreement hereunder to remove all
legends from Conversion Shares or Warrant Shares is not an affirmative statement
or  representation  that  such  Conversion  Shares  or Warrant Shares are freely
tradable.  Each  Buyer,  severally and not jointly with the other Buyers, agrees
that  the  removal  of  the  restrictive  legend  from certificates representing
Securities  as  set  forth in this Section 3(g) is predicated upon the Company's
reliance  that  the  buyer  will  sell  any  Securities  pursuant  to either the
registration  requirements  of  the  Securities  Act,  including  any applicable
prospectus  delivery  requirements,  or  an  exemption  therefrom,  and  that if
Securities  are  sold pursuant to a Registration Statement, they will be sold in
compliance  with  the  plan  of  distribution  set  forth  therein.

(h)     Authorization,  Enforcement.  This  Agreement  has been duly and validly
authorized,  executed  and  delivered on behalf of such Buyer and is a valid and
binding agreement of such Buyer enforceable in accordance with its terms, except
as  such  enforceability  may  be  limited  by  general  principles of equity or
applicable  bankruptcy,  insolvency, reorganization, moratorium, liquidation and
other  similar  laws  relating  to,  or  affecting generally, the enforcement of
applicable  creditors'  rights  and  remedies.

(i)     Receipt  of  Documents.  Each  Buyer and his or its counsel has received
and  read  in  their  entirety:  (i)  this  Agreement  and  each representation,
warranty and covenant set forth herein and the Transaction Documents (as defined
herein);  (ii)  all  due diligence and other information necessary to verify the
accuracy  and  completeness  of  such representations, warranties and covenants;
(iii)  the  Company's  Form  10-KSB for the fiscal year ended December 31, 2005;
(iv)  the  Company's Form 10-QSB for the fiscal quarter ended September 30, 2006
and  (v)  answers to all questions each Buyer submitted to the Company regarding
an  investment  in  the  Company;  and  each Buyer has relied on the information
contained  therein  and  has not been furnished any other documents, literature,
memorandum  or  prospectus.

<PAGE>

(j)     Due  Formation  of  Corporate  and  Other  Buyers.  If the Buyer(s) is a
corporation,  trust,  partnership  or  other  entity  that  is not an individual
person, it has been formed and validly exists and has not been organized for the
specific  purpose  of purchasing the Securities and is not prohibited from doing
so.

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

3.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.

Except  as set forth under the corresponding section of the Disclosure Schedules
which  Disclosure  Schedules  shall  be  deemed a part hereof and to qualify any
representation  or  warranty  otherwise  made  herein  to  the  extent  of  such
disclosure,  the  Company  hereby  makes  the representations and warranties set
forth  below  to  each  Buyer:

(a)     Subsidiaries.  All  of  the  direct  and  indirect  subsidiaries  of the
Company  are  set  forth  on  Schedule  3(a).  The  Company  owns,  directly  or
indirectly,  all  of  the  capital  stock  or  other  equity  interests  of each
subsidiary  free  and  clear  of  any  liens, and all the issued and outstanding
shares  of  capital  stock  of  each subsidiary are validly issued and are fully
paid,  non-assessable and free of preemptive and similar rights to subscribe for
or  purchase  securities.

(b)     Organization  and  Qualification.  The  Company and its subsidiaries are
corporations duly organized and validly existing in good standing under the laws
of  the  jurisdiction  in  which  they  are incorporated, and have the requisite
corporate  power  to  own their properties and to carry on their business as now
being  conducted.  Each of the Company and its subsidiaries is duly qualified as
a  foreign  corporation  to  do  business  and  is  in  good  standing  in every
jurisdiction  in  which  the  nature  of the business conducted by it makes such
qualification  necessary,  except  to  the  extent  that  the  failure  to be so
qualified  or  be in good standing would not have  (i) a material adverse effect
on  the legality, validity or enforceability of any Transaction Document, (ii) a
material  adverse  effect  on  the  results  of  operations, assets, business or
condition (financial or otherwise) of the Company and the subsidiaries, taken as
a  whole, or (iii) a material adverse effect on the Company's ability to perform
in  any material respect on a timely basis its obligations under any Transaction
Document  (any  of  (i),  (ii)  or  (iii),  a  "Material Adverse Effect") and no
proceeding  has  been  instituted in any such jurisdiction revoking, limiting or
curtailing  or  seeking  to revoke, limit or curtail such power and authority or
qualification

(c)     Authorization,  Enforcement, Compliance with Other Instruments.  (i) The
Company  has  the  requisite  corporate  power  and  authority to enter into and
perform  its  obligations  under this Agreement, the Convertible Debentures, the
Warrants,  the  Security

<PAGE>
Document,  the  Registration  Rights  Agreement,  the Irrevocable Transfer Agent
Instructions,  and  each  of  the  other  agreements entered into by the parties
hereto  in  connection  with  the  transactions  contemplated  by this Agreement
(collectively  the  "Transaction  Documents")  and  to  issue  the Securities in
accordance with the terms hereof and thereof, (ii) the execution and delivery of
the  Transaction  Documents  by  the  Company  and the consummation by it of the
transactions contemplated hereby and thereby, including, without limitation, the
issuance of the Securities, the reservation for issuance and the issuance of the
Conversion  Shares,  and  the  reservation  for issuance and the issuance of the
Warrant  Shares,  have  been duly authorized by the Company's Board of Directors
and no further consent or authorization is required by the Company, its Board of
Directors  or  its  stockholders, (iii) the Transaction Documents have been duly
executed and delivered by the Company, (iv) the Transaction Documents constitute
the valid and binding obligations of the Company enforceable against the Company
in  accordance with their terms, except as such enforceability may be limited by
general  principles  of  equity  or  applicable  bankruptcy,  insolvency,
reorganization,  moratorium,  liquidation  or  similar  laws  relating  to,  or
affecting  generally,  the  enforcement  of creditors' rights and remedies.  The
authorized  officer  of the Company executing the Transaction Documents knows of
no  reason  why  the  Company cannot file the Registration Statement as required
under  the  Registration  Rights Agreement or perform any of the Company's other
obligations  under  the  Transaction  Documents.

(d)     Capitalization.  The authorized capital stock of the Company consists of
25,000,000 shares of Common Stock of which 10,275,057 shares of Common Stock are
issued  and  outstanding.  All of the outstanding shares of capital stock of the
Company  are  validly  issued, fully paid and nonassessable, have been issued in
compliance  with  all  federal  and  state  securities  laws,  and  none of such
outstanding  shares  was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities.  Except as disclosed in Schedule
3(d): (i) none of the Company's capital stock is subject to preemptive rights or
any  other  similar rights or any liens or encumbrances suffered or permitted by
the  Company;  (ii) there are no outstanding options, warrants, scrip, rights to
subscribe  to,  calls or commitments of any character whatsoever relating to, or
securities  or  rights convertible into, or exercisable or exchangeable for, any
capital  stock  of  the  Company  or  any  of  its  subsidiaries,  or contracts,
commitments,  understandings  or arrangements by which the Company or any of its
subsidiaries  is  or  may  become bound to issue additional capital stock of the
Company  or  any  of  its  subsidiaries  or  options, warrants, scrip, rights to
subscribe  to,  calls or commitments of any character whatsoever relating to, or
securities  or  rights convertible into, or exercisable or exchangeable for, any
capital  stock  of  the  Company  or any of its subsidiaries; (iii) there are no
outstanding  debt  securities,  notes,  credit  agreements, credit facilities or
other  agreements,  documents  or  instruments  evidencing  indebtedness  of the
Company  or  any  of  its  subsidiaries  or  by  which the Company or any of its
subsidiaries  is  bound;  (iv)  there  are  no  financing  statements  securing
obligations in any material amounts, either singly or in the aggregate, filed in
connection  with  the  Company  or  any  of  its  subsidiaries; (v) there are no
outstanding  securities or instruments of the Company or any of its subsidiaries
which  contain any redemption or similar provisions, and there are no contracts,
commitments,  understandings  or arrangements by which the Company or any of its
subsidiaries  is  or may become bound to redeem a security of the Company or any
of  its  subsidiaries;  (vi)  there  are no securities or instruments containing
anti-dilution  or  similar  provisions that will be triggered by the issuance of
the  Securities;  (vii)  the

<PAGE>
Company  does not have any stock appreciation rights or "phantom stock" plans or
agreements  or  any  similar  plan  or agreement; and (viii) the Company and its
subsidiaries  have no liabilities or obligations required to be disclosed in the
SEC  Documents  but  not  so  disclosed  in  the SEC Documents, other than those
incurred in the ordinary course of the Company's or its subsidiaries' respective
businesses and which, individually or in the aggregate, do not or would not have
a  Material  Adverse  Effect.  The  Company  has  furnished  to the Buyers true,
correct  and  complete  copies of the Company's Certificate of Incorporation, as
amended  and  as  in  effect  on  the  date  hereof  (the  "Certificate  of
Incorporation"),  and  the  Company's Bylaws, as amended and as in effect on the
date hereof (the "Bylaws"), and the terms of all securities convertible into, or
exercisable  or exchangeable for, shares of Common Stock and the material rights
of the holders thereof in respect thereto.  No further approval or authorization
of  any stockholder, the Board of Directors of the Company or others is required
for  the  issuance  and  sale  of  the  Securities.  There  are  no stockholders
agreements,  voting  agreements  or other similar agreements with respect to the
Company's  capital stock to which the Company is a party or, to the knowledge of
the  Company,  between  or  among  any  of  the  Company's  stockholders.

(e)     Issuance  of Securities.  The issuance of the Convertible Debentures and
the  Warrants is duly authorized and free from all taxes, liens and charges with
respect  to  the issue thereof.  Upon conversion in accordance with the terms of
the  Convertible  Debentures or exercise in accordance with the Warrants, as the
case may be, the Conversion Shares and Warrant Shares, respectively, when issued
will be validly issued, fully paid and nonassessable, free from all taxes, liens
and  charges  with  respect to the issue thereof.  The Company has reserved from
its  duly  authorized  capital  stock the appropriate number of shares of Common
Stock  as  set  forth  in  this  Agreement.

(f)     No  Conflicts.   The  execution,  delivery  and  performance  of  the
Transaction  Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the
issuance  of  the  Convertible  Debentures and the Warrants, and reservation for
issuance  and issuance of the Conversion Shares and the Warrant Shares) will not
(i)  result  in  a violation of any certificate of incorporation, certificate of
formation, any certificate of designations or other constituent documents of the
Company  or  any of its subsidiaries, any capital stock of the Company or any of
its  subsidiaries  or  bylaws  of the Company or any of its subsidiaries or (ii)
conflict  with,  or constitute a default (or an event which with notice or lapse
of  time or both would become a default) in any respect under, or give to others
any  rights  of  termination,  amendment,  acceleration  or cancellation of, any
agreement,  indenture  or  instrument  to  which  the  Company  or  any  of  its
subsidiaries  is  a  party,  or  (iii)  result  in a violation of any law, rule,
regulation,  order,  judgment  or  decree  (including foreign, federal and state
securities  laws  and  regulations and the rules and regulations of the National
Association  of  Securities Dealers Inc.'s OTC Bulletin Board) applicable to the
Company  or  any  of  its  subsidiaries or by which any property or asset of the
Company  or  any of its subsidiaries is bound or affected; except in the case of
each  of  clauses  (ii)  and  (iii),  such  as could not, individually or in the
aggregate,  have a Material Adverse Effect.  The business of the Company and its
subsidiaries  is not being conducted, and shall not be conducted in violation of
any  material  law, ordinance, or regulation of any governmental entity.  Except
as  specifically  contemplated  by  this  Agreement  and  as  required under the
Securities  Act  and  any  applicable  state securities laws, the Company is not
required  to  obtain  any  consent,

<PAGE>
authorization or order of, or make any filing or registration with, any court or
governmental  agency  in  order for it to execute, deliver or perform any of its
obligations  under  or contemplated by this Agreement or the Registration Rights
Agreement  in  accordance  with  the  terms  hereof  or  thereof.  All consents,
authorizations,  orders, filings and registrations which the Company is required
to  obtain  pursuant to the preceding sentence have been obtained or effected on
or  prior  to  the  date  hereof.

(g)     SEC Documents; Financial Statements.  The Company has filed all reports,
schedules, forms, statements and other documents required to be filed by it with
the  SEC  under  the  Securities Exchange Act of 1934, as amended (the "Exchange
Act"),  for  the  two years preceding the date hereof (or such shorter period as
the Company was required by law or regulation to file such material) (all of the
foregoing  filed  prior  to the date hereof or amended after the date hereof and
all exhibits included therein and financial statements and schedules thereto and
documents  incorporated  by  reference therein, being hereinafter referred to as
the  "SEC  Documents") on timely basis or has received a valid extension of such
time  of  filing  and has filed any such SEC Document prior to the expiration of
any  such  extension.  The  Company  has  delivered  to  the  Buyers  or  their
representatives,  or  made  available  through  the  SEC's  website  at
http://www.sec.gov., true and complete copies of the SEC Documents.  As of their
respective  dates,  the SEC Documents complied in all material respects with the
requirements  of  the  Exchange  Act  and  the  rules and regulations of the SEC
promulgated  thereunder  applicable  to  the  SEC Documents, and none of the SEC
Documents,  at  the  time  they  were  filed  with the SEC, contained any untrue
statement  of a material fact or omitted to state a material fact required to be
stated  therein  or  necessary  in  order to make the statements therein, in the
light  of  the  circumstances under which they were made, not misleading.  As of
their  respective dates, the financial statements of the Company included in the
SEC  Documents  complied  as  to  form  in all material respects with applicable
accounting  requirements and the published rules and regulations of the SEC with
respect  thereto.  Such  financial  statements  have been prepared in accordance
with  generally accepted accounting principles, consistently applied, during the
periods  involved  (except  (i)  as may be otherwise indicated in such financial
statements  or  the  notes  thereto,  or  (ii)  in the case of unaudited interim
statements,  to  the  extent  they  may exclude footnotes or may be condensed or
summary  statements)  and  fairly present in all material respects the financial
position  of  the  Company  as  of  the  dates  thereof  and  the results of its
operations  and  cash  flows for the periods then ended (subject, in the case of
unaudited  statements,  to  normal  year-end  audit  adjustments).  No  other
information  provided by or on behalf of the Company to the Buyers in connection
with  the  transaction  contemplated  hereby  which  is  not included in the SEC
Documents,  including,  without  limitation,  information referred to in Section
2(i)  of  this  Agreement,  contains  any untrue statement of a material fact or
omits  to  state  any  material  fact  necessary in order to make the statements
therein,  in the light of the circumstance under which they are or were made and
not  misleading.

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

<PAGE>
(i)     Absence of Litigation.  There is no action, suit, proceeding, inquiry or
investigation  before  or  by  any  court,  public  board,  government  agency,
self-regulatory  organization  or body pending against or affecting the Company,
the  Common  Stock  or any of the Company's subsidiaries, wherein an unfavorable
decision,  ruling  or  finding  would  (i)  have  a  Material  Adverse  Effect.

(j)     Acknowledgment Regarding Buyer's Purchase of the Convertible Debentures.
The  Company  acknowledges  and  agrees  that each Buyer is acting solely in the
capacity  of  an  arm's  length purchaser with respect to this Agreement and the
transactions  contemplated  hereby.  The  Company further acknowledges that each
Buyer  is  not  acting as a financial advisor or fiduciary of the Company (or in
any  similar  capacity)  with  respect  to  this  Agreement and the transactions
contemplated  hereby  and  any  advice  given  by  each  Buyer  or  any of their
respective  representatives  or agents in connection with this Agreement and the
transactions  contemplated  hereby is merely incidental to such Buyer's purchase
of  the  Securities.  The  Company  further  represents  to  each Buyer that the
Company's  decision  to  enter  into this Agreement has been based solely on the
independent  evaluation  by  the  Company  and  its  representatives.

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

(l)     No Integrated Offering.  Neither the Company, nor any of its affiliates,
nor  any  person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security,
under  circumstances that would require registration of the Securities under the
Securities  Act  or  cause this offering of the Securities to be integrated with
prior  offerings  by  the  Company  for  purposes  of  the  Securities  Act.

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

(n)     Intellectual  Property  Rights.  The Company and its subsidiaries own or
possess  adequate rights or licenses to use all trademarks, trade names, service
marks,  service  mark  registrations,  service  names,  patents,  patent rights,
copyrights,  inventions, licenses, approvals, governmental authorizations, trade
secrets  and  rights  necessary  to  conduct  their respective businesses as now
conducted.  The  Company  and  its subsidiaries do not have any knowledge of any
infringement by the Company or its subsidiaries of trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service
marks,  service  mark  registrations,  trade  secret  or other similar rights of
others,  and,  to  the  knowledge  of  the  Company there is no claim, action or
proceeding  being  made or brought against, or to the Company's knowledge, being
threatened  against,  the  Company  or  its  subsidiaries  regarding

<PAGE>
trademark,  trade  name,  patents, patent rights, invention, copyright, license,
service  names, service marks, service mark registrations, trade secret or other
infringement;  and  the Company and its subsidiaries are unaware of any facts or
circumstances  which  might  give  rise  to  any  of  the  foregoing.

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

(p)     Title.  All real property and facilities held under lease by the Company
and  its  subsidiaries  are held by them under valid, subsisting and enforceable
leases  with  such  exceptions as are not material and do not interfere with the
use  made  and proposed to be made of such property and buildings by the Company
and  its  subsidiaries.

(q)     Insurance.  The  Company  and  each  of  its  subsidiaries is insured by
insurers  of  recognized  financial responsibility against such losses and risks
and  in  such  amounts  as  management of the Company believes to be prudent and
customary  in  the  businesses  in  which  the  Company and its subsidiaries are
engaged.  Neither  the  Company  nor  any  such  subsidiary has been refused any
insurance  coverage  sought  or applied for and neither the Company nor any such
subsidiary  has  any  reason  to  believe  that it will not be able to renew its
existing  insurance  coverage  as  and  when  such coverage expires or to obtain
similar  coverage  from  similar  insurers  as  may be necessary to continue its
business at a cost that would not materially and adversely affect the condition,
financial  or  otherwise, or the earnings, business or operations of the Company
and  its  subsidiaries,  taken  as  a  whole.

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

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

(t)     No  Material  Adverse Breaches, etc.  Neither the Company nor any of its
subsidiaries is subject to any charter, corporate or other legal restriction, or
any  judgment,  decree,  order,  rule or regulation which in the judgment of the
Company's  officers  has  or  is

<PAGE>
expected  in  the  future  to  have  a  Material Adverse Effect on the business,
properties,  operations, financial condition, results of operations or prospects
of  the  Company  or  its  subsidiaries.  Neither  the  Company  nor  any of its
subsidiaries  is  in  breach  of  any contract or agreement which breach, in the
judgment  of  the  Company's  officers,  has  or  is expected to have a Material
Adverse  Effect  on  the  business, properties, operations, financial condition,
results  of  operations  or  prospects  of  the  Company  or  its  subsidiaries.

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

(v)     Certain  Transactions.  Except for arm's length transactions pursuant to
which  the  Company makes payments in the ordinary course of business upon terms
no  less  favorable  than  the Company could obtain from third parties and other
than  the  grant  of  stock  options disclosed in the SEC Documents, none of the
officers,  directors,  or  employees  of the Company is presently a party to any
transaction with the Company (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the  furnishing  of  services to or by, providing for rental of real or personal
property  to  or  from,  or otherwise requiring payments to or from any officer,
director  or such employee or, to the knowledge of the Company, any corporation,
partnership,  trust  or other entity in which any officer, director, or any such
employee  has  a  substantial  interest  or  is an officer, director, trustee or
partner.

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

(x)     Investment  Company. The Company is not, and is not an affiliate of, and
immediately  after  receipt  of payment for the Securities, will not be or be an
affiliate  of,  an  "investment  company"  within  the meaning of the Investment
Company  Act  of  1940, as amended.  The Company shall conduct its business in a
manner  so  that  it  will  not  become  subject  to the Investment Company Act.

(y)     Registration  Rights.  Other  than each of the Buyers, no Person has any
right  to  cause the Company to effect the registration under the Securities Act
of  any  securities  of  the  Company.  There  are  no  outstanding registration
statements  not  yet  declared

<PAGE>
effective and there are no outstanding comment letters from the SEC or any other
regulatory  agency.

(z)     Private  Placement. Assuming the accuracy of the Buyers' representations
and  warranties set forth in Section 2, no registration under the Securities Act
is  required  for  the  offer  and  sale of the Securities by the Company to the
Buyers as contemplated hereby. The issuance and sale of the Securities hereunder
does  not  contravene  the  rules  and  regulations  of  the  Primary  Market.

(aa)     Listing  and  Maintenance  Requirements.  The Company's Common Stock is
registered  pursuant  to  Section  12(b)  or  12(g) of the Exchange Act, and the
Company  has taken no action designed to terminate, or which to its knowledge is
likely  to  have the effect of, terminating the registration of the Common Stock
under  the  Exchange  Act nor has the Company received any notification that the
SEC is contemplating terminating such registration.  The Company has not, in the
twelve  (12)  months preceding the date hereof, received notice from any Primary
Market  on  which the Common Stock is or has been listed or quoted to the effect
that  the  Company  is  not  in  compliance  with  the  listing  or  maintenance
requirements  of  such  Primary  Market.  The  Company  is, and has no reason to
believe that it will not in the foreseeable future continue to be, in compliance
with  all  such  listing  and  maintenance  requirements.

(bb)     Manipulation  of  Price.  The  Company has not, and to its knowledge no
one  acting  on  its  behalf  has, (i) taken, directly or indirectly, any action
designed to cause or to result in the stabilization or manipulation of the price
of  any  security  of the Company to facilitate the sale or resale of any of the
Securities,  (ii)  sold,  bid  for,  purchased,  or,  paid  any compensation for
soliciting  purchases  of, any of the Securities, or (iii) paid or agreed to pay
to  any  Person  any  compensation  for soliciting another to purchase any other
securities  of  the  Company, other than, in the case of clauses (ii) and (iii),
compensation  paid  to  the  Company's  placement  agent  in connection with the
placement  of  the  Securities.

(cc)     Dilutive  Effect.  The  Company  understands  and acknowledges that the
number  of  Conversion  Shares  issuable  upon  conversion  of  the  Convertible
Debentures  and  the  Warrant Shares issuable upon exercise of the Warrants will
increase  in  certain  circumstances.  The Company further acknowledges that its
obligation  to  issue  Conversion  Shares  upon  conversion  of  the Convertible
Debentures  in accordance with this Agreement and the Convertible Debentures and
its  obligation  to  issue  the  Warrant Shares upon exercise of the Warrants in
accordance  with  this Agreement and the Warrants, in each case, is absolute and
unconditional  regardless  of the dilutive effect that such issuance may have on
the  ownership  interests  of  other  stockholders  of  the  Company.

4.     COVENANTS.

(a)     Best  Efforts.  Each  party shall use its best efforts to timely satisfy
each  of the conditions to be satisfied by it as provided in Sections 6 and 7 of
this  Agreement.

(b)     Form  D.  The  Company  agrees  to  file  a  Form  D with respect to the
Securities  as required under Regulation D and to provide a copy thereof to each
Buyer  promptly

<PAGE>
after  such filing.  The Company shall, on or before the Closing Date, take such
action  as  the  Company  shall reasonably determine is necessary to qualify the
Securities,  or obtain an exemption for the Securities for sale to the Buyers at
the Closing pursuant to this Agreement under applicable securities or "Blue Sky"
laws  of the states of the United States, and shall provide evidence of any such
action  so  taken  to  the  Buyers  on  or  prior  to  the  Closing  Date.

(c)     Reporting  Status.  Until  the  earlier  of (i) the date as of which the
Buyer(s)  may  sell  all  of the Securities without restriction pursuant to Rule
144(k)  promulgated under the Securities Act (or successor thereto), or (ii) the
date  on which (A) the Buyers shall have sold all the Securities and (B) none of
the  Convertible  Debentures  or  Warrants  are  outstanding  (the "Registration
Period"),  the  Company shall file in a timely manner all reports required to be
filed  with  the SEC pursuant to the Exchange Act and the regulations of the SEC
thereunder, and the Company shall not terminate its status as an issuer required
to file reports under the Exchange Act even if the Exchange Act or the rules and
regulations  thereunder  would  otherwise  permit  such  termination.

(d)     Use of Proceeds.  The Company will use the proceeds from the sale of the
Convertible  Debentures  for  general  corporate  and  working capital purposes.

(e)     Reservation  of Shares.  On the date hereof, the Company shall initially
reserve  14,000,000  shares  of  Common  Stock  for  issuance to the Buyers upon
conversions  of  the  Convertible  Dentures  or  exercise  of  the  Warrants
(collectively, the "Initial Share Reserve").  The Company represents that it has
sufficient  authorized  and  unissued shares of Common Stock available to create
the  Initial  Share  Reserve  after  considering  all other commitments that may
require  the  issuance  of  Common  Stock.  After  the  Company  increases  its
authorized  Common  Stock  in  accordance  with Section 4(r) hereof, the Company
shall  promptly  increase  the Initial Share Reserve to a total share reserve of
100,000,000  shares  for issuance upon conversions of the Convertible Debentures
and  exercise  of the Warrants (collectively, the "Share Reserve").  The Company
shall  take all action reasonably necessary to at all times have authorized, and
reserved  for  the purpose of issuance, such number of shares of Common Stock as
shall  be  necessary to effect the full conversion of the Convertible Debentures
and  the  full  exercise  of  the Warrants.  If at any time the Share Reserve is
insufficient  to effect the full conversion of the Convertible Debentures or the
full  exercise  of  the  Warrants,  the Company shall increase the Share Reserve
accordingly.  If  the  Company  does not have sufficient authorized and unissued
shares  of  Common  Stock  available  to increase the Share Reserve, the Company
shall  call  and  hold a special meeting of the shareholders within seventy five
(75)  days  of such occurrence, for the sole purpose of increasing the number of
shares authorized.  The Company's management shall recommend to the shareholders
to  vote in favor of increasing the number of shares of Common Stock authorized.
Management  shall  also vote all of its shares in favor of increasing the number
of  authorized  shares  of  Common  Stock.

(f)     Listings  or  Quotation.  The  Company's Common Stock shall be listed or
quoted for trading on any of (a) the American Stock Exchange, (b) New York Stock
Exchange,  (c)  the  Nasdaq Global Market, (d) the Nasdaq Capital Market, or (e)
the Nasdaq OTC Bulletin Board ("OTCBB") (each, a "Primary Market").  The Company
shall  promptly  secure  the  listing  of  all of the Registrable Securities (as
defined  in  the  Registration  Rights  Agreement)

<PAGE>
upon  each  national securities exchange and automated quotation system, if any,
upon  which  the  Common  Stock  is  then  listed (subject to official notice of
issuance)  and  shall  maintain  such listing of all Registrable Securities from
time  to  time  issuable  under  the  terms  of  the  Transaction  Documents.

(g)     Fees  and  Expenses.

(i)     Each  of  the  Company and the Buyer(s) shall pay all costs and expenses
incurred  by  such  party  in  connection  with  the negotiation, investigation,
preparation,  execution  and delivery of the Transaction Documents.  The Company
shall  pay  Yorkville  Advisors,  LLC  a  fee  equal to five percent (5%) of the
Purchase  Price which shall be paid pro rata directly from the gross proceeds of
each  Closing.

(ii)     The  Company shall pay a structuring and due diligence fee to Yorkville
Advisors,  LLC  of  Twenty  Thousand  Dollars  ($20,000),  of which Ten Thousand
Dollars ($10,000) has been paid and the remaining Ten Thousand Dollars ($10,000)
shall  be  paid  directly  from  the  proceeds  of  the  First  Closing.

(h)     Corporate  Existence.  So  long  as  any  of  the Convertible Debentures
remain  outstanding, the Company shall not directly or indirectly consummate any
merger,  reorganization,  restructuring, reverse stock split consolidation, sale
of  all  or substantially all of the Company's assets or any similar transaction
or  related  transactions  (each  such  transaction, an "Organizational Change")
unless,  prior to the consummation an Organizational Change, the Company obtains
the  written  consent  of  each  Buyer.  In any such case, the Company will make
appropriate  provision  with  respect  to  such holders' rights and interests to
insure that the provisions of this Section 4(h) will thereafter be applicable to
the  Convertible  Debentures.

(i)     Transactions With Affiliates.  So long as any Convertible Debentures are
outstanding, the Company shall not, and shall cause each of its subsidiaries not
to,  enter  into, amend, modify or supplement, or permit any subsidiary to enter
into,  amend,  modify  or  supplement any agreement, transaction, commitment, or
arrangement  with any of its or any subsidiary's officers, directors, person who
were  officers  or  directors  at  any  time  during the previous two (2) years,
stockholders who beneficially own five percent (5%) or more of the Common Stock,
or  Affiliates  (as  defined  below)  or  with  any individual related by blood,
marriage,  or  adoption  to  any such individual or with any entity in which any
such  entity  or individual owns a five percent (5%) or more beneficial interest
(each  a  "Related Party"), except for (a) customary employment arrangements and
benefit  programs on reasonable terms, (b) any investment in an Affiliate of the
Company,  (c)  any  agreement,  transaction,  commitment,  or  arrangement on an
arms-length  basis  on  terms no less favorable than terms which would have been
obtainable  from  a  person  other  than  such Related Party, (d) any agreement,
transaction,  commitment,  or arrangement which is approved by a majority of the
disinterested directors of the Company; for purposes hereof, any director who is
also  an  officer of the Company or any subsidiary of the Company shall not be a
disinterested  director  with  respect  to  any  such  agreement,  transaction,
commitment, or arrangement.  "Affiliate" for purposes hereof means, with respect
to  any person or entity, another person or entity that, directly or indirectly,
(i)  has  a  ten percent (10%) or more equity interest in that person or entity,
(ii)  has  ten  percent  (10%)  or

<PAGE>
more  common ownership with that person or entity, (iii) controls that person or
entity,  or (iv) shares common control with that person or entity.  "Control" or
"controls"  for  purposes  hereof  means  that a person or entity has the power,
direct  or  indirect,  to  conduct  or  govern the policies of another person or
entity.

(j)     Transfer  Agent.  The  Company  covenants  and agrees that, in the event
that  the  Company's  agency  relationship  with  the  transfer  agent should be
terminated  for  any  reason  prior  to  a date which is two (2) years after the
Closing  Date,  the  Company  shall immediately appoint a new transfer agent and
shall  require  that the new transfer agent execute and agree to be bound by the
terms  of  the  Irrevocable  Transfer  Agent  Instructions  (as defined herein).

(k)     Restriction on Issuance of the Capital Stock. So long as any Convertible
Debentures  are  outstanding, except with respect to shares of stock issued upon
the exercise of options and warrants outstanding on the date hereof, the Company
shall  not, without the prior written consent of the Buyer(s), (i) issue or sell
shares  of  Common  Stock  or  Preferred  Stock  without  consideration or for a
consideration  per  share less than the bid price of the Common Stock determined
immediately  prior  to  its  issuance,  (ii) issue any preferred stock, warrant,
option,  right,  contract,  call,  or  other security or instrument granting the
holder  thereof the right to acquire Common Stock without consideration or for a
consideration  less  than  such  Common Stock's Bid Price determined immediately
prior  to  it's  issuance, (iii) enter into any security instrument granting the
holder  a  security  interest in any and all assets of the Company, or (iv) file
any  registration  statement  on  Form  S-8.

(l)     Neither  the  Buyer(s)  nor  any  of  its  affiliates have an open short
position  in  the  Common  Stock of the Company, and the Buyer(s) agrees that it
shall  not,  and  that  it will cause its affiliates not to, engage in any short
sales of or hedging transactions with respect to the Common Stock as long as any
Convertible  Debentures  shall  remain  outstanding.

(m)     Rights  of  First  Negotiation.  For a period of 18 months from the date
hereof,  if  the  Company intends to raise additional capital by the issuance or
sale of capital stock of the Company, including without limitation shares of any
class  of  common  stock, any class of preferred stock, options, warrants or any
other securities convertible or exercisable into shares of common stock (whether
the  offering  is  conducted by the Company, underwriter, placement agent or any
third party) the Company shall be obligated to offer to the Buyers such issuance
or  sale  of  capital  stock,  by  providing  in writing the principal amount of
capital  it  intends  to raise and outline of the material terms of such capital
raise,  prior  to  the  offering  such issuance or sale of capital stock  to any
third  parties  including,  but  not  limited  to, current or former officers or
directors,  current  or  former  shareholders  and/or  investors of the obligor,
underwriters,  brokers,  agents  or  other third parties.  The Buyers shall have
five  (5)  business  days from receipt of such notice of the sale or issuance of
capital  stock  to  accept  or  reject  all or a portion of such capital raising
offer.

(n)     Lock  Up  Agreements.  On the date hereof, the Company shall obtain from
each  officer  and  director, who is the beneficial owner of an amount of shares
equal

<PAGE>
to one percent (1%) or more of the Company's  outstanding Common Stock as of the
date  hereof,  a  lock  up  agreement  in the form attached hereto as Exhibit C.

(o)     Additional  Registration  Statements.  Until  the  effective date of the
initial  Registration  Statement,  the  Company  will  not  file  a registration
statement  under  the  Securities  Act  relating  to securities that are not the
Securities.

(p)     Review  of  Public  Disclosures.  All  SEC  filings  (including, without
limitation,  all  filings  required  under the Exchange Act, which include Forms
10-Q and 10-QSB, 10-K and 10K-SB, 8-K, etc) and other public disclosures made by
the  Company,  including,  without  limitation,  all  press  releases,  investor
relations  materials,  and  scripts  of  analysts  meetings  and calls, shall be
reviewed  and approved for release by the Company's attorneys and, if containing
financial  information,  the Company's independent certified public accountants.

(q)     Disclosure  of Transaction.  Within four Business Day following the date
of  this  Agreement,  the  Company  shall  file  a  Current  Report  on Form 8-K
describing  the  terms  of  the  transactions  contemplated  by  the Transaction
Documents  in  the  form required by the Exchange Act and attaching the material
Transaction  Documents  (including, without limitation, this Agreement, the form
of  the  Convertible  Debenture,  the  form  of  Warrant  and  the  form  of the
Registration  Rights  Agreement)  as  exhibits  to  such  filing.

(r)     Increase  Authorized.     The  Company  shall  use  its  best efforts to
effectuate an increase of its authorized Common Stock to an amount sufficient to
accommodate  the  Share  Reserve  in full compliance with applicable laws within
seventy  five  (75)  days  of  the  date  hereof.

(s)     First  Priority Lien.     The Company shall promptly enter into a payoff
and  settlement  agreement  ("Payoff  Agreement") with Dutchess Private Equities
Fund, L.P. and Dutchess Private Equities Fund, II, LP (collectively, "Dutchess")
in  a  form reasonably acceptable to the Buyer, pursuant to which Dutchess shall
agree  to  relinquish any and all rights to any lien on, or security interest in
any  assets  of  the  Company  and  authorizing  the Company to file termination
statements  for  any  UCC  filings  relating  to  the  forgoing.

(t)     UCC-3  Termination  Statements.  Within  three  (3) Business Days of the
First  Closing  Date,  the  Company  shall  file,  or  cause  to be filed, UCC-3
Termination  Statements with respect to all liens recorded by Laurus Master Fund
Ltd., Boston Financial and Equity Corp., and Duthcess, and deliver proof of such
filings  to  the  Buyer.

(u)     The  Company  shall  use  its  best  efforts  to  obtain a subordination
agreement,  in  a  form  reasonably  satisfactory  to  the  Buyer, with Cummings
Properties  LLC.

5.     TRANSFER  AGENT  INSTRUCTIONS.

(a)     The  Company  shall issue the Irrevocable Transfer Agent Instructions to
its  transfer  agent,  and any subsequent transfer agent, irrevocably appointing
David Gonzalez, Esq. as the Company's agent for purpose instructing its transfer
agent  to  issue

<PAGE>
certificates or credit shares to the applicable balance accounts at The Deposity
Trust  Company  ("DTC"),  registered in the name of each Buyer or its respective
nominee(s),  for  the  Conversion  Shares  and  the  Warrant  Shares issued upon
conversion  of  the  Convertible  Debentures  or  exercise  of  the  Warrants as
specified  from time to time by each Buyer to the Company upon conversion of the
Convertible  Debentures  or  exercise  of  the  Warrants.  The Company shall not
change  its  transfer  agent  without the express written consent of the Buyers,
which  may  be  withheld  by  the  Buyers in their sole discretion.  The Company
warrants  that  no  instruction  other  than  the  Irrevocable  Transfer  Agent
Instructions  referred  to  in this Section 5, and stop transfer instructions to
give  effect  to  Section  2(g)  hereof (in the case of the Conversion Shares or
Warrant  Shares  prior  to registration of such shares under the Securities Act)
will  be  given  by  the  Company to its transfer agent, and that the Securities
shall  otherwise  be freely transferable on the books and records of the Company
as  and  to  the  extent  provided  in  this Agreement and the other Transaction
Documents.  If  a Buyer effects a sale, assignment or transfer of the Securities
in  accordance  with  Section  2(f),  the  Company  shall  promptly instruct its
transfer  agent  to  issue  one  or  more  certificates  or credit shares to the
applicable  balance  accounts  at  DTC in such name and in such denominations as
specified  by  such  Buyer to effect such sale, transfer or assignment and, with
respect  to  any  transfer,  shall  permit the transfer.  In the event that such
sale,  assignment or transfer involves Conversion Shares or Warrant Shares sold,
assigned  or  transferred  pursuant  to  an  effective registration statement or
pursuant  to  Rule  144,  the  transfer agent shall issue such Securities to the
Buyer,  assignee  or  transferee,  as  the  case may be, without any restrictive
legend.    Nothing  in  this  Section  5  shall  affect  in  any way the Buyer's
obligations  and  agreement  to  comply with all applicable securities laws upon
resale  of  Conversion  Shares.  The Company acknowledges that a breach by it of
its  obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby.  Accordingly, the
Company  acknowledges  that  the  remedy  at law for a breach of its obligations
under  this Section 5 will be inadequate and agrees, in the event of a breach or
threatened  breach  by the Company of the provisions of this Section 5, that the
Buyer(s)  shall  be entitled, in addition to all other available remedies, to an
injunction restraining any breach and requiring immediate issuance and transfer,
without  the  necessity  of  showing economic loss and without any bond or other
security  being  required.

6.     CONDITIONS  TO  THE  COMPANY'S  OBLIGATION  TO  SELL.

The  obligation  of  the  Company  hereunder  to  issue and sell the Convertible
Debentures to the Buyer(s) at the Closings is subject to the satisfaction, at or
before  the  Closing  Dates,  of each of the following conditions, provided that
these  conditions  are  for  the Company's sole benefit and may be waived by the
Company  at  any  time  in  its  sole  discretion:

(a)     Each  Buyer  shall have executed the Transaction Documents and delivered
them  to  the  Company.

(b)     The  Buyer(s) shall have delivered to the Company the Purchase Price for
the  Convertible  Debentures and Warrants in the respective amounts as set forth
next to each Buyer as set forth on Schedule I attached hereto, minus any fees to
be  paid  directly  from  the proceeds the Closings as set forth herein, by wire
transfer  of  immediately available U.S. funds pursuant to the wire instructions
provided  by  the  Company.

<PAGE>

(c)     The  representations  and  warranties  of the Buyer(s) shall be true and
correct  in all material respects as of the date when made and as of the Closing
Dates  as  though  made  at that time (except for representations and warranties
that  speak  as  of  a  specific  date),  and the Buyer(s) shall have performed,
satisfied  and  complied in all material respects with the covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with  by  the  Buyer(s)  at  or  prior  to  the  Closing  Dates.

7.     CONDITIONS  TO  THE  BUYER'S  OBLIGATION  TO  PURCHASE.

(a)     The  obligation  of  the  Buyer(s) hereunder to purchase the Convertible
Debentures at the First Closing is subject to the satisfaction, at or before the
First  Closing  Date,  of  each  of  the  following  conditions:

(i)     The  Company shall have executed the Transaction Documents and delivered
the  same  to  the  Buyers.

(ii)     The  Common  Stock  shall be authorized for quotation or trading on the
Primary  Market,  trading  in the Common Stock shall not have been suspended for
any  reason,  and  all the Conversion Shares issuable upon the conversion of the
Convertible  Debentures  shall be approved for listing or trading on the Primary
Market.

(iii)     The  representations  and  warranties of the Company shall be true and
correct  in  all  material  respects  (except  to  the  extent  that any of such
representations and warranties is already qualified as to materiality in Section
3  above,  in  which case, such representations and warranties shall be true and
correct  without  further  qualification) as of the date when made and as of the
First  Closing  Date as though made at that time (except for representations and
warranties  that  speak  as  of  a  specific  date)  and  the Company shall have
performed,  satisfied  and complied in all material respects with the covenants,
agreements  and conditions required by this Agreement to be performed, satisfied
or  complied  with  by  the  Company  at  or  prior  to  the  First Closing Date

(iv)     The  Company  shall  have  executed  and  delivered to the Buyer(s) the
Convertible Debentures and Warrants in the respective amounts set forth opposite
each  Buyer's  name  on  Schedule  I  attached  hereto.

(v)     The Buyers shall have received an opinion of counsel from counsel to the
Company  in  a  form  satisfactory  to  the  Buyers.

(vi)     The  Company  shall  have  provided  to  the  Buyers  a  true copy of a
certificate  of  good standing evidencing the formation and good standing of the
Company from the secretary of state (or comparable office) from the jurisdiction
in  which  the Company is incorporated, as of a date within 10 days of the First
Closing  Date.

(vii)     The Company shall have delivered to the Buyers a certificate, executed
by  the  Secretary  of  the  Company  and dated as of the First Closing Date, as

<PAGE>
to  (i) the resolutions consistent with Section 3(c) as adopted by the Company's
Board  of  Directors  in  a  form  reasonably acceptable to such Buyer, (ii) the
Certificate  of  Incorporation  and  (iii)  the Bylaws, each as in effect at the
First  Closing.

(viii)     The  Company shall have filed a form UCC-1 or such other forms as may
be  required to perfect the Buyer's interest in the Pledged Property as detailed
in  the  Security  Agreement  dated  the  date hereof and provided proof of such
filing  to  the  Buyer(s).

(ix)     The Company shall have provided to the Buyer an acknowledgement, to the
satisfaction  of  the  Buyer,  from  the  Company's independent certified public
accountants  as to its ability to provide all consents required in order to file
a  registration  statement  in  connection  with  this  transaction.

(x)     The  Company  shall  have  created  the  Initial  Share  Reserve.

(xi)     The  Irrevocable  Transfer  Agent  Instructions,  in form and substance
satisfactory  to  the  Buyer,  shall  have been delivered to and acknowledged in
writing  by  the  Company's  transfer  agent.

(xii)     The  Company and Dutchess shall have entered into the Payoff Agreement
and  the  Company  shall  have  satisfied  all conditions precedent to Dutchess'
obligations  to  relinquish  any  and  all  rights  to  any lien on, or security
interest  in  any  assets  of  the  Company  except for the payment of the First
Payment  (as  defined  in  the  Payoff  Agreement).

(b)     The  obligation  of  the  Buyer(s)  hereunder  to accept the Convertible
Debentures  at  the  Second Closing is subject to the satisfaction, at or before
the  Second  Closing  Date,  of  each  of  the  following  conditions:

(i)     The  Common  Stock  shall  be authorized for quotation or trading on the
Primary  Market,  trading  in the Common Stock shall not have been suspended for
any  reason,  and  all the Conversion Shares issuable upon the conversion of the
Convertible  Debentures  shall be approved for listing or trading on the Primary
Market.

(ii)     The  representations  and  warranties  of the Company shall be true and
correct  in  all  material  respects  (except  to  the  extent  that any of such
representations and warranties is already qualified as to materiality in Section
3  above,  in  which case, such representations and warranties shall be true and
correct  without  further  qualification) as of the date when made and as of the
Second  Closing Date as though made at that time (except for representations and
warranties  that  speak  as  of  a  specific  date)  and  the Company shall have
performed,  satisfied  and complied in all material respects with the covenants,
agreements  and conditions required by this Agreement to be performed, satisfied
or  complied  with  by  the  Company  at  or  prior  to the Second Closing Date.

(iii)     The  Company  shall  have  executed  and  delivered  to the Buyers the
Convertible  Debentures in the respective amounts set forth opposite each Buyers
name  on  Schedule  I  attached  hereto.

<PAGE>

(iv)     The  Company  shall  have  filed,  or  certify that it will file on the
Second  Closing  Date,  the  Registration  Statement  with the SEC materially in
compliance  with  the  rules  and  regulations promulgated by the SEC for filing
thereof.

(v)     The  Company shall have filed a proxy statement with the SEC, materially
in  compliance  with the rules and regulations promulgated by the SEC for filing
thereof,  to  effectuate  an  increase  of  its  authorized  Common  Stock.

(vi)     The  Company  shall  have  certified,  in a certificate executed by two
officers  of  the  Company  and  dated  as  of the Second Closing Date, that all
conditions  to  the  Second  Closing  have  been  satisfied.

(c)     The  obligation  of  the  Buyers  hereunder  to  accept  the Convertible
Debentures at the Third Closing is subject to the satisfaction, at or before the
Third  Closing  Date,  of  each  of  the  following  conditions:

(i)     The  Common  Stock  shall  be authorized for quotation or trading on the
Primary  Market,  trading  in the Common Stock shall not have been suspended for
any  reason,  and  all the Conversion Shares issuable upon the conversion of the
Convertible  Debentures  shall be approved for listing or trading on the Primary
Market.

(ii)     The  representations  and  warranties  of the Company shall be true and
correct  in  all  material  respects  (except  to  the  extent  that any of such
representations and warranties is already qualified as to materiality in Section
3  above,  in  which case, such representations and warranties shall be true and
correct  without  further  qualification) as of the date when made and as of the
Third  Closing  Date as though made at that time (except for representations and
warranties  that  speak  as  of  a  specific  date)  and  the Company shall have
performed,  satisfied  and complied in all material respects with the covenants,
agreements  and conditions required by this Agreement to be performed, satisfied
or  complied  with  by  the  Company  at  or  prior  to  the Third Closing Date.

(iii)      The  Company  shall  have  executed  and  delivered to the Buyers the
Convertible  Debentures in the respective amounts set forth opposite each Buyers
name  on  Schedule  I  attached  hereto.

(iv)      The  Registration  Statement shall have been declared effective by the
SEC.

(v)     The  Company  shall  have  filed  its  certificate  of  amendment to its
certificate  of  incorporation  increasing  its  authorized  Common  Stock  in
accordance  with Section 4(r) hereof and created the Share Reserve in accordance
with  Section  4(e)  hereof.

(vi)     The  Company  shall  have  certified,  in a certificate executed by two
officers  of  the  Company  and  dated  as  of  the Third Closing Date, that all
conditions  to  the  Third  Closing  have  been  satisfied.

<PAGE>

     8.     INDEMNIFICATION.

(a)     In consideration of the Buyer's execution and delivery of this Agreement
and  acquiring  the  Convertible Debentures and the Conversion Shares hereunder,
and  in addition to all of the Company's other obligations under this Agreement,
the  Company shall defend, protect, indemnify and hold harmless the Buyer(s) and
each  other  holder of the Convertible Debentures and the Conversion Shares, and
all  of  their  officers,  directors,  employees  and agents (including, without
limitation,  those  retained in connection with the transactions contemplated by
this Agreement) (collectively, the "Buyer Indemnitees") from and against any and
all  actions,  causes  of action, suits, claims, losses, costs, penalties, fees,
liabilities  and  damages, and expenses in connection therewith (irrespective of
whether  any  such  Buyer  Indemnitee  is  a  party  to  the  action  for  which
indemnification  hereunder  is sought), and including reasonable attorneys' fees
and  disbursements  (the  "Indemnified  Liabilities"),  incurred  by  the  Buyer
Indemnitees or any of them as a result of, or arising out of, or relating to (a)
any  misrepresentation  or  breach of any representation or warranty made by the
Company  in  this Agreement, the Convertible Debentures or the other Transaction
Documents  or  any other certificate, instrument or document contemplated hereby
or  thereby,  (b)  any  breach  of  any covenant, agreement or obligation of the
Company  contained  in this Agreement, or the other Transaction Documents or any
other certificate, instrument or document contemplated hereby or thereby, or (c)
any cause of action, suit or claim brought or made against such Buyer Indemnitee
and  arising  out  of  or resulting from the execution, delivery, performance or
enforcement  of  this  Agreement  or any other instrument, document or agreement
executed  pursuant hereto by any of the parties hereto, any transaction financed
or to be financed in whole or in part, directly or indirectly, with the proceeds
of  the  issuance  of  the  Convertible Debentures or the status of the Buyer or
holder  of  the  Convertible  Debentures  the  Conversion Shares,  as a Buyer of
Convertible  Debentures  in  the  Company.  To  the  extent  that  the foregoing
undertaking  by  the  Company  may  be unenforceable for any reason, the Company
shall  make  the maximum contribution to the payment and satisfaction of each of
the  Indemnified  Liabilities,  which  is  permissible  under  applicable  law.

(b)     In  consideration  of  the  Company's  execution  and  delivery  of this
Agreement,  and  in  addition to all of the Buyer's other obligations under this
Agreement,  the  Buyer  shall  defend,  protect, indemnify and hold harmless the
Company  and  all  of  its officers, directors, employees and agents (including,
without  limitation,  those  retained  in  connection  with  the  transactions
contemplated  by  this Agreement) (collectively, the "Company Indemnitees") from
and  against  any and all Indemnified Liabilities incurred by the Indemnitees or
any  of  them  as  a  result  of,  or  arising  out  of,  or relating to (a) any
misrepresentation  or  breach  of  any  representation  or  warranty made by the
Buyer(s)  in  this  Agreement,  instrument  or  document  contemplated hereby or
thereby  executed  by  the  Buyer,  (b) any breach of any covenant, agreement or
obligation  of  the  Buyer(s)  contained  in  this  Agreement,  the  Transaction
Documents  or  any other certificate, instrument or document contemplated hereby
or  thereby  executed  by  the  Buyer, or (c) any cause of action, suit or claim
brought  or  made  against  such  Company  Indemnitee  based  on  material
misrepresentations  or  due to a material breach and arising out of or resulting
from  the execution, delivery, performance or enforcement of this Agreement, the
Transaction  Documents  or  any  other  instrument,  document  or  agreement

<PAGE>
executed  pursuant  hereto by any of the parties hereto.  To the extent that the
foregoing  undertaking  by  each Buyer may be unenforceable for any reason, each
Buyer  shall  make  the  maximum contribution to the payment and satisfaction of
each  of the Indemnified Liabilities, which is permissible under applicable law.

9.     GOVERNING  LAW:  MISCELLANEOUS.

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

(b)     Counterparts.  This  Agreement  may be executed in two or more identical
counterparts,  all  of  which shall be considered one and the same agreement and
shall  become  effective  when  counterparts  have been signed by each party and
delivered  to  the other party.  In the event any signature page is delivered by
facsimile  transmission, the party using such means of delivery shall cause four
(4)  additional  original executed signature pages to be physically delivered to
the  other  party  within  five  (5)  days of the execution and delivery hereof.

(c)     Headings.  The  headings  of  this  Agreement  are  for  convenience  of
reference  and  shall  not  form  part of, or affect the interpretation of, this
Agreement.

(d)     Severability.  If  any  provision  of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction  or  the  validity  or  enforceability  of  any  provision  of this
Agreement  in  any  other  jurisdiction.

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

(f)     Notices.  Any  notices,  consents,  waivers,  or  other  communications
required  or  permitted to be given under the terms of this Agreement must be in
writing  and  will  be  deemed  to  have  been  delivered (i) upon receipt, when
delivered personally; (ii) upon confirmation of receipt, when sent by facsimile;
(iii)  three  (3)  days  after being sent by U.S. certified mail, return receipt
requested,  or  (iv)  one  (1)  day  after  deposit  with  a  nationally

<PAGE>
recognized  overnight  delivery  service, in each case properly addressed to the
party  to  receive  the  same.  The  addresses  and  facsimile  numbers for such
communications  shall  be:

If to the Company, to:     LocatePLUS Holdings Corporation
     100 Cummings Center, Suite 235M
     Beverly, MA 01915
     Attention:  Chief Executive Officer
     Telephone:
     Facsimile:

With a copy to:     Sichenzia Ross Friedman Ference LLP
     1065 Avenue of the Americas
     New York, NY 10018
     Attention:
     Telephone:   (212) 930-9700
     Facsimile:    (212) 930-9725

If  to  the  Buyer(s),  to  its address and facsimile number on Schedule I, with
copies  to  the  Buyer's  counsel  as set forth on Schedule I.  Each party shall
provide  five (5) days' prior written notice to the other party of any change in
address  or  facsimile  number.

(g)     Successors  and Assigns.  This Agreement shall be binding upon and inure
to  the  benefit  of  the  parties  and their respective successors and assigns.
Neither  the  Company nor any Buyer shall assign this Agreement or any rights or
obligations  hereunder  without  the  prior  written  consent of the other party
hereto.

(h)     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.

(i)     Survival.  Unless  this  Agreement is terminated under Section 9(l), the
representations  and  warranties  of  the  Company and the Buyer(s) contained in
Sections 2 and 3, the agreements and covenants set forth in Sections 4, 5 and 9,
and  the  indemnification  provisions  set forth in Section 8, shall survive the
Closing  for  a  period  of  two  (2)  years  following  the  date  on which the
Convertible Debentures are converted in full.  The Buyer(s) shall be responsible
only  for  its  own  representations,  warranties,  agreements  and  covenants
hereunder.

(j)     Publicity.  The  Company  and  the  Buyer(s)  shall  have  the  right to
approve,  before  issuance  any press release or any other public statement with
respect  to  the  transactions  contemplated hereby made by any party; provided,
however,  that  the Company shall be entitled, without the prior approval of the
Buyer(s),  to issue any press release or other public disclosure with respect to
such  transactions  required  under  applicable  securities  or  other  laws  or

<PAGE>
regulations  (the  Company shall use its best efforts to consult the Buyer(s) in
connection  with  any such press release or other public disclosure prior to its
release  and  Buyer(s)  shall  be  provided  with  a  copy  thereof upon release
thereof).

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

(l)     Termination.  In  the  event  that  the  First  Closing  shall  not have
occurred with respect to the Buyers on or before five (5) business days from the
date  hereof  due  to  the  Company's  or  the  Buyer's  failure  to satisfy the
conditions  set  forth  in Sections 6 and 7 above (and the non-breaching party's
failure  to  waive such unsatisfied condition(s)), the non-breaching party shall
have the option to terminate this Agreement with respect to such breaching party
at  the  close  of  business  on such date without liability of any party to any
other  party;  provided,  however,  that  if this Agreement is terminated by the
Company  pursuant  to  this  Section 9(l), the Company shall remain obligated to
reimburse  the  Buyer(s)  for  the  fees  and expenses of Yorkville Advisors LLC
described  in  Section  4(g)  above.

(m)     Brokerage.  The  Company  represents  that  no  broker, agent, finder or
other  party  has  been  retained  by  it  in  connection  with the transactions
contemplated  hereby  and that no other fee or commission has been agreed by the
Company  to  be  paid for or on account of the transactions contemplated hereby.

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

                    [REMAINDER PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN WITNESS WHEREOF, each Buyer and the Company have caused their respective
signature  page  to this Securities Purchase Agreement to be duly executed as of
the  date  first  written  above.

     COMPANY:
     LOCATEPLUS HOLDINGS CORPORATION

     By: /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  President and Chief Executive Officer

<PAGE>
IN  WITNESS  WHEREOF,  each  Buyer  and the Company have caused their respective
signature  page  to this Securities Purchase Agreement to be duly executed as of
the  date  first  written  above.

     BUYERS:
     CORNELL CAPITAL PARTNERS, LP

     By:    Yorkville Advisors, LLC
     Its:  Investment Manager

     By:  /s/ Mark Angelo
     Name:  Mark Angelo
     Its:  Portfolio Manager

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