Document:

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EXHIBIT 10.18

                              ALL ASSETS DEBENTURE

                                    GIVEN BY

                           XCEL POWER SYSTEMS LIMITED

                                REG. NO. 00575679

                                  IN FAVOUR OF

                      LLOYDS TSB COMMERCIAL FINANCE LIMITED

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ORDER OF CLAUSES

1. Covenant to Pay

2. Charging Provisions

3. Company's Obligations

4. Additional Obligations of the Company

5. Further Assurance and Power of Attorney

6. Acts of Default

7. Power of Possession and Sale

8. Appointment of Receiver and his Powers

9. Additional Powers

10. Application of Monies

11. Protection of Third Parties

12. H M Land Registry

13. Continuing and Additional Security

14. Currency Indemnity

15. Discharge

16. Service of Notices and Process

17. Jurisdiction

18. Representations, Warranties and Undertakings by Company

19. Transfers and Disclosures

20. Miscellaneous

21. Definitions and Interpretation

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THIS DEBENTURE IS MADE on the date referred to immediately after the Fifth
Schedule hereto BY THE PARTY DESCRIBED IN THE FIRST SCHEDULE HERETO ("Company")
of the one part in favour of LLOYDS TSB COMMERCIAL FINANCE LIMITED of Boston
House, The Little Green, Richmond, Surrey, TW9 1QE registered in England and
Wales with number 733011 ("Security Holder") of the other part.

1.       COVENANT TO PAY

1.1      The Company agrees with the Security Holder:

         1.1.1    to pay the Secured Monies, which are now or shall be due,
                  owing and payable to the Security Holder, in accordance with
                  the terms of the transaction, security, instrument or other
                  obligation giving rise to the Company's indebtedness to the
                  Security Holder, including those under the Financing
                  Agreement; and
         1.1.2    to discharge all obligations and liabilities, whether actual,
                  accruing or contingent, now or in future due, owing or
                  incurred to the Security Holder by the Company, in whatever
                  currency denominated and on whatever account and howsoever
                  arising, whether alone or jointly and in whatever style, name
                  or form and whether as principal or surety.

2.       CHARGING PROVISIONS

2.1      As security for the payment of the Secured Monies, the Company with
         full title guarantee now gives the following mortgages and charges in
         favour of the Security Holder namely:

         2.1.1    a FIXED CHARGE by way of legal mortgage on all freehold and
                  leasehold property owned by the Company, including but not
                  limited to land of which the Company is registered as
                  proprietor at H. M. Land Registry (details of which are set
                  out in the Third Schedule to this deed)
         2.1.2    a FIXED CHARGE on all of the following assets, whether now or
                  in future belonging to the Company:

                  (i)      the freehold and leasehold properties of the Company
                           not effectively mortgaged under clause 2.1.1
                           including such as may hereafter be acquired;
                  (ii)     all fixtures and fittings (including trade fixtures
                           and fittings) and fixed plant and machinery in, on or
                           attached to the property subject to the legal
                           mortgage under clause 2.1.1 and all spare parts,
                           replacements, modifications and additions for or to
                           the same;
                  (iii)    any other freehold and leasehold property which the
                           Company shall own together with all fixtures and
                           fittings (including trade fixtures and fittings) and
                           fixed plant and machinery in, on or attached to such
                           property and all spare parts, replacements,
                           modifications and additions for or to the same;

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                  (iv)     all plant and machinery and other equipment listed in
                           the Fifth Schedule and all spare parts, replacements,
                           modifications and additions for or to the same;
                  (v)      all fixed plant and machinery, including all spare
                           parts, replacements, modifications and additions for
                           or to the same, not listed in the Fifth Schedule;
                  (vi)     all goodwill, unpaid and/or uncalled capital of the
                           Company; (vii) all the Company's Intellectual
                           Property; (viii) all the Company's Securities;
                  (ix)     all loan capital, indebtedness or liabilities on any
                           account or in any manner owing to the Company from
                           any Subsidiary of the Company or a member of the
                           Company's Group;
                  (x)      all amounts realised by an administrator or
                           liquidator of the Company, upon enforcement or
                           execution of any order of the Court under Part IV of
                           the Insolvency Act 1986;

         2.1.3    A FIXED CHARGE upon all or any of the following assets,
                  whether now in existence or coming into existence in future:

                  (i)      all documents of title to any item of property which
                           at any time and for any purpose has been or may be
                           deposited with the Security Holder;
                  (ii)     the assets mentioned in the title documents referred
                           to in the immediately preceding sub-paragraph;
                  (iii)    all monies in the bank account specified in clauses
                           3.1.6(i) and 3.1.7 including Remittances in respect
                           of which instructions to the Company's bankers have
                           been given under clause 3.1.6(iii);
                  (iv)     all Remittances in respect of the Company's Other
                           Debts and Non-Vesting Debts which in accordance with
                           clause 3.1.6(ii) shall be received by the person or
                           at the address or post office box specified in that
                           sub-clause;
                  (v)      all other Remittances in respect of Other Debts and
                           Non-Vesting Debts received by the Company pending
                           their being dealt with in accordance with the terms
                           of this deed or any instructions given in accordance
                           with it;
                  (vi)     any account in the name of the Company under the
                           control of or operated in accordance with the
                           directions of the Security Holder.

         2.1.4    A FIXED CHARGE on all the Company's Other Debts and
                  Non-Vesting .Debts, present and future;
         2.1.5    A FLOATING CHARGE on such of the moneys present and future
                  which the Company may receive in respect of the Company's
                  Other Debts and Non-Vesting Debts and which, until any
                  direction from the Security Holder to the contrary, are paid
                  into the bank account of the Company referred to in clause
                  3.1.8 and which upon such payment will he released from the
                  fixed charge thereon;
         2.1.6    A FLOATING CHARGE on the remainder of the undertaking,
                  property rights and assets of the Company whatsoever and
                  wheresoever, both present and future, not subject to the above
                  charges.

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2.2      if the Security Holder shall enforce any of the above charges then the
         floating charges created by this deed shall immediately and without
         further formality become fixed charges. However, the Security Holder
         may also at any time give written notice to the Company immediately
         converting all or any of the floating charges into fixed charges in
         respect of the whole or any part of the Mortgaged Property subject to
         such floating charges.

2.3      Until the Security Holder shall:

         2.3.1    enforce any of the above charges; or
         2.3.2    serve any notice under clause 2.2 on the Company, converting
                  any of the floating charges into fixed charges; or
         2.3.3    give the directions referred to in any of clauses 3.1.4 and
                  3.1.6 to 3.1.9 inclusive; any Remittance which is paid into
                  the Company's bank account under clause 3.1.8 shall, be
                  released from the fixed charge created by clause 2.1.4 and
                  shall immediately become subject to the floating charge
                  created by clause 2.1.5. Such release shall not in any way
                  affect the continuation of the fixed charge created by clause
                  2.1.4 on the remainder of the Company's Other Debts,
                  outstanding from time to time.

2.4      This deed shall take effect subject to the provisions of the prior
         Encumbrances over the Company's assets detailed in the Fourth Schedule,
         except as otherwise varied by any separate deed.

2.5      The floating charges created by this deed shall, unless otherwise
         agreed by the Security Holder in writing, automatically and without
         notice be converted into fixed charges:

         2.5.1    immediately preceding the coming into existence of any
                  Encumbrance (except: as detailed in the Fourth Schedule) or
                  any disposition or dealing prohibited by his deed; or

         2.5.2    after an Act of Default.

3.       COMPANY'S OBLIGATIONS

         3.1      The Company agrees with the Security Holder that, whilst this
                  security exists, it:
         3.1.1    will deal with the Non-Vesting Debts and their Related Rights
                  as if they were Debts and their Related Rights purchased by
                  the Security Holder under the Financing Agreement and in
                  particular will not bank or deal with Remittances in respect
                  of them except by dealing with them in accordance with the
                  Financing Agreement;
         3.1.2    will not sell, transfer, lease, licence or dispose of the
                  Mortgaged .Property subject to the floating charges herein,
                  except by way of sale at full value in the ordinary course of
                  its business now being carried on;
         3.1.3    will not sell, transfer, lease, license or dispose of the
                  Mortgaged Property subject to the fixed charges herein without
                  the prior written consent of the Security Holder but such
                  restriction shall not prohibit the disposal of an asset (other
                  than freehold or leasehold property) for the purpose of its
                  immediate replacement, modification, repair and/or
                  maintenance;

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         3.1.4    will deal with the Company's Other Debts outstanding and
                  Remittances in accordance with the Security Holder's written
                  directions; until such directions are given will only deal
                  with the Company's Other Debts by way of getting in and
                  realising the same in the ordinary course of its business;
         3.1.5    will execute an assignment of the Company's Other Debts in
                  favour of the Security Holder in such form as the Security
                  Holder requires, whenever the Security Holder so demands;
         3.1.6    give instructions in accordance with the directions of the
                  Security Holder at any time

                  (i)      to debtors to pay Remittances in respect of the
                           Company's Other Debts direct into such bank account
                           under the control of the Security Holder (and whether
                           in the name of the Company or the Security Holder) as
                           the Security Holder may specify and whether or not
                           this is an account opened under the terms hereof;
                           and/or
                  (ii)     to debtors to pay Remittances in respect of the
                           Company's Other Debts to such address, or post office
                           box under the control of the Security Holder or to
                           such person employed by or only accepting
                           instructions from the Security Holder as the Security
                           Holder may specify; and/or
                  (iii)    to the Company's bankers that all Remittances in
                           respect of Other Debts, received by means of
                           electronic funds transfers direct into a bank account
                           of the Company, shall forthwith be transferred to
                           such bank account as the Security Holder may specify
                           (whether the specified bank account is in the name of
                           the Company or the Security Holder and whether or not
                           it is an account opened under the terms hereof) but
                           in each case without affecting the right of the
                           Security Holder under clause 3.1.4 to give other
                           directions;

         3.1.7    will, as directed by the Security Holder, open such bank
                  accounts in the name of the Company with such mandates as the
                  Security Holder may specify; such bank accounts can include
                  separate designated accounts or trust accounts or accounts
                  where the officers of the Security Holder are irrevocably
                  appointed as the only persons able to operate the accounts;
                  will thereafter pay into such bank accounts all Remittances
                  which the Company may receive in respect of its Other Debts;
                  will only deal with the monies in such account in accordance
                  with the written directions of the Security Holder (subject
                  only to such rights as the bank at which the account is held
                  may have in respect thereof);
         3.1.8    until any contrary direction, demand or requirement by the
                  Security Holder under this deed, will only pay Remittances,
                  which the Company may receive in respect of the Company's
                  Other Debts, into a bank account under the Company's control;
         3.1.9    will only pay or otherwise deal with the monies in any of the
                  Company's bank account referred to in clause 3.1.5 in
                  accordance with the written directions from time to time given
                  by the Security Holder (subject to any rights which the bank
                  at which the account is held has in respect thereof);

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         3.1.10   will not, charge, sell, discount, factor, dispose of or,
                  except in accordance with this deed, otherwise deal with its
                  Other Debts or the relative Remittances unless it has the
                  prior written consent of the Security Holder;
         3.1.11   after conversion of the floating charges created by clause
                  2.1.5 and/or 2.1.6 into fixed charges, will not, except as
                  permitted by the Security Holder, withdraw any credit balance
                  representing Remittances from any of the Company's bank
                  accounts under control of the Company;
         3.1.12   will authorise its bankers from time to time to provide copy
                  statements and full particulars of all the Company's accounts
                  and Facilities with them whenever requested by the Security
                  Holder;
         3.1.13   will provide such other information, as the Security Holder
                  may reasonably request regarding the Company's affairs;
         3.1.14   will, immediately it becomes aware, provide the Security
                  Holder with details of any present or future litigation,
                  arbitration or administrative proceedings in progress, pending
                  or, to the knowledge of the Company, threatened against it
                  which might have a material adverse effect on the Company's
                  ability to perform its obligations under this deed;
         3.1.15   will permit the Security Holder free access at all reasonable
                  times to inspect and take copies or and extracts from the
                  hooks, accounts and records of the Company and such other
                  documents as the Security Holder may require and will provide
                  the Security Holder with all information and facilities which
                  it may require;
         3.1.16   will grant the Security Holder or its solicitors on request
                  all reasonable facilities to enable it or them to carry out,
                  at the Company's expense, such investigation of title to the
                  Mortgaged Property and enquiries about it as would be carried
                  out by a prudent mortgagee;
         3.1.17   will use its best endeavours to detect any infringement of its
                  rights to the Intellectual Property; if aware of such
                  infringement, will immediately give the Security Holder all
                  information available to it about such infringement and will
                  commence and diligently prosecute (or permit the Security
                  Holder in the name but at the expense of the Company to
                  commence and prosecute) all proceedings necessary to prevent
                  such infringement or to recover damages;
         3.1.18   will do everything needed to ensure that the Intellectual
                  Property, to which the Company is or may become entitled, is
                  valid and subsisting and remains owned by the Company and will
                  take all such actions and proceedings as are necessary to
                  protect such Intellectual Property; if any such intellectual
                  Property shall at any time lapse or become void, will do
                  everything necessary to restore such Intellectual Property to
                  the Company;
         3.1.19   will comply in all material respects with all laws concerning
                  the Mortgaged Property and every notice, order, direction,
                  licence, consent, permission lawfully made or given in respect
                  of it and likewise with the requirements of any competent
                  authority;
         3.1.20   will duly and promptly pay all monies which may become due in
                  respect of any of the Securities; (it being acknowledged by
                  the Company that the Security Holder shall not incur any
                  liability whatsoever for such monies);

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         3.1.21   forthwith upon the execution of this deed will deposit with
                  the Security Holder all certificates or documents of title in
                  respect of the Securities, together as appropriate with duly
                  executed instruments of transfer or assignments thereof in
                  blank; (it being acknowledged that the Security Holder shall
                  at any time be entitled to have any of the Securities
                  registered either in the name of the Security Holder or
                  nominees selected by the Security Holder);
         3.1.22   will ensure the delivery or payment to the Security Holder of
                  all stocks, shares, securities, rights, monies or other
                  property accruing, offered or issued at any time by way of
                  bonus, redemption, exchange, purchase, substitution,
                  conversion, preference, option or otherwise in respect of any
                  Securities or the certificates or other documents of title to
                  or representing the same, together with executed instruments
                  of transfer or assignments in blank; (it being acknowledged
                  that the Security Holder may arrange for any of them to be
                  registered either in the name of the Security Holder or
                  nominees selected by the Security Holder).

4.       ADDITIONAL OBLIGATIONS OF THE COMPANY

4.1      The Company agrees that, at all times during the continuance of this
         security, it:

         4.1.1    will carry on the Company's business in a proper and efficient
                  manner and will not make any material alteration to the
                  Company's business, constituting as change from that carried
                  on at the date hereof;
         4.1.2    will maintain proper and up to date books of account of its
                  business; will keep such books of account and all other
                  documents relating to the affairs of the Company at the
                  Company's registered office or at such other place where the
                  same ought to be kept and will promptly provide copies thereof
                  to the Security Holder upon request;
         4.1.3    will deliver to the Security Holder the copies of its audited
                  financial statements and any reports and notes accompanying
                  them within 6 months of each year end;
         4.1.4    will punctually pay all its debts and liabilities becoming due
                  and payable and which would, on the winding up of the Company,
                  have priority over the charges created by this deed;
         4.1.5    will punctually pay all outgoings payable in respect of the
                  Mortgaged Property and will promptly produce the receipts for
                  them to the Security Holder upon request;
         4.1.6    will keep all the Company's freehold and leasehold property in
                  good and substantial repair and will allow the Security Holder
                  free access, at all reasonable times, to view the state and
                  condition of any such property, but without the Security
                  Holder becoming liable to account as a mortgagee possession;
         4.1.7    will observe and perform all the lessee's covenants in any
                  lease under which any of the Mortgaged Property may be held
                  and will take no action which might lead to such lease being
                  surrendered or forfeited;
         4.1.8    will allow the Security Holder, at the expense of the Company,
                  to carry out repairs or take any action which the Security
                  Holder shall reasonably consider necessary should the Company
                  fail to observe or perform its obligations as a lessee;

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         4.1.9    will not exercise the powers of leasing or accepting,
                  surrenders of leases, conferred on a mortgagee in possession
                  by Sections 99 and 100 of the Law & Property Act 1925, or any
                  other powers of leasing or accepting surrenders of leases,
                  without the prior written consent of the Security Holder;
         4.1.10   will make sure that an order of the Court is obtained, under
                  Section 38(4) of the Landlord and Tenant Act 1954, excluding
                  the security of tenure provisions of that Act, before granting
                  any lease;
         4.1.11   will insure and keep insured those parts of' the Mortgaged
                  Property as are of an insurable nature against loss or damage
                  by fire and other risks usually insured against and such other
                  risks that the Security Holder shall reasonably require to
                  their full insurable value with insurers approved by the
                  Security Holder;
         4.1.12   will make sure that all the Company's insurance policies will
                  be endorsed with notice of the interest of the Security Holder
                  in them and will produce to the Security Holder the receipts
                  for each current premium within fifteen days of its becoming
                  due; failing such production the Security Holder may effect or
                  renew any such insurance as the Security Holder shall think
                  fit at the Company's expense;
         4.1.13   will observe and perform all restrictive and other covenants
                  and stipulations for the time being affecting the Mortgaged
                  Property or its use or enjoyment;
         4.1.14   will not do or allow anything to be done on the Company's
                  freehold or leasehold property which shall be treated as a
                  development or a change of use within the meaning of the Town
                  and Country Planning Acts unless the prior written consent of
                  the Security Holder has been obtained;
         4.1.15   will not infringe the Town and Country Planning Acts in any
                  way which prejudices the Security Holder's security over the
                  Mortgaged Property;
         4.1.16   will deposit with the Security Holder all deeds and documents
                  of title; relating to the Company's freehold and leasehold
                  property and the insurance policies relating to the same,
                  (subject only to the requirements of any prior Encumbrance or
                  of the Company's landlord);
         4.1.17   will not permit any person to become entitled to any
                  proprietary right or interest which might affect the value of
                  the assets subject to the fixed charges herein.

4.2      If the Company holds property as a tenant or lessee and shall be
         required by the landlord either to insure or to reimburse the Company's
         landlord for any insurance premium paid by him then the Company shall
         be treated as having complied with its insuring obligation under this
         deed if it duly and promptly complies with such requirements. However
         this shall not affect the right of the Security Holder to require the
         Company to produce satisfactory evidence that the Company has complied
         with the landlord's requirements.

5.       FURTHER ASSURANCE AND POWER OF ATTORNEY

5.1      At the Security Holder's request, the Company will immediately sign,
         seal, execute, deliver and perfect all deeds and instruments and do all
         such other acts and things as the Security Holder or any Receiver
         appointed hereunder may require in order to perfect or enforce this
         security or to use the powers given to each of them in this deed or to
         enforce the obligations of the Company and/or the rights of the
         Security Holder under this deed.

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5.2      The Company will, if called upon by the Security Holder, execute a
         legal or equitable assignment of any part of the Mortgaged Property, in
         such terms as the Security Holder may require. The Company will then
         give notice of such assignment to such persons as the Security Holder
         may specify and take such other steps as the Security Holder may
         require to perfect such assignment.

5.3      The Company irrevocably appoints the Security Holder, any directors,
         officers or managers for the time being of the Security Holder and any
         other person authorised by the directors of the Security Holder and any
         Receiver appointed hereunder, jointly and each of them severally, to be
         the lawful attorneys of the Company. Such appointment gives each
         attorney the power in the Company's name and on its behalf and as its
         act and deed to carry out all acts for the purposes set out in clauses
         5.1 and 5.2. Each attorney so appointed may appoint substitute
         attorneys to carry out all or any of such purposes. The Company agrees
         to ratify and confirm any instrument, act or thing which any such
         attorney or substitute attorney may lawfully execute or do.

6.       ACTS OF DEFAULT

6.1      The Secured Monies shall become payable and the charges in favour of
         the Security Holder shall immediately become enforceable, without
         notice or demand, by the Security Holder at any time after any of the
         following events occur:

         6.1.1    if the Company shall breach any of its obligations under this
                  deed or in the Financing Agreement or any other agreement with
                  the Security Holder;
         6.1.2    if the Company shall default in paying any of the Secured
                  Monies as and when they become due; 6.1.3 if the Company shall
                  fail to give the Security Holder such information as may
                  reasonably be requested as to the business, affairs or assets
                  of the Company;
         6.1.4    if any representation, warranty or undertaking at any time
                  made by the Company to the Security Holder is or was, in the
                  reasonable opinion of the Security Holder, incorrect or
                  misleading in any respect or, being on an undertaking, shall
                  not be complied with by the Company;
         6.1.5    if the Company shall dispose or attempt to dispose of its
                  principal undertaking or a substantial part of it, without the
                  prior written approval of the Security Holder;
         6.1.6    if the Company shall be insolvent;
         6.1.7    if the Company suspends or threatens to suspend a substantial
                  part of' its business or if the Security Holder receives
                  information, from the Company or any responsible third party,
                  whether orally or in writing, that the Company is
                  contemplating or is likely to suspend a substantial part of
                  its business;
         6.1.8    if the Company shall commence negotiations with any of its
                  creditors with a view to the general readjustment or
                  rescheduling of the Company's indebtedness;
         6.1.9    if the Company shall default under any of the following with
                  any party:

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                  (i)      a trust deed; (ii) a loan agreement; (iii) an
                           Encumbrance;
                  (iv)     any other agreement or obligation relating to
                           borrowing or financing (including all liabilities in
                           respect of accepting, endorsing or discounting any
                           notes or bills and all liabilities under debt
                           purchase, factoring, discounting and similar
                           agreements);
                  (v)      any guarantee or indemnity;

         6.1.10   if any borrowing or any ether money payable by the Company:

                  (i)      becomes payable or is capable of being declared
                           payable prior to its stated date of maturity; or
                  (ii)     is not paid when due;

         6.1.11   if any Encumbrance created by the Company in favour of another
                  party becomes enforceable;
         6.1.12   if any guarantee, indemnity or other security for any of the
                  Secured Liabilities fails or ceases in any respect to have
                  full force and effect or to be continuing or is terminated or
                  disputed or is the opinion of the Security Holder in jeopardy,
                  invalid or unenforceable;
         6.1.13   if any governmental authority permits, or procures, or
                  threatens any reorganisation, transfer or appropriation
                  (whether with or without compensation) of a substantial part
                  of the business or assets of. the Company;
         6.1.14   if the Company shall, without the prior written consent of the
                  Security Holder, change the nature of its business or trading
                  in any way which the Security Holder considers prejudicial to
                  this security;
         6.1.15   if it is unlawful for the Company to perform or comply with
                  any of its obligations under this deed or under any other
                  agreement between the Company and the Security Holder or such
                  obligations or the Company are not or cease to be legally
                  valid, binding and enforceable;
         6.1.16   if, after the date of this deed, control (as defined in
                  Section 435 of the insolvency Act 1986) or the power to take
                  control of the Company changes, without prior written consent
                  of the Security Holder; or
         6.1.17   if, in the opinion of the Security Holder, a material adverse
                  change occurs in the financial condition, results of
                  operations or business of the Company.

6.2      At any time after any Act of Default:

         6.2.1    the Security Holder shall cease to be under any further
                  commitment to the Company and may at any time thereafter
                  declare the Secured Monies (or such of them as the Security
                  Holder may specify) either to be immediately due and payable
                  or to be payable at any time thereafter immediately on demand,
                  even if this conflicts with the terms of any other agreement
                  or arrangement; and/or
         6.2.2    the Company shall immediately on demand provide cash cover for
                  all of its contingent liabilities to the Security Holder
                  (including under the Financing Agreement) and for all notes or
                  bills accepted, endorsed or discounted and all guarantees or
                  other instruments entered into by the Security Holder; and/or
         6.2.3    the Security Holder may retain:

                  (i)      any monies in any account referred to in clause
                           3.1.6; and/or

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                  (ii)     any monies in any account operated by the officers of
                           the Security Holder under clause 3.1 .7; and/or
                  (iii)    any Remittance received in accordance with clause
                           3.1.6(ii)

                  for such period as the Security Holder reasonably considers
                  necessary to ensure the Company's compliance with the terms of
                  this deed; and/or

         6.2.4    the Security Holder may exercise in the name or the Company
                  any voting rights attached to the Securities and all powers
                  given to trustees by Sections 10(3) and (4) of the Trustee Act
                  1925 (as amended by Section 9 of the Trustee Investments Act
                  1961) in respect of securities, property subject to a trust
                  and any powers or rights exercisable by the registered holder
                  of any of the Securities or by the bearer thereto. The
                  Security Holder will not then need any consent or authority
                  from the Company.

7.       POWER OF POSSESSION AND SALE

7.1      At any time alter this security shall become enforceable, the Security
         Holder and/ or any Receiver appointed under this deed may, in their
         discretion, enter upon and take possession of the Mortgaged .Property
         or any part of it. They may also at their discretion, when exercising
         their powers given in this deed, sell, call in, collect and convert
         into monies the Mortgaged .Property or any part of it. By way of
         extension of these powers such sale, calling in and conversion may be
         done for such consideration as the Security Holder or any Receiver
         shall consider sufficient. It is irrelevant whether the consideration
         shall consist of cash, shares or debentures in some other company or
         any other property or partly of one and partly of some other type of
         consideration. Such consideration may be immediately payable or payable
         by instalments or deferred. Instalment or deferred payments may be with
         or without security and on such other terms as the Security Holder or
         the Receiver shall think fit.

8.       APPOINTMENT OF RECEIVER AND HIS POWERS

8.1      Section 109 of the Law of Property Act 1925 (restricting the power to
         appoint a receiver) shall not apply to this deed. At any time after an
         Act of Default or after any other event, as a result of which this
         security shall become enforceable or, if the Company at any time so
         requests in writing, the Security Holder may without further notice to
         the Company appoint any person to be a Receiver. Their appointment
         shall extend to the whole or any part of the Mortgaged Property. The
         Security Holder may remove any Receiver (except an administrative
         receiver). In case of such removal or the retirement or death of any
         Receiver, the Security Holder may appoint another in his place. At the
         time of his appointment (or at any time afterwards) the Security Holder
         may fix the remuneration of the Receiver on such basis as the Security
         Holder shall determine. This may include a fixed fee or an hourly rate
         or a commission.

8.2      The Security folder may appoint more than one person to act as the
         Receiver. Where more than one person shall be appointed to act as
         Receiver, those so appointed shall carry out their duties, exercise
         their rights, and be subject to their obligations jointly as well as
         severally. References in this deed to the Receiver shall be to each and
         all of them as appropriate.

                                      -11-

<PAGE>

8.3      Any appointment, or fixing of the remuneration of the Receiver or any
         such removal shall be made in writing and be signed by any director or
         authorised officer of the Security Holder.

8.4      Any Receiver appointed under this deed shall be the agent of the
         Company. He shall be in the same position as a Receiver appointed under
         the Law of Property Act 1925. The Company shall be solely responsible
         for his acts, omissions, losses, misconduct, defaults and remuneration.
         The Security Holder shall not in any way be liable or responsible
         either to the Company or to any other person for any of them.

8.5      The Receiver shall, without the need for any consent on the part of the
         Company, have all of the following powers, unless any shell
         specifically he excluded by the terms of his appointment. He may
         exercise these powers in such way, at such time and on such terms as he
         shall think necessary or expedient and whether in his name or the name
         of the Company. Any Receiver, whether appointed solely or jointly,
         shall have the powers granted to a receiver by the Law of Property Act
         1925 and the Insolvency Act 1986. He shall also have all of the
         following powers:

         8.5.1    to enter upon, take possession of, collect and get in the
                  Mortgaged Property and for that purpose to have possession of
                  all records, correspondence and other documents relating to
                  the Mortgaged Property;
         8.5.2    to lease the Mortgaged Property, in the name of the Company or
                  otherwise (whether or not the Receiver shall have taken
                  possession thereof);
         8.5.3    to carry on or permit the carrying on or all or any part of
                  the business of the Company and to manage, develop,
                  reconstruct, amalgamate or diversify the Company's business,
                  including purchasing supplies and materials;
         8.5.4    to do all acts which the Company might do for the protection
                  or improvement of the Mortgaged Property or for obtaining
                  income or returns from it;
         8.5.5    to raise or borrow any money, which may be needed from time to
                  time for any of the purposes of the Receiver's appointment,
                  whether in the name of the Company or otherwise; for such
                  purpose the Receiver shall have power to secure any monies so
                  borrowed by mortgage or charge over the Mortgaged Property,
                  whether ranking in priority to or pari passu with or after any
                  or all of the charges created by this deed.
         8.5.6    to sell or concur in selling the Mortgaged Property including
                  by public or private treaty, by tender, for cash or on credit,
                  in one lot or in parcels, with or without special conditions
                  or stipulations as to title, time or mode of payment of
                  purchase money or otherwise and whether forthwith upon his
                  appointment or later;
         8.5.7    to allow the whole or any part of the sale monies of the
                  Mortgaged Property to remain outstanding on mortgage of the
                  property sold or on any other security or even without any
                  security and without being responsible for any loss caused and
                  with full power to buy in and rescind or vary any contract for
                  sale and to resell without being responsible for loss;

                                      -12-

<PAGE>

         8.5.8    to let or let on hire, lease or surrender and accept
                  surrenders of the Mortgaged Property;
         8.5.9    to execute assurances of the Mortgaged Property in the name
                  and on behalf of the Company or otherwise and to do all other
                  acts and things for completing the sale of the Mortgaged
                  Property;
         8.5.10   to sever fixtures belonging to the Company and sell them
                  separately from any other part of the Mortgaged Property;
         8.5.11   to make any arrangement or compromise with any person in
                  respect of the Mortgaged Property;
         8.5.12   to repair, decorate, furnish, maintain, alter, improve, renew
                  or add to any of the Mortgaged Property as he shall think fit
                  and effect maintain, renew or increase indemnity insurance and
                  other insurances and obtain bonds;
         8.5.13   to settle, arrange, compromise, and submit to arbitration any
                  accounts, claims, questions or disputes whatsoever which may
                  arise in connection with the business of the Company or any
                  part of the Mortgaged Property or in any way relating to the
                  security constituted by this deed and to bring, prosecute,
                  defend, enforce, compromise, submit to and discontinue any
                  actions, suits, arbitrations or proceedings whatsoever,
                  whether civil or criminal;
         8.5.14   to enter into, complete, disclaim, abandon or disregard,
                  determine or rectify any of the outstanding contracts or
                  arrangements of the Company and allow time for payment of any
                  debts, either with or without security;
         8.5.15   to exercise or permit the Company or any nominee of the
                  Company to exercise any powers or rights incidental to the
                  ownership of the Mortgaged Property, in such manner as he may
                  think fit;
         8.5.16   to form a subsidiary of the Company and transfer, lease or
                  licence to such subsidiary or any other person all or any part
                  of the Mortgaged Property on such terms and conditions as he
                  may think fit;
         8.5.17   to give complete discharges in respect of all monies and other
                  assets which may come into the hands of the Receiver in the
                  exercise of his powers;
         8.5.18   to carry out and enforce specific performance of or obtain the
                  benefit of all the Company's contracts or those entered into
                  in exercise of the powers or authorities conferred by this
                  deed;
         8.5.19   to make, or require the directors of the Company to make,
                  calls upon the shareholders of the Company in respect of any
                  capital of the Company;
         8.5.20   to enforce payment, of any call so made by action (in the name
                  of the Company or the Receiver) or in any other way;
         8.5.21   to exercise all or any of the powers and authorities conferred
                  on the Receiver under the provisions of the Law of Property
                  Act 1925 without any further consent by or notice to the
                  Company;
         8.5.22   to demand and get in all rents and other income, whether
                  accrued before or after the date or his appointment;
         8.5.23   to exercise the powers conferred on a landlord or a tenant
                  under the Landlord and Tenant Acts 1927 and 1954 but without
                  liability for powers so exercised;
         8.5.24   to do all things necessary to make sure that the Company
                  performs or observes all of its obligations to the Security
                  Holder;

                                      -13-

<PAGE>

         8.5.25   to delegate to any person, for such time as the Security
                  Holder shall approve, any of the powers conferred upon the
                  Receiver;
         8.5.26   to take legal proceedings for all or any of the purposes set
                  out above;
         8.5.27   to employ and dismiss managers, solicitors, officers, agents,
                  auctioneers, workmen and employees for the purpose of carrying
                  out any of the powers and duties of the Receiver or the
                  obligations of the Company at such salaries or remuneration
                  and on such other terms of service as the Receiver in his
                  discretion may think fit;
         8.5.28   to have access to and make use of the premises, plant,
                  equipment and accounting and other records of the Company and
                  the services of its staff in order to exercise his powers and
                  duties;
         8.5.29   to do all such other acts and things without limitation, as
                  the Receiver may consider to be incidental or conducive to the
                  lawful exercise of his powers and duties.

8.6      The Security Holder may at any time give up possession of any part of
         the Mortgaged Property and/or withdraw from the receivership.

8.7      Whether or not a Receiver shall be appointed under this deed, the
         Security Holder may at any time after this security shall have become
         enforceable and without giving notice, exercise all or any of the
         powers, authorities and discretions conferral on a Receiver as set out
         above.

9        ADDITIONAL, POWERS

9.1      In addition to the powers of leasing or accepting surrenders of' leases
         conferred on mortgagees by Sections 99 and 100 of the Law of Property
         Act 1925, it shall he lawful for the Security Holder or any Receiver
         without the restrictions contained in those Sections:

         9.1.1    to grant any lease of the Mortgaged Property upon such terms
                  as the Security Holder or the Receiver shall in its absolute
                  and unfettered discretion think fit; and
         9.1.2    to accept a surrender of any lease of the Mortgaged Property
                  on such terms as the Security Holder or the Receiver in its or
                  his discretion shall think fit.

9.2      Section 103 of the Law of Property Act 1925 (restricting the power of
         sale) shall not apply. However the power or sale and the other powers
         conferred on mortgagees by that Act shall apply to this security but
         without the Act's restrictions as to giving notice or otherwise.
         Accordingly for the purposes of a sale or other exercise of any such
         powers the whole of the Secured Monies shall be treated as due and
         payable immediately upon the execution and delivery of this document.

9.3      The restrictions on the right of consolidating mortgage securities,
         which are contained in Section 93 of the Law of Property Act, shall not
         apply to this security.

9.4      The Security Holder may, at any time without discharging or in any
         other way affecting this security or any remedy that the Security
         Holder may have, grant to the Company (or to any other person) time or

                                      -14-

<PAGE>

         indulgence or abstain from perfecting or enforcing any remedies,
         securities, guarantees or rights which the Security Holder may now or
         afterwards have from or against the Company or any other person.

9.5      If the Security Holder receives or is treated as having received notice
         of any subsequent mortgage or charge affecting any of the Mortgaged
         Property then the Security Holder may open a new account with the
         Company. If it does not open a new account, it shall nevertheless be
         treated as it had done so at the time when it received or was treated
         as having received such notice. From that time all payments made by the
         Company to the Security Holder shall be credited or be treated as
         having been credited to the new account. Such payments shall not
         operate to reduce the amount secured by this deed when the Security
         Holder received or was treated as having received such notice.

10.      APPLICATION OF MONIES

10.1     All monies received by the Security Holder or by the Receiver under or
         by virtue of this deed shall be applied in the following order;

         10.1.1   in the discharge of' all Liabilities having priority to the
                  mortgages and charges hereby created or the matters referred
                  to hereafter in this clause 10.1;
         10.1.2   in payment of all costs, charges and expenses incurred in or
                  incidental to the exercise or performance (or attempted
                  exercise or performance) of any of the powers or authorities
                  conferred by or in any other way connected with this deed; AND
                  THEN
         10.1.3   in payment to the Receiver of his remuneration fixed in
                  accordance with clause 8.1 of this deed; AND THEN
         10.1.4   in payment to the Security Holder of the Secured Monies due to
                  the Security Holder in such order as the Security Holder in
                  its absolute discretion thinks lit; AND THEN
         10.1.5   in payment to the Company of any surplus.

10.2     Any surplus shall not carry interest. The Receiver or the Security
         Holder may pay any surplus into any of the Company's bank accounts
         including an account opened specifically for such purpose. The Security
         Holder shall then have no further liability for such surplus.

10.3     Following the enforcement of this security, any monies received by the
         Security Holder may be appropriated by the Security Holder in its
         discretion in or towards the payment and discharge of any part of the
         Secured Monies.

10.4     The Security Holder or the Receiver may credit any monies to a suspense
         account for so long and in such manner as the Security Holder may from
         time to time determine. The Receiver may retain the same for such
         period as the Receiver and the Security Holder consider expedient.

10.5     All monies received by the Company under any insurance policy on the
         Mortgaged Property shall be treated as part of the Mortgaged Property
         subject only to any rights of third parties having priority and to the
         requirements of any lease of the Mortgaged Property. They shall be

                                      -15-

<PAGE>

         applied at the discretion of the Security Holder either in reducing the
         Secured Monies or towards making good the loss or damage for which the
         monies became payable. Any monies received by the Company under any
         insurance on the Mortgaged Property shall be held on trust for payment
         to the Security Holder pending such application.

11.      PROTECTION OF THIRD PARTIES

11.1     No person paying or handing over monies to the Receiver and obtaining a
         discharge shall have any responsibility or liability to see to their
         correct application.

11.2     No person dealing with the Security Holder or the Receiver need enquire
         :

         11.2.1   whether any event has happened giving either the Security
                  Holder or the Receiver the right to exercise any of his
                  powers;
         11.2.2   as to the propriety or regularity of any act purporting or
                  intending to be an exercise of such powers;
         11.2.3   as to the validity or regularity of the appointment of any
                  Receiver purporting to act or to have been appointed us such;
                  or
         11.2.4   whether any money remains owing upon this security.

11.3     All the protection to purchasers contained in Sections 104 and 107 of
         the Law of Property Act 1925 shall apply to any person purchasing from
         or dealing with the Receiver or the Security Holder as if the Secured
         Monies had become due and the statutory power of sale and appointing a
         receiver in relation to the Mortgaged Property had arisen on the date
         of this deed.

11.4     No person dealing with the Security Holder or the Receiver shall be
         affected by express notice that any act is unnecessary or improper.

12.      H.M. LAND REGISTRY

12.1     The Company will notify the Security Holder of any freehold or
         leasehold property which it now owns or which it may own alter the date
         or this deed. The Company will, upon request and at its cost , join
         with the Security Holder in registering this security as a fixed charge
         against any of the freehold or leasehold property of which the Company
         is now registered or may in future apply to be registered as the
         proprietor at H.M. Land Registry.

12.2     The Company hereby applies to the Chief Land Registrar for a
         restriction to be entered on the Company's title to any land in the
         following terms:

                  "Except under an order of the .Registrar no disposition or
                  dealing by the proprietor of the land is to be registered or
                  noted without the consent of the proprietor for the time being
                  of Charge No....................."

                                      -16-

<PAGE>

13.      CONTINUING AND ADDITIONAL SECURITY

13.1     This security is a continuing security. It shall apply to all the
         Secured Monies despite any interim settlement of account until a final
         discharge of this security shall be given by the Security Holder to the
         Company.

13.2     This security is in addition to and shall not merge or otherwise
         prejudice or affect any other right or remedy of the Security Holder or
         any assignment, bill, note, guarantee, mortgage or other security now
         or in future in favour of the Security Holder or held by or available
         to the Security Holder, whether created by the Company or any third
         party.

13.3     This security shall not in any way be prejudiced or affected by:

         13.3.1   any guarantee, mortgage or other security now or in future
                  held by or available to the Security Holder or by the
                  invalidity of any of them or by the Security Holder now or
                  afterwards dealing with, exchanging, releasing, modifying or
                  abstaining from perfecting or enforcing any of then or any
                  rights which it may now or afterwards have; or
         13.3.2   by the Security Holder giving time, the payment or indulgence
                  or compounding with the Company or any other persons.

14.      CURRENCY INDEMNITY

14.1     For the purpose of or pending the discharge of any of the Secured
         Liabilities secured by this deed the Security Holder or any Receiver
         appointed hereunder may convert any monies received, recovered or
         realised under this deed (including the proceeds of any previous
         conversion) from their existing currency into such other currency as
         the Security Holder or such Receiver may think fit. Any such conversion
         shall be effected at the then prevailing spot selling rate of exchange,
         of the Security Holder's bankers, for such other currency against the
         existing currency.

14.2     The Company will indemnify the Security Holder against any shortfall
         between:

         14.2.1   any amount received or recovered by the Security Holder in
                  respect of any of the Secured Liabilities which is converted
                  in accordance with clause 14.1 into the currency in which such
                  liability was payable; and
         14.2.2   the amount payable to the Security Holder under this deed in
                  the currency of such liability.

15.      DISCHARGE

15.1     Upon payment and complete discharge and performance of all the Secured
         Liabilities and of all costs, charges and expenses incurred by the
         Security Holder under or in relation to this deed, the Security Holder
         shall, at the request and cost or the Company, duly discharge this
         security and any further security given in accordance with its terms.
         The Security Holder will also transfer to the Company any of' the
         Mortgaged Property which has been assigned or transferred to the
         Security Holder.

                                      -17-

<PAGE>

15.2     The right of the Security Holder to recover the Secured Monies or to
         enforce the terms of this deed shall not be affected by any payment or
         any act or thing which may be avoided or adjusted under the laws
         relating to bankruptcy or insolvency or under Part VI of the Insolvency
         Act 1986. Any release or discharge given or settlement made by the
         Security Holder relying on any such payment, act or thing shall be void
         and of no effect.

16.      SERVICE OF NOTICES AND PROCESS

16.1     Except as stated to the contrary herein, any written notice from the
         Security Holder to the Company and any proceedings issued by the
         Security Holder requiring service on the Company may be given or
         served:

         16.1.1   by delivering it at or posting it to the Company's registered
                  office or to such other address of the Company advised to and
                  acknowledged by the Security Holder as being effective for the
                  purposes of this clause; or
         16.1.2   by delivering it at or posting it to any address last known to
                  the Security Holder at which the Company carried on business;
         16.1.3   by handing it Company's officers;
         16.1.4   by a fax or e-mail to the Company's number or address advised
                  to and acknowledged by the Security Holder as suitable for
                  communication between the parties.

16.2     Any such notice or process shall be considered served:

         16.2.1   if delivered - at the time of delivery; or
         16.2.2   if sent by post - 48 hours from the time of posting; or
         16.2.3   if sent by fax or e-mail - at the time of transmission; or
         16.2.4   if handed over - at the time of handing over.

16.3     Any notice in writing by the Company to the Security Holder required
         hereunder shall take effect at the time it is received by the Security
         Holder at its registered office or at such other address the Security
         Holder may advise in writing to the Company for this purpose.

17.      JURISDICTION

17.1     This deed shall be interpreted and shall be governed by the laws of
         England. The Company will accept the non-exclusive jurisdiction of the
         English Courts in connection with any matter arising under this deed.

18.      REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS BY COMPANY

18.1     The Company certifies that the execution of this deed has been duly
         authorised by a resolution of the Company's Board of Directors and that
         it does not break any of the provisions of the Company's Memorandum and
         Articles of Association or of any other Encumbrance, security or
         agreement entered into prior to the date of this deed or the laws of
         any jurisdiction applying to the Company.

                                      -18-

<PAGE>

18.2     The Company represents and warrants to the Security Holder that:

         18.2.1   it is and will at all times be the sole beneficial owner with
                  full title guarantee of all the Mortgaged Property and that no
                  Encumbrances affect it except the Encumbrances (if any) set
                  out in the Fourth Schedule and general liens in the ordinary
                  course of business;
         18.2.2   it has and will at all times have the necessary power to enter
                  into and perform its obligations under this deed;
         18.2.3   this deed constitutes its legal, valid, binding and
                  enforceable obligations and is an effective security over all
                  and every part of the Mortgaged Property in accordance with
                  its terms;
         18.2.4   all necessary authorisations and consents to enable or entitle
                  it to enter into this deed have been obtained and these will
                  remain in full force and effect during the existence or this
                  security;
         18.2.5   the Company has acquired, maintained and complied with all
                  Environmental Licences (if any) needed for its use or
                  occupation of the Mortgaged Property or for the conduct of its
                  current business;
         18.2.6   the Company has complied with all other applicable
                  Environmental Laws and has not done or permitted any act or
                  omission whereby its Environmental Licences (if any) could be
                  varied or revoked;
         18.2.7   so far as the Company is aware there has been no discharge,
                  spillage, release or emission of any prescribed, dangerous,
                  noxious or offensive substance or any controlled waste on,
                  into or from any of the Mortgaged Property or any premises
                  adjoining any part of it; and no such substances or any
                  controlled waste have been stored or disposed of on or in any
                  part of the Mortgaged Property or, so far as the Company is
                  aware, in any adjoining premises except in accordance with the
                  requirements of the applicable Environmental Laws;
         18.2.8   the Company is not in breach of and has not incurred or become
                  subject to any civil or criminal liability under any
                  Environmental Laws or the terms of any Environmental Licence;
         18.2.9   the Company has obtained and maintained all such insurance
                  policies as would be maintained by prudent companies carrying
                  on business of the type carried on by the Company at all
                  relevant times and has complied in all material respects with
                  the terms and conditions or such policies.

18.3     The Company undertakes that no Encumbrances (other than a general lien
         in the ordinary course of business) ranking in priority to or pari
         passu with the charges created by this deed will arise after the date
         of this deed over the Mortgaged Property.

19.      TRANSFERS AND DISCLOSURES

19.1     This deed is freely transferable by the Security Holder. References in
         this deed to the Security Holder's shall include its successors,
         assignees and transferees.

19.2     The Company may not assign or transfer any of its obligations under
         this deed. Nor may the Company enter into any transaction which would
         result in any such obligations passing to another person.

                                      -19-

<PAGE>

19.3     The Security Holder may disclose any information about the Company and
         any member of the Company's Group and any other person connected or
         associated with it to any member of the Security Holder's Group and/or
         to any person to whom it: is proposing to transfer or assign or has
         transferred or assigned this deed. The Company represents and warrants
         that it has and (so far as permitted by law) will maintain any
         necessary authority by or on behalf or any such persons to agree to the
         provisions of this clause.

20.      MISCELLANEOUS

20.1     No delay or omission on the part of the Security Holder in exercising
         any right or remedy under this deed shall impair that right or remedy
         or operate as or be taken to be a waiver of it. Any single, partial or
         defective exercise of any such right or remedy shall not prevent the
         further exercise of that or any other right or remedy.

20.2     The Security Holder's rights under this deed are cumulative. They are
         not exclusive of any rights provided by law. They may be exercised from
         time to time and as often as the Security Holder sees fit.

20.3     Any waiver by the Security Holder of any terms of this deed or any
         consent or approval given by the Security Holder under it shall only be
         effective if given in writing. Such consent and approval shall then
         only apply for the purpose stated and be subject to any written terms
         and conditions imposed by the Security Holder.

20.4     If at any time any one or more of the provisions of this deed is or
         becomes illegal, invalid or enforceable in any respect under the laws
         of any jurisdiction then neither the legality, validity or
         enforceability of the remaining provisions of this deed nor the
         legality, validity or enforceability of such provision under the law of
         any other jurisdiction shall be in any way affected or impaired as a
         result.

20.5     Any certificate signed by a director or authorised officer of the
         Security Holder us to the amount of the Secured Monies at the date of
         such certificate shall, in the absence of manifest error, be conclusive
         evidence of such amount and be binding on the Company.

20.6     This deed may be executed in any number of counterparts. It will then
         be as effective as if all signatures on the counterparts were on a
         single copy or this deed.

20.7     The paper on which this deed is written is, and will remain at all
         times, the property of the Security Holder, even after the discharge of
         this security.

21.      DEFINITIONS AND INTERPRETATION

21.1     In this deed any words whose meaning is defined in the Financing
         Agreement shall have the same meaning.

21.2     In this deed the following words shall have the meaning set out after
         each of them:

         "ACT OF DEFAULT" - in relation to the Company - any event set out in
         clause 6.1;

                                      -20-

<PAGE>

         "DEBTS"; has the same meaning as in the Financing Agreement;

         "ENCUMBRANCE" - any mortgage, charge, pledge, lien, assignment,
         hypothecation, security interest, title retention, flawed asset
         agreement, preferential right, trust arrangement or other security
         arrangement, whether by law or agreement.

         "ENVIRONMENTAL LAW"; - all laws, directions and regulations and all
         codes of practice, circulars and guidance notes issued by any competent
         authority or agency (whether in the United Kingdom or elsewhere and
         whether or not having the force of law) concerning the protection of
         the environment or human health, including without limitation the
         conservation of natural resources, the production, storage,
         transportation, treatment, recycling or disposal of any waste or any
         noxious, offensive or dangerous substance or the liability of any
         person, whether civil or criminal, for any damage to or pollution of
         the environment or the rectification thereof or any related mutters.

         "ENVIRONMENTAL LICENCE"; - any permit, licence, authorisation, consent
         or other approval required by any Environmental Law.

         "FINANCING AGREEMENT"; - the agreement (if any) for the sale and
         purchase or Debts and/or a conditional sale agreement and/or any other
         type of agreement between the Company and the Security Holder, details
         of which are set out in the Second Schedule and any amendments or
         alterations to it or them and any replacement of it which may he agreed
         between the parties.

         "GROUP"; - IN RELATION TO ANY COMPANY, that company, the company and
         its Subsidiaries, its holding company (as defined in Section 736 of the
         Companies Act 1985) and the Subsidiaries of that holding company.

         "INSOLVENT"; - the happening of any of the following events in relation
         to the Company:

         1.       a distress or execution being levied on or issued against any
                  of the Mortgaged Property;
         2.       entering or seeking to enter into any formal scheme of
                  arrangement of its affairs or composition in satisfaction of
                  its debts with its creditors in accordance with the insolvency
                  Act 1986;
         3.       taking any corporate action by the Company for its winding up,
                  dissolution or re-organisation (otherwise than for the
                  purposes of an amalgamation or reconstruction while solvent on
                  terms previously approved in writing by the Security Holder)
                  or for the appointment of a Receiver, administrator, trustee
                  or similar officer to in respect of it all or any part of its
                  revenue or assets;
         4.       a petition being presented or an order being made for the
                  winding up of the Company;
         5.       an administration order being made or applied for;
         6.       a meeting of creditors being called for winding up the Company
                  or for any other purpose referred to in the insolvency Act
                  1986;
         7.       a statutory demand under the Insolvency Act 1986 being served;

                                      -21-

<PAGE>

         8.       an encumbrancer taking possession of any part of the
                  undertaking or properly of the Company or a Receiver or being
                  appointed over it;
         9.       entering into any informal arrangement or composition with or
                  for the benefit of the Company's general body of creditors;
         10.      being unable to pay its debts as they become due; 11. being
                  deemed insolvent under the insolvency Act 1986;
         12.      the appointment of an administrator by the holder all
                  qualifying floating charge under Schedule B1 to Insolvency Act
                  1986 (introduced by the Enterprise Act 2002); and
         13.      taking any steps towards a moratorium under the Insolvency Act
                  2000.

         "INTELLECTUAL PROPERTY" - all patents (including applications,
         improvements, prolongations, extensions and right to apply therefor)
         designs (whether registered or unregistered) copyrights, design rights,
         trade marks and service marks (whether registered or unregistered)
         utility models, trade and business names, know-how, formulae,
         inventions, confidential information, trade secrets and computer
         software programs and systems (including the benefit of any licences or
         consents relating to any of the above) and all fees, royalties or other
         rights derived therefrom or incidental thereto in any part or the
         world.

         "MORTGAGED PROPERTY"; - the subject matter of the mortgages and charges
         (or any or any part of them, if the context so allows) created by this
         deed and set out at clause 2.

         "NON VESTING DEBTS"; - all or any Debts of the Company to be purchased
         by the Security Holder pursuant to the Financing Agreement but which
         fail to vest absolutely and effectively in the Security Holder for any
         reason, together with the Related Rights to such Debts.

         "OTHER DEBTS"; - all sums due and owing or accruing due and owing to
         the Company whether or not on account of its trading both present and
         future except:

         1.       Non-Vesting Debts; and
         2.       any Debts whilst they remain absolutely and effectively vested
                  in or held on trust for the Security Holder under the
                  `Financing Agreement and whether such vesting results from a
                  legal or equitable assignment.

         "RECEIVER"; - includes a receiver or a manager or a receiver and
         manager or an administrative receiver as defined in Section 29(2) of
         the Insolvency Act 1986 or a receiver of part only of the property of
         the Company or a receiver only of the income arising from such property
         or from part of it.

         - includes an administrator appointed or to be appointed by the
         Security Holder under Schedule B1 to the Insolvency Act 1986
         (introduced by the Enterprise Act 2002) (where this deed constitutes a
         qualifying floating charge under that Act);

         "RELATED RIGHTS"; - has the same meaning as in the Financing Agreement.

                                      -22-

<PAGE>

         "REMITTANCES"; - cash, cheques, bills of exchange, negotiable and
         non-negotiable instruments, letters of credit, orders, drafts,
         promissory notes, electronic payments and any other instruments,
         methods or forms of payment or engagement.

         "SECURED LIABILITIES"; - both the Secured Monies and the obligations
         and liabilities in clause 1.1.2.

         "SECURED MONIES"; - all the monies which now or at any time to future
         may be owing due and/or payable (but remaining unpaid) by the Company
         to the Security Holder in any manner and for any reason on any account;
         Secured Monies include all such monies due by the Company, either alone
         or jointly with any other person or on any partnership account (even
         though the whole or any part of such monies is represented or secured
         by any mortgages, guarantees, trust receipts, bills of exchange,
         leasing, hire or conditional sale agreements, assignments, agreements
         for discounting or factoring of Debts or any other agreements or
         securities) and whether or not any or them have or has fallen due or
         become payable and whether or not default shall have been made in
         respect thereof, Secured Monies also means any or the following items,
         whether now or in the future:

         1.       all monies due or payable under the Financing Agreement (if
                  any) or by virtue of any guarantee or indemnity given by the
                  Company to the Security Holder;
         2.       all advances which the Security Holder has made or shall make
                  to the Company;
         3.       any indebtedness now or hereafter to be incurred by the
                  Security Holder for or at the request of the Company,
                  including all monies which the Security Holder shall pay or
                  become liable to pay for or on account of the Company or any
                  other person at the request or order of the Company or under
                  its authority, either alone or jointly with any other person
                  and whether or not by any of the following:

                  3.1      the Security Holder making direct advances; or
                  3.2      the Security Holder drawing, accepting, endorsing,
                           paying or discounting any Remittance; or
                  3.3      the Security Holder entering into any bond,
                           guarantee, indemnity or letter of credit; or
                  3.4      the Security Holder confirming orders; or
                  3.5      the Security Holder otherwise accepting any other
                           liability for or on behalf of the Company;

         4.       all monies which the Security Holder can charge to the Company
                  and all costs charges and expenses incurred by the Security
                  Holder following default in payment of any such monies or of
                  breach by the Company of any of the provisions of this deed.
         5.       the charges of surveyors and/or solicitors instructed by the
                  Security Holder in connection with any part or the Mortgaged
                  Property.
         6.       all costs and charges and expenses which the Security Holder
                  may from time to time incur in:
                  6.1      stamping, perfecting, registering or enforcing this
                           security; or

                                      -23-

<PAGE>

                  6.2      the negotiations for the preparation and execution of
                           this deed, and the Financing Agreement or any
                           guarantee, indemnity, priority arrangement, waiver or
                           consent in respect or them; or
                  6.3      obtaining payment or discharge of Secured Monies; or
                  6.4      paying any rent, rates, taxes or outgoings for the
                           Mortgaged Property; or
                  6.5      insuring, repairing, maintaining, managing or
                           realising any part of the Mortgaged Property; or
                  6.6      the preservation or exercise of any rights under or
                           in connection with this deed or any attempt to do so;
                           or
                  6.7      giving a discharge or release of this security; or
                  6.8      dealing with or obtaining advice about any other
                           matter or question arising out of or in connection
                           with this deed with the intention that the Security
                           Holder shall be afforded a full complete and
                           unlimited indemnity against all costs, charges and
                           expenses paid or incurred by it and whether arising
                           directly or indirectly in respect of this security or
                           of any other security held by the Security Holder for
                           the Secured Monies;
         7.       all monies expended by any attorney appointed under clause 5.3
                  in exercising his powers;
         8.       interest on all monies due and owing to the Security Holder at
                  such rate as may from time to time be payable pursuant to any
                  agreement or arrangement relating thereto.

         "SECURITIES"; - all stocks, shares, bonds and securities of any kind
         whatsoever and whether marketable or otherwise and all other interests
         (including but not limited to loan capital) both present and future
         held by the Company in any person and includes all allotments, rights,
         benefits and advantages whatsoever at any time accruing, offered or
         arising in respect of or incidental to the same and all money or
         property offered at any time by way of dividend, conversion,
         redemption, bonus, preference, option or otherwise in respect thereof.

         "SECURITY HOLDER"; - where the context permits includes its officers,
         agents and representatives.

         "SUBSIDIARY"; -

                  1.       a subsidiary within the meaning of Section 736 of the
                           Companies Act 1985; and
                  2.       unless the context otherwise requires, a subsidiary
                           undertaking within the meaning of Sections 258-260 of
                           the Companies Act 1985 its substituted by Section 21
                           of the Companies Act 1989.

         21.3     In the construction and interpretation of this deed:

                  21.3.1   the singular shall include the plural and vice versa;
                           reference to one gender shall include a reference to
                           any other genders;

                                      -24-

<PAGE>

                  21.3.2   references to persons shall be treated as including
                           individuals, firms, partnerships, corporations,
                           organs of government, whether local, national or
                           supra national and any other entity recognised by
                           law;
                  21.3.3   references to any Act of Parliament shall be treated
                           as including each Act as amended, modified or
                           re-enacted from time to time and all rules,
                           regulations, orders and subordinate legislation made
                           in accordance with it;
                  21.3.4   references to clauses and to schedules are to those
                           in this deed;
                  21.3.5   where the Company has an obligation to carry out an
                           act then it shall be fully responsible for the costs
                           and expenses or doing so;
                  21.3.6   where the Security Holder acts in accordance with
                           this deed the Company will indemnify the Security
                           Holder against all costs and expenses incurred;
                  21.3.7   where any discretion is vested in a Receiver or the
                           Security Holder it shall be treated as an absolute
                           discretion;
                  21.3.8   each of the provisions of this deed shall be
                           severable and distinct from one another;
                  21.3.9   references to this deed and other documents referred
                           to in it includes any supplemental or collateral
                           document to each of them or which is entered into
                           pursuant to each of them and any document varying,
                           supplementing, novating or replacing the same from
                           time to time;
                  21.3.10  references to charges shall be treated as references
                           to mortgages and charges created by this deed;
                  21.3.11  references to this security shall be treated as
                           reference to the security created by this deed;
                  2.1.3.12 any powers given in this deed to an administrator
                           shall apply to the littlest extent permitted by the
                           insolvency Act 1986;
                  21.3.13  headings to clauses are for reference only and shall
                           not affect the interpretation of this deed;
                  21.3.14  the meaning of general words introduced by the word
                           other or the word otherwise shall not be limited by
                           reference to any preceding word or enumeration
                           indicating a particular class of acts, matters or
                           things.

                                      -25-

<PAGE>

                                 FIRST SCHEDULE
                             (Page 3 - The Parties)

The Company Xcel Power Systems Limited, a Company registered in England and
Wales with Companies Registry number 00575679 and whose registered office is at:
Brunswick Road, Cobbs Wood, Ashford, Kent TN23 1EB

                                 SECOND SCHEDULE
                (Clause 21 (Definition of "Financing Agreement"),
                             Clauses 1.11 and 6.1.1)

The Agreement for the purchase of Debts entered into between the Company and the
Security Holder dated

                                 THIRD SCHEDULE
                                 (Clause 2.1.1)

Land Registered at H.M. Land Registry

None

London Borough/County and District

Title Numbers and Description

                                 FOURTH SCHEDULE
                            (Clauses 2.4 and 18.2.l)

Encumbrances to which this security is subject.

                                 FIFTH SCHEDULE
                               (Clause 2.1.2(iv))
           (Plant and machinery subject to chattel mortgage hereunder)

To be Advised

                                      -26-

<PAGE>

IN WITNESS whereof the parties have executed this deed on the 28 day of
June 2005 which is the date on which this deed becomes effective.

THE COMPANY

EXECUTED AND DELIVERED AS A DEED    )
                                    )
BY XCEL POWER SYSTEMS LIMITED       )
                                    )
                                    )
and by ........................     )
(Director)**                        )        Signature of Director
                                    )
                                    )
and** .........................     )
(* Director/Company Secretary       )        Signature of *Director/Company
                                    )        Secretary

THE SECURITY HOLDER

SIGNED and :DELIVERED as a Deed on
         day of                              on behalf of
LLOYDS TSB COMMERCIAL FINANCE LIMITED
                                                     )
by       1.**                                        )
                  duly appointed attorney            )
                                                     )   Attorney (s) for Lloyds
         2.**                                        )   TSB Commercial Finance
                  duly appointed attorney            )   imited
                                                     )

In the presence of:                                  )
Signature:   ..................................      )
                                                     )
Name:**      ..................................      )   Witness (only required
                                                     )   if one attorney signs)
Occupation:  ..................................      )
                                                     )
Address:     ..................................      )
                                                     )
             ..................................      )

Key   **  insert full names
      *   delete as applicable

                                      -27-SECURITIES PURCHASE AGREEMENT

      SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of November
4, 2005, by and among MT Ultimate Healthcare Corp., a Nevada corporation, with
headquarters located at 45 Main Street, Suite 617, Brooklyn, NY 11201 (the
"Company"), and each of the purchasers set forth on the signature pages hereto
(the "Buyers").

      WHEREAS:

      A.   The Company and the Buyers are executing and delivering this
Agreement in reliance upon the exemption from securities registration afforded
by the rules and regulations as promulgated by the United States Securities
and Exchange Commission (the "SEC") under the Securities Act of 1933, as
amended (the "1933 Act");

      B.   Buyers desire to purchase and the Company desires to issue and
sell, upon the terms and conditions set forth in this Agreement i) 8% secured
convertible notes of the Company, in the form attached hereto as Exhibit "A",
in the aggregate principal amount of Three Million Dollars ($3,000,000)
(together with any note(s) issued in replacement thereof or as a dividend
thereon or otherwise with respect thereto in accordance with the terms
thereof, the "Notes"), convertible into shares of common stock, par value
$.001 per share, of the Company (the "Common Stock"), upon the terms and
subject to the limitations and conditions set forth in such Notes and ii)
warrants, in the form attached hereto as Exhibit "B", to purchase 15,000,000
shares of Common Stock (the "Warrants").

      C.   Each Buyer wishes to purchase, upon the terms and conditions stated
in this Agreement, such principal amount of Notes and number of Warrants as is
set forth immediately below its name on the signature pages hereto; and
D.   Contemporaneous with the execution and delivery of this Agreement, the
parties hereto are executing and delivering a Registration Rights Agreement,
in the form attached hereto as Exhibit "C" (the "Registration Rights
Agreement"), pursuant to which the Company has agreed to provide certain
registration rights under the 1933 Act and the rules and regulations
promulgated thereunder, and applicable state securities laws.
NOW THEREFORE, the Company and each of the Buyers severally (and not jointly)
hereby agree as follows:

      1.   PURCHASE AND SALE OF NOTES AND WARRANTS.

            a.   Purchase of Notes and Warrants.  On the Closing Date (as
defined below), the Company shall issue and sell to each Buyer and each Buyer
severally agrees to purchase from the Company such principal amount of Notes
and number of Warrants as is set forth immediately below such Buyer's name on
the signature pages hereto.

            b.   Form of Payment.  On the Closing Date (as defined below), i)
each Buyer shall pay the purchase price for the Notes and the Warrants to be
issued and sold to it at the Closing (as defined below) (the "Purchase Price")
by wire transfer of immediately available funds to the Company, in accordance
with the Company's written wiring instructions, against delivery of the Notes
in the principal amount equal to the Purchase Price and the number of Warrants
as is set forth immediately below such Buyer's name on the signature pages
hereto, and ii) the Company shall deliver such Notes and Warrants duly
executed on behalf of the Company, to such Buyer, against delivery of such
Purchase Price.

            c.   Closing Date.  Subject to the satisfaction (or written
waiver) of the conditions thereto set forth in Section 6 and Section 7 below,
the date and time of the issuance and sale of the Notes and the Warrants
pursuant to this Agreement (the "Closing Date") shall be 12:00 noon, Eastern
Standard Time on November 4, 2005, or such other mutually agreed upon time.
The closing of the transactions contemplated by this Agreement (the "Closing")
shall occur on the Closing Date at such location as may be agreed to by the
parties.

      2.   BUYERS' REPRESENTATIONS AND WARRANTIES.  Each Buyer severally (and
not jointly) represents and warrants to the Company solely as to such Buyer
that:

            a.   Investment Purpose.  As of the date hereof, the Buyer is
purchasing the Notes and the shares of Common Stock issuable upon conversion
of or otherwise pursuant to the Notes (including, without limitation, such
additional shares of Common Stock, if any, as are issuable i) on account of
interest on the Notes, ii) as a result of the events described in Sections 1.3
and 1.4(g) of the Notes and Section 2(c) of the Registration Rights Agreement
or iii) in payment of the Standard Liquidated Damages Amount (as defined in
Section 2(f) below) pursuant to this Agreement, such shares of Common Stock
being collectively referred to herein as the "Conversion Shares") and the
Warrants and the shares of Common Stock issuable upon exercise thereof (the
"Warrant Shares" and, collectively with the Notes, Warrants and Conversion
Shares, the "Securities") for its own account and not with a present view
towards the public sale or distribution thereof, except pursuant to sales
registered or exempted from registration under the 1933 Act; provided,
however, that by making the representations herein, the Buyer does not agree
to hold any of the Securities for any minimum or other specific term and
reserves the right to dispose of the Securities at any time in accordance with
or pursuant to a registration statement or an exemption under the 1933 Act.
b.   Accredited Investor Status.  The Buyer is an "accredited investor" as
that term is defined in Rule 501(a) of Regulation D (an "Accredited
Investor").

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

            d.   Information.  The Buyer and its advisors, if any, have been,
and for so long as the Notes and Warrants remain outstanding will continue to
be, furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the
Securities which have been requested by the Buyer or its advisors.  The Buyer
and its advisors, if any, have been, and for so long as the Notes and Warrants
remain outstanding will continue to be, afforded the opportunity to ask
questions of the Company.  Notwithstanding the foregoing, the Company has not
disclosed to the Buyer any material nonpublic information and will not
disclose such information unless such information is disclosed to the public
prior to or promptly following such disclosure to the Buyer.  Neither such
inquiries nor any other due diligence investigation conducted by Buyer or any
of its advisors or representatives shall modify, amend or affect Buyer's right
to rely on the Company's representations and warranties contained in Section 3
below.  The Buyer understands that its investment in the Securities involves a
significant degree of risk.

            e.   Governmental Review.  The Buyer understands that no United
States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

            f.   Transfer or Re-sale.  The Buyer understands that i) except as
provided in the Registration Rights Agreement, the sale or re-sale of the
Securities has not been and is not being registered under the 1933 Act or any
applicable state securities laws, and the Securities may not be transferred
unless ii) the Securities are sold pursuant to an effective registration
statement under the 1933 Act, iii) the Buyer shall have delivered to the
Company an opinion of counsel that shall be in form, substance and scope
customary for opinions of counsel in comparable transactions to the effect
that the Securities to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration, which opinion shall be
accepted by the Company, iv) the Securities are sold or transferred to an
"affiliate" (as defined in Rule 144 promulgated under the 1933 Act (or a
successor rule) ("Rule 144")) of the Buyer who agrees to sell or otherwise
transfer the Securities only in accordance with this Section 2(f) and who is
an Accredited Investor, v) the Securities are sold pursuant to Rule 144, or
vi) the Securities are sold pursuant to Regulation S under the 1933 Act (or a
successor rule) ("Regulation S"), and the Buyer shall have delivered to the
Company an opinion of counsel that shall be in form, substance and scope
customary for opinions of counsel in corporate transactions, which opinion
shall be accepted by the Company; (ii) any sale of such Securities made in
reliance on Rule 144 may be made only in accordance with the terms of said
Rule and further, if said Rule is not applicable, any re-sale of such
Securities under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined
in the 1933 Act) may require compliance with some other exemption under the
1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither
the Company nor any other person is under any obligation to register such
Securities under the 1933 Act or any state securities laws or to comply with
the terms and conditions of any exemption thereunder (in each case, other than
pursuant to the Registration Rights Agreement).  Notwithstanding the foregoing
or anything else contained herein to the contrary, the Securities may be
pledged as collateral in connection with a bona fide margin account or other
lending arrangement.  In the event that the Company does not accept the
opinion of counsel provided by the Buyer with respect to the transfer of
Securities pursuant to an exemption from registration, such as Rule 144 or
Regulation S, within three (3) business days of delivery of the opinion to the
Company, the Company shall pay to the Buyer liquidated damages of three
percent (3%) of the outstanding amount of the Notes per month plus accrued and
unpaid interest on the Notes, prorated for partial months, in cash or shares
at the option of the Company ("Standard Liquidated Damages Amount").  If the
Company elects to be pay the Standard Liquidated Damages Amount in shares of
Common Stock, such shares shall be issued at the Conversion Price at the time
of payment.

            g.   Legends.  The Buyer understands that the Notes and the
Warrants and, until such time as the Conversion Shares and Warrant Shares have
been registered under the 1933 Act as contemplated by the Registration Rights
Agreement or otherwise may be sold pursuant to Rule 144 or Regulation S
without any restriction as to the number of securities as of a particular date
that can then be immediately sold, the Conversion Shares and Warrant Shares
may bear a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of the certificates for
such Securities):

      "The securities represented by this certificate have not been
      registered under the Securities Act of 1933, as amended.  The
      securities may not be sold, transferred or assigned in the
      absence of an effective registration statement for the securities
      under said Act, or an opinion of counsel, in form, substance
      and scope customary for opinions of counsel in comparable
      transactions, that registration is not required under said Act
      or unless sold pursuant to Rule 144 or Regulation S under said Act."

      The legend set forth above shall be removed and the Company shall issue
a certificate without such legend to the holder of any Security upon which it
is stamped, if, unless otherwise required by applicable state securities laws,
(a) such Security is registered for sale under an effective registration
statement filed under the 1933 Act or otherwise may be sold pursuant to Rule
144 or Regulation S without any restriction as to the number of securities as
of a particular date that can then be immediately sold, or (b) such holder
provides the Company with an opinion of counsel, in form, substance and scope
customary for opinions of counsel in comparable transactions, to the effect
that a public sale or transfer of such Security may be made without
registration under the 1933 Act, which opinion shall be accepted by the
Company so that the sale or transfer is effected or (c) such holder provides
the Company with reasonable assurances that such Security can be sold pursuant
to Rule 144 or Regulation S.  The Buyer agrees to sell all Securities,
including those represented by a certificate(s) from which the legend has been
removed, in compliance with applicable prospectus delivery requirements, if
any.

            h.   Authorization; Enforcement. This Agreement and the
Registration Rights Agreement have been duly and validly authorized.  This
Agreement has been duly executed and delivered on behalf of the Buyer, and
this Agreement constitutes, and upon execution and delivery by the Buyer of
the Registration Rights Agreement, such agreement will constitute, valid and
binding agreements of the Buyer enforceable in accordance with their terms.

            i.   Residency.  The Buyer is a resident of the jurisdiction set
forth immediately below such Buyer's name on the signature pages hereto.

      3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company
represents and warrants to each Buyer that:

            a.   Organization and Qualification.  The Company and each of its
Subsidiaries (as defined below), if any, is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in
which it is incorporated, with full power and authority (corporate and other)
to own, lease, use and operate its properties and to carry on its business as
and where now owned, leased, used, operated and conducted.  Schedule 3(a) sets
forth a list of all of the Subsidiaries of the Company and the jurisdiction in
which each is incorporated.  The Company and each of its Subsidiaries is duly
qualified as a foreign corporation to do business and is in good standing in
every jurisdiction in which its ownership or use of property or the nature of
the business conducted by it makes such qualification necessary except where
the failure to be so qualified or in good standing would not have a Material
Adverse Effect.  "Material Adverse Effect" means any of (i) a material and
adverse effect on the legality, validity or enforceability of any document
executed in connection with this financing, (ii) a material and adverse effect
on the results of operations, assets, prospects, business or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a
whole, or (iii) an adverse impairment to the Company's ability to perform
under any of the documents executed in connection with this financing.
"Subsidiaries" means any corporation or other organization, whether
incorporated or unincorporated, in which the Company owns, directly or
indirectly, any equity or other ownership interest.

            b.   Authorization; Enforcement.  (i) Subject to Stockholder
Approval (as such term is defined herein), the Company has all requisite
corporate power and authority to enter into and perform this Agreement, the
Registration Rights Agreement, the Notes and the Warrants and to consummate
the transactions contemplated hereby and thereby and to issue the Securities,
in accordance with the terms hereof and thereof, (ii) the execution and
delivery of this Agreement, the Registration Rights Agreement, the Notes and
the Warrants by the Company and the consummation by it of the transactions
contemplated hereby and thereby (including without limitation, the issuance of
the Notes and the Warrants and the issuance and reservation for issuance of
the Conversion Shares and Warrant Shares issuable upon conversion or exercise
thereof) have been duly authorized by the Company's Board of Directors and no
further consent or authorization of the Company, its Board of Directors, or
its shareholders is required, (iii) this Agreement has been duly executed and
delivered by the Company by its authorized representative, and such authorized
representative is the true and official representative with authority to sign
this Agreement and the other documents executed in connection herewith and
bind the Company accordingly, and (iv) this Agreement constitutes, and upon
execution and delivery by the Company of the Registration Rights Agreement,
the Notes and the Warrants, each of such instruments will constitute, a legal,
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms.

            c.   Capitalization.  As of the date hereof, the authorized
capital stock of the Company consists of (i) [          ] shares of Common
Stock, par value $.001 per share, of which [              ] shares are issued
and outstanding, and [      ] shares are reserved for issuance, and subject to
Stockholder Approval (as such term is defined herein), 600,000,000 shares are
reserved for issuance upon conversion of the Notes and the Additional Notes
(as defined in Section 4(l)) and exercise of the Warrants and the Additional
Warrants (as defined in Section 4(l)); and (ii) [               ] shares of
preferred stock, of which 0 shares are issued and outstanding.  All of such
outstanding shares of capital stock are, or upon issuance will be, duly
authorized, validly issued, fully paid and nonassessable.  No shares of
capital stock of the Company are subject to preemptive rights or any other
similar rights of the shareholders of the Company or any liens or encumbrances
imposed through the actions or failure to act of the Company.  Except as
disclosed in Schedule 3(c), as of the effective date of this Agreement, (i)
there are no outstanding options, warrants, scrip, rights to subscribe for,
puts, calls, rights of first refusal, agreements, understandings, claims or
other commitments or rights of any character whatsoever relating to, or
securities or rights convertible into or exchangeable for any shares of
capital stock of the Company or any of its Subsidiaries, or arrangements by
which the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries,
(ii) there are no agreements or arrangements under which the Company or any of
its Subsidiaries is obligated to register the sale of any of its or their
securities under the 1933 Act (except the Registration Rights Agreement) and
(iii) there are no anti-dilution or price adjustment provisions contained in
any security issued by the Company (or in any agreement providing rights to
security holders) that will be triggered by the issuance of the Notes, the
Warrants, the Conversion Shares or Warrant Shares.  The Company has furnished
to the Buyer true and correct copies of the Company's Certificate of
Incorporation as in effect on the date hereof ("Certificate of
Incorporation"), the Company's By-laws, as in effect on the date hereof (the
"By-laws"), and the terms of all securities convertible into or exercisable
for Common Stock of the Company and the material rights of the holders thereof
in respect thereto.  The Company shall provide the Buyer with a written update
of this representation signed by the Company's Chief Executive or Chief
Financial Officer on behalf of the Company as of the Closing Date.

            d.   Issuance of Shares.  Subject to Stockholder Approval, the
Conversion Shares and Warrant Shares are duly authorized and reserved for
issuance and, upon conversion of the Notes and exercise of the Warrants in
accordance with their respective terms, will be validly issued, fully paid and
non-assessable, and free from all taxes, liens, claims and encumbrances with
respect to the issue thereof and shall not be subject to preemptive rights or
other similar rights of shareholders of the Company and will not impose
personal liability upon the holder thereof.

            e.   Acknowledgment of Dilution.  The Company understands and
acknowledges the potentially dilutive effect to the Common Stock upon the
issuance of the Conversion Shares and Warrant Shares upon conversion of the
Note or exercise of the Warrants.  The Company further acknowledges that its
obligation to issue Conversion Shares and Warrant Shares upon conversion of
the Notes or exercise of the Warrants in accordance with this Agreement, the
Notes and the Warrants is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of
other shareholders of the Company.

            f.   No Conflicts.  Subject to Stockholder Approval (as such term
is defined herein), the execution, delivery and performance of this Agreement,
the Registration Rights Agreement, the Notes and the Warrants by the Company
and the consummation by the Company of the transactions contemplated hereby
and thereby (including, without limitation, the issuance and reservation for
issuance of the Conversion Shares and Warrant Shares) will not (i) conflict
with or result in a violation of any provision of the Certificate of
Incorporation or By-laws or (ii) violate or conflict with, or result in a
breach of any provision of, or constitute a default (or an event which with
notice or lapse of time or both could become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
any agreement, indenture, patent, patent license or instrument to which the
Company or any of its Subsidiaries is a party, or (iii)  result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and
state securities laws and regulations and regulations of any self-regulatory
organizations to which the Company or its securities are subject) applicable
to the Company or any of its Subsidiaries or by which any property or asset of
the Company or any of its Subsidiaries is bound or affected (except for such
conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations as would not, individually or in the aggregate, have a Material
Adverse Effect).  Neither the Company nor any of its Subsidiaries is in
violation of its Certificate of Incorporation, By-laws or other organizational
documents and neither the Company nor any of its Subsidiaries is in default
(and no event has occurred which with notice or lapse of time or both could
put the Company or any of its Subsidiaries in default) under, and neither the
Company nor any of its Subsidiaries has taken any action or failed to take any
action that would give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to
which the Company or any of its Subsidiaries is a party or by which any
property or assets of the Company or any of its Subsidiaries is bound or
affected, except for possible defaults as would not, individually or in the
aggregate, have a Material Adverse Effect. The businesses of the Company and
its Subsidiaries, if any, are not being conducted, and shall not be conducted
so long as a Buyer owns any of the Securities, in violation of any law,
ordinance or regulation of any governmental entity.  Except as specifically
contemplated by this Agreement and as required under the 1933 Act and any
applicable state securities laws, the Company is not required to obtain any
consent, authorization or order of, or make any filing or registration with,
any court, governmental agency, regulatory agency, self regulatory
organization or stock market or any third party in order for it to execute,
deliver or perform any of its obligations under this Agreement, the
Registration Rights Agreement, the Notes or the Warrants in accordance with
the terms hereof or thereof or to issue and sell the Notes and Warrants in
accordance with the terms hereof and to issue the Conversion Shares upon
conversion of the Notes and the Warrant Shares upon exercise of the Warrants.
Except as disclosed in Schedule 3(f), all consents, authorizations, orders,
filings and registrations which the Company is required to obtain pursuant to
the preceding sentence have been obtained or effected on or prior to the date
hereof.  The Company is not in violation of the quotation requirements of the
Over-the-Counter Bulletin Board (the "OTCBB") and does not reasonably
anticipate that the Common Stock will be delisted by the OTCBB in the
foreseeable future.  The Company and its Subsidiaries are unaware of any facts
or circumstances which might give rise to any of the foregoing.

            g.   SEC Documents; Financial Statements.  Except as disclosed in
Schedule 3(g), the Company has timely filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Securities Exchange Act of 1934,
as amended (the "1934 Act") (all of the foregoing filed prior to the date
hereof and all exhibits included therein and financial statements and
schedules thereto and documents (other than exhibits to such documents)
incorporated by reference therein, being hereinafter referred to herein as the
"SEC Documents").  The Company has delivered to each Buyer true and complete
copies of the SEC Documents, except for such exhibits and incorporated
documents.  As of their respective dates, the SEC Documents complied in all
material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.  None of the statements made in any such SEC Documents is, or
has been, required to be amended or updated under applicable law (except for
such statements as have been amended or updated in subsequent filings prior
the date hereof).  As of their respective dates, the financial statements of
the Company included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto.  Such financial statements have
been prepared in accordance with United States generally accepted accounting
principles, consistently applied, during the periods involved (except (i) as
may be otherwise indicated in such financial statements or the notes thereto,
or (ii) in the case of unaudited interim statements, to the extent they may
not include footnotes or may be condensed or summary statements) and fairly
present in all material respects the consolidated financial position of the
Company and its consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments).  Except as set forth in the financial statements of the Company
included in the SEC Documents, the Company has no liabilities, contingent or
otherwise, other than (i) liabilities incurred in the ordinary course of
business subsequent to December 31, 2004 and (ii) obligations under contracts
and commitments incurred in the ordinary course of business and not required
under generally accepted accounting principles to be reflected in such
financial statements, which, individually or in the aggregate, are not
material to the financial condition or operating results of the Company.

            h.   Absence of Certain Changes.  Since December 31, 2004, there
has been no material adverse change and no material adverse development in the
assets, liabilities, business, properties, operations, financial condition,
results of operations or prospects of the Company or any of its Subsidiaries.

            i.   Absence of Litigation.  There is no action, suit, claim,
proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the
knowledge of the Company or any of its Subsidiaries, threatened against or
affecting the Company or any of its Subsidiaries, or their officers or
directors in their capacity as such, that could have a Material Adverse
Effect.  Schedule 3(i) contains a complete list and summary description of any
pending or threatened proceeding against or affecting the Company or any of
its Subsidiaries, without regard to whether it would have a Material Adverse
Effect.  The Company and its Subsidiaries are unaware of any facts or
circumstances which might give rise to any of the foregoing.

            j.   Patents, Copyrights, etc.  The Company and each of its
Subsidiaries owns or possesses the requisite licenses or rights to use all
patents, patent applications, patent rights, inventions, know-how, trade
secrets, trademarks, trademark applications, service marks, service names,
trade names and copyrights ("Intellectual Property") necessary to enable it to
conduct its business as now operated (and, except as set forth in Schedule
3(j) hereof, to the best of the Company's knowledge, as presently contemplated
to be operated in the future); there is no claim or action by any person
pertaining to, or proceeding pending, or to the Company's knowledge
threatened, which challenges the right of the Company or of a Subsidiary with
respect to any Intellectual Property necessary to enable it to conduct its
business as now operated (and, except as set forth in Schedule 3(j) hereof, to
the best of the Company's knowledge, as presently contemplated to be operated
in the future); to the best of the Company's knowledge, the Company's or its
Subsidiaries' current and intended products, services and processes do not
infringe on any Intellectual Property or other rights held by any person; and
the Company is unaware of any facts or circumstances which might give rise to
any of the foregoing.  The Company and each of its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value
of their Intellectual Property.

            k.   No Materially Adverse Contracts, Etc.  Neither the Company
nor any of its Subsidiaries is subject to any charter, corporate or other
legal restriction, or any judgment, decree, order, rule or regulation which in
the judgment of the Company's officers has or is expected in the future to
have a Material Adverse Effect.  Neither the Company nor any of its
Subsidiaries is a party to any contract or agreement which in the judgment of
the Company's officers has or is expected to have a Material Adverse Effect.

            l.   Tax Status.  Except as set forth on Schedule 3(l), the
Company and each of its Subsidiaries has made or filed all federal, state and
foreign income and all other tax returns, reports and declarations required by
any jurisdiction to which it is subject (unless and only to the extent that
the Company and each of its Subsidiaries has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) and
has paid all taxes and other governmental assessments and charges that are
material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has set aside on
its books provisions reasonably adequate for the payment of all taxes for
periods subsequent to the periods to which such returns, reports or
declarations apply.  There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the
Company know of no basis for any such claim.  The Company has not executed a
waiver with respect to the statute of limitations relating to the assessment
or collection of any foreign, federal, state or local tax.  Except as set
forth on Schedule 3(l), none of the Company's tax returns is presently being
audited by any taxing authority.

            m.   Certain Transactions.  Except as set forth on Schedule 3(m)
and except for arm's length transactions pursuant to which the Company or any
of its Subsidiaries makes payments in the ordinary course of business upon
terms no less favorable than the Company or any of its Subsidiaries could
obtain from third parties and other than the grant of stock options disclosed
on Schedule 3(c), none of the officers, directors, or employees of the Company
is presently a party to any transaction with the Company or any of its
Subsidiaries (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any officer,
director, or any such employee has a substantial interest or is an officer,
director, trustee or partner.

            n.   Disclosure.  All information relating to or concerning the
Company or any of its Subsidiaries set forth in this Agreement and provided to
the Buyers pursuant to Section 2(d) hereof and otherwise in connection with
the transactions contemplated hereby is true and correct in all material
respects and the Company has not omitted to state any material fact necessary
in order to make the statements made herein or therein, in light of the
circumstances under which they were made, not misleading.  No event or
circumstance has occurred or exists with respect to the Company or any of its
Subsidiaries or its or their business, properties, prospects, operations or
financial conditions, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company but which has not
been so publicly announced or disclosed (assuming for this purpose that the
Company's reports filed under the 1934 Act are being incorporated into an
effective registration statement filed by the Company under the 1933 Act).

            o.   Acknowledgment Regarding Buyers' Purchase of Securities.  The
Company acknowledges and agrees that the Buyers are acting solely in the
capacity of arm's length purchasers with respect to this Agreement and the
transactions contemplated hereby.  The Company further acknowledges that no
Buyer is acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any statement made by any Buyer or any of their
respective representatives or agents in connection with this Agreement and the
transactions contemplated hereby is not advice or a recommendation and is
merely incidental to the Buyers' purchase of the Securities.  The Company
further represents to each Buyer that the Company's decision to enter into
this Agreement has been based solely on the independent evaluation of the
Company and its representatives.

            p.   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 in any security or solicited any offers to
buy any security under circumstances that would require registration under the
1933 Act of the issuance of the Securities to the Buyers.  The issuance of the
Securities to the Buyers will not be integrated with any other issuance of the
Company's securities (past, current or future) for purposes of any shareholder
approval provisions applicable to the Company or its securities.

            q.   No Brokers.  Except as set forth in Schedule 3(q), the
Company has taken no action which would give rise to any claim by any person
for brokerage commissions, transaction fees or similar payments relating to
this Agreement or the transactions contemplated hereby.

            r.   Permits; Compliance.  The Company and each of its
Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates,
approvals and orders necessary to own, lease and operate its properties and to
carry on its business as it is now being conducted (collectively, the "Company
Permits"), and there is no action pending or, to the knowledge of the Company,
threatened regarding suspension or cancellation of any of the Company Permits.
Neither the Company nor any of its Subsidiaries is in conflict with, or in
default or violation of, any of the Company Permits, except for any such
conflicts, defaults or violations which, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect.  Since
December 31, 2004, neither the Company nor any of its Subsidiaries has
received any notification with respect to possible conflicts, defaults or
violations of applicable laws, except for notices relating to possible
conflicts, defaults or violations, which conflicts, defaults or violations
would not have a Material Adverse Effect.

            s.   Environmental Matters.

                  (i)   Except as set forth in Schedule 3(s), there are, to
the Company's knowledge, with respect to the Company or any of its
Subsidiaries or any predecessor of the Company, no past or present violations
of Environmental Laws (as defined below), releases of any material into the
environment, actions, activities, circumstances, conditions, events,
incidents, or contractual obligations which may give rise to any common law
environmental liability or any liability under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 or similar federal, state,
local or foreign laws and neither the Company nor any of its Subsidiaries has
received any notice with respect to any of the foregoing, nor is any action
pending or, to the Company's knowledge, threatened in connection with any of
the foregoing.  The term "Environmental Laws" means all federal, state, local
or foreign laws relating to pollution or protection of human health or the
environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata), including, without
limitation, laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants contaminants, or toxic or hazardous
substances or wastes (collectively, "Hazardous Materials") into the
environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials, as well as all authorizations, codes, decrees, demands or
demand letters, injunctions, judgments, licenses, notices or notice letters,
orders, permits, plans or regulations issued, entered, promulgated or approved
thereunder.

                  (ii)   Other than those that are or were stored, used or
disposed of in compliance with applicable law, no Hazardous Materials are
contained on or about any real property currently owned, leased or used by the
Company or any of its Subsidiaries, and no Hazardous Materials were released
on or about any real property previously owned, leased or used by the Company
or any of its Subsidiaries during the period the property was owned, leased or
used by the Company or any of its Subsidiaries, except in the normal course of
the Company's or any of its Subsidiaries' business.

                  (iii)   Except as set forth in Schedule 3(s), there are no
underground storage tanks on or under any real property owned, leased or used
by the Company or any of its Subsidiaries that are not in compliance with
applicable law.

            t.   Title to Property.  The Company and its Subsidiaries have
good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to
the business of the Company and its Subsidiaries, in each case free and clear
of all liens, encumbrances and defects except such as are described in
Schedule 3(t) or such as would not have a Material Adverse Effect.  Any real
property and facilities held under lease by the Company and its Subsidiaries
are held by them under valid, subsisting and enforceable leases with such
exceptions as would not have a Material Adverse Effect.

            u.   Insurance.  The Company and each of its Subsidiaries are
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as management of the Company believes to be
prudent and customary in the businesses in which the Company and its
Subsidiaries are engaged.  Neither the Company nor any such Subsidiary has any
reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that
would not have a Material Adverse Effect.  The Company has provided to Buyer
true and correct copies of all policies relating to directors' and officers'
liability coverage, errors and omissions coverage, and commercial general
liability coverage.

            v.   Internal Accounting Controls.  The Company and each of its
Subsidiaries maintain a system of internal accounting controls sufficient, in
the judgment of the Company's board of directors, to provide reasonable
assurance that (i) transactions are executed in accordance with management's
general or specific authorizations, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability,
(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.

            w.   Foreign Corrupt Practices.  Neither the Company, nor any of
its Subsidiaries, nor any director, officer, agent, employee or other person
acting on behalf of the Company or any Subsidiary has, in the course of his
actions for, or on behalf of, the Company, used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expenses relating
to political activity; made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate funds;
violated or is in violation of any provision of the U.S. Foreign Corrupt
Practices Act of 1977, as amended, or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or
domestic government official or employee.

            x.   Solvency.  The Company (after giving effect to the
transactions contemplated by this Agreement) is solvent (i.e., its assets have
a fair market value in excess of the amount required to pay its probable
liabilities on its existing debts as they become absolute and matured) and
currently the Company has no information that would lead it to reasonably
conclude that the Company would not, after giving effect to the transaction
contemplated by this Agreement, have the ability to, nor does it intend to
take any action that would impair its ability to, pay its debts from time to
time incurred in connection therewith as such debts mature.  The Company did
not receive a qualified opinion from its auditors with respect to its most
recent fiscal year end and, after giving effect to the transactions
contemplated by this Agreement, does not anticipate or know of any basis upon
which its auditors might issue a qualified opinion in respect of its current
fiscal year.

            y.   No Investment Company.  The Company is not, and upon the
issuance and sale of the Securities as contemplated by this Agreement will not
be an "investment company" required to be registered under the Investment
Company Act of 1940 (an "Investment Company").  The Company is not controlled
by an Investment Company.

            z.   Breach of Representations and Warranties by the Company.  If
the Company breaches any of the representations or warranties set forth in
this Section 3, which breach remains uncured or unwaived for a period of ten
(10) business days following the Company's receipt of notice of such breach,
then and in addition to any other remedies available to the Buyers pursuant to
this Agreement, the Company shall pay to the Buyer the Standard Liquidated
Damages Amount in cash or in shares of Common Stock at the option of the
Company, until such breach is cured.  If the Company elects to pay the
Standard Liquidated Damages Amounts in shares of Common Stock, such shares
shall be issued at the Conversion Price at the time of payment.

      4.   COVENANTS.

            a.   Best Efforts.  The parties shall use their best efforts to
satisfy timely each of the conditions described in Sections 6 and 7 of this
Agreement.

            b.   Form D; Blue Sky Laws.  The Company agrees to file a Form D
with respect to the Securities as required under Regulation D and to provide a
copy thereof to each Buyer promptly after such filing.  The Company shall, on
or before the Closing Date, take such action as the Company shall reasonably
determine is necessary to qualify the Securities for sale to the Buyers at the
applicable closing pursuant to this Agreement under applicable securities or
"blue sky" laws of the states of the United States (or to obtain an exemption
from such qualification), and shall provide evidence of any such action so
taken to each Buyer on or prior to the Closing Date.

            c.   Reporting Status; Eligibility to Use Form S-3, SB-2 or Form
S-1.  The Company's Common Stock is registered under Section 12(g) of the 1934
Act. The Company represents and warrants that it meets the requirements for
the use of Form S-3 (or if the Company is not eligible for the use of Form S-3
as of the Filing Date (as defined in the Registration Rights Agreement), the
Company may use the form of registration for which it is eligible at that
time) for registration of the sale by the Buyer of the Registrable Securities
(as defined in the Registration Rights Agreement).  So long as the Buyer
beneficially owns any of the Securities, the Company shall timely file all
reports required to be filed with the SEC pursuant to the 1934 Act, and the
Company shall not terminate its status as an issuer required to file reports
under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would permit such termination.  The Company further agrees to file
all reports required to be filed by the Company with the SEC in a timely
manner so as to become eligible, and thereafter to maintain its eligibility,
for the use of Form S-3.  The Company shall issue a press release describing
the material terms of the transaction contemplated hereby as soon as
practicable following the Closing Date but in no event more than three (3)
business days of the Closing Date, which press release shall be subject to
prior review by the Buyers.  The Company agrees that such press release shall
not disclose the name of the Buyers unless expressly consented to in writing
by the Buyers or unless required by applicable law or regulation, and then
only to the extent of such requirement.

            d.   Use of Proceeds.  The Company shall use the net proceeds from
the sale of the Notes and the Warrants in the manner set forth in Schedule
4(d) attached hereto and made a part hereof and shall not, except as stated in
Schedule 4(d), directly or indirectly, use such proceeds for (i) any loan to
or investment in any other corporation, partnership, enterprise or other
person (except in connection with its currently existing direct or indirect
Subsidiaries); (ii) the satisfaction of any portion of the Company's debt
(other than payment of trade payables and accrued expenses in the ordinary
course of the Company's business and consistent with prior past practices), or
(iii) the redemption of any Common Stock.

            e.   Future Offerings.  Subject to the exceptions described below,
the Company will not, without the prior written consent of a
majority-in-interest of the Buyers, not to be unreasonably withheld, negotiate
or contract with any party to obtain additional equity financing (including
debt financing with an equity component) that involves (A) the issuance of
Common Stock at a discount to the market price of the Common Stock on the date
of issuance (taking into account the value of any warrants or options to
acquire Common Stock issued in connection therewith) or (B) the issuance of
convertible securities that are convertible into an indeterminate number of
shares of Common Stock or (C) the issuance of warrants during the period (the
"Lock-up Period") beginning on the Closing Date and ending on the later of (i)
two hundred seventy (270) days from the Closing Date and (ii) one hundred
eighty (180) days from the date the Registration Statement (as defined in the
Registration Rights Agreement) is declared effective (plus any days in which
sales cannot be made thereunder).  In addition, subject to the exceptions
described below, the Company will not conduct any equity financing (including
debt with an equity component) ("Future Offerings") during the period
beginning on the Closing Date and ending two (2) years after the end of the
Lock-up Period unless it shall have first delivered to each Buyer, at least
twenty (20) business days prior to the closing of such Future Offering,
written notice describing the proposed Future Offering, including the terms
and conditions thereof and proposed definitive documentation to be entered
into in connection therewith, and providing each Buyer an option during the
fifteen (15) day period following delivery of such notice to purchase its pro
rata share (based on the ratio that the aggregate principal amount of Notes
purchased by it hereunder bears to the aggregate principal amount of Notes
purchased hereunder) of the securities being offered in the Future Offering on
the same terms as contemplated by such Future Offering (the limitations
referred to in this sentence and the preceding sentence are collectively
referred to as the "Capital Raising Limitations").  In the event the terms and
conditions of a proposed Future Offering are amended in any respect after
delivery of the notice to the Buyers concerning the proposed Future Offering,
the Company shall deliver a new notice to each Buyer describing the amended
terms and conditions of the proposed Future Offering and each Buyer thereafter
shall have an option during the fifteen (15) day period following delivery of
such new notice to purchase its pro rata share of the securities being offered
on the same terms as contemplated by such proposed Future Offering, as
amended.  The foregoing sentence shall apply to successive amendments to the
terms and conditions of any proposed Future Offering.  The Capital Raising
Limitations shall not apply to any transaction involving (i) issuances of
securities in a firm commitment underwritten public offering (excluding a
continuous offering pursuant to Rule 415 under the 1933 Act, an equity line of
credit or similar financing arrangement) resulting in net proceeds to the
Company of in excess of $15,000,000, (ii) issuances of securities as
consideration for a merger, consolidation or purchase of assets, or in
connection with any strategic partnership or joint venture (the primary
purpose of which is not to raise equity capital), or in connection with the
disposition or acquisition of a business, product or license by the Company;
or (iii) issuance of securities pursuant to any bona fide incentive stock,
employee stock ownership or other compensatory plan or arrangement (the
primary purpose of which is not to raise capital).  The Capital Raising
Limitations also shall not apply to the issuance of securities upon exercise
or conversion of the Company's options, warrants or other convertible
securities outstanding as of the date hereof or to the grant of additional
options or warrants, or the issuance of additional securities, under any
Company stock option or restricted stock plan approved by the shareholders of
the Company.  Notwithstanding anything in  this section 4(e) to the contrary,
in the event the Company's Board of Directors decides, in good faith, to enter
into a transaction or relationship in which the Company issues shares of
Common Stock or other securities of the Company to a person or any entity
which is, itself or through its subsidiaries, an operating company in a
business synergistic with the business of the Company and in which the Company
received benefits in addition to the investment of funds, but shall not
include a transaction in which the Company is issuing securities primarily for
the purpose of raising capital or to an entity whose business is investing in
securities, the Company shall be permitted to do so.

            f.   Expenses.  At the Closing, the Company shall reimburse Buyers
$50,000 for expenses incurred by them in connection with the negotiation,
preparation, execution, delivery and performance of this Agreement and the
other agreements to be executed in connection herewith ("Documents"),
including, without limitation, attorneys' and consultants' fees and expenses,
transfer agent fees, fees for stock quotation services, fees relating to any
amendments or modifications of the Documents or any consents or waivers of
provisions in the Documents, fees for the preparation of opinions of counsel,
escrow fees, and costs of restructuring the transactions contemplated by the
Documents.  When possible, the Company must pay these fees directly, otherwise
the Company must make immediate payment for reimbursement to the Buyers for
all fees and expenses immediately upon written notice by the Buyer or the
submission of an invoice by the Buyer  If the Company fails to reimburse the
Buyer in full within three (3) business days of the written notice or
submission of invoice by the Buyer, the Company shall pay interest on the
total amount of fees to be reimbursed at a rate of 15% per annum.

            g.   Financial Information.  The Company agrees to send the
following reports to each Buyer until such Buyer transfers, assigns, or sells
all of the Securities: i) within ten (10) days after the filing with the SEC,
a copy of its Annual Report on Form 10-KSB its Quarterly Reports on Form
10-QSB and any Current Reports on Form 8-K; ii) within two (2) day after
release, copies of all press releases issued by the Company or any of its
Subsidiaries; and iii) contemporaneously with the making available or giving
to the shareholders of the Company, copies of any notices or other information
the Company makes available or gives to such shareholders.

            h.   Authorization and Reservation of Shares.  The Company shall
at all times have authorized, and reserved for the purpose of issuance, a
sufficient number of shares of Common Stock to provide for the full conversion
or exercise of the outstanding Notes and Warrants and issuance of the
Conversion Shares and Warrant Shares in connection therewith (based on the
Conversion Price of the Notes or Exercise Price of the Warrants in effect from
time to time) and as otherwise required by the Notes.  The Company shall not
reduce the number of shares of Common Stock reserved for issuance upon
conversion of Notes and exercise of the Warrants without the consent of each
Buyer.  The Company shall at all times maintain the number of shares of Common
Stock so reserved for issuance at an amount ("Reserved Amount") equal to no
less than two (2) times the number that is then actually issuable upon full
conversion of the Notes and Additional Notes and upon exercise of the Warrants
and the Additional Warrants (based on the Conversion Price of the Notes or the
Exercise Price of the Warrants in effect from time to time).  If at any time
the number of shares of Common Stock authorized and reserved for issuance
("Authorized and Reserved Shares") is below the Reserved Amount, the Company
will promptly take all corporate action necessary to authorize and reserve a
sufficient number of shares, including, without limitation, calling a special
meeting of shareholders to authorize additional shares to meet the Company's
obligations under this Section 4(h), in the case of an insufficient number of
authorized shares, obtain shareholder approval of an increase in such
authorized number of shares, and voting the management shares of the Company
in favor of an increase in the authorized shares of the Company to ensure that
the number of authorized shares is sufficient to meet the Reserved Amount.  If
the Company fails to obtain such shareholder approval within thirty (30) days
following the date on which the number of Reserved Amount exceeds the
Authorized and Reserved Shares, the Company shall pay to the Borrower the
Standard Liquidated Damages Amount, in cash or in shares of Common Stock at
the option of the Buyer.  If the Buyer elects to be paid the Standard
Liquidated Damages Amount in shares of Common Stock, such shares shall be
issued at the Conversion Price at the time of payment.  In order to ensure
that the Company has authorized a sufficient amount of shares to meet the
Reserved Amount at all times, the Company must deliver to the Buyer at the end
of every month a list detailing (1) the current amount of shares authorized by
the Company and reserved for the Buyer; and (2) amount of shares issuable upon
conversion of the Notes and upon exercise of the Warrants and as payment of
interest accrued on the Notes for one year.  If the Company fails to provide
such list within five (5) business days of the end of each month, the Company
shall pay the Standard Liquidated Damages Amount, in cash or in shares of
Common Stock at the option of the Buyer, until the list is delivered.  If the
Buyer elects to be paid the Standard Liquidated Damages Amount in shares of
Common Stock, such shares shall be issued at the Conversion Price at the time
of payment.

            i.   Listing.  The Company shall promptly secure the listing or
quotation, as the case may be, of the Conversion Shares and Warrant Shares
upon each national securities exchange or automated quotation system, if any,
upon which shares of Common Stock are then listed or quoted, as the case may
be, (subject to official notice of issuance) and, so long as any Buyer owns
any of the Securities, shall maintain, so long as any other shares of Common
Stock shall be so listed or quoted, as the case may be, such listing or
quotation, as the case may be, of all Conversion Shares and Warrant Shares
from time to time issuable upon conversion of the Notes or exercise of the
Warrants.  The Company will obtain and, so long as any Buyer owns any of the
Securities, maintain the listing or quotation, as the case may be, and trading
of its Common Stock on the OTCBB or any equivalent replacement exchange, the
Nasdaq National Market ("Nasdaq"), the Nasdaq SmallCap Market ("Nasdaq
SmallCap"), the New York Stock Exchange ("NYSE"), or the American Stock
Exchange ("AMEX") and will comply in all respects with the Company's
reporting, filing and other obligations under the bylaws or rules of the
National Association of Securities Dealers ("NASD") and such exchanges, as
applicable.  The Company shall promptly provide to each Buyer copies of any
notices it receives from the OTCBB and any other exchanges or quotation
systems on which the Common Stock is then listed or quoted, as the case may
be, regarding the continued eligibility of the Common Stock for listing or
quotation, as the case may be, on such exchanges and quotation systems.

            j.   Corporate Existence.  So long as a Buyer beneficially owns
any Notes or Warrants, the Company shall maintain its corporate existence and
shall not sell all or substantially all of the Company's assets, except in the
event of a merger or consolidation or sale of all or substantially all of the
Company's assets, where the surviving or successor entity in such transaction
(i) assumes the Company's obligations hereunder and under the agreements and
instruments entered into in connection herewith and (ii) is a publicly traded
corporation whose Common Stock is listed for trading on the OTCBB, Nasdaq,
Nasdaq SmallCap, NYSE or AMEX.

            k.   No Integration.  The Company shall not make any offers or
sales of any security (other than the Securities) under circumstances that
would require registration of the Securities being offered or sold hereunder
under the 1933 Act or cause the offering of the Securities to be integrated
with any other offering of securities by the Company for the purpose of any
stockholder approval provision applicable to the Company or its securities.

            l.   Subsequent Investment.  The Company and the Buyers agree
that, upon the filing by the Company of the Registration Statement to be filed
pursuant to the Registration Rights Agreement (the "Filing Date"), the Buyers
shall purchase additional Notes (the "Filing Notes") in the aggregate
principal amount of Eight Hundred and Fifty Thousand Dollars ($850,000) and
additional warrants (the "Filing Warrants") to purchase an aggregate of
4,250,000 shares of Common Stock, for an aggregate purchase price of Eight
Hundred and Fifty Thousand Dollars ($850,000), with the closing of such
purchase to occur within five (5) days of the Filing Date; provided, however,
that the obligation of each Buyer to purchase the Filing Notes and the Filing
Warrants is subject to the satisfaction, at or before the closing of such
purchase and sale, of the conditions set forth in Section 7.  The Company and
the Buyers further agree that, upon the declaration of effectiveness of the
Registration Statement to be filed pursuant to the Registration Rights
Agreement (the "Effective Date"), the Buyers shall purchase additional notes
(the "Effectiveness Notes" and, collectively with the Filing Notes, the
"Additional Notes") in the aggregate principal amount of Eight Hundred and
Fifty Thousand Dollars ($850,000) and additional warrants (the "Effectiveness
Warrants" and, collectively with the Filing Warrants, the "Additional
Warrants") to purchase an aggregate of 4,250,000 shares of Common Stock, for
an aggregate purchase price of Eight Hundred and Fifty Thousand Dollars
($850,000), with the closing of such purchase to occur within five (5) days of
the Effective Date; provided, however, that the obligation of each Buyer to
purchase the Additional Notes and the Additional Warrants is subject to the
satisfaction, at or before the closing of such purchase and sale, of the
conditions set forth in Section 7; and, provided, further, that there shall
not have been a Material Adverse Effect as of such effective date.  The terms
of the Additional Notes and the Additional Warrants shall be identical to the
terms of the Notes and Warrants, as the case may be, to be issued on the
Closing Date.  The Common Stock underlying the Additional Notes and the
Additional Warrants shall be Registrable Securities (as defined in the
Registration Rights Agreement) and shall be included in the Registration
Statement to be filed pursuant to the Registration Rights Agreement.

            m.   Key Man Insurance.  The Company shall use its best efforts to
obtain, on or before five (5) business days from the date hereof, key man life
insurance on David Walters.

            n.   ]

            o.   Stockholder Approval.  The Company shall file a proxy or
information statement with the SEC no later than December 31, 2005 and use its
best efforts to obtain, on or before February 1, 2005, such approvals of the
Company's stockholders as may be required to issue all of the shares of Common
Stock issuable upon conversion or exercise of, or otherwise with respect to,
the Notes and the Warrants in accordance with Delaware law and any applicable
rules or regulations of the OTCBB and Nasdaq, either through a reverse stock
split of the Common Stock or an increase in authorized capital (the
"Stockholder Approval").  The Company shall furnish to each Buyer and its
legal counsel promptly (but in no event less than two (2) business days)
before the same is filed with the SEC, one copy of the proxy or information
statement and any amendment thereto, and shall deliver to each Buyer promptly
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 proxy or information statement (other than any
portion thereof which contains information for which the Company has sought
confidential treatment).  The Company will promptly (but in no event more than
three (3) business days) respond to any and all comments received from the SEC
(which comments shall promptly be made available to each Buyer).  The Company
shall comply with the filing and disclosure requirements of Section 14 under
the 1934 Act in connection with the Stockholder Approval.  The Company
represents and warrants that its Board of Directors has approved the proposal
contemplated by this Section 4(l) and shall indicate such approval in the
proxy or information statement used in connection with the Stockholder
Approval.

            p.   Breach of Covenants.  If the Company breaches any of the
covenants set forth in this Section 4, and in addition to any other remedies
available to the Buyers pursuant to this Agreement, the Company shall pay to
the Buyers the Standard Liquidated Damages Amount, in cash or in shares of
Common Stock at the option of the Company, until such breach is cured.  If the
Company elects to pay the Standard Liquidated Damages Amount in shares, such
shares shall be issued at the Conversion Price at the time of payment.

      5.   TRANSFER AGENT INSTRUCTIONS.  The Company shall issue irrevocable
instructions to its transfer agent to issue certificates, registered in the
name of each Buyer or its nominee, for the Conversion Shares and Warrant
Shares in such amounts as specified from time to time by each Buyer to the
Company upon conversion of the Notes or exercise of the Warrants in accordance
with the terms thereof (the "Irrevocable Transfer Agent Instructions").  Prior
to registration of the Conversion Shares and Warrant Shares under the 1933 Act
or the date on which the Conversion Shares and Warrant Shares may be sold
pursuant to Rule 144 without any restriction as to the number of Securities as
of a particular date that can then be immediately sold, all such certificates
shall bear the restrictive legend specified in Section 2(g) of this Agreement.
The Company warrants that no instruction other than the Irrevocable Transfer
Agent Instructions referred to in this Section 5, and stop transfer
instructions to give effect to Section 2(f) hereof (in the case of the
Conversion Shares and Warrant Shares, prior to registration of the Conversion
Shares and Warrant Shares under the 1933 Act or the date on which the
Conversion Shares and Warrant Shares may be sold pursuant to Rule 144 without
any restriction as to the number of Securities as of a particular date that
can then be immediately sold), will be given by the Company to its transfer
agent and that the Securities shall otherwise be freely transferable on the
books and records of the Company as and to the extent provided in this
Agreement and the Registration Rights Agreement.  Nothing in this Section
shall affect in any way the Buyer's obligations and agreement set forth in
Section 2(g) hereof to comply with all applicable prospectus delivery
requirements, if any, upon re-sale of the Securities.  If a Buyer provides the
Company with (i) an opinion of counsel in form, substance and scope customary
for opinions in comparable transactions, to the effect that a public sale or
transfer of such Securities may be made without registration under the 1933
Act and such sale or transfer is effected or (ii) the Buyer provides
reasonable assurances that the Securities can be sold pursuant to Rule 144,
the Company shall permit the transfer, and, in the case of the Conversion
Shares and Warrant Shares, promptly instruct its transfer agent to issue one
or more certificates, free from restrictive legend, in such name and in such
denominations as specified by such Buyer.  The Company acknowledges that a
breach by it of its obligations hereunder will cause irreparable harm to the
Buyers, by vitiating the intent and purpose of the transactions contemplated
hereby.  Accordingly, the Company acknowledges that the remedy at law for a
breach of its obligations under this Section 5 may be inadequate and agrees,
in the event of a breach or threatened breach by the Company of the provisions
of this Section, that the Buyers shall be entitled, in addition to all other
available remedies, to an injunction restraining any breach and requiring
immediate transfer, without the necessity of showing economic loss and without
any bond or other security being required.

      6.   CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.  The obligation of
the Company hereunder to issue and sell the Notes and Warrants to a Buyer at
the Closing is subject to the satisfaction, at or before the Closing Date of
each of the following conditions thereto, provided that these conditions are
for the Company's sole benefit and may be waived by the Company at any time in
its sole discretion:

            a.   The applicable Buyer shall have executed this Agreement and
the Registration Rights Agreement, and delivered the same to the Company.

            b.   The applicable Buyer shall have delivered the Purchase Price
in accordance with Section 1(b) above.

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

            d.   No litigation, statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by or in any court or governmental authority of competent
jurisdiction or any self-regulatory organization having authority over the
matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

      7.   CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.  The obligation
of each Buyer hereunder to purchase the Notes and Warrants at the Closing is
subject to the satisfaction, at or before the Closing Date of each of the
following conditions, provided that these conditions are for such Buyer's sole
benefit and may be waived by such Buyer at any time in its sole discretion:

            a.   The Company shall have executed this Agreement and the
Registration Rights Agreement, and delivered the same to the Buyer.

            b.   The Company shall have delivered to such Buyer duly executed
Notes (in such denominations as the Buyer shall request) and Warrants in
accordance with Section 1(b) above.

            c.   The Irrevocable Transfer Agent Instructions, in form and
substance satisfactory to a majority-in-interest of the Buyers, shall have
been delivered to and acknowledged in writing by the Company's Transfer Agent.

            d.   The representations and warranties of the Company shall be
true and correct in all material respects as of the date when made and as of
the Closing Date as though made at such time (except for representations and
warranties that speak as of a specific date) and the Company shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed,
satisfied or complied with by the Company at or prior to the Closing Date.
The Buyer shall have received a certificate or certificates, executed by the
chief executive officer of the Company, dated as of the Closing Date, to the
foregoing effect and as to such other matters as may be reasonably requested
by such Buyer including, but not limited to certificates with respect to the
Company's Certificate of Incorporation, By-laws and Board of Directors'
resolutions relating to the transactions contemplated hereby.

            e.   No litigation, statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by or in any court or governmental authority of competent
jurisdiction or any self-regulatory organization having authority over the
matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

            f.   No event shall have occurred which could reasonably be
expected to have a Material Adverse Effect on the Company.

            g.   The Conversion Shares and Warrant Shares shall have been
authorized for quotation on the OTCBB and trading in the Common Stock on the
OTCBB  shall not have been suspended by the SEC or the OTCBB.

            h.   The Buyer shall have received an opinion of the Company's
counsel, dated as of the Closing Date, in form, scope and substance reasonably
satisfactory to the Buyer and in substantially the same form as Exhibit "D"
attached hereto.

            i.   The Buyer shall have received an officer's certificate
described in Section 3(c) above, dated as of the Closing Date.

      8.   GOVERNING LAW; MISCELLANEOUS.

            a.   Governing Law.  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 IN 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.

            b.   Counterparts; Signatures by Facsimile.  This Agreement may be
executed in one 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.

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

            d.   Severability.  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.

            e.   Entire Agreement; Amendments.  This Agreement and the
instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor the Buyer
makes any representation, warranty, covenant or undertaking with respect to
such matters.  No provision of this Agreement may be waived or amended other
than by an instrument in writing signed by the party to be charged with
enforcement.

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

            MT Ultimate Healthcare Corp.
            45 Main Street, Suite 617
            Brooklyn, NY 11201
            Attention: Chief Executive Officer
            Telephone: (718) 943-3400
            Facsimile: (815) 301-8756

            With a copy to:
            David M. Love, Esq.
            2777 Allen Parkway, Suite 1000
            Houston, TX 77019
            Attention:   David M. Love, Esq.
            Telephone:  (713) 524-4110
            Facsimile:   (713) 524-4122

      If to a Buyer:  To the address set forth immediately below such Buyer's
name on the signature pages hereto.
With copy to:

            Ballard Spahr Andrews & Ingersoll, LLP
            1735 Market Street
            51st Floor
            Philadelphia, Pennsylvania  19103
            Attention:  Gerald J. Guarcini, Esq.
            Telephone:  215-864-8625
            Facsimile:  215-864-8999

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

            g.   Successors and Assigns.  This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor any Buyer shall assign this Agreement or any rights or
obligations hereunder without the prior written consent of the other.
Notwithstanding the foregoing, subject to Section 2(f), any Buyer may assign
its rights hereunder to any person that purchases Securities in a private
transaction from a Buyer or to any of its "affiliates," as that term is
defined under the 1934 Act, without the consent of the Company.

            h.   Third Party Beneficiaries.  This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

            i.   Survival.  The representations and warranties of the Company
and the agreements and covenants set forth in Sections 3, 4, 5 and 8 shall
survive the closing hereunder notwithstanding any due diligence investigation
conducted by or on behalf of the Buyers.  The Company agrees to indemnify and
hold harmless each of the Buyers and all their officers, directors, employees
and agents for loss or damage arising as a result of or related to any breach
or alleged breach by the Company of any of its representations, warranties and
covenants set forth in Sections 3 and 4 hereof or any of its covenants and
obligations under this Agreement or the Registration Rights Agreement,
including advancement of expenses as they are incurred.

            j.   Publicity.  The Company and each of the Buyers shall have the
right to review a reasonable period of time before issuance of any press
releases, SEC, OTCBB or NASD filings, or any other public statements with
respect to the transactions contemplated hereby; provided, however, that the
Company shall be entitled, without the prior approval of each of the Buyers,
to make any press release or SEC, OTCBB (or other applicable trading market)
or NASD filings with respect to such transactions as is required by applicable
law and regulations (although each of the Buyers shall be consulted by the
Company in connection with any such press release prior to its release and
shall be provided with a copy thereof and be given an opportunity to comment
thereon).

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

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

            m.   Remedies.  The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Buyers by
vitiating the intent and purpose of the transaction contemplated hereby.
Accordingly, the Company acknowledges that the remedy at law for a breach of
its obligations under this Agreement will be inadequate and agrees, in the
event of a breach or threatened breach by the Company of the provisions of
this Agreement, that the Buyers shall be entitled, in addition to all other
available remedies at 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.
      IN WITNESS WHEREOF, the undersigned Buyers and the Company have caused
this Agreement to be duly executed as of the date first above written.

MT ULTIMATE HEALTHCARE CORP.

/s/ David Walters
________________________________
David Walters
Executive Vice President

AJW PARTNERS, LLC
By:  SMS Group, LLC

/s/ Corey S. Ribotsky
______________________________________
Corey S. Ribotsky
Manager

RESIDENCE:  Delaware

ADDRESS:    1044 Northern Boulevard
            Suite 302
            Roslyn, New York 11576
Facsimile:  (516) 739-7115
Telephone:  (516) 739-7110

AGGREGATE SUBSCRIPTION AMOUNT:

      Aggregate Principal Amount of Notes:   $________
      Number of Warrants:                     ________
      Aggregate Purchase Price:              $________

AJW OFFSHORE, LTD.
By:  First Street Manager II, LLC

/s/ Corey S. Ribotsky
______________________________________
Corey S. Ribotsky
Manager

RESIDENCE:  Cayman Islands

ADDRESS:    AJW Offshore, Ltd.
            P.O. Box 32021 SMB
            Grand Cayman, Cayman Island, B.W.I.

AGGREGATE SUBSCRIPTION AMOUNT:

      Aggregate Principal Amount of Notes:    $_______
      Number of Warrants:                      _______
      Aggregate Purchase Price:               $_______

AJW QUALIFIED PARTNERS, LLC
By:  AJW Manager, LLC

/s/ Corey S. Ribotsky
____________________________________
Corey S. Ribotsky
Manager

RESIDENCE:  New York

ADDRESS:    1044 Northern Boulevard
            Suite 302
            Roslyn, New York 11576
Facsimile:  (516) 739-7115
Telephone:  (516) 739-7110

AGGREGATE SUBSCRIPTION AMOUNT:

      Aggregate Principal Amount of Notes:         $________
      Number of Warrants:                           ________
      Aggregate Purchase Price:                    $________

NEW MILLENNIUM CAPITAL PARTNERS II, LLC
By:  First Street Manager II, LLP

/s/ Corey S. Ribotsky
____________________________________
Corey S. Ribotsky
Manager

RESIDENCE:  New York

ADDRESS:    1044 Northern Boulevard
            Suite 302
            Roslyn, New York 11576
Facsimile:  (516) 739-7115
Telephone:  (516) 739-7110

AGGREGATE SUBSCRIPTION AMOUNT:

      Aggregate Principal Amount of Notes:         $______
      Number of Warrants:                           ______
      Aggregate Purchase Price:                    $______

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