Document:

oxford8k071607ex10-2.htm

    
      

      

    

    
      EXHIBIT
        10.2

    

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”) is made and entered into
      as of July __, 2007, between Oxford Media, Inc, a Nevada corporation (the
“Company”) and each of the several holders of the Company’s securities
      signatory hereto (each holder, a “Holder” and, collectively, the
“Holders”).

    

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof, between the Company and each Purchaser (the “Purchase
      Agreement”) and Pursuant to the Securities Exchange Agreement.

    

    The
      Company and each Holder hereby agrees as follows:

    

    
      	
               

            	
              1.

            	
              Definitions

            

    

    

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

    

    “Advice”
      shall have the meaning set forth in Section 6(d).

    

    “Effectiveness
      Date” means, with respect to the Initial Registration Statement required to
      be filed hereunder, the 120th calendar
      day
      following the date hereof (or, in the event of a “full review” by the
      Commission, the 175th calendar
      day
      following the date hereof) and with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the 90th calendar
      day
      following the date on which an additional Registration Statement is required
      to
      be filed hereunder; provided, however, that in the event the
      Company is notified by the Commission that one or more of the above Registration
      Statements will not be reviewed or is no longer subject to further review and
      comments, the Effectiveness Date as to such Registration Statement shall be
      the
      fifth Trading Day following the date on which the Company is so notified if
      such
      date precedes the dates otherwise required above.

    

    “Effectiveness
      Period” shall have the meaning set forth in Section 2(a).

    

    “Event”
      shall have the meaning set forth in Section 2(b).

    

    “Event
      Date” shall have the meaning set forth in Section 2(b).

    

    “Filing
      Date” means, with respect to the Initial Registration Statement required
      hereunder, the 60th calendar
      day
      following the date hereof and, with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the earliest
      practical date on which the Company is permitted by SEC Guidance to file such
      additional Registration Statement related to the Registrable
      Securities.

    

    

    
      
        
          
          

        

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

    

    “Indemnified
      Party” shall have the meaning set forth in Section 5(c).

    

    “Indemnifying
      Party” shall have the meaning set forth in Section 5(c).

    

    “Initial
      Registration Statement” means the initial Registration Statement filed
      pursuant to this Agreement.

    

    “Initial
      Shares” means a number of Registrable Securities equal to the lesser of (i)
      the total number of Registrable Securities and (ii) one-third of the number
      of
      issued and outstanding shares of Common Stock that are held by non-affiliates
      of
      the Company on the day immediately prior to the filing date of the Initial
      Registration Statement.

    

    “Losses”
      shall have the meaning set forth in Section 5(a).

    

    “Plan
      of Distribution” shall have the meaning set forth in Section
      2(a).

    

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

    

    “Registrable
      Securities” means (i) all shares of Common Stock beneficially held by the
      Holders, not currently registered pursuant to an effective registration
      statement or eligible for resale pursuant to Rule 144(k), (ii) all the shares
      of
      Common Stock issuable upon conversion in full of the Preferred Stock (assuming
      on the date of determination the shares of Preferred Stock are converted in
      full
      without regard to any conversion limitations therein), (iii) any additional
      shares of Common Stock issuable in connection with any anti-dilution provisions
      in the Preferred Stock, without giving effect to any limitations on conversion
      set forth in the Certificate of Designation) and (iv) any securities issued
      or
      issuable upon any stock split, dividend or other
      distribution,  recapitalization or similar event with respect to the
      foregoing.

    

    “Registration
      Statement” means the registration statement required to be filed hereunder
      and any additional registration statements contemplated by Section 3(c),
      including (in each case) the Prospectus, amendments and supplements to such
      registration statement or Prospectus, including pre- and post-effective
      amendments, all exhibits thereto, and all material incorporated by reference
      or
      deemed to be incorporated by reference in such registration
      statement.

    

    

    
      
        
          
          

        

        
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    “Rule
      415” means Rule 415 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended or interpreted from time to time, or any
      similar rule or regulation hereafter adopted by the Commission having
      substantially the same purpose and effect as such Rule.

    

    “Rule
      424” means Rule 424 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended or interpreted from time to time, or any
      similar rule or regulation hereafter adopted by the Commission having
      substantially the same purpose and effect as such Rule.

    

    “Selling
      Shareholder Questionnaire” shall have the meaning set forth in Section
      3(a).

    

    “SEC
      Guidance” means (i) any publicly-available written or oral guidance,
      comments, requirements or requests of the Commission staff and (ii) the
      Securities Act.

    

    
      	
               

            	
              2.

            	
              Shelf
                Registration.

            

    

    

    (a)           On
      or prior to each Filing Date, the Company shall prepare and file with the
      Commission a Registration Statement covering the resale of all or such maximum
      portion of the Registrable Securities as permitted by SEC Guidance (provided
      that the Company shall use diligent efforts to advocate with the Commission
      for
      the registration of all of the Registrable Securities in accordance with the
      SEC
      Guidance, including without limitation, the Manual of Publicly Available
      Telephone Interpretations D.29) that are not then registered on an effective
      Registration Statement for an offering to be made on a continuous basis pursuant
      to Rule 415.  The Registration Statement shall be on Form S-3 (except
      if the Company is not then eligible to register for resale the Registrable
      Securities on Form S-3, in which case such registration shall be on another
      appropriate form in accordance herewith) and shall contain (unless otherwise
      directed by at least an 85% majority in interest of the Holders) substantially
      the “Plan of Distribution” attached hereto as Annex
      A.  Subject to the terms of this Agreement, the Company shall use
      its best efforts to cause a Registration Statement to be declared effective
      under the Securities Act as promptly as possible after the filing thereof,
      but
      in any event prior to the applicable Effectiveness Date, and shall use its
      best
      efforts to keep such Registration Statement continuously effective under the
      Securities Act until all Registrable Securities covered by such Registration
      Statement have been sold, or may be sold without volume restrictions pursuant
      to
      Rule 144(k), as determined by the counsel to the Company pursuant to a written
      opinion letter to such effect, addressed and acceptable to the Transfer Agent
      and the affected Holders (the “Effectiveness Period”).  The
      Company shall telephonically request effectiveness of a Registration Statement
      as of 5:00 p.m. New York City time on a Trading Day.   The
      Company shall immediately notify the Holders via facsimile or by e-mail of
      the
      effectiveness of a Registration Statement on the same Trading Day that the
      Company telephonically confirms effectiveness with the Commission, which shall
      be the date requested for effectiveness of such Registration
      Statement.  The Company shall, by 9:30 a.m. New York City time on the
      Trading Day after the effective date of such Registration Statement, file a
      final Prospectus with the Commission as required by Rule 424.  Failure
      to so notify the Holder within 1 Trading Day of such notification of
      effectiveness or failure to file a final Prospectus as foresaid shall be deemed
      an Event under Section 2(b).  Notwithstanding any other provision of
      this Agreement and subject to the payment of liquidated damages pursuant to
      Section 2(b), if any SEC Guidance sets forth a limitation on the number of
      Registrable Securities permitted to be registered on a particular Registration
      Statement (and notwithstanding that the Company used diligent efforts to
      advocate with the Commission for the registration of all or a greater portion
      of
      Registrable Securities), unless otherwise directed in writing by a Holder as
      to
      its Registrable Securities, the number of Registrable Securities to be
      registered on such Registration Statement will first be reduced by Registrable
      Securities represented by shares underlying Preferred Stock (applied, in the
      case that some Underlying Shares may be registered, to the Holders on a pro
      rata
      basis based on the total number of unregistered Underlying Shares held by such
      Holders), and second by Registrable Securities represented by shares of Common
      Stock held long (applied, in the case that some such shares may be registered,
      to the Holders on a pro rata basis based on the total number of unregistered
      shares held by such Holders); provided, however, that, prior to
      any reduction in the number of Registrable Securities included in a Registration
      Statement as set forth in this sentence, the number of shares of Common Stock
      set forth on Schedule 6(b) hereto which shall have been included on such
      Registration Statement shall be removed from the Registration
      Statement.

    

    

    
      
        
          
          

        

        
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    (b)           If:
      (i) the Initial Registration Statement is not filed on or prior to its Filing
      Date (if the Company files the Initial Registration Statement without affording
      the Holders the opportunity to review and comment on the same as required by
      Section 3(a) herein, the Company shall be deemed to have not satisfied this
      clause (i)), or (ii) the Company fails to file with the Commission a request
      for
      acceleration of a Registration Statement in accordance with Rule 461 promulgated
      by the Commission pursuant to the Securities Act, within five Trading Days
      of
      the date that the Company is notified (orally or in writing, whichever is
      earlier) by the Commission that such Registration Statement will not be
“reviewed” or will not be subject to further review, or (iii) prior to the
      effective date of a Registration Statement, the Company fails to file a
      pre-effective amendment and otherwise respond in writing to comments made by
      the
      Commission in respect of such Registration Statement within 10 Trading Days
      after the receipt of comments by or notice from the Commission that such
      amendment is required in order for such Registration Statement to be declared
      effective, or (iv) as to, in the aggregate among all Holders on a pro-rata
      basis
      based on their purchase of the Securities pursuant to the Purchase Agreement,
      a
      Registration Statement registering for resale all of the Initial Shares is
      not
      declared effective by the Commission by the Effectiveness Date of the Initial
      Registration Statement, or (v) all of the Registrable Securities are not
      registered for resale pursuant to one or more effective Registration Statements
      on or before December 31, 2007, or (vi) after the effective date of a
      Registration Statement, such Registration Statement ceases for any reason to
      remain continuously effective as to all Registrable Securities included in
      such
      Registration Statement, or the Holders are otherwise not permitted to utilize
      the Prospectus therein to resell such Registrable Securities, for more than
      10
      consecutive calendar days or more than an aggregate of 15 calendar days (which
      need not be consecutive calendar days) during any 12-month period (any such
      failure or breach being referred to as an “Event”, and for purposes of
      clause (i), (iv) and (v) the date on which such Event occurs, and for purpose
      of
      clause (ii) the date on which such five Trading Day period is exceeded, and
      for
      purpose of clause (iii) the date which such 10 calendar day period is exceeded,
      and for purpose of clause (vi) the date on which such 10 or 15 calendar day
      period, as applicable, is exceeded being referred to as “Event Date”),
      then, in addition to any other rights the Holders may have hereunder or under
      applicable law, on each such Event Date and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      2%
      of the aggregate purchase price paid by such Holder pursuant to the Purchase
      Agreement for any unregistered Registrable Securities then held by such
      Holder.  If the Company fails to pay any partial liquidated damages
      pursuant to this Section in full within seven days after the date payable,
      the
      Company will pay interest thereon at a rate of 18% per annum (or such lesser
      maximum amount that is permitted to be paid by applicable law) to the Holder,
      accruing daily from the date such partial liquidated damages are due until
      such
      amounts, plus all such interest thereon, are paid in full. The partial
      liquidated damages pursuant to the terms hereof shall apply on a daily pro
      rata
      basis for any portion of a month prior to the cure of an Event.

    

    

    

    
      
        
          
          

        

        
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              3.

            	
              Registration
                Procedures.

            

    

    

    In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

    

    (a)           Not
      less than 5 Trading Days prior to the filing of each Registration Statement
      and
      not less than one Trading Day prior to the filing of any related Prospectus
      or
      any amendment or supplement thereto (including any document that would be
      incorporated or deemed to be incorporated therein by reference), the Company
      shall (i) furnish to each Holder copies of all such documents proposed to be
      filed, which documents (other than those incorporated or deemed to be
      incorporated by reference) will be subject to the review of such Holders and
      (ii) cause its officers and directors, counsel and independent certified public
      accountants to respond to such inquiries as shall be necessary, in the
      reasonable opinion of respective counsel to each Holder, to conduct a reasonable
      investigation within the meaning of the Securities Act. The Company shall not
      file a Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities shall reasonably object in good faith, provided that the Company
      is
      notified of such objection in writing no later than 5 Trading Days after the
      Holders have been so furnished copies of a Registration Statement or 1 Trading
      Day after the Holders have been so furnished copies of any related Prospectus
      or
      amendments or supplements thereto. Each Holder agrees to furnish to the Company
      a completed questionnaire in the form attached to this Agreement as Annex
      B (a “Selling Shareholder Questionnaire”) not less than two Trading
      Days prior to the Filing Date or by the end of the fourth Trading Day following
      the date on which such Holder receives draft materials in accordance with this
      Section.

    

     

     

     

    
 

    

    

    

    
      
        
          
          

        

        
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    (b)           (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to a Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep a Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms of
      this
      Agreement), and, as so supplemented or amended, to be filed pursuant to Rule
      424; (iii) respond as promptly as reasonably possible to any comments received
      from the Commission with respect to a Registration Statement or any amendment
      thereto and provide as promptly as reasonably possible to the Holders true
      and
      complete copies of all correspondence from and to the Commission relating to
      a
      Registration Statement (provided that the Company may excise any information
      contained therein which would constitute material non-public information as
      to
      any Holder which has not executed a confidentiality agreement with the Company);
      and (iv) comply in all material respects with the provisions of the Securities
      Act and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by a Registration Statement during the applicable period
      in
      accordance (subject to the terms of this Agreement) with the intended methods
      of
      disposition by the Holders thereof set forth in such Registration Statement
      as
      so amended or in such Prospectus as so supplemented.

    

    (c)           If
      during the Effectiveness Period, the number of Registrable Securities at any
      time exceeds 100% of the number of shares of Common Stock then registered in
      a
      Registration Statement, then the Company shall file as soon as reasonably
      practicable, but in any case prior to the applicable Filing Date, an additional
      Registration Statement covering the resale by the Holders of not less than
      the
      number of such Registrable Securities.

    

    (d)           Notify
      the Holders of Registrable Securities to be sold (which notice shall, pursuant
      to clauses (iii) through (vi) hereof, be accompanied by an instruction to
      suspend the use of the Prospectus until the requisite changes have been made)
      as
      promptly as reasonably possible (and, in the case of (i)(A) below, not less
      than
      one Trading Day prior to such filing) and (if requested by any such Person)
      confirm such notice in writing no later than one Trading Day following the
      day
      (i)(A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to a Registration Statement is proposed to be filed; (B) when the
      Commission notifies the Company whether there will be a “review” of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement; and (C) with respect to a Registration Statement or
      any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other federal or state governmental authority
      for amendments or supplements to a Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission or any other
      federal or state governmental authority of any stop order suspending the
      effectiveness of a Registration Statement covering any or all of the Registrable
      Securities or the initiation of any Proceedings for that purpose; (iv) of the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening of
      any
      Proceeding for such purpose; (v) of the occurrence of any event or passage
      of
      time that makes the financial statements included in a Registration Statement
      ineligible for inclusion therein or any statement made in a Registration
      Statement or Prospectus or any document incorporated or deemed to be
      incorporated therein by reference untrue in any material respect or that
      requires any revisions to a Registration Statement, Prospectus or other
      documents so that, in the case of a Registration Statement or the Prospectus,
      as
      the case may be, it will not contain any untrue statement of a material fact
      or
      omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading; and (vi) of the occurrence or existence of any pending
      corporate development with respect to the Company that the Company believes
      may
      be material and that, in the determination of the Company, makes it not in
      the
      best interest of the Company to allow continued availability of a Registration
      Statement or Prospectus, provided that any and all of such information shall
      remain confidential to each Holder until such information otherwise becomes
      public, unless disclosure by a Holder is required by law; provided,
further, that notwithstanding each Holder’s agreement to keep such
      information confidential, each such Holder makes no acknowledgement that any
      such information is material, non-public information.

    

    

    
      
        
          
          

        

        
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    (e)           Use
      its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of (i) any order stopping or suspending the effectiveness of a Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

    

    (f)           Furnish
      to each Holder, without charge, at least one conformed copy of each such
      Registration Statement and each amendment thereto, including financial
      statements and schedules, all documents incorporated or deemed to be
      incorporated therein by reference to the extent requested by such Person, and
      all exhibits to the extent requested by such Person (including those previously
      furnished or incorporated by reference) promptly after the filing of such
      documents with the Commission; provided, that any such item which is available
      on the EDGAR system need not be furnished in physical form.

    

    (g)           Subject
      to the terms of this Agreement, the Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by each of the selling
      Holders in connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto, except
      after
      the giving of any notice pursuant to Section 3(d).

    

    (h)           
      The Company shall effect a filing with respect to the public offering
      contemplated by each Registration Statement (an “Issuer Filing”) with the
      National Association of Securities Dealers, Inc. (“NASD”) Corporate
      Financing Department pursuant to NASD Rule 2710 as described in proposed NASD
      Rule 2710(b)(10)(A)(i) within one Trading Day of the date that the Registration
      Statement is first filed with the Commission and pay the filing fee required
      by
      such Issuer Filing.  The Company shall use commercially reasonable
      efforts to pursue the Issuer Filing until the NASD issues a letter confirming
      that it does not object to the terms of the offering contemplated by the
      Registration Statement as described in the Plan of Distribution attached hereto
      as Annex A.  A copy of the Issuer Filing and all related
      correspondence to or from the NASD with respect thereto shall be provided to
      FWS.

    

    

    

    

    

    
      
        
          
          

        

        
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    (i)           Prior
      to any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by each Registration Statement; provided, that the Company
      shall not be required to qualify generally to do business in any jurisdiction
      where it is not then so qualified, subject the Company to any material tax
      in
      any such jurisdiction where it is not then so subject or file a general consent
      to service of process in any such jurisdiction.

    

    (j)           If
      requested by a Holder, cooperate with such Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holder may
      request.

    

    (k)           Upon
      the occurrence of any event contemplated by Section 3(d), as promptly as
      reasonably possible under the circumstances taking into account the Company’s
      good faith assessment of any adverse consequences to the Company and its
      stockholders of the premature disclosure of such event, prepare a supplement
      or
      amendment, including a post-effective amendment, to a Registration Statement
      or
      a supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither a Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. If the Company notifies the Holders in accordance with
      clauses (iii) through (vi) of Section 3(d) above to suspend the use of any
      Prospectus until the requisite changes to such Prospectus have been made, then
      the Holders shall suspend use of such Prospectus.  The Company will
      use its best efforts to ensure that the use of the Prospectus may be resumed
      as
      promptly as is practicable.  The Company shall be entitled to exercise
      its right under this Section 3(k) to suspend the availability of a Registration
      Statement and Prospectus, subject to the payment of partial liquidated damages
      otherwise required pursuant to Section 2(b), for a period not to exceed 60
      calendar days (which need not be consecutive days) in any 12 month
      period.

    

    

    

    
      
        
          
          

        

        
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    (l)           Comply
      with all applicable rules and regulations of the Commission.

    

    (m)           The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and, if required by the Commission, the natural persons thereof that
      have
      voting and dispositive control over the shares. During any periods that the
      Company is unable to meet its obligations hereunder with respect to the
      registration of the Registrable Securities solely because any Holder fails
      to
      furnish such information within three Trading Days of the Company’s request, any
      liquidated damages that are accruing at such time as to such Holder only shall
      be tolled and any Event that may otherwise occur solely because of such delay
      shall be suspended as to such Holder only, until such information is delivered
      to the Company.

    

    4.          Registration
      Expenses. All fees and expenses incident to the performance of or compliance
      with this Agreement by the Company shall be borne by the Company whether or
      not
      any Registrable Securities are sold pursuant to a Registration Statement. The
      fees and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses of the Company’s counsel and auditors) (A) with respect to
      filings made with the Commission, (B) with respect to filings required to be
      made with any Trading Market on which the Common Stock is then listed for
      trading, (C) in compliance with applicable state securities or Blue Sky laws
      reasonably agreed to by the Company in writing (including, without limitation,
      fees and disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities) and (D) if not
      previously paid by the Company in connection with an Issuer Filing, with respect
      to any filing that may be required to be made by any broker through which a
      Holder intends to make sales of Registrable Securities with the NASD pursuant
      to
      NASD Rule 2710, so long as the broker is receiving no more than a customary
      brokerage commission in connection with such sale, (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities), (iii) messenger, telephone and delivery expenses,
      (iv)
      fees and disbursements of counsel for the Company, (v) Securities Act liability
      insurance, if the Company so desires such insurance, and (vi) fees and expenses
      of all other Persons retained by the Company in connection with the consummation
      of the transactions contemplated by this Agreement.  In addition, the
      Company shall be responsible for all of its internal expenses incurred in
      connection with the consummation of the transactions contemplated by this
      Agreement (including, without limitation, all salaries and expenses of its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit and the fees and expenses incurred in connection with the
      listing of the Registrable Securities on any securities exchange as required
      hereunder.  In no event shall the Company be responsible for any
      broker or similar commissions of any Holder or, except to the extent provided
      for in the Transaction Documents, any legal fees or other costs of the
      Holders.

    

    

    

    
      
        
          
          

        

        
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              5.

            	
              Indemnification.

            

    

    

    (a)           Indemnification
      by the Company. The Company shall, notwithstanding any termination of this
      Agreement, indemnify and hold harmless each Holder, the officers, directors,
      members, partners, agents, brokers (including brokers who offer and sell
      Registrable Securities as principal as a result of a pledge or any failure
      to
      perform under a margin call of Common Stock), investment advisors and employees
      (and any other Persons with a functionally equivalent role of a Person holding
      such titles, notwithstanding a lack of such title or any other title) of each
      of
      them, each Person who controls any such Holder (within the meaning of Section
      15
      of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, members, shareholders, partners, agents and employees (and any other
      Persons with a functionally equivalent role of a Person holding such titles,
      notwithstanding a lack of such title or any other title) of each such
      controlling Person, to the fullest extent permitted by applicable law, from
      and
      against any and all losses, claims, damages, liabilities, costs (including,
      without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to (1) any untrue or
      alleged untrue statement of a material fact contained in a Registration
      Statement, any Prospectus or any form of prospectus or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      any
      Prospectus or supplement thereto, in light of the circumstances under which
      they
      were made) not misleading or (2) any violation or alleged violation by the
      Company of the Securities Act, the Exchange Act or any state securities law,
      or
      any rule or regulation thereunder, in connection with the performance of its
      obligations under this Agreement, except to the extent, but only to the extent,
      that (i) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates to
      such Holder or such Holder’s proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in a Registration Statement, such Prospectus or in any
      amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose) or (ii) in the case of an occurrence
      of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
      Holder of an outdated or defective Prospectus after the Company has notified
      such Holder in writing that the Prospectus is outdated or defective and prior
      to
      the receipt by such Holder of the Advice contemplated in Section
      6(d).  The Company shall notify the Holders promptly of the
      institution, threat or assertion of any Proceeding arising from or in connection
      with the transactions contemplated by this Agreement of which the Company is
      aware.

    

    

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    (b)           Indemnification
      by Holders. Each Holder shall, severally and not jointly, indemnify and hold
      harmless the Company, its directors, officers, agents and employees, each Person
      who controls the Company (within the meaning of Section 15 of the Securities
      Act
      and Section 20 of the Exchange Act), and the directors, officers, agents or
      employees of such controlling Persons, to the fullest extent permitted by
      applicable law, from and against all Losses, as incurred, to the extent arising
      out of or based solely upon: (x) such Holder’s failure to comply with the
      prospectus delivery requirements of the Securities Act or (y) any untrue or
      alleged untrue statement of a material fact contained in any Registration
      Statement, any Prospectus, or in any amendment or supplement thereto or in
      any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein not misleading (i) to the extent, but only to the extent,
      that such untrue statement or omission is contained in any information so
      furnished in writing by such Holder to the Company specifically for inclusion
      in
      such Registration Statement or such Prospectus or (ii) to the extent that such
      information relates to such Holder’s proposed method of distribution of
      Registrable Securities and was reviewed and expressly approved in writing by
      such Holder expressly for use in a Registration Statement (it being understood
      that the Holder has approved Annex A hereto for this purpose), such Prospectus
      or in any amendment or supplement thereto or (ii) in the case of an occurrence
      of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
      Holder of an outdated or defective Prospectus after the Company has notified
      such Holder in writing that the Prospectus is outdated or defective and prior
      to
      the receipt by such Holder of the Advice contemplated in Section 6(d). In no
      event shall the liability of any selling Holder hereunder be greater in amount
      than the dollar amount of the net proceeds received by such Holder upon the
      sale
      of the Registrable Securities giving rise to such indemnification
      obligation.

    

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

    

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

    

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided, that the Indemnified Party shall promptly
      reimburse the Indemnifying Party for that portion of such fees and expenses
      applicable to such actions for which such Indemnified Party is judicially
      determined to be not entitled to indemnification hereunder.

    

    (d)           Contribution.
      If the indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party or insufficient to hold an Indemnified Party harmless for
      any
      Losses, then each Indemnifying Party shall contribute to the amount paid or
      payable by such Indemnified Party, in such proportion as is appropriate to
      reflect the relative fault of the Indemnifying Party and Indemnified Party
      in
      connection with the actions, statements or omissions that resulted in such
      Losses as well as any other relevant equitable considerations. The relative
      fault of such Indemnifying Party and Indemnified Party shall be determined
      by
      reference to, among other things, whether any action in question, including
      any
      untrue or alleged untrue statement of a material fact or omission or alleged
      omission of a material fact, has been taken or made by, or relates to
      information supplied by, such Indemnifying Party or Indemnified Party, and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such action, statement or omission.  The amount
      paid or payable by a party as a result of any Losses shall be deemed to include,
      subject to the limitations set forth in this Agreement, any reasonable
      attorneys’ or other fees or expenses incurred by such party in connection with
      any Proceeding to the extent such party would have been indemnified for such
      fees or expenses if the indemnification provided for in this Section was
      available to such party in accordance with its terms.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding
      paragraph.  Notwithstanding the provisions of this Section 5(d), no
      Holder shall be required to contribute, in the aggregate, any amount in excess
      of the amount by which the net proceeds actually received by such Holder from
      the sale of the Registrable Securities subject to the Proceeding exceeds the
      amount of any damages that such Holder has otherwise been required to pay by
      reason of such untrue or alleged untrue statement or omission or alleged
      omission.

    

    

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

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

    

    
      	
               

            	
              6.

            	
              Miscellaneous.

            

    

    

    (a)           Remedies.  In
      the event of a breach by the Company or by a Holder of any of their respective
      obligations under this Agreement, each Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement, including recovery of damages, shall be entitled to
      specific performance of its rights under this Agreement.  The Company
      and each Holder agree that monetary damages would not provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall not assert
      or shall waive the defense that a remedy at law would be adequate.

    

    (b)           No
      Piggyback on Registrations; Prohibition on Filing Other Registration
      Statements. Except as set forth on Schedule 6(b) attached hereto,
      neither the Company nor any of its security holders (other than the Holders
      in
      such capacity pursuant hereto) may include securities of the Company in any
      Registration Statements other than the Registrable Securities.  The
      Company shall not file any other registration statements until all Registrable
      Securities are registered pursuant to a Registration Statement that is declared
      effective by the Commission, provided that this Section 6(b) shall not prohibit
      the Company from filing amendments to registration statements filed prior to
      the
      date of this Agreement.

    

    (c)           Compliance.
      Each Holder covenants and agrees that it will comply with the prospectus
      delivery requirements of the Securities Act as applicable to it in connection
      with sales of Registrable Securities pursuant to a Registration
      Statement.

    

    (d)           Discontinued
      Disposition.  By its acquisition of Registrable Securities, each
      Holder agrees that, upon receipt of a notice from the Company of the occurrence
      of any event of the kind described in Section 3(d)(iii) through (vi), such
      Holder will forthwith discontinue disposition of such Registrable Securities
      under a Registration Statement until it is advised in writing (the
“Advice”) by the Company that the use of the applicable Prospectus (as it
      may have been supplemented or amended) may be resumed.  The Company
      will use its best efforts to ensure that the use of the Prospectus may be
      resumed as promptly as it practicable.  The Company agrees and
      acknowledges that any periods during which the Holder is required to discontinue
      the disposition of the Registrable Securities hereunder shall be subject to
      the
      provisions of Section 2(b).

    

    (e)           Piggy-Back
      Registrations. If, at any time during the Effectiveness Period, there is not
      an effective Registration Statement covering all of the Registrable Securities
      and the Company shall determine to prepare and file with the Commission a
      registration statement relating to an offering for its own account or the
      account of others under the Securities Act of any of its equity securities,
      other than on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with the Company’s stock option or other
      employee benefit plans, then the Company shall deliver to each Holder a written
      notice of such determination and, if within fifteen days after the date of
      the
      delivery of such notice, any such Holder shall so request in writing, the
      Company shall include in such registration statement all or any part of such
      Registrable Securities such Holder requests to be registered; provided,
however, that the Company shall not be required to register any
      Registrable Securities pursuant to this Section 6(e) that are eligible for
      resale pursuant to Rule 144(k) promulgated by the Commission pursuant to the
      Securities Act or that are the subject of a then effective Registration
      Statement.

    

    

    
      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    

    

    (f)           Amendments
      and Waivers. The provisions of this Agreement, including the provisions of
      this sentence, may not be amended, modified or supplemented, and waivers or
      consents to departures from the provisions hereof may not be given, unless
      the
      same shall be in writing and signed by the Company and the Holders of at least
      67% of the then outstanding Registrable Securities (including, for this purpose
      any Registrable Securities issuable upon exercise or conversion of any
      Security).  If a Registration Statement does not register all of the
      Registrable Securities pursuant to a waiver or amendment done in compliance
      with
      the previous sentence, then the number of Registrable Securities to be
      registered for each Holder shall be reduced pro rata among all Holders and
      each
      Holder shall have the right to designate which of its Registrable Securities
      shall be omitted from such Registration Statement. Notwithstanding the
      foregoing, a waiver or consent to depart from the provisions hereof with respect
      to a matter that relates exclusively to the rights of a Holder or some Holders
      and that does not directly or indirectly affect the rights of other Holders
      may
      be given by such Holder or Holders of all of the Registrable Securities to
      which
      such waiver or consent relates; provided, however, that the
      provisions of this sentence may not be amended, modified, or supplemented except
      in accordance with the provisions of the first  sentence of this
      Section 6(f).

    

    (g)           Notices.
      Any and all notices or other communications or deliveries required or permitted
      to be provided hereunder shall be delivered as set forth in the Purchase
      Agreement.

    

    (h)           Successors
      and Assigns. This Agreement shall inure to the benefit of and be binding
      upon the successors and permitted assigns of each of the parties and shall
      inure
      to the benefit of each Holder. The Company may not assign (except by merger)
      its
      rights or obligations hereunder without the prior written consent of all of
      the
      Holders of the then outstanding Registrable Securities. Each Holder may assign
      their respective rights hereunder in the manner and to the Persons as permitted
      under the Purchase Agreement.

    

    (i)           No
      Inconsistent Agreements.  Neither the Company nor any of its
      Subsidiaries has entered, as of the date hereof, nor shall the Company or any
      of
      its Subsidiaries, on or after the date of this Agreement, enter into any
      agreement with respect to its securities, that would have the effect of
      impairing the rights granted to the Holders in this Agreement or otherwise
      conflicts with the provisions hereof.  Except as set forth on
Schedule 6(i), neither the Company nor any of its Subsidiaries has
      previously entered into any agreement granting any registration rights with
      respect to any of its securities to any Person that have not been satisfied
      in
      full.  This Agreement supersedes any prior agreements made
      between a Holder and the Company that relate to the registration of shares
      of
      Common Stock that have not been registered under the Securities Act or that
      are
      not yet eligible for resale pursuant to Rule 144(k).

    

    

    

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

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

    

    (k)           Governing
      Law.  All questions concerning the construction, validity,
      enforcement and interpretation of this Agreement shall be determined in
      accordance with the provisions of the Purchase Agreement.

    

    (l)           Cumulative
      Remedies. The remedies provided herein are cumulative and not exclusive of
      any other remedies provided by law.

    

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

    

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

    

    (o)           Independent
      Nature of Holders’ Obligations and Rights. The obligations of each Holder
      hereunder are several and not joint with the obligations of any other Holder
      hereunder, and no Holder shall be responsible in any way for the performance
      of
      the obligations of any other Holder hereunder. Nothing contained herein or
      in
      any other agreement or document delivered at any closing, and no action taken
      by
      any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders
      as a partnership, an association, a joint venture or any other kind of entity,
      or create a presumption that the Holders are in any way acting in concert with
      respect to such obligations or the transactions contemplated by this Agreement.
      Each Holder shall be entitled to protect and enforce its rights, including
      without limitation the rights arising out of this Agreement, and it shall not
      be
      necessary for any other Holder to be joined as an additional party in any
      proceeding for such purpose.

    

    ********************

    

    

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    

    

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

    

    
      	 	
              OXFORD
                MEDIA, INC.

            
	 	 
	 	 
	 	
              By:
                _____________________________

            
	 	
              Name:

            
	 	
              Title:

            

    

    

    

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
          
          

        

        
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    [SIGNATURE
      PAGE OF HOLDERS TO OXMI RRA]

    

    

    Name
      of
      Holder: __________________________

    

    Signature
      of Authorized Signatory of Holder: __________________________

    

    Name
      of
      Authorized Signatory: _________________________

    

    Title
      of
      Authorized Signatory: __________________________

    

    

    

    [SIGNATURE
      PAGES CONTINUE]

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
          
          

        

        
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    Annex
      A

    

    Plan
      of Distribution

    

    Each
      Selling Stockholder (the “Selling Stockholders”) of the common stock and
      any of their pledgees, assignees and successors-in-interest may, from time
      to
      time, sell any or all of their shares of common stock on the [principal Trading
      Market] or any other stock exchange, market or trading facility on which the
      shares are traded or in private transactions.  These sales may be at
      fixed or negotiated prices.  A Selling Stockholder may use any one or
      more of the following methods when selling shares:

     

    
      	
               

            	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	
               

            	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	
               

            	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	
               

            	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	
               

            	
              ·

            	
              privately
                negotiated transactions;

            

    

     

    
      	
               

            	
              ·

            	
              settlement
                of short sales entered into after the effective date of the registration
                statement of which this prospectus is a
                part;

            

    

     

    
      	
               

            	
              ·

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	
               

            	
              ·

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or
                otherwise;

            

    

     

    
      	
               

            	
              ·

            	
              a
                combination of any such methods of sale;
                or

            

    

     

    
      	
               

            	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities Act”), if available, rather than
      under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales.  Broker-dealers may receive commissions or
      discounts from the Selling Stockholders (or, if any broker-dealer acts as agent
      for the purchaser of shares, from the purchaser) in amounts to be negotiated,
      but, except as set forth in a supplement to this Prospectus, in the case of
      an
      agency transaction not in excess of a customary brokerage commission in
      compliance with NASDR Rule 2440; and in the case of a principal transaction
      a
      markup or markdown in compliance with NASDR IM-2440.

     

    

    
      
        
          
          

        

        
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    In
      connection with the sale of the common stock or interests therein, the Selling
      Stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume.  The Selling
      Stockholders may also sell shares of the common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities.  The
      Selling Stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales.  In such event, any
      commissions received by such broker-dealers or agents and any profit on the
      resale of the shares purchased by them may be deemed to be underwriting
      commissions or discounts under the Securities Act.  Each Selling
      Stockholder has informed the Company that it does not have any written or oral
      agreement or understanding, directly or indirectly, with any person to
      distribute the Common Stock. In no event shall any broker-dealer receive fees,
      commissions and markups which, in the aggregate, would exceed eight percent
      (8%).

     

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares.  The Company has agreed to
      indemnify the Selling Stockholders against certain losses, claims, damages
      and
      liabilities, including liabilities under the Securities Act.

     

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act including Rule 172 thereunder.  In addition, any
      securities covered by this prospectus which qualify for sale pursuant to Rule
      144 under the Securities Act may be sold under Rule 144 rather than under this
      prospectus.  There is no underwriter or coordinating broker acting in
      connection with the proposed sale of the resale shares by the Selling
      Stockholders.

     

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations by reason of Rule 144(k) under the
      Securities Act or any other rule of similar effect or (ii) all of the shares
      have been sold pursuant to this prospectus or Rule 144 under the Securities
      Act
      or any other rule of similar effect.  The resale shares will be sold
      only through registered or licensed brokers or dealers if required under
      applicable state securities laws. In addition, in certain states, the resale
      shares may not be sold unless they have been registered or qualified for sale
      in
      the applicable state or an exemption from the registration or qualification
      requirement is available and is complied with.

     

    

    
      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

    

    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to the common stock for the applicable restricted
      period, as defined in Regulation M, prior to the commencement of the
      distribution.  In addition, the Selling Stockholders will be subject
      to applicable provisions of the Exchange Act and the rules and regulations
      thereunder, including Regulation M, which may limit the timing of purchases
      and
      sales of shares of the common stock by the Selling Stockholders or any other
      person.  We will make copies of this prospectus available to the
      Selling Stockholders and have informed them of the need to deliver a copy of
      this prospectus to each purchaser at or prior to the time of the sale (including
      by compliance with Rule 172 under the Securities Act).

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

    
      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    

    

    Annex
      B

     

    OXFORD
      MEDIA, INC.

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock (the “Registrable
      Securities”) of Oxford Media, Inc., a Delaware corporation (the
“Company”), understands that the Company has filed or intends to file
      with the Securities and Exchange Commission (the “Commission”) a
      registration statement (the “Registration Statement”) for the
      registration and resale under Rule 415 of the Securities Act of 1933, as amended
      (the “Securities Act”), of the Registrable Securities, in accordance with
      the terms of the Registration Rights Agreement (the “Registration Rights
      Agreement”) to which this document is annexed.  A copy of the
      Registration Rights Agreement is available from the Company upon request at
      the
      address set forth below.  All capitalized terms not otherwise defined
      herein shall have the meanings ascribed thereto in the Registration Rights
      Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus.  Accordingly,
      holders and beneficial owners of Registrable Securities are advised to consult
      their own securities law counsel regarding the consequences of being named
      or
      not being named as a selling securityholder in the Registration Statement and
      the related prospectus.

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling Securityholder”) of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it in the Registration Statement.

     

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

    

    

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    
      	
              1.

            	
              Name.

            

    

     

    
      	
               

            	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	 	 	
              
 

    

     

    
      	
               

            	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities are
                held:

            

    

    
       

      
        	 	 	
                
 

      

       

    

    
      	
               

            	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by this
                Questionnaire):

            

    

    
       

      
        	 	 	
                
 

      

       

    

    2.  Address
      for Notices to Selling Securityholder:

     

    
      

      

      

    

    
      	
              Telephone:

            	
              ____________________________________

            

    

    
      	
              Fax:

            	
               __________________________________

            

    

    
      	
              Contact
                Person:

            	
              ___________________________

            

    

    

    3.  Broker-Dealer
      Status:

     

    
      	
               

            	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes       No   

     

    
      	
               

            	
              (b)

            	
              If
                “yes” to Section 3(a), did you receive your Registrable Securities as
                compensation for investment banking services to the
                Company?

            

    

     

    
      Yes       No   

       

    

    
      	
            	
              Note:

            	
              If
                “no” to Section 3(b), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

    

    
      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

    

    
      	
               

            	
              (c)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    
      Yes       No   

       

    

    
      	
               

            	
              (d)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                purchased
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    
      Yes       No   

    

     

    
      	
            	
              Note:

            	
              If
                “no” to Section 3(d), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

    4.  Beneficial
      Ownership of Securities of the Company Owned by the Selling
      Securityholder.

     

    Except
      as set forth below in this Item 4, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the securities
      issuable pursuant to the Purchase Agreement.

     

    
      	
               

            	
              (a)

            	
              Type
                and Amount of other securities beneficially owned by the Selling
                Securityholder:

            

    

    
      
         

        
          	 	 	
                  

                  
 

        

         

      

     

    

     

    

     

    

     

    

     

    

     

    

     

    

    
      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    

    

    5.  Relationships
      with the Company:

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    
      	
               

            	
              State
                any exceptions here:

            

    

    
      
         

        
          	 	 	
                  

                  
 

        

         

         

      

    

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 5 and the inclusion of such
      information in the Registration Statement and the related prospectus and any amendments or supplements
      thereto.  The undersigned understands that such information
      will be relied upon by the Company in connection with the preparation or
      amendment of the Registration Statement and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    
      	
              Date:
                _____________________

            	
              Beneficial
                Owner: _____________________

            
	 	 	 
	 	
              By:

            	
              ______________________________

            
	 	 	
              Name:

            
	 	 	
              Title:

            

    

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

    

    

     

    

    
      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      6(b)

    

    Permitted
      Registration Rights

    

    Pursuant
      to the terms and conditions of a Settlement and Release Agreement entered into
      David L. Parker, the Company will, among other things, issue to Parker 6,300,000
      shares of its common stock and be obligated to afford to Parker the same
      registration rights as provided under this Registration Rights
      Agreement.

    

    Pursuant
      to the terms and conditions of the Securities Exchange Agreement the following
      “Holders” under the Securities Exchange Agreement shall be afforded all rights
      and preferences as a “Holder” hereunder with regard to the number of shares of
      Series “C” Preferred Stock designated next to each such person:

    

    
      	
              Palisades
                Master Fund, LP

            	 	
              6,407.0373

            
	
              Midsummer
                Investment Fund

            	 	
              3,093.2811

            
	
              Longview
                Fund, L.P.

            	 	
              2,652.7661

            
	
              Camofi
                Master LDC

            	 	
              1,048.4932

            
	
              Crescent
                International, Ltd.

            	 	
              524.2466

            
	
              Plus
                Four Private Equities, L.P.

            	 	
              524.2466

            
	
              Lew
                Jaffe

            	 	
              104.8493

            
	
              Dave
                Parker

            	 	
              104.8493

            
	
              Marital
                Trust U/T Richard L. Owens,

              Trustee,
                Dated 11-24-92

            	 	
              639.2709

            
	
              Marsha
                S. Glazer

            	 	
              639.2709

            
	
              Andrew
                Rubenstein

            	 	
              26.0927

            
	
              Marital
                Trust U/T Richard L. Owens,

              Trustee,
                Dated 11-24-92

            	 	
              6.8008

            
	
              Marsha
                S. Glazer

            	 	
              6.8008

            
	
              Andrew
                Rubenstein

            	 	
              0.2776

            
	
              Edward
                Kelly

            	 	
              6.5181

            
	
              Paul
                & Kathleen Kelly

            	 	
              6.5181

            
	
              Lew
                Jaffe

            	 	
              37.2299

            

    

    

    

    

    

     

    

     

    

     

     

    25oxford8k071607ex10-3.htm

    
      

      

    

    
      EXHIBIT
        10.3

      OXFORD
        MEDIA, INC.

      

      CERTIFICATE
        OF DESIGNATION OF PREFERENCES,

      RIGHTS,
        AND LIMITATIONS

      OF

      SERIES
        C CONVERTIBLE PREFERRED STOCK

      

      PURSUANT
        TO SECTION 78.1955 OF THE

      NEVADA
        GENERAL CORPORATION LAW

      

      The
        undersigned, LEWIS JAFFE, does hereby certify that:

      

      1.
        He is
        the President of Oxford Media, Inc., a Nevada corporation (the
“Corporation”).

      

      2.
        The
        Corporation is authorized to issue 1,000,000 shares of preferred stock, 7,857
        of
        which have been issued.

      

      3.
        The
        following resolutions were duly adopted by the board of directors of the
        Corporation (the “Board of Directors”):

      

      WHEREAS,
        the certificate of incorporation of the Corporation provides for a class
        of its
        authorized stock known as preferred stock, comprised of 1,000,000 shares,
        $0.001
        par value per share, issuable from time to time in one or more
        series;

      

      WHEREAS,
        the Board of Directors is authorized to fix the dividend rights, dividend
        rate,
        voting rights, conversion rights, rights and terms of redemption and liquidation
        preferences of any wholly unissued series of preferred stock and the number
        of
        shares constituting any series and the designation thereof, of any of them;
        and

      

      WHEREAS,
        it is the desire of the Board of Directors, pursuant to its authority as
        aforesaid, to fix the rights, preferences, restrictions and other matters
        relating to a series of the preferred stock, which shall consist of up to
        100,000 shares of the preferred stock which the Corporation has the authority
        to
        issue, as follows:

      

      NOW,
        THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide
        for
        the issuance of a series of preferred stock for cash or exchange of other
        securities, rights or property and does hereby fix and determine the rights,
        preferences, restrictions and other matters relating to such series of preferred
        stock as follows:

      

      

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      TERMS
        OF PREFERRED STOCK

      

      Section
        1.  Definitions. Capitalized terms used and not otherwise
        defined herein that are defined in the Purchase Agreement shall have the
        meanings given such terms in the Purchase Agreement. For the purposes hereof,
        the following terms shall have the following meanings:

      

      “Alternate
        Consideration” shall have the meaning set forth in Section
        7(e).

      

      “Bankruptcy
        Event” means any of the following events: (a) the Corporation or any
        Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation
        S-X) thereof commences a case or other proceeding under any bankruptcy,
        reorganization, arrangement, adjustment of debt, relief of debtors, dissolution,
        insolvency or liquidation or similar law of any jurisdiction relating to
        the
        Corporation or any Significant Subsidiary thereof; (b) there is commenced
        against the Corporation or any Significant Subsidiary thereof any such case
        or
        proceeding that is not dismissed within 60 days after commencement; (c) the
        Corporation or any Significant Subsidiary thereof is adjudicated insolvent
        or
        bankrupt or any order of relief or other order approving any such case or
        proceeding is entered; (d) the Corporation or any Significant Subsidiary
        thereof
        suffers any appointment of any custodian or the like for it or any substantial
        part of its property that is not discharged or stayed within 60 calendar
        days
        after such appointment; (e) the Corporation or any Significant Subsidiary
        thereof makes a general assignment for the benefit of creditors; (f) the
        Corporation or any Significant Subsidiary thereof calls a meeting of its
        creditors with a view to arranging a composition, adjustment or restructuring
        of
        its debts; or (g) the Corporation or any Significant Subsidiary thereof,
        by any
        act or failure to act, expressly indicates its consent to, approval of or
        acquiescence in any of the foregoing or takes any corporate or other action
        for
        the purpose of effecting any of the foregoing.

      

      “Base
        Conversion Price” shall have the meaning set forth in Section
        7(b).

      

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

      

      “Buy-In”
        shall have the meaning set forth in Section 6(e)(iii).

      

      “Change
        of Control Transaction” means the occurrence after the date hereof of any of
        (i) an acquisition after the date hereof by an individual, legal entity or
        “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
        effective control (whether through legal or beneficial ownership of capital
        stock of the Corporation, by contract or otherwise) of in excess of 33% of
        the
        voting securities of the Corporation (other than by means of conversion or
        exercise of the Preferred Stock and the Securities issued or issuable pursuant
        to the Purchase Agreement), or (ii) the Corporation merges into or consolidates
        with any other Person, or any Person merges into or consolidates with the
        Corporation and, after giving effect to such transaction, the stockholders
        of
        the Corporation immediately prior to such transaction own less than 66% of
        the
        aggregate voting power of the Corporation or the successor entity of such
        transaction, or (iii) the Corporation sells or transfers all or substantially
        all of its assets to another Person and the stockholders of the Corporation
        immediately prior to such transaction own less than 66% of the aggregate
        voting
        power of the acquiring entity immediately after the transaction, or (iv)
        a
        replacement at one time or within a one year period of more than one-half
        of the
        members of the Corporation’s board of directors which is not approved by a
        majority of those individuals who are members of the board of directors on
        the
        date hereof (or by those individuals who are serving as members of the board
        of
        directors on any date whose nomination to the board of directors was approved
        by
        a majority of the members of the board of directors who are members on the
        date
        hereof), or (v) the execution by the Corporation of an agreement to which
        the
        Corporation  is a party or by which it is bound, providing for any of
        the events set forth in clauses (i) through (iv) above.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Closing
        Date” means the Trading Day when all of the Transaction Documents have been
        executed and delivered by the applicable parties thereto and all conditions
        precedent to (i) each Holder’s obligations to pay the Subscription Amount and
        (ii) the Corporation’s obligations to deliver the Securities have been satisfied
        or waived.

      

      “Commission”
        means the Securities and Exchange Commission.

      

      “Common
        Stock” means the Corporation’s common stock, par value $0.001 per share, and
        stock of any other class of securities into which such securities may hereafter
        be reclassified or changed into.

      

      “Common
        Stock Equivalents” means any securities of the Corporation or the
        Subsidiaries which would entitle the holder thereof to acquire at any time
        Common Stock, including, without limitation, any debt, preferred stock, rights,
        options, warrants or other instrument that is at any time convertible into
        or
        exchangeable for, or otherwise entitles the holder thereof to receive, Common
        Stock.

      

      “Conversion
        Amount” means the sum of the Stated Value at issue.

      

      “Conversion
        Date” shall have the meaning set forth in Section 6(a).

      

      “Conversion
        Price” shall have the meaning set forth in Section 6(b).

      

      “Conversion
        Shares” means, collectively, the shares of Common Stock issuable upon
        conversion of the shares of Preferred Stock in accordance with the terms
        hereof.

      

      “Conversion
        Shares Registration Statement” means a registration statement that registers
        the resale of all Conversion Shares of the Holders, who shall be named as
        a
“selling stockholder” therein and meets the requirements of the Registration
        Rights Agreement.

      
 

      “Dilutive
        Issuance” shall have the meaning set forth in Section 7(b).

      

      “Dilutive
        Issuance Notice” shall have the meaning set forth in Section
        7(b).

      

      “Dividend
        Payment Date” shall have the meaning set forth in Section 3(a).

      
 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      “Effective
        Date” means the date that the Conversion Shares Registration Statement is
        declared effective by the Commission.

      

      “Equity
        Conditions” means, during the period in question, (i) the Corporation shall
        have duly honored all conversions scheduled to occur or occurring by virtue
        of
        one or more Notices of Conversion of the applicable Holder on or prior to
        the
        dates so requested or required, if any, (ii) the Corporation shall have paid
        all
        liquidated damages and other amounts owing to the applicable Holder in respect
        of the Preferred Stock, (iii) there is an effective Conversion Shares
        Registration Statement pursuant to which the Holders are permitted to utilize
        the prospectus thereunder to resell all of the shares of Common Stock issuable
        pursuant to the Transaction Documents (and the Corporation believes, in good
        faith, that such effectiveness will continue uninterrupted for the foreseeable
        future), (iv) the Common Stock is trading on a Trading Market and all of
        the
        shares issuable pursuant to the Transaction Documents are listed for trading
        on
        such Trading Market (and the Corporation believes, in good faith, that trading
        of the Common Stock on a Trading Market will continue uninterrupted for the
        foreseeable future), (v) there is a sufficient number of authorized, but
        unissued and otherwise unreserved, shares of Common Stock for the issuance
        of
        all of the shares of Common Stock issuable pursuant to the Transaction
        Documents, (vi) there is no existing Triggering Event or no existing event
        which, with the passage of time or the giving of notice, would constitute
        a
        Triggering Event, (vii) the issuance of the shares in question to the applicable
        Holder would not violate the limitations set forth in Section 6(c) and
        Section 6(d) herein, (viii) there has been no public announcement of a pending
        or proposed Fundamental Transaction or Change of Control Transaction that
        has
        not been consummated and (ix) the applicable Holder is not in possession of
        any information that constitutes, or may constitute, material non-public
        information.

      

      “Exchange
        Act” means the Securities Exchange Act of 1934, as amended, and the rules
        and regulations promulgated thereunder.

      

      “Exempt
        Issuance” means the issuance of (a) shares of Common Stock or options
        to employees, officers or directors of the Corporation pursuant to any stock
        or
        option plan duly adopted by a majority of the non-employee members of the
        Board
        of Directors of the Corporation or a majority of the members of a committee
        of
        non-employee directors established for such purpose, (b) securities upon
        the
        exercise of or conversion of any securities issued hereunder and/or other
        securities exercisable or exchangeable for or convertible into shares of
        Common
        Stock issued and outstanding on the date of the Purchase Agreement, provided
        that such securities have not been amended since the date of the Purchase
        Agreement to increase the number of such securities or to decrease the exercise
        or conversion price of any such securities, and (c) securities issued pursuant
        to acquisitions or strategic transactions approved by a majority of the
        disinterested directors, provided that any such issuance shall only be to
        a
        Person which is, itself or through its subsidiaries, an operating company
        in a
        business synergistic with the business of the Corporation and shall provide
        to
        the Corporation additional benefits in addition to the investment of funds,
        but
        shall not include a transaction in which the Corporation is issuing securities
        primarily for the purpose of raising capital or to an entity whose primary
        business is investing in securities.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “Forced
        Conversion Amount” means the sum of (i) the aggregate Stated Value then
        outstanding, (ii) accrued but unpaid dividends and (iii) all liquidated damages
        and other amounts due in respect of the Preferred Stock.

      

      “Forced
        Conversion Date” shall have the meaning set forth in Section 8.

      

      “Forced
        Conversion Notice” shall have the meaning set forth in Section
        8.

      

      “Forced
        Conversion Notice Date” shall have the meaning set forth in Section
        8.

      

      “Fundamental
        Transaction” shall have the meaning set forth in Section 7(e).

      

      “Holder”
        shall have the meaning given such term in Section 2.

      

      “Junior
        Securities” means the Common Stock and all other Common Stock Equivalents of
        the Corporation other than those securities which are explicitly senior or
        pari passu to the Preferred Stock in dividend rights or
        liquidation preference.

      

      “Liquidation”
        shall have the meaning set forth in Section 5.

      

      “New
        York Courts” shall have the meaning set forth in Section 11(d).

      

      “Notice
        of Conversion” shall have the meaning set forth in Section
        6(a).

      

      “Original
        Issue Date” means the date of the first issuance of any shares of the
        Preferred Stock regardless of the number of transfers of any particular shares
        of Preferred Stock and regardless of the number of certificates which may
        be
        issued to evidence such Preferred Stock.

      

      “Permitted
        Indebtedness” means (a) the Indebtedness existing on the Original Issue Date
        and set forth on Schedule 3.1(aa) attached to the Purchase Agreement and
        (b) lease obligations and purchase money indebtedness of up to $100,000,
        in the
        aggregate, incurred in connection with the acquisition of capital assets
        and
        lease obligations with respect to newly acquired or leased assets.

      

      “Permitted
        Lien” means the individual and collective reference to the following: (a)
        Liens for taxes, assessments and other governmental charges or levies not
        yet
        due or Liens for taxes, assessments and other governmental charges or levies
        being contested in good faith and by appropriate proceedings for which adequate
        reserves (in the good faith judgment of the management of the Corporation)
        have
        been established in accordance with GAAP; (b) Liens imposed by law which
        were incurred in the ordinary course of the Corporation’s business, such as
        carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and
        other similar Liens arising in the ordinary course of the Corporation’s
        business, and which (x) do not individually or in the aggregate materially
        detract from the value of such property or assets or materially impair the
        use
        thereof in the operation of the business of the Corporation and its consolidated
        Subsidiaries or (y) which are being contested in good faith by appropriate
        proceedings, which proceedings have the effect of preventing for the foreseeable
        future the forfeiture or sale of the property or asset subject to such Lien;
        (c)
        Liens incurred in connection with Permitted Indebtedness under clause (a)
        thereunder; and (d) Liens incurred in connection with Permitted Indebtedness
        under clause (b) thereunder, provided that such Liens are not secured by
        assets
        of the Corporation or its Subsidiaries other than the assets so acquired
        or
        leased.

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      "Preferred
        Rights Reduction Date" shall have the meaning set forth in
        Section 3.

      

      “Preferred
        Stock” shall have the meaning set forth in Section 2.

      

      “Purchase
        Agreement” means the Securities Purchase Agreement, dated as of the Original
        Issue Date, to which the Corporation and certain of the original Holders
        are
        parties, as amended, modified or supplemented from time to time in accordance
        with its terms.

      

      “Registration
        Rights Agreement” means the Registration Rights Agreement, dated as of the
        date of the Purchase Agreement, to which the Corporation and the original
        Holder
        are parties, as amended, modified or supplemented from time to time in
        accordance with its terms.

      

      “Securities
        Act” means the Securities Act of 1933, as amended, and the rules and
        regulations promulgated thereunder.

      

      “Share
        Delivery Date” shall have the meaning set forth in Section
        6(e).

      

      “Stated
        Value” shall have the meaning set forth in Section 2.

      

      “Subscription
        Amount” means, as to each Purchaser, the amount in United States Dollars and
        in immediately available funds to be paid for the Preferred Stock purchased
        pursuant to the Purchase Agreement as specified below such Purchaser’s name on
        the signature page of the Purchase Agreement and next to the heading
“Subscription Amount.”

      

      “Subsidiary”
        shall have the meaning set forth in the Purchase Agreement.

      

      “Trading
        Day” means a day on which the principal Trading Market is open for business;
        provided that if the Corporation is not listed or quoted for trading on a
        Trading Market, "Trading Day" shall mean "Business Day" unless the context
        otherwise requires.

      

      “Trading
        Market” means the following markets or exchanges on which the Common Stock
        is listed or quoted for trading on the date in question: the American Stock
        Exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq
        Global
        Select Market, the New York Stock Exchange or the OTC Bulletin
        Board.

      

      “Transaction
        Documents” shall have the meaning set forth in the Purchase
        Agreement.

      

      “Triggering
        Event” shall have the meaning set forth in Section 9(a).

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      “Triggering
        Redemption Amount” means, for each share of Preferred Stock, the sum of (i)
        the greater of (A) 120% of the Stated Value and (B) the product of (a) the
        VWAP
        on the Trading Day immediately preceding the date of the Triggering Event
        and
        (b) the Stated Value divided by the then Conversion Price, (ii) all accrued
        but
        unpaid dividends thereon and (iii) all liquidated damages and other costs,
        expenses or amounts due in respect of the Preferred Stock.

      

      “Triggering
        Redemption Payment Date” shall have the meaning set forth in Section
        9(b).

      

      “VWAP”
        means, for any date, the price determined by the first of the following clauses
        that applies: (a) if the Common Stock is then listed or quoted on a Trading
        Market, the daily volume weighted average price of the Common Stock for such
        date (or the nearest preceding date) on the Trading Market on which the Common
        Stock is then listed or quoted for trading as reported by Bloomberg Financial
        L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02
        p.m.
        (New York City time)); (b) a Trading Market and if prices for the Common
        Stock
        are then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a
        similar organization or agency succeeding to its functions of reporting prices),
        the most recent bid price per share of the Common Stock so reported; or (c)
        in
        all other cases, the fair market value of a share of Common Stock as determined
        by an independent appraiser selected in good faith by the Holders and reasonably
        acceptable to the Corporation, the fees and expenses of which shall be paid
        by
        the Corporation.

      

      Section
        2.  Designation, Amount and Par Value. The series of preferred
        stock shall be designated as its Series C  Convertible Preferred Stock
        (the “Preferred Stock”) and the number of shares so designated
        shall be up to 100,000 (which shall not be subject to increase without the
        written consent of all of the holders of the Preferred Stock (each, a
“Holder” and collectively, the “Holders”)). Each share of
        Preferred Stock shall have a par value of $0.001 per share and a stated value
        equal to $1,000, subject to increase set forth in Section 3(a) below (the
        “Stated Value”).

      
 

      Section
        3.  Dividends in Kind.  Holders shall be entitled to
        receive, and the Corporation shall pay, cumulative dividends at the rate
        per
        share (as a percentage of the Stated Value per share) of 7% per annum (subject
        to increase pursuant to Section 9(b)), payable quarterly on
        January 1, April 1, July 1 and October 1, beginning on the first such date
        after
        the Original Issue Date and on each Conversion Date (with respect only to
        Preferred Stock being converted) (each such date, a “Dividend Payment
        Date”) up to and until the earlier of (y) four (4) year anniversary of
        the first Dividend Payment Date (the “Four Year Anniversary”) and
        (z) the Forced Conversion Date (the earlier of such dates, the
        "Preferred Rights Reduction Date"), in duly authorized, validly issued,
        fully paid and non-assessable shares of Preferred Stock based on the Stated
        Value per share of Preferred Stock of $1,000.  Dividends on the
        Preferred Stock shall be calculated on the basis of a 360-day year, consisting
        of twelve 30 calendar day periods, shall accrue daily commencing on the Original
        Issue Date, and shall be deemed to accrue from such date whether or not earned
        or declared.  Any dividends that are not paid via the issuance of
        shares of Preferred Stock within three Trading Days following a Dividend
        Payment
        Date shall continue to accrue and shall entail a late fee, which must
        be paid in cash, at the rate of 18% per annum or the lesser rate permitted
        by applicable law (such fees to accrue daily, from the Dividend Payment Date
        through and including the date of payment).

      

      
        
          
          

        

        
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      Section
        4.  Voting Rights.  Until such date as Holders holding
        at least 67% of the then outstanding shares of Preferred Stock notify the
        Company in writing that the Preferred Stock shall no longer have voting rights,
        each Holder of Preferred Stock shall have voting rights equal to, as to each
        share of Preferred Stock, the number of Conversion Shares receivable upon
        conversion in full of such share of Preferred Stock then held by such Holder,
        ignoring for such purposes any conversion limitations included
        herein.

      

      Section
        5.  Liquidation. Upon any liquidation, dissolution or
        winding-up of the Corporation, whether voluntary or involuntary (a
“Liquidation”), the Holders shall be entitled to receive out of the
        assets, whether capital or surplus, of the Corporation an amount equal to
        the
        Stated Value, plus any accrued and unpaid dividends thereon and any other
        fees
        or liquidated damages owing thereon, for each share of Preferred Stock before
        any distribution or payment shall be made to the holders of any Junior
        Securities; provided, however, that following the Preferred Rights Reduction
        Date the Holders of the Preferred Stock shall, upon a Liquidation, receive
        any
        distribution of assets pari passu with the holders of Common
        Stock.  If the assets of the Corporation shall be insufficient to pay
        in full such amounts, then the entire assets to be distributed to the Holders
        shall be ratably distributed among the Holders in accordance with the respective
        amounts that would be payable on such shares if all amounts payable thereon
        were
        paid in full.  A Fundamental Transaction or Change of Control
        Transaction shall not be deemed a Liquidation, except that to the extent
        any
        consideration is payable on account of Preferred Stock as a result of a
        Fundamental Transaction or Change of Control Transaction taking place after
        the
        Preferred Rights Reduction Date, all such consideration shall be distributed
        pari passu with the holders of Common Stock. The Corporation shall mail written
        notice of any such Liquidation, not less than 45 days prior to the payment
        date
        stated therein, to each Holder.

      

      Section
        6.   Conversion.

      

      a)           Conversions
        at Option of Holder.  Subject to the limitations set forth in
        Section 6(c) and Section 6(d), each share of Preferred Stock shall be
        convertible, at any time and from time to time from and after the Original
        Issue
        Date at the option of the Holder thereof, into that number of shares of Common
        Stock determined by dividing the Stated Value of such share of Preferred
        Stock
        by the Conversion Price. Holders shall effect conversions under this Section
        6
        by providing the Corporation with the form of conversion notice attached
        hereto
        as Annex A (a “Notice of Conversion”). Each Notice of Conversion
        shall specify the number of shares of Preferred Stock to be converted, the
        number of shares of Preferred Stock owned prior to the conversion at issue,
        the
        number of shares of Preferred Stock owned subsequent to the conversion at
        issue
        and the date on which such conversion is to be effected, which date may not
        be
        prior to the date the applicable Holder delivers by facsimile such Notice
        of
        Conversion to the Corporation (such date, the “Conversion Date”). If no
        Conversion Date is specified in a Notice of Conversion, the Conversion Date
        shall be the date that such Notice of Conversion to the Corporation is deemed
        delivered hereunder. The calculations and entries set forth in the Notice
        of
        Conversion shall control in the absence of manifest or mathematical
        error.  To effect conversions of shares of Preferred Stock, a Holder
        shall not be required to surrender the certificate(s) representing such shares
        of Preferred Stock to the Corporation unless all of the shares of Preferred
        Stock represented thereby are so converted, in which case such Holder shall
        deliver the certificate representing such shares of Preferred Stock promptly
        following the Conversion Date at issue.  Shares of Preferred Stock
        converted into Common Stock or redeemed in accordance with the terms hereof
        shall be canceled and shall not be reissued.

      

      
        
          
          

        

        
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      b)           Automatic
        Conversion. Notwithstanding anything herein to the contrary, upon the Four
        Year Anniversary, as defined in Section 3, above, (such date also being referred
        to herein as the "Automatic Conversion Effective Date"), each share of the
        Preferred Stock then outstanding shall, without further action by the Holder
        thereof, automatically convert into that number of shares of Common Stock
        determined by dividing the Stated Value of such share of Preferred Stock
        by the
        Conversion Price, but only to the extent that such automatic conversion does
        not
        cause such Holder to exceed such Holder’s Beneficial Ownership Limitation. After
        the Automatic Conversion Effective Date, conversion of shares of Preferred
        Stock
        shall be at the sole election of the Holder and the redemption, liquidation,
        consent, dividend, and other rights and preferences of Holders of the Preferred
        Shares (other than voting rights, which shall not be effected by the automatic
        conversion) shall be eliminated or limited as specifically set forth
        herein.

      

      c)           Conversion
        Price.  The conversion price for the Preferred Stock shall equal
$0.02,subject to adjustment herein (the
        “Conversion Price”).

      

      d)           Beneficial
        Ownership Limitation. The Corporation shall not effect any
        conversion of the Preferred Stock, including an automatic conversion under
        Subsection b), above, or a forced conversion under Section 8, below, and
        a
        Holder shall not have the right to convert any portion of the Preferred Stock,
        to the extent that, after giving effect to the conversion set forth on the
        applicable Notice of Conversion, such Holder (together with such Holder’s
        Affiliates, and any other person or entity acting as a group together with
        such
        Holder or any of such Holder’s Affiliates) would beneficially own in excess of
        the Beneficial Ownership Limitation (as defined below).  For purposes
        of the foregoing sentence, the number of shares of Common Stock beneficially
        owned by such Holder and its Affiliates shall include the number of shares
        of
        Common Stock issuable upon conversion of the Preferred Stock with respect
        to
        which such determination is being made, but shall exclude the number of shares
        of Common Stock which are issuable upon (A) conversion of the remaining,
        unconverted Stated Value of Preferred Stock beneficially owned by such Holder
        or
        any of its Affiliates and (B) exercise or conversion of the unexercised or
        unconverted portion of any other securities of the
        Corporation  subject to a limitation on conversion or exercise
        analogous to the limitation contained herein beneficially owned by such Holder
        or any of its Affiliates.  Except as set forth in the preceding
        sentence, for purposes of this Section 6(c), beneficial ownership shall be
        calculated in accordance with Section 13(d) of the Exchange Act and the rules
        and regulations promulgated thereunder.  To the extent that the
        limitation contained in this Section 6(c) applies, the determination of whether
        the Preferred Stock is convertible (in relation to other securities owned
        by
        such Holder together with any Affiliates) and of how many shares of Preferred
        Stock are convertible shall be in the sole discretion of such Holder, and
        the
        submission of a Notice of Conversion shall be deemed to be such Holder’s
        determination of whether the shares of Preferred Stock may be converted (in
        relation to other securities owned by such Holder together with any Affiliates)
        and how many shares of the Preferred Stock are convertible, in each case
        subject
        to the Beneficial Ownership Limitation. To ensure compliance with this
        restriction, each Holder will be deemed to represent to the Corporation each
        time it delivers a Notice of Conversion that such Notice of Conversion has
        not
        violated the restrictions set forth in this paragraph and the Corporation
        shall
        have no obligation to verify or confirm the accuracy of such
        determination.  In addition, a determination as to any group status as
        contemplated above shall be determined in accordance with Section 13(d) of
        the
        Exchange Act and the rules and regulations promulgated thereunder. For purposes
        of this Section 6(c), in determining the number of outstanding shares of
        Common
        Stock, a Holder may rely on the number of outstanding shares of Common Stock
        as
        stated in the most recent of the following: (A) the Corporation’s most recent
        Form 10-QSB or Form 10-KSB, as the case may be, (B) a more recent public
        announcement by the Corporation or (C) a more recent notice by the Corporation
        or the Corporation’s transfer agent setting forth the number of shares of Common
        Stock outstanding.  Upon the written or oral request of a Holder, the
        Corporation shall within two Trading Days confirm orally and in writing to
        such
        Holder the number of shares of Common Stock then outstanding.  In any
        case, the number of outstanding shares of Common Stock shall be determined
        after
        giving effect to the conversion or exercise of securities of the Corporation,
        including the Preferred Stock, by such Holder or its Affiliates since the
        date
        as of which such number of outstanding shares of Common Stock was reported.
        The
“Beneficial Ownership Limitation” shall be 9.99% of the number of shares
        of the Common Stock outstanding immediately after giving effect to the issuance
        of shares of Common Stock issuable upon conversion of Preferred Stock held
        by
        the applicable Holder.  The provisions of this paragraph shall be
        construed and implemented in a manner otherwise than in strict conformity
        with the terms of this Section 6(c) to correct this paragraph (or any
        portion hereof) which may be defective or inconsistent with the intended
        Beneficial Ownership Limitation herein contained or to make changes or
        supplements necessary or desirable to properly give effect to such
        limitation. The limitations contained in this paragraph shall apply to a
        successor holder of Preferred Stock.

      

      
        
          
          

        

        
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      e)           Issuance
        Limitations.  Notwithstanding anything herein to the contrary, if
        the Corporation has not approved an Authorized Share Reverse Action, then
        the
        Corporation may not issue, upon conversion of the Preferred Stock pursuant
        to
        this Section 6, a number of shares of Common Stock which would in the aggregate
        exceed 51,204,843 shares of Common Stock (such number of shares, the
“Issuable Maximum”).  In such case, any Holder exercising its
        conversion rights pursuant to this Section 6 shall be entitled to a portion
        of
        the Issuable Maximum equal to the quotient obtained by dividing (x) the original
        Stated Value of such Holder’s Preferred Stock by (y) the aggregate Stated Value
        of all Preferred Stock issued on the Original Issue Date to all
        Holders.

      

      
        	
                 

              	
                f)

              	
                Mechanics
                  of Conversion

              

      

      

      i.           Delivery
        of Certificate Upon Conversion. Not later than three Trading Days after each
        Conversion Date (the “Share Delivery Date”), the Corporation shall
        deliver, or cause to be delivered, to the converting Holder a certificate
        or
        certificates which, on or after the Effective Date, shall be free of restrictive
        legends and trading restrictions (other than those which may then be required
        by
        the Purchase Agreement) representing the number of Conversion Shares being
        acquired upon the conversion of shares of Preferred Stock. On or after the
        Effective Date, the Corporation shall, upon request of such Holder, use its
        best
        efforts to deliver any certificate or certificates required to be delivered
        by
        the Corporation under Section 6 or Section 8 hereof electronically through
        the
        Depository Trust Company or another established clearing corporation performing
        similar functions. If in the case of any Notice of Conversion such certificate
        or certificates are not delivered to or as directed by the applicable Holder
        by
        the third Trading Day after the Conversion Date, the applicable Holder shall
        be
        entitled to elect to rescind such Conversion Notice by written notice to
        the
        Corporation at any time on or before its receipt of such certificate or
        certificates, in which event the Corporation shall promptly return to such
        Holder any original Preferred Stock certificate delivered to the Corporation
        and
        such Holder shall promptly return to the Corporation any Common Stock
        certificates representing the shares of Preferred Stock unsuccessfully tendered
        for conversion to the Corporation.

      
 

      

      

      

      

      
        
          
          

        

        
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      ii.           Obligation
        Absolute; Partial Liquidated Damages. The Corporation’s obligation to
        issue and deliver the Conversion Shares upon conversion of Preferred Stock
        in
        accordance with the terms hereof are absolute and unconditional, irrespective
        of
        any action or inaction by a Holder to enforce the same, any waiver or consent
        with respect to any provision hereof, the recovery of any judgment against
        any
        Person or any action to enforce the same, or any setoff, counterclaim,
        recoupment, limitation or termination, or any breach or alleged breach by
        such
        Holder or any other Person of any obligation to the Corporation or any violation
        or alleged violation of law by such Holder or any other person, and irrespective
        of any other circumstance which might otherwise limit such obligation of
        the
        Corporation to such Holder in connection with the issuance of such Conversion
        Shares; provided, however, that such delivery shall not operate as
        a waiver by the Corporation of any such action that the Corporation may have
        against such Holder.  In the event a Holder shall elect to convert any
        or all of the Stated Value of its Preferred Stock, the Corporation may not
        refuse conversion based on any claim that such Holder or any one associated
        or
        affiliated with such Holder has been engaged in any violation of law, agreement
        or for any other reason, unless an injunction from a court, on notice to
        Holder,
        restraining and/or enjoining conversion of all or part of the Preferred Stock
        of
        such Holder shall have been sought and obtained, and the Corporation posts
        a
        surety bond for the benefit of such Holder in the amount of 150% of the Stated
        Value of Preferred Stock which is subject to the injunction, which bond shall
        remain in effect until the completion of arbitration/litigation of the
        underlying dispute and the proceeds of which shall be payable to such Holder
        to
        the extent it obtains judgment.  In the absence of such injunction,
        the Corporation shall issue Conversion Shares and, if applicable, cash, upon
        a
        properly noticed conversion. If the Corporation fails to deliver to a Holder
        such certificate or certificates pursuant to Section 6(e)(i) on the second
        Trading Day after the Share Delivery Date applicable to such conversion,
        the
        Corporation shall pay to such Holder, in cash, as liquidated damages and
        not as
        a penalty, for each $1,000 of Stated Value of Preferred Stock being converted,
        $5 per Trading Day (increasing to $10 per Trading Day on the third Trading
        Day
        and increasing to $20 per Trading Day on the sixth Trading Day after such
        damages begin to accrue) for each Trading Day after such second Trading Day
        after the Share Delivery Date until such certificates are delivered. Nothing
        in
        this Section 6(3)(ii) shall limit a Holder’s right to pursue actual damages or
        declare a Triggering Event pursuant to Section 9 for the Corporation’s failure
        to deliver Conversion Shares within the period specified herein and such
        Holder
        shall have the right to pursue all remedies available to it hereunder, at
        law or
        in equity including, without limitation, a decree of specific performance
        and/or
        injunctive relief.  The Exercise of any such rights shall not
        prohibit a Holder from seeking to enforce damages pursuant to any other Section
        hereof or under applicable law.

      
 

      

      

      

      
        
          
          

        

        
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      iii.          Compensation
        for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. If the
        Corporation fails to deliver to a Holder the applicable certificate or
        certificates by the Share Delivery Date pursuant to Section 6(e)(i), and
        if
        after such Share Delivery Date such Holder is required by its brokerage firm
        to
        purchase (in an open market transaction or otherwise), or the Holder’s
        brokerage firm purchases, shares of Common Stock to deliver in satisfaction
        of a
        sale by such Holder of the Conversion Shares which such Holder was entitled
        to
        receive upon the conversion relating to such Share Delivery Date
        (a “Buy-In”), then the Corporation shall (A) pay in cash to such
        Holder (in addition to any other remedies available to or elected by such
        Holder) the amount by which (x) such Holder’s total purchase price (including
        any brokerage commissions) for the shares of Common Stock so purchased exceeds
        (y) the product of (1) the aggregate number of shares of Common Stock that
        such
        Holder was entitled to receive from the conversion at issue multiplied by
        (2)
        the actual sale price at which the sell order giving rise to such purchase
        obligation was executed (including any brokerage commissions) and (B) at
        the
        option of such Holder, either reissue (if surrendered) the shares of Preferred
        Stock equal to the number of shares of Preferred Stock submitted for conversion
        or deliver to such Holder the number of shares of Common Stock that would
        have
        been issued if the Corporation had timely complied with its delivery
        requirements under Section 6(e)(i). For example, if a Holder purchases shares
        of
        Common Stock having a total purchase price of $11,000 to cover a Buy-In with
        respect to an attempted conversion of shares of Preferred Stock with respect
        to
        which the actual sale price (including any brokerage commissions) giving
        rise to
        such purchase obligation was a total of $10,000 under clause (A) of the
        immediately preceding sentence, the Corporation shall be required to pay
        such
        Holder $1,000. The Holder shall provide the Corporation written notice
        indicating the amounts payable to such Holder in respect of the Buy-In and,
        upon
        request of the Corporation, evidence of the amount of such loss. Nothing
        herein
        shall limit a Holder’s right to pursue any other remedies available to it
        hereunder, at law or in equity including, without limitation, a decree of
        specific performance and/or injunctive relief with respect to the Corporation’s
        failure to timely deliver certificates representing shares of Common Stock
        upon
        conversion of the shares of Preferred Stock as required pursuant to the terms
        hereof.

      
 

      

      

      

      

      
        
          
          

        

        
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      iv.           Reservation
        of Shares Issuable Upon Conversion. Until an Authorized Share Reverse
        Action, the Corporation covenants that it will at all times reserve and keep
        available out of its authorized and unissued shares of Common Stock for the
        sole
        purpose of issuance upon conversion of the Preferred Stock, free from preemptive
        rights or any other actual contingent purchase rights of Persons other than
        the
        Holders of the Preferred Stock, an amount equal to the Issuable Maximum.
        Following an Authorized Share Reverse Action, the Corporation covenants that
        it
        will at all times reserve and keep available out of its authorized and unissued
        shares of Common Stock for the sole purpose of issuance upon conversion of
        the
        Preferred Stock, free from preemptive rights or any other actual contingent
        purchase rights of Persons other than the Holders of the Preferred Stock,
        not
        less than such aggregate number of shares of the Common Stock as shall (subject
        to the terms and conditions in the Purchase Agreement) be issuable (taking
        into
        account the adjustments of Section 7) upon the conversion of all
        outstanding shares of Preferred Stock.  The Corporation covenants that
        all shares of Common Stock that shall be so issuable shall, upon issue, be
        duly
        authorized, validly issued, fully paid and nonassessable and, if the Conversion
        Shares Registration Statement is then effective under the Securities Act,
        shall
        be registered for public sale in accordance with such Conversion Shares
        Registration Statement.

      

      v.           Fractional
        Shares. No fractional shares or scrip representing fractional shares shall
        be issued upon the conversion of the Preferred Stock.   As to any
        fraction of a share which a Holder would otherwise be entitled to purchase
        upon
        such conversion, the Corporation shall at its election, either pay a cash
        adjustment in respect of such final fraction in an amount equal to such fraction
        multiplied by the Conversion Price or round up to the next whole
        share.

      

      vi.           Transfer
        Taxes.  The issuance of certificates for shares of the Common
        Stock on conversion of this Preferred Stock shall be made without charge
        to any
        Holder for any documentary stamp or similar taxes that may be payable in
        respect
        of the issue or delivery of such certificates, provided that the Corporation
        shall not be required to pay any tax that may be payable in respect of any
        transfer involved in the issuance and delivery of any such certificate upon
        conversion in a name other than that of the Holders of such shares of Preferred
        Stock and the Corporation shall not be required to issue or deliver such
        certificates unless or until the Person or Persons requesting the issuance
        thereof shall have paid to the Corporation the amount of such tax or shall
        have
        established to the satisfaction of the Corporation that such tax has been
        paid.

      

      Section
        7.  Certain Adjustments.

      

      a)           Stock
        Dividends and Stock Splits.  If the Corporation, at any
        time while this Preferred Stock is outstanding: (A) pays a stock dividend
        or
        otherwise makes a distribution or distributions payable in shares of Common
        Stock on shares of Common Stock or any other Common Stock Equivalents (which,
        for avoidance of doubt, shall not include any shares of Common Stock issued
        by
        the Corporation upon conversion of, or payment of a dividend on, this Preferred
        Stock); (B) subdivides outstanding shares of Common Stock into a larger number
        of shares; (C) combines (including by way of a reverse stock split) outstanding
        shares of Common Stock into a smaller number of shares; or (D) issues, in
        the
        event of a reclassification of shares of the Common Stock, any shares of
        capital
        stock of the Corporation, then the Conversion Price shall be multiplied by
        a
        fraction of which the numerator shall be the number of shares of Common Stock
        (excluding any treasury shares of the Corporation) outstanding immediately
        before such event and of which the denominator shall be the number of shares
        of
        Common Stock outstanding immediately after such event.  Any adjustment
        made pursuant to this Section 7(a) shall become effective immediately after
        the
        record date for the determination of stockholders entitled to receive such
        dividend or distribution and shall become effective immediately after the
        effective date in the case of a subdivision, combination or
        re-classification.

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      b)           Subsequent
        Equity Sales.  If, at any time prior to the Preferred Rights
        Reduction Date,  the Corporation or any Subsidiary sells or grants any
        option to purchase or sells or grants any right to reprice its securities,
        or
        otherwise disposes of or issues (or announces any sale, grant or any option
        to
        purchase or other disposition) any Common Stock or Common Stock Equivalents
        entitling any Person to acquire shares of Common Stock at an effective price
        per
        share that is lower than the then Conversion Price (such lower price, the
        “Base Conversion Price” and such issuances collectively, a “Dilutive
        Issuance”) (if the holder of the Common Stock or Common Stock
        Equivalents so issued shall at any time, whether by operation of purchase
        price
        adjustments, reset provisions, floating conversion, exercise or exchange
        prices
        or otherwise, or due to warrants, options or rights per share which are issued
        in connection with such issuance, be entitled to receive shares of Common
        Stock
        at an effective price per share that is lower than the Conversion Price,
        such
        issuance shall be deemed to have occurred for less than the Conversion Price
        on
        such date of the Dilutive Issuance), then the Conversion Price shall be reduced
        to equal the Base Conversion Price.  Notwithstanding the foregoing, no
        adjustment will be made under this Section 7(b) in respect of an Exempt Issuance
        or with respect to any Dilutive Issuance occurring after the Preferred Rights
        Reduction Date.  If the Corporation enters into a Variable Rate
        Transaction, despite the prohibition set forth in the Purchase Agreement,
        the
        Corporation shall be deemed to have issued Common Stock or Common Stock
        Equivalents at the lowest possible conversion price at which such securities
        may
        be converted or exercised.  The Corporation shall notify the Holders
        in writing, no later than the Business Day following the issuance of any
        Common
        Stock or Common Stock Equivalents subject to this Section 7(b), indicating
        therein the applicable issuance price, or applicable reset price, exchange
        price, conversion price and other pricing terms (such notice, the “Dilutive
        Issuance Notice”). For purposes of clarification, whether or not the
        Corporation provides a Dilutive Issuance Notice pursuant to this Section
        7(b),
        upon the occurrence of any Dilutive Issuance, the Holders are entitled to
        receive a number of Conversion Shares based upon the Base Conversion Price
        on or
        after the date of such Dilutive Issuance, regardless of whether a Holder
        accurately refers to the Base Conversion Price in the Notice of Conversion.
        The
        provisions of this Section 7(b) shall terminate on the Preferred Rights
        Reduction Date and shall not thereafter be available to any Holder.

      
 

      

      

      
        
          
          

        

        
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      c)           Subsequent
        Rights Offerings.  If the Corporation, at any time prior to
        the Preferred Rights Reduction Date, shall issue rights, options or warrants
        to
        all holders of Common Stock (and not to Holders) entitling them to subscribe
        for
        or purchase shares of Common Stock at a price per share that is lower than
        the
        VWAP on the record date referenced below, then the Conversion Price shall
        be
        multiplied by a fraction of which the denominator shall be the number of
        shares of the Common Stock outstanding on the date of issuance of such rights
        or
        warrants plus the number of additional shares of Common Stock offered for
        subscription or purchase, and of which the numerator shall be the number
        of
        shares of the Common Stock outstanding on the date of issuance of such rights
        or
        warrants plus the number of shares which the aggregate offering price of
        the
        total number of shares so offered (assuming delivery to the Corporation in
        full
        of all consideration payable upon exercise of such rights, options or warrants)
        would purchase at such VWAP.  Such adjustment shall be made whenever
        such rights or warrants are issued prior to the Preferred Rights Reduction
        Date,
        and shall become effective immediately after the record date for the
        determination of stockholders entitled to receive such rights, options or
        warrants.  The provisions of this Section 7(c) shall terminate on
        the Preferred Rights Reduction Date and shall not thereafter be available
        to any
        Holder.

       

      d)           Pro
        Rata Distributions. If the Corporation, at any time prior to the
        Preferred Rights Reduction Date, distributes to all holders of Common Stock
        (and
        not to Holders) evidences of its indebtedness or assets (including cash and
        cash
        dividends) or rights or warrants to subscribe for or purchase any security
        (other than Common Stock, which shall be subject to Section 7(b)), then in
        each
        such case the Conversion Price shall be adjusted by multiplying such Conversion
        Price in effect immediately prior to the record date fixed for determination
        of
        stockholders entitled to receive such distribution by a fraction of which
        the
        denominator shall be the VWAP determined as of the record date mentioned
        above,
        and of which the numerator shall be such VWAP on such record date less the
        then
        fair market value at such record date of the portion of such assets, evidence
        of
        indebtedness or rights or warrants so distributed applicable to one outstanding
        share of the Common Stock as determined by the Board of Directors of the
        Corporation in good faith. In either case the adjustments shall be described
        in
        a statement delivered to the Holders describing the portion of assets or
        evidences of indebtedness so distributed or such subscription rights applicable
        to one share of Common Stock. Such adjustment shall be made whenever any
        such
        distribution is made prior to the Preferred Rights Reduction Date and shall
        become effective immediately after the record date mentioned
        above.    The provisions of this Section 7(d) shall
        terminate on the Preferred Rights Reduction Date and shall not thereafter
        be
        available to any Holder.

      

      e)           Fundamental
        Transaction. If, at any time while this Preferred Stock is outstanding, (A)
        the Corporation effects any merger or consolidation of the Corporation with
        or
        into another Person, (B) the Corporation effects any sale of all or
        substantially all of its assets in one transaction or a series of related
        transactions, (C) any tender offer or exchange offer (whether by the Corporation
        or another Person) is completed pursuant to which holders of Common Stock
        are
        permitted to tender or exchange their shares for other securities, cash or
        property, or (D) the Corporation effects any reclassification of the Common
        Stock or any compulsory share exchange pursuant to which the Common Stock
        is
        effectively converted into or exchanged for other securities, cash or property
        (in any such case, a “Fundamental Transaction”), then, upon any
        subsequent conversion of this Preferred Stock, the Holders shall have the
        right
        to receive, for each Conversion Share that would have been issuable upon
        such
        conversion immediately prior to the occurrence of such Fundamental Transaction,
        the same kind and amount of securities, cash or property as it would have
        been
        entitled to receive upon the occurrence of such Fundamental Transaction if
        it
        had been, immediately prior to such Fundamental Transaction, the holder of
        one
        share of Common Stock (the “Alternate Consideration”).  For
        purposes of any such conversion, the determination of the Conversion Price
        shall
        be appropriately adjusted to apply to such Alternate Consideration based
        on the
        amount of Alternate Consideration issuable in respect of one share of Common
        Stock in such Fundamental Transaction, and the Corporation shall apportion
        the
        Conversion Price among the Alternate Consideration in a reasonable manner
        reflecting the relative value of any different components of the Alternate
        Consideration.  If holders of Common Stock are given any choice as to
        the securities, cash or property to be received in a Fundamental Transaction,
        then the Holders shall be given the same choice as to the Alternate
        Consideration it receives upon any conversion of this Preferred Stock following
        such Fundamental Transaction.  To the extent necessary to effectuate
        the foregoing provisions, any successor to the Corporation or surviving entity
        in such Fundamental Transaction shall file a new Certificate of Designation
        with
        the same terms and conditions and issue to the Holders new preferred stock
        consistent with the foregoing provisions and evidencing the Holders’ right to
        convert such preferred stock into Alternate Consideration. The terms of any
        agreement pursuant to which a Fundamental Transaction is effected shall include
        terms requiring any such successor or surviving entity to comply with the
        provisions of this Section 7(e) and insuring that this Preferred Stock (or
        any
        such replacement security) will be similarly adjusted upon any subsequent
        transaction analogous to a Fundamental Transaction.

      

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      f)       
            Calculations.  All calculations under
        this Section 7 shall be made to the nearest cent or the nearest 1/100th of
        a
        share, as the case may be.  For purposes of this Section 7, the number
        of shares of Common Stock deemed to be issued and outstanding as of a given
        date
        shall be the sum of the number of shares of Common Stock (excluding any treasury
        shares of the Corporation) issued and outstanding.

      

      g)           Notice
        to the Holders.

      

      i.           Adjustment
        to Conversion Price.  Whenever the Conversion Price is adjusted
        pursuant to any provision of this Section 7, the Corporation shall promptly
        deliver to each Holder a notice setting forth the Conversion Price after
        such
        adjustment and setting forth a brief statement of the facts requiring such
        adjustment.

      
 

      ii.           Notice
        to Allow Conversion by Holder.  If (A) the Corporation shall
        declare a dividend (or any other distribution in whatever form) on the Common
        Stock, (B) the Corporation shall declare a special nonrecurring cash dividend
        on
        or a redemption of the Common Stock, (C) the Corporation shall authorize
        the
        granting to all holders of the Common Stock of rights or warrants to subscribe
        for or purchase any shares of capital stock of any class or of any rights,
        (D)
        the approval of any stockholders of the Corporation shall be required in
        connection with any reclassification of the Common Stock, any consolidation
        or
        merger to which the Corporation is a party, any sale or transfer of all or
        substantially all of the assets of the Corporation, of any compulsory share
        exchange whereby the Common Stock is converted into other securities, cash
        or
        property or (E) the Corporation shall authorize the voluntary or involuntary
        dissolution, liquidation or winding up of the affairs of the Corporation,
        then,
        in each case, the Corporation shall cause to be filed at each office or agency
        maintained for the purpose of conversion of this Preferred Stock, and shall
        cause to be delivered to each Holder at its last address as it shall appear
        upon
        the stock books of the Corporation, at least 20 calendar days prior to the
        applicable record or effective date hereinafter specified, a notice stating
        (x)
        the date on which a record is to be taken for the purpose of such dividend,
        distribution, redemption, rights or warrants, or if a record is not to be
        taken,
        the date as of which the holders of the Common Stock of record to be
        entitled to such dividend, distributions, redemption, rights or warrants
        are to
        be determined or (y) the date on which such reclassification, consolidation,
        merger, sale, transfer or share exchange is expected to become effective
        or
        close, and the date as of which it is expected that holders of the Common
        Stock of record shall be entitled to exchange their shares of the Common
        Stock
        for securities, cash or other property deliverable upon such reclassification,
        consolidation, merger, sale, transfer or share exchange, provided that the
        failure to deliver such notice or any defect therein or in the delivery thereof
        shall not affect the validity of the corporate action required to be specified
        in such notice.  The Holder is entitled to convert the Conversion
        Amount of this Preferred Stock (or any part hereof) during the 20-day period
        commencing on the date of such notice through the effective date of the event
        triggering such notice.

      
 

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      Section
        8. Forced Conversion.  Notwithstanding anything herein
        to the contrary, if after the Effective Date (i) the VWAP for each of any
        22
        consecutive Trading Day period, which 22 consecutive Trading Day period shall
        have commenced only after the later of the Shareholder Approval Date and
        the
        Effective Date (“Threshold Period”), exceeds $0.05, subject to adjustment for
        reverse and forward stock splits, stock dividends, stock combinations and
        other
        similar transactions of the Common Stock that occur after the Original Issue
        Date and (ii) the volume for each Trading Day during any Threshold Period
        exceeds that number of shares of Common Stock, per Trading Day, which is
        one
        percent (1%)  of then issued and outstanding shares of Common Stock, the
        Corporation may, within 1 Trading Day after the end of any such Threshold
        Period, deliver a written notice to all Holders (a “Forced Conversion Notice”
and the date such notice is delivered to all Holders, the “Forced Conversion
        Notice Date”) to cause each Holder to convert all or part of such Holder’s
        Preferred Stock (as specified in such Forced Conversion Notice) plus all
        accrued
        but unpaid dividends thereon and all liquidated damages and other amounts
        due in
        respect of the Preferred Stock pursuant to Section 6, it being agreed that
        the
“Conversion Date” for purposes of Section 6 shall be deemed to occur on the
        third Trading Day following the Forced Conversion Notice Date (such third
        Trading Day, the “Forced Conversion Date”).  The Corporation may not
        deliver a Forced Conversion Notice, and any Forced Conversion Notice delivered
        by the Corporation shall not be effective, unless all of the Equity Conditions
        have been met on each Trading Day during the applicable Threshold Period
        through
        and including the later of the Forced Conversion Date and the Trading Day
        after
        the date that the Conversion Shares issuable pursuant to such conversion
        are
        actually delivered to the Holders pursuant to the Forced Conversion
        Notice.   Any Forced Conversion Notices shall be applied ratably
        to all of the Holders based on each Holder’s initial purchases of Preferred
        Stock hereunder, provided that any voluntary conversions by a Holder shall
        be
        applied against such Holder’s pro rata allocation, thereby decreasing the
        aggregate amount forcibly converted hereunder if less than all shares of
        the
        Preferred Stock are forcibly converted.  For purposes of
        clarification, a Forced Conversion shall be subject to all of the provisions
        of
        Section 6, including, without limitation, the provisions (i) requiring payment
        of liquidated damages and limitations on conversions; (ii) prohibiting a
        conversion of any portion of the Preferred Stock, to the extent that, after
        giving effect to the conversion, such Holder (together with such Holder’s
        Affiliates, and any other person or entity acting as a group together with
        such
        Holder or any of such Holder’s Affiliates) would beneficially own in excess of
        the Beneficial Ownership Limitation; and, (iii) dictating that the redemption,
        liquidation, consent, dividend, and other rights and preferences of Holders
        of
        the Preferred Shares (other than voting rights, which shall not be affected
        by
        the automatic conversion) shall be eliminated or limited as specifically
        set
        forth herein upon a conversion up to the Holder’s Beneficial Ownership
        Limitation.

      

      

      

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      Section
        9. Redemption Upon Triggering Events.

      
 

      a)           “Triggering
        Event” means any one or more of the following events (whatever the reason
        and whether it shall be voluntary or involuntary or effected by operation
        of law
        or pursuant to any judgment, decree or order of any court, or any order,
        rule or
        regulation of any administrative or governmental body):

      

      i.            the
        failure of the initial Conversion Shares Registration Statement to be declared
        effective by the Commission on or prior to the 180th day after
        the
        Original Issue Date; provided that to the extent that SEC Guidance (as defined
        in the Registration Rights Agreement) does not permit the registration of
        all or
        part of the Initial Shares (as defined in the Registration Rights Agreement),
        such failure shall not be a Triggering Event hereunder;

      
 

      ii.           if,
        during the Effectiveness Period, the effectiveness of the Conversion Shares
        Registration Statement lapses for more than an aggregate of 60 calendar days
        (which need not be consecutive calendar days) during any 12 month period,
        or the
        Holders shall not otherwise be permitted to resell Registrable Securities
        under
        the Conversion Shares Registration Statement for more than an aggregate of
        60
        calendar days (which need not be consecutive calendar days) during any 12
        month
        period;

      

      iii.           the
        Corporation shall fail to deliver certificates representing Conversion Shares
        issuable upon a conversion hereunder that comply with the provisions hereof
        prior to the fifth Trading Day after such shares are required to be delivered
        hereunder, or the Corporation shall provide written notice to any Holder,
        including by way of public announcement, at any time, of its intention not
        to
        comply with requests for conversion of any shares of Preferred Stock in
        accordance with the terms hereof;

      

      iv.          one
        of the Events (as defined in the Registration Rights Agreement) described
        in
        subsections (i), (ii) or (iii) of Section 2(b) of the Registration Rights
        Agreement shall not have been cured to the satisfaction of the Holders prior
        to
        the expiration of 30 calendar days from the Event Date (as defined in the
        Registration Rights Agreement) relating thereto (other than an Event resulting
        from a failure of a Conversion Shares Registration Statement to be declared
        effective by the Commission on or prior to the 180th day after the Original
        Issue Date, which shall be covered by Section 9(a)(i));

      

      

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      v.           the
        Corporation shall fail for any reason to pay in full the amount of cash due
        pursuant to a Buy-In within five calendar days after notice therefor is
        delivered hereunder or shall fail to pay all amounts owed on account of any
        Event (as defined in the Registration Rights Agreement) within five days
        of the
        date due;

      

      vi.          the
        Corporation shall fail to have available a sufficient number of authorized
        and
        unreserved shares of Common Stock to issue to such Holder upon a conversion
        hereunder;

      

      vii.         unless
        specifically addressed elsewhere in this Certificate of Designation as a
        Triggering Event, the Corporation shall fail to observe or perform any other
        covenant, agreement or warranty contained in, or otherwise commit any breach
        of
        the Transaction Documents, and such failure or breach shall not, if subject
        to
        the possibility of a cure by the Corporation, have been cured within 30 calendar
        days after the date on which written notice of such failure or breach shall
        have
        been delivered;

      

      viii.        the
        Corporation shall redeem more than a de minimis number
        of  Junior Securities other than as to repurchases of Common Stock or
        Common Stock Equivalents from departing officers and directors of the
        Corporation, provided that, while any of the Preferred Stock remains
        outstanding, such repurchases shall not exceed an aggregate of $100,000 from
        all
        officers and directors;

      

      ix.          the
        Corporation shall be party to a Change of Control Transaction;

      

      x.           there
        shall have occurred a Bankruptcy Event;

      

      xi.          the
        Common Stock shall fail to be listed or quoted for trading on a Trading Market
        for more than five Trading Days, which need not be consecutive Trading Days;
        or

      

      xii.         any
        monetary judgment, writ or similar final process shall be entered or filed
        against the Corporation, any subsidiary or any of their respective property
        or
        other assets for greater than $100,000, and such judgment, writ or similar
        final
        process shall remain unvacated, unbonded or unstayed for a period of 45 calendar
        days.

      

      b)           If
        a Triggering Event occurs prior to the Preferred Rights Reduction Date, each
        Holder shall (in addition to all other rights it may have hereunder or under
        applicable law) have the right, exercisable at the sole option of such Holder,
        to require the Corporation to either (i) redeem all of the Preferred Stock
        then
        held by such Holder for a redemption price, in shares of Common Stock, equal
        to
        a number of shares of Common Stock equal to the Triggering Redemption Amount
        divided by 75% of the average of the 10 VWAPs immediately prior to the date
        of
        election hereunder or (b) increase the dividend rate on all of the outstanding
        Preferred Stock held by such Holder to 18% per annum thereafter.  The
        Triggering Redemption Amount, if in shares, shall be issued within five Trading
        Days of the date on which the notice for the payment therefor is provided
        by a
        Holder (the “Triggering Redemption Payment Date”).  If the
        Corporation fails to pay in full the Triggering Redemption Amount hereunder
        on
        the date such amount is due in accordance with this Section, the Corporation
        will pay interest thereon at a rate equal to the lesser of 18% per annum
        or the
        maximum rate permitted by applicable law, accruing daily from such date until
        the Triggering Redemption Amount, plus all such interest thereon, is paid
        in
        full.  For purposes of this Section, a share of Preferred Stock is
        outstanding until such date as the applicable Holder shall have received
        Conversion Shares upon a conversion (or attempted conversion) thereof that
        meets
        the requirements hereof or has been paid the Triggering Redemption Amount
        as set
        forth herein.    The redemption rights set forth in this
        Section 9 shall terminate on the Preferred Rights Reduction Date and shall
        not thereafter apply to any Holder.

      

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      Section
        10. Negative Covenants.  Prior to the Preferred Rights
        Reduction Date, unless the holders of at least 51% of the Stated Value of
        the
        then outstanding shares of Preferred Stock (except with respect to clause
        (c),
        below, which shall require 100% consent of the Holders) shall have otherwise
        given prior written consent, the Corporation shall not, and shall not permit
        any
        of its subsidiaries (whether or not a Subsidiary on the Original Issue Date)
        to,
        directly or indirectly:

      

      a)           other
        than Permitted Indebtedness, enter into, create, incur, assume, guarantee
        or
        suffer to exist any indebtedness for borrowed money of any kind, including
        but
        not limited to, a guarantee, on or with respect to any of its property or
        assets
        now owned or hereafter acquired or any interest therein or any income or
        profits
        therefrom;

      
 

      b)           other
        than Permitted Liens, enter into, create, incur, assume or suffer to exist
        any
        Liens of any kind, on or with respect to any of its property or assets now
        owned
        or hereafter acquired or any interest therein or any income or profits
        therefrom;

      

      c)           amend
        its certificate of incorporation, bylaws, this Certificate of Designation
        or
        other charter documents so as to materially and adversely affect any rights,
        preferences or power of any Holder;

      

      d)           redeem,
        repay, repurchase or offer to repay, repurchase or otherwise acquire more
        than a
de minimis number of shares of its Common Stock, Common Stock
        Equivalents or Junior Securities, except for the Conversion Shares to the
        extent
        permitted or required under the Transaction Documents or as otherwise permitted
        by the Transaction Documents;

      

      e)           authorize
        or create any class of stock ranking as to dividends, redemption or distribution
        of assets upon a Liquidation (as defined in Section 5) senior to or otherwise
        pari passu with the Preferred Stock;

      

      f)       
            increase the number of authorized shares of Preferred
        Stock;

      

      

      

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      g)           pay
        cash dividends or distributions on Junior Securities of the Corporation nor
        shall any monies be set aside for or applied to the purchase or redemption
        (through a sinking fund or otherwise) of any Junior Securities or shares
        pari passu with the Preferred Stock; or

      

      h)           enter
        into any agreement or understanding with respect to any of the
        foregoing.

      

      The
        provisions of this Section 10 shall terminate on the Preferred Rights
        Reduction Date and shall not thereafter apply to any Holder, with the exception
        of Subsection c) of this Section 10, which shall survive and in all respects
        persist even after the Preferred Rights Reduction Date.

      

      Section
        11. Miscellaneous.

      

      a)           Notices.  Any
        and all notices or other communications or deliveries to be provided by the
        Holders hereunder including, without limitation, any Notice of Conversion,
        shall
        be in writing and delivered personally, by facsimile, or sent by a nationally
        recognized overnight courier service, addressed to the Corporation, at the
        address set forth above, facsimile number 866-433-4352, Attention:
Lew Jaffe, or such other facsimile number or address as
        the Corporation
        may specify for such purposes by notice to the Holders delivered in accordance
        with this Section 11.  Any and all notices or other communications or
        deliveries to be provided by the Corporation hereunder shall be in writing
        and
        delivered personally, by facsimile, or sent by a nationally recognized overnight
        courier service addressed to each Holder at the facsimile number or address
        of
        such Holder appearing on the books of the Corporation, or if no such facsimile
        number or address appears on the books of the Corporation, at the principal
        place of business of the Holders.  Any notice or other communication
        or deliveries hereunder shall be deemed given and effective on the earliest
        of
        (i) the date of transmission, if such notice or communication is delivered
        via
        facsimile at the facsimile number specified in this Section 11 prior to 5:30
        p.m. (New York City time) on any date, (ii) the date immediately following
        the
        date of transmission, if such notice or communication is delivered via facsimile
        at the facsimile number specified in this Section 11 between 5:30 p.m. and
        11:59
        p.m. (New York City time) on any date, (iii) the second Business Day following
        the date of mailing, if sent by nationally recognized overnight courier service,
        or (iv) upon actual receipt by the party to whom such notice is required
        to be
        given.

      
 

      b)           Absolute
        Obligation. Except as expressly provided herein, no provision of this
        Certificate of Designation shall alter or impair the obligation of the
        Corporation, which is absolute and unconditional, to pay liquidated damages,
        accrued dividends and accrued interest, as applicable, on the shares of
        Preferred Stock at the time, place, and rate, and in the coin or currency,
        herein prescribed.

      
 

      c)           Lost
        or Mutilated Preferred Stock Certificate.  If a Holder’s Preferred
        Stock certificate shall be mutilated, lost, stolen or destroyed, the Corporation
        shall execute and deliver, in exchange and substitution for and upon
        cancellation of a mutilated certificate, or in lieu of or in substitution
        for a
        lost, stolen or destroyed certificate, a new certificate for the shares of
        Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt
        of evidence of such loss, theft or destruction of such certificate, and of
        the
        ownership hereof reasonably satisfactory to the Corporation.

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      d)           Governing
        Law.  All questions concerning the construction, validity,
        enforcement and interpretation of this Certificate of Designation shall be
        governed by and construed and enforced in accordance with the internal laws
        of
        the State of Nevada without regard to the principles of conflict of laws
        thereof.  Each party agrees that all legal proceedings concerning the
        interpretation, enforcement and defense of the transactions contemplated
        by any
        of the Transaction Documents (whether brought against a party hereto or its
        respective Affiliates, directors, officers, shareholders, employees or agents)
        shall be commenced in the state and federal courts sitting in the City of
        New
        York, Borough of Manhattan (the “New York Courts”).  Each party
        hereto hereby irrevocably submits to the exclusive jurisdiction of the New
        York
        Courts for the adjudication of any dispute hereunder or in connection herewith
        or with any transaction contemplated hereby or discussed herein (including
        with
        respect to the enforcement of any of the Transaction Documents), 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 such New
        York
        Courts, or such New York Courts are improper or inconvenient venue for such
        proceeding.  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 via registered or certified mail or
        overnight delivery (with evidence of delivery) to such party at the address
        in
        effect for notices to it under this Certificate of Designation 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 other manner permitted by applicable
        law. Each party hereto hereby irrevocably waives, to the fullest extent
        permitted by applicable law, any and all right to trial by jury in any legal
        proceeding arising out of or relating to this Certificate of Designation
        or the
        transactions contemplated hereby. If either party shall commence an action
        or
        proceeding to enforce any provisions of this Certificate of Designation,
        then
        the prevailing party in such action or proceeding shall be reimbursed by
        the
        other party for its attorneys’ fees and other costs and expenses incurred in the
        investigation, preparation and prosecution of such action or
        proceeding.

      
 

      e)           Waiver.  Any
        waiver by the Corporation or a Holder of a breach of any provision of this
        Certificate of Designation shall not operate as or be construed to be a waiver
        of any other breach of such provision or of any breach of any other provision
        of
        this Certificate of Designation or a waiver by any other Holders.  The
        failure of the Corporation or a Holder to insist upon strict adherence to
        any term of this Certificate of Designation on one or more occasions shall
        not be considered a waiver or deprive that party (or any other Holder) of
        the
        right thereafter to insist upon strict adherence to that term or any other
        term
        of this Certificate of Designation.  Any waiver by the Corporation or
        a Holder must be in writing.

      
 

      f)           Severability.  If
        any provision of this Certificate of Designation is invalid, illegal or
        unenforceable, the balance of this Certificate of Designation shall remain
        in
        effect, and if any provision is inapplicable to any Person or circumstance,
        it
        shall nevertheless remain applicable to all other Persons and
        circumstances.  If it shall be found that any interest or other amount
        deemed interest due hereunder violates the applicable law governing usury,
        the applicable rate of interest due hereunder shall automatically be lowered
        to
        equal the maximum rate of interest permitted under applicable law.

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      g)           Next
        Business Day.  Whenever any payment or other obligation hereunder
        shall be due on a day other than a Business Day, such payment shall be made
        on
        the next succeeding Business Day.

      

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

      

      i)           Status
        of Converted or Redeemed Preferred Stock.  If any shares of
        Preferred Stock shall be converted, redeemed or reacquired by the Corporation,
        such shares shall resume the status of authorized but unissued shares of
        preferred stock and shall no longer be designated as Series C Convertible
        Preferred Stock.

      

      

      *********************

      

      

      RESOLVED,
        FURTHER, that the Chairman, the chief executive officer, president or any
        vice-president of the Corporation be and they hereby are authorized and
        directed to prepare and file a Certificate of Designation of Preferences,
        Rights, and Limitations in accordance with the foregoing resolution and the
        provisions of Nevada law.

      

      IN
        WITNESS WHEREOF, the undersigned has executed this Certificate this ___ day
        of
        July 2007.

      

      

      
        	 	
                __________________________________________

                Name:  LEWIS
                  JAFFE

                Title:  Chief
                  Executive Officer/President

                 

              

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
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      ANNEX
        A

      

      NOTICE
        OF
        CONVERSION

      

      (TO
        BE
        EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF PREFERRED
        STOCK)

      

      The
        undersigned hereby elects to convert the number of shares of  Series C
        Convertible Preferred Stock indicated below into shares of common stock,
        par
        value $0.001 per share (the “Common Stock”), of Oxford Media, Inc., a
        Nevada corporation (the “Corporation”), according to the conditions
        hereof, as of the date written below. If shares of Common Stock are to be
        issued
        in the name of a Person other than the undersigned, the undersigned will
        pay all
        transfer taxes payable with respect thereto and is delivering herewith such
        certificates and opinions as may be required by the Corporation in accordance
        with the Purchase Agreement. No fee will be charged to the Holders for any
        conversion, except for any such transfer taxes.

      

      Conversion
        calculations:

      

      Date
        to
        Effect Conversion: _____________________________________________

      

      Number
        of
        shares of Preferred Stock owned prior to Conversion:
        _______________

      

      Number
        of
        shares of Preferred Stock to be Converted: ________________________

      

      Stated
        Value of shares of Preferred Stock to be Converted:
        ____________________

      

      Number
        of
        shares of Common Stock to be Issued: ___________________________

      

      Applicable
        Conversion Price:____________________________________________

      

      Number
        of
        shares of Preferred Stock subsequent to Conversion:
        ________________

      

      Address
        for Delivery: ______________________

      or

      DWAC
        Instructions:

      Broker
        no: _________

      Account
        no: ___________

      

      
        	 	
                [HOLDER]

              
	 	 
	 	
                By:___________________________________

              
	 	
                Name:

              
	 	
                Title:

              

      

       

       

       

      
 

      24

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