BRIDGE LOAN AGREEMENT

Re:

Infinium Labs Oct 04 Transaction

2.  LENDER REPRESENTATIONS, WARRANTIES, ETC.; ACCESS TO
INFORMATION; INDEPENDENT INVESTIGATION.

The Lender represents and warrants to, and covenants and agrees with, the Company
as follows:

a.

Without limiting Lender's right to sell the Securities pursuant to an effective
registration statement or otherwise in compliance with the 1933 Act, the Lender is purchasing the
Securities for its own account for investment only and not with a view towards the public sale or
distribution thereof and not with a view to or for sale in connection with any distribution thereof.

b.

The Lender is (i) an “accredited investor” as that term is defined in Rule 501
of the General Rules and Regulations under the 1933 Act by reason of Rule 501(a)(3), (ii)
experienced in making investments of the kind described in this Agreement and the related
documents, (iii) able, by reason of the business and financial experience of its officers (if an entity)
and professional advisors (who are not affiliated with or compensated in any way by the Company
or any of its Affiliates or selling agents), to protect its own interests in connection with the
transactions described in this Agreement, and the related documents, and to evaluate the merits and
risks of an investment in the Securities, and (iv) able to afford the entire loss of its investment in the
Securities.

c.

All subsequent offers and sales of the Securities by the Lender shall be made
pursuant to registration of the relevant Securities under the 1933 Act or pursuant to an exemption
from registration.

d.

The Lender understands that the Securities are being offered and sold to it in
reliance on specific exemptions from the registration requirements of the 1933 Act and state
securities laws and that the Company is relying upon the truth and accuracy of, and the Lender's
compliance with, the representations, warranties, agreements, acknowledgments and understandings
of the Lender set forth herein in order to determine the availability of such exemptions and the
eligibility of the Lender to acquire the Securities.

e.

The Lender and its advisors, if any, have been furnished with or have been
given access to all materials relating to the business, finances and operations of the Company and

materials relating to the offer and sale of the Securities which have been requested by the Lender,
including those set forth on in any annex attached hereto. The Lender and its advisors, if any, have
been afforded the opportunity to ask questions of the Company and its management and have
received complete and satisfactory answers to any such inquiries.  Without limiting the generality
of the foregoing, the Lender has also had the opportunity to obtain and to review the Company's
filings on EDGAR listed on Annex VI hereto (the documents listed on such Annex VI, to the extent
available on EDGAR or otherwise provided to the Lender as indicated on said Annex VI,
collectively, the “Company's SEC Documents”).

f.

The Lender understands that its investment in the Securities involves a high
degree of risk.

g.

The Lender hereby represents that, in connection with its purchase of the
Securities, it has not relied on any statement or representation by the Company or the Finder or any
of their respective officers, directors and employees or any of their respective attorneys or agents or
the Finder, except as specifically set forth herein.  The Finder is a third party beneficiary of this
provision.

h.

The Lender understands that no United States federal or state agency or any
other government or governmental agency has passed on or made any recommendation or
endorsement of the Securities.

i.

This Agreement and the other Transaction Agreements to which the Lender
is a party, and the transactions contemplated thereby, have been duly and validly authorized,
executed and delivered on behalf of the Lender and are valid and binding agreements of the Lender
enforceable in accordance with their respective terms, subject as to enforceability to general
principles of equity and to bankruptcy, insolvency, moratorium and other similar laws affecting the
enforcement of creditors' rights generally.

3.

COMPANY REPRESENTATIONS, ETC.   The Company represents and
warrants to the Lender as of the date hereof and as of the Closing Date that, except as otherwise
provided in Annex V hereto or in the Company’s SEC Documents:

a.

Rights of Others Affecting the Transactions.  There are no preemptive
rights of any shareholder of the Company, as such, to acquire the Notes, the Warrants or the Shares.  
No party other than a Lender or an Other Lender has a currently exercisable right of first refusal
which would be applicable to any or all of the transactions contemplated by the Transaction
Agreements.

b.

Status.  The Company is a corporation duly organized, validly existing and
in good standing under the laws of the State of Incorporation and has the requisite corporate power
to own its properties and to carry on its business as now being conducted.  The Company is duly
qualified as a foreign corporation to do business and is in good standing in each jurisdiction where

the nature of the business conducted or property owned by it makes such qualification necessary,
other than those jurisdictions in which the failure to so qualify would not have or result in a Material
Adverse Effect.  The Company has registered its stock and is obligated to file reports pursuant to
Section 12 or Section 15(d) of the Securities and Exchange Act of 1934, as amended (the “1934
Act”).  The Common Stock is quoted on the Principal Trading Market.  The Company has received
no notice, either oral or written, with respect to the continued eligibility of the Common Stock for
such quotation on the Principal Trading Market, and the Company has maintained all requirements
on its part for the continuation of such quotation.

c.

Authorized Shares.

(i)

The authorized capital stock of the Company consists of (i) 200,000,000 shares of
Common Stock, $.0001 par value per share, of which approximately 111,275,903 shares  are
outstanding as of the date hereof, and (ii) approximately 1,300,000 shares of common stock
underlying warrants.

(ii)

As of the date hereof and as of the Closing Date, (1) there are no outstanding
securities which are convertible into shares of Common Stock, whether such conversion is currently
exercisable or exercisable only upon some future date or the occurrence of some event in the future
and (2) the Company has not issued any warrants or other rights to acquire shares of the Common
Stock other than those referred to in the Company’s SEC Documents.  If any such securities are
listed on Annex VI, the number or amount of each such outstanding convertible security and the
conversion terms thereof or of each such warrant or other right and the terms of its exercise are set
forth in said Annex VI.

(iii)

All issued and outstanding shares of Common Stock have been duly authorized and
validly issued and are fully paid and non-assessable.  The Company has sufficient authorized and
unissued shares of Common Stock as may be necessary to effect the issuance of the Shares on the
Closing Date.  

(iv)

As of the Closing Date, the Shares shall have been duly authorized by all necessary
corporate action on the part of the Company, and, when issued on the Closing Date or upon exercise
of the Warrants or pursuant to other relevant provisions of the Transaction Agreements, in each case
in accordance with their respective terms, will be duly and validly issued, fully paid and non-
assessable and will not subject the Holder thereof to personal liability by reason of being such
Holder.

d.

Transaction Agreements and Stock.  This Agreement and each of the other
Transaction Agreements, and the transactions contemplated thereby, have been duly and validly
authorized by the Company, this Agreement has been duly executed and delivered by the Company
and this Agreement is, and the Notes, the Warrants and each of the other Transaction Agreements,
when executed and delivered by the Company, will be, valid and binding agreements of the
Company enforceable in accordance with their respective terms, subject as to enforceability to

general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws
affecting the enforcement of creditors' rights generally.

e.

Non-contravention.  The execution and delivery of this Agreement and each
of the other Transaction Agreements by the Company, the issuance of the Securities, and the
consummation by the Company of the other transactions contemplated by this Agreement, the Notes,
the Warrants and the other Transaction Agreements do not and will not conflict with or result in a
breach by the Company of any of the terms or provisions of, or constitute a default under (i) the
certificate of incorporation or by-laws of the Company, each as currently in effect, (ii) any indenture,
mortgage, deed of trust, or other material agreement or instrument to which the Company is a party
or by which it or any of its properties or assets are bound, including any listing agreement for the
Common Stock except as herein set forth, or (iii) to its knowledge, any existing applicable law, rule,
or regulation or any applicable decree, judgment, or order of any court, United States federal or state
regulatory body, administrative agency, or other governmental body having jurisdiction over the
Company or any of its properties or assets, except such conflict, breach or default which would not
have or result in a Material Adverse Effect.

f.

Approvals.  No authorization, approval or consent of any court, governmental
body, regulatory agency, self-regulatory organization, or stock exchange or market or the
shareholders of the Company is required to be obtained by the Company for the issuance and sale
of the Securities to the Lender as contemplated by this Agreement, except such authorizations,
approvals and consents that have been obtained.

g.

Filings.  None of the Company’s SEC Documents contained, at the time they
were filed, any untrue statement of a material fact or omitted to state any material fact required to
be stated therein or necessary to make the statements made therein in light of the circumstances
under which they were made, not misleading.  Since January 1, 2004, the Company has timely filed
all requisite forms, reports and exhibits thereto required to be filed by the Company with the SEC.

h.

Absence of Certain Changes.  Since the Last Audited Date, there has been
no material adverse change and no Material Adverse Effect, except as disclosed in the Company’s
SEC Documents. Since the Last Audited Date, except as provided in the Company’s SEC
Documents, the Company has not (i) incurred or become subject to any material liabilities (absolute
or contingent) except liabilities incurred in the ordinary course of business consistent with past
practices; (ii) discharged or satisfied any material lien or encumbrance or paid any material
obligation or liability (absolute or contingent), other than current liabilities paid in the ordinary
course of business consistent with past practices; (iii) declared or made any payment or distribution
of cash or other property to shareholders with respect to its capital stock, or purchased or redeemed,
or made any agreements to purchase or redeem, any shares of its capital stock; (iv) sold, assigned
or transferred any other tangible assets, or canceled any debts owed to the Company by any third
party  or claims of the Company against any third party, except in the ordinary course of business
consistent with past practices; (v) waived any rights of material value, whether or not in the ordinary
course of business, or suffered the loss of any material amount of existing business; (vi) made any
increases in employee compensation, except in the ordinary course of business consistent with past

practices; or (vii) experienced any material problems with labor or management in connection with
the terms and conditions of their employment.

i.

Full Disclosure.  To the best of the Company’s knowledge, there is no fact
known to the Company (other than general economic conditions known to the public generally or
as disclosed in the Company’s SEC Documents) that has not been disclosed in writing to the Lender
that would reasonably be expected to have or result in a Material Adverse Effect.

j.

Absence of Litigation.  There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board or body pending or, to the knowledge of the
Company, threatened against or affecting the Company before or by any governmental authority or
nongovernmental department, commission, board, bureau, agency or instrumentality or any other
person, wherein an unfavorable decision, ruling or finding would have a Material Adverse Effect or
which would adversely affect the validity or enforceability of, or the authority or ability of the
Company to perform its obligations under, any of the Transaction Agreements.  The Company is not
aware of any valid basis for any such claim that (either individually or in the aggregate with all other
such events and circumstances) could reasonably be expected to have a Material Adverse Effect.
There are no outstanding or unsatisfied judgments, orders, decrees, writs, injunctions or stipulations
to which the Company is a party or by which it or any of its properties is bound, that involve the
transaction contemplated herein or that, alone or in the aggregate, could reasonably be expect to have
a Material Adverse Effect.

k.

Absence of Events of Default.  Except as set forth in Section 3(e) hereof, (i)
neither the Company nor any of its subsidiaries is in default in the performance or observance of any
material obligation, agreement, covenant or condition contained in any material indenture, mortgage,
deed of trust or other material agreement to which it is a party or by which its property is bound, and
(ii) no Event of Default (or its equivalent term), as defined in the respective agreement to which the
Company or its subsidiary is a party, and no event which, with the giving of notice or the passage
of time or both, would become an Event of Default (or its equivalent term) (as so defined in such
agreement), has occurred and is continuing, which would have a Material Adverse Effect.

l.

Absence of Certain Company Control Person Actions or Events.  To the
Company’s knowledge, none of the following has occurred during the past five (5) years with respect
to a Company Control Person:

(1) A petition under the federal bankruptcy laws or any state insolvency law was filed by or
against, or a receiver, fiscal agent or similar officer was appointed by a court for the business
or property of such Company Control Person, or any partnership in which he was a general
partner at or within two years before the time of such filing, or any corporation or business
association of which he was an executive officer at or within two years before the time of
such filing;

(2) Such Company Control Person was convicted in a criminal proceeding or is a named
subject of a pending criminal proceeding (excluding traffic violations and other minor
offenses);

(3) Such Company Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining him from, or otherwise limiting, the following
activities:

(i) acting, as an investment advisor, underwriter, broker or dealer in
securities, or as an affiliated person, director or employee of any investment
company, bank, savings and loan association or insurance company, as a
futures commission merchant, introducing broker, commodity trading
advisor, commodity pool operator, floor broker, any other Person regulated
by the Commodity Futures Trading Commission ("CFTC") or engaging in or
continuing any conduct or practice in connection with such activity;

(ii) engaging in any type of business practice; or

(iii) engaging in any activity in connection with the purchase or sale of any
security or commodity or in connection with any violation of federal or state
securities laws or federal commodities laws;

(4) Such Company Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any federal or state authority barring,
suspending or otherwise limiting for more than 60 days the right of such Company Control
Person to engage in any activity described in paragraph (3) of this item, or to be associated
with Persons engaged in any such activity; or

(5) Such Company Control Person was found by a court of competent jurisdiction in a civil
action or by the CFTC or SEC to have violated any federal or state securities law, and the
judgment in such civil action or finding by the CFTC or SEC has not been subsequently
reversed, suspended, or vacated.

m.

No Undisclosed Liabilities or Events.  To the best of the Company’s
knowledge, the Company has no liabilities or obligations other than those disclosed in the
Transaction Agreements or the Company's SEC Documents or those incurred in the ordinary course
of the Company's business since the Last Audited Date, or which individually or in the aggregate,
do not or would not have a Material Adverse Effect. No event or circumstances has occurred or
exists with respect to the Company or its properties, business, operations, condition (financial or
otherwise), or results of operations, which, under applicable law, rule or regulation, requires public
disclosure or announcement prior to the date hereof by the Company but which has not been so
publicly announced or disclosed.  There are no proposals currently under consideration or currently
anticipated to be under consideration by the Board of Directors or the executive officers of the

Company which proposal would (x) change the articles or certificate of incorporation or other charter
document or by-laws of the Company, each as currently in effect, with or without shareholder
approval, which change would reduce or otherwise adversely affect the rights and powers of the
shareholders of the Common Stock or (y) materially or substantially change the business, assets or
capital of the Company, including its interests in subsidiaries.

n.

No Integrated Offering.  Neither the Company nor any of its Affiliates nor
any Person acting on its or their behalf has, directly or indirectly, at any time since March 1, 2004,
made any offer or sales of any security or solicited any offers to buy any security under
circumstances that would eliminate the availability of the exemption from registration under
Regulation D in connection with the offer and sale of the Securities as contemplated hereby.

o.

Dilution.  The Issued Shares and the number of shares issuable on exercise
of the Warrants may have a dilutive effect on the ownership interests of the other shareholders (and
Persons having the right to become shareholders) of the Company.  The Company's executive
officers and directors have studied and fully understand the nature of the Securities being sold hereby
and recognize that they have such a potential dilutive effect.  The board of directors of the Company
has concluded, in its good faith business judgment, that such issuance is in the best interests of the
Company.  The Company specifically acknowledges that its obligation to issue the Warrant Shares
upon exercise of the Warrants is binding upon the Company and enforceable regardless of the
dilution such issuance may have on the ownership interests of other shareholders of the Company,
and the Company will honor such obligations, including honoring every Notice of Exercise (as
contemplated by the Warrants), unless the Company is subject to an injunction (which injunction
was not sought by the Company) prohibiting the Company from doing so.

p.

Recognition of Pledge Agreement and Pledged Shares.  The Company
acknowledges that the execution and delivery of the Pledge Agreement, and the fulfillment o f the
terms thereof, is a condition to the closing of the Transactions.  The Company will recognize the
terms of the Pledge Agreement and, as provided therein, the transfer of the Pledged Shares to the
Lenders and will take no position or give the Transfer Agent any instructions which would be
inconsistent with the rights of the Lenders to have the Pledged Shares transferred to the Lenders in
accordance with the terms of the Pledge Agreement.

q.

Fees to Brokers, Finders and Others.  Except for payment of the fees to the
Finder’s Compensation (as defined below)  to the Finder, payment of which is the sole responsibility
of the Company, the Company has taken no action which would give rise to any claim by any Person
for brokerage commission, finder's fees or similar payments by Lender relating to this Agreement
or the transactions contemplated hereby.  Lender shall have no obligation with respect to such fees
or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated
in this paragraph that may be due in connection with the transactions contemplated hereby.  The
Company shall indemnify and hold harmless each of Lender, its employees, officers, directors,
agents, and partners, and their respective Affiliates, from and against all claims, losses, damages,
costs (including the costs of preparation and attorney's fees) and expenses suffered in respect of any
such claimed or existing fees, as and when incurred.  The term “Finder’s Compensation” means, in

connection with the consummation of the transactions contemplated by this Agreement, a cash fee
and expense allowance in the amount  contemplated by the Joint Escrow Instructions.

r.

Confirmation.  The Company confirms that all statements of the Company
contained herein shall survive acceptance of this Agreement by the Lender.  The Company agrees
that, if any events occur or circumstances exist prior to the Closing Date or the release of the Loan
Amount to the Company which would make any of the Company’s representations, warranties,
agreements or other information set forth herein materially untrue or materially inaccurate as of such
date, the Company shall immediately notify the Lender (directly or through its counsel, if any) and
the Escrow Agent in writing prior to such date of such fact, specifying which representation,
warranty or covenant is affected and the reasons therefor.

4.

CERTAIN COVENANTS AND ACKNOWLEDGMENTS.

a.

Transfer Restrictions.  The Lender acknowledges that (1) the Securities have
not been and are not being registered under the provisions of the 1933 Act and, except as provided
in the Registration Rights Provisions or otherwise included in an effective registration statement, the
Shares have not been and are not being registered under the 1933 Act, and may not be transferred
unless (A) subsequently registered thereunder or (B) the Lender shall have delivered to the Company
an opinion of counsel, reasonably satisfactory in form, scope and substance to the Company, to the
effect that the Securities to be sold or transferred may be sold or transferred pursuant to an
exemption from such registration; (2) any sale of the Securities made in reliance on Rule 144
promulgated under the 1933 Act may be made only in accordance with the terms of said Rule and
further, if said Rule is not applicable, any resale of such Securities under circumstances in which the
seller, or the Person through whom the sale is made, may be deemed to be an underwriter, as that
term is used in the 1933 Act, may require compliance with some other exemption under the 1933
Act or the rules and regulations of the SEC thereunder; and (3) neither the Company nor any other
Person is under any obligation to register the Securities (other than pursuant to the Registration
Rights Provisions) under the 1933 Act or to comply with the terms and conditions of any exemption
thereunder.

b.

Restrictive Legend.  The Lender acknowledges and agrees that, until such
time as the relevant Shares have been registered under the 1933 Act, as contemplated by the
Registration Rights Provisions and sold in accordance with an effective Registration Statement or
otherwise in accordance with another effective registration statement, the certificates and other
instruments representing any of the Securities shall bear a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of any such Securities):

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE

ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.

c.

Filings.  The Company undertakes and agrees to make all necessary filings
in connection with the sale of the Securities to the Lender under any United States laws and
regulations applicable to the Company, or by any domestic securities exchange or trading market,
and to provide a copy thereof to the Lender promptly after such filing.

d.

Reporting Status.  So long as the Lender beneficially owns any of the
Securities and for at least twenty (20) Trading Days thereafter, the Company shall file all reports
required to be filed  with the SEC pursuant to Section 13 or 15(d) of the 1934 Act,  shall take all
reasonable action under its control to ensure that adequate current public information with respect
to the Company, as required in accordance with Rule 144(c)(2) of the 1933 Act, is publicly available,
and shall not terminate its status as an issuer required to file reports under the 1934 Act even if the
1934 Act or the rules and regulations thereunder would permit such termination.  The Company will
take all reasonable action under its control to maintain the continued listing and quotation and
trading of its Common Stock (including, without limitation, all Registrable Securities) on the
Principal Trading Market or a listing on the NASDAQ/Small Cap or National Markets and, to the
extent applicable to it, will comply in all material respects with the Company’s reporting, filing and
other obligations under the by-laws or rules of the Principal Trading Market and/or the National
Association of Securities Dealers, Inc., as the case may be, applicable to it at least through the date
which is sixty (60) days after the later of the date on which (x) all of the Notes have been converted
or been paid in full or (y) all of the Warrants have been exercised or have expired.

e.

Use of Proceeds.  The Company will use the proceeds received hereunder
(excluding amounts paid by the Company for legal and escrow fees or Finder's Compensation in
connection with the sale of the Securities) for general corporate purposes.

f.

Warrants.  The Company agrees to issue to each Lender on the Closing Date
transferable warrants (the “Warrants”), with cashless exercise rights (subject to certain conditions
provided in the Warrants) for the purchase of 1.666667 shares of Common Stock for each $1 of Loan
Amount.  The exercise price of the Warrants will be equal to $0.50, subject to adjustment as
provided in the Warrant.   The Warrants will expire on the last day of the calendar month in which
the fifth anniversary of the Closing Date occurs.  Each of the Warrants shall be in the form annexed
hereto as Annex IV, and shall have Registration Rights Provisions.

g.

Piggy-Back Rights; Rule 144.  

(i)

The Holder shall have piggy-back registration rights with respect to the
Registrable Securities (which term, for all purposes of this Section 4(g), includes shares issuable on
the subsequent exercise of the Warrants) subject to the conditions set forth below. If the Company
participates (whether voluntarily or by reason of an obligation to a third party) in the registration of
any shares of the Company’s stock (other than a registration on Form S-8 or on Form S-4), the
Company shall give written notice thereof to the Holder and the Holder shall have the right,

exercisable within ten (10) Trading Days after receipt of such notice, to demand inclusion of all or
a portion of the Holder’s Registrable Securities in such registration statement.  If the Holder
exercises such election, the Registrable Securities so designated shall be included in the registration
statement (without any holdbacks) at no cost or expense to the Holder (other than any commissions,
if any, relating to the sale of Holder’s shares).   Each Holder’s rights under this Section 4(g)(i) shall
expire at such time as such Holder can sell all of such Holder’s remaining Registrable Securities
under Rule 144 (as defined below) without volume or other restrictions or limit.

(ii)

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

(a)

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

(b)

file with the SEC in a timely manner all reports and other documents required
of the Company under the 1933 Act and the 1934 Act; and

(c)

furnish to the Holder so long as such party owns Registrable Securities,
promptly upon request, (i) a written statement by the Company that it has complied with the
reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) if not available on the SEC’s
EDGAR system, a copy of the most recent annual or quarterly report of the Company and such other
reports and documents so filed by the Company and (iii) such other information as may be
reasonably requested to permit the Holder to sell such securities pursuant to Rule 144 without
registration; and

(d)

at the request of any Holder then holding Registrable Securities, give the
Transfer Agent instructions (supported by an opinion of Company counsel, if required or requested
by the Transfer Agent) to the effect that, upon the Transfer Agent’s receipt from such Holder of

(i) a certificate (a “Rule 144 Certificate”) certifying (A) that the Holder’s holding
period (as determined in accordance with the provisions of Rule 144) for the Shares
which the Holder proposes to sell (the “Securities Being Sold”) is not less than (1)
year and (B) as to such other matters as may be appropriate in accordance with Rule
144 under the Securities Act, and

(ii) an opinion of counsel acceptable to the Company (for which purposes it is agreed
that Krieger & Prager LLP shall be deemed acceptable if not given by Company
counsel) that, based on the Rule 144 Certificate, Securities Being Sold may be sold
pursuant to the provisions of Rule 144, even in the absence of an effective
registration statement,

the Transfer Agent is to effect the transfer of the Securities Being Sold and issue to the buyer(s) or
transferee(s) thereof one or more stock certificates representing the transferred Securities Being Sold
without any restrictive legend and without recording any restrictions on the transferability of such
shares on the Transfer Agent’s  books and records (except to the extent any such legend or restriction
results from facts other than the identity of the relevant Holder, as the seller or transferor thereof, or
the status, including any relevant legends or restrictions, of the shares of the Securities Being Sold
while held by the Lender).  If the Transfer Agent reasonably requires any additional documentation
at the time of the transfer, the Company shall deliver or cause to be delivered all such reasonable
additional documentation as may be necessary to effectuate the issuance of an unlegended certificate.

(iii)

Notwithstanding the foregoing, if at any time or from time to time after the
date of effectiveness of the registration statement, the Company notifies the Holder in writing of the
existence of a Potential Material Event (as defined below), the Holder shall not offer or sell any
Registrable Securities, or engage in any other transaction involving or relating to the Registrable
Securities, from the time of the giving of notice with respect to a Potential Material Event until the
Holder receives written notice from the Company that such Potential Material Event either has been
disclosed to the public or no longer constitutes a Potential Material Event; provided, however, that
the Company may not so suspend such right other than during a Permitted Suspension Period.  The
term “Potential Material Event” means any of the following: (i) the possession by the Company of
material information not ripe for disclosure in a registration statement, which shall be evidenced by
determinations in good faith by the Board of Directors of the Company that disclosure of such
information in the registration statement would be detrimental to the business and affairs of the
Company; or (ii) any material engagement or activity by the Company which would, in the good
faith determination of the Board of Directors of the Company, be adversely affected by disclosure
in a registration statement at such time, which determination shall be accompanied by a good faith
determination by the Board of Directors of the Company that the registration statement would be
materially misleading absent the inclusion of such information.

h.

Available Shares.  The Company shall have at all times authorized and
reserved for issuance, free from preemptive rights, a number of shares (the “Minimum Available
Shares”) at least equal to one hundred percent (100%) of the number of shares issuable upon exercise
of all outstanding Warrants held by all Holders (in each case, whether such Warrants were originally
issued to the Holder, the Lender or to any other party).  For the purposes of such calculations, the
Company should assume that all such Warrants were then exercisable without regard to any
restrictions which might limit any Holder’s right to exercise any of the Warrants held by any Holder.

i.

Publicity, Filings, Releases, Etc.  Each of the parties agrees that it will not
disseminate any information relating to the Transaction Agreements or the transactions contemplated
thereby, including issuing any press releases, holding any press conferences or other forums, or filing
any reports (collectively, “Publicity”), without giving the other party reasonable advance notice and
an opportunity to comment on the contents thereof.  Neither party will include in any such Publicity
any statement or statements or other material to which the other party reasonably objects, unless in
the reasonable opinion of counsel to the party proposing such statement, such statement is legally
required to be included.  In furtherance of the foregoing, the Company will provide to the Lender

drafts of the applicable text of the first filing of a Current Report on Form 8-K or a Quarterly or
Annual Report on Form 10-Q or 10-K intended to be made with the SEC which refers to the
Transaction Agreements or the transactions contemplated thereby as soon as practicable (but at least
two (2) Trading Days before such filing will be made) will not include in such filing any statement
or statements or other material to which the other party reasonably objects, unless in the reasonable
opinion of counsel to the party proposing such statement, such statement is legally required to be
included.  Notwithstanding the foregoing, each of the parties hereby consents to the inclusion of the
text of the Transaction Agreements in filings made with the SEC as well as any descriptive text
accompanying or part of such filing which is accurate and reasonably determined by the Company’s
counsel to be legally required. Notwithstanding, but subject to, the foregoing provisions of this  
Section 4(i), the Company will, after the Closing Date, promptly issue a press release and file a
Current Report on Form 8-K or, if appropriate, a quarterly or annual report on the appropriate form,
referring to the transactions contemplated by the Transaction Agreements.

j.

Independent Nature of Lenders' Obligations and Rights.  The obligations
of each Lender under the Transaction Agreements are several and not joint with the obligations of
any other Lender, and no Lender shall be responsible in any way for the performance of the
obligations of any Other Lender under any one or more of the Transaction Agreements.  The decision
of each Lender or Other Lender to purchase Securities pursuant to the Transaction Agreements has
been made by such Lender independently of any Other Lender.  Nothing contained herein or in any
Transaction Agreement, and no action taken by any Lender pursuant thereto, shall be deemed to
constitute any two or more Lenders as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Lenders are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Agreements. Each
Lender acknowledges that no Other Lender has acted as agent for such Lender in connection with
making its investment hereunder and that no Lender will be acting as agent of such Other Lender in
connection with monitoring its investment in the Securities or enforcing its rights under the
Transaction Agreements.  Each Lender 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 Agreements, and it shall not be necessary for any Other Lender to be joined as an
additional party in any proceeding for such purpose.  The Company acknowledges that each of the
Lenders has been provided with the same Transaction Agreements for the purpose of closing a
transaction with multiple Lenders and not because it was required or requested to do so by any
Lender.

k.

Equal Treatment of Lenders.  No consideration shall be offered or paid to
any person to amend or consent to a waiver or modification of any provision of any of the
Transaction Agreements unless the same consideration is also offered to all of the parties to the
Transaction Agreements.

l.

Independent Investment Decision.  No Lender has agreed to act with any
Other Lender for the purpose of acquiring, holding, voting or disposing of the Securities purchased
hereunder for purposes of Section 13(d) under the 1934 Act, and each Lender is acting independently
with respect to its investment in the Securities.  The decision of each Lender to purchase Securities

pursuant to this Agreement has been made by such Lender independently of any other purchase and
independently of any information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or
prospects of the Company or its subsidiaries which may have made or given by any Other Lender
or by any agent or employee of any Other Lender, and no Lender or any of its agents or employees
shall have any liability to any Other Lender (or any other person) relating to or arising from any such
information, materials, statements or opinions.

5.

TRANSFER AGENT INSTRUCTIONS.

a.

The Company warrants that, with respect to the Securities, other than the stop
transfer instructions to give effect to Section 4(a) hereof, it will give its transfer agent no instructions
inconsistent with instructions to issue Common Stock from time to time upon exercise of the
Warrants in such amounts as specified from time to time by the Company to the transfer agent,
bearing the restrictive legend specified in Section 4(b) of this Agreement prior to registration of the
Shares under the 1933 Act, registered in the name of the Lender or its nominee and in such
denominations to be specified by the Holder in connection with each exercise of the Warrants.
Except as so provided, the Shares shall otherwise be freely transferable on the books and records of
the Company as and to the extent provided in this Agreement and the other Transaction Agreements.  
Nothing in this Section shall affect in any way the Lender's obligations and agreement to comply
with all applicable securities laws upon resale of the Securities.  If the Lender provides the Company
with an opinion of counsel reasonably satisfactory to the Company that registration of a resale by the
Lender of any of the Securities in accordance with clause (1)(B) of Section 4(a) of this Agreement
is not required under the 1933 Act, the Company shall (except as provided in clause (2) of Section
4(a) of this Agreement) permit the transfer of the Securities and, in the case of the Warrant Shares,
promptly instruct the Company's transfer agent to issue one or more certificates for Common Stock
without legend in such name and in such denominations as specified by the Lender.

b.

Subject to the provisions of this Agreement, the Company will permit the
Lender to exercise the Warrants in the manner contemplated by the Warrants.

c.

The Company will authorize the Transfer Agent to give information relating
to the Company directly to the Holder or the Holder’s representatives upon the request of the Holder
or any such representative, to the extent such information relates to (i) the status of shares of
Common Stock issued or claimed to be issued to the Holder in connection with a Notice of Exercise
or transfer of Pledged Shares to the Holder, or (ii) the aggregate number of outstanding shares of
Common Stock of all shareholders (as a group, and not individually) as of a current or other
specified date.  At the request of the Holder, the Company will provide the Holder with a copy of
the authorization so given to the Transfer Agent.

6.

CLOSING DATE.

a.

The Closing Date shall occur on the date which is the first Trading Day after
each of the conditions contemplated by Sections 7 and 8 hereof shall have either been satisfied or
been waived by the party in whose favor such conditions run.

b.

The closing of the Transactions shall occur on the Closing Date at the offices
of the Escrow Agent and shall take place no later than 3:00 P.M., New York time, on such day or
such other time as is mutually agreed upon by the Company and the Lender.

c.

Notwithstanding anything to the contrary contained herein, the Escrow Agent
will be authorized to release the Escrow Funds to the Company and to others and to release the other
Escrow Property on the Closing Date upon satisfaction of the conditions set forth in Sections 7 and
8 hereof and as provided in the Joint Escrow Instructions.

7.

CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

The Lender understands that the Company's obligation to sell the Notes, the Issued
Shares and the Warrants to the Lender pursuant to this Agreement on the Closing Date is conditioned
upon:

a.

The execution and delivery of this Agreement by the Lender;

b.

Delivery by the Lender to the Escrow Agent of good funds as payment in full
of an amount equal to the Loan Amount in accordance with this Agreement;

c.

The accuracy on such Closing Date of the representations and warranties of
the Lender contained in this Agreement, each as if made on such date, and the performance by the
Lender on or before such date of all covenants and agreements of the Lender required to be
performed on or before such date; and

d.

There shall not be in effect any law, rule or regulation prohibiting or
restricting the transactions contemplated hereby, or requiring any consent or approval which shall
not have been obtained.

8.

CONDITIONS TO THE LENDER'S OBLIGATION TO PURCHASE.

The Company understands that the Lender's obligation to purchase the Notes, the
Issued Shares and the Warrants on the Closing Date is conditioned upon:

a.

The execution and delivery of this Agreement and the other Transaction
Agreements by the Company;

b.

Delivery by the Company to the Escrow Agent of the Certificates in
accordance with this Agreement;

c.

The execution and delivery of the Pledge Agreement by the Pledgor, together
with an opinion of Pledgor’s counsel substantially to the effect set forth in Annex VIII attached
hereto;

d.

The accuracy in all material respects on the Closing Date of the
representations and warranties of the Company contained in this Agreement, each as if made on such
date, and the performance by the Company on or before such date of all covenants and agreements
of the Company required to be performed on or before such date;

e.

On the Closing Date, the Lender shall have received an opinion of counsel for
the Company, dated the Closing Date, in form, scope and substance reasonably satisfactory to the
Lender, substantially to the effect set forth in Annex III attached hereto;

f.

There shall not be in effect any law, rule or regulation prohibiting or
restricting the transactions contemplated hereby, or requiring any consent or approval which shall
not have been obtained; and

g.

From and after the date hereof to and including the Closing Date, each of the
following conditions will remain in effect: (i) the trading of the Common Stock shall not have been
suspended by the SEC or on the Principal Trading Market; (ii) trading in securities generally on the
Principal Trading Market shall not have been suspended or limited; (iii) no minimum prices shall
been established for securities traded on the Principal Trading Market; and (iv) there shall not have
been any material adverse change in any financial market.

9.

INDEMNIFICATION AND REIMBURSEMENT.

a.

(i)  The Company agrees to indemnify and hold harmless the Lender and its
officers, directors, employees, and agents, and each Lender Control Person from and against any
losses, claims, damages, liabilities or expenses incurred (collectively, “Damages”), joint or several,
and any action in respect thereof to which the Lender, its partners, Affiliates, officers, directors,
employees, and duly authorized agents, and any such Lender Control Person becomes subject to,
resulting from, arising out of or relating to any misrepresentation, breach of warranty or
nonfulfillment of or failure to perform any covenant or agreement on the part of Company contained
in this Agreement, as such Damages are incurred, except to the extent such Damages result primarily
from Lender's failure to perform any covenant or agreement contained in this Agreement or the
Lender's or its officer’s, director’s, employee’s, agent’s or Lender Control Person’s gross negligence,
recklessness or bad faith in performing its obligations under this Agreement.

(ii)

The Company hereby agrees that, if the Lender, other than by reason
of its gross negligence, illegal or willful misconduct (in each case, as determined by a non-appealable
judgment to such effect), (x) becomes involved in any capacity in any action, proceeding or

investigation brought by any shareholder of the Company, in connection with or as a result of the
consummation of the transactions contemplated by this Agreement or the other Transaction
Agreements, or if the Lender is impleaded in any such action, proceeding or investigation by any
Person, or (y) becomes involved in any capacity in any action, proceeding or investigation brought
by the SEC, any self-regulatory organization or other body having jurisdiction, against or involving
the Company or in connection with or as a result of the consummation of the transactions
contemplated by this Agreement or the other Transaction Agreements, or (z) is impleaded in any
such action, proceeding or investigation by any Person, then in any such case, the Company shall
indemnify, defend and hold harmless the Lender from and against and in respect of all losses, claims,
liabilities, damages or expenses resulting from, imposed upon or incurred by the Lender, directly or
indirectly, and reimburse such Lender for its reasonable legal and other expenses (including the cost
of any investigation and preparation) incurred in connection therewith, as such expenses are incurred.  
The indemnification and reimbursement obligations of the Company under this paragraph shall be
in addition to any liability which the Company may otherwise have, shall extend upon the same
terms and conditions to any Affiliates of the Lender who are actually named in such action,
proceeding or investigation, and partners, directors, agents, employees and Lender Control Persons
(if any), as the case may be, of the Lender and any such Affiliate, and shall be binding upon and
inure to the benefit of any successors, assigns, heirs and personal representatives of the Company,
the Lender, any such Affiliate and any such Person.  The Company also agrees that neither the
Lender nor any such Affiliate, partner, director, agent, employee or Lender Control Person shall have
any liability to the Company or any Person asserting claims on behalf of or in right of the Company
in connection with or as a result of the consummation of this Agreement or the other Transaction
Agreements, except as may be expressly and specifically provided in or contemplated by this
Agreement.

b.

All claims for indemnification by any Indemnified Party (as defined below)
under this Section shall be asserted and resolved as follows:

(i)

 In the event any claim or demand in respect of which any Person
claiming indemnification under any provision of this Section (an "Indemnified Party") might seek
indemnity under paragraph (a) of this Section is asserted against or sought to be collected from such
Indemnified Party by a Person other than a party hereto or an Affiliate thereof (a "Third Party
Claim"), the Indemnified Party shall deliver a written notification, enclosing a copy of all papers
served, if any, and specifying the nature of and basis for such Third Party Claim and for the
Indemnified Party's claim for indemnification that is being asserted under any provision of this
Section against any Person (the "Indemnifying Party"), together with the amount or, if not then
reasonably ascertainable, the estimated amount, determined in good faith, of such Third Party Claim
(a "Claim Notice") with reasonable promptness to the Indemnifying Party. If the Indemnified Party
fails to provide the Claim Notice with reasonable promptness after the Indemnified Party receives
notice of such Third Party Claim, the Indemnifying Party shall not be obligated to indemnify the
Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party's
ability to defend has been prejudiced by such failure of the Indemnified Party. The Indemnifying
Party shall notify the Indemnified Party as soon as practicable within the period ending thirty (30)
calendar days following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity

Notice (as defined below) (the "Dispute Period") whether the Indemnifying Party disputes its liability
or the amount of its liability to the Indemnified Party under this Section and whether the
Indemnifying Party desires, at its sole cost and expense, to defend the Indemnified Party against such
Third Party Claim.  The following provisions shall also apply.

(x)  If the Indemnifying Party notifies the Indemnified Party within the Dispute
Period that the Indemnifying Party desires to defend the Indemnified Party with
respect to the Third Party Claim pursuant to this paragraph (b) of this Section, then
the Indemnifying Party shall have the right to defend, with counsel reasonably
satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying
Party, such Third Party Claim by all appropriate proceedings, which proceedings
shall be vigorously and diligently prosecuted by the Indemnifying Party to a final
conclusion or will be settled at the discretion of the Indemnifying Party (but only
with the consent of the Indemnified Party in the case of any settlement that provides
for any relief other than the payment of monetary damages or that provides for the
payment of monetary damages as to which the Indemnified Party shall not be
indemnified in full pursuant to paragraph (a) of this Section). The Indemnifying Party
shall have full control of such defense and proceedings, including any compromise
or settlement thereof; provided, however, that the Indemnified Party may, at the sole
cost and expense of the Indemnified Party, at any time prior to the Indemnifying
Party's delivery of the notice referred to in the first sentence of this subparagraph (x),
file any motion, answer or other pleadings or take any other action that the
Indemnified Party reasonably believes to be necessary or appropriate protect its
interests; and provided further, that if requested by the Indemnifying Party, the
Indemnified Party will, at the sole cost and expense of the Indemnifying Party,
provide reasonable cooperation to the Indemnifying Party in contesting any Third
Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may
participate in, but not control, any defense or settlement of any Third Party Claim
controlled by the Indemnifying Party pursuant to this subparagraph (x), and except
as provided in the preceding sentence, the Indemnified Party shall bear its own costs
and expenses with respect to such participation. Notwithstanding the foregoing, the
Indemnified Party may take over the control of the defense or settlement of a Third
Party Claim at any time if it irrevocably waives its right to indemnity under paragraph
(a) of this Section with respect to such Third Party Claim.

(y)  If the Indemnifying Party fails to notify the Indemnified Party within the Dispute
Period that the Indemnifying Party desires to defend the Third Party Claim pursuant
to paragraph (b) of this Section, or if the Indemnifying Party gives such notice but
fails to prosecute vigorously and diligently or settle the Third Party Claim, or if the
Indemnifying Party fails to give any notice whatsoever within the Dispute Period,
then the Indemnified Party shall have the right to defend, at the sole cost and expense
of the Indemnifying Party, the Third Party Claim by all appropriate proceedings,
which proceedings shall be prosecuted by the Indemnified Party in a reasonable
manner and in good faith or will be settled at the discretion of the Indemnified Party

(with the consent of the Indemnifying Party, which consent will not be unreasonably
withheld). The Indemnified Party will have full control of such defense and
proceedings, including any compromise or settlement thereof; provided, however,
that if requested by the Indemnified Party, the Indemnifying Party will, at the sole
cost and expense of the Indemnifying Party, provide reasonable cooperation to the
Indemnified Party and its counsel in contesting any Third Party Claim which the
Indemnified Party is contesting. Notwithstanding the foregoing provisions of this
subparagraph (y), if the Indemnifying Party has notified the Indemnified Party within
the Dispute Period that the Indemnifying Party disputes its liability or the amount of
its liability hereunder to the Indemnified Party with respect to such Third Party Claim
and if such dispute is resolved in favor of the Indemnifying Party in the manner
provided in subparagraph(z) below, the Indemnifying Party will not be required to
bear the costs and expenses of the Indemnified Party's defense pursuant to this
subparagraph (y) or of the Indemnifying Party's participation therein at the
Indemnified Party's request, and the Indemnified Party shall reimburse the
Indemnifying Party in full for all reasonable costs and expenses incurred by the
Indemnifying Party in connection with such litigation. The Indemnifying Party may
participate in, but not control, any defense or settlement controlled by the
Indemnified Party pursuant to this subparagraph (y), and the Indemnifying Party shall
bear its own costs and expenses with respect to such participation.

(z)  If the Indemnifying Party notifies the Indemnified Party that it does not dispute
its liability or the amount of its liability to the Indemnified Party with respect to the
Third Party Claim under paragraph (a) of this Section or fails to notify the
Indemnified Party within the Dispute Period  whether the Indemnifying Party
disputes its liability or the amount of its liability to the Indemnified Party with respect
to such Third Party Claim, the amount of Damages specified in the Claim Notice
shall be conclusively deemed a liability of the Indemnifying Party under paragraph
(a) of this Section and the Indemnifying Party shall pay the amount of such Damages
to the Indemnified Party on demand. If the Indemnifying Party has timely disputed
its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution
of such dispute; provided, however, that if the dispute is not resolved within thirty
(30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute
such legal action as it deems appropriate.                 

(ii)

In the event any Indemnified Party should have a claim under
paragraph (a) of this Section against the Indemnifying Party that does not involve a Third Party
Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under
paragraph (a) of this Section specifying the nature of and basis for such claim, together with the
amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith, of
such claim (an "Indemnity Notice") with reasonable promptness to the Indemnifying Party. The
failure by any Indemnified Party to give the Indemnity Notice shall not impair such party's rights
hereunder except to the extent that the Indemnifying Party demonstrates that it has been irreparably

prejudiced thereby. If the Indemnifying Party notifies the Indemnified Party that it does not dispute
the claim or the amount of the claim described in such Indemnity Notice or fails to notify the
Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim or
the amount of the claim described in such Indemnity Notice, the amount of Damages specified in
the Indemnity Notice will be conclusively deemed a liability of the Indemnifying Party under
paragraph (a) of this Section and the Indemnifying Party shall pay the amount of such Damages to
the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the
amount of its liability with respect to such claim, the Indemnifying Party and the Indemnified Party
shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that it the
dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall
be entitled to institute such legal action as it deems appropriate.

c.

The indemnity agreements contained herein shall be in addition to (i) any
cause of action or similar rights of the indemnified party against the indemnifying party or others,
and (ii) any liabilities the indemnifying party may be subject to.

10.

JURY TRIAL WAIVER.   The Company and the Lender hereby waive a
trial by jury in any action, proceeding or counterclaim brought by either of the Parties hereto against
the other in respect of any matter arising out or in connection with the Transaction Agreements.

11.

GOVERNING LAW:  MISCELLANEOUS.

a.

(i)  This Agreement shall be governed by and interpreted in accordance with
the laws of the State of New York for contracts to be wholly performed in such state and without
giving effect to the principles thereof regarding the conflict of laws.  Each of the parties consents to
the exclusive jurisdiction of the federal courts whose districts encompass any part of the County of
New York or the state courts of the State of New York sitting in the County of New York in
connection with any dispute arising under this Agreement or any of the other Transaction
Agreements and hereby waives, to the maximum extent permitted by law, any objection, including
any objection based on forum non conveniens, to the bringing of any such proceeding in such
jurisdictions or to any claim that such venue of the suit, action or proceeding is improper. To the
extent determined by such court, the Company shall reimburse the Lender for any reasonable legal
fees and disbursements incurred by the Lender in enforcement of or protection of any of its rights
under any of the Transaction Agreements.  Nothing in this Section shall affect or limit any right to
serve process in any other manner permitted by law.

(ii)  The Company and the Lender acknowledge and agree that irreparable
damage would occur in the event that any of the provisions of this Agreement or the other
Transaction Agreements were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and the other Transaction
Agreements and to enforce specifically the terms and provisions hereof and thereof, this being in
addition to any other remedy to which any of them may be entitled by law or equity.

b.

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

c.

This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of each of the parties hereto.

d.

All pronouns and any variations thereof refer to the masculine, feminine or
neuter, singular or plural, as the context may require.

e.

A facsimile transmission of this signed Agreement shall be legal and binding
on all parties hereto.  

f.

This Agreement may be signed in one or more counterparts, each of which
shall be deemed an original.  

g.

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

h.

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

i.

This Agreement may be amended only by an instrument in writing signed by
the party to be charged with enforcement thereof.  

j.

This Agreement supersedes all prior agreements and understandings among
the parties hereto with respect to the subject matter hereof.

12.

NOTICES.  Any notice required or permitted hereunder shall be given in
writing (unless otherwise specified herein) and shall be deemed effectively given on the earliest of

(a) the date delivered, if delivered by personal delivery as against written receipt
therefor or by confirmed facsimile transmission,

(b) the fifth Trading Day after deposit, postage prepaid, in the United States Postal
Service by registered or certified mail, or

(c) the third Trading Day after mailing by domestic or international express courier,
with delivery costs and fees prepaid,

in each case, addressed to each of the other parties thereunto entitled at the following addresses (or
at such other addresses as such party may designate by ten (10) days’ advance written notice
similarly given to each of the other parties hereto):

COMPANY:    

At the address set forth at the head of this Agreement.

Attn: President                       

Telephone No.: (941) 917-0788

Telecopier No.: (941)    -

with a copy to:

Sichenzia Ross Friedman Ference LLP

1065 Avenue of the Americas, 21st Floor

NewYork, NY 10018

Attn: Darrin Ocasio, Esq.

Telephone No.: (212) 930-9700

Telecopier No.: (212) 930-9725

LENDER:

At the address set forth on the signature page of this Agreement.

with a copy to:

Krieger & Prager LLP, Esqs.