MaryJane (PLAD) 8-K Entry into a Material Definitive Agreement

Pladeo Corp. 8-K

Exhibit 10.5

SECURITIESPURCHASEAGREEMENT

ThisSecuritiesPurchase Agreement(this“Agreement”)isdatedasofMarch,2014,betweenPladeoCorp.(the“Company”),andthepurchaseridentifiedonthesignature pageshereto(each,includingitssuccessors andassigns,the “Purchaser”).

WHEREAS,subjecttotheterms andconditionsset forthinthisAgreementand pursuanttoSection 4(2)oftheSecuritiesActof1933,as amended(the“Securities Act”),andRule506promulgated thereunder,theCompanydesiresto issueandselltothePurchaser, andthePurchaserdesirestopurchasefrom theCompany, securities of the Companyas more fullydescribedin thisAgreement.

NOW,THEREFORE,INCONSIDERATIONofthemutualcovenantscontainedinthisAgreement, and forothergoodand valuable consideration, thereceipt andadequacyofwhichareherebyacknowledged, the CompanyandeachPurchaser agreeas follows:

ARTICLEI.DEFINITIONS

1.1Definitions.Inadditiontotheterms definedelsewhereinthisAgreement: (a)capitalizedtermsthatarenototherwisedefined hereinhavethemeaningsgiventosuchtermsintheDebentures (asdefinedherein), and (b) thefollowingtermshave themeanings setforthin thisSection 1.1:

“AcquiringPerson” shall havethe meaningascribed tosuch term in Section4.7.

“Action”shall havethemeaning ascribed tosuchterminSection3.1(j).

“Affiliate”meansanyPersonthat,directlyorindirectlythroughoneormore

intermediaries, controlsor iscontrolledbyorisundercommoncontrolwithaPerson, assuch terms areusedin andconstrued under Rule 405under theSecuritiesAct.

“BoardofDirectors” means the board ofdirectorsof theCompany.

“Business Day”means anydayexceptSaturday, Sunday,anydaywhichisafederallegalholidayintheUnitedStatesoranydayonwhichbankinginstitutions in the State ofNew York areauthorized orrequiredby law or othergovernmentalactiontoclose.

“Closing”meanstheclosingofthepurchaseandsaleoftheSecuritiespursuanttoSection 2.1.

“ClosingDate”meanstheTradingDaywhenalloftheTransactionDocumentshavebeenexecuted anddeliveredbytheapplicableparties thereto,andallconditions precedentto(i)thePurchaser’sobligationstopay theSubscriptionAmountand(ii)theCompany’sobligationstodeliver the Securitieshavebeen satisfiedor waived.

“Closing Statement” meanstheClosingStatementintheformAnnexAattached

hereto.

“Commission”means theUnitedStates SecuritiesandExchange Commission.

“CommonStock”meansthecommonstockoftheCompany,parvalue$.01pershare,andanyotherclassofsecuritiesintowhichsuchsecuritiesmayhereafterbereclassifiedorchangedinto.

“CommonStockEquivalents”meansanysecuritiesoftheCompanyortheSubsidiarieswhichwouldentitletheholderthereoftoacquireatanytimeCommonStock,including,withoutlimitation,anydebt,preferredstock,rights,options,warrantsor otherinstrumentthatisatany timeconvertibleinto orexercisableorexchangeablefor,orotherwise entitles the holder thereoftoreceive Common Stock.

“Company”meansPladeo Corp.

“Company Counsel”means               .

“Conversion Price”shallhavethemeaningascribedtosuchtermintheDebentures.

“Debentures”meansthe5%ConvertibleDebenturesdue,subjecttothetermstherein, issuedbytheCompanytothePurchaserhereunder,intheformofExhibitAattachedhereto.

“Disclosure Schedules”shallhavethemeaningascribedtosuchterminSection 3.1.

“ExchangeAct” meanstheSecuritiesExchangeActof1934,asamended,andtherules and regulationspromulgated thereunder.

“Exempt Issuance”means theissuanceof(a)sharesofCommonStockoroptionstoemployees,officers,directorsorconsultantsoftheCompanypursuanttoanystockoroptionplanoragreementdulyadopted for suchpurposeby theBoardofDirectorsora majorityof themembers of acommittee ofnon-employeedirectors establishedfor suchpurpose, (b)securitiesupon theexercise, exchange orconversion ofanySecuritiesissuedhereunderand/or othersecurities, options, warrants,convertiblesecuritiesor otherrights toacquire, exercisableorexchangeable for or convertibleinto,sharesofCommonStock, ineachcase thatare issuedandoutstandingonthedateof thisAgreement,provided that suchsecuritieshavenotbeenamendedsincethedateofthisAgreementtoincreasethe number of suchsecurities or todecreasetheexercise,exchange or conversionprice of suchsecurities,(c)securitiesissuedpursuant toacquisitionsofcompanies, assets orintellectual property (orlicensingof assets orintellectual property) orstrategic transactionsapprovedby a majorityofthedisinteresteddirectorsoftheCompany,providedthatany suchissuanceshall onlybeto aPersonwhichis,itselforthroughitssubsidiaries, an operating company ora universityof other non-financialinstitutionand

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inwhichtheCompanyreceivesbenefitsinadditiontotheinvestmentoffunds,(d)securitiesissuedorissuableinexchangeforotherthancashinconnectionwithanyothertransactionthat isnotfor the primarypurposeoffinancingthe Company’sbusiness, but shall not include atransactioninwhich the Company is issuing securities primarily for thepurposeof raisingcapital or toan entity whose primary business is investing insecurities.“GAAP”shallhavethe meaning ascribed tosuchterminSection3.1(h).

“Indebtedness”shall havethe meaningascribedtosuch term inSection 3.1(aa).

“IntellectualProperty Rights”shallhavethemeaningascribedtosuchterminSection 3.1(o).  

“LegendRemovalDate” shallhavethemeaningascribedtosuchterminSection 4.1(c).

“Liens”meansalien,charge,security interest,encumbrance, rightoffirst refusal,preemptiverightor otherrestriction.

“MaterialAdverse Effect”shallhavethemeaningassignedtosuchterminSection3.1(b).

“MaterialPermits”shallhavethemeaningascribedtosuchterminSection 3.1(m).

“MaximumRate”shallhavethe meaningascribedtosuch term inSection5.17.

“Person” meansanindividualorcorporation,partnership,trust,incorporatedorunincorporatedassociation,jointventure,limitedliability company,jointstockcompany, government (oran agencyorsubdivisionthereof) orotherentityof anykind.

“Proceeding”meansanaction,claim,suit,investigationorproceeding(including,withoutlimitation,aninformalinvestigationorpartialproceeding,suchasadeposition),whethercommencedorthreatened.

“Purchaser Party”shallhavethe meaning ascribedtosuchterminSection 4.10.

“RequiredApprovals” shallhavethemeaningascribedtosuchterminSection 3.1(e).

“RequiredMinimum” means,asofanydate,themaximumaggregatenumberofsharesofCommonStockthenissuedorpotentiallyissuableinthefuture pursuanttotheTransactionDocuments,including anyUnderlyingSharesissuable uponconversionin full ofallDebentures(includingUnderlying Sharesissuableas payment ofinterest on theDebentures), ignoring any conversion orexerciselimitssetforththerein.

“Rule144”meansRule144promulgatedbytheCommissionpursuanttotheSecurities Act,assuchRulemaybeamendedfromtimetotime,oranysimilarruleor

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regulation hereafteradoptedbytheCommissionhavingsubstantially thesameeffectassuchRule.

“SECReports” shall havethemeaningascribed tosuch term inSection3.1(h).

“Securities”means the Debenturesand the UnderlyingShares.

“Securities Act”means theSecuritiesActof1933,asamended,andtherulesand regulationspromulgatedthereunder.

“ShortSales”meansall “shortsales”asdefinedinRule200ofRegulationSHOundertheExchangeAct(butshallnotbedeemedtoincludethelocationand/orreservationofborrowable sharesofCommonStock).

“SRFF”meansSichenziaRossFriedmanFerenceLLP,61Broadway,NewYork,NewYork 10006.

“Subscription Amount” meanstheaggregateamount tobepaid forDebentures purchasedhereunderasspecified belowthePurchaser’s nameon thesignaturepageof thisAgreement andnextto theheading“SubscriptionAmount,” in UnitedStates dollars and in immediately available funds.

“Subsidiary”meansanysubsidiaryoftheCompanyassetforthonSchedule3.1(a)andshall,whereapplicable,includeanydirectorindirectsubsidiaryoftheCompanyformed oracquired after thedate hereof.

“Trading Day”meansadayonwhichtheprincipalTradingMarketisopenfortrading.

“TradingMarket” meansthefollowingmarketsorexchangesonwhichtheCommonStockislisted orquotedfortrading onthedateinquestion:theAmericanStockExchange,theNasdaqCapital Market,theNasdaq GlobalMarket,theNasdaqGlobalSelectMarket,theNewYork StockExchangeortheOTCBulletinBoard.

“Transaction Documents means thisAgreement,theDebentures,all exhibitsandschedulesthereto andheretoandanyotherdocumentsoragreementsexecutedinconnection with the transactionscontemplated hereunder.

“TransferAgent” means       thecurrenttransfer agentoftheCompany with amailingaddressof           andafacsimilenumberof               andanysuccessor transferagentoftheCompany.

“UnderlyingShares” meansthesharesofCommonStockissuedandissuableuponconversionorredemptionoftheDebenturesand issuedandissuableinlieuofthecashpaymentofinterestontheDebenturesinaccordancewiththetermsoftheDebentures.

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“VWAP” means,for anydate,thepricedeterminedbythefirstofthefollowingclausesthatapplies:(a)iftheCommonStockisthenlistedorquotedonaTradingMarket, the dailyvolumeweighted average price of the CommonStock for suchdate(or thenearest preceding date) on the TradingMarket onwhich the Common Stock is then listedorquotedas reportedbyBloomberg L.P.(basedonaTradingDayfrom9:30a.m.New York Citytime to 4:02 p.m.NewYorkCity time); (b) if the OTCBulletinBoardisnot a Trading Market, the volumeweightedaveragepriceof the Common Stock for suchdate(or thenearest preceding date) on the OTCBulletin Board;(c) if theOTC QB is not aTradingMarket, the volume weightedaverageprice of theCommon Stock for suchdate (or the nearest preceding date) on the OTC QBasthen listed or quoted for trading by OTCMarketsGroup Inc., (d) ifprices for the Common Stockarethenreported in the“Pink Sheets”published by OTCMarketsGroupInc., (or asimilarorganizationor agency succeeding to itsfunctionsof reportingprices), the mostrecentbidprice per share of the Common Stock soreported; or (e) inall othercases, the fairmarketvalueof ashare of CommonStockas determined by anindependentappraiser selected ingoodfaithby thePurchaserand reasonablyacceptable to the Company, thefees and expenses ofwhichshallbe paidby the Company.

ARTICLEII.PURCHASE AND SALE

2.1 Closing.OntheClosingDate,uponthetermsandsubjecttotheconditionssetforthherein,substantiallyconcurrentwiththeexecutionanddeliveryofthisAgreementbythepartieshereto,theCompanyagreestosell, and thePurchaser agreestopurchase,anaggregateof$45,000inprincipalamountof theDebentures.The Purchasershalldeliver to the Company via wiretransfer,immediatelyavailable fundsequaltoitsSubscriptionAmountand theCompanyshalldeliverto thePurchaseritsDebenture,as determinedpursuanttoSection 2.2(a),andtheCompany and thePurchaser shall deliver theotheritemssetforthinSection2.2deliverableattheClosing.UponsatisfactionoftheconditionssetforthinSections2.2and2.3,theinitialClosingshalloccurattheofficesofSRFF or such otherlocation asthepartiesshall mutually agree. Notwithstandinganythingtothecontrary,thePurchasermayassignitsobligations hereundertoanaffiliate in its solediscretion.

2.2 Deliveries.

(a) On theClosingDate,theCompanyshalldeliverorcausetobedeliveredtoeachPurchaserthe following:

(i) thisAgreementdulyexecutedbytheCompany;

(ii) alegalopinionofCompanyCounsel,insubstantiallytheformofExhibit Dattachedhereto; and

(iii) aDebenturewithaprincipalamountequaltothePurchaser’s Subscription Amount,registered in the name of the Purchaser.

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(b) On theClosingDate,each Purchasershalldeliverorcausetobedeliveredtothe Companythefollowing:

(i) thisAgreementdulyexecutedbythe Purchaser; and

(ii) suchPurchaser’sSubscriptionAmountbywiretransfertotheaccountasspecifiedin writingbytheCompany.(SeeAnnexA)

2.3 Closing Conditions.

(a)                   TheobligationsoftheCompanyhereunderinconnectionwiththeClosingaresubject to thefollowingconditions beingmet:

(i)        theaccuracyinallmaterialrespectsontheClosingDateoftherepresentations andwarranties of the Purchaser containedherein;

(ii)     allobligations,covenantsandagreementsofeachPurchaserrequiredto beperformed at or priorto theClosingDate shallhavebeenperformed; and

(iii)    thedelivery byeachPurchaseroftheitemssetforthinSection2.2(b)ofthisAgreement.

(b)                  TheobligationsofthePurchaserhereunderinconnectionwiththeClosingaresubject to thefollowingconditions beingmet:

(i)                 theaccuracyinallmaterial respectswhenmade andontheClosingDate oftherepresentationsandwarranties of theCompanycontained herein;

(ii)              allobligations,covenants andagreementsofthe Companyrequiredto beperformedat or priorto theClosingDateshallhavebeenperformed;

(iii)             thedeliverybytheCompanyoftheitemsset forthinSection 2.2(a) ofthisAgreement;and

(iv)            thereshallhavebeennoMaterialAdverseEffectwithrespecttothe Companysincethe datehereof.

ARTICLEIII.

REPRESENTATIONS ANDWARRANTIES

3.1 Representations and Warranties the Company. Except as setforthintheDisclosureSchedules,whichDisclosureSchedulesshallbedeemedaparthereof andshallqualifyanyrepresentationorotherwisemadehereintotheextentofthedisclosurecontainedinthecorresponding section of theDisclosureSchedules, the Company hereby makes the followingrepresentationsand warranties toeach Purchaser:

(a)               Subsidiaries.Allofthedirect andindirectsubsidiariesoftheCompanyaresetforthontheapplicableexhibitsfiledwiththeSECReports.TheCompanyowns,

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directly orindirectly,allofthecapitalstockorotherequityinterestsofeachSubsidiaryfreeandclear of anyLiens,andallofthe issuedand outstandingshares ofcapital stock ofeachSubsidiaryarevalidlyissuedand are fullypaid,non-assessableandfreeofpreemptiveandsimilar rights tosubscribe fororpurchasesecurities.IftheCompany has nosubsidiaries,allotherreferences to theSubsidiariesoranyofthem intheTransaction Documentsshall be disregarded.

(b)              Organization and Qualification. TheCompany andeach oftheSubsidiaries isanentity duly incorporatedorotherwiseorganized,validlyexistingandingoodstandingunderthelawsofthejurisdictionofitsincorporationororganization,withtherequisitepowerandauthoritytoownand useitspropertiesandassets andtocarryon itsbusiness ascurrently conducted. Neither the Company norany Subsidiary isin violation nor default of anyofthe provisionsof itsrespective certificate or articles of incorporation, bylawsorother organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entityineach jurisdiction in which the nature of the business conducted or property ownedby it makes such qualification necessary, exceptwhere thefailuretobesoqualifiedoringoodstanding, asthecasemaybe,could not have or reasonably be expected to resultin:(i) a material adverse effect on the legality, validityor enforceability ofany Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financialorotherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform inany material respect on a timely basis itsobligations underanyTransaction Document (anyof (i),(ii)or (iii),a“Material Adverse Effect”) andnoProceeding hasbeen institutedinanysuchjurisdictionrevoking, limiting or curtailingor seeking to revoke, limit or curtail such power and authorityor qualification.

(c)               Authorization; Enforcement.The Companyhastherequisitecorporate powerandauthoritytoenterintoandtoconsummatethetransactionscontemplatedbyeachoftheTransactionDocuments andotherwiseto carry out its obligationshereunderandthereunder. The executionanddelivery ofeachof theTransactionDocumentsby the Companyandthe consummationby itof thetransactionscontemplated herebyand therebyhavebeendulyauthorizedbyall necessaryactiononthepartoftheCompanyandnofurther action isrequiredby theCompany, theBoardofDirectors or theCompany’s stockholders inconnectiontherewithother than inconnection with theRequired Approvals.Each TransactionDocumenttowhich it is apartyhasbeen (or upon delivery willhave been) dulyexecutedby the Companyand, whendeliveredinaccordance with the termshereof and thereof, willconstitute the validandbindingobligation of the Companyenforceableagainst the Company inaccordance with itsterms, except:(i)aslimitedbygeneral equitableprinciplesandapplicablebankruptcy,insolvency,reorganization, moratoriumandotherlawsofgeneralapplicationaffecting enforcement of creditors’rightsgenerally,(ii)as limited bylaws relating to theavailability ofspecificperformance,injunctiverelief or otherequitableremedies and(iii)insofarasindemnification andcontribution provisions may belimitedbyapplicable law.

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(d)              No Conflicts.Theexecution,deliveryandperformancebytheCompanyoftheTransactionDocuments andtheconsummationbyittowhichitisapartyoftheothertransactions contemplated herebyandthereby donotandwillnot:(i)conflictwith orviolateanyprovision of the Company’s or anySubsidiary’s certificate orarticlesofincorporation,bylawsorotherorganizational orcharterdocuments,(ii)conflict with, orconstituteadefault (or anevent that withnotice or lapse of time or both wouldbecomeadefault)under,resultinthecreationofanyLienuponanyofthepropertiesorassets of the CompanyoranySubsidiary,orgivetoothersanyrightsoftermination, amendment,accelerationorcancellation(withorwithoutnotice,lapse oftime or both)of,anyagreement, creditfacility,debt or other instrument(evidencing a Company or Subsidiarydebtorotherwise)orotherunderstanding to whichtheCompanyor anySubsidiaryisa partyorbywhichany propertyorassetoftheCompanyoranySubsidiaryisboundoraffected,or(iii)subjectto the RequiredApprovals, conflictwith orresultin a violation of anylaw,rule,regulation,order,judgment,injunction,decreeor otherrestrictionofanycourtorgovernmentalauthority towhich the Companyor a Subsidiary issubject(includingfederaland statesecuritieslaws andregulations),orbywhichany property orassetof the Company or a Subsidiary isboundoraffected;exceptinthecase ofeachofclauses (ii)and (iii), suchascould not have or reasonably beexpectedto result in aMaterial AdverseEffect.

(e)               Filings, Consents and Approvals.TheCompanyisnotrequiredtoobtainanyconsent,waiver,authorizationororderof,give anynoticeto,ormakeanyfilingorregistrationwith,anycourtorotherfederal, state,localorothergovernmentalauthorityorother Person inconnectionwiththeexecution, delivery andperformanceby the Companyof the Transaction Documents, other than: (i) the filings required pursuant to Section 4.6, (ii) such consents, waivers, or authorizations as have been obtained before theClosing, (iii)ifrequired, the notice and/or application(s) to each applicableTrading Marketfor theissuance andsale ofthe Securities andthelisting oftheUnderlying Shares for trading thereon in the time and manner required thereby and (iv) the filing of Form D withtheCommissionandsuchfilings as arerequired tobemadeunderapplicablestate securities laws (collectively, the “RequiredApprovals”).

(f)               Issuance of the Securities.TheSecuritiesaredulyauthorizedand,whenissuedand paidforinaccordancewiththeapplicableTransactionDocuments,willbedulyandvalidlyissued,fullypaid andnonassessable,free andclearofall Liensimposedby theCompany other thanrestrictionsontransferprovided forin theTransaction Documents.The Underlying Shares, whenissued in accordancewith theterms ofthe Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of allLiens imposedby the Company other than restrictions on transfer providedfor in the Transaction Documents.The Company has reserved from its dulyauthorized capital stock a number of shares of Common Stock for issuance ofthe UnderlyingShares.

(g)              Capitalization.ThecapitalizationoftheCompanyimmediatelypriortoClosing is,inallmaterialrespects, assetforthintheSECReports.Exceptas providedonSchedule 3.1(g),noPersonhas(i)anyrightoffirstrefusal, preemptiveright,rightofparticipation, orany similarright toparticipate in the transactionscontemplatedby the

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TransactionDocumentsexceptforsuch,ifany,aswillhavebeenvalidlywaived beforetheClosing and(ii)exceptpursuanttotheoperationofagreementsfiledasexhibitstotheSECReportsbeforethedateofthisAgreement,theissuanceandsaleof theSecurities willnotobligatetheCompany toissuesharesofCommonStockorothersecuritiestoanyPerson(otherthan the Purchaser)and will not result in arightofanyholder of Companysecuritiestoadjust theexercise,conversion,exchange orreset price underany ofsuchsecurities.All of theoutstandingshares of capital stock of theCompany are validlyissued,fullypaidand nonassessable, have been issued incompliance withallfederal and statesecuritieslaws,andnoneofsuchoutstandingshareswasissuedinviolationofanypreemptiverightsor similarrights to subscribe for or purchase securities. Nofurther approval orauthorization of anystockholder, theBoard ofDirectors orothersisrequired for theissuance andsaleoftheSecurities. Exceptasfiledasexhibits to theSECReports, there arenostockholders agreements,voting agreementsorothersimilaragreementswithrespectto the Company’scapital stock to which the Company is a partyor,to theknowledgeof theCompany,betweenor among any ofthe Company’sstockholders.

(h)              SEC Reports; Financial Statements.TheCompanyhasfiledallreports,schedules,forms,statementsandotherdocumentsrequiredtobefiledbytheCompanyundertheSecuritiesActandtheExchange Act, includingpursuanttoSection13(a)or 15(d)thereof,for the twoyears preceding the datehereof (or such shorterperiodasthe Companywasrequiredbylaworregulation to file suchmaterial) (theforegoingmaterials,including theexhibitsthereto anddocumentsincorporatedbyreferencetherein,beingcollectivelyreferred toherein as the“SECReports”)on a timelybasis orhasreceivedavalidextensionofsuchtimeoffilingand hasfiledany suchSECReportsprior totheexpirationofanysuchextension,exceptassetforthonSchedule3.1(h). Asof theirrespectivedates, the SECReportscomplied inallmaterial respects with therequirementsof the SecuritiesActand theExchangeAct,as applicable, and noneof the SECReports, when filed,containedany untrue statement of amaterial fact oromitted to state amaterialfactrequiredto bestatedtherein or necessary in order to make thestatementstherein, in thelight of thecircumstances under whichtheyweremade,notmisleading. Thefinancialstatements of the Company included in the SECReportscomply inallmaterial respectswithapplicableaccounting requirementsandtherulesandregulationsofthe Commissionwithrespecttheretoasineffectatthe time offiling.Such financialstatements havebeenprepared inaccordance with generallyacceptedaccountingprinciples (“GAAP”),exceptasmay beotherwisespecifiedin suchfinancialstatements or the notestheretoandexceptthatunauditedfinancial statements maynotcontainallfootnotesrequiredbyGAAP,and fairlypresentinallmaterialrespectsthefinancialpositionofthe Companyandits consolidatedSubsidiariesas ofandfor thedates thereofand the results ofoperations andcashflows for the periods thenended,subject, in thecaseofunauditedstatements, tonormal, immaterial, year-endauditadjustments.

(i)                Material Changes. ExceptasprovidedinSchedule3.1(i),since thedateofthelatest financialstatementsincludedintheSECReports:(i)therehas beennoevent, occurrenceordevelopmentthathashadorthatcouldreasonablybeexpectedtoresultin aMaterialAdverse Effect,(ii)the Company hasnotincurredanyliabilities(contingentorotherwise)otherthan (A)tradepayablesandaccruedexpensesincurredintheordinary

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courseofbusiness consistentwithpast practiceand(B)liabilitiesnotrequiredtobereflectedintheCompany’s financialstatementspursuanttoGAAPordisclosedinfilingsmadewiththeCommission,(iii)theCompanyhasnotaltered itsmethod ofaccounting,

(iv)   theCompanyhasnotdeclaredormadeanydividendordistributionofcashorotherpropertytoitsstockholdersorpurchased,redeemedormadeanyagreementstopurchaseorredeemanysharesofitscapitalstockand(v)theCompanyhasnotissuedanyequitysecuritiestoanyofficer,directororAffiliate, exceptpursuant to existingCompany equityincentiveplans.TheCompany does not have pendingbefore theCommission any request forconfidential treatment ofinformation.Except for theissuanceof theSecuritiescontemplated by thisAgreement,no event, liability or development hasoccurredorexists withrespect to the Company or itsSubsidiaries or theirrespective business,properties,operations orfinancial condition,that would berequired to be disclosedbythe Companyunderapplicablesecuritieslawsatthetime thisrepresentationis made ordeemedmade thathas notbeen publicly disclosedatleast one TradingDayprior to thedate that thisrepresentationismade.

(j)                Litigation.Thereis no action, suit,inquiry,noticeof violation, proceedingorinvestigationpendingor,totheknowledgeoftheCompany,threatened againstoraffectingtheCompany,anySubsidiaryoranyoftheirrespectivepropertiesbeforeorbyanycourt,arbitrator, governmentaloradministrative agencyorregulatory authority(federal, state,county, local orforeign)(collectively,an“Action”)which (i) adverselyaffectsorchallengesthelegality,validity orenforceabilityofanyoftheTransactionDocumentsortheSecuritiesor(ii)could,iftherewere an unfavorabledecision,haveor reasonablybeexpectedtoresultinaMaterialAdverseEffect.Neither theCompany nor anySubsidiary, noranydirectororofficer thereof, isorhas beenthesubject ofanyActioninvolving aclaimofviolationoforliability underfederalorstatesecurities laws oraclaimofbreachoffiduciaryduty. There has notbeen, andtotheknowledgeoftheCompany,there is not pending orcontemplated,anyinvestigationby the Commissioninvolving the Companyorany current orformerdirector or officer of theCompany.The Commissionhas notissuedany stoporderorotherordersuspendingtheeffectivenessof anyregistration statement filedbythe Company orany Subsidiary under theExchange Act or theSecuritiesAct.

(k)              Labor Relations.Nomateriallabordisputeexistsor,totheknowledgeoftheCompany, isimminentwithrespecttoanyoftheemployeesoftheCompanywhichcould reasonablybeexpected toresult inaMaterialAdverseEffect. None ofthe Company’s or its Subsidiaries’ employees is a member of a union thatrelates to such employee’srelationshipwiththeCompany orsuchSubsidiary,and neithertheCompany noranyof itsSubsidiariesis a party to acollective bargaining agreement,and the Company andits Subsidiaries believe thattheir relationships with theiremployees are good. Noexecutiveofficer,totheknowledgeoftheCompany, is,orisnowexpected to be, in violation of anymaterial termof anyemployment contract, confidentiality, disclosure or proprietaryinformation agreement or non-competition agreement, or any other contractoragreement or any restrictivecovenant infavorof any third party,and the continuedemploymentofeach such executive officerdoes not subject the Company or anyof its Subsidiaries to any liability with respect to anyof the foregoing matters. To the Company’s knowledge, the Company and its Subsidiaries are in compliance with all U.S.

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federal, state,local andforeignlawsandregulationsrelatingtoemploymentandemployment practices,termsand conditionsofemployment andwagesandhours,except wherethefailuretobeincompliancecouldnot,individuallyorintheaggregate,reasonably be expected tohave a Material Adverse Effect.

(l)                Compliance.TotheCompany’sknowledge,neithertheCompanynoranySubsidiary:(i)isindefaultunderorinviolationof(andnoeventhasoccurredthathasnotbeenwaivedthat,withnoticeorlapse oftimeorboth,wouldresultinadefault bytheCompanyor anySubsidiaryunder), nor has the Company oranySubsidiaryreceived notice of aclaim that it is indefault under or thatit is inviolationof, anyindenture,loan or creditagreementoranyothermaterialagreementorinstrument towhichit is a partyorbywhich it oranyofitsproperties is bound (whether or not such default orviolationhasbeenwaived),(ii) is inviolationof any orderof any court,arbitratororgovernmental body or (iii) is orhas been in violation of anystatute, rule or regulation of anygovernmental authority, includingwithout limitationall foreign,federal, stateand locallawsapplicable to itsbusiness andall suchlaws thataffectthe environment,except ineach of theforegoing casesascouldnothave or reasonablybeexpectedtoresult in aMaterial AdverseEffect.

(m)            Regulatory Permits. The CompanyandtheSubsidiariespossessallcertificates,authorizations andpermitsissued bytheappropriate federal,state,localorforeignregulatoryauthoritiesnecessaryto conducttheir respective businesses, except where the failure to possess such permits could not reasonably be expected to result ina Material Adverse Effect (“Material Permits”), and neither the Companynorany Subsidiary has receivedany notice of proceedings relating to therevocationor modification ofanyMaterial Permit.

(n)              Title to Assets. TheCompanyandtheSubsidiarieshavegood andmarketabletitleinfeesimpletoall realpropertyand goodandmarketabletitleinallpersonalpropertyownedby it that,ineachcase, ismaterialtothebusinessof the Companyand theSubsidiaries,ineachcasefreeandclearofallLiens, except forLiensas do not materiallyaffect thevalue of such propertyanddo not materially interfere with the use madeand proposed to be made of such property by the Companyand theSubsidiaries andLiens for thepayment offederal,state or other taxes, thepaymentofwhichisneitherdelinquentnorsubjecttopenalties inanymaterialrespect. Anyrealpropertyandfacilitiesheldunder lease by the Companyandthe Subsidiariesareheldby themundervalid,subsistingandenforceable leaseswithwhichtheCompanyandtheSubsidiariesare incompliance.

(o)              Patents and Trademarks.TotheCompany’sknowledge(withouthavingconductedanyindependentinvestigation):(i)theCompanyandtheSubsidiarieshave,orhaverightsto use,all patents,patentapplications, trademarks,trademarkapplications, servicemarks,tradenames,tradesecrets,inventions,copyrights,licenses andotherintellectual property rightsandsimilarrights asdescribed in the SECReportsas necessaryormaterialfor useinconnection withtheir respectivebusinessesandwhich thefailureto so have could reasonablybe expected tohaveaMaterialAdverseEffect (collectively, the“Intellectual PropertyRights”); (ii)neither the Companynorany

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Subsidiary hasreceivedanotice(writtenorotherwise)thatanyoftheIntellectualProperty RightsviolatesorinfringesupontherightsofanyPerson;(iii)allsuchIntellectual PropertyRights areenforceable andthere is noexistinginfringementbyanotherPersonofanyof theIntellectualPropertyRights,except wherethefailuretobe soenforceableor for suchinfringementsas would not, individuallyor in theaggregate,reasonablybeexpectedtohaveaMaterialAdverseEffect;and(iv) the CompanyanditsSubsidiaries have takenreasonable securitymeasurestoprotect thesecrecy,confidentiality andvalue ofalloftheirintellectualproperties,except wherefailure to do socould not, individuallyorin theaggregate,reasonablybe expectedto have aMaterialAdverseEffect.

(p)              Insurance.TheCompanyandtheSubsidiariesareinsuredbyinsurersofrecognizedfinancialresponsibilityagainstsuchlosses andrisksandinsuchamounts astheCompanybelievesareprudentandcustomaryinthebusinessesinwhichtheCompanyandtheSubsidiariesareengaged inlightofthesizeandactivitiesofthe CompanyanditsSubsidiaries,including,but notlimited to,directorsand officersinsurancecoverageatleastequal to theaggregate Subscription Amount.Neitherthe Company nor any Subsidiaryhasanyreason tobelievethat itwill not beabletorenewitsexistinginsurancecoverageasand when suchcoverageexpires orto obtainsimilarcoverage fromsimilar insurersasmay be necessary tocontinue itsbusinesswithout asignificant increasein cost.

(q)              Transactions with Affiliates and Employees. Exceptas setforthintheSECReports,noneoftheofficersordirectorsoftheCompanyand,totheknowledgeoftheCompany,noneoftheemployeesoftheCompanyispresently aparty toanytransaction with the Company orany Subsidiary (other than for servicesasemployees, officersanddirectors),includinganycontract,agreementorotherarrangement providing for thefurnishing ofservicestoorby,providingforrentalofreal orpersonalpropertyto orfrom,orotherwiserequiringpaymentstoorfromany officer,directororsuchemployeeor,to theknowledge of theCompany,anyentityin whichanyofficer,director,orany suchemployeehasasubstantial interest or isan officer, director, trustee orpartner, ineachcase inexcessof $120,000 other thanfor: (i) payment of salary orconsulting feesforservices rendered,(ii)reimbursementforexpensesincurredonbehalf of the Companyand(iii) otheremployee benefits, including stock optionagreements under any stock option plan of the Company

(r)    Environmental Laws.TheCompanyanditssubsidiariesare(i)incompliancewithanyand allapplicableforeign,federal,stateandlocallawsandregulationsrelatingtotheprotection of humanhealthandsafety, theenvironmentor hazardous or toxicsubstancesorwastes,pollutantsorcontaminants(“Environmental Laws”), (ii)havereceivedallpermits,licensesorotherapprovalsrequiredof themunderapplicable EnvironmentalLaws toconduct theirrespectivebusinessesand(iii) are incompliance withalltermsand conditions of anysuch permit,license orapproval,except ineachof theabove cases wherenoncompliancecouldnotbe reasonablyexpected tohaveaMaterial AdverseEffect.

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(s)               Sarbanes-Oxley; Internal Accounting Controls.Except assetforthintheSECReports,theCompanyisinmaterialcompliancewithall provisionsoftheSarbanes-OxleyActof 2002 whichareapplicableto itasof the ClosingDate.The Companyand theSubsidiariesmaintain asystem ofinternalaccountingcontrolssufficienttoprovidereasonableassurancethat:(i)transactionsareexecutedinaccordancewithmanagement’sgeneral or specific authorizations, (ii)transactionsare recordedas necessary to permitpreparationoffinancialstatementsin conformity withGAAP and to maintainasset accountability, (iii) access toassets ispermittedonlyin accordance withmanagement’s generalor specific authorization,and(iv) therecordedaccountabilityforassetsiscomparedwiththeexistingassetsatreasonableintervals andappropriateactionistaken withrespecttoanydifferences. The Companyhasestablished disclosurecontrols andprocedures(as definedinExchange ActRules13a-15(e)and15d-15(e))fortheCompanyand designed suchdisclosurecontrols andprocedures toensurethat informationrequired to be disclosedbythe Companyin thereports it files or submitsunder theExchangeActisrecorded,processed,summarizedandreported, withinthetimeperiodsspecifiedin the Commission’srulesand forms.The Company’scertifying officers haveevaluatedtheeffectiveness of theCompany’sdisclosure controlsandproceduresasof theendof theperiodcoveredbytheCompany’smost recentlyfiledperiodicreportunder theExchangeAct(suchdate, the“Evaluation Date”).The Companypresentedin its most recentlyfiledperiodic report under theExchange Act the conclusions of thecertifying officersabout theeffectivenessof the disclosurecontrolsandproceduresbased on theirevaluationsas of theEvaluation Date. Since theEvaluation Date, therehavebeennochanges in theCompany’s internalcontrolover financialreporting(assuchtermisdefinedintheExchangeAct)that has materiallyaffected, or is reasonably likely to materiallyaffect,theCompany’sinternal controloverfinancial reporting.

(t)                Certain Fees. Except as disclosedonSchedule3.1(t),nobrokerageorfinder’s feesorcommissions areorwillbepayablebytheCompanytoanybroker,financialadvisororconsultant,finder,placementagent, investmentbanker,bankorotherPerson withrespectto thetransactionscontemplatedby theTransactionDocuments,other thanfeespayableto. ThePurchasershallhaveno obligation withrespectto anyfees orwithrespecttoany claims made by oron behalf ofother Persons forfeesofa typecontemplated in this Section thatmay be due inconnection with thetransactions contemplatedby theTransactionDocuments.

(u)              Private Placement.Assuming the accuracy of the Purchaser’srepresentationsandwarrantiessetforth inSection3.2, noregistration under theSecuritiesActisrequiredfor theofferand saleoftheSecuritiesbytheCompanytothePurchaserascontemplated hereby.TheissuanceandsaleoftheSecuritieshereunderdoesnotcontravenetherulesandregulationsof theTradingMarket.

(v)              InvestmentCompany.TheCompanyisnot,andisnotanAffiliate of,andimmediatelyafterreceiptofpaymentfortheSecurities,willnotbeorbeanAffiliateof, an“investmentcompany”withinthemeaningof theInvestmentCompanyActof1940,asamended.The Company shall conduct its business in amanner so that it will notbecome subject to theInvestment Company Act of1940,asamended.

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(w)            RegistrationRights.ExceptasdisclosedintheSECReports,noPerson hasanyrighttocausetheCompanytoeffecttheregistrationundertheSecuritiesActofanysecurities ofthe Company.

(x)              Listing and MaintenanceRequirements.TheCommonStockisregisteredpursuanttoSection12(b)or12(g)oftheExchangeAct,andtheCompanyhastakennoaction designedto,orwhichtoitsknowledgeislikelytohavetheeffectof,terminatingtheregistration of the Common StockundertheExchange Act nor has the Companyreceivedanynotification that theCommissioniscontemplating terminating suchregistration.The Companyhas not, in the 12 monthsprecedingthe datehereof,received noticefrom any TradingMarket onwhich the Common Stock is orhasbeen listed or quoted to theeffect that the Company is not incompliance with the listing ormaintenancerequirementsofsuch TradingMarket.TheCompanyis,andhasnoreason tobelievethatitwillnot intheforeseeable futurecontinue tobe,incompliance withallsuchlistingandmaintenance requirements.

(y)              Application of Takeover Protections. The CompanyandtheBoardofDirectorshavetakenallnecessaryaction,ifany,inordertorenderinapplicableanycontrol shareacquisition,businesscombination,poisonpill(includingany distributionunder arights agreement) or othersimilar anti-takeoverprovision under the Company’scertificateofincorporation(orsimilarcharter documents) or thelawsof itsstate ofincorporation that is orcould becomeapplicable to thePurchaseras aresultof thePurchaserand theCompany fulfillingtheirobligations orexercisingtheirrightsundertheTransaction Documents, including withoutlimitation as aresult of the Company’sissuanceof theSecuritiesand thePurchaser’s ownership ofthe Securities.

(z)               Disclosure.Exceptwithrespectto(i)thematerialterms andconditionsofthetransactions contemplatedbytheTransactionDocumentsand(ii)informationgivento theInvestor,ifany, which the Company hereby confirmswill not constitutematerialnon-public information six monthsfrom thedate hereof, the Companyconfirms thatneitherit nor anyotherPerson acting on itsbehalfhasprovidedthePurchaser or theiragents orcounsel with any information that itbelieves constitutes ormightconstitutematerial, nonpublicinformation. TheCompanyunderstands and confirms that thePurchaser will rely on the foregoingrepresentationineffecting transactions insecuritiesof theCompany.All disclosure furnished in writingbyor onbehalf of the Company to thePurchaserregarding theCompany, itsbusiness and thetransactionscontemplatedhereby,including the DisclosureSchedulesto thisAgreement, is true andcorrect anddoesnotcontainanyuntruestatementof amaterialfactor omittostate anymaterialfactnecessary inorder to make thestatementsmadetherein, inlight of thecircumstancesunderwhichtheyweremade,notmisleading.Thepress releasesdisseminatedbythe Company during thetwelve monthsprecedingthedate of thisAgreementtaken as a whole donotcontainany untruestatementofamaterialfactor omittostate amaterialfact required to be statedthereinor necessary inorder to make the statementstherein,inlight of thecircumstancesunderwhichtheywere madeand when made, notmisleading.The Companyacknowledgesandagrees that thePurchaserhasnot made anyrepresentationsor warrantieswithrespecttothetransactionscontemplatedhereby other than thosespecificallysetforth inSection3.2hereof.

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(aa)No Integrated Offering.AssumingtheaccuracyofthePurchaser’s representationsandwarrantiesset forthinSection3.2,neithertheCompany,noranyofitsAffiliates,norany Personacting on itsor theirbehalfhas,directly orindirectly,made anyoffersorsalesofanysecurityorsolicitedanyofferstobuyanysecurity,under circumstancesthatwouldcause thisofferingof the Securities tobeintegrated withpriorofferingsby the Company for purposes of (i) theSecuritiesAct which wouldrequire theregistrationofany suchsecuritiesundertheSecuritiesAct,or (ii) anyapplicableshareholder approval provisions ofany TradingMarketonwhichany of thesecurities of the Company are listed ordesignated.

(bb)Solvency. BasedontheconsolidatedfinancialconditionoftheCompanyasoftheClosingDateaftergivingeffecttothereceiptbytheCompanyoftheproceedsfromthesaleoftheSecurities hereunder:(i)thefairsaleable valueoftheCompany’sassets exceeds theamount that will berequiredto bepaid on or inrespectof theCompany’sexistingdebtsandotherliabilities(includingknowncontingentliabilities)astheymature,(ii)theCompany’sassets donotconstituteunreasonablysmallcapital to carry onitsbusiness as nowconductedandasproposedtobeconductedincluding itscapitalneeds taking intoaccountthe particularcapitalrequirementsof thebusinessconductedby theCompany, andprojectedcapitalrequirements andcapitalavailabilitythereof,and (iii) thecurrentcash flow of theCompany,together with theproceeds the Company wouldreceive,wereit toliquidateall of itsassets,aftertaking intoaccountall anticipated uses of the cash, would besufficient to payall amounts on or inrespect of itsliabilities whensuch amountsare required to be paid. TheCompany does not intendafterthe Closing Date toincurdebtsbeyondits ability to pay suchdebts as they mature(taking intoaccountthe timingandamountsofcashto bepayable on or inrespect of itsdebt). The Companyhasnoknowledge of anyfacts orcircumstanceswhich lead it tobelievethat it will file for reorganization or liquidationunderthe bankruptcy orreorganizationlawsof anyjurisdictionwithin one year from the ClosingDate.

(cc)Tax Status.Except for mattersthatwouldnot,individuallyorintheaggregate,haveorreasonablybeexpectedtoresultinaMaterialAdverse Effect,theCompanyandeachSubsidiaryhasfiledall necessaryfederal, stateandforeignincomeandfranchise taxreturns andhaspaid oraccrued all taxes shownas duethereon,and theCompanyhasnoknowledge of a tax deficiencywhichhas been assertedor threatenedagainstthe Companyor anySubsidiary.

(dd)No General Solicitation.NeithertheCompanynoranypersonactingonbehalfoftheCompanyhasofferedorsoldanyoftheSecuritiesbyanyformofgeneralsolicitationorgeneraladvertising.TheCompanyhasofferedtheSecurities forsaleonly tothePurchaserand certainother“accreditedinvestors”withinthemeaning of Rule501under the SecuritiesAct.

(ee)Foreign Corrupt Practices. NeithertheCompany,nortotheknowledgeoftheCompany,anyagentorotherpersonactingonbehalfoftheCompany,has:(i)directly orindirectly,used any funds for unlawfulcontributions,gifts, entertainment or otherunlawful expensesrelatedtoforeign or domesticpoliticalactivity, (ii) madeanyunlawful payment toforeign or domesticgovernment officials oremployees or toany

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foreignordomesticpoliticalpartiesorcampaignsfrom corporatefunds,(iii)failedtodisclosefullyanycontributionmadebytheCompany(ormadebyanypersonactingonitsbehalfofwhichtheCompanyisaware)whichisinviolationoflawor(iv)violatedin anymaterialrespect anyprovisionof theForeignCorruptPracticesAct of 1977,asamended.

(ff)No Disagreements with Accountants and Lawyers; Outstanding SEC Comments. Therearenodisagreementsofanykindpresentlyexisting,orreasonablyanticipatedbythe Company to arise,betweenthe Companyand theaccountantsandlawyers formerly or presentlyemployedby the Companyand the Company is or immediatelyafter theClosingDatewillbe currentwithrespecttoanyfeesowedtoitsaccountants whichcouldaffecttheCompany’s ability toperformanyof itsobligationsunder any oftheTransactionDocuments.Therearenounresolvedcommentsorinquiriesreceivedby theCompany oritsAffiliates fromtheCommissionwhich remainunresolvedasof the date hereof.

(gg)AcknowledgmentRegarding Purchaser’sPurchaseofSecurities.The CompanyacknowledgesandagreesthatthePurchaserisactingsolelyinthecapacityofan arm’slengthpurchaserwithrespecttotheTransaction Documentsandthetransactionscontemplatedthereby.TheCompanyfurther acknowledgesthatnoPurchaserisactingas afinancial advisororfiduciaryoftheCompany(orinanysimilar capacity)withrespecttotheTransactionDocumentsandthetransactionscontemplatedtherebyandanyadvicegivenbythePurchaseror anyoftheirrespectiverepresentativesoragentsinconnection with theTransactionDocumentsand thetransactions contemplatedthereby is merelyincidentalto thePurchaser’spurchase of the Securities.The Companyfurtherrepresents tothePurchaserthattheCompany’sdecisiontoenterintothisAgreement andtheotherTransactionDocumentshasbeenbasedsolely ontheindependentevaluation ofthetransactions contemplated herebybythe Companyand itsrepresentatives.

3.2                                     Representations and Warrant of the Purchaser. The Purchaser herebyrepresents andwarrants asofthedate hereofandasoftheClosing DatetotheCompanyasfollows:

(a)               Organization; Authority.ThePurchaserisanentitydulyorganized,validlyexistingandingoodstandingunderthelawsofthejurisdictionofitsorganizationwithfullright,corporateorpartnershippowerandauthoritytoenterintoandto consummate thetransactionscontemplatedbytheTransaction Documentsandotherwise tocarry outitsobligationshereunderandthereunder.Theexecution and deliveryof theTransactionDocumentsandperformancebythePurchaserofthetransactionscontemplatedbytheTransaction Documentshavebeendulyauthorizedbyallnecessarycorporate orsimilaraction on thepart ofthePurchaser. EachTransactionDocumenttowhichitisapartyhasbeendulyexecutedbythePurchaser,and whendeliveredbythePurchaser in accordance with the terms hereof, willconstitutethe validand legally bindingobligationof thePurchaser,enforceableagainst it inaccordance with itsterms, except: (i)aslimitedbygeneralequitableprinciples andapplicable bankruptcy,insolvency, reorganization,moratoriumandotherlaws ofgeneral applicationaffectingenforcement of creditors’rightsgenerally, (ii)as limitedbylawsrelating to the

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availability ofspecificperformance,injunctiverelieforotherequitableremedies and(iii)insofar asindemnificationand contribution provisions maybelimitedbyapplicablelaw.

(b)              Own Account.ThePurchaserunderstandsthattheSecurities are“restrictedsecurities”andhavenot beenregisteredundertheSecurities Act or anyapplicablestatesecuritieslawandisacquiringtheSecuritiesasprincipalforitsownaccountandnotwithaview toorfor distributing orresellingsuchSecuritiesoranypartthereof inviolationof theSecuritiesActor anyapplicable state securities law, has nopresent intention of distributingany of such Securities inviolationof theSecuritiesAct oranyapplicable statesecurities lawand has nodirectorindirectarrangement orunderstandingswithany other persons to distribute orregardingthe distribution of suchSecurities (this representationand warranty not limiting thePurchaser’s right to sell theSecuritiespursuantto aregistrationstatement or otherwise incompliance withapplicablefederaland statesecurities laws)inviolation ofthe SecuritiesActoranyapplicable statesecuritieslaw.ThePurchaseris acquiring theSecuritieshereunderin the ordinary course ofitsbusiness.

(c)               Purchaser Status.AtthetimethePurchaserwas offeredtheSecurities,itwas,andasofthedatehereofitis,andoneachdateonwhichitconvertsanyDebenturesit willbeeither: (i)an “accredited investor”asdefinedin Rule501(a)(1),(a)(2), (a)(3),(a)(7)or(a)(8)undertheSecuritiesActor(ii)a“qualified institutionalbuyer”as defined in Rule144A(a)undertheSecuritiesAct.ThePurchaser is notrequired to beregistered as abroker-dealer underSection 15 oftheExchange Act.

(d)              Experience of Purchaser. ThePurchaser,eitheraloneortogetherwithitsrepresentatives, hassuchknowledge, sophistication andexperienceinbusinessand financial matterssoastobecapableofevaluatingthemeritsandrisksoftheprospectiveinvestmentin theSecurities,and has soevaluatedthemeritsandrisksofsuchinvestment.ThePurchaserisabletobeartheeconomicriskofaninvestment in theSecuritiesand, at thepresenttime, is able toafforda complete lossofsuch investment.

(e)               General Solicitation.The PurchaserisnotpurchasingtheSecuritiesasaresultofanyadvertisement,article,noticeorothercommunication regardingtheSecuritiespublished inanynewspaper,magazineorsimilar media orbroadcastovertelevision orradioorpresentedat anyseminar or anyothergeneralsolicitation orgeneraladvertisement.

ARTICLEIV.

OTHERAGREEMENTS OFTHEPARTIES

4.1                                     Transfer Restrictions.

(a)                TheSecuritiesmayonlybedisposedofincompliancewithstateand federalsecuritieslaws.InconnectionwithanytransferofSecuritiesotherthanpursuantto aneffectiveregistration statement orRule144,to theCompanyorinconnection with a pledgeascontemplated inSection4.1(b),theCompanymayrequirethetransferorthereoftoprovide to theCompanyanopinion of counselselectedby the transferorand

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reasonablyacceptabletotheCompany,theformandsubstanceofwhichopinionshallbereasonablysatisfactorytotheCompany,totheeffectthatsuchtransferdoesnotrequire registrationofsuchtransferredSecuritiesundertheSecurities Act.Asaconditionoftransfer,any suchtransfereeshallagree inwriting to be bound by theterms of thisAgreementand shall havetherightsof aPurchaserunder thisAgreement.

(b)               ThePurchaseragreestotheimprinting,solongasisrequiredbythisSection 4.1, of alegendon anyoftheSecurities in the followingform:

[NEITHER]THISSECURITY[NORTHESECURITIESINTO WHICHTHISSECURITYIS[CONVERTIBLE]]HAS[NOT]BEENREGISTEREDWITHTHESECURITIESANDEXCHANGECOMMISSIONORTHESECURITIESCOMMISSIONOFANYSTATEINRELIANCEUPONANEXEMPTION FROMREGISTRATION UNDER THESECURITIESACT OF 1933, ASAMENDED (THE“SECURITIES ACT”),AND,ACCORDINGLY, MAYNOTBE OFFERED ORSOLDEXCEPTPURSUANT TO ANEFFECTIVEREGISTRATION STATEMENTUNDERTHESECURITIESACT ORPURSUANT TO ANAVAILABLEEXEMPTION FROM,ORIN A TRANSACTIONNOT SUBJECT TO, THEREGISTRATIONREQUIREMENTS OF THESECURITIES ACTANDINACCORDANCEWITH APPLICABLESTATE SECURITIESLAWS ASEVIDENCEDBYALEGALOPINIONOFCOUNSEL TO THETRANSFERORTO SUCHEFFECT,THESUBSTANCEOFWHICH SHALLBEREASONABLY ACCEPTABLE TO THECOMPANY.THISSECURITY [AND THESECURITIESISSUABLE UPON[CONVERSION] OFTHISSECURITY] MAYBEPLEDGEDINCONNECTIONWITH ABONAFIDE MARGIN ACCOUNT OROTHERLOAN SECUREDBY SUCHSECURITIES.

The CompanyacknowledgesandagreesthatthePurchasermayfromtimetotimepledgepursuanttoabonafidemarginagreementwitharegisteredbroker-dealerorgrantasecurityinterestinsomeoralloftheSecuritiestoafinancial institutionthatisan“accredited investor”asdefined in Rule 501(a) under theSecurities Act and whoagrees inwritingwith the Company to be boundby theprovisionsof thisAgreementand, ifrequiredunder the terms of sucharrangement andsubjecttocompliance withapplicablefederalandstatesecuritieslaws,thePurchasermaytransferpledgedorsecuredSecurities to thepledgees or secured parties. Absentspecialcircumstances,such apledge ortransfer would not be subject toapproval of the Companyandnolegal opinion oflegalcounselof the pledgee,secured party or pledgor shall berequiredinconnectiontherewith.Further,nonotice shall berequired of suchpledge. At the Purchaser’s expense, the Company willexecute anddeliver suchreasonable documentationas apledgee orsecuredparty ofSecuritiesmay reasonablyrequest inconnection with a pledge ortransfer of theSecurities.

(c)   CertificatesevidencingtheUnderlyingShares(or,ifUnderlyingSharesare issuedinuncertificated form,comparablesharenotices)shallnotcontainanylegend(includingthelegend setforth inSection4.1(b) hereof): (i) while aregistration statementcoveringtheresale of such securityiseffective under theSecuritiesAct,or (ii) following anysaleof suchUnderlyingSharespursuant to Rule144,or(iii)ifsuchUnderlying

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SharesareeligibleforsaleunderRule144,withouttherequirementfortheCompanytobeincompliancewiththecurrentpublicinformationrequiredunderRule144astosuchUnderlying Sharesandwithoutvolumeormanner-of-salerestrictionsor(iv)ifsuchlegendis nototherwise requiredunderapplicablerequirementsof theSecuritiesAct(includingjudicial interpretationsand pronouncementsissuedby thestaff of the Commission),asreasonablydeterminedby theCompany. UponthePurchaser’s requestinconnectionwithaproposed saleofUnderlying SharespursuanttoRule 144andifthe Company reasonablydeterminesitissorequired, uponreceiptofcustomarydocumentationfrom Purchaser’sbroker (if theUnderlying Sharesare sold inbrokerstransactions),theCompanyshall,atits own costandeffort,retain legal counsel toprovidean opinion letter to theCompany’s transferagentopining that theUnderlyingShares mayberesold withoutregistration under theSecuritiesAct, pursuant to Rule 144,promulgatedthereunder, so longas the requirements of Rule 144aremet for anyUnderlyingShares to beresoldthereunder.The Company shallarrange for any such opinion letter to beprovidednotlater than two (2)businessdaysafter thedateof delivery toandreceipt by the Company of awrittenrequest by thePurchaser together with (ifrequiredinorder torenderthe opinion)anybroker’srepresentationletterof other customarydocumentationreasonablyrequestedby theCompanyevidencingcompliancewith Rule 144(the“LegendRemovalDate”).

(d)              InadditiontothePurchaser’sotheravailableremedies,theCompanyshallpaytothePurchaser,incash,aspartialliquidateddamages andnotasapenalty,foreach

$1,000 ofUnderlyingShares(basedontheVWAPoftheCommonStockonthedatesuchSecurities aresubmittedtotheTransferAgent)deliveredforremovaloftherestrictivelegendandsubjecttoSection4.1(c),$10perTradingDay(increasingto$20per TradingDay5 TradingDaysafter suchdamages havebegun toaccrue) foreachTradingDayaftertheLegendRemovalDateuntilsuchcertificate(or,iftheUnderlyingSharesare in uncertificatedform, acomparable notice ofshareownership)isdelivered without alegend. Nothingherein shall limit thePurchaser’sright to pursueactualdamages fortheCompany’sfailuretodelivercertificatesrepresentinganySecuritiesas requiredby theTransaction Documents,and thePurchasershallhavetherighttopursueallremediesavailableto itatlaworinequityincluding,withoutlimitation,adecreeofspecific performanceand/orinjunctive relief.

(e)                ThePurchaseragreesthatthePurchaserwillsellanySecuritiesonlypursuanttoeitheranexemptionfromregistrationoraregistration statementundertheSecuritiesAct,includinganyapplicable prospectusdelivery requirements,and thatif Securities are sold pursuant to aregistration statement,theywill be sold incompliance with the plan ofdistribution setforththerein,and acknowledges that the removal of therestrictive legend fromcertificates representing Securitiesasset forth in thisSection 4.1 ispredicated upon the Company’srelianceupon thisunderstanding.

4.2                                     AcknowledgmentofDilution.TheCompanyacknowledgesthattheissuanceoftheSecuritiesmayresultindilutionoftheoutstanding sharesofCommonStock,whichdilutionmay besubstantial undercertainmarket conditions. The Company furtheracknowledgesthatitsobligationsunder theTransactionDocuments,including, withoutlimitation,itsobligation to issue theUnderlyingSharespursuant to theTransaction Documents,areunconditionaland

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absolute and not subjecttoanyright ofset off,counterclaim,delayorreduction, regardlessof theeffectofanysuchdilutionoranyclaimtheCompanymayhaveagainstthePurchaserandregardlessofthedilutiveeffectthatsuchissuancemayhaveontheownershipoftheotherstockholdersof theCompany.

4.3                                     Furnishing of Information.UntiltheearliestofthetimethatthePurchaserownsnoSecurities,theCompanycovenantsmaintaintheregistrationoftheCommonStockunder Section 12(b) or12(g)of theExchangeAct andto useallcommerciallyreasonableefforts to timely file (or obtain extensions inrespect thereofandfile within theapplicablegrace period)allreportsrequiredto be filedby the Companyafterthedatehereofpursuant to theExchange Act. As longasthe Purchaser ownsSecurities, if the Company is notrequiredto filereports pursuant to theExchangeAct,it willprepare andfurnishto thePurchaserandmake publiclyavailable inaccordancewith Rule144(c)suchinformationas isrequiredfor thePurchasertosell theSecuritiesunderRule 144.The Companyfurther covenants that it willuseallcommerciallyreasonableeffortsto take suchfurtheractionasany holder of Securities may reasonablyrequest, to theextent requiredfrom timetotimetoenable suchPerson tosell suchSecurities withoutregistration undertheSecuritiesAct withintherequirements oftheexemptionprovidedby Rule144.

4.4                                     Integration.TheCompanyshallnotsell,offerforsaleorsolicit offerstobuyorotherwisenegotiateinrespectofanysecurity(asdefinedinSection2oftheSecuritiesAct)thatwouldbeintegratedwiththeofferorsaleoftheSecuritiestothePurchaserinamannerthat wouldrequire theregistrationunder the SecuritiesActof the sale of the SecuritiestothePurchaser.

4.5                                     Conversion and ExerciseProcedures.TheformofNoticeofConversionincludedintheDebentures setsforththetotalityoftheproceduresrequiredofthePurchaserinordertoconverttheDebentures.Noadditionallegalopinion,otherinformationorinstructionsshallberequiredof thePurchaser to convert theirDebentures.TheCompanyshallhonor conversions of theDebenturesand shalldeliverUnderlyingSharesinaccordancewiththeterms,conditionsandtimeperiodssetforthin theTransactionDocuments.

4.6                                     SecuritiesLawsDisclosure;Publicity.The Companyshall,by8:30a.m.(New YorkCitytime)ontheTradingDayimmediatelyfollowing thedatehereof,issueaCurrentReportonForm6-K disclosing thematerial terms of thetransactions contemplated herebyandincluding the TransactionDocumentsasexhibitsthereto. The Company and thePurchasershallconsult witheach other in issuingany other pressreleases with respect to the transactionscontemplatedhereby,andneithertheCompany northePurchasershall issueanysuchpressreleasenorotherwisemakeany suchpublicstatement(otherthan intheCompany’sSECReportsafter the Closing Dateorexhibitsfiled therewith)without theprior consentof theCompany, withrespect toany pressrelease of thePurchaser,or without thepriorconsent of thePurchaser, withrespect toanypress release of theCompany, whichconsentshall not unreasonably be withheldordelayed, except ifsuch disclosure isrequiredby law, inwhich case the disclosing party shall promptly provide the otherparty with prior noticeofsuch public statement orcommunication.Notwithstandingtheforegoing, other than inconnectionwiththeCompany’sSECReportsordisclosures toanyregulatoryagencyor TradingMarket that the Companydeterminesare necessary orappropriate, the Company shall not publicly disclose the name of the Purchaser, or

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include thenameofthePurchaser,inanypressreleaseorsimilarpublicstatement,withoutthepriorwritten consent ofthe Purchaser.

4.7                                     ShareholderRightsPlan.NoclaimwillbemadeorenforcedbytheCompanyor,withtheconsentoftheCompany,anyotherPerson,thatthePurchaserisan“AcquiringPerson”under anycontrolshareacquisition,businesscombination,poisonpill(includinganydistributionunder arights agreement) orsimilaranti-takeover plan orarrangementineffect, or that thePurchasercouldbedeemed to triggertheprovisions ofanysuchplan or arrangement,byvirtue ofreceivingSecuritiesunder theTransaction Documents oranyotheragreementbetween the Companyandthe Purchaser.

4.8                                     Non-PublicInformation. ExceptwithrespecttothematerialtermsandconditionsofthetransactionscontemplatedbytheTransactionDocuments,theCompanycovenantsand agreesthataftertheClosingDateneitherit, noranyotherPersonactingon its behalf, willprovide thePurchaseror itsagents orcounsel with anyinformation that the Companybelievesconstitutesmaterialnon-public information, unlesspriorthereto thePurchaser shallhaveexecutedawrittenagreementregardingthe confidentialityand use of suchinformation.The Company understandsandconfirmsthatthe Purchaser shall be relying on the foregoing covenant ineffecting transactions insecuritiesof theCompany. Purchaseracknowledges that it isawarethat the UnitedStatessecuritieslaws prohibit any person who hasmaterialnon-publicinformationabout a companyfrom purchasing orselling securitiesof suchcompany,orfromcommunicating such information toany otherpersonunder circumstances inwhich it is reasonablyforeseeablethat such person is likely topurchaseorsell suchsecurities,and Purchaseragreesnot toengageinanyunlawful trading insecurities ofthe Companyorunlawful misuse ormisappropriationofany such information.Purchaser agrees to maintain theconfidentiality ofand not disclose oruse(except forpurposes relatingto thetransactionscontemplatedby thisAgreement)anyconfidential, proprietary or non-publicinformationdisclosed by the Company toPurchaser.

4.9                                     UseofProceeds.TheCompanyshallusethenetproceeds fromthesaleoftheSecuritieshereunderforworking capitalpurposesandshallnotusesuchproceedsfor:(a)thesatisfactionof any portion ofthe Company’s debt(otherthanpayment oftradepayablesin the ordinarycourse of theCompany’s business andpriorpractices), (b) theredemption of any Common Stock orCommonStockEquivalents or (c)thesettlement ofany outstandinglitigation.

4.10                                 Indemnification of Purchaser. SubjecttotheprovisionsofthisSection4.10,theCompanywillindemnifyandholdthePurchaseranditsdirectors, officers, shareholders,members, partners, employees andagents(andanyotherPersonswithafunctionallyequivalentroleofaPersonholdingsuchtitles notwithstandingalackofsuchtitleoranyothertitle), each PersonwhocontrolsthePurchaser (withinthemeaningofSection15oftheSecuritiesAct andSection 20 of theExchange Act), and thedirectors, officers,shareholders, agents,members, partnersoremployees(andanyother Persons with a functionally equivalent role of aPersonholding suchtitles notwithstanding alackofsuch titleorany othertitle)ofsuchcontrollingperson (each,a“PurchaserParty”)harmless from anyandalllosses, liabilities,obligations,claims,contingencies,damages,costs and expenses, includingalljudgments, amountspaid insettlements,courtcostsand reasonable attorneys’feesand costs ofinvestigation that any suchPurchaserPartymaysuffer or incurasaresult of orrelating to anyaction, suit,claim or

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proceeding broughtbyathirdpartyagainstsuchPurchaserPartyarisingoutoforrelatingto(a)anybreachofanyoftherepresentations,warranties, covenantsoragreementsmadebythe Company in thisAgreement or in theother TransactionDocuments or(b)anyaction institutedagainstaPurchaser in any capacity,orany of themortheirrespectiveAffiliates,byanystockholderof the Companywho is notanAffiliateof thePurchaser, withrespect toanyof thetransactionscontemplatedby theTransaction Documents(unless such action isbased upon abreachofsuchPurchaser’s representations, warrantiesorcovenantsundertheTransactionDocumentsoranyagreements orunderstandingsthePurchasermayhavewithany suchstockholder oranyviolationsbythePurchaserof state orfederal securitieslawsor anyconductbythePurchaserwhichconstitutes fraud,grossnegligence, willfulmisconduct ormalfeasance). Ifanyactionshallbebroughtagainst thePurchaserPartyinrespectofwhichindemnitymaybesought pursuant to thisAgreement, such Purchaser Party shall promptly notify the Company inwriting,and the Company shall have theright toassume thedefensethereof withcounsel of its ownchoosingreasonablyacceptable tothePurchaser Party.AnyPurchaserParty shallhave therightto employ separatecounselinanysuch actionandparticipateinthedefense thereof,butthefees and expenses of suchcounsel shall beatthe expense of such Purchaser Partyexceptto the extentthat(i)theemploymentthereofhasbeenspecificallyauthorizedbytheCompanyinwriting,(ii)theCompany hasfailedafterareasonableperiodoftime toassumesuchdefenseand to employcounsel or (iii) in such actionthere is, in thereasonableopinion of such separatecounsel, amaterialconflict onanymaterialissuebetween the position of the Companyandthe position of suchPurchaser Party, in which case the Company shallberesponsible for thereasonablefeesand expenses of no more than one suchseparate counsel.The Companywill not be liable toany Purchaser Partyunder this Agreement (y)forany settlementby aPurchaser Partyeffected withouttheCompany’sprior written consent,whichshallnot be unreasonably withheldordelayed; or (z) to the extent, but only to the extent that a loss,claim, damage or liability isattributable toanyPurchaser Party’sbreachof anyof the representations,warranties,covenants oragreements madebysuchPurchaserPartyinthisAgreementorin theotherTransactionDocuments.

4.11 Reservation andListingof Securities.

(a)                TheCompanyshallmaintainareserve fromitsdulyauthorizedsharesofCommonStockforissuancepursuanttotheTransactionDocumentsinsuchamountasmaythenbe required to fulfill itsobligations infullundertheTransaction Documents.

(b)              If,onanydate,thenumberofauthorizedbutunissued(andotherwiseunreserved)sharesofCommonStockislessthantheRequiredMinimumonsuchdate,thentheBoardofDirectorsshallusecommerciallyreasonable effortstoamendtheCompany’scertificateorarticles ofincorporation toincrease the number ofauthorized butunissuedshares of Common Stock toatleast theRequiredMinimum at such time, assoonas possible and inany event notlater than the75thcalendardayaftersuch date.

(c)                TheCompanyshall,ifapplicable:(i)inthetimeandmannerrequiredbytheprincipalTradingMarket,prepare andfilewithsuchTradingMarketanadditionalshareslistingapplicationcovering a number ofsharesof Common Stockat leastequalto theRequiredMinimumonthedateofsuchapplication,(ii)takeallstepsnecessary tocause suchshares ofCommon Stocktobe approved for listing onsuch TradingMarketas

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soonaspossiblethereafter,(iii)providetothePurchaserevidenceofsuchlistingand(iv)maintainthelistingofsuchCommonStockonanydateat leastequaltotheRequiredMinimum onsuch date onsuch TradingMarket oranother TradingMarket.

4.12                                 FormD;BlueSkyFilings.TheCompanyagreestotimelyfileaFormDwithrespecttotheSecurities asrequiredunderRegulationDandtoprovideacopythereof,promptly uponrequestof the Purchaser. The Company shall take suchactionas the Company shall reasonablydetermineisnecessary in order to obtainan exemptionfor,or to qualify the Securitiesfor,saletothe PurchaserattheClosing underapplicablesecuritiesor“BlueSky” lawsof thestatesof theUnited States,and shallprovideevidenceofsuchactions promptlyuponrequestof the Purchaser.

4.13                                 Corporate Existence.SolongasanyoftheDebenturesremainoutstanding,theCompanyshallnotdirectlyorindirectlyconsummateanymerger,reorganization,restructuring,consolidation,saleofallorsubstantiallyall oftheCompany’sassetsor anysimilartransactionorrelatedtransactions(eachsuchtransaction,an“Organizational Change”) unless,prior totheconsummationan OrganizationalChange,the Company obtains thewrittenconsentof thePurchaser,whichconsentshallnotbe unreasonablywithheld. Inanysuchcase,theCompany willmakeappropriateprovisionwithrespecttosuchholders’rightsand intereststoinsure that theprovisionsof thisSection 4.13 willthereafterbe applicable to theDebentures.

4.14                                 Transfer Agent.TheCompany covenantsandagreesthatitwillatall timeswhiletheDebentures remain outstandingmaintain adulyqualifiedindependenttransferagent.

4.15 Intentionallyomitted

4.16                                 No Short Selling.ThePurchaserhas andshallnot,directlyorindirectly,his,heroritself,throughrelated parties,affiliatesorotherwise,(i)sell“short”or“shortagainstthebox”(asthosetermsaregenerallyunderstood)anyequitysecurity of the Company or (ii)otherwiseengage in anytransactionthatinvolveshedgingof thePurchaser’s position in any equity security of theCompany,until thelater of(i) the date theDebentureownedby thePurchaser is no longerownedby thePurchaser, or(ii)theMaturity Date(assuchtermisdefinedintheDebenture)and theConversion Date.

ARTICLEV.MISCELLANEOUS

5.1                                     Termination.ThisAgreementmaybeterminatedbythePurchaser,astothePurchaser’sobligationshereunderonlyandwithoutanyeffect whatsoeverontheobligationsbetweentheCompanyandthePurchaser,bywritten noticetotheotherparties,iftheClosing has notbeenconsummated on orbeforeApril 30, 2014;provided,however, that suchtermination will notaffectthe rightof any party to sue foranybreachby theother party(orparties).

5.2                                     Fees and Expenses. ExceptasexpresslysetforthintheTransactionDocumentstothecontrary, eachpartyshallpaythefeesandexpensesofitsadvisers,counsel, accountantsandotherexperts,ifany, and allotherexpensesincurredbysuchpartyincidenttothenegotiation,preparation, execution, deliveryandperformanceof thisAgreement. The Company

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shallpay alltransferagentfees,stamptaxesandothertaxesand dutiesleviedinconnectionwiththedeliveryof anySecuritiesto the Purchaser.

5.3                                     Entire Agreement.TheTransactionDocuments,togetherwiththeexhibitsand schedules thereto,contain theentireunderstandingofthepartieswithrespecttothesubjectmatterhereofandsupersede allprioragreements andunderstandings,oralorwritten,withrespectto suchmatters,which thepartiesacknowledgehave been merged into suchdocuments,exhibits andschedules.

5.4                                     Notices.Anyandallnoticesorothercommunicationsordeliveriesrequiredorpermittedtobeprovidedhereundershallbeinwritingandshallbedeemedgivenand effective on theearliest of:(a)one TradingDayafterthedate oftransmission, if suchnoticeorcommunicationisdelivered viafacsimile at thefacsimilenumberset forth on thesignaturepages attachedheretopriorto 5:30 p.m.(NewYorkCity time) on aTradingDay, withwrittenconfirmation of successful transmission, (b) the nextTradingDayafterthedateoftransmission,ifsuchnotice orcommunicationisdeliveredviafacsimile atthefacsimilenumbersetforthon thesignaturepagesattachedheretoonadaythatisnotaTradingDayorlaterthan5:30p.m.(NewYorkCitytime)onanyTradingDay,(c)thesecond TradingDayfollowingthedate ofmailing, ifsentbyU.S. nationallyrecognizedovernightcourierserviceor(d)uponactual receiptby the party to whom suchnoticeisrequired to begiven. The address for suchnoticesand communicationsshall beas setforth on thesignature pagesattachedhereto.

5.5                                     Amendments;Waivers.No provisionofthis Agreementmaybewaived,modified,supplementedoramendedexceptinawritteninstrumentsigned,inthecaseofanamendment,bytheCompanyandthePurchaseror,inthecaseofawaiver,bythepartyagainst whomenforcementofany such waivedprovisionissought. Nowaiverofanydefaultwithrespecttoany provision,conditionorrequirementofthisAgreementshallbedeemedtobeacontinuing waiver in thefuture or awaiver of any subsequentdefault or awaiver ofanyotherprovision, condition orrequirement hereof, nor shallany delay or omission ofanyparty toexercise anyright hereunder in any mannerimpairtheexerciseofany suchright.

5.6                                     Headings.Theheadingsherein areforconvenienceonly,donotconstituteapartofthisAgreement and shall not bedeemed to limit oraffectanyof theprovisionshereof.

5.7                                     Successors and Assigns.ThisAgreementshallbebindinguponandinuretothebenefitofthepartiesandtheirsuccessorsandpermitted assigns.TheCompanymaynotassignthisAgreementoranyrightsorobligationshereunderwithoutthepriorwritten consentof thePurchaser(other than bymerger). The Purchaser mayassignany orall of itsrightsunderthisAgreementtoanyPersontowhom thePurchaserassignsortransfersany Securities,provided that suchtransfer complies withall applicable federaland state securitieslaws and that suchtransfereeagrees in writing with the Company to be bound, withrespect to thetransferred Securities, by the provisionsof theTransaction Documentsthat apply to the “Purchaser.”

5.8                                     No Third-Party Beneficiaries.ThisAgreementisintendedforthebenefitoftheparties heretoandtheirrespectivesuccessors and permittedassignsandisnotforthebenefitof,normayanyprovisionhereofbeenforcedby,any otherPerson,except asotherwisesetforthinSection4.10.

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5.9                                     Governing Law.Allquestions concerningtheconstruction,validity,enforcement and interpretationoftheTransactionDocumentsshallbegovernedbyandconstruedand enforcedinaccordancewiththeinternallawsoftheState ofNewYork,withoutregardtotheprinciplesofconflicts of lawthereof.Eachparty agrees thatalllegal proceedings concerningtheinterpretations, enforcementanddefenseof thetransactionscontemplatedbythisAgreementandany otherTransactionDocuments(whether brought against a partyhereto or itsrespectiveaffiliates,directors,officers, shareholders,employeesoragents)shall becommencedexclusively inthestateandfederal courtssitting intheCity ofNewYork.Eachparty hereby irrevocably submits to theexclusivejurisdictionof the stateandfederalcourtssitting in the Cityof NewYork,borough ofManhattan for theadjudicationofany dispute hereunder or inconnection herewith orwith anytransactioncontemplated hereby ordiscussed herein(includingwithrespect totheenforcementofanyoftheTransactionDocuments),andhereby irrevocablywaives,and agreesnot toassert inanysuit,actionorproceeding,anyclaim thatit isnot personally subject to thejurisdictionof any suchcourt, that suchsuit,action orproceedingisimproper or isaninconvenient venueforsuchproceeding.Eachpartyhereby irrevocablywaivespersonalserviceofprocessand consentstoprocess beingservedinany such suit,action orproceedingby mailing acopythereofviaregistered orcertified mail orovernightdelivery(withevidenceofdelivery)to such partyat theaddressineffect fornotices to itunderthisAgreementandagreesthat suchserviceshallconstitutegoodandsufficientservice ofprocessand noticethereof. Nothingcontainedhereinshall bedeemed to limit inanywayanyrightto serveprocess inany othermannerpermittedby law.Ifeitherparty shallcommencean action orproceedingtoenforceanyprovisions of theTransaction Documents, then theprevailingparty in suchaction orproceeding shall bereimbursedby the other party for itsreasonableattorneys’ feesandothercostsand expensesincurredwith theinvestigation,preparation and prosecution of suchaction orproceeding.

5.10                                 Survival.TherepresentationsandwarrantiesshallsurvivetheClosingandthedeliveryoftheDebenturesuntil,withrespectto thePurchaser,theDebentureheldbythePurchaserhas been paid in full orconverted intoUnderlyingShares, atwhich timethey shall expire such respect toPurchaserand shall no longer be of anyforceoreffect.

5.11                                 Execution.ThisAgreementmaybeexecutedintwoormorecounterparts,allofwhichwhen takentogethershallbeconsideredoneandthesameagreementandshallbecomeeffectivewhen counterpartshavebeensignedbyeachpartyanddeliveredtotheotherparty,itbeingunderstoodthat bothparties need not sign the same counterpart.In the event thatanysignatureisdelivered by facsimiletransmissionor by e-maildelivery of a“.pdf”formatdatafile, suchsignatureshallcreateavalidandbindingobligationof thepartyexecuting(or onwhosebehalfsuchsignatureisexecuted)withthesameforceandeffectasifsuchfacsimileor“.pdf”signature pagewere anoriginal thereof.

5.12                                 Severability.Ifanyterm,provision,covenantorrestrictionofthisAgreement isheldbyacourtofcompetentjurisdictiontobeinvalid,illegal,voidorunenforceable,theremainder of theterms,provisions,covenantsandrestrictions setforthherein shallremaininfullforceand effectandshall in nowaybeaffected,impairedorinvalidated,andthepartieshereto shall usetheircommerciallyreasonableeffortsto findandemploy analternativemeans toachieve thesameor substantially thesameresultas thatcontemplatedbysuchterm,provision, covenantorrestriction. It is herebystipulated anddeclared to be theintention of theparties that

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they wouldhaveexecutedtheremainingterms,provisions,covenantsandrestrictionswithoutincludinganyof such that maybehereafterdeclared invalid,illegal, voidorunenforceable.

5.13                                 Rescission and WithdrawalRight. Notwithstanding anythingtothecontrarycontainedin(andwithout limitinganysimilar provisionsof)anyoftheotherTransaction Documents,wheneverthePurchaser exercisesaright, election,demandoroptionunderaTransactionDocumentand the Company does not timelyperformitsrelatedobligations within theperiodstherein provided, then thePurchaser mayrescind orwithdraw,in its solediscretionfrom time to timeuponwritten notice to the Company,anyrelevantnotice,demand orelection in whole or in part withoutprejudiceto its future actionsand rights;provided,however, that in thecaseof arescission of aconversionof aDebenture orexercise of a Warrant, thePurchaser shall berequiredtoreturnanysharesof Common Stocksubject toany suchrescinded conversion orexercisenotice.

5.14                                 Replacement of Securities.IfanycertificateorinstrumentevidencinganySecuritiesismutilated, lost,stolenordestroyed,theCompanyshallissueorcausetobeissuedinexchangeand substitutionforanduponcancellationthereof (inthecaseof mutilation),orinlieuofand substitutiontherefor, anew certificate orinstrument, but onlyuponreceipt ofevidencereasonably satisfactory to the Companyof such loss,theftordestruction. The applicant for anewcertificate or instrumentunder suchcircumstancesshallalsopay anyreasonable third-partycosts (including customaryindemnity) associated with theissuanceof suchreplacementSecurities.

5.15                                 Remedies.Inadditiontobeingentitledtoexerciseall rightsprovidedhereinorgrantedbylaw,includingrecoveryofdamages,eachofthePurchaserandtheCompanywillbeentitledtospecificperformance under theTransactionDocuments.Thepartiesagreethat monetarydamagesmay not beadequatecompensation for any lossincurredbyreasonofanybreach ofobligationscontained in the TransactionDocumentsandherebyagrees towaiveandnot toassert inany action for specificperformance ofany such obligation thedefensethat a remedyatlawwould beadequate.

5.16                                 PaymentSetAside. TotheextentthattheCompanymakesapaymentorpaymentstothePurchaserpursuanttoanyTransactionDocumentorthePurchaser enforcesorexercisesitsrightsthereunder,andsuchpayment orpaymentsortheproceedsofsuchenforcementorexerciseorany partthereof are subsequently invalidated,declaredto befraudulentorpreferential, setaside,recoveredfrom,disgorgedby or are required to berefunded,repaidorotherwiserestoredtotheCompany,atrustee,receiverorany otherpersonunderany law(including, without limitation, any bankruptcy law, state orfederallaw,common law orequitablecause ofaction),thento the extent ofanysuchrestorationtheobligation orpartthereof originallyintended to besatisfiedshall berevivedandcontinuedin fullforceandeffect as if such paymenthad not been made or suchenforcement or setoffhadnotoccurred.

5.17                                 Usury.Totheextentitmaylawfullydoso,theCompanyherebyagreesnottoinsistuponorpleadorinanymannerwhatsoeverclaim, andwillresistanyand alleffortstobecompelledtotake thebenefitoradvantageof,usurylawswherever enacted,noworatanytimehereafter inforce, inconnectionwith anyclaim,action orproceedingthatmaybe broughtbythePurchaser in order toenforceanyright or remedy underanyTransactionDocument.

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NotwithstandinganyprovisiontothecontrarycontainedinanyTransactionDocument,itisexpresslyagreed andprovidedthatthetotal liabilityoftheCompanyundertheTransactionDocumentsforpaymentsinthenatureofinterestshallnotexceedthemaximumlawful rateauthorizedunder applicable law (the “MaximumRate”), and, without limiting theforegoing, in noeventshallanyrateofinterest or defaultinterest, or both of them, whenaggregated withany other sums in the nature ofinterest that the Companymaybe obligated topayunder theTransactionDocumentsexceed such MaximumRate.It isagreedthat if themaximumcontractrateofinterestallowedbylawandapplicableto theTransactionDocuments isincreasedordecreased by statute oranyofficial governmentalaction subsequent to thedatehereof, the new maximumcontractrateofinterestallowed by law will be the MaximumRateapplicable to theTransaction Documents from theeffectivedateforward, unless suchapplicationisprecluded byapplicable law. If under anycircumstanceswhatsoever,interest inexcess of the MaximumRateispaidby the Company to thePurchaser withrespect to indebtednessevidenced by theTransactionDocuments,suchexcess shall be appliedby the Purchaser to theunpaidprincipalbalanceof any suchindebtedness or berefundedto theCompany, the manner of handling suchexcessto be at the Purchaser’selection.

5.18                                 Liquidated Damages.TheCompany’s obligationstopayanypartialliquidateddamagesorotheramountsowingundertheTransactionDocumentsisacontinuingobligationoftheCompanyand shallnotterminateuntilall unpaidpartial liquidateddamagesand otheramountshavebeenpaid notwithstanding the fact that theinstrumentor security pursuant towhichsuch partialliquidateddamagesorotheramounts aredueandpayableshallhavebeencanceled.

5.19                                 Saturdays, Sundays, Holidays, etc.Ifthelastorappointeddayforthetakingofanyactionortheexpirationofanyright requiredorgrantedhereinshallnotbeaBusiness Day,thensuchactionmaybetakenorsuchrightmay beexercisedonthenext succeedingBusinessDay.

5.20                                 Construction.Thepartiesagreethateachofthemand/ortheirrespectivecounsel hasreviewedandhadanopportunitytorevisetheTransaction Documentsand,therefore,thenormalruleofconstructiontotheeffectthatanyambiguities aretoberesolved against the drafting partyshall not beemployedin theinterpretation of the TransactionDocumentsor anyamendments hereto.

5.21                                 WAIVEROFJURYTRIAL.INANYACTION,SUIT,ORPROCEEDINGINANYJURISDICTIONBROUGHTBYANYPARTYAGAINSTANYOTHER PARTY,THEPARTIES EACHKNOWINGLYANDINTENTIONALLY,TOTHEGREATESTEXTENT PERMITTEDBYAPPLICABLELAW,HEREBYABSOLUTELY,UNCONDITIONALLY,IRREVOCABLYANDEXPRESSLY WAIVESFOREVER TRIAL BYJURY.

(SignaturePages Follow)

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INWITNESSWHEREOF,theparties heretohavecausedthisSecuritiesPurchase Agreementtobe dulyexecutedbytheirrespectiveauthorizedsignatoriesasofthedatefirstindicated above.

PLADEO CORP. Address forNotice:

By:		Fax:
	Name:
	Title:
With acopyto(which shall not constitute notice):

[REMAINDEROFPAGEINTENTIONALLY LEFTBLANK

SIGNATURE PAGE FOR PURCHASERFOLLOWS]

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[PURCHASER SIGNATUREPAGESTOPLADEOSECURITIESPURCHASEAGREEMENT]

INWITNESSWHEREOF,theundersigned havecausedthisSecuritiesPurchase Agreementtobe dulyexecutedbytheirrespectiveauthorizedsignatoriesasofthedatefirstindicated above.

Nameof Purchaser:

SignatureofAuthorized Signatoryof Purchaser:

NameofAuthorized Signatory:  

Title ofAuthorizedSignatory: 

EmailAddress ofAuthorizedSignatory: 

FacsimileNumber ofAuthorizedSignatory:  

AddressforNoticeofPurchaser:

Address forDeliveryofSecurities for Purchaser(if not same asaddressfornotice):

SubscriptionAmount:

EIN Number:[PROVIDE THISUNDER SEPARATE COVER]

[SIGNATURE PAGESCONTINUE]

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