Document:

DIGICORP
                             SUBSCRIPTION AGREEMENT

      SUBSCRIPTION AGREEMENT ("Subscription Agreement") made as of this 20th day
of April 2006 between Digicorp,  a Utah corporation with offices located at 4143
Glencoe  Avenue,  Marina  Del Rey,  California  90292 (the  "Company"),  and the
undersigned (the "Subscriber").

      WHEREAS,  pursuant  to  Section  4(2) of the  Securities  Act of 1933,  as
amended (the "Securities Act"), and Rule 506 promulgated thereunder, the Company
desires to sell up to 636,364  shares of the Company's  common stock,  $.001 par
value (the "Shares") in a private  placement  (the  "Offering") on the terms and
conditions set forth herein;

      NOW,  THEREFORE,  for and in  consideration of the premises and the mutual
covenants hereinafter set forth, the parties hereto do hereby agree as follows:

      I. SUBSCRIPTION FOR SHARES; REPRESENTATIONS BY AND COVENANTS OF SUBSCRIBER

            1.1  Subscription  for Shares.  Subject to the terms and  conditions
hereinafter  set forth,  the Subscriber  hereby  irrevocably  subscribes for and
agrees to  purchase  from the  Company  such  number of Shares,  and the Company
agrees to sell to the Subscriber  such number of Shares,  as is set forth on the
signature  page  hereof for a purchase  price of $1.10 per share (the  "Purchase
Price"). The closing of the purchase and sale of the Shares under this Agreement
shall take place at the offices of the Company (the  "Closing") at 10:00 a.m. on
January  31,  2006 or at such  time and on such date as the  Subscriber  and the
Company may agree upon. At the Closing, the Company shall deliver or cause to be
delivered to each  Subscriber:  (a) a certificate  registered in the name of the
Subscriber  representing  the number of Shares as is set forth opposite the name
of  such  Subscriber  on the  signature  page  hereof;  and  (b) a copy  of this
Agreement countersigned by the Company.

            1.2 Reliance on  Exemptions.  The Subscriber  acknowledges  that the
Offering  has not been  reviewed by the United  States  Securities  and Exchange
Commission or any state agency because it is intended to be a nonpublic offering
exempt  from the  registration  requirements  of the  Securities  Act and  state
securities laws. The Subscriber  understands that the Company is relying in part
upon the  truth  and  accuracy  of,  and the  Subscriber's  compliance  with the
representations,  warranties, agreements,  acknowledgments and understandings of
the Subscriber set forth herein in order to determine the  availability  of such
exemption and the eligibility of the Subscriber to acquire the Shares.

            1.3 Investment  Purpose.  The Subscriber  represents that the Shares
are being  purchased for its own account,  for investment  purposes only and not
for  distribution  or  resale to others  in  contravention  of the  registration
requirements of the Securities Act. The Subscriber  agrees that it will not sell
or otherwise transfer the Shares unless they are registered under the Securities
Act or unless an exemption from such registration is available.

            1.4 Accredited Investor. The Subscriber represents and warrants that
it is an "accredited investor" as such term is defined in Rule 501 of Regulation
D promulgated under the Securities Act, and that it is able to bear the economic
risk of any  investment in the Shares.  The  Subscriber  further  represents and
warrants that the  information  furnished by it in the  accompanying  accredited
investor  questionnaire,  which is attached hereto as Exhibit A, is accurate and
complete in all material respects.

<PAGE>

            1.5 Risk of Investment.  The Subscriber recognizes that the purchase
of the Shares  involves a high degree of risk in that:  (a) an investment in the
Company  is highly  speculative  and only  investors  who can afford the loss of
their entire investment should consider investing in the Company and the Shares;
(b)  transferability  of the Shares is limited;  and (c) the Company may require
substantial  additional  funds to operate its  business  and  subsequent  equity
financings will dilute the ownership and voting interests of Subscriber.

            1.6 Prior Investment Experience. The Subscriber acknowledges that it
has prior  investment  experience and that it recognizes the highly  speculative
nature of this investment.

            1.7 Information.  The Subscriber acknowledges careful review of this
Subscription  Agreement as well as the Company's filings with the Securities and
Exchange  Commission,  as required  pursuant to the  Securities  Exchange Act of
1934,  as  amended,   which  are  available  on  the  Internet  at   www.sec.gov
(collectively,   the  "Offering   Documents"),   all  of  which  the  Subscriber
acknowledges  have been  provided  to him.  The  Subscriber  has been  given the
opportunity  to  ask  questions  of,  and  receive  answers  from,  the  Company
concerning the terms and conditions of this Offering and the Offering  Documents
and to obtain such additional  information,  to the extent the Company possesses
such  information  or can  acquire it without  unreasonable  effort or  expense,
necessary to verify the accuracy of same as the Subscriber reasonably desires in
order to evaluate  the  investment.  The  Subscriber  understands  the  Offering
Documents,  and the Subscriber has had the  opportunity to discuss any questions
regarding  any of the  Offering  Documents  with its counsel or other  advisors.
Notwithstanding  the foregoing,  the only  information upon which the Subscriber
has  relied is that set forth in the  Offering  Documents.  The  Subscriber  has
received no  representations  or  warranties  from the Company,  its  employees,
agents or attorneys in making this  investment  decision other than as set forth
in the Offering Documents. The Subscriber does not desire to receive any further
information.

            1.8 No  Representations.  The  Subscriber  hereby  represents  that,
except as expressly set forth in the Offering  Documents,  no representations or
warranties  have  been  made to the  Subscriber  by the  Company  or any  agent,
employee or affiliate of the Company,  and in entering into this transaction the
Subscriber is not relying on any  information  other than that  contained in the
Offering  Documents  and  the  results  of  independent   investigation  by  the
Subscriber.

            1.9 Tax Consequences.  The Subscriber acknowledges that the Offering
may involve tax consequences and that the contents of the Offering  Documents do
not contain tax advice or information.  The Subscriber acknowledges that it must
retain its own professional  advisors to evaluate the tax and other consequences
of an investment in the Shares.

            1.10  Transfer  or Resale.  The  Subscriber  understands  and hereby
acknowledges  that the Company is under no  obligation  to  register  the Shares
under the Securities  Act except as contained  herein.  The Subscriber  consents
that the Company  may, if it desires,  permit the  transfer of the Shares out of
the  Subscriber's  name only  when the  Subscriber's  request  for  transfer  is
accompanied by an opinion of counsel reasonably satisfactory to the Company that
neither  the  sale nor the  proposed  transfer  results  in a  violation  of the
Securities Act or any applicable state "blue sky" laws.

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<PAGE>

            1.11  Legends.  The  Subscriber  understands  that the  certificates
representing the Shares,  until such time as they have been registered under the
Securities Act, shall bear a restrictive  legend in substantially  the following
form  (and a  stop-transfer  order  may  be  placed  against  transfer  of  such
certificates or other instruments):

            THE SHARES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
            UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE
            SECURITIES  LAWS.  THE  SHARES MAY NOT BE  OFFERED  FOR SALE,  SOLD,
            TRANSFERRED  OR  ASSIGNED  (I) IN THE  ABSENCE  OF (A) AN  EFFECTIVE
            REGISTRATION  STATEMENT FOR THE SHARES UNDER THE  SECURITIES  ACT OF
            1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS, OR (B) AN
            OPINION  OF  COUNSEL,   IN  A  REASONABLY   ACCEPTABLE   FORM,  THAT
            REGISTRATION  IS NOT  REQUIRED  UNDER SAID ACT OR  APPLICABLE  STATE
            SECURITIES LAWS, OR (II) UNLESS SOLD PURSUANT TO RULE 144 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 the Shares upon which
it is  stamped,  if (a) such Shares are being sold  pursuant  to a  registration
statement  under the Securities  Act, (b) such holder delivers to the Company an
opinion of counsel,  in a  reasonably  acceptable  form,  to the Company  that a
disposition  of the  Shares is being made  pursuant  to an  exemption  from such
registration,  or (c) such holder provides the Company with reasonable assurance
that a  disposition  of the Shares may be made pursuant to the Rule 144(k) under
the Securities Act without any  restriction as to the number of Shares  acquired
as of a particular date that can then be immediately sold.

            1.12 No General Solicitation.  The Subscriber represents that it was
not induced to invest by any form of general solicitation or general advertising
including,  but not limited to, the following:  (a) any advertisement,  article,
notice or other  communication  published in any newspaper,  magazine or similar
media or broadcast over the news or radio;  and (b) any seminar or meeting whose
attendees were invited by any general solicitation or advertising.

            1.13  Validity;  Enforcement.  If the  Subscriber is a  corporation,
partnership, trust or other entity, the Subscriber represents and warrants that:
(a) it is  authorized  and  otherwise  duly  qualified  to purchase and hold the
Shares;  and (b) that this  Subscription  Agreement  has been  duly and  validly
authorized,  executed  and  delivered  and  constitutes  the legal,  binding and
enforceable  obligation of the  Subscriber.  If the Subscriber is an individual,
the Subscriber represents and warrants that this Subscription Agreement has been
duly and validly  executed and delivered and constitutes the legal,  binding and
enforceable obligation of the Subscriber.

                                       3
<PAGE>

            1.14 Address.  The Subscriber  hereby represents that the address of
the  Subscriber  furnished  by the  Subscriber  at the end of this  Subscription
Agreement  is the  Subscriber's  principal  residence  if the  Subscriber  is an
individual or its  principal  business  address if it is a corporation  or other
entity.

            1.15 Foreign  Subscriber.  If the  Subscriber is not a United States
person, such Subscriber hereby represents that it has satisfied itself as to the
full  observance  of the  laws  of  its  jurisdiction  in  connection  with  any
invitation  to  subscribe  for  the  Shares  or  any  use of  this  Subscription
Agreement, including: (a) the legal requirements within its jurisdiction for the
purchase of the Shares; (b) any foreign exchange restrictions applicable to such
purchase;  (c) any  governmental or other consents that may need to be obtained;
and (d) the income tax and other tax consequences,  if any, that may be relevant
to the  purchase,  holding,  redemption,  sale or transfer  of the Shares.  Such
Subscriber's   subscription  and  payment  for,  and  its  continued  beneficial
ownership of the Shares,  will not violate any  applicable  securities  or other
laws of the Subscriber's jurisdiction.

      II. REPRESENTATIONS BY THE COMPANY

            The Company represents and warrants to the Subscriber:

            2.1 Organization. The Company is duly organized and validly existing
in good standing under the laws of the  jurisdiction  of its  organization.  The
Company has full power and authority to own,  operate and occupy its  properties
and to conduct  its  business  as  presently  conducted,  and is  registered  or
qualified to do business and in good standing in each  jurisdiction in which the
nature of the business  conducted by it or the location of the properties  owned
or leased by it  requires  such  qualification  and where the  failure  to be so
qualified  would have a material  adverse  effect upon the  Company's  financial
condition (a "Material Adverse  Effect"),  and no proceeding has been instituted
in any such jurisdiction revoking, limiting or curtailing, or seeking to revoke,
limit or curtail, such power and authority or qualification.

            2.2 Due  Authorization  and  Valid  Issuance.  The  Company  has all
requisite  power and authority to execute,  deliver and perform its  obligations
under the Offering  Documents,  and when  executed and  delivered by the Company
will constitute legal, valid and binding  agreements of the Company  enforceable
against  the  Company  in  accordance  with  their  terms,  except  as rights to
indemnity and contribution may be limited by state or federal securities laws or
the public policy  underlying  such laws,  and except as  enforceability  may be
limited by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium or
similar laws affecting creditors' and contracting parties' rights generally, and
except  as  enforceability  may be  subject  to  general  principles  of  equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or at law).

                                       4
<PAGE>

            2.3  Noncontravention.  The  execution  and delivery of the Offering
Documents, the issuance and sale of the Shares under the Offering Documents, the
fulfillment of the terms of the Offering Documents,  and the consummation of the
transactions  contemplated  thereby  will  not  conflict  with or  constitute  a
violation of, or default  (with the passage of time or otherwise)  under (a) any
material  bond,  debenture,  note or  other  evidence  of  indebtedness,  lease,
contract,  indenture,  mortgage, deed of trust, loan agreement, joint venture or
other  agreement or instrument to which the Company is a party or by which it or
any of its properties are bound, (b) the charter, bylaws or other organizational
documents  of the  Company  or  any  subsidiary,  (c)  any  law,  administrative
regulation,  ordinance or order of any court or governmental agency, arbitration
panel or authority  applicable to the Company or its properties,  except for any
such conflicts,  violations or defaults that are not reasonably likely to have a
Material  Adverse  Effect,  or (d) result in the creation or  imposition  of any
lien,  encumbrance,  claim, security interest or restriction whatsoever upon any
of the  material  properties  or assets of the  Company  or an  acceleration  of
indebtedness pursuant to any obligation, agreement or condition contained in any
material bond, debenture, note or any other evidence of indebtedness, indenture,
mortgage,  deed of trust or any  other  agreement  or  instrument  to which  the
Company  is a party or by which  it is  bound  or to which  any of the  material
property  or  assets  of  the  Company  is   subject.   No  consent,   approval,
authorization or other order of, or registration,  qualification or filing with,
any regulatory body,  administrative  agency, or other  governmental body in the
United  States or any other person is required for the execution and delivery of
the Offering  Documents and the valid issuance and sale of the Shares to be sold
pursuant  to the  Offering  Documents,  other  than  such as have  been  made or
obtained,  and except for any post-closing  securities  filings or notifications
required to be made under federal or state securities laws.

            2.4 No  Violation.  The  Company  is not  (a)  in  violation  of its
charter,  bylaws or other organizational  document; (b) in violation of any law,
administrative  regulation,  ordinance  or  order of any  court or  governmental
agency,  arbitration  panel  or  authority  applicable  to  the  Company,  which
violation,  individually or in the aggregate, would be reasonably likely to have
a Material  Adverse  Effect;  or (c) in default  (and there  exists no condition
that, with the passage of time or otherwise,  would constitute a default) in any
material  respect in the  performance  of a material  agreement or instrument to
which the  Company  is a party or by which the  Company is bound or by which the
properties of the Company are bound,  that would be reasonably  likely to have a
Material Adverse Effect. The business of the Company is not being conducted, and
shall  not be  conducted  so long as the  investors  own any of the  Shares,  in
violation of any law, ordinance, rule, regulation,  order, judgment or decree of
any  governmental  entity,  court or arbitration  tribunal,  except for possible
violations  the sanctions for which either singly or in the aggregate  would not
have a Material Adverse Effect.

            2.5  Capitalization.  The  authorized  capital  stock of the Company
consists of 50,000,000  shares of common stock,  $.001 par value.  Before giving
effect  to  the  transactions   contemplated  by  this  Subscription  Agreement,
36,721,113  shares of the  Company's  common  stock are issued and  outstanding,
15,000,000  shares are  reserved for issuance  pursuant to the  Company's  stock
option and  purchase  plans and  1,050,000  shares  are  reserved  for  issuance
pursuant to securities  exercisable or  exchangeable  for, or convertible  into,
shares of the  Company's  common  stock.  The Shares to be sold  pursuant to the
Offering  Documents have been duly  authorized,  and when issued and paid for in
accordance  with  the  terms  of this  Subscription  Agreement  will be duly and
validly issued, fully paid and nonassessable.  The outstanding shares of capital
stock of the Company  have been duly and  validly  issued and are fully paid and
nonassessable,  have  been  issued  in  compliance  with all  federal  and state
securities  laws, and were not issued in violation of any  preemptive  rights or
similar  rights to subscribe  for or purchase  securities.  The Company does not
have any  so-called  stockholder  rights plan or "poison  pill" and there are no
"shark-repellant"  charter or bylaw provisions or so-called "state antitakeover"
statutes  applicable,  in any case,  to all or any  portion of the  transactions
contemplated by the Offering Documents,  including, without limitation, issuance
of the Shares.

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<PAGE>

            2.6  Legal  Proceedings.   Except  as  otherwise  disclosed  in  the
Company's  filings  with the  Securities  and Exchange  Commission,  there is no
action,  suit,  proceeding,  or to the  knowledge  of the  Company,  inquiry  or
investigation  before or by any  court,  public  board,  governmental  agency or
authority, or self-regulatory  organization or body pending or, to the knowledge
of the  Company,  threatened  against  or  affecting  the  Company or any of its
directors  or  officers  in their  capacities  as such,  wherein an  unfavorable
decision,  ruling or  finding  would  have a  Material  Adverse  Effect or would
adversely  affect the  Offering or that would  adversely  affect the validity or
enforceability  of, or the authority or ability of the Company to consummate the
Offering.

            2.7  Internal  Accounting  Controls.  The  Company  and  each of its
subsidiaries  maintains a system of internal  accounting  controls sufficient to
provide  reasonable  assurance that (i)  transactions are executed in accordance
with  management's  general or specific  authorizations,  (ii)  transactions are
recorded  as  necessary  to  permit  preparation  of  financial   statements  in
conformity with generally accepted  accounting  principles and to maintain asset
accountability,  (iii) access to assets is  permitted  only in  accordance  with
management's   general  or  specific   authorization,   and  (iv)  the  recorded
accountability  for assets is compared  with the existing  assets at  reasonable
intervals and appropriate  action is taken with respect to any differences.  The
Company has established  disclosure  controls and procedures for the Company and
designed  such  disclosure  controls  and  procedures  to ensure  that  material
information relating to the Company,  including its subsidiaries,  is made known
to the  certifying  officers by others  within  those  entities.  The  Company's
certifying  officers  evaluated the effectiveness of the Company's  controls and
procedures as required by the rules of the Securities and Exchange Commission.

            2.8  Governmental  Permits,  etc.  The  Company  has  all  necessary
franchises,  licenses,  certificates and other  authorizations from any foreign,
federal, state or local government or governmental agency,  department,  or body
that are currently necessary for the operation of the business of the Company as
currently  conducted,  except where the failure to currently  possess  could not
reasonably be expected to have a Material Adverse Effect.

            2.9  Intellectual  Property.  (a)  The  Company  owns  or  possesses
sufficient  rights  to use all  material  patents,  patent  rights,  trademarks,
copyrights,  licenses,  inventions,  trade  secrets,  trade  names and  know-how
(collectively, "Intellectual Property") as owned or possessed by it, or that are
necessary  for the conduct of its business as now conducted or as proposed to be
conducted, except where the failure to currently own or possess would not have a
Material Adverse Effect,  (b) the Company has not received any notice of, or has
any knowledge of, any asserted  infringement  by the Company of, any rights of a
third party with respect to any Intellectual  Property that,  individually or in
the aggregate, would have a Material Adverse Effect, and (c) the Company has not
received any notice of, or has no knowledge  of,  infringement  by a third party
with  respect  to  any  Intellectual   Property  rights  of  the  Company  that,
individually or in the aggregate, would have a Material Adverse Effect.

                                       6
<PAGE>

            2.10 Financial  Statements.  The financial statements of the Company
included in the Company's  filings with the Securities  and Exchange  Commission
have been  prepared  in  accordance  with  U.S.  generally  accepted  accounting
principles,  consistently applied, during the periods involved (except as may be
otherwise indicated in such financial statements or the notes thereto, or in the
case  of  unaudited  interim  statements,  to the  extent  they  do not  include
footnotes or are  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, immaterial year-end audit adjustments).
Except as set forth in the financial  statements of the Company  included in the
Company's filings with the Securities and Exchange  Commission,  the Company has
no liabilities,  contingent or otherwise,  other than (i)  liabilities  incurred
subsequent to the date of such  financial  statements in the ordinary  course of
business  consistent with past practice and (ii) obligations under contracts and
commitments  incurred in the ordinary  course of business and not required under
U.S. generally accepted accounting  principles to be reflected in such financial
statements,  in  each  case  that,  individually  or in the  aggregate,  are not
material to the financial condition, business, operations, properties, operating
results or prospects of the Company and its subsidiaries taken on a whole.

            2.11 Disclosure.  None of the  representations and warranties of the
Company  appearing  in the Offering  Documents,  when  considered  together as a
whole,  contains, or on any closing date will contain, any untrue statement of a
material  fact or omits,  or on any closing date will omit to state any material
fact required to be stated herein or therein in order for the statements  herein
or therein,  in light of the circumstances under which they were made, not to be
misleading.

      III. REGISTRATION RIGHTS

            The  Company  agrees  that if, at any  time,  and from time to time,
after the date hereof the Board of Directors of the Company (the "Board")  shall
authorize the filing of a registration statement under the Securities Act (other
than a registration  statement on Form S-8, Form S-4 or any other form that does
not include  substantially  the same  information as would be required in a form
for the general  registration  of  securities)  in connection  with the proposed
offer of any of its  securities  by it or any of its  stockholders,  the Company
shall: (A) promptly notify the Subscriber that such registration  statement will
be filed and that the Shares  then held by the  Subscriber  will be  included in
such registration statement;  (B) cause such registration statement to cover all
of such  Shares  issued to the  Subscriber;  (C) use best  efforts to cause such
registration statement to become effective as soon as practicable;  and (D) take
all  other  reasonable  action  necessary  under  any  federal  or state  law or
regulation  of any  governmental  authority  to permit all such Shares that have
been  issued  to such  holder  to be sold or  otherwise  disposed  of,  and will
maintain such  compliance with each such federal and state law and regulation of
any governmental  authority for the period necessary for such holder to promptly
effect  the  proposed  sale or  other  disposition.  Notwithstanding  any  other
provision of this Article III, the Company may at any time, abandon or delay any
registration  commenced by the Company.  In the event of such an  abandonment by
the Company,  the Company shall not be required to continue  registration of the
Shares and the Holder shall  retain the right to request  inclusion of shares as
set forth above.

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<PAGE>

      IV. MISCELLANEOUS

            4.1 Notice. Any notices,  consents,  waivers or other communications
required or permitted to be given under the terms of this Subscription Agreement
must be in writing and will be deemed to have been delivered:  (a) upon receipt,
when delivered  personally,  (b) upon receipt,  when sent by facsimile (provided
confirmation of transmission  is  mechanically or  electronically  generated and
kept on file by the sending  party),  or (c) one (1) business day after  deposit
with an overnight courier service,  in each case properly addressed to the party
to receive the same. The addresses and facsimile numbers for such communications
shall be:

            If to the Company:

            Digicorp
            4143 Glencoe Avenue
            Marina Del Rey, California 90292
            Attn: Chief Executive Officer
            Facsimile: (310) 499-4334

            With a copy to (which shall not constitute notice):

            Sichenzia Ross Friedman Ference LLP
            1065 Avenue of the Americas
            New York, New York 10018
            Attn:  Marc J. Ross, Esq.
            Facsimile: (212) 930-9725

            If to the Subscriber,  to its address and facsimile number set forth
at the end of this  Subscription  Agreement,  or to such  other  address  and/or
facsimile  number  and/or to the  attention of such other person as specified by
written notice given to the Company five (5) days prior to the  effectiveness of
such change.  Written confirmation of receipt (a) given by the recipient of such
notice,   consent,   waiver  or  other   communication,   (b)   mechanically  or
electronically  generated by the sender's facsimile machine containing the time,
date,  recipient  facsimile  number  and an  image  of the  first  page  of such
transmission,  or  (c)  provided  by  an  overnight  courier  service  shall  be
rebuttable evidence of personal service, receipt by facsimile or receipt from an
overnight  courier  service in  accordance  with clause  (a),  (b) or (c) above,
respectively.

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            4.2  Entire  Agreement;   Amendment.   This  Subscription  Agreement
supersedes all other prior oral or written  agreements  between the  Subscriber,
the Company, their affiliates and persons acting on their behalf with respect to
the  matters  discussed  herein,   and  this  Subscription   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 Subscriber
makes any representation, warranty, covenant or undertaking with respect to such
matters.  No provision of this  Subscription  Agreement may be amended or waived
other than by an instrument in writing signed by the Company and the Subscriber.

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

            4.4 Governing Law; Jurisdiction; Waiver of Jury Trial. All questions
concerning the construction,  validity,  enforcement and  interpretation of this
Subscription  Agreement  shall be governed by the internal  laws of the State of
California,  without  giving  effect  to any  choice of law or  conflict  of law
provision  or  rule   (whether  of  the  State  of   California   or  any  other
jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of California. Each party hereby irrevocably submits to the
non-exclusive  jurisdiction  of the  state and  federal  courts  sitting  in Los
Angeles County,  California for the adjudication of any dispute  hereunder or in
connection  herewith or with any  transaction  contemplated  hereby or discussed
herein,  and hereby  irrevocably  waives,  and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that it is not  personally  subject  to the
jurisdiction of any such court,  that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each party hereby  irrevocably waives personal service of process and
consents  to process  being  served in any such suit,  action or  proceeding  by
mailing a copy thereof to such party at the address for such notices to it under
this  Subscription  Agreement and agrees that such service shall constitute good
and sufficient  service of process and notice thereof.  Nothing contained herein
shall be  deemed to limit in any way any right to serve  process  in any  manner
permitted by law.  Each party hereby  irrevocably  waives any right it may have,
and agrees not to  request,  a jury trial for the  adjudication  of any  dispute
hereunder or in connection with or arising out of this Subscription Agreement or
any transaction contemplated hereby.

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

            4.6 Successors And Assigns.  This  Subscription  Agreement  shall be
binding  upon and inure to the  benefit  of the  parties  and  their  respective
successors and assigns. The Company shall not assign this Subscription Agreement
or any rights or obligations  hereunder without the prior written consent of the
Subscriber,  except by merger or consolidation.  The Subscriber shall not assign
its rights hereunder without the consent of the Company, which consent shall not
be unreasonably withheld.

                                       9
<PAGE>

            4.7 No Third Party  Beneficiaries.  This  Subscription  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.

            4.8 Survival.  The representations and warranties of the Company and
the Subscriber  contained in Articles I and II and the agreements set forth this
Article IV shall survive closing for a period of two years.

            4.9 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  Subscription  Agreement and the consummation of
the transactions contemplated hereby.

            4.10 No Strict Construction.  The language used in this Subscription
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.

            4.11 Legal Representation.  The Subscriber acknowledges that: (a) it
has read this Subscription Agreement and the exhibits hereto; (b) it understands
that the Company  has been  represented  in the  preparation,  negotiation,  and
execution of this Subscription Agreement by Sichenzia Ross Friedman Ference LLP,
counsel to the Company;  and (c) it understands  the terms and  consequences  of
this Subscription Agreement and is fully aware of its legal and binding effect.

            4.12  Counterparts.  This Subscription  Agreement may be executed in
two or more identical counterparts, all of which shall be considered one and the
same agreement and shall become effective when  counterparts have been signed by
each party and delivered to the other party; provided that a facsimile signature
shall be  considered  due  execution  and shall be  binding  upon the  signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

                            [Signature page follows.]

                                       10
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Subscription  Agreement
as of the day and year first written above.

                                                  No. of Shares:  50,000 Shares
MLPF&S Custodian, FBO William B. Horne, IRA       Purchase Price: $55,000
-------------------------------------------                       -------------
Name of Subscriber

--------------------------------------
Signature

--------------------------------------
Name (If Subscriber is an entity, trust or other
organization) (Please Print)

--------------------------------------
Title (If Subscriber is an entity, trust or other
organization) (Please Print)

      1215 4th Avenue
      Seattle ,WA 98161
Attn: John Chavez
Address of Subscriber

13-3180817
Taxpayer Identification Number of Subscriber

                                                  Subscription Accepted:

                                                  DIGICORP

                                                  By:
                                                     ---------------------------
                                                  Name:  Jay Rifkin
                                                  Title: Chief Executive Officer

                                       11Exhibit 10.1

                      CONVERTIBLE VARIABLE PROMISSORY NOTE
                 UNDER A LINE OF CREDIT NOT TO EXCEED $1,000,000

Line of credit maximum amount: $1,000,000

Advances through March 31, 2006: $565,187.67

Amount of Note: $565,187.67

1. Names

Borrower:

      Cyber Defense Systems, Inc. ("CYDF")
      10901 Roosevelt Boulevard
      Suite 100D
      St. Petersburg, Florida 33716

Lender: William C. Robinson

2. Promise to Pay

For value received, by way of working capital advances through March 31, 2006,
Borrower promises to pay Lender $565,187.67 which includes a 10% lending
facility fee of $20,465.00; plus interest at the rate of 12% per annum.

3. Method of Payments

Borrower will make total payment(s) consisting of principle of $565,187.67 plus
interest at the rate of 12% per annum. An option to convert some or all amounts
due into CYDF Class A common stock at $0.30 per share is available to the lender
at all times that there are amounts outstanding. Such shares will be restricted
shares and the respective certificate(s) will bear the required legend(s)
pursuant to Federal Securities laws. A form for such conversion(s) is attached
hereto.
<PAGE>

4. Date of Payments / Maturity Date

Borrower will make payment of the outstanding amounts on or before December 31,
2007 net of any amounts earlier converted and / or prepaid.

5. Application of Payments

Payments will be applied first to principle owed, at the time of payment and
then to interest.

6. Prepayment

Borrower may pre-pay all or any part of the principal without penalty. Should
Borrower close on any funding of at least $7,000,000.00 gross, then the proceeds
in excess of $7,000,000.00 will be used to make prepayments on this Note as well
as to all Deferred Salary Noteholders and on the two Frank Lively Working
Capital Advances Notes on a pro-rata basis.

7. Security

This is an unsecured note. However, there is a Right of Conversion as described
in paragraph. 3.

8. Collection Costs

If Lender prevails in a lawsuit to collect on this note, Borrower will pay
Lender's costs and lawyer's fees in an amount the court finds to be reasonable.
<PAGE>

9. Entire Agreement

This Variable Convertible Promissory Note is the entire agreement between the
parties. It replaces and supercedes any and all oral agreements between the
parties, as well as any prior writings as they may apply to these specific
accrued / deferred salary notes.

10. Successors and Assigns

This agreement binds and benefits the heirs, successors and assigns of the
parties.

11. Notices

All notices must be in writing. A notice may be delivered to a party at the
address that follows a party's signature or to a new address that a party
designates in writing. A notice may be delivered:

      o     in person
      o     by certified mail, or
      o     by overnight courier.

12. Governing Law

This agreement will be governed by and construed in accordance with the laws of
the state of Florida.

13. Waiver

If one party waives any term or provision of this agreement at any time, that
waiver will be effective only for the specific instance and specific purpose for
which the waiver was given. If either party fails to exercise or delays
exercising any of its rights or remedies under this agreement, that party
retains the right to enforce that term or provision at a later time.
<PAGE>

14. Severability

If any court determines that any provision of this agreement is invalid or
unenforceable, any invalidity or unenforceability will affect only that
provision and will not make any other provision of this agreement invalid or
unenforceable and such provision shall be modified, amended or limited only to
the extent necessary to render it valid and enforceable.

15. Disputes

If a dispute arises, the parties will try in good faith to settle it through
mediation conducted by a mediator to be mutually selected. The parties will
share the costs of the mediator equally. Each party will cooperate fully and
fairly with the mediator and will attempt to reach a mutually satisfactory
compromise to the dispute. If the dispute is not resolved within 30 days after
it is referred to the mediator, it will be arbitrated by an arbitrator to be
mutually selected. Judgment on the arbitration award may be entered in any court
that has jurisdiction over the matter. Costs of arbitration, including lawyers'
fees, will be allocated by the arbitrator.

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

BORROWER:

Cyber Defense Systems, Inc.
10901 Roosevelt Boulevard - Suite 100D
St. Petersburg, Florida 33716

Dated: 04/24/2006
       -------------------------------------------------------------------------

By:    /s/ David M. Barnes
       -------------------------------------------------------------------------
       David M. Barnes
       Chief Financial Officer
       Cyber Defense Systems, Inc.

LENDER:

Dated: 04/24/2006
       -------------------------------------------------------------------------

By:    /s/ William C. Robinson
       -------------------------------------------------------------------------
       William C. Robinson

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