Document:

a5470750ex10-03.htm

    
      Exhibit
        10.03

       

    

     

    TALLY
      HO
      VENTURES, INC.

    

    SHARE
      PURCHASE AGREEMENT

    

    This
      Share
      Purchase Agreement (“Agreement”) is made as of March 1, 2007, by and between
      Tally Ho Ventures, Inc., a Delaware corporation (the “Company”), and the
      purchasers who execute the Purchaser Signature Page hereto (the “Purchaser”) as
      listed on Schedule A hereto.

    

    RECITALS

    

    A. The
      Company desires to obtain funds from each Purchaser in order provide working
      capital, to and further the operations of the Company.

     

    B. The
      Company has already, through the Placement Agent (as hereinafter defined) issued
      206, 992 Shares for an aggregate purchase price of $225,000 and wish to increase
      and continue the offering herein, for an additional $300,000. In order to obtain
      such funds, the Company is offering up to 275,989 shares (i.e. or a total of
      482,981 Shares when combined with the previously issued 206,992 shares) (the
      “Shares”) of common stock, $0.001 per share par value (the “Common Stock”) at a
      purchase price of $1.087 per Share, on the terms and subject to the conditions
      set forth herein, for an aggregate offering price of $300,000 (or an aggregate
      of $525,000 when combined with the $225,000 previously paid). The Shares are
      sometimes referred to herein as the “Securities”. The Shares are provided
      certain demand registration rights as set forth in the Amended and Registration
      Rights Agreement (the “Registration Rights Agreement”) in the form annexed
      hereto as Exhibit A.

     

    C. Prior
      to the Closing, all funds are in Escrow with counsel for the Placement Agent
      and, upon execution hereof by the Company and all of the Purchasers, such funds
      shall be released to the Company and the Placement Agent and their professionals
      and designees in accordance with the terms hereof.

    

    AGREEMENT

    

    It
      is
      agreed as follows:

    

    1. PURCHASE
      AND SALE OF SHARES.

     

    1.1 Purchase
      and Sale.  In reliance upon the representations and warranties of
      the Company and each Purchaser contained herein and subject to the terms and
      conditions set forth herein, at Closing, each Purchaser shall purchase, and
      the
      Company shall sell and issue to each Purchaser, the number of Shares set forth
      on the signature page annexed to the end of this Agreement as executed by such
      Purchaser (the “Purchaser Signature Page”) and which amount is as set forth on
Schedule A hereto, issued in such Purchaser’s name, at a purchase price
      of $1.087 per Share (the “Purchase Price”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.
      CLOSING.

     

    2.1 Date
      and Time.  The initial sale of 206,992 Shares has taken place. The
      sale of Shares will take place in one closing (“Closing”), subject to the
      satisfaction of all the parties hereto of their obligations
      herein.  The Purchasers shall submit an executed copy of this
      Agreement to the Placement Agent along with the Purchase Price.  Once
      a minimum of at least $300,000 of additional subscriptions acceptable to the
      Company (i.e. a total of $525,000 when combined with sale of previous Closing)
      have been provided in escrow from the Purchasers or their designees, along
      with
      funds therefore, the Closing of the sale of Shares contemplated by this
      Agreement shall take place. The Closing shall take place at the offices of
      the
      Company or at such other place as the Company and the Placement Agent (as
      hereinafter defined) and such Purchaser shall agree in writing, on or before
      March 10, 2007, unless otherwise extended by the Company and Placement Agent
      (the “Final Closing Date”).

     

    3. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.

     

    As
      a
      material inducement to each Purchaser to enter into this Agreement and to
      purchase the Shares, the Company represents and warrants that the following
      statements are true and correct in all material respects as of the date hereof
      and will be true and correct in all material respects at Closing, except as
      expressly qualified or modified herein.

     

    3.1 Organization
      and Good Standing.  The Company is a corporation duly organized,
      validly existing, and in good standing under the laws of the State of Delaware
      and has full corporate power and authority to enter into and perform its
      obligations under this Agreement, and to own its properties and to carry on
      its
      business as presently conducted and asproposed to be conducted.  The
      Company and its subsidiaries have all government and other licenses and permits
      and authorizations to do business in all jurisdictions where their activities
      require such license, permits and authorizations.

     

    3.2
      Capitalization.  The Company is authorized to issue 75,000,000
      shares of Common Stock of which, as of the date immediately prior to Closing,
      22,070,531 shares were issued and outstanding, and 0 shares of preferred stock,
      of which no shares are issued and outstanding. All outstanding shares of the
      company’s capital stock have been duly authorized and validly issued, and are
      fully paid, nonassessable, and free of any preemptive rights.

     

    3.3 Authorization.  The
      Company has full power and authority and has taken all requisite action on
      the
      part of the Company, its officers, directors and stockholders necessary for
      (i)
      the authorization, execution and delivery of this Agreement, the Registration
      Rights Agreement and any other transaction documents relating to this Agreement
      (collectively the “Transaction Documents”), (ii) the authorization of the
      performance of all obligations of the Company hereunder or thereunder, and
      (iii)
      the authorization, issuance (or reservation for issuance) and delivery of the
      Securities.  The Transaction Documents constitute the legal, valid and
      binding obligations of the Company, enforceable against the Company in
      accordance with their terms, subject to bankruptcy, insolvency, fraudulent
      transfer, reorganization, moratorium and similar laws of general applicability,
      relating to or affecting creditors’ rights generally.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.4 Valid
      Issuance of Securities.  The Shares have been duly and validly
      authorized and, upon issuance, will be validly issued, fully paid and
      non-assessable.  The Shares, upon issuance, are, or will be, free and
      clear of any security interests, liens, claims or other encumbrances, other
      than
      restrictions upon transfer under federal and state securities laws.

     

    3.5 No
      Violation.  The execution, delivery and performance of this
      Agreement and other Transaction Documents has been duly authorized by the
      Company’s Board of Directors and will not violate any law or any order of any
      court or government agency applicable to the Company, as the case may be, or
      the
      Articles of Incorporation or Bylaws of the Company as in effect on the date
      hereof, and will not result in any breach of or default under, or, except as
      expressly provided herein, result in the creation of any encumbrance upon any
      of
      the assets of the Company pursuant to the terms of any agreement or instrument
      by which the Company or any of its assets may be bound.  No approval
      of or filing with any governmental authority is required for the Company to
      enter into, execute or perform this Agreement or any Transaction
      Document.

     

    3.6
No
      Material Adverse Change.  Since December 31, 2006, except as
      identified and described in the SEC Reports (as defined below) or as described
      on Schedule 3.6, there has not been:

    

    (i) any
      change in the consolidated assets, liabilities, financial condition or operating
      results of the Company from that reflected in the financial statements included
      in the Company’s Quarterly Report on Form 10-QSB for the quarter ended September
      30, 2006, except for changes in the ordinary course of business which have
      not
      had and could not reasonably be expected to have a material adverse effect
      on
      the Company’s assets, properties, financial condition, operating results or
      business of the Company and its subsidiaries taken as a whole (as such business
      is presently conducted and as it is proposed to be conducted) (a “Material
      Adverse Effect”), individually or in the aggregate;

    

    (ii) any
      declaration or payment of any dividend, or any authorization or payment of
      any
      distribution, on any of the capital stock of the Company, or any redemption
      or
      repurchase of any securities of the Company;

    

    (iii) any
      material damage, destruction or loss, whether or not covered by insurance,
      to
      any assets, licenses, government permits, self regulatory agency permit or
      license, or properties of the Company or its subsidiaries;

    

    (iv) any
      waiver, not in the ordinary course of business, by the Company or any subsidiary
      of a material right or of a material debt owed to it;

    

    (v) any
      satisfaction or discharge of any lien, claim or encumbrance or payment of any
      obligation by the Company or a subsidiary, except in the ordinary course of
      business and which has not had a Material Adverse Effect;

    

    (vi) any
      change or amendment to the Company’s Articles of Incorporation or Bylaws, or
      material change to any material contract or arrangement by which the Company
      or
      any subsidiary is bound or to which any of their respective assets or properties
      is subject;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (vii) any
      material labor difficulties, labor disputes, non-compete or similar
      disputes,  or labor union organizing activities with respect to
      employees of the Company or any subsidiary;

    

    (viii) any
      material transaction entered into by the Company or a subsidiary other than
      in
      the ordinary course of business;

    

    (ix)
      the
      loss of the services of any key employee, salesperson, or material change in
      the
      composition or duties of the senior management of the Company or any
      subsidiary;

    

    (x) the
      loss or threatened loss of any customer which has had or could reasonably be
      expected to have a Material Adverse Effect; or

    

    (xi) any
      other event or condition of any character that has had or could reasonably
      be
      expected to have a Material Adverse Effect.

    

    3.7 SEC
      Reports and Financial Statements.

    

    3.7.1 The
      Company has delivered or made available to each Purchaser accurate and complete
      copies (excluding copies of exhibits) of each report, registration statement,
      and definitive proxy statement filed by the Company with the United States
      Securities and Exchange Commission (“SEC”) since September 30, 2006
      (collectively, with all information incorporated by reference therein or deemed
      to be incorporated by reference therein, the “SEC Reports”).  All
      statements, reports, schedules, forms and other documents required to have
      been
      filed by the Company with the SEC have been so filed.  As of the time
      it was filed with the SEC (or, if amended or superseded by a filing prior to
      the
      date of this Agreement, then on the date of such filing): (i) each of the SEC
      Reports complied in all material respects with the applicable requirements
      of
      the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934,
      as amended; and (ii) none of the SEC Reports 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.

    

    3.7.2 Except
      for the pro forma financial statements, the consolidated financial statements
      contained in the SEC Reports: (i) complied as to form in all material respects
      with the published rules and regulations of the SEC applicable thereto; (ii)
      were prepared in accordance with GAAP applied on a consistent basis throughout
      the periods covered (except as may be indicated in the notes to such financial
      statements and, in the case of unaudited statements, as permitted by Form 10-QSB
      of the SEC, and except that unaudited financial statements may not contain
      footnotes and are subject to normal and recurring year-end audit adjustments
      which will not, individually or in the aggregate, be material in amount); and
      (iii) fairly present, in all material respects, the consolidated financial
      position of the Company and its consolidated subsidiaries as of the respective
      dates thereof and the consolidated results of operations of the Company and
      its
      consolidated subsidiaries for the periods covered thereby.  All
      adjustments considered necessary for a fair presentation of the financial
      statements have been included.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.8 Securities
      Law Compliance.  Without consideration of the actions of the
      Placement Agent (as defined in Section 8 herein), and assuming the accuracy
      of
      the representations and warranties of each Purchaser set forth in Section 4
      of
      this Agreement, the offer, issue, sale and delivery of the Shares will
      constitute an exempted transaction under the Securities Act of 1933, as amended
      and now in effect (the “Securities Act”), and registration of the Shares under
      the Securities Act is not required.  The Company shall make such
      filings as may be necessary to comply with the Federal securities laws and
      the
“blue sky” laws of any state, which filings will be made in a timely
      manner.

    

    3.9 No
      Conflict, Breach, Violation or Default.  The execution, delivery
      and performance of the Transaction Documents by the Company and the issuance
      and
      sale of the Shares will not conflict with or result in a breach or violation
      of
      any of the terms and provisions of, or constitute a default under (i) the
      Company’s Restated Certificate of Incorporation or the Company’s Bylaws, both as
      in effect on the date hereof (true and complete copies of which have been made
      available to the Purchasers through the EDGAR system), or (ii) any statute,
      rule, regulation or order of any governmental agency, self regulatory agency,
      securities regulatory or insurance regulatory agency or body or any court,
      domestic or foreign, having jurisdiction over the Company, any subsidiary or
      any
      of their respective assets or properties, or (b) any material agreement or
      instrument to which the Company or any subsidiary is a party or by which the
      Company or a subsidiary is bound or to which any of their respective assets
      or
      properties is
      subject.                                                                          

    

    3.10 Tax
      Matters.  The Company and each subsidiary has timely prepared and
      filed all tax returns required to have been filed by the Company with all
      appropriate governmental agencies and timely paid all taxes shown thereon or
      otherwise owed by it.  The charges, accruals and reserves on the books
      of the Company in respect of taxes for all fiscal periods are adequate in all
      material respects, and there are no material unpaid assessments against the
      Company nor, to the Company’s Knowledge, any basis for the assessment of any
      additional taxes, penalties or interest for any fiscal period or audits by
      any
      federal, state or local taxing authority except for any assessment which is
      not
      material to the Company, taken as a whole.  All taxes and other
      assessments and levies that the Company is required to withhold or to collect
      for payment have been duly withheld and collected and paid to the proper
      governmental entity or third party when due.  There are no tax liens
      or claims pending or, to the Company’s Knowledge, threatened against the Company
      or any subsidiary or any of their respective assets or
      property.  There are no outstanding tax sharing agreements or other
      such arrangements between the Company or other corporation or
      entity.  For the purposes of this agreement, “Company’s Knowledge”
means the actual knowledge of the executive officers (as defined in Rule 405
      under the Securities Act) of the Company, after due inquiry.

    

    3.11 Title
      to Properties. Except as disclosed in the SEC Reports, the Company has
      good and marketable title to all real properties and all other properties and
      assets owned by it, in each case free from liens, encumbrances and defects
      that
      would materially affect the value thereof or materially interfere with the
      use
      made or currently planned to be made thereof by them; and except as disclosed
      in
      the SEC Reports, the Company holds any leased real or personal property under
      valid and enforceable leases with no exceptions that would materially interfere
      with the use made or currently planned to be made thereof by them.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.12 Intellectual
      Property.

    

    (a)
      All
      Intellectual Property of the Company is currently in compliance with all legal
      requirements (including timely filings, proofs and payments of fees) and is
      valid and enforceable.  No Intellectual Property of the Company which
      is necessary for the conduct of Company’s and each of its subsidiaries’
respective businesses as currently conducted or as currently proposed to be
      conducted has been or is now involved in any cancellation, dispute or
      litigation, and, to the Company’s Knowledge, no such action is
      threatened.  No patent of the Company has been or is now involved in
      any interference, reissue, re-examination or opposition proceeding.

    

    (b) All
      of the licenses and sublicenses and consent, royalty or other agreements
      concerning Intellectual Property which are necessary for the conduct of the
      Company’s business as currently conducted or as currently proposed to be
      conducted to which the Company or any subsidiary is a party or by which any
      of
      their assets are bound (other than  generally commercially available,
      non-custom, off-the-shelf software application programs having a retail
      acquisition price of less than $10,000 per license) (collectively, “License
      Agreements”) are valid and binding obligations of the Company  and, to
      the Company’s Knowledge, the other parties thereto, enforceable in accordance
      with their terms, except to the extent that enforcement thereof may be limited
      by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
      or
      other similar laws affecting the enforcement of creditors’ rights generally, and
      there exists no event or condition which will result in a material violation
      or
      breach of or constitute (with or without due notice or lapse of time or both)
      a
      default by the Company under any such License Agreement.

    

    (c) The
      Company own or have the valid right to use all of the Intellectual Property
      that
      is necessary for the conduct of the Company’s and each of its subsidiaries’
respective businesses as currently conducted or as currently proposed to be
      conducted and for the ownership, maintenance and operation of the Company’s and
      its subsidiaries’ properties and assets, free and clear of all liens,
      encumbrances, adverse claims or obligations to license all such owned
      Intellectual Property and Confidential Information, other than licenses entered
      into in the ordinary course of the Company’s and its subsidiaries’
businesses.  The Company has a valid and enforceable right to use all
      third party Intellectual Property and Confidential Information used or held
      for
      use in the respective businesses of the Company and its
      subsidiaries.

    

    (d) To
      the Company’s Knowledge, the conduct of the Company’s business as currently
      conducted does not infringe or otherwise impair or conflict with (collectively,
      “Infringe”) any Intellectual Property rights of any third party or any
      confidentiality obligation owed to a third party, and, to the Company’s
      Knowledge, the Intellectual Property and Confidential Information of the Company
      and its Subsidiaries which are necessary for the conduct of Company’s business
      as currently conducted or as currently proposed to be conducted are not being
      Infringed by any third party.  There is no litigation or order pending
      or outstanding or, to the Company’s Knowledge, threatened or imminent, that
      seeks to limit or challenge or that concerns the ownership, use, validity or
      enforceability of any Intellectual Property or Confidential Information of
      the
      Company and its subsidiaries and the Company’s use of any Intellectual Property
      or Confidential Information owned by a third party, and, to the Company’s
      Knowledge, there is no valid basis for the same.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) The
      consummation of the transactions contemplated hereby and by the other
      Transaction Documents will not result in the alteration, loss, impairment of
      or
      restriction on the Company’s or any of its subsidiaries’ ownership or right to
      use any of the Intellectual Property or Confidential Information which is
      necessary for the conduct of Company’s and each of its subsidiaries’ respective
      businesses as currently conducted or as currently proposed to be
      conducted.

    

    (f) The
      Company has taken reasonable steps to protect the Company’s rights in its
      Intellectual Property and Confidential Information.  Each employee,
      consultant and contractor who has had access to Confidential Information which
      is necessary for the conduct of Company’s and each of its subsidiaries’
respective businesses as currently conducted or as currently proposed to be
      conducted has executed an agreement to maintain the confidentiality of such
      Confidential Information and has executed appropriate agreements that are
      substantially consistent with the Company’s standard forms thereof, except where
      the failure to do so has not had and could not reasonably be expected to have
      a
      Material Adverse Effect, individually or in the aggregate.  Except
      under confidentiality obligations, there has been no material disclosure of
      any
      Confidential Information to any third party.

    

    3.13 Environmental
      Matters.  To the Company’s Knowledge, neither the Company nor any
      subsidiary (if any) (i) is in violation of any statute, rule, regulation,
      decision or order of any governmental agency or body or any court, domestic
      or
      foreign, relating to the use, disposal or release of hazardous or toxic
      substances or relating to the protection or restoration of the environment
      or
      human exposure to hazardous or toxic substances (collectively, “Environmental
      Laws”), (ii) owns or operates any real property contaminated with any substance
      that is subject to any Environmental Laws, (iii) is liable for any off-site
      disposal or contamination pursuant to any Environmental Laws, or (iv) is subject
      to any claim relating to any Environmental Laws, which violation, contamination,
      liability or claim has had or could reasonably be expected to have a Material
      Adverse Effect, individually or in the aggregate; and there is no pending or,
      to
      the Company’s Knowledge, threatened investigation that might lead to such a
      claim.

    

    3.14 Litigation.  Except
      as described in the SEC Reports, there are no pending material actions, suits
      or
      proceedings against or affecting the Company, its subsidiaries or any of its
      or
      their properties; and to the Company’s Knowledge, no such actions, suits or
      proceedings are threatened or contemplated.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.15 No
      Directed Selling Efforts or General Solicitation.  Neither the
      Company nor any Person (excluding the Placement Agent) acting on its behalf
      has
      conducted any general solicitation or general advertising (as those terms are
      used in Regulation D) in connection with the offer or sale of any of the
      Securities.

    

    3.16 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 Company security or solicited any
      offers to buy any security, under circumstances that would adversely affect
      reliance by the Company on Section 4(2) for the exemption from registration
      for
      the transactions contemplated hereby or would require registration of the
      Securities under the Securities Act.  For purposes of this Agreement,
“Affiliate” means, with respect to any Person, any other Person which directly
      or indirectly through one or more intermediaries Controls, is controlled by,
      or
      is under common control with, such Person.

    

    3.17 Questionable
      Payments. Neither the Company nor any of its subsidiaries nor,
      to the Company’s Knowledge, any of their respective current or former
      stockholders, directors, officers, employees, agents or other Persons acting
      on
      behalf of the Company or any subsidiary, has on behalf of the Company or any
      subsidiary or in connection with their respective businesses: (a) used any
      corporate funds for unlawful contributions, gifts, entertainment or other
      unlawful expenses relating to political activity; (b) made any direct or
      indirect unlawful payments to any governmental officials or employees from
      corporate funds; (c) established or maintained any unlawful or unrecorded fund
      of corporate monies or other assets; (d) made any false or fictitious entries
      on
      the books and records of the Company or any subsidiary; or (e) made any unlawful
      bribe, rebate, payoff, influence payment, kickback or other unlawful payment
      of
      any nature.

    

    3.18 Transactions
      with Affiliates.  Except as disclosed in the SEC Reports none of
      the officers or directors of the Company and, to the Company’s Knowledge, none
      of the employees of the Company is presently a party to any transaction with
      the
      Company or any subsidiary (other than as holders of stock options and/or
      warrants, and 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 Company’s Knowledge, any entity in which any officer,
      director, or any such employee has a substantial interest or is an officer,
      director, trustee or partner.

    

    3.19 Internal
      Controls.  Except as set forth in the SEC Reports, the Company is
      in material compliance with the provisions of the Sarbanes-Oxley Act of 2002
      currently applicable to the Company.  The Company and the subsidiaries
      maintain a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management's general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      GAAP and to maintain asset accountability, (iii) access to assets is permitted
      only in accordance with management's general or specific authorization, and
      (iv)
      the recorded accountability for assets is compared with the existing assets
      at
      reasonable intervals and appropriate action is taken with respect to any
      differences. The Company has established disclosure controls and procedures
      (as
      defined in 1934 Act Rules 13a-14 and 15d-14) for the Company and designed such
      disclosure controls and procedures to ensure that material information relating
      to the Company, including the subsidiaries, is made known to the certifying
      officers by others within those entities, particularly during the period in
      which the Company’s most recently filed period report under the 1934 Act, as the
      case may be, is being prepared.  The Company's certifying officers
      have evaluated the effectiveness of the Company's controls and procedures as
      of
      the end of the period covered by the most recently filed periodic report under
      the 1934 Act (such date, the "Evaluation Date").  The Company
      presented in its most recently filed periodic report under the 1934 Act the
      conclusions of the certifying officers about the effectiveness of the disclosure
      controls and procedures based on their evaluations as of the Evaluation
      Date.  Since the Evaluation Date, there have been no significant
      changes in the Company's internal controls (as such term is defined in Item
      308
      of Regulation S-B) or, to the Company's Knowledge, in other factors that could
      significantly affect the Company's internal controls.  The Company
      maintains and will continue to maintain a standard system of accounting
      established and administered in accordance with GAAP and the applicable
      requirements of the 1934 Act.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.20 Disclosures.  Neither
      the Company, the Placement Agent, nor any Person acting on any of their behalf
      has provided the Purchasers or their agents or counsel with any information
      that
      constitutes or might constitute material, non-public information.  The
      written materials delivered to the Purchasers in connection with the
      transactions contemplated by the Transaction Documents do not contain any untrue
      statement of a material fact or omit to state a material fact necessary in
      order
      to make the statements contained therein, in light of the circumstances under
      which they were made, not misleading.

     

    4. REPRESENTATIONS
      AND WARRANTIES OF EACH PURCHASER.

     

    Each
      Purchaser hereby represents, warrants and covenants with the Company as
      follows:

     

    4.1 Legal
      Power.  Each Purchaser has the requisite individual, corporate,
      partnership, limited liability company, trust, or fiduciary power, as
      appropriate, and is authorized, if such Purchaser is a corporation, partnership,
      limited liability company, or trust, to enter into this Agreement, to purchase
      the Shares hereunder, and to carry out and perform its obligations under the
      terms of this Agreement or any other Transaction Documents to which it is a
      party.

     

    4.2 Due
      Execution.  This Agreement and the questionnaire and Purchase
      Signature Page hereto, have been duly authorized, if such Purchaser is a
      corporation, partnership, limited liability company, trust or fiduciary,
      executed and delivered by such Purchaser, and, upon due execution and delivery
      by the Company, this Agreement will be a valid and binding agreement of such
      Purchaser.

     

    4.3 Access
      to Information.  Each Purchaser represents that such Purchaser has
      been given full and complete access to the Company for the purpose of obtaining
      such information as such Purchaser or its qualified representative has
      reasonably requested in connection with the decision to purchase the
      Shares.  Each Purchaser represents that such Purchaser has received
      and reviewed copies of the SEC Reports.  Each Purchaser represents
      that such Purchaser has been afforded the opportunity to ask questions of the
      officers of the Company regarding its business prospects and the Shares, all
      as
      such Purchaser or such Purchaser’s qualified representative have found necessary
      to make an informed investment decision to purchase the Shares.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.4 Restricted
      Securities.

    

    4.4.1 Each
      Purchaser has been advised that none of the Securities have been registered
      under the Securities Act or any other applicable securities laws and that Shares
      are being offered and sold pursuant to Section 4(2) of the Securities Act and/or
      Rule 506 of Regulation D thereunder, and that the Company’s reliance upon
      Section 4(2) and/or Rule 506 of Regulation D is predicated in part on such
      Purchaser representations as contained herein.  Each Purchaser
      acknowledges that the Securities will be issued as “restricted securities” as
      defined by Rule 144 promulgated pursuant to the Securities Act.  None
      of the Securities may be resold in the absence of an effective registration
      thereof under the Securities Act and applicable state securities laws unless,
      in
      the opinion of counsel reasonably satisfactory to the Company, an applicable
      exemption from registration is available.

    

    4.4.2 Each
      Purchaser represents that such Purchaser is acquiring the Shares for such
      Purchaser’s own account, and not as nominee or agent, for investment purposes
      only and not with a view to, or for sale in connection with, a distribution,
      as
      that term is used in Section 2(11) of the Securities Act, in a manner which
      would require registration under the Securities Act or any state securities
      laws.

    

    4.4.3 Each
      Purchaser understands and acknowledges that the certificates representing the
      Shares, when issued, will bear the following legend:

     

    “THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE LAW, AND NO
      INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR
      OTHERWISE TRANSFERRED UNLESS (i) THERE IS AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION
      INVOLVING SAID SECURITIES, (ii) NATALMA INDUSTRIES INCORPORATED (“COMPANY”)
      RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF THESE SECURITIES
      REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH TRANSACTION IS EXEMPT
      FROM REGISTRATION, OR (iii) THE COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH
      TRANSACTION IS EXEMPT FROM REGISTRATION..”

    

    4.4.4 Each
      Purchaser acknowledges that an investment in the Shares is not liquid and is
      transferable only under limited conditions.  Each Purchaser
      acknowledges that such securities must be held indefinitely unless they are
      subsequently registered under the Securities Act or an exemption from such
      registration is available.  Each Purchaser is aware of the provisions
      of Rule 144 promulgated under the Securities Act, which permits limited resale
      of restricted securities subject to the satisfaction of certain conditions
      and
      that such Rule is not now available and, in the future, may not become available
      for resale of any of the Securities.  Each Purchaser is an “accredited
      investor” as defined under Rule 501 under the Securities Act.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.4.5 The
      representations made by each Purchaser on the Purchaser Signature Page are
      true
      and correct.

    

    4.5 Purchaser
      Sophistication and Ability to Bear Risk of Loss.  Each Purchaser
      acknowledges that it is able to protect its interests in connection with the
      acquisition of theShares and can bear the economic risk of investment in such
      securities without producing a material adverse change in such Purchaser’s
      financial condition.  Each Purchaser, either alone or with such
      Purchaser’s representative(s), otherwise has such knowledge and experience in
      financial or business matters that such Purchaser is capable of evaluating
      the
      merits and risks of the investment in the Shares.

    

    4.7 Purchases
      by Groups.  Each Purchaser represents, warrants and covenants that
      it is not acquiring the Shares as part of a group within the meaning of Section
      13(d)(3) of the Securities Exchange Act of 1934, as amended.

     

    5. AGREEMENT
      TO RELEASE FROM ESCROW.

     

    5.1 Release
      of Funds from Escrow upon Execution and Closing. The Purchasers and the
      Company hereby acknowledge that all funds shall be in the Escrow Account prior
      to Closing.  In connection therewith, the Company and Purchasers each
      authorize and instruct the Escrow Agent to disburse funds from Escrow upon
      satisfaction of the closing conditions herein, substantially in accordance
      with
      the terms hereof, as more fully specified by written instruction of the
      Placement Agent and the Company. No consent of Purchasers shall be necessary
      whatsoever in connection with such release and disbursement at Closing, and
      the
      Purchasers and Company jointly and severally indemnify the Escrow Agent and
      Placement Agent for any and all acts taken in good faith to implement the
      foregoing.

     

    6.
      COVENANTS OF THE COMPANY.

     

    6.1 Use
      of Proceeds.  The Company intends to employ the proceeds from the
      purchase and sale of the Shares for general working capital purposes only and
      not for the repayment of any existing debt.  The proceeds from the
      purchase and sale of the Shares may not and will not be used for accrued and
      unpaid officer and director salaries, payment of financing related debt,
      redemption of outstanding notes or equity instruments of the Company, litigation
      related expenses or settlements, Placement Agent fees, nor non-trade obligations
      outstanding on a Closing Date.  Pending the Company’s use of the
      proceeds from the purchase and sale of the Shares, the Company intends to invest
      the funds in government securities and insured, short–term, interest–bearing
      investments of varying maturities.

     

    7.
      CONDITIONS

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.1 Conditions
      Precedent to the Obligation of the Company to Close and to Sell the
      Shares.  The obligation hereunder of the Company to close and
      issue and sell the Shares to the Purchasers at a Closing is subject to the
      satisfaction or waiver, at or before such Closing of the conditions set forth
      below.  These conditions are for the Company’s sole benefit and may be
      waived by the Company at any time in its sole discretion.

    

    7.1.1 Accuracy
      of the Purchasers’ Representations and Warranties.  The
      representations and warranties of each Purchaser shall be true and correct
      in
      all material respects as of the date when made and as of such Closing as though
      made at that time, except for representations and warranties that are expressly
      made as of a particular date, which shall be true and correct in all material
      respects as of such date.

    

    7.1.2 Performance
      by the Purchasers.  Each Purchaser shall have performed,
      satisfied, and complied in all material respects with all covenants, agreements
      and conditions required by this Agreement to be performed, satisfied or complied
      with by the Purchasers at or prior to such Closing.

    

    7.1.3 No
      Injunction.  No statute, rule, regulation, executive order,
      decree, ruling or injunction shall have been enacted, entered, promulgated
      or
      endorsed by any court or governmental authority of competent jurisdiction which
      prohibits the consummation of any of the transactions contemplated by this
      Agreement.

    

    7.1.4 Delivery
      of Purchase Price.  The Purchase Price for the Shares shall be
      available in cleared funds in Escrow and authorized by the Company and Placement
      Agent, in their sole and absolute discretion, for distribution on such Closing
      in accordance with the terms hereof.

    

    7.1.5 Delivery
      of Transaction Documents.  The Transaction Documents shall have
      been duly executed and delivered by the Purchasers to the Company.

    

    7.2 Conditions
      Precedent to the Obligation of the Purchasers to Close and to Purchase the
      Shares.  The obligation hereunder of the Purchasers to purchase
      the Shares and consummate the transactions contemplated by this Agreement is
      subject to the satisfaction or waiver, at or before such Closing, of each of
      the
      conditions set forth below.  These conditions are for the Purchasers’
sole benefit and may be waived by the Purchasers at any time in their sole
      discretion.

    

    7.2.1 Accuracy
      of the Company’s Representations and Warranties.  Each of the
      representations and warranties of the Company in this Agreement and the other
      Transaction Documents shall be true and correct in all material respects as
      of
      such Closing, except for representations and warranties that speak as of a
      particular date, which shall be true and correct in all material respects as
      of
      such date.

    

    7.2.2 Performance
      by the Company.  The Company shall have performed, satisfied and
      complied in all material respects with all covenants, agreements and conditions
      required by this Agreement to be performed, satisfied or complied with by the
      Company at or prior to such Closing.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.2.3 No
      Suspension, Etc.  Trading in the Common Stock of the Company shall
      not have been suspended by the SEC or the OTC Bulletin Board (except for any
      suspension of trading of limited duration agreed to by the Company, which
      suspension shall be terminated prior to the Closing), and, at any time prior
      to
      such Closing, trading in securities generally as reported by Bloomberg Financial
      Markets (“Bloomberg”) shall not have been suspended or limited, or minimum
      prices shall not have been established on securities whose trades are reported
      by Bloomberg, or on the New York Stock Exchange, nor shall a banking moratorium
      have been declared either by the United States or New York State
      authorities.

    

    7.2.4 No
      Injunction.  No statute, rule, regulation, executive order,
      decree, ruling or injunction shall have been enacted, entered, promulgated
      or
      endorsed by any court or governmental authority of competent jurisdiction which
      prohibits the consummation of any of the transactions contemplated by this
      Agreement.

    

    7.2.5 No
      Proceedings or Litigation.  No action, suit or proceeding before
      any arbitrator or any governmental authority shall have been commenced, and
      no
      investigation by any governmental authority shall have been initiated, against
      the Company or any subsidiary, or any of the officers, directors or affiliates
      of the Company or any subsidiary seeking to restrain, prevent or change the
      transactions contemplated by this Agreement, or seeking damages in connection
      with such transactions.

    

    7.2.6 Shares.  At
      the Closing, the Company shall have delivered to the Purchasers the Shares
      or an
      appropriately endorsed instruction to transfer agent for issuance of all Shares
      along with all appropriate board resolutions or other necessary documentation
      in
      order to issue the Shares in such denominations as each Purchaser may
      request.

    

    7.2.7 Secretary’s
      Certificate.  The Company shall have delivered to the Purchasers a
      secretary’s certificate, dated as of the Closing Date, as to (i) the resolutions
      adopted by the Board of Directors approving the transactions contemplated
      hereby, (ii) the Company’s Restated Certificate of Incorporation, (iii) the
      Bylaws, each as in effect at such Closing, and (iv) the authority and incumbency
      of the officers of the Company executing the Transaction Documents and any
      other
      documents required to be executed or delivered in connection
      therewith.

    

    7.2.8 Officer’s
      Certificate. On the Closing Date, the Company shall have delivered to the
      Purchasers a certificate signed by an executive officer on behalf of the
      Company, dated as of such Closing Date, confirming the accuracy of the Company’s
      representations, warranties, and covenants as of such Closing Date and
      confirming the compliance by the Company with the conditions precedent set
      forth
      in paragraphs (7.2.2)-(7.2.5) and (7.2.9) of this Section 7.2 as of such Closing
      (provided that, with respect to the matters in paragraphs (7.2.4) and (7.2.5)
      of
      this Section 7.2, such confirmation shall be based on the knowledge of the
      executive officer after due inquiry).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.2.9 Material
      Adverse Effect.  No Material Adverse Effect shall have occurred at
      or before such Closing Date.

     

    8. PLACEMENT
      AGENT/LEGAL FEES.

     

    8.1 Placement
      Agent’s Commission.   The Company acknowledges that it has
      retained WestPark Capital, Inc. to act as its placement agent (the “Placement
      Agent”). The Company agrees that it will pay the Placement Agent, at each
      Closing, the amount of 9% of the amount raised or an aggregate of $47,250 (of
      which, the parties acknowledge $20,250 has been paid previously at the first
      Closing with an additional $27,000 to be paid at the Final Closing Date) in
      cash
      and 45,000 (of which 18,000 shares of Common Stock were issued at the previous
      Closing with an additional 27,000 to be issued at the Final Closing Date) which
      shall be granted registration rights under the Registration Rights Agreement,
      plus any travel expenses and due diligence costs, any other fees (including
      cash
      compensation, issuance of securities and reimbursement of expenses and the
      like)
      that it has agreed to pay pursuant the agreements between the Company and the
      Placement Agent.

     

    8.2 Legal
      Fees.   The Company shall pay all legal fees of the Placement
      Agent in connection with this Agreement, which fees are currently estimated
      at
      $6,000 (of which $4,000 has been paid previously) plus blue sky and filing
      fees,
      in addition to $500 of fees to the Escrow Agent, and all actual out pocket
      costs
      and damages, if any, in connection with the escrow account.

     

    9. MISCELLANEOUS.

    

    9.1 Indemnification.  Each
      Purchaser agrees to defend, indemnify and hold the Company harmless against
      any
      liability, costs or expenses arising as a result of any dissemination of any
      of
      the Shares by such Purchaser in violation of the Securities Act or applicable
      state securities law.

    

    9.2 Governing
      Law.  The validity and interpretation of this Agreement shall be
      governed by, and construed and enforced in accordance with, the laws of the
      State of New York.  Each of the parties hereto and their assigns
      hereby consents to the exclusive jurisdiction and venue of the Courts of the
      State of New York, located in the City and County of New York and the United
      States District Court, Southern District, for the State of New York with respect
      to any matter relating to this Agreement and performance of the parties’
obligations hereunder, the documents and instruments executed and delivered
      concurrently herewith or pursuant hereto and performance of the parties’
obligations thereunder and each of the parties hereto hereby consents to the
      personal jurisdiction of such courts and shall subject itself to such personal
      jurisdiction.  Any action, suit or proceeding relating to such matters
      shall be commenced, pursued, defended and resolved only in such courts and
      any
      appropriate appellate court having jurisdiction to hear an appeal from any
      judgment entered in such courts.  The parties irrevocably waive the
      defense of an inconvenient forum to the maintenance of such suit or
      proceeding.  Service of process in any action, suit or proceeding
      relating to such matters may be made and served within or outside the State
      of
      New York by registered or certified mail to the parties and their
      representatives at their respective addresses specified in Section 18 hereof,
      provided that a reasonable time, not less than thirty (30) days, is allowed
      for
      response.  Service of process may also be made in such other manner as
      may be permissible under the applicable court rules.  THE PARTIES
      HERETO WAIVE TRIAL BY JURY.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.3 Successors
      and Assigns.  Except as otherwise expressly provided herein, the
      provisions hereof shall inure to the benefit of, and be binding upon, the
      successors, assigns, heirs, executors, and administrators of the parties
      hereto.

    

    9.4 Entire
      Agreement.  This Agreement and the Exhibits hereto and thereto,
      and the other documents delivered pursuant hereto and thereto, constitute the
      full and entire understanding and agreement among the parties with regard to
      the
      subjects hereof and no partyshall be liable or bound to any other party in
      any
      manner by any representations, warranties, covenants, or agreements except
      as
      specifically set forth herein or therein.  Nothing in this Agreement,
      express or implied, is intended to confer upon any party, other than the parties
      hereto and their respective successors and assigns, any rights, remedies,
      obligations, or liabilities under or by reason of this Agreement, except as
      expressly provided herein.

    

    9.5 Severability.  In
      case any provision of this Agreement shall be invalid, illegal, or
      unenforceable, it shall to the extent practicable, be modified so as to make
      it
      valid, legal and enforceable and to retain as nearly as practicable the intent
      of the parties, and the validity, legality, and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

    

    9.6 Amendment
      and Waiver.  Except as otherwise provided herein, any term of this
      Agreement may be amended, and the observance of any term of this Agreement
      may
      be waived (either generally or in a particular instance, either retroactively
      or
      prospectively, and either for a specified period of time or indefinitely),
      with
      the written consent of the Company and the Purchasers, or, to the extent such
      amendment affects only one Purchaser, by the Company and such
      Purchaser.  Any amendment or waiver effected in accordance with this
      Section shall be binding upon each future holder of any security purchased
      under
      this Agreement (including securities into which such securities have been
      converted) and the Company.

    

    9.7 Notices.  All
      notices and other communications required or permitted hereunder shall be in
      writing and shall be effective when delivered personally, or sent by telex
      or
      telecopier (with receipt confirmed), provided that a copy is mailed by
      registered mail, return receipt requested, or when received by the addressee,
      if
      sent by Express Mail, Federal Express or other express delivery service (receipt
      requested) in each case to the appropriate address set forth below:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
        
          	 	
                  If
                    to the Company:

                	
                  Tally
                    Ho Ventures, Inc.

                  115
                    Route d’Arlon

                  L-8311
                    Capellen, Luxembourg

                  Attn:  Nigel
                    Gregg

                  Telephone: (011)
                    352 2630 1540

                  Facsimile: (011)
                    352 2630 1545

                
	 	 	 
	 	
                  With
                    a copy to:

                	
                  Cozen
                    O'Connor

                  
                    1900
                      Market Street

                    Philadelphia,
                      Pennsylvania 19103

                    Attn:
                      F. Alec Orudjev

                    Telephone:
                      (215) 665-5542

                    Facsimile: (215)
                      701-2478

                  

                
	 	 	 
	 	
                  If
                    to the Purchaser:

                	
                  At
                    the address set forth on the Purchaser’s Signature Page

                
	 	 	 
	 	
                  With
                    a copy to:

                	
                  WestPark
                    Capital, Inc.

                  
                    One
                      Penn Plaza, Suite 2411

                    
                      New
                        York, New York 10119

                      
                        Attention:
                          Mark I Lev, Managing Director

                        
                          Telephone:
                            (212)
                            714-0400

                          
                            Facsimile:
                              (212)
                              714-1835

                          

                        

                      

                    

                  

                

        

      

      

    

     

    9.8 Faxes
      and Counterparts.  This Agreement may be executed in one or more
      counterparts.  Delivery of an executed counterpart of the Agreement or
      any exhibit attached hereto by facsimile transmission shall be equally as
      effective as delivery of an executed hard copy of the same.  Any party
      delivering an executed counterpart of this Agreement or any exhibit attached
      hereto by facsimile transmission shall also deliver an executed hard copy of
      the
      same, but the failure by such party to deliver such executed hard copy shall
      not
      affect the validity, enforceability or binding nature effect of this Agreement
      or such exhibit.

    

    9.9 Consent
      of Purchasers.  As used in the Agreement, “consent of the
      Purchasers” or similar language means the consent of holders of not less than
      50% of the total of the outstanding Shares owned by Purchasers on the date
      consent is requested.

    

    9.10 Titles
      and Subtitles.  The titles of the paragraphs and subparagraphs of
      this Agreement are for convenience of reference only and are not to be
      considered in construing this Agreement.

     

    9.11 Further
      Assurances.  At any time and from time to time after the Closing,
      upon reasonable request of the other, each party shall do, execute, acknowledge
      and deliver such further acts, assignments, transfers, conveyances and
      assurances as may be reasonably required for the more complete consummation
      of
      the transactions contemplated herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS
      WHEREOF, the parties have executed this Agreement as of the date set forth
      on
      the Purchase Signature Page hereto.

    
       

      
        	 	
                PURCHASERS:

                 

                
                  Signed

                   

                  
                    COMPANY

                     

                    
                      TALLY
                        HO VENTURES, INC.

                       

                      
                        By:    Nigel
                          Gregg, Chief Executive
                          Officer

                      

                    

                  

                

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    LIST
      OF
      INVESTORS

     

    
      
        	
                Name

              	 	 	
                Dollar
                  Amount Invested 

              	 	
                No.
                  of Shares

              	 
	 	 	 	 	 	 	 
	
                Premier
                  Partners Investments, LLP

                800
                  S. Ocean Blvd., Apt L1

                Boca
                  Raton, FL 33432

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                Irwin
                  Gross & Linda Gross

                800
                  S. Ocean Blvd., Apt L1

                Boca
                  Raton, FL 33432

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                Michael
                  Sheinson Trust

                272
                  S. E. 5th Avenue

                Delray
                  Beach, FL 33482

              	 	$	
                
                

                50,000

              	 	
                
                

                46,000

              	 
	 	 	 	 	 	 	 
	
                Bernard
                  Mermelstan

                11
                  Oak Drive Great Neck

                New
                  York, NY 11021

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                David
                  Sinclair

                Roman
                  House, 296 Guiders Green

                London
                  NW11 9PT, UK

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                Phoenix
                  Capital Worldwide II, LP

                One
                  Penn Plaza, Suite 2411

                New
                  York 10119

              	 	$	
                
                

                100,000

              	 	
                
                

                92,000

              	 
	 	 	 	 	 	 	 
	
                Gilbert
                  & Nancy Baker

                62
                  Mooreland Road

                Greenwich
                  CT 06831

              	 	$	
                
                

                25,000

              	 	
                22,989

              	 
	 	 	 	 	 	 	 
	
                The
                  Continental Trust Company

                Re
                  Kanishka Holdings Trust

                P
                  O
                  Box 829, Forum House, Grenville

                Street,
                  St Helier, Jersey JE4 0UE

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000a5470750ex10-04.htm

    
      Exhibit
        10.04

    

     

     

    REGISTRATION
      RIGHTS AGREEMENT

    

    REGISTRATION
      RIGHTS AGREEMENT (this “Agreement”), dated as of March 1, 2007, by and among
      Tally Ho Ventures, Inc. a Delaware corporation, with an address at 115Route
      d’Arlon, Capellen L8311, Luxembourg (the “Company”), and each of the parties
      listed on Schedule A hereto (together with its respective affiliates and
      any assignee or transferee of all of its respective rights hereunder, the
“Investor”). (The Company and the Investor may sometimes be referred to herein
      individually as a “party” and collectively as the “parties.”)

    

    WHEREAS:

    

    A.
      In
      connection with the Share Purchase Agreement by and among the parties hereto
      of
      even date herewith (the “Purchase Agreement”), the Company has agreed, upon the
      terms and subject to the conditions contained therein, to issue and sell to
      the
      Investors such number of shares of the Company’s common stock (the “Common
      Stock”) as is set forth opposite such Investor’s name on Schedule A hereto (the
“Shares”).

    

    B. The
      Placement Agent or its affiliates have also been issued securities and are
      listed as Investors as set forth on Schedule A which securities are also
      subject to this Agreement.

    

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

    

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

    

    1. DEFINITIONS.

    

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

    

    (i)
      “Investor” means the persons listed on Schedule A hereto and executing a
      signature page hereof, for so long as such persons are holders of Registrable
      Securities and any transferee or assignee who agrees to become bound by the
      provisions of this Agreement in accordance with Section 9 hereof.

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii) “Registrable
      Securities” means the (i) Shares, (ii) any Common Stock issued to the Placement
      Agent or its affiliates in connection with the offering contemplated by the
      Purchase Agreement or otherwise issued in connection with any other related
      consulting or investment banking services provided by the Placement Agent or
      its
      affiliates, and (iii) any shares of capital stock issued or issuable as a
      dividend on or in exchange for or otherwise with respect to any of the
      foregoing.

    

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

    

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

    

    2. REGISTRATION.

    

    a. Mandatory
      Registration.  The Company shall prepare as soon as possible but
      in no event later than one hundred eighty (180) days after the Closing as
      defined in the Purchase Agreement (said filing date being referred to herein
      as
      the “Filing Date”), file with the SEC a Registration Statement on Form SB-2 (or,
      if Form SB-2 is not then available, on such form of Registration Statement
      as is
      then available to effect a registration of the Registrable Securities, subject
      to the consent of the Investor, which consent will not be unreasonably withheld)
      covering the resale of the Registrable Securities or issuable pursuant to the
      Purchase Agreement, which Registration Statement, to the extent allowable under
      the 1933 Act and the rules and regulations promulgated thereunder (including
      Rule 416),  shall state that such Registration Statement also covers
      such indeterminate number of additional shares of Common Stock as equals the
      Bonus Shares.  The number of shares of Common Stock initially included
      in such Registration Statement shall be no less all the Registrable Securities
      plus the Bonus Shares.

    

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

    

    c. Liquidated
      Damages, Adverse Statements to Purchase Price and Conversion
      Price.  The Company shall use its best efforts to obtain
      effectiveness of the Registration Statement as soon as
      practicable.  If (i) the Registration Statement(s) covering all of the
      Registrable Securities required to be filed by the Company pursuant to Section
      2(a) hereof is not filed by the Filing Date or declared effective by the SEC
      on
      or prior to the ten month anniversary (the “Registration Deadline”) of the
      Closing, as defined in the Purchase Agreement (or if such Registration Statement
      is withdrawn or the number of Registrable Securities is related), or (ii) after
      the Registration Statement has been declared effective by the SEC, sales of
      all
      of the Registrable Securities cannot be made pursuant to the Registration
      Statement, or (iii) the Common Stock is not listed or included for quotation
      on
      the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq
      SmallCap”), the New York Stock Exchange (the “NYSE”) or the American Stock
      Exchange (the “AMEX”) after being so listed or included for quotation, or (iv)
      the Common Stock ceases to be traded on the Over-the-Counter Bulletin Board
      (the
“OTCBB”) prior to being listed or included for quotation on one of the
      aforementioned markets, then  each Investor shall receive a one time
      bonus of such number of additional shares of Common Stock as equals 10% of
      the
      number of Registrable Securities held by such Investor. Such Bonus Shares shall
      also be deemed Registrable Securities and this Agreement shall remain in full
      force and effect.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

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

    

    
      
        
        

      

      
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    3. OBLIGATIONS
      OF THE COMPANY.  In connection with the registration of the
      Registrable Securities, the Company shall have the following
      obligations:

    

    a. The
      Company shall prepare promptly, and file with the SEC not later than the Filing
      Date, a Registration Statement with respect to the number of Registrable
      Securities provided in Section 2(a), and thereafter use its best efforts to
      cause such Registration Statement relating to Registrable Securities to become
      effective as soon as possible after such filing and keep the Registration
      Statement effective pursuant to Rule 415 at all times until such date as is
      the
      earlier of (i) the date on which all of the Registrable Securities have been
      sold and (ii) the date on which the Registrable Securities (in the opinion
      of
      counsel to the Investor) may be immediately sold to the public without
      registration or restriction (including without limitation as to volume by each
      Investor thereof) under the 1933 Act (the “Registration Period”), which
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall not contain any untrue statement of a
      material fact or omit to state a material fact required to be stated therein,
      or
      necessary to make the statements therein not misleading.

    

    b. The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statements and
      the prospectus used in connection with the Registration Statements as may be
      necessary to keep the Registration Statements effective at all times during
      the
      Registration Period, and, during such period, comply with the provisions of
      the
      1933 Act with respect to the disposition of all Registrable Securities of the
      Company until such time as all of such Registrable Securities have been disposed
      of in accordance with the intended methods of disposition by the seller or
      sellers thereof as set forth in the Registration Statements.  In the
      event the number of shares available under a Registration Statement filed
      pursuant to this Agreement is or becomes insufficient to cover all of the
      Registrable Securities as may be amended from time to time, the Company shall
      amend the Registration Statement, or file a new Registration Statement (on
      the
      short form available therefore, if applicable), or both, so as to cover all
      of
      the Registrable Securities, in each case, as soon as practicable, but in any
      event within twenty (20) business days after the necessity therefor arises
      (based on the market price of the Common Stock and other relevant factors on
      which the Company reasonably elects to rely).  The Company shall use
      its best efforts to cause such amendment and/or new Registration Statement
      to
      become effective as soon as practicable following the filing thereof, but in
      any
      event within sixty (60) days after the date on which the Company reasonably
      first determines (or reasonably should have determined) the need
      therefor.  The provisions of Section 2(c) above shall be applicable
      with respect to such obligation.

    

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

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

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

    

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

    

    f. As
      promptly as practicable after becoming aware of such event, the Company shall
      notify each Investor of the happening of any event, of which the Company has
      knowledge, as a result of which the prospectus included in any Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, and use its best efforts promptly
      to
      prepare a supplement or amendment to any Registration Statement to correct
      such
      untrue statement or omission, and deliver such number of copies of such
      supplement or amendment to each Investor as such Investor may reasonably
      request; provided that, for not more than thirty (30) consecutive trading days
      (or a total of not more than forty-five (45) trading days in any twelve (12)
      month period), the Company may delay the disclosure of material non-public
      information concerning the Company (as well as prospectus or Registration
      Statement updating) the disclosure of which at the time is not, in the good
      faith opinion of the Company, in the best interests of the Company (an “Allowed
      Delay”); provided, further, that the Company shall promptly (i) notify the
      Investor in writing of the existence of (but in no event, without the prior
      written consent of an Investor, shall the Company disclose to such Investor
      any
      of the facts or circumstances regarding) material non-public information giving
      rise to an Allowed Delay and (ii) advise the Investor in writing to cease all
      sales under such Registration Statement until the end of the Allowed Delay.
      Upon
      expiration of the Allowed Delay, the Company shall again be bound by the first
      sentence of this Section 3(f) with respect to the information giving rise
      thereto.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

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

    

    h. The
      Company shall permit a single firm of counsel designated by the majority of
      Investors to review such Registration Statement and all amendments and
      supplements thereto (as well as all requests for acceleration or effectiveness
      thereof) a reasonable period of time prior to their filing with the SEC (but
      in
      no event less than ten (10) days), and not file any document in a form to which
      such counsel reasonably objects and will not request acceleration of such
      Registration Statement without prior notice to such counsel.  The
      sections of such Registration Statement covering information with respect to
      the
      Investor, the Investor’s beneficial ownership of securities of the Company or
      the Investor intended method of disposition of Registrable Securities shall
      conform to the information provided to the Company by each of the
      Investor.

    

    i. The
      Company shall make generally available to its security Investors as soon as
      practicable, but not later than ninety (90) days after the close of the period
      covered thereby, an earnings statement (in form complying with the provisions
      of
      Rule 158 under the 1933 Act) covering a twelve-month period beginning not later
      than the first day of the Company’s fiscal quarter next following the effective
      date of the Registration Statement.

    

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

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    k. The
      Company shall make available for inspection by (i) any Investor, (ii) any
      underwriter participating in any disposition pursuant to a Registration
      Statement, (iii) one firm of attorneys and one firm of accountants or other
      agents retained by the Investor, (iv) one firm of attorneys and one firm of
      accountants or other agents retained by all other Investor, and (v) one firm
      of
      attorneys retained by all such underwriters (collectively, the “Inspectors”) all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company (collectively, the “Records”), as shall be reasonably
      deemed necessary by each Inspector to enable each Inspector to exercise its
      due
      diligence responsibility, and cause the Company’s officers, directors and
      employees to supply all information which any Inspector may reasonably request
      for purposes of such due diligence; provided, however, that each
      Inspector shall hold in confidence and shall not make any disclosure (except
      to
      an Investor) of any Record or other information which the Company determines
      in
      good faith to be confidential, and of which determination the Inspectors are
      so
      notified, unless (a) the disclosure of such Records is necessary to avoid or
      correct a misstatement or omission in any Registration Statement, (b) the
      release of such Records is ordered pursuant to a subpoena or other order from
      a
      court or government body of competent jurisdiction, or (c) the information
      in
      such Records has been made generally available to the public other than by
      disclosure in violation of this or any other agreement.  The Company
      shall not be required to disclose any confidential information in such Records
      to any Inspector until and unless such Inspector shall have entered into
      confidentiality agreements (in form and substance satisfactory to the Company)
      with the Company with respect thereto, substantially in the form of this Section
      3(k).  Each Investor agrees that it shall, upon learning that
      disclosure of such Records is sought in or by a court or governmental body
      of
      competent jurisdiction or through other means, give prompt notice to the Company
      and allow the Company, at its expense, to undertake appropriate action to
      prevent disclosure of, or to obtain a protective order for, the Records deemed
      confidential.  Nothing herein (or in any other confidentiality
      agreement between the Company and any Investor) shall be deemed to limit the
      Investor’s ability to sell Registrable Securities in a manner which is otherwise
      consistent with applicable laws and regulations.

    

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

    

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

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

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

    

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

    

    p. At
      the request of the Investors, holders of a majority-in-interest of the
      Registrable Securities, (or, in the case of and Registrable Securities
      originally issued to the Placement Agent or its affiliates, then Welfleet
      Partners, Inc.) the Company shall prepare and file with the SEC such amendments
      (including post-effective amendments) and supplements to a Registration
      Statement and any prospectus used in connection with the Registration Statement
      as may be necessary in order to change the plan of distribution set forth in
      such Registration Statement.

    

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

    

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

    

    4. OBLIGATIONS
      OF THE INVESTOR.  In connection with the registration of the
      Registrable Securities, the Investor shall have the following
      obligations:

    

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

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

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

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    6.
      INDEMNIFICATION.  In the event any Registrable Securities are
      included in a Registration Statement under this Agreement:

    

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

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

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

    

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

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

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

    

    8. REPORTS
      UNDER THE 1934 ACT.  With a view to making available to the
      Investor the benefits of Rule 144 promulgated under the 1933 Act or any other
      similar rule or regulation of the SEC that may at any time permit the Investor
      to sell securities of the Company to the public without registration (“Rule
      144”), the Company agrees to:

    

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

    

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

    

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

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

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

    

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

    

    11. MISCELLANEOUS.

    

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

    

    b. All
      notices and other communications required or permitted hereunder shall be in
      writing and shall be effective when delivered personally, or sent by telex
      or
      telecopier (with receipt confirmed), provided that a copy is mailed by
      registered mail, return receipt requested, or when received by the addressee,
      if
      sent by Express Mail, Federal Express or other express delivery service (receipt
      requested) in each case to the appropriate address set forth below:

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                If
                  to the Company:

              	
                Tally
                  Ho Ventures, Inc.

                115
                  Route d’Arlon

                L-8311
                  Capellen, Luxembourg

                Attn:  Nigel
                  Gregg

                Telephone: (011)
                  352 2630 1540

                Facsimile: (011)
                  352 2630 1545

              
	 	 	 
	 	
                With
                  a copy to:

              	
                Cozen
                  O'Connor

                
                  1900
                    Market Street

                  Philadelphia,
                    Pennsylvania 19103

                  Attn:
                    F. Alec Orudjev

                  Telephone:
                    (215) 665-5542

                  Facsimile: (215)
                    701-2478

                

              
	 	 	 
	 	
                
                  If
                    to the Purchaser:

                

              	
                
                  To
                    the address set forth beside such Investor’s name on Schedule
                    A hereto

                

              
	 	 	 
	 	
                With
                  a copy to:

              	
                WestPark
                  Capital, Inc.

                
                  One
                    Penn Plaza, Suite 2411

                  
                    New
                      York, New York 10119

                    
                      Attention:
                        Mark I Lev, Managing Director

                      
                        Telephone:
                          (212)
                          714-0400

                        
                          Facsimile:
                            (212)
                            714-1835

                        

                      

                    

                  

                

              

      

       

    

    Each
      party
      shall provide notice to the other party of any change in address.

    

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

     

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

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

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

    

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

    

    k.
      Except
      as otherwise provided herein, all consents and other determinations to be made
      by the Investor pursuant to this Agreement shall be made by Investor holding
      a
      majority of the Registrable Securities.

    

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

    

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

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    [THE
      REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY]

    

     

     

     

     

     

    
 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    COUNTERPART
      SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT DATED MARCH 1,
      2007.

    

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

     

    
       

      
        	 	
                Company:

                TALLY
                  HO VENTURES, INC.

              
	 	 
	 	By:	 	 
	 	
                Name: Nigel
                  Gregg

                Title: Chief
                  Executive Officer

              
	 	 

      

      

      
        	 	
                Purchasers:

                
                  Phoenix
                    Capital Worldwide II, LP

                

              
	 	 

      

      
        
          	 	By:	 	 
	 	
                  Name: 

                  Title: 

                

        

        

        
          	 	 	 
	 	Irwin
                  Gross
	 	 
	 	 	 
	 	Linda
                  Gross
	 	 
	 	 	 
	 	Michael
                  Sheinson
	 	 
	 	 	 
	 	Premier
                  Partners Investment
	 	 
	 	 	 
	 	Bernard
                  Mermelstan
	 	 
	 	 	 
	 	David
                  Sinclair

        

      

    

    
 

    [Signature
      Page Continued]

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    COUNTERPART
      SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT DATED MARCH 1,
      2007.

    
       

      
        (Continued)

        
          	 	
                  
                    The
                      Continental Trust Company

                  

                
	 	
                   

                

          
            
              	 	By:	 	 
	 	
                      Name: 

                      Title: 

                    

            

          

        

      

       

      
        	 	
                
                  
                    Gilbert
                      Baker

                  

                

              
	 	
                 

              

        
          
            	 	By:	 	 
	 	
                    Name: 

                    Title: 

                  

          

        

      

       

      
        	 	
                
                  
                    Nancy
                      Baker

                  

                

              
	 	 

        
          
            	 	By:	 	 
	 	
                    Name: 

                    Title: 

                  

          

        

      

       

    

    
      
        	 	
                
                  
                    
                      WestPark
                        Capital, Inc.

                    

                  

                

              
	 	 

        
          
            	 	By:	 	 
	 	
                    Name: 

                    Title: 

                  

          

        

      

       

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

     

    LIST
      OF
      INVESTORS

     

     

    Name                                                                                      Dollar
      Amount
      Invested                                                      No.
      of Shares

     

    
      
        	
                Premier
                  Partners Investments, LLP

                800
                  S. Ocean Blvd., Apt L1, Boca Raton, FL 33432

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                Irwin
                  Gross & Linda Gross

                800
                  S. Ocean Blvd., Apt L1, Boca Raton, FL 33432

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                Michael
                  Sheinson Trust

                272
                  S. E. 5th Avenue, Delray Beach, FL 33482

              	 	$	
                
                

                50,000

              	 	
                
                

                46,000

              	 
	 	 	 	 	 	 	 
	
                Bernard
                  Mermelstan

                11
                  Oak Drive Great Neck, New York, NY 11021

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                David
                  Sinclair

                Roman
                  House, 296 Guiders Green, London NW11 9PT

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                Phoenix
                  Capital Worldwide II, LP

                One
                  Penn Plaza, Suite 2411, New York 10119

              	 	$	
                
                

                100,000

              	 	
                
                

                92,000

              	 
	 	 	 	 	 	 	 
	
                Gilbert
                  & Nancy Baker

                62
                  Mooreland Road, Greenwich CT 06831

              	 	$	
                
                

                25,000

              	 	
                
                

                22,989

              	 
	 	 	 	 	 	 	 
	
                The
                  Continental Trust Company

                Re
                  Kanishka Holdings Trust

                P
                  O
                  Box 829, Forum House, Grenville

                Street,
                  St Helier, Jersey JE4 0UE

              	 	$	
                
                

                25,000

              	 	
                
                

                23,000

              	 
	 	 	 	 	 	 	 
	
                WestPark
                  Capital, Inc.

                One
                  Penn Plaza, Suite 2411

                New
                  York, New York 10119

                Attention:  Mark
                  I Lev, Managing Director

                The
                  Placement Agent

              	 	 	 	 	
                27,000

              	 

      

    

     

     

    19

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