Document:

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                                                                  EXHIBIT 10.10

                MANUFACTURING, SUPPLY AND DISTRIBUTION AGREEMENT
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         THIS AGREEMENT (hereinafter "Agreement") is entered into as of the
Effective Date by and between Gebauer Medizintechnik GmbH., a German
corporation, (hereinafter "Gebauer"), and VisiJet, Inc., an United States
Delaware corporation (hereinafter "VisiJet"), and will come into power and be a
binding agreement upon the Effective Date set forth in Section 1.8 of this
Agreement.

         WHEREAS, subject to terms and conditions described in this Agreement,
VisiJet desires to be appointed an exclusive distributor of Gebauer to purchase,
market and sell certain products manufactured by Gebauer, and Gebauer is willing
and able to manufacture and supply such products to VisiJet; and

         WHEREAS, in exchange for such appointment and the valuable prior
investments made by Gebauer, VisiJet is willing to pay Gebauer consideration in
the form of cash and stock, as set forth in Section 2.1 hereof,

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, VisiJet and Gebauer agree as
follows:

1. DEFINITIONS

         The following terms shall have the meaning specified in this Section:

         1.1      "Accessories" shall mean the individual Product components set
                  forth in Schedule A

         1.2      "Affiliate" shall mean corporations, partnerships or other
                  business entities, which, directly or indirectly are
                  controlled by, control, or are under common control with a
                  party to this Agreement.

         1.3      "Annual Minimum" shall be defined in Schedule C hereafter.

         1.4      "Annual Forecast" shall mean a non-binding production planning
                  forecast of VisiJet's estimated requirements for Products,
                  including both estimated quantities and delivery dates, during
                  a specified twelve (12) month period.

         1.5      "Business Day" shall mean every day with the exception of
                  Saturday, Sunday or national holidays in the United States or
                  Germany.

         1.6      "CE" shall mean an abbreviation of a French phrase "Conformite
                  Europeene". The marking indicates that the manufacturer has
                  conformed with all the obligations required by legislation.

         1.7      "Confidential Information" shall mean the terms of this
                  Agreement and any information of a confidential and
                  proprietary nature disclosed by either party to the other
                  party in connection with this Agreement and identified in
                  writing as confidential and

*** CERTAIN INFORMATION IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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                  proprietary, including, but not limited to, technical,
                  financial or commercial data, business plans and other
                  competitively sensitive information.

         1.8      "Effective Date" is the date by which each party has fulfilled
                  its respective obligations at the closing, as set forth in
                  Section 18.10 hereof.

         1.9      "FDA" shall mean the United States Food and Drug
                  Administration.

         1.10     "Firm Orders" shall mean irrevocable, written purchase orders
                  for Products which specify the (i) Product(s), by SKU, as
                  defined in Schedule A, (ii) quantity to be delivered, (iii)
                  ship to location, (iv) designated carrier and (v) requested
                  delivery date.

         1.11     "Product" and "Products" shall mean the EpiTome System and the
                  LasiTome systems as well as the parts, disposables and
                  accessories specifically associated with and intended for the
                  aforementioned systems as set forth in the schedule A.

         1.12     "Master Artwork Text" shall mean the specific text for all
                  items of labeling, including but not limited to all packaging,
                  labels and markings to be provided by VisiJet and utilized by
                  Gebauer in connection with the manufacture of the Product.

         1.13     "Non-Conforming Product" shall mean any Product which does not
                  conform to the Specifications, QSRs (Quality Service
                  Requirements) or other requirements of this Agreement at the
                  time of its manufacture.

         1.14     "Specifications" shall mean the descriptions, criteria,
                  standards and other requirements set forth in the attached
                  Schedule A.

         1.15     "Systems" shall mean the EpiTome System and the LasiTome
                  System more fully described in Schedule A.

         1.16     "Term" shall have the meaning ascribed to it in Section 16.1.

         1.17     "VisiJet Sales Affiliate" shall mean all sub distributors and
                  any other group, entity or individual with whom VisiJet enters
                  into a contract for the distribution and resale of Products.

         1.18     "Year" shall mean consecutive twelve (12) month periods, with
                  Year 1 beginning on the Effective Day.

2. APPOINTMENT AS EXCLUSIVE DISTRIBUTOR; AMOUNT OF CONSIDERATION

         2.1      EXCLUSIVE RIGHTS; CONSIDERATION. Subject to the terms and
                  conditions of this Agreement including, without limitation,
                  the closing conditions set forth in Section 18.10 hereof,
                  Gebauer shall appoint VisiJet as Gebauer's exclusive
                  distributor as of the Effective Date to market, sell and
                  distribute the Products throughout the World ("Territory")
                  during the Term, and VisiJet shall (a) pay Gebauer the
                  nonrefundable amount of [****] and (b) transfer to Gebauer, at
                  no cost to Gebauer, [****] shares of VisiJet Common Stock,
                  which VisiJet represents and warrants are duly authorized,
                  validly issued, and non-assessable. Except as shown on
                  Schedule 2.1, Gebauer represents and warrants to VisiJet that

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                  it has not granted any other person or firm any license,
                  distribution or marketing rights with respect to the Products,
                  and the during the Term it will not grant any license,
                  distribution or marketing rights with respect to the Products
                  nor will it, directly or indirectly, market, sell or
                  distribute any of the Products during the Term.

         2.2      [****] CLAIM. In order to enable Gebauer to provide the
                  Products at the prices set forth in Schedule B, VisiJet will
                  reimburse Gebauer for such amount as Gebauer is required to
                  pay to obtain a reduction in royalties payable to [****] in
                  respect of U.S. Patent No. [****] and European Patent
                  Application No. [****] and related technology (the
                  "[****]Claim"), not to exceed [****] . Such reimbursement
                  shall be paid by VisiJet within 10 days after Gebauer notifies
                  VisiJet in writing that it has settled the [****] Claim and
                  the amount that it is required to pay to [****] to secure such
                  settlement. The negotiations with [****] will be done by
                  Gebauer alone and neither VisiJet nor its affiliates shall
                  have any contact with [****]. In the event that the [****]
                  claims are not settled despite the best efforts of Gebauer, no
                  transfer of the [****] mentioned funds will be required, but
                  VisiJet agrees to an increase of the transfer price of the
                  Epitome and Lasitome systems as set forth in Schedule B by the
                  anticipated reduction of the amount to be realized by Gebauer
                  on sales of Products to VisiJet as a result of royalty fees
                  payable to [****], provided however that the cumulative total
                  of such increase in the transfer price to VisiJet shall not
                  exceed [****] .

         2.3      VISIJET SUB-DISTRIBUTORS. VisiJet shall develop and maintain
                  sub-distributor relationships with individuals and companies
                  knowledgeable of the functional capabilities and operation of
                  the Products and the procedures in which they are used. Prior
                  to entering into any agreement with any subdistributor to
                  distribute or resell the Products, VisiJet shall provide to
                  Gebauer the proposed agreement and all information requested
                  by Gebauer concerning the proposed distribution. Gebauer and
                  VisiJet will mutually agree in advance on any proposed
                  sub-distribution agreement.

         2.4      COMPETITIVE PRODUCT SALES. So long as VisiJet is a distributor
                  for Gebauer, VisiJet, its agents, employees, affiliates,
                  officers or directors shall not promote or sell any other
                  device which would be competitive to Gebauer's Products as
                  listed in Exhibit A. Exceptions to this provision are
                  VisiJet's HydroKeratome waterjet microkeratome and the
                  PulsaTome cataract/lens removal device which are presently
                  under development by VisiJet.

3. VISIJET OBLIGATIONS AS DISTRIBUTOR

         3.1      PURCHASE OF PRODUCTS: MINIMUM QUANTITIES. VisiJet shall
                  purchase Products from Gebauer on the terms and conditions set
                  forth in this Agreement and shall use all commercially
                  reasonable efforts to maximize sales of the Products in the
                  Territory.

                  (i)      After the six month period following the Effective
                           Date, VisiJet shall place Firm Orders each month of
                           not less than the minimum quantity requirements set
                           forth on attached Schedule C. Notwithstanding the
                           foregoing, for any Year in which VisiJet has already
                           submitted Firm Orders for the required Annual
                           Minimums set forth in Schedule C, for the remainder
                           of such Year: (a) the monthly Firm Orders required to
                           be submitted by VisiJet shall be reduced to [****] %
                           of the quantities set forth in Schedule C, and (b)
                           subsections (iii) and (iv) of this Section 3.1 shall
                           not apply.

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                  (ii)     If, after the first [****] period following the
                           Effective Date, VisiJet fails to submit Firm Orders
                           within any month for at least [****] of the minimum
                           monthly quantities set forth in Schedule C, or if
                           VisiJet does not deliver a payment to Gebauer of the
                           amount equal to the shortfall within [****] days
                           after the conclusion of such a month, then Gebauer
                           shall have the irrevocable right to terminate this
                           agreement without recourse upon [****] days prior
                           written notice.

                  (iii)    If, after the [****] period following the Effective
                           Date, VisiJet does not submit Firm Orders within any
                           [****] consecutive months equal to [****] times the
                           minimum monthly quantities as set forth in Schedule
                           C, or if VisiJet does not deliver a payment to
                           Gebauer of the amount of the shortfall within [****]
                           days after the conclusion of the afore-mentioned
                           period of [****] consecutive months, then Gebauer
                           shall have the irrevocable right to convert VisiJet's
                           rights to market and distribute the Products to
                           non-exclusive rights upon [****] days prior written
                           notice.

                  (iv)     In the event that, after the [****] period following
                           the Effective Date, VisiJet fails a second time to
                           submit Firm Orders within any [****] consecutive
                           months for the required accumulated minimum amount
                           equal to [****] times the minimum monthly quantities
                           as set forth in Schedule C, or if VisiJet does not
                           deliver a payment to Gebauer of the amount of the
                           shortfall within [****] days after the conclusion of
                           the afore-mentioned period of [****] consecutive
                           months, then Gebauer shall have the irrevocable right
                           to terminate this Agreement immediately without
                           recourse.

                  (v)      Gebauer shall notify VisiJet in writing of any
                           failure by VisiJet to place the required minimum
                           number of Firm Orders for any month within [****]
                           days after the end of the month in which such a
                           shortfall occurs.

                  (vi)     VisiJet's monthly minimum obligations and Gebauer's
                           irrevocable rights under this Section shall not apply
                           in any Year in which one of the following has
                           occurred:

                           (a)      Product recall, resulting from Gebauer's
                                    design or manufacture of the Product;

                           (b)      Failure by Gebauer during such Year to
                                    deliver at least [****] of Product on the
                                    dates specified in VisiJet's Firm Orders, or
                                    the delivery by Gebauer of Non-Conforming
                                    Products in any Product category, totaling
                                    more than [****] of all Products in such
                                    category delivered to VisiJet during such
                                    Year; or

                           (c)      Uncured material breach of this Agreement by
                                    Gebauer.

3.2 CERTAIN OTHER DUTIES OF VISIJET AS DISTRIBUTOR. VisiJet shall, at its
expense, be responsible for:

                  (i)      All marketing decisions regarding the Products
                           including, but not limited to, labeling, packaging,
                           advertising, pricing, and with support and assistance

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                           of Gebauer, professional education. Notwithstanding
                           the foregoing, Gebauer shall have the right and
                           responsibility to approve all labeling in order to
                           insure accuracy and legal compliance. Gebauer will
                           not unreasonably withhold such approval and shall do
                           so on a timely basis.

                  (ii)     Customer order processing, billing and collection of
                           payment for Products sold by VisiJet in the
                           Territory.

                  (iii)    Preparing all promotional and educational materials
                           and conducting all promotional activities relating to
                           the Products sold by VisiJet in compliance with all
                           applicable laws and regulations of the Regulatory
                           Authorities in each country in the Territory. These
                           activities include but are not limited to the
                           following:

                           o      Professional Journal Advertising
                           o      Product Brochures
                           o      Product Spec Sheets
                           o      Sales Literature
                           o      Physician Training Manuals
                           o      Training Course Materials
                           o      Sales Rep Training Manuals
                           o      White Papers
                           o      Symposium Papers
                           o      Journal Reprints
                           o      Promotional DVDs
                           o      Round Table Panel Discussions
                           o      Product Newsletters
                           o      User Conference Manuals
                           o      Website Content
                           o      Direct Mail Promotions
                           o      Internet Promotions
                           o      Fax Blasts
                           o      Scientific Conference Graphics and Panels
                           o      Scientific Conference Promotional Materials
                           o      Scientific Conference Signage
                           o      Sales Rep Portable Booth Graphics
                           o      Distributor Training Manuals

                  (iv)     Establishing and maintaining a system of record
                           keeping, with the support and assistance of Gebauer,
                           including a register of lot numbers and individual
                           Product numbers and customer names and addresses for
                           all Product sold by VisiJet in order to assist
                           Gebauer with traceability in the event of a Product
                           recall. VisiJet shall require all of its customers
                           that are not the end users of Products, including all
                           VisiJet Sales Affiliates, to maintain a similar
                           register, including names and addresses of its end
                           users in accordance with all applicable state,
                           federal and country guidelines.

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                  (v)      Conducting and continuing clinical trials for the
                           establishment, credibility and enhancement of the
                           EpiLASIK procedure and specifically for the
                           performance of the EpiTome product.

         3.3      DEMO UNITS AND INITIAL ORDERS. VisiJet shall place Firm Orders
                  [****] days of the Effective Date for: (a) [****] demo units
                  of the EpiTome and LasiTome from Gebauer for the purpose of
                  conducting physician clinical training and for demonstration
                  at major ophthalmic scientific conferences at a discount price
                  as outlined in Exhibit B, and (b) the first [****] Systems, to
                  be delivered by Gebauer at no less than [****] per month after
                  its receipt of such Firm Orders. Such Systems shall conform to
                  the Specifications and satisfy all other conditions and
                  requirements set forth in this Agreement.

         3.4      SERVICE ENGINEER. VisiJet shall at all times maintain at least
                  one service engineer trained in the repair and servicing of
                  Gebauer's products. VisiJet shall sponsor said engineer and
                  pay for all associated travel expenses for training in
                  Gebauer's headquarters in Neuhausen, Germany. Training shall
                  occur within [****] of the Effective Date of this Agreement.

4.       VISIJET'S RIGHTS TO PURCHASE; GEBAUER'S SUPPLY OBLIGATIONS

         4.1      REQUIREMENTS. During the Term, VisiJet shall have the right to
                  purchase and Gebauer shall manufacture and supply VisiJet's
                  requirements for the Products at such times and in such
                  quantities as specified by VisiJet in its Annual Forecasts and
                  amendments and Firm Orders as provided herein.

         4.2      INVENTORY. Beginning six (6) months following the Effective
                  Date, Gebauer will guarantee the availability of and maintain
                  in inventory [****] LasiTome/EpiTome Systems and all the
                  material for further [****] LasiTome/EpiTome Systems.
                  Additionally, Gebauer will by the above mentioned time
                  guarantee the availability of and maintain in inventory [****]
                  LASIK-Blades, and [****] Epi-Blades.

         4.3      ACCESSORIES. VisiJet shall have the right to purchase
                  Accessories on an as needed basis.

         4.4      SOFTWARE UPGRADES AND IMPROVEMENTS. Gebauer shall make
                  available to VisiJet, and VisiJet shall have the right to
                  market and sell, software upgrades and any improvements to the
                  Products or EpiTome Separator developed or acquired by Gebauer
                  during the Term. VisiJet shall be responsible for the
                  dissemination and any training relating to such software
                  upgrades or improvements.

4.5               SERVICE CONTRACTS. VisiJet shall have the right to offer its
                  consumers a service contract through Gebauer and subject to
                  Gebauer's prior written approval to extend the one-year
                  warranty described in Section 11.2 for additional one-year
                  periods, subject to payment to Gebauer of the fee for service
                  contracts set forth in Section 6.4 and such other terms and
                  conditions as the parties shall mutually agree. Gebauer shall
                  provide, or arrange to provide through a mutually agreed upon
                  third party, service under the terms of such service
                  contracts.

5.       FORECASTS, ORDERS, SHIPMENTS, ACCEPTANCE

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         5.1      ANNUAL FORECASTS. VisiJet will provide Gebauer with an initial
                  Annual Forecast upon execution of this Agreement and shall
                  update the Annual Forecast on a rolling basis no later than
                  [****] days prior to the first day of each subsequent Quarter.

         5.2      FIRM ORDERS. VisiJet will provide Gebauer with an initial Firm
                  Order upon execution of this Agreement on its written Purchase
                  Order Form by mail or fax (with original following by mail)
                  and paid for in accordance with the payment terms as specified
                  in Section 6.3 and will submit subsequent Firm Orders to
                  Gebauer at least [****] calendar days in advance of VisiJet's
                  requested delivery date. All Purchase Orders shall be
                  consistent with the provisions of this Agreement and any
                  inconsistent terms shall be deemed stricken.

         5.3      MINIMUM ORDERS. In each three-month period (a "Quarter")
                  during the Term, VisiJet will submit Firm Orders for no less
                  than [****] of the quantities specified in the then current
                  Annual Forecast for such Quarter. Gebauer shall not be
                  required to accept Firm Orders during any Quarter which, in
                  the aggregate, specify a quantity of Products greater than the
                  [****] of the quantity forecasted for such Quarter in the most
                  recent Annual Forecast. Yearly minimum purchases are defined
                  in Schedule C.

         5.4      SHIPMENT. All prices for Product and Accessories are FOB
                  Gebauer's warehouse facilities in Germany. Title and risk of
                  loss or damages to the Products shall pass to VisiJet upon
                  Gebauer's delivery to VisiJet's designated carrier for
                  shipment. VisiJet shall bear any costs of shipment of Products
                  to VisiJet's warehouse or other designated location as well as
                  the amount of any and all taxes (other than income or
                  franchise taxes or duty imposed by the German government upon
                  Gebauer), custom duties or other charges which may be required
                  to be paid or collected on the sale, delivery, or
                  transportation of the Products.

         5.5      ORDER CANCELLATION. Gebauer may cancel any accepted orders or
                  refuse or delay shipment of any orders if VisiJet fails to
                  meet any obligation arising under this Agreement.

6.       PRICE AND PAYMENT

         6.1      PURCHASE PRICE. The purchase price for the Products and
                  Accessories shall be as set forth in Schedule B.

         6.2      PRICE INCREASES. The prices set forth in Schedule B shall
                  remain fixed until [****] . Thereafter, prices may be
                  increased effective [****] and on each subsequent [****]
                  during the Term by written notice delivered to VisiJet no
                  later than [****] of that calendar year during which the next
                  [****] price increase will become effective, provided that the
                  amount of such annual price increases shall not exceed [****]
                  percent ([****]%) of the then applicable prices.

         6.3      PAYMENT TERMS. VisiJet shall pay [****] of the purchase price
                  for each System, Console or Handpiece ordered by VisiJet
                  together with submission of VisiJet's Firm Orders. VisiJet
                  shall pay the remaining [****] of the purchase price within
                  [****] days from the date of shipment of such Products in
                  accordance with Section 5.4. VisiJet shall pay the purchase

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                  price as set forth in Schedule B for all parts, disposables
                  and accessories within [****] days from the date of shipment.

         6.4      SERVICE CONTRACTS. VisiJet shall pay Gebauer a percentage of
                  all gross proceeds from all service contracts entered into by
                  VisiJet and approved in writing by Gebauer. Such payment shall
                  constitute full and final payment for all covered parts and
                  services to be provided under such Service Contracts,
                  including shipping costs to and from Gebauer. VisiJet and
                  Gebauer will mutually agree upon the pricing and other terms
                  of the Service Contracts, including but not limited to minimum
                  charges and the applicable percentage within three months of
                  the Effective Date, but in no case shall the applicable
                  percentage be less than [****] . Payment to Gebauer shall be
                  made no later than the [****] day of the month for any service
                  contracts entered into by VisiJet and approved by Gebauer in
                  the previous calendar month.

         6.5      ACCESSORIES. VisiJet shall pay the purchase price for
                  Accessories within [****] days following the receipt of
                  shipment or receipt of invoice from Gebauer whichever is
                  later.

         6.6      ENGINEERING SERVICES. In the event Gebauer provides
                  engineering services, VisiJet shall pay Gebauer for such
                  services at an hourly rate of [****] and reimburse Gebauer for
                  its reasonable out of pocket costs. Any amounts payable for
                  engineering services shall be payable within [****] days
                  following receipt of invoice for such services.

         6.7      LATE PAYMENT CHARGES. Any amounts not paid by VisiJet when due
                  shall be subject to a late payment fee of [****] per month
                  until such amounts are paid in full.

         6.8      SOFTWARE UPGRADES. VisiJet shall pay Gebauer the greater of
                  (i) Fifty Percent (50%) of the gross sales price of all
                  software upgrades sold by VisiJet, or (ii) Gebauer's standard
                  price for the software upgrade or improvement, payable by wire
                  transfer by the tenth day of each month for all software
                  upgrades sold in the previous month.

         6.9      CURRENCY: All payments due hereunder shall be made in Euros to
                  Gebauer at its headquarters in Neuhausen, Germany, or such
                  other place as Gebauer may designate. Currency conversion
                  rates are to be defined by rates published in THE WALL STREET
                  JOURNAL on the first day of the month prior to the payment due
                  date.

         6.10     QUARTERLY STATEMENTS; AUDITS.

                  (i)      Each party shall maintain books and records prepared
                           in accordance with international accounting standards
                           reflecting in a reasonable level of detail the data
                           utilized to calculate the amounts payable pursuant to
                           this Agreement for no less than two (2) years after
                           the end of each payment period.

                  (ii)     Each party shall have the right, at its own expense
                           (except as otherwise provided below), to have the
                           other party's supporting books and records examined
                           during regular business hours upon reasonable advance
                           notice by such party or an internationally recognized
                           independent certified public accounting firm
                           designated by such party and reasonably acceptable to
                           the other party. The right of examination must be
                           exercised, with respect to any payment period, prior
                           to the expiration of the applicable two-year record

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                           retention period and shall not be exercised more
                           frequently than once each calendar year. Each person
                           participating in an examination shall agree not to
                           disclose any information obtained during such
                           examination which does not directly relate to the
                           calculation of the amounts payable under this
                           Agreement. If an examination results in the discovery
                           of an underpayment by one party to the other of
                           [****] or more of the amounts actually paid, the cost
                           of such examination shall be paid by the underpaying
                           party. Additionally, the underpaying party shall
                           immediately pay such shortfall plus any applicable
                           late payment charges.

7.       INTELLECTUAL PROPERTY

         7.1      OWNERSHIP. Gebauer shall retain all rights, title and interest
                  in and to all intellectual property rights relating to the
                  Products. VisiJet shall have no right to modify or alter any
                  of the Products or Accessories in any way. Neither party shall
                  use any trade mark of the other party without the other's
                  prior written consent.

         7.2      RESPONSE TO INFRINGEMENT. If either party becomes aware of any
                  infringement or threatened infringement of the patent rights
                  of Gebauer for the Products, the party having such knowledge
                  will give notice to the other. Gebauer shall have the
                  responsibility to take such action as it may deem necessary,
                  at its own expense, to prevent or eliminate such infringement.
                  The other party shall cooperate in any reasonable manner.
                  Gebauer shall not compromise or settle any suit for
                  infringement of its patent rights relating to the Products in
                  the Territory by providing a license to such infringing party
                  to sell the Products without the prior written approval of
                  VisiJet, which approval shall not be unreasonably withheld,
                  conditioned or delayed.

         7.3      VISIJET SELF-HELP RIGHTS. In the event that Gebauer does not
                  take any action to prevent or eliminate infringement of its
                  patent rights relating to the Products in the Territory within
                  [****] days after receipt of notice from VisiJet in accordance
                  with Section 7.3, VisiJet shall have the right to take all
                  reasonable and appropriate actions, including litigation, to
                  terminate such infringement. Gebauer shall cooperate with
                  VisiJet, and execute any necessary documents relating to such
                  action. VisiJet shall not compromise or settle any suit for
                  infringement without the prior written approval of Gebauer,
                  which approval shall not be unreasonably withheld, conditioned
                  or delayed. Gebauer shall reduce the transfer price for the
                  Products sold by VisiJet within the part of the Territory
                  subject to the infringement action by [****] % for the
                  duration of the litigation.

         7.4      DAMAGE AWARDS. Any damages recovered by the party bringing the
                  action for patent infringement will be used first to
                  compensate that party for its out-of-pocket expenses in the
                  prosecution of any such action, suit or proceeding for
                  infringement. Any remaining damages recovered by that party
                  will be apportioned between VisiJet and Gebauer in proportion
                  to the damage incurred by each party as a result of the
                  infringement.

8.       THIRD PARTY RIGHTS

         8.1      NOTICE OF CLAIMS. If either party becomes aware of any action,
                  or suit, or threat of action or suit, by a third party
                  alleging that the manufacture, use or sale or offer for sale
                  of the Products infringes a patent, or violates any other

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                  proprietary rights of any third party, such party will
                  promptly notify the other party of the same and fully disclose
                  all information relating thereto.

         8.2      DEFENSE. Gebauer shall use commercially reasonable efforts to
                  defend any such action relating to the Products. Gebauer shall
                  cooperate and consult with VisiJet during the course of such
                  defense and shall keep VisiJet fully informed with respect to
                  all significant aspects of such action. VisiJet shall assist
                  Gebauer by providing information in the possession and control
                  of VisiJet and by providing such fact witnesses as may be
                  reasonably necessary to such defense.

         8.3      JUDGMENTS AND SETTLEMENTS. If, by the terms of: (i) a
                  settlement of any claim against VisiJet or Gebauer, or (ii) a
                  judgment, decree or decision of a court, tribunal or other
                  authority of competent jurisdiction finding that the sale of
                  any of the Products infringed a patent, or violated any other
                  proprietary rights of any third party, and VisiJet is required
                  to compensate or pay damages to such third party, Gebauer will
                  pay all such damages up to the amount paid by VisiJet to
                  Gebauer pursuant to this Agreement. In the event that VisiJet
                  is unable to continue to sell the Product in any country in
                  the Territory due to potential infringement of a third party's
                  rights, Gebauer will, at its sole option and expense: (a)
                  replace or modify the infringing Product so that it becomes
                  non-infringing as long as functionality is not materially and
                  adversely affected; or (b) procure the right to continue
                  manufacturing and selling the Products; or (c) if Gebauer is
                  unable to replace or modify the infringing Product or to
                  procure the right to continue to manufacture and sell the
                  Products on commercially reasonable terms, terminate the
                  Agreement and return to VisiJet a prorated portion of the one
                  million EURO payment required by Section 2.1 above based on
                  the remaining Term of the Agreement at the time of such
                  termination.

9.       REGULATORY COMPLIANCE

         9.1      PRODUCT REGISTRATIONS. Gebauer shall obtain and maintain all
                  site licenses and regulatory approvals which may be or become
                  necessary to enable Gebauer to manufacture and sell the
                  Products to VisiJet. Gebauer shall maintain all device
                  registrations for the European Union and other countries that
                  are in existence at the time of signing of this agreement.
                  VisiJet will be responsible for obtaining and maintaining in
                  its own name and the name of Gebauer, or the name of a VisiJet
                  Affiliate and the name of Gebauer all device registrations and
                  regulatory filings for any other country VisiJet wants to
                  market the products with Gebauer's reasonable assistance. Each
                  party shall execute such documents and provide such
                  information to assist the other in obtaining or transferring
                  registrations in accordance with the terms of this Section 9.1
                  as may be reasonably requested by either party.

         9.2      AUTHORIZED REPRESENTATIVE. For purposes of the European
                  Medical Device Directive (EEC93/42), Gebauer shall be
                  designated as the Manufacturer of the Products and VisiJet,
                  Inc., shall serve as the Authorized Representative

         9.3      AGENCY INSPECTIONS. Gebauer will notify VisiJet of the outcome
                  of any inspection of Gebauer's manufacturing or warehouse
                  facilities by the FDA, CE Notified Bodies, or any regulatory
                  agency of any other country and shall notify VisiJet within
                  five (5) Business Days of any regulatory action taken.

                                      -10-

<PAGE>

10.      QUALITY ASSURANCE AND IMPROVEMENTS

         10.1     MASTER ARTWORK TEXT. VisiJet shall develop and provide the
                  Master Artwork Text in label or printed form no less than ten
                  (10) Business Days prior to the shipment of the demonstration
                  Systems referred to in Section 3.3 and Section 5.4 above.
                  VisiJet shall develop and provide Gebauer with print quality
                  Master Artwork Text for use with all subsequent Products to be
                  delivered under this Agreement no less than twenty (20)
                  Business Days prior to the delivery date specified in
                  VisiJet's subsequent Firm Order. The Master Artwork Text, and
                  any subsequent revision thereto provided by VisiJet, shall
                  become incorporated as part of the Specifications and shall
                  not be altered in any way by Gebauer without the prior written
                  consent of VisiJet.

         10.2     PACKAGING. All Products shall be packaged in VisiJet's
                  designated packaging using VisiJet's designated brand names,
                  model numbers and Master Artwork Text and shall include a
                  mutually agreed upon reference to Gebauer.

         10.3     QUALITY ASSURANCE. Gebauer shall conduct quality testing on
                  the Products prior to delivery to VisiJet as set forth in the
                  Specifications and as required under the QSRs and shall
                  deliver to VisiJet concurrently with each shipment a
                  Certificate of Compliance stating that each Product shipped
                  has been produced in accordance therewith. Gebauer shall
                  retain all manufacturing records for no less than ten (10)
                  years following the date of manufacture. Gebauer shall
                  maintain documentation regarding each serialized unit and
                  software revision level (as applicable) for each Product
                  manufactured by or on behalf of Gebauer hereunder.

         10.4     ACCESS. VisiJet shall have access to all manufacturing records
                  within five (5) Business Days of any written request
                  therefore, provided that information requested by a CE
                  Notified Body, an authorized regulatory agency or by VisiJet
                  in the event of an emergency, will be provided within no more
                  than two (2) Business Days notice. VisiJet shall have the
                  right to conduct an annual audit of Gebauer's and any contract
                  manufacturer's, manufacturing and warehouse facilities and
                  records to ensure that Gebauer's quality assurance system is
                  effective and in accordance with the QSRs. VisiJet and its
                  authorized representatives shall have the right to inspect
                  such facilities during normal business hours with ten (10)
                  Business Days prior written notice, provided that in the event
                  that VisiJet determines, in its reasonable discretion, that an
                  onsite inspection is required in order to investigate a
                  specific quality concern or Product complaint, VisiJet shall
                  be entitled to conduct such an inspection upon two (2)
                  Business Days prior written notice.

         10.5     MANUFACTURING CHANGES.

                  (i)      SITE AND RESPONSIBILITY. Gebauer shall not change the
                           site of manufacture of the Products without VisiJet's
                           prior written approval, which shall not be
                           unreasonably withheld or delayed. Gebauer shall not
                           assign or subcontract manufacturing responsibility
                           without VisiJet's prior written approval, which shall
                           not be unreasonably withheld or delayed. For purposes
                           of this Section, the "site of manufacture" and
                           "manufacturing responsibility" shall mean the

                                      -11-

<PAGE>

                           location and responsibility for the final assembly
                           and quality testing of the Products.

                  (ii)     METHODS. Gebauer shall not substantively change the
                           methods of manufacture relied upon by VisiJet for
                           qualification without VisiJet's prior written
                           consent, which consent shall not be unreasonably
                           withheld or delayed.

                  (iii)    MATERIALS AND SUPPLIERS. Gebauer shall provide
                           VisiJet with a bill of materials and list of
                           suppliers for each Product, which information shall
                           be deemed Confidential Information of Gebauer.
                           Gebauer shall notify VisiJet of any proposed
                           substitution of any critical materials or suppliers
                           at least five (5) Business Days prior to
                           implementation of such change. In the absence of any
                           reasonable objection from VisiJet prior to the
                           expiration of such notice period, Gebauer shall be
                           free to implement the change identified in such
                           notice. The parties shall identify a list of
                           materials and supplies which can be substituted or
                           sourced from alternate suppliers without notice to or
                           consent by VisiJet.

                  (iv)     MANUFACTURING IMPROVEMENTS. The parties shall work
                           together to reduce manufacturing costs and to improve
                           yields, quality and performance. VisiJet shall have
                           the right to request that the Products be sourced by
                           Gebauer through a third party, provided that such
                           outsourcing reduces Gebauer's cost and, the parties
                           shall share any such cost savings equally by
                           corresponding adjustments to the purchase price
                           payable by VisiJet for such Products.

                  (v)      SOFTWARE UPGRADES AND PRODUCT IMPROVEMENTS. Gebauer
                           shall make reasonable commercial efforts to provide
                           specific software upgrades or other Product
                           improvements requested by VisiJet. Gebauer shall
                           exercise reasonable efforts to promptly correct and
                           provide customer solutions, at its own expense, for
                           any material errors identified by either party in the
                           operation of the software.

                  (vi)     NEW APPLICATIONS. The parties agree to work together
                           in good faith to evaluate the opportunities for
                           developing additional applications for the Products.

11.      REPRESENTATIONS AND WARRANTIES

         11.1     GEBAUER WARRANTIES. Gebauer hereby represents and warrants
                  that (i) all Products supplied by Gebauer to VisiJet hereunder
                  shall have been manufactured, quality tested and packaged in
                  accordance with, and shall conform to, the Specifications, all
                  other requirements set forth in this Agreement and all laws
                  and regulations, including but not limited to the QSRs, as
                  such laws, regulations and requirements are constituted and
                  effective as of the time of shipment of the Products to
                  VisiJet, (ii) Gebauer will maintain the integrity of the
                  practices and processes upon which VisiJet has relied for
                  qualification; and (iii) Gebauer has capability and capacity
                  to perform all of it's obligations hereunder. Gebauer hereby
                  represents and warrants that to the best of its knowledge it
                  is the sole owner of, or has the right to use, all
                  intellectual property necessary to develop and manufacture the
                  Products, and any other materials supplied by Gebauer pursuant
                  hereto, and that neither the Products nor any trademarks or
                  designs used in connection therewith infringe any patent,
                  copyright, trademark or other similar proprietary right of any
                  person.

                                      -12-

<PAGE>

         11.2     PRODUCT WARRANTIES. Gebauer warrants that it will use
                  commercially reasonable care in the manufacture of the
                  Products and that such Products shall be free from material
                  defects in materials and workmanship under normal use and
                  service. Gebauer's obligations under this warranty shall be
                  limited to replacement of any Product which is determined to
                  be Non-Conforming within one (1) year from the date of
                  original shipment to VisiJet.

         11.3     VISIJET REPRESENTATIONS AND WARRANTIES. VisiJet represents and
                  warrants that it has the resources, capability and capacity to
                  perform its obligations hereunder. VisiJet also represents and
                  warrants that it shall, obtain within [****] of the Effective
                  Date, no less than [****] in net proceeds from an offering of
                  its equity securities, to fund its ongoing operations and
                  business activities. VisiJet acknowledges that in the event of
                  a breach of this representation, Gebauer shall have the right
                  to immediately terminate this Agreement.

12.      RECALLS, COMPLAINTS, RETURNS AND SUPPLY FAILURE

         12.1     NOTIFICATION. The parties shall immediately contact each other
                  in the event that either party has any reason to believe that
                  a voluntary withdrawal or recall of any Product may be
                  necessary. VisiJet and Gebauer shall jointly confer and
                  cooperate to resolve any issues with respect to a voluntary
                  withdrawal or recall, including without limitation, the
                  necessity of declaring the voluntary withdrawal or recall, the
                  manner in which the voluntary withdrawal or recall should be
                  conducted and the duration of the voluntary withdrawal or
                  recall, provided that either party shall have the right to
                  require a voluntary withdrawal of any Product in the event of
                  a reasonable and good faith concern regarding the safety of
                  such Product. VisiJet shall be responsible for notification of
                  the applicable health authorities in the event of a voluntary
                  withdrawal or recall.

         12.2     VISIJET RESPONSIBILITY. VisiJet shall be responsible for the
                  costs of a recall or voluntary withdrawal, and shall reimburse
                  Gebauer for any costs reasonably incurred by Gebauer, in the
                  event a recall or voluntary withdrawal which is determined, by
                  mutual agreement of the parties (or, if the parties fail to
                  agree, by arbitration pursuant to Section 18.6), to have been
                  caused by VisiJet's storage, promotion, packaging or
                  distribution of Products.

         12.3     GEBAUER RESPONSIBILITY. Gebauer shall be responsible for the
                  costs of a recall or voluntary withdrawal, and shall reimburse
                  VisiJet for any costs reasonably incurred by VisiJet in the
                  event a recall or voluntary withdrawal which is determined, by
                  mutual agreement of the parties (or by an independent third
                  party if the parties are unable to agree upon the cause), to
                  have been caused by a defect in the design or manufacture of
                  the Product.

         12.4     MARKET COMPLAINTS. VisiJet shall establish and maintain an
                  appropriate system for collecting, recording and maintaining
                  market complaints relating to the Products, communicating
                  market complaint information to Gebauer, facilitating
                  corrective actions and product recalls. VisiJet will report
                  all Product or packaging-related complaints to Gebauer within
                  ten (10) Business Days following receipt of the complaint.
                  Gebauer shall provide VisiJet with a written acknowledgement
                  of receipt of the complaint or suspected adverse incident and

                                      -13-

<PAGE>

                  take appropriate investigative and, if necessary corrective
                  action, as required by the QSRs for the design and manufacture
                  of the applicable Product, and shall provide VisiJet with all
                  relevant information relating to any such investigation and
                  corrective action. VisiJet shall be responsible, in
                  consultation with Gebauer for reporting any adverse incident
                  to the relevant regulatory authorities as required by the
                  QSRs.

         12.5     RETURNS. VisiJet shall be responsible for responding to
                  inquiries or complaints concerning any Product and for the
                  collection and processing of any Products returned by
                  customers as defective. VisiJet shall return such Product to
                  Gebauer for evaluation. Any Product which is confirmed by
                  Gebauer to be Non-Conforming shall be repaired or replaced
                  without additional charge, including all shipping costs to and
                  from Gebauer. Gebauer shall use reasonable commercial efforts
                  to repair or replace any Non-Conforming Products within twenty
                  (20) Business Days after receiving the Non-Conforming Product.

         12.6     SUPPLY FAILURE. In the event that Gebauer is unable for any
                  reason to supply at least [****] of VisiJet's Firm Orders for
                  Product in any two consecutive Quarters, VisiJet shall be
                  entitled to require Gebauer to qualify a second source for the
                  manufacture of the Products on Gebauer's behalf, subject to
                  all other terms and conditions of this Agreement. Gebauer
                  shall provide all manufacturing documentation and such other
                  assistance as may be necessary or useful to establish
                  manufacturing operations by such third party, subject to the
                  execution of appropriate non-disclosure restrictions. Gebauer
                  shall purchase the applicable Product(s) from such second
                  source and sell and deliver the Product(s) to VisiJet in
                  accordance with the provisions of, and at the prices set forth
                  in, this Agreement. Gebauer shall grant the second source a
                  royalty-free, non-exclusive license to any intellectual
                  property rights necessary to enable the second source to
                  manufacture the Products until such time as Gebauer is again
                  able to meet the requirements referenced above.

13.      INDEMNIFICATION

         13.1     Subject to the limitations set forth in Section 8 and Section
                  11 above, Gebauer shall indemnify and hold harmless VisiJet,
                  its officers, agents and employees against any claim, loss,
                  damage, penalty, assessment or expense (including reasonable
                  attorneys fees) (a "Claim") arising directly or indirectly
                  from Gebauer's (i) manufacture, testing, handling or storage
                  of the Product, (ii) breach of warranty, (iii) breach of any
                  of its other obligations under this Agreement; or (iv)
                  infringement of any intellectual property rights belonging to
                  any third party.

         13.2     VisiJet shall indemnify and hold harmless Gebauer and its
                  officers, agents and employees against any Claim arising
                  directly or indirectly from VisiJet's (i) handling or storage
                  or the Product, (ii) marketing, packaging, sale or
                  distribution of the Product, (iii) breach of any of its
                  obligations under this Agreement, (iv) breach of any of its
                  representations or warranties, or (v) infringement of any
                  intellectual property rights belonging to any third party.

         13.3     In the event that either party (the "Indemnified Party")
                  receives notice of, or becomes aware of, a Claim for which the
                  Indemnified Party intends to seek indemnification hereunder,

                                      -14-

<PAGE>

                  the Indemnified Party shall promptly provide the other party
                  (the "Indemnifying Party") with notice of such claim. The
                  Indemnifying Party shall have the right, at its option and its
                  own expense, to be represented by counsel of its own choice
                  and to defend against, negotiate, settle or otherwise deal
                  with any such Claim, provided the Indemnifying Party shall not
                  enter into any settlement or compromise of any such Claim
                  which could lead to liability or create any financial or other
                  obligation on the part of the Indemnified Party without the
                  Indemnified Party's prior written consent which consent shall
                  not be unreasonably withheld. The Indemnified Party may
                  participate in the defense of any Claim with counsel of its
                  own choice and at its own expense. The parties agree to
                  cooperate fully with each other in connection with the
                  defense, negotiation or settlement of any such Claim. In the
                  event that the Indemnifying Party does not undertake the
                  defense, compromise or settlement of a Claim, the Indemnified
                  Party may undertake such defense, compromise, or settlement,
                  but shall not settle or compromise any such claim with the
                  Indemnifying Party's prior written consent, which consent
                  shall not be unreasonably withheld.

         13.4     NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INCIDENTAL,
                  INDIRECT OR CONSEQUENTIAL DAMAGES, OR FOR THE LOSS OF PROFIT,
                  REVENUE, OR DATA, ARISING OUT OF OR RELATING TO THIS AGREEMENT
                  EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
                  SUCH POTENTIAL LOSS.

14.      INSURANCE

         During the term of this Agreement and for two (2) years thereafter
         Gebauer shall maintain product liability insurance (containing a broad
         form of vendors endorsements) on the Products with a minimum of [****]
         for bodily injury, [****] for each claim and [****] for property
         damage, and an aggregate limit of [****] . Gebauer shall, upon
         VisiJet's request, provide a Certificate of Insurance evidencing such
         insurance.

15.      CONFIDENTIALITY AND ANNOUNCEMENTS

         15.1     During the Term of this Agreement and after the expiration or
                  termination of this Agreement, a party receiving (the
                  "Receiving Party") Confidential Information of the other party
                  (the "Disclosing Party") pursuant to this Agreement shall not:

                  (i)      Use such Confidential Information for any reason
                           other than for the purpose of fulfilling the
                           Receiving Party's obligations and commitments under
                           the terms of this Agreement.

                  (ii)     Disclose such Confidential Information to any person
                           other than employees of the Receiving Party who have
                           a need to know such information and to third parties
                           subject to written agreements prohibiting the
                           disclosure or use of such Confidential Information
                           other than for the purposes contemplated by this
                           Agreement.

                  (iii)    Upon the Disclosing Party's request, the Receiving
                           Party shall return or destroy, at the Disclosing
                           Party's option, all materials, documents or records
                           incorporating the Disclosing Party's Confidential

                                      -15-

<PAGE>

                           Information, provided that the Receiving Party shall
                           be entitled to retain one copy of such records for
                           archive purposes which shall remain subject to the
                           restrictions against use and disclosure set forth
                           herein.

         15.2     The obligations set forth in Section 15.1 above shall not
                  apply to any information that the Receiving Party can show by
                  competent proof (i) was generally known to the public at the
                  time of disclosure by the Disclosing Party; (ii) becomes
                  generally known to the public thereafter through no act or
                  omission of the Receiving Party or its officers, employees,
                  agents, or representatives; (iii) was disclosed to the
                  Receiving Party by a third party having a bona fide right both
                  to possess the information and to disclose it to the Receiving
                  Party, or, (iv) is developed by the Receiving Party through
                  entirely independent efforts and without use of the
                  Confidential Information.

         15.3     Neither party shall make any press release or trade
                  announcement relating to this Agreement, or otherwise disclose
                  the terms of this Agreement, without the prior written consent
                  of the other party, except as required by a court of competent
                  jurisdiction or pursuant to the disclosure requirements of a
                  governmental agency.

16.      TERM AND TERMINATION

         16.1     TERM. This Agreement will commence on the Effective Date and
                  will continue in effect for [****] from the Effective Date
                  (the "Initial Term") unless earlier terminated pursuant to the
                  provisions of the Agreement. VisiJet may at its election, upon
                  fifteen (15) days prior written notice to Gebauer before the
                  end of the Initial Term, extend the term of this Agreement for
                  an additional [****] , provided that VisiJet has both: (a)
                  achieved a combined installed base of [****] Epi-Tome and
                  Lasi-Tome Systems within the Territory, and (b) sold at least
                  [****] Epi-Tome and Lasi-Tome blades during the preceding
                  [****] month period.

         16.2     EARLY TERMINATION. One party may terminate this Agreement at
                  any time in the event of the other party's (i) failure to cure
                  any noncompliance with any material term of this Agreement
                  within [****] days following receipt of written notice of such
                  noncompliance, provided that any payment defaults must be
                  cured within [****] days following notice, or (ii) immediately
                  if the other party (a) terminates or suspends its business or
                  operations; (b) becomes subject to any bankruptcy or
                  insolvency proceeding under any applicable statute; (c)
                  becomes insolvent or subject to direct control by a trustee,
                  receiver or similar authority; or (d) has commenced the
                  process of winding up or liquidating.

         16.3     EFFECT OF TERMINATION. In the event of termination of this
                  Agreement by VisiJet in accordance with Section 16.2, and
                  provided that VisiJet continues to be the exclusive
                  distributor of the Products through the termination date,
                  VisiJet will have the option to purchase any finished Product
                  inventory in Gebauer's facilities on the termination date or
                  cancel any purchase order delivered prior to the date notice
                  of termination is given, provided that any Product ordered and
                  shipped prior to the effective date of termination which is
                  received by VisiJet shall be paid for in full by VisiJet in
                  accordance with the terms of this Agreement. In the event this
                  Agreement is terminated by Gebauer, all finished Products
                  manufactured and work in progress initiated pursuant to
                  Section 4.2 in response to Firm Orders submitted prior to the
                  effective date of termination shall be paid for in full by

                                      -16-

<PAGE>

                  VisiJet in accordance with the terms of this Agreement.
                  VisiJet shall have the right to apply any unused portion of
                  the credit for prepaid inventory remaining under Section 6.3
                  of this Agreement against the total purchase price for any
                  Products delivered to VisiJet following termination.

17.      FORCE MAJEURE

         Neither party shall be liable to the other for loss or damages for any
         default or delay attributable to any cause beyond the reasonable
         control of that party, including, but not limited to an act of God,
         flood, fire, explosion, strike war, acts or terrorism, governmental
         action other regulatory enforcement action arising from any violation
         of law, rule or regulation by the party seeking the protection of this
         provision. If such an event occurs, the party affected shall notify the
         other party and shall exercise diligent efforts to resume performance
         of its obligations as soon as possible. In the event the party affected
         is unable to resume performance within sixty (60) days, the other party
         shall have the right to terminate this Agreement upon ten (10) days
         prior written notice. Notwithstanding the foregoing, VisiJet's payment
         obligations to Gebauer, with respect to Products and services
         theretofore delivered by Gebauer, shall not be delayed or deferred by
         any of the events referred to above.

18.      MISCELLANEOUS

         18.1     WAIVER. No waiver of any of the terms of this Agreement shall
                  be effective unless made in writing and signed by an
                  authorized representative of the party waiving its rights
                  hereunder.

         18.2     NO LICENSE. No license to any trademark, patent, copyright or
                  other property right of Gebauer is granted under this
                  Agreement except to the extent required for VisiJet to market
                  and sell the Products in accordance with the terms of this
                  Agreement.

         18.3     GOVERNING LAW. This Agreement shall be construed and enforced
                  pursuant to the laws of the Federal State of
                  Baden-Wuerttemberg in Germany, disregarding any conflicts of
                  laws provisions.

         18.4     INDEPENDENT CONTRACTORS. Nothing in this Agreement is intended
                  or shall be deemed to constitute a partnership, agency, or
                  joint venture relationship between the parties. All activities
                  by the parties hereunder shall be performed by them as
                  independent contractors. Neither party shall incur any debts
                  or make any commitments for the other party, except to the
                  extent specifically provided herein.

         18.5     ASSIGNMENT. This Agreement shall be binding upon and inure to
                  the benefit of the parties, and permitted assigns. Neither
                  party may assign this Agreement without the prior written
                  consent of the non-assigning party, which consent shall not
                  unreasonably be withheld. In case of a proposed change of
                  control of VisiJet, and in consideration for Gebauer's consent
                  and for the consequences to Gebauer of such a change of
                  control, VisiJet will provide no less than [****] days notice
                  to Gebauer of such proposed change of control event and
                  Gebauer shall have the right to require that VisiJet either
                  issue [****] shares of VisiJet at the cost of [****] per share
                  to Gebauer, or pay via wire transfer [****] to Gebauer's bank
                  account immediately before such a change of control becomes
                  effective. As used in this section, the term "change in
                  control" means: (i) any merger, acquisition, sale of voting

                                      -17-

<PAGE>

                  stock, or other transaction or series of related transactions
                  (the "Transaction") in which the shareholders of VisiJet
                  immediately before the Transaction (the "Original
                  Shareholders") do not collectively own a majority of the
                  outstanding shares of voting stock of the surviving
                  corporation immediately following the Transaction, or (ii) a
                  sale of all or substantially of the assets of VisiJet to a
                  person not an affiliate of VisiJet before such sale. For
                  purposes of determining whether a change in control has
                  occurred, any person that acquired shares of voting stock of
                  the surviving corporation in the Transaction, or whose
                  percentage ownership of such voting shares increased in the
                  Transaction, shall not be treated as an Original Shareholder.

         18.6     ARBITRATION. In the event that the parties are unable to
                  resolve any dispute arising under this Agreement through
                  direct negotiations, the parties agree and consent to the
                  resolution of such dispute by binding arbitration. Any such
                  arbitration shall be conducted in accordance with the
                  procedures of the International Chamber of Commerce, or as
                  otherwise agreed by the parties, and shall be held in Federal
                  State of Baden-Wuerttemberg in Germany, before a single
                  arbitrator selected by the mutual agreement of the parties (or
                  by the International Chamber of Commerce, if the parties are
                  unable to agree upon an arbitrator). Notwithstanding the
                  foregoing, either party shall have the right to seek
                  injunctive relief in a court of competent jurisdiction to
                  prevent any breach of Sections 2.4, 7 and 15 of this Agreement
                  by the other party.

         18.7     NOTICES. All notices hereunder shall be in writing and shall
                  be considered delivered on the day of hand delivery, one day
                  after delivery to a nationally recognized overnight delivery
                  service, charges prepaid, or three days-after being sent by
                  registered or certified mail, postage prepaid:

                  If to VisiJet, as follows:
                  VisiJet, Inc.,
                  192 Technology Drive
                  Suite Q
                  Irvine, CA 92618

                  If to Gebauer, as follows
         (i)      Gebauer Medizintechnik GmbH

                  Monbachstr. 7/1
                  75242 Neuhausen, Germany
                  Attn:  Mr. Steffen Gebauer

                  Or to such other address as any party shall have specified by
                  notice to the other in accordance with this paragraph.

         18.8     COMPLIANCE WITH LAW. Each party shall comply with all legal
                  and regulatory requirements applicable to the conduct of its
                  business, including but not limited to, compliance with all
                  safety, health, environmental and employment laws applicable
                  to the activities to be undertaken by such party pursuant to
                  this Agreement.

         18.9     ENTIRE AGREEMENT, MODIFICATION, COUNTER PARTS. The terms of
                  this Agreement represent the entire agreement of the parties
                  with respect to the subject matter herein and shall not be

                                      -18-

<PAGE>

                  modified or supplemented except in a written document duly
                  executed by the parties expressly stating that it is intended
                  to modify, supplement or amend this Agreement. This Agreement
                  shall prevail in the event of any inconsistencies between it
                  and the terms of any purchase order, invoice or other form
                  utilized by the parties. This Agreement may be executed in one
                  or more counterparts, each of which shall be deemed an
                  original, but all of which together shall be deemed one and
                  the same instrument.

         18.10    CLOSING. The closing of the transactions contemplated by this
                  Agreement shall take place at the offices of Kirkpatrick &
                  Lockhart LLP ("K&L") located at 10100 Santa Monica Boulevard,
                  Seventh Floor, Los Angeles, CA 90067 on April __, 2004, or any
                  other date or place agreed to by the parties; PROVIDED THAT
                  for the purpose of defining the "Effective Date" and otherwise
                  making this Agreement legally binding, a closing shall be
                  deemed to have taken place ONLY IF each of the following
                  conditions are met: (a) VisiJet shall have delivered to K&L
                  (i) a cashier's check made out to K&L, or by wire transfer to
                  the account of K&L, in the amount of [****] , (ii) a stock
                  certificate evidencing the transfer of [****] shares of
                  VisiJet Common Stock to Gebauer, and (iii) two (2) original
                  signed signature pages to this Agreement; and (b) K&L, on
                  behalf of Gebauer, shall have delivered to VisiJet two (2)
                  original signed signature pages to this Agreement.

         18.11    SEVERABILITY. Any term or provision of this Agreement that is
                  invalid or unenforceable in any situation in any jurisdiction
                  shall not affect the validity or enforceability of the
                  remaining terms or provisions hereof or the validity or
                  enforceability of the offending term or provision in any other
                  situation or in any other jurisdiction.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

                                      -19-

<PAGE>

         IN WITNESS WHEREOF, the parties hereby execute this Agreement as of the
Effective Date.

GEBAUER MEDIZINTECHNIK GMBH

By  /S/ STEFFEN GEBAUER                               Date May 7, 2004
    -------------------
    Steffen Gebauer, Managing Director

VISIJET, INC.,

By  /S/ RANDAL A. BAILEY                              Date May 7, 2004
    --------------------
    Randal A. Bailey, CEO

                                      -20-

<PAGE>

                                   SCHEDULE A

                                  PRODUCT LIST

-        EPITOME SYSTEM, INCLUDING:
                  CONSOLE
                  HANDPIECE
                  FOOTSWITCH X 2
                  EPI-HEAD X 2
                  RINGS X 4
                  METAL BANDS X 4
                  VACUUM HANDLES X 2
                  STERIBOXES X 2

-        LASITOME SYSTEM, INCLUDING:
                  CONSOLE
                  HANDPIECE
                  FOOTSWITCH X 2
                  LASIK-HEAD X 2
                  RINGS X 4
                  METAL BANDS X 4
                  VACUUM HANDLES X 2
                  STERIBOXES X 2

-        PARTS, DISPOSABLES AND ACCESSORIES WHICH BELONG TO THE EPITOME AND
         LASITOME SYSTEMS, AS FOLLOWS:
                  LASIK-HEAD
                  EPI-HEAD
                  SUCTION RING
                  METAL BAND
                  VACUUM HANDLE
                  STERIBOX
                  HANDPIECE
                  CONSOLE
                  FOOTSWITCH
                  EPI-BLADE
                  LASIK BLADE

                                      -21-

<PAGE>

                                   SCHEDULE B

                                   PRICE LIST

EpiTome/LasiTome System                 [****]

LASIK-Head                              [****]

Epi-Head                                [****]

Suction Ring                            [****]

Metal Band                              [****]

Vacuum Handle                           [****]

Steribox                                [****]

Sterilizable Cover
     For Handpiece                      [****]

Handpiece                               [****]

Console                                 [****]

Footswitch                              [****]

Epi-Blade                               [****]

LASIK-Blade                             [****]

EpiTome/LasiTome Demo System
Prices for each of the [****] Demo Systems
to be purchased by VisiJet
according to Sections 3.3 and 4 of the Agreement:                 [****]

                                      -22-

<PAGE>

                                   SCHEDULE C

                            MINIMUM ORDER QUANTITIES

                                              PER MONTH            PER YEAR
                                           -----------------------------------
Epi-Tome Systems
          OR                                   [****]               [****]
Lasi-Tome Systems

LASIK-Head
          OR                                   [****]               [****]
Epi-Head

Epi-Blades                                     [****]               [****]

LASIK Blades                                   [****]               [****]

                                      -23-

<PAGE>

                                  SCHEDULE 2.1

Gebauer has entered into distribution agreements with the following entities for
the territories indicated:

[****]

Gebauer and VisiJet will use commercially reasonable efforts to cause these
distributors to become sub-distributors of VisiJet upon, or as soon as
practicable after, the Effective Date.

                                      -24-<PAGE>
                                                                  EXHIBIT 10.11

                          SECURITIES PURCHASE AGREEMENT
                          -----------------------------

                  THIS SECURITIES PURCHASE AGREEMENT ("Agreement") is made as of
the 23 day of July, 2004 by and among VisiJet, Inc., a Delaware corporation (the
"Company"), and the Investors set forth on the signature pages affixed hereto
(each an "Investor" and collectively the "Investors").

                                    RECITALS

                  A. The Company and the Investors are executing and delivering
this Agreement in reliance upon the exemption from securities registration
afforded by the provisions of Regulation D ("Regulation D"), as promulgated by
the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended; and

                  B. The Investors wish to purchase from the Company, and the
Company wishes to sell and issue to the Investors, upon the terms and conditions
stated in this Agreement, (i) an aggregate of $1,000,000 of the Company's 8.0%
Convertible Notes in the form attached hereto as EXHIBIT A (the "Notes"), which
are convertible into shares of the Company's Common Stock, par value $0.001 per
share ("Common Stock"), and (ii) warrants to purchase an aggregate of 750,000
shares of Common Stock in the form attached hereto as EXHIBIT B; and

                  C. Contemporaneous with the sale of the Notes and the
Warrants, the parties hereto are executing and delivering a Registration Rights
Agreement, in the form attached hereto as EXHIBIT C (the "Registration Rights
Agreement"), pursuant to which the Company will agree to provide certain
registration rights under the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder, and applicable state securities laws.

                  In consideration of the mutual promises made herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

         1. DEFINITIONS. In addition to those terms defined above and elsewhere
in this Agreement, for the purposes of this Agreement, the following terms shall
have the meanings set forth below:

                  "AFFILIATE" means, with respect to any Person, any other
Person which directly or indirectly through one or more intermediaries Controls,
is controlled by, or is under common control with, such Person.

                  "BUSINESS DAY" means a day, other than a Saturday or Sunday,
on which banks in New York City are open for the general transaction of
business.

                  "COMMON STOCK EQUIVALENTS" means any securities of the Company
or the Subsidiaries which would entitle the holder thereof to acquire at any
time Common Stock,

                                      -1-

<PAGE>

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.

                  "COMPANY'S KNOWLEDGE" means the actual knowledge of the
executive officers (as defined in Rule 405 under the 1933 Act) of the Company,
after due inquiry.

                  "CONFIDENTIAL INFORMATION" means trade secrets, confidential
information and know-how (including but not limited to ideas, formulae,
compositions, processes, procedures and techniques, research and development
information, computer program code, performance specifications, support
documentation, drawings, specifications, designs, business and marketing plans,
and customer and supplier lists and related information).

                  "CONTROL" (including the terms "controlling", "controlled by"
or "under common control with") means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise.

                  "CONVERSION SHARES" means the shares of Common Stock issuable
upon the conversion of the Notes.

                  "INTELLECTUAL PROPERTY" means all of the following: (i)
patents, patent applications, patent disclosures and inventions (whether or not
patentable and whether or not reduced to practice); (ii) trademarks, service
marks, trade dress, trade names, corporate names, logos, slogans and Internet
domain names, together with all goodwill associated with each of the foregoing;
(iii) copyrights and copyrightable works; (iv) registrations, applications and
renewals for any of the foregoing; and (v) proprietary computer software
(including but not limited to data, data bases and documentation).

                  "LIENS" means any pledge, hypothecation, assignment, deposit
arrangement, lien, charge, claim, security interest, security title, mortgage,
security deed or deed of trust, easement or encumbrance, or preference, priority
or other security agreement or preferential arrangement of any kind or nature
whatsoever (including any lease or title retention agreement, any financing
lease having substantially the same economic effect as any of the foregoing, and
the filing of, or agreement to give, any financing statement perfecting a
security interest under the Uniform Commercial Code or comparable law of any
jurisdiction).

                  "MATERIAL ADVERSE EFFECT" means a material adverse effect on
(i) the assets, liabilities, results of operations, condition (financial or
otherwise), business, or prospects of the Company and its Subsidiaries taken as
a whole, or (ii) the ability of the Company to perform its obligations under the
Transaction Documents.

                  "PAYMENT SHARES" means shares of Common Stock issued as
payment pursuant to Section 4 of the Note.

                                      -2-

<PAGE>

                  "PERMITTED LIENS" means (a) Liens imposed by law for taxes
that are not yet due or are being contested in good faith and for which adequate
reserves have been established in accordance with generally accepted accounting
principles; (b) carriers', warehousemen's, mechanics', materialmen's,
repairmen's and other like Liens imposed by law, arising in the ordinary course
of business and securing obligations that are not overdue by more than 30 days
or that are being contested in good faith and by appropriate proceedings; (c)
pledges and deposits made in the ordinary course of business in compliance with
workers' compensation, unemployment insurance and other social security laws or
regulations; (d) deposits to secure the performance of bids, trade contracts,
leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature, in each case in the ordinary course of
business; (e) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary course
of business that do not secure any monetary obligations and do not materially
detract from the value of the affected property.

                  "PERSON" means an individual, corporation, partnership,
limited liability company, trust, business trust, association, joint stock
company, joint venture, sole proprietorship, unincorporated organization,
governmental authority or any other form of entity not specifically listed
herein.

                  "PURCHASE PRICE" means One Million United States Dollars
($1,000,000).

                  "SEC FILINGS" has the meaning set forth in Section 4.6.

                  "REGISTRATION STATEMENT" has the meaning set forth in the
Registration Rights Agreement.

                  "SECURITIES" means the Notes, the Conversion Shares, the
Payment Shares, the Warrants and the Warrant Shares.

                  "SENIOR DEBT" means up to $3,050,000 to be borrowed by the
Company from ______________ on the terms set forth in the letter of intent dated
________________.

                  "SUBSIDIARY" of any Person means another Person, an amount of
the voting securities, other voting ownership or voting partnership interests of
which is sufficient to elect at least a majority of its Board of Directors or
other governing body (or, if there are no such voting interests, 50% or more of
the equity interests of which) is owned directly or indirectly by such first
Person.

                  "TRANSACTION DOCUMENTS" means this Agreement, the Notes, the
Warrants and the Registration Rights Agreement.

                  "WARRANT SHARES" means the shares of Common Stock issuable
upon the exercise of the Warrants.

                  "1933 ACT" means the Securities Act of 1933, as amended, or
any successor statute, and the rules and regulations promulgated thereunder.

                                      -3-

<PAGE>

                  "1934 ACT" means the Securities Exchange Act of 1934, as
amended, or any successor statute, and the rules and regulations promulgated
thereunder.

         2. PURCHASE AND SALE OF THE NOTES AND WARRANTS. Subject to the terms
and conditions of this Agreement, on the Closing Date, each of the Investors
shall severally, and not jointly, purchase, and the Company shall sell and issue
to the Investors, the Notes and Warrants in the respective amounts set forth
opposite the Investors' names on the signature pages attached hereto in exchange
for the Purchase Price as specified in Section 3 below.

         3. CLOSING. Upon confirmation that the other conditions to closing
specified herein have been satisfied or duly waived by the Investors, the
Company shall deliver to Lowenstein Sandler PC, in trust, (i) one or more Notes
and (ii) a certificate of certificates representing the Warrants, registered in
such name or names as the Investors may designate, with instructions that such
Notes and Warrants are to be held for release to the Investors only upon payment
in full of the Purchase Price to the Company by all the Investors. Upon such
receipt by Lowenstein Sandler PC of the Notes and the Warrants, each Investor
shall promptly, but no more than one Business Day thereafter, cause a wire
transfer in same day funds to be sent to the account of the Company as
instructed in writing by the Company, in an amount representing such Investor's
pro rata portion of the Purchase Price as set forth on the signature pages to
this Agreement. On the date (the "Closing Date") the Company receives the
Purchase Price, the Notes and the Warrants shall be released to the Investors
(the "Closing"). The Closing of the purchase and sale of the Notes and the
Warrants shall take place at the offices of Lowenstein Sandler PC, 1330 Avenue
of the Americas, 21st Floor, New York, New York, or at such other location and
on such other date as the Company and the Investors shall mutually agree.

         4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to the Investors that, except as set forth in the
schedules delivered herewith (collectively, the "Disclosure Schedules"):

                  4. 1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. Each of
the Company and its Subsidiaries is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite corporate power and authority to carry on
its business as now conducted and to own its properties. Each of the Company and
its Subsidiaries is duly qualified to do business as a foreign corporation and
is in good standing in each jurisdiction in which the conduct of its business or
its ownership or leasing of property makes such qualification or leasing
necessary unless the failure to so qualify has not and could not reasonably be
expected to have a Material Adverse Effect. The Company's Subsidiaries are
listed on SCHEDULE 4.1 hereto.

                  4.2 AUTHORIZATION. The Company has full power and authority
and has taken all requisite action on the part of the Company, its officers,
directors and stockholders necessary for (i) the authorization, execution and
delivery of the Transaction Documents, (ii) authorization of the performance of
all obligations of the Company hereunder or thereunder, and (iii) the
authorization, issuance (or reservation for issuance) and delivery of the
Securities. The Transaction Documents constitute the legal, valid and binding
obligations of the Company,

                                      -4-

<PAGE>

enforceable against the Company in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability, relating to or affecting creditors'
rights generally.

                  4.3 CAPITALIZATION. SCHEDULE 4.3 sets forth (a) the authorized
capital stock of the Company on the date hereof; (b) the number of shares of
capital stock issued and outstanding; (c) the number of shares of capital stock
issuable pursuant to the Company's stock plans; and (d) the number of shares of
capital stock issuable and reserved for issuance pursuant to securities (other
than the Notes and the Warrants) exercisable for, or convertible into or
exchangeable for any shares of capital stock of the Company. All of the issued
and outstanding shares of the Company's capital stock have been duly authorized
and validly issued and are fully paid, nonassessable and free of pre-emptive
rights and were issued in full compliance with applicable securities laws and
any rights of third parties. Except as described on SCHEDULE 4.3, all of the
issued and outstanding shares of capital stock of each Subsidiary have been duly
authorized and validly issued and are fully paid, nonassessable and free of
pre-emptive rights, were issued in full compliance with applicable securities
laws and any rights of third parties and are owned by the Company, beneficially
and of record, subject to no Lien or other adverse claim. Except as described on
SCHEDULE 4.3, no Person is entitled to pre-emptive or similar statutory or
contractual rights with respect to any securities of the Company. Except as
described on SCHEDULE 4.3, there are no outstanding warrants, options,
convertible securities or other rights, agreements or arrangements of any
character under which the Company or any of its Subsidiaries is or may be
obligated to issue any equity securities of any kind and except as contemplated
by this Agreement, neither the Company nor any of its Subsidiaries is currently
in negotiations for the issuance of any equity securities of any kind. Except as
described on SCHEDULE 4.3 and except for the Registration Rights Agreement,
there are no voting agreements, buy-sell agreements, option or right of first
purchase agreements or other agreements of any kind among the Company and any of
the securityholders of the Company relating to the securities of the Company
held by them. Except as described on SCHEDULE 4.3 and except as provided in the
Registration Rights Agreement, no Person has the right to require the Company to
register any securities of the Company under the 1933 Act, whether on a demand
basis or in connection with the registration of securities of the Company for
its own account or for the account of any other Person.

                  Except as described on SCHEDULE 4.3, the issuance and sale of
the Securities hereunder will not obligate the Company to issue shares of Common
Stock or other securities to any other Person (other than the Investors) and
will not result in the adjustment of the exercise, conversion, exchange or reset
price of any outstanding security.

                  Except as described on SCHEDULE 4.3, the Company does not have
outstanding stockholder purchase rights or "poison pill" or any similar
arrangement in effect giving any Person the right to purchase any equity
interest in the Company upon the occurrence of certain events.

                  4.4 VALID ISSUANCE. The Notes have been duly and validly
authorized. The Conversion Shares have been duly and validly authorized and,
upon the due conversion of the Notes, and will be validly issued, fully paid and
non-assessable free and clear of all Liens, except

                                      -5-

<PAGE>

for restrictions on transfer set forth in the Transaction Documents or imposed
by applicable securities laws and except for those created by the Investors. The
Payment Shares have been duly and validly authorized and, upon issuance pursuant
to the terms of the Notes, will be validly issued, fully paid and non-assessable
free and clear of all Liens, except for restrictions on transfer set forth in
the Transaction Documents or imposed by applicable securities laws and except
for those created by the Investors. The Warrants have been duly and validly
authorized. Upon the due exercise of the Warrants, the Warrant Shares will be
validly issued, fully paid and non-assessable free and clear of all Liens,
except for restrictions on transfer set forth in the Transaction Documents or
imposed by applicable securities laws and except for those created by the
Investors. The Company has reserved a sufficient number of shares of Common
Stock for issuance of the Conversion Shares, the Payment Shares and the Warrant
Shares, free and clear of all Liens, except for restrictions on transfer set
forth in the Transaction Documents or imposed by applicable securities laws and
except for those created by the Investors.

                  4.5 CONSENTS. The execution, delivery and performance by the
Company of the Transaction Documents and the offer, issuance and sale of the
Securities require no consent of, action by or in respect of, or filing with,
any Person, governmental body, agency, or official other than filings that have
been made pursuant to applicable securities laws and post-sale filings pursuant
to applicable securities laws which the Company undertakes to file within the
applicable time periods. Subject to the accuracy of the representations and
warranties of each Investor set forth in Section 5 hereof, the Company has taken
all action necessary to exempt (i) the issuance and sale of the Securities, (ii)
the issuance of the Conversion Shares upon due conversion of the Notes, (iii)
the issuance of the Payment Shares in accordance with the terms of the Notes,
(iv) the issuance of the Warrant Shares upon the due exercise of the Warrants
and (v) the other transactions contemplated by the Transaction Documents from
the provisions of any shareholder rights plan or other "poison pill"
arrangement, any anti-takeover, business combination or control share law or
statute binding on the Company or to which the Company or any of its assets and
properties may be subject and any provision of the Company's Certificate of
Incorporation or By-laws that is or could reasonably be expected to become
applicable to the Investors as a result of the transactions contemplated hereby,
including without limitation, the issuance of the Securities and the ownership,
disposition or voting of the Securities by the Investors or the exercise of any
right granted to the Investors pursuant to this Agreement or the other
Transaction Documents.

                  4.6 DELIVERY OF SEC FILINGS; BUSINESS. The Company has made
available to the Investors through the EDGAR system, true and complete copies of
the Company's most recent Annual Report on Form 10-KSB for the fiscal year ended
December 31, 2003 (the "10-KSB"), and all other reports filed by the Company
pursuant to the 1934 Act since the filing of the 10-KSB and prior to the date
hereof (collectively, the "SEC Filings"). The SEC Filings are the only filings
required of the Company pursuant to the 1934 Act for such period. The Company
and its Subsidiaries are engaged in all material respects only in the business
described in the SEC Filings and the SEC Filings contain a complete and accurate
description in all material respects of the business of the Company and its
Subsidiaries, taken as a whole.

                                      -6-

<PAGE>

                  4.7 USE OF PROCEEDS. The net proceeds of the sale of the Notes
and the Warrants hereunder shall be used by the Company for working capital and
general corporate purposes.

                  4.8 NO MATERIAL ADVERSE CHANGE. Since December 31, 2003,
except as identified and described in the SEC Filings or as described on
SCHEDULE 4.8, there has not been:

                           (i) any change in the consolidated assets,
liabilities, financial condition or operating results of the Company from that
reflected in the financial statements included in the Company's Quarterly Report
on Form 10-Q for the quarter ended March 31, 2004, except for changes in the
ordinary course of business which have not and could not reasonably be expected
to have a Material Adverse Effect, individually or in the aggregate;

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

                           (iii) any material damage, destruction or loss,
whether or not covered by insurance to any assets or properties of the Company
or its Subsidiaries;

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

                           (v) any satisfaction or discharge of any Lien or
payment of any obligation by the Company or a Subsidiary, except in the ordinary
course of business and which is not material to the assets, properties,
financial condition, operating results or business of the Company and its
Subsidiaries taken as a whole (as such business is presently conducted and as it
is proposed to be conducted);

                           (vi) any change or amendment to the Company's
Certificate of Incorporation or By-laws, or material change to any material
contract or arrangement by which the Company or any Subsidiary is bound or to
which any of their respective assets or properties is subject;

                           (vii) any material labor difficulties or labor union
organizing activities with respect to employees of the Company or any
Subsidiary;

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

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

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

                                      -7-

<PAGE>

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

                  4.9 SEC FILINGS.

                           (a) At the time of filing thereof, the SEC Filings
complied as to form in all material respects with the requirements of the 1934
Act and did not contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not misleading.

                           (b) Each registration statement and any amendment
thereto filed by the Company since January 1, 2002 pursuant to the 1933 Act and
the rules and regulations thereunder, as of the date such statement or amendment
became effective, complied as to form in all material respects with the 1933 Act
and did not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements made therein not misleading; and each prospectus filed pursuant to
Rule 424(b) under the 1933 Act, as of its issue date and as of the closing of
any sale of securities pursuant thereto did not contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading.

                  4.10 NO CONFLICT, BREACH, VIOLATION OR DEFAULT. The execution,
delivery and performance of the Transaction Documents by the Company and the
issuance and sale of the Securities will not conflict with or result in a breach
or violation of any of the terms and provisions of, or constitute a default
under (i) the Company's Certificate of Incorporation or By-laws, both as in
effect on the date hereof (true and complete copies of which have been made
available to the Investors through the EDGAR system), or (ii)(a) any statute,
rule, regulation or order of any governmental agency or body or any court,
domestic or foreign, having jurisdiction over the Company, any Subsidiary or any
of their respective assets or properties, or (b) any agreement or instrument to
which the Company or any Subsidiary is a party or by which the Company or a
Subsidiary is bound or to which any of their respective assets or properties is
subject.

                  4.11 TAX MATTERS. The Company and each Subsidiary has timely
prepared and filed all tax returns required to have been filed by the Company or
such Subsidiary with all appropriate governmental agencies and timely paid all
taxes shown thereon or otherwise owed by it. The charges, accruals and reserves
on the books of the Company in respect of taxes for all fiscal periods are
adequate in all material respects, and there are no material unpaid assessments
against the Company or any Subsidiary nor, to the Company's Knowledge, any basis
for the assessment of any additional taxes, penalties or interest for any fiscal
period or audits by any federal, state or local taxing authority except for any
assessment which is not material to the Company and its Subsidiaries, taken as a
whole. All taxes and other assessments and levies that the Company or any
Subsidiary is required to withhold or to collect for payment have been duly
withheld and collected and paid to the proper governmental entity or third party
when due. There are no tax Liens or claims pending or, to the Company's
Knowledge, threatened against

                                      -8-

<PAGE>

the Company or any Subsidiary or any of their respective assets or property.
Except as described on SCHEDULE 4.11, there are no outstanding tax sharing
agreements or other such arrangements between the Company and any Subsidiary or
other corporation or entity.

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

                  4.13 CERTIFICATES, AUTHORITIES AND PERMITS. The Company and
each Subsidiary possess adequate certificates, authorities or permits issued by
appropriate governmental agencies or bodies necessary to conduct the business
now operated by it, and neither the Company nor any Subsidiary has received any
notice of proceedings relating to the revocation or modification of any such
certificate, authority or permit that, if determined adversely to the Company or
such Subsidiary, could reasonably be expected to have a Material Adverse Effect,
individually or in the aggregate.

                  4.14 NO LABOR DISPUTES. No material labor dispute with the
employees of the Company or any Subsidiary exists or, to the Company's
Knowledge, is imminent.

                  4.15 INTELLECTUAL PROPERTY.

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

                           (b) All of the licenses and sublicenses and consent,
royalty or other agreements concerning Intellectual Property which are necessary
for the conduct of the Company's and each of its Subsidiaries' respective
businesses as currently conducted or as currently proposed to be conducted to
which the Company or any Subsidiary is a party or by which any of their assets
are bound (other than generally commercially available, non-custom,
off-the-shelf software application programs having a retail acquisition price of
less than $10,000 per license) (collectively, "License Agreements") are valid
and binding obligations of the Company or its Subsidiaries that are parties
thereto and, to the Company's Knowledge, the other parties thereto, enforceable
in accordance with their terms, except to the extent that enforcement thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other similar laws affecting the enforcement of creditors' rights
generally, and there exists no event or condition which will result in a
material violation or breach of or

                                      -9-

<PAGE>

constitute (with or without due notice or lapse of time or both) a default by
the Company or any of its Subsidiaries under any such License Agreement, except
as disclosed in the Company's current public disclosure documents.

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

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

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

                           (f) The Company and its Subsidiaries have taken
reasonable steps to protect the Company's and its Subsidiaries' rights in their
Intellectual Property and Confidential Information. Each employee, consultant
and contractor who has had access to Confidential Information which is necessary
for the conduct of Company's and each of its Subsidiaries' respective businesses
as currently conducted or as currently proposed to be conducted has executed an
agreement to maintain the confidentiality of such Confidential Information and
has executed appropriate agreements that are substantially consistent with the
Company's standard forms thereof. Except under confidentiality obligations,
there has been no material disclosure of any of the Company's or its
Subsidiaries' Confidential Information to any third party.

                                      -10-

<PAGE>

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

                  4.17 LITIGATION. Except as disclosed in the Company's current
public disclosure documents, there are no pending actions, suits or proceedings
against or affecting the Company, its Subsidiaries or any of its or their
properties; and to the Company's Knowledge, no such actions, suits or
proceedings are threatened or contemplated.

                  4.18 FINANCIAL STATEMENTS. The financial statements included
in each SEC Filing present fairly, in all material respects, the consolidated
financial position of the Company as of the dates shown and its consolidated
results of operations and cash flows for the periods shown, and such financial
statements have been prepared in conformity with United States generally
accepted accounting principles applied on a consistent basis ("GAAP") (except as
may be disclosed therein or in the notes thereto, and, in the case of quarterly
financial statements, as permitted by Form 10-Q under the 1934 Act). Except as
set forth in the financial statements of the Company included in the SEC Filings
filed prior to the date hereof or as described on SCHEDULE 4.18, neither the
Company nor any of its Subsidiaries has incurred any liabilities, contingent or
otherwise, except those incurred in the ordinary course of business, consistent
(as to amount and nature) with past practices since the date of such financial
statements, none of which, individually or in the aggregate, have had or could
reasonably be expected to have a Material Adverse Effect.

                  4.19 INSURANCE COVERAGE. The Company and each Subsidiary
maintains in full force and effect insurance coverage that is customary for
comparably situated companies for the business being conducted and properties
owned or leased by the Company and each Subsidiary, and the Company reasonably
believes such insurance coverage to be adequate against all liabilities, claims
and risks against which it is customary for comparably situated companies to
insure.

                  4.20 BROKERS AND FINDERS. No Person will have, as a result of
the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company, any Subsidiary or an Investor for
any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company, other than as
described in SCHEDULE 4.20.

                  4.21 NO DIRECTED SELLING EFFORTS OR GENERAL SOLICITATION.
Neither the Company nor any Person acting on its behalf has conducted any
general solicitation or general advertising

                                      -11-

<PAGE>

(as those terms are used in Regulation D) in connection with the offer or sale
of any of the Securities.

                  4.22 NO INTEGRATED OFFERING. Neither the Company nor any of
its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any Company security or solicited any
offers to buy any security, under circumstances that would adversely affect
reliance by the Company on Section 4(2) for the exemption from registration for
the transactions contemplated hereby or would require registration of the
Securities under the 1933 Act.

                  4.23 PRIVATE PLACEMENT. The offer and sale of the Securities
to the Investors as contemplated hereby is exempt from the registration
requirements of the 1933 Act.

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

                  4.25 TRANSACTIONS WITH AFFILIATES. Except as disclosed in the
SEC Filings or as disclosed on SCHEDULE 4.25, none of the officers or directors
of the Company and, to the Company's Knowledge, none of the employees of the
Company is presently a party to any transaction with the Company or any
Subsidiary (other than as holders of stock options and/or warrants, and for
services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
Company's Knowledge, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or
partner.

                  4.26 INTERNAL CONTROLS. The Company is in material compliance
with the provisions of the Sarbanes-Oxley Act of 2002 currently applicable to
the Company. The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management's general or specific
authorization, and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. The Company has established disclosure controls and
procedures (as

                                      -12-

<PAGE>

defined in 1934 Act Rules 13a-14 and 15d-14) for the Company and designed such
disclosure controls and procedures to ensure that material information relating
to the Company, including the Subsidiaries, is made known to the certifying
officers by others within those entities, particularly during the period in
which the Company's most recently filed period report under the 1934 Act, as the
case may be, is being prepared. The Company's certifying officers have evaluated
the effectiveness of the Company's controls and procedures as of the end of the
period covered by the most recently filed periodic report under the 1934 Act
(such date, the "Evaluation Date"). The Company presented in its most recently
filed periodic report under the 1934 Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
have been no significant changes in the Company's internal controls (as such
term is defined in Item 307(b) of Regulation S-K) or, to the Company's
Knowledge, in other factors that could significantly affect the Company's
internal controls. The Company maintains and will continue to maintain a
standard system of accounting established and administered in accordance with
GAAP and the applicable requirements of the 1934 Act.

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

         5. REPRESENTATIONS AND WARRANTIES OF THE INVESTORS. Each of the
Investors hereby severally, and not jointly, represents and warrants to the
Company that:

                  5.1 ORGANIZATION AND EXISTENCE. Such Investor is a validly
existing corporation, limited partnership or limited liability company and has
all requisite corporate, partnership or limited liability company power and
authority to invest in the Securities pursuant to this Agreement.

                  5.2 AUTHORIZATION. The execution, delivery and performance by
such Investor of the Transaction Documents to which such Investor is a party
have been duly authorized and will each constitute the valid and legally binding
obligation of such Investor, enforceable against such Investor in accordance
with their respective terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability,
relating to or affecting creditors' rights generally.

                  5.3 PURCHASE ENTIRELY FOR OWN ACCOUNT. The Securities to be
received by such Investor hereunder will be acquired for such Investor's own
account, not as nominee or agent, and not with a view to the resale or
distribution of any part thereof in violation of the 1933 Act, and such Investor
has no present intention of selling, granting any participation in, or otherwise
distributing the same in violation of the 1933 Act without prejudice, however,
to such Investor's right at all times to sell or otherwise dispose of all or any
part of such Securities in compliance with applicable federal and state
securities laws. Nothing contained herein shall be

                                      -13-

<PAGE>

deemed a representation or warranty by such Investor to hold the Securities for
any period of time. Such Investor is not a broker-dealer registered with the SEC
under the 1934 Act or an entity engaged in a business that would require it to
be so registered.

                  5.4 INVESTMENT EXPERIENCE. Such Investor acknowledges that it
can bear the economic risk and complete loss of its investment in the Securities
and has such knowledge and experience in financial or business matters that it
is capable of evaluating the merits and risks of the investment contemplated
hereby.

                  5.5 DISCLOSURE OF INFORMATION. Such Investor has had an
opportunity to receive all information related to the Company requested by it
and to ask questions of and receive answers from the Company regarding the
Company, its business and the terms and conditions of the offering of the
Securities. Such Investor acknowledges receipt of copies of the SEC Filings.
Neither such inquiries nor any other due diligence investigation conducted by
such Investor shall modify, amend or affect such Investor's right to rely on the
Company's representations and warranties contained in this Agreement.

                  5.6 RESTRICTED SECURITIES. Such Investor understands that the
Securities are characterized as "restricted securities" under the U.S. federal
securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the 1933 Act only in certain limited circumstances.

                  5.7 LEGENDS. It is understood that, except as provided below,
certificates evidencing the Securities may bear the following or any similar
legend:

                           (a) "The securities represented hereby may not be
transferred unless (i) such securities have been registered for sale pursuant to
the Securities Act of 1933, as amended, (ii) such securities may be sold
pursuant to Rule 144(k), or (iii) the Company has received an opinion of counsel
reasonably satisfactory to it that such transfer may lawfully be made without
registration under the Securities Act of 1933 or qualification under applicable
state securities laws."

                           (b) If required by the authorities of any state in
connection with the issuance of sale of the Securities, the legend required by
such state authority.

                  5.8 ACCREDITED INVESTOR. Such Investor is an accredited
investor as defined in Rule 501(a) of Regulation D, as amended, under the 1933
Act.

                  5.9 NO GENERAL SOLICITATION. Such Investor did not learn of
the investment in the Securities as a result of any public advertising or
general solicitation.

                  5.10 BROKERS AND FINDERS. No Person will have, as a result of
the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company, any Subsidiary or an Investor for
any commission, fee or other compensation

                                      -14-

<PAGE>

pursuant to any agreement, arrangement or understanding entered into by or on
behalf of such Investor.

         6. CONDITIONS TO CLOSING.

                  6.1 CONDITIONS TO THE INVESTORS' OBLIGATIONS. The obligation
of each Investor to purchase the Notes and the Warrants at the Closing is
subject to the fulfillment to such Investor's satisfaction, on or prior to the
Closing Date, of the following conditions, any of which may be waived by such
Investor (as to itself only):

                           (a) The representations and warranties made by the
Company in Section 4 hereof qualified as to materiality shall be true and
correct at all times prior to and on the Closing Date, except to the extent any
such representation or warranty expressly speaks as of an earlier date, in which
case such representation or warranty shall be true and correct as of such
earlier date, and, the representations and warranties made by the Company in
Section 4 hereof not qualified as to materiality shall be true and correct in
all material respects at all times prior to and on the Closing Date, except to
the extent any such representation or warranty expressly speaks as of an earlier
date, in which case such representation or warranty shall be true and correct in
all material respects as of such earlier date. The Company shall have performed
in all material respects all obligations and conditions herein required to be
performed or observed by it on or prior to the Closing Date.

                           (b) The Company shall have obtained any and all
consents, permits, approvals, registrations and waivers necessary or appropriate
for consummation of the purchase and sale of the Securities and the consummation
of the other transactions contemplated by the Transaction Documents, all of
which shall be in full force and effect.

                           (c) The Company shall have executed and delivered the
Registration Rights Agreement.

                           (d) No judgment, writ, order, injunction, award or
decree of or by any court, or judge, justice or magistrate, including any
bankruptcy court or judge, or any order of or by any governmental authority,
shall have been issued, and no action or proceeding shall have been instituted
by any governmental authority, enjoining or preventing the consummation of the
transactions contemplated hereby or in the other Transaction Documents.

                           (e) The Company shall have delivered a Certificate,
executed on behalf of the Company by its Chief Executive Officer or its Chief
Financial Officer, dated as of the Closing Date, certifying to the fulfillment
of the conditions specified in subsections (a), (b), (d) and (h) of this Section
6.1.

                           (f) The Company shall have delivered a Certificate,
executed on behalf of the Company by its Secretary, dated as of the Closing
Date, certifying the resolutions adopted by the Board of Directors of the
Company approving the transactions contemplated by this Agreement and the other
Transaction Documents and the issuance of the Securities, certifying the current
versions of the Certificate of Incorporation and By-laws of the Company

                                      -15-

<PAGE>

and certifying as to the signatures and authority of persons signing the
Transaction Documents and related documents on behalf of the Company.

                           (h) The Investors shall have received an opinion from
the Company's counsel, dated as of the Closing Date, in form and substance
reasonably acceptable to the Investors and addressing such legal matters as the
Investors may reasonably request.

                           (i) No stop order or suspension of trading shall have
been imposed by Nasdaq, the SEC or any other governmental or regulatory body
with respect to public trading in the Common Stock.

                  6.2 CONDITIONS TO OBLIGATIONS OF THE COMPANY. The Company's
obligation to sell and issue the Notes and the Warrants at the Closing is
subject to the fulfillment to the satisfaction of the Company on or prior to the
Closing Date of the following conditions, any of which may be waived by the
Company:

                           (a) The representations and warranties made by the
Investors in Section 5 hereof, other than the representations and warranties
contained in Sections 5.3, 5.4, 5.5, 5.6, 5.7, 5.8 and 5.9 (the "Investment
Representations"), shall be true and correct in all material respects when made,
and shall be true and correct in all material respects on the Closing Date with
the same force and effect as if they had been made on and as of said date. The
Investment Representations shall be true and correct in all respects when made,
and shall be true and correct in all respects on the Closing Date with the same
force and effect as if they had been made on and as of said date. The Investors
shall have performed in all material respects all obligations and conditions
herein required to be performed or observed by them on or prior to the Closing
Date.

                           (b) The Investors shall have executed and delivered
the Registration Rights Agreement.

                           (c) The Investors shall have delivered the Purchase
Price to the Company.

                  6.3 TERMINATION OF OBLIGATIONS TO EFFECT CLOSING; EFFECTS.

                           (a) The obligations of the Company, on the one hand,
and the Investors, on the other hand, to effect the Closing shall terminate as
follows:

                                    (i) Upon the mutual written consent of the
Company and the Investors;

                                    (ii) By the Company if any of the conditions
set forth in Section 6.2 shall have become incapable of fulfillment, and shall
not have been waived by the Company;

                                      -16-

<PAGE>

                                    (iii) By an Investor (with respect to itself
only) if any of the conditions set forth in Section 6.1 shall have become
incapable of fulfillment, and shall not have been waived by the Investor; or

                                    (iv) By either the Company or any Investor
(with respect to itself only) if the Closing has not occurred on or prior to
July 30, 2004;

provided, however, that, except in the case of clause (i) above, the party
seeking to terminate its obligation to effect the Closing shall not then be in
breach of any of its representations, warranties, covenants or agreements
contained in this Agreement or the other Transaction Documents if such breach
has resulted in the circumstances giving rise to such party's seeking to
terminate its obligation to effect the Closing.

                           (b) In the event of termination by the Company or any
Investor of its obligations to effect the Closing pursuant to this Section 6.3,
written notice thereof shall forthwith be given to the other Investors and the
other Investors shall have the right to terminate their obligations to effect
the Closing upon written notice to the Company and the other Investors. Nothing
in this Section 6.3 shall be deemed to release any party from any liability for
any breach by such party of the terms and provisions of this Agreement or the
other Transaction Documents or to impair the right of any party to compel
specific performance by any other party of its obligations under this Agreement
or the other Transaction Documents.

         7. COVENANTS AND AGREEMENTS OF THE COMPANY.

                  7.1 RESERVATION OF COMMON STOCK. The Company shall at all
times reserve and keep available out of its authorized but unissued shares of
Common Stock such number of shares of Common Stock as shall from time to time
equal the number of shares sufficient to permit the conversion of the Notes, the
issuance of the Payment Shares and the exercise of the Warrants in accordance
with their respective terms.

                  7.2 REPORTS. The Company will furnish to such Investors and/or
their assignees such information relating to the Company and its Subsidiaries as
from time to time may reasonably be requested by such Investors and/or their
assignees; provided, however, that the Company shall not disclose material
nonpublic information to the Investors, or to advisors to or representatives of
the Investors, unless prior to disclosure of such information the Company
identifies such information as being material nonpublic information and provides
the Investors, such advisors and representatives with the opportunity to accept
or refuse to accept such material nonpublic information for review and any
Investor wishing to obtain such information enters into an appropriate
confidentiality agreement with the Company with respect thereto.

                  7.3 NO CONFLICTING AGREEMENTS. The Company will not take any
action, enter into any agreement or make any commitment that would conflict or
interfere in any material respect with the Company's obligations to the
Investors under the Transaction Documents.

                  7.4 INSURANCE. The Company shall not materially reduce the
insurance coverages described in Section 4.19.

                                      -17-

<PAGE>

                  7.5 COMPLIANCE WITH LAWS. The Company will comply in all
material respects with all applicable laws, rules, regulations, orders and
decrees of all governmental authorities.

                  7.6 FUTURE LISTING OF UNDERLYING SHARES. If the Company
applies to have its Common Stock or other securities traded on any stock
exchange or market, it shall include in such application the Conversion Shares,
the Payment Shares and the Warrant Shares and will take such other action as is
necessary to cause such Common Stock to be so listed. The Company will use
commercially reasonable efforts to continue the listing and trading of its
Common Stock on such exchange or market and, in accordance, therewith, will use
commercially reasonable efforts to comply in all respects with the Company's
reporting, filing and other obligations under the bylaws or rules of such market
or exchange, as applicable.

                  7.7 TERMINATION OF COVENANTS. The provisions of Sections 7.2
through 7.5 shall terminate and be of no further force and effect on the date on
which the Company's obligations under the Registration Rights Agreement to
register or maintain the effectiveness of any registration covering the
Registrable Securities (as such term is defined in the Registration Rights
Agreement) shall terminate.

                  7.8 REMOVAL OF LEGENDS. Upon the earlier of (i) registration
for resale pursuant to the Registration Rights Agreement and receipt by the
Company of the Investor's written confirmation that such Securities will not be
disposed of except in compliance with the prospectus delivery requirements of
the 1933 Act or (ii) Rule 144(k) becoming available the Company shall, upon an
Investor's written request, promptly cause certificates evidencing the
Investor's Securities to be replaced with certificates which do not bear such
restrictive legends, and Conversion Shares subsequently issued upon due
conversion of the Notes, Payment Shares subsequently issued under the terms of
the Notes and Warrant Shares subsequently issued upon due exercise of the
Warrants shall not bear such restrictive legends provided the provisions of
either clause (i) or clause (ii) above, as applicable, are satisfied with
respect to such Conversion Shares, Payment Shares and Warrant Shares, as
applicable. When the Company is required to cause unlegended certificates to
replace previously issued legended certificates, if unlegended certificates are
not delivered to an Investor within three (3) Business Days of submission by
that Investor of legended certificate(s) to the Company's transfer agent
together with a representation letter in customary form, the Company shall be
liable to the Investor for liquidated damages in an amount equal to 1% of the
aggregate purchase price of the Securities evidenced by such certificate(s) for
each thirty (30) day period (or portion thereof) beyond such three (3) Business
Day that the unlegended certificates have not been so delivered.

                  7.9 NEGATIVE PLEDGE. So long as any amounts are outstanding
under the Notes, the Company shall not, and shall cause each of its Subsidiaries
not to, create, incur, assume or suffer to exist any Lien upon any of its
property, whether now owned or hereafter acquired other than (i) Liens securing
the Senior Debt, (ii) Permitted Liens and (iii) indebtedness for borrowed money
which is subordinated in right of payment to the Notes on terms reasonably
satisfactory to the Investors.

                                      -18-

<PAGE>

         8. SURVIVAL AND INDEMNIFICATION.

                  8.1 SURVIVAL. The representations, warranties, covenants and
agreements contained in this Agreement shall survive the Closing of the
transactions contemplated by this Agreement.

                  8.2 INDEMNIFICATION. The Company agrees to indemnify and hold
harmless each Investor and its Affiliates and their respective directors,
officers, employees and agents from and against any and all losses, claims,
damages, liabilities and expenses (including without limitation reasonable
attorney fees and disbursements and other expenses incurred in connection with
investigating, preparing or defending any action, claim or proceeding, pending
or threatened and the costs of enforcement thereof) (collectively, "Losses") to
which such Person may become subject as a result of any breach of
representation, warranty, covenant or agreement made by or to be performed on
the part of the Company under the Transaction Documents, and will reimburse any
such Person for all such amounts as they are incurred by such Person.

                  8.3 CONDUCT OF INDEMNIFICATION PROCEEDINGS. Promptly after
receipt by any Person (the "Indemnified Person") of notice of any demand, claim
or circumstances which would or might give rise to a claim or the commencement
of any action, proceeding or investigation in respect of which indemnity may be
sought pursuant to Section 8.2, such Indemnified Person shall promptly notify
the Company in writing and the Company shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to such Indemnified
Person, and shall assume the payment of all fees and expenses; PROVIDED,
HOWEVER, that the failure of any Indemnified Person so to notify the Company
shall not relieve the Company of its obligations hereunder except to the extent
that the Company is materially prejudiced by such failure to notify. In any such
proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless: (i) the Company and the Indemnified Person shall
have mutually agreed to the retention of such counsel; or (ii) in the reasonable
judgment of counsel to such Indemnified Person representation of both parties by
the same counsel would be inappropriate due to actual or potential differing
interests between them. The Company shall not be liable for any settlement of
any proceeding effected without its written consent, which consent shall not be
unreasonably withheld, but if settled with such consent, or if there be a final
judgment for the plaintiff, the Company shall indemnify and hold harmless such
Indemnified Person from and against any loss or liability (to the extent stated
above) by reason of such settlement or judgment. Without the prior written
consent of the Indemnified Person, which consent shall not be unreasonably
withheld, the Company shall not effect any settlement of any pending or
threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Person from all liability arising out of such proceeding.

         9. MISCELLANEOUS.

                  9.1 SUCCESSORS AND ASSIGNS. This Agreement may not be assigned
by a party hereto without the prior written consent of the Company or the
Investors, as applicable,

                                      -19-

<PAGE>

provided, however, that an Investor may assign its rights and delegate its
duties hereunder in whole or in part to an Affiliate or to a third party
acquiring some or all of its Securities in a private transaction without the
prior written consent of the Company or the other Investors, after notice duly
given by such Investor to the Company and the other Investors, provided, that no
such assignment or obligation shall affect the obligations of such Investor
hereunder. The provisions of this Agreement shall inure to the benefit of and be
binding upon the respective permitted successors and assigns of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns
any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

                  9.2 COUNTERPARTS; FAXES. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. This Agreement may
also be executed via facsimile, which shall be deemed an original.

                  9.3 TITLES AND SUBTITLES. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

                  9.4 NOTICES. Unless otherwise provided, any notice required or
permitted under this Agreement shall be given in writing and shall be deemed
effectively given as hereinafter described (i) if given by personal delivery,
then such notice shall be deemed given upon such delivery, (ii) if given by
telex or telecopier, then such notice shall be deemed given upon receipt of
confirmation of complete transmittal, (iii) if given by mail, then such notice
shall be deemed given upon the earlier of (A) receipt of such notice by the
recipient or (B) three days after such notice is deposited in first class mail,
postage prepaid, and (iv) if given by an internationally recognized overnight
air courier, then such notice shall be deemed given one business day after
delivery to such carrier. All notices shall be addressed to the party to be
notified at the address as follows, or at such other address as such party may
designate by ten days' advance written notice to the other party:

                           If to the Company:

                                VisiJet, Inc.
                                192 Technology Drive, Suite Q Irvine,
                                California 92618
                                Attention: Larry Schreiber
                                Fax: 949.453.9652

                           If to the Investors:

to the addresses set forth on the signature pages hereto.

                                      -20-

<PAGE>

                  9.5 EXPENSES. The parties hereto shall pay their own costs and
expenses in connection herewith, except that the Company shall pay the
reasonable fees and expenses of counsel to the Investors. Such expenses shall be
paid not later than the Closing. The Company shall reimburse the Investors upon
demand for all reasonable out-of-pocket expenses incurred by the Investors,
including without limitation reimbursement of attorneys' fees and disbursements,
in connection with any amendment, modification or waiver of this Agreement or
the other Transaction Documents. In the event that legal proceedings are
commenced by any party to this Agreement against another party to this Agreement
in connection with this Agreement or the other Transaction Documents, the party
or parties which do not prevail in such proceedings shall severally, but not
jointly, pay their pro rata share of the reasonable attorneys' fees and other
reasonable out-of-pocket costs and expenses incurred by the prevailing party in
such proceedings.

                  9.6 AMENDMENTS AND WAIVERS. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the Investors.
Any amendment or waiver effected in accordance with this paragraph shall be
binding upon each holder of any Securities purchased under this Agreement at the
time outstanding, each future holder of all such Securities, and the Company.

                  9.7 PUBLICITY. Except as set forth below, no public release or
announcement concerning the transactions contemplated hereby shall be issued by
the Company or the Investors without the prior consent of the Company (in the
case of a release or announcement by the Investors) or the Investors (in the
case of a release or announcement by the Company) (which consents shall not be
unreasonably withheld), except as such release or announcement may be required
by law or the applicable rules or regulations of any securities exchange or
securities market, in which case the Company or the Investors, as the case may
be, shall allow the Investors or the Company, as applicable, to the extent
reasonably practicable in the circumstances, reasonable time to comment on such
release or announcement in advance of such issuance. By 8:30 a.m. (New York City
time) on the trading day immediately following the Closing Date, the Company
shall issue a press release disclosing the consummation of the transactions
contemplated by this Agreement. No later than the third trading day following
the Closing Date, the Company will file a Current Report on Form 8-K attaching
the press release described in the foregoing sentence as well as copies of the
Transaction Documents. In addition, the Company will make such other filings and
notices in the manner and time required by the SEC and Nasdaq. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of any Investor,
or include the name of any Investor in any filing with the SEC (other than the
Registration Statement and any exhibits to filings made in respect of this
transaction in accordance with periodic filing requirements under the 1934 Act)
or any regulatory agency or Nasdaq, without the prior written consent of such
Investor, except to the extent such disclosure is required by law or trading
market regulations, in which case the Company shall provide the Investors with
prior notice of such disclosure.

                  9.8 SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof but shall be

                                      -21-

<PAGE>

interpreted as if it were written so as to be enforceable to the maximum extent
permitted by applicable law, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. To the extent permitted by applicable law, the parties
hereby waive any provision of law which renders any provision hereof prohibited
or unenforceable in any respect.

                  9.9 ENTIRE AGREEMENT. This Agreement, including the Exhibits
and the Disclosure Schedules, and the other Transaction Documents constitute the
entire agreement among the parties hereof with respect to the subject matter
hereof and thereof and supersede all prior agreements and understandings, both
oral and written, between the parties with respect to the subject matter hereof
and thereof.

                  9.10 FURTHER ASSURANCES. The parties shall execute and deliver
all such further instruments and documents and take all such other actions as
may reasonably be required to carry out the transactions contemplated hereby and
to evidence the fulfillment of the agreements herein contained.

                  9.11 GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York without regard to the choice of law
principles thereof. Each of the parties hereto irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York located in New
York County and the United States District Court for the Southern District of
New York for the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Agreement and the transactions contemplated hereby.
Service of process in connection with any such suit, action or proceeding may be
served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement. Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

                  9.12 INDEPENDENT NATURE OF INVESTORS' OBLIGATIONS AND RIGHTS.
The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be
responsible in any way for the performance of the obligations of any other
Investor under any Transaction Document. The decision of each Investor to
purchase Securities pursuant to the Transaction Documents has been made by such
Investor independently of any other Investor. Nothing contained herein or in any
Transaction Document, and no action taken by any Investor pursuant thereto,
shall be deemed to constitute the Investors as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
Investors are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Documents. Each
Investor acknowledges that no other Investor has acted as agent for such
Investor in connection with

                                      -22-

<PAGE>

making its investment hereunder and that no Investor will be acting as agent of
such Investor in connection with monitoring its investment in the Securities or
enforcing its rights under the Transaction Documents. Each Investor shall be
entitled to independently protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other Investor to
be joined as an additional party in any proceeding for such purpose. The Company
acknowledges that each of the Investors has been provided with the same
Transaction Documents for the purpose of closing a transaction with multiple
Investors and not because it was required or requested to do so by any Investor.

                            [signature page follows]

                                      -23-

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement or caused
their duly authorized officers to execute this Agreement as of the date first
above written.

The Company:                       VISIJET, INC.

                                   By: /s/ Laurence M. Schreiber
                                   --------------------------------
                                   Name: Laurence M. Schreiber
                                   Title: COO, Corporate Secretary and Treasurer

                                      -24-

<PAGE>

The Investors:                      LIBERTYVIEW SPECIAL OPPORTUNITIES FUND, LP

                                    By: /s/ Steven S. Rogers
                                    ------------------------------
                                    Name: Steven S. Rogers
                                    Title: Authorized Person

Aggregate Purchase Price: $1,000,000
Number of Warrants: 750,000

Address for Notice:
                                    111 River Street -- Suite 1000
                                    Hoboken, NJ 07030-5776
                                    Attn: Steven S. Rogers
                                    Telephone: 201.595.2950
                                    Facsimile: 201.216.8625

                                    with a copy to:

                                    Lowenstein Sandler PC
                                    65 Livingston Avenue
                                    Roseland, NJ 07068
                                    Attn: John D. Hogoboom, Esq.
                                    Telephone: 973.597.2500
                                    Facsimile: 973.597.2400

                                      -25-

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