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<SEC-DOCUMENT>0000944075-09-000024.txt : 20090522
<SEC-HEADER>0000944075-09-000024.hdr.sgml : 20090522
<ACCEPTANCE-DATETIME>20090520090622
ACCESSION NUMBER:		0000944075-09-000024
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20090518
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090520
DATE AS OF CHANGE:		20090520

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET MOBILE, INC.
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25904
		FILM NUMBER:		09841108

	BUSINESS ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808
		BUSINESS PHONE:		5109333000

	MAIL ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOCKET COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19950418
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0518.htm
<DESCRIPTION>8-K
<TEXT>
<html>
<head>

</head>

<body bgcolor="#FFFFFF">
<div align=left>
  <hr width="100%">
  <div align=center>
    <hr width="100%">
    <p><font face="Times New Roman, Times, serif" size="3"><b><font size="5">UNITED
      STATES<br>
      </font></b><font size="5"><strong>SECURITIES AND EXCHANGE COMMISSION</strong></font></font></p>
  </div>
</div>
<p align=center><font face="Times New Roman, Times, serif" size="3">Washington,
  DC 20549</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3">__________________________</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"> <b><font size="5">FORM
  8-K</font></b><br>
  <br>
  <b>CURRENT REPORT</b><br>
  <br>
  Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934<br>
  <b><br>
  </b></font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>May 18,
  2009</b><br>
  Date of Report<br>
  (Date of earliest event reported)</font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3">__________________________<br>
  </font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><strong><font size="5">SOCKET
  MOBILE, INC.</font></strong><br>
  (Exact name of registrant as specified in its charter) </font></p>
<p>&nbsp;
<table cols=3 width="100%">
  <tr>
    <td height=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>Delaware<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(State or
        other jurisdiction of incorporation)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b> </font>
      </center>
    </td>
    <td height=28 width="32%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>001-13810<br>
        </b></font><font face="Times New Roman, Times, serif" size=2>(Commission
        File Number)</font><font face="Times New Roman, Times, serif" size=3><b>
        </b></font>
      </center>
    </td>
    <td height=28 width="34%">
      <center>
        <font face="Times New Roman, Times, serif" size=3><b>94-3155066</b><br>
        </font><font face="Times New Roman, Times, serif" size=2>(IRS Employer
        Identification No.)</font><font face="Times New Roman, Times, serif" size=3>
        </font>
      </center>
    </td>
  </tr>
</table>
<font face="Times New Roman, Times, serif" size="3"><br>
</font>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>39700 Eureka
  Drive <br>
  Newark, CA 94560</b><br>
  (Address of principal executive offices, including zip code) </font></p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>(510) 933-3000<br>
  </b></font> <font face="Times New Roman, Times, serif" size="3">(Registrant's
  telephone number, including area code)</font>
<div align="center">
  <p>&nbsp;</p>
  <p align="left"><font face="Times New Roman, Times, serif" size="3">Check the
    appropriate box below if the Form 8-K filing is intended to simultaneously
    satisfy the filing obligation of the registrant under any of the following
    provisions (see General Instruction A.2. below):</font></p>
  <p align="left"><font face="Times New Roman, Times, serif" size="3">[ ] Written
    communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
  <p align="left"><font face="Times New Roman, Times, serif" size="3">[ ] Soliciting
    material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
  <p align="left"><font face="Times New Roman, Times, serif" size="3">[ ] Pre-commencement
    communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
  <p align="left"><font face="Times New Roman, Times, serif" size="3">[ ] Pre-commencement
    communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
    <br>
    </font></p>
</div>
<p style="PAGE-BREAK-BEFORE: always"> </p>
<div align=left></div>
<div align=left>
  <hr width="100%">
</div>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size="3"><b>Item 1.01 Entry Into
  a Material Definitive Agreement</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif" size="3">On May 18, 2009, the Company
  entered into a Securities Purchase Agreement with certain accredited investors,
  as defined in Rule 501 of Regulation D under the Securities Act of 1933 (the
  "<b>Non-Management Purchasers</b>"), and certain officers and directors of the
  Company (collectively, the "<b>Private Placement</b>"). The aggregate amount
  to be raised in the Private Placement is approximately $1,052,215. The proceeds
  will be used to increase the Company's working capital balances. Net proceeds
  from the financing after estimated costs and expenses of the placement agent
  are expected to be approximately $999,604. The closing is expected to take place
  on or about May 22, 2009.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">Charlie Bass, Chairman
  of the Board of the Company, and Kevin Mills, President and CEO of the Company,
  will participate in the Private Placement. The purchase price for the shares
  to be sold to Messrs. Bass and Mills is $2.00 per share, the closing bid price
  of the common stock on the Nasdaq Capital Market one day prior to the execution
  of the Securities Purchase Agreement. Mr. Bass will invest $100,000 for the
  purchase of 50,000 shares of common stock, and Mr. Mills will invest $400,000
  for the purchase of 200,000 shares of common stock.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">The Company will also issue
  306,786 shares of common stock to the Non-Management Purchasers at $1.80 per
  share, 90 percent of the closing bid price of the common stock on the Nasdaq
  Capital Market one day prior to the execution of the Securities Purchase Agreement.
  The Non-Management Purchasers will also receive warrants to purchase an additional
  61,356 shares of common stock at $1.80 per share. These warrants will expire
  five years from the closing date of the Private Placement.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"> Security Research Associates,
  an investment banking firm located in the San Francisco Bay Area in California,
  is the placement agent for the transaction. The placement agent will earn fees
  of approximately $52,611, equal to 5% of the proceeds, and receive a warrant
  to purchase 27,839 shares of common stock at $1.80 per share. This warrant will
  expire five years from the closing date of the Private Placement.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"> The aggregate number of
  shares of common stock to be issued and reserved for the exercise of warrants
  issued in or in connection with the Private Placement is 645,981.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">In connection with the
  Private Placement, the Company has entered into a Registration Rights Agreement
  with the investors. Under the Registration Rights Agreement, the Company will
  file a registration statement with the Securities Exchange Commission for the
  resale of the shares of common stock to be issued in the Private Placement,
  including those shares to be reserved for issuance upon exercise of the warrants,
  will use reasonable commercial efforts to cause such registration statement
  to become effective within 90 days after the closing date, and will keep such
  registration statement effective until the earlier of: (i) the 5 year anniversary
  of the closing date, (ii) the statement is no longer required to enable the
  sale of the shares under Rule 144 promulgated under the Securities Act of 1933,
  as amended (the &quot;<b>Securities Act</b>&quot;) or (iii) all shares of common
  stock issued to the Non-Management Purchasers have been sold by such purchasers.
  In the event the registration statement is not declared effective by the Securities
  and Exchange Commission within 90 days after the closing date, the warrant exercise
  price will be reduced by 2% and an additional 2% for each month thereafter up
  to a maximum aggregate reduction of 6%.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">The foregoing description
  of the Private Placement does not purport to be complete and is qualified in
  its entirety by reference to the full text of the Securities Purchase Agreement,
  Registration Rights Agreement, the form of Warrant to the Non-Management Purchasers
  and the form of Warrant to the placement agent, copies of which are attached
  hereto as Exhibits 10.13, 10.14, 10.15 and 10.16 respectively, and incorporated
  herein by reference. The press release announcing the Private Placement is attached
  hereto as Exhibit 99.1 and incorporated herein by reference.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>Item 3.02 Unregistered
  Sales of Equity Securities</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"> The information set forth
  in Item 1.01 of this Current Report on Form 8-K that relates to the unregistered
  sale of equity securities is incorporated by reference into this Item 3.02.</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr width="100%">
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size="3">The sale of securities
  in the Private Placement will not be registered under the Securities Act. These
  securities will be sold to accredited investors in reliance upon exemptions
  from registration under Section 4(2) of the Securities Act and Rule 506 of Regulation
  D promulgated thereunder. These securities may not be offered or sold in the
  United States absent registration under, or an exemption from, the Securities
  Act and any applicable state securities laws.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><br>
  <b>Item 9.01 Financial Statements and Exhibits</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>(d) Exhibits.</b></font></p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="380" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border"><font face="Times New Roman, Times, serif"><b>Exhibit
          No.</b></font></div>
      </div>
    </td>
    <td width=13 height=54>&nbsp;</td>
    <td align="left" height="54" width="1243" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="left"><font face="Times New Roman, Times, serif"><b>Description</b></font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">&nbsp;</td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.13</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Securities Purchase Agreement dated as of May 18,
      2009 among Socket Mobile, Inc., the Non-Management Purchases listed on Exhibit
      A and the Management Purchasers listed on Exhibit A.</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.14</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Registration Rights Agreement dated as of May 18,
      2009 by and among Socket Mobile, Inc. and the Purchasers listed on Exhibit
      A.</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.15</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Form of Warrant for the Purchase of Shares of Common
      Stock to be issued to the Non-Management Purchasers.</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.16</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Form of Warrant for the Purchase of Shares of Common
      Stock to be issued to Security Research Associates, Inc. </td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Socket Mobile, Inc. Press Release, dated May 20,
      2009.</td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p style="PAGE-BREAK-BEFORE: always">
<p style="PAGE-BREAK-BEFORE: always">
<p>&nbsp;</p>
<hr width="100%">
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<hr width="100%">
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b>SIGNATURES</b><br>
  </font></p>
<p><font face="Times New Roman, Times, serif" size="3">Pursuant to the requirements
  of the Securities Exchange Act of 1934, the registrant has duly caused this
  report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>
<p>&nbsp;</p>
<dir>
  <dir>
    <dir>
      <dir>
        <dir>
          <blockquote>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <tr>
              <td>&nbsp;</td>
              <td>&nbsp;</td>
            </tr>
            <p align=left> </p>
            <tr valign="bottom"
align="left"></tr>
          </blockquote>
        </dir>
      </dir>
    </dir>
  </dir>
</dir>
<div align=left>
  <table height=135 cellspacing=0 cellpadding=0 width=96% align=left border=0>
    <tr>
      <td width=300>&nbsp;</td>
      <td width=21>&nbsp;</td>
      <td colspan="2"><font face="Times New Roman, Times, serif"><b>SOCKET MOBILE,
        INC.</b></font></td>
    </tr>
    <tr>
      <td width=300>&nbsp;</td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300>
        <div align=left></div>
      </td>
      <td width=21>&nbsp;</td>
      <td colspan="2">&nbsp;</td>
    </tr>
    <tr>
      <td width=300 height=19>
        <div align=left><font face="Times New Roman, Times, serif">Date: May 19,
          2009</font></div>
      </td>
      <td width=21 height=19>&nbsp;</td>
      <td width=30 height=19><font face="Times New Roman, Times, serif">By: <u>/s/
        </u></font></td>
      <td width=379 height=19><font face="Times New Roman, Times, serif"><u>David
        W. Dunlap</u></font></td>
    </tr>
    <tr>
      <td width=300 height=40>
        <div align=left></div>
      </td>
      <td width=21 height=40>&nbsp;</td>
      <td width=30 height=40>
        <blockquote>
          <div align="left"></div>
        </blockquote>
      </td>
      <td width=379 height=40><font face="Times New Roman, Times, serif">Name:
        David W. Dunlap<br>
        Vice President, Finance and Administration <br>
        and Chief Financial Officer</font></td>
    </tr>
  </table>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align=center>&nbsp;</p>
<p align=center><font face="Times New Roman, Times, serif" size="3"><b>EXHIBIT
  INDEX</b></font></p>
<p align=center>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td align="left" height="54" width="380" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div align="center" class="border"><font face="Times New Roman, Times, serif"><b>Exhibit
          No.</b></font></div>
      </div>
    </td>
    <td width=13 height=54>&nbsp;</td>
    <td align="left" height="54" width="1243" style="border-bottom: 1px solid #000000" class="border">
      <div style="margin-left: 10px; text-indent: -10px">
        <div class="border">
          <div align="left"><font face="Times New Roman, Times, serif"><b>Description</b></font></div>
        </div>
      </div>
    </td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">&nbsp;</td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.13</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Securities Purchase Agreement dated as of May 18,
      2009 among Socket Mobile, Inc., the Non-Management Purchases listed on Exhibit
      A and the Management Purchasers listed on Exhibit A.</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.14</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Registration Rights Agreement dated as of May 18,
      2009 by and among Socket Mobile, Inc. and the Purchasers listed on Exhibit
      A.</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.15</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Form of Warrant for the Purchase of Shares of Common
      Stock to be issued to the Non-Management Purchasers.</td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">10.16</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Form of Warrant for the Purchase of Shares of Common
      Stock to be issued to Security Research Associates, Inc. </td>
  </tr>
  <tr valign=top>
    <td width=380 height="22">
      <div align=center><font face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=13 height="22">&nbsp;</td>
    <td width=1243 height="22">Socket Mobile, Inc. Press Release, dated May 20,
      2009.</td>
  </tr>
</table>
<p>&nbsp;</p>
<p align=center>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>ex1013.htm
<DESCRIPTION>EXHIBIT 10.13
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<div class=Section1>
  <p class=MsoNormal style="TEXT-ALIGN: right" align=right><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
    10.13</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">SECURITIES
    PURCHASE&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">AGREEMENT&nbsp;</b></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">Dated
    as of May 18, 2009&nbsp;</b></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">among&nbsp;</b></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">SOCKET
    MOBILE, INC.&nbsp;</b></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">THE
    NON-MANAGEMENT PURCHASERS LISTED ON EXHIBIT A&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">and&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">THE
    MANAGEMENT PURCHASERS LISTED ON EXHIBIT A</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal"></b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal"></b></font></p>
  <hr>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal"></b>
    </font></p>
</div>
<div class=Section2>
  <table width="879" border="0" cellspacing="0" cellpadding="0" align="center">
    <tr>
      <td colspan="3">
        <div align="center"></div>
        <p align=center><font face="Times New Roman, Times, serif" size="3"><strong>TABLE
          OF CONTENTS</strong></font></p>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">&nbsp;</td>
      <td width="56">
        <div align="center"><font face="Times New Roman, Times, serif" size="3"><u>PAGE
          <br>
          NO.</u></font></div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">ARTICLE I </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">Purchase
        and Sale of Common Stock and Warrants</font></td>
      <td>
        <div align="center">1</div>
      </td>
    </tr>
    <tr>
      <td colspan="3">&nbsp;</td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 1.1 Purchase and Sale of Common Stock and Warrants</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">1</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 1.2 Purchase Price and Closing</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">1</font></div>
      </td>
    </tr>
    <tr>
      <td width="27" height="10">&nbsp;</td>
      <td width="807" height="10">Section 1.3 Delivery</td>
      <td width="56" height="10" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif"> 2</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 1.4 Warrant Shares</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">2</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">&nbsp;</td>
      <td width="56" align="center" valign="bottom">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">ARTICLE II </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">Representations
        and Warranties</font></td>
      <td>
        <div align="center">2</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 2.1 Representations and Warranties of the Company</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">2</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 2.2 Representations and Warranties of the Purchasers</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">5</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">ARTICLE III </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">Covenants</font></td>
      <td>
        <div align="center">8</div>
      </td>
    </tr>
    <tr>
      <td colspan="3">&nbsp;</td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 3.1 Reservation of Shares</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">8</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 3.2 Listing</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">8</div>
      </td>
    </tr>
    <tr>
      <td width="27" height="10">&nbsp;</td>
      <td width="807" height="10">Section 3.3 Disclosure of Transactions and Other
        Material Information</td>
      <td width="56" height="10" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif"> 8</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 3.4 Delivery of Share Certificates</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">8</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">ARTICLE IV </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">Conditions</font></td>
      <td>
        <div align="center">8</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 4.1 Conditions Precedent to the Obligation of the
        Company to Close and to Sell the Shares and Warrants</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">8</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 4.2 Conditions Precedent to the Obligation of the
        Purchasers to Close and to Purchase the Shares and Warrants</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">9</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">ARTICLE V </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">Certificate
        Legend</font></td>
      <td>
        <div align="center">11</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 5.1 Legend</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">11</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">ARTICLE VI </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">Termination</font></td>
      <td>
        <div align="center">12</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 6.1 Termination by Mutual Consent</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">12</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 6.2 Effect of Termination</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">12</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">ARTICLE VII </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">Miscellaneous</font></td>
      <td>
        <div align="center">12</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.1 Fees and Expenses</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">12</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.2 Specific Enforcement; Consent to Jurisdiction</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">12</font></div>
      </td>
    </tr>
    <tr>
      <td width="27" height="10">&nbsp;</td>
      <td width="807" height="10">Section 7.3 Entire Agreement; Amendment</td>
      <td width="56" height="10" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif"> 13</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.4 Notices</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">13</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.5 Waivers</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">14</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.6 Headings</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">14</font></div>
      </td>
    </tr>
    <tr>
      <td width="27" height="10">&nbsp;</td>
      <td width="807" height="10">Section 7.7 Successors and Assigns</td>
      <td width="56" height="10" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif"> 14</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.8 No Third Party Beneficiaries</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">14</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.9 Governing Law</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">14</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.10 Survival</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">15</font></div>
      </td>
    </tr>
    <tr>
      <td width="27" height="10">&nbsp;</td>
      <td width="807" height="10">Section 7.11 Counterparts</td>
      <td width="56" height="10" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif"> 15</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.12 Publicity</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">15</div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.13 California Corporate Securities Law</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">15</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.14 Severability</td>
      <td width="56" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif">15</font></div>
      </td>
    </tr>
    <tr>
      <td width="27" height="10">&nbsp;</td>
      <td width="807" height="10">Section 7.15 Further Assurances</td>
      <td width="56" height="10" align="center" valign="bottom">
        <div align="center"><font face="Times New Roman, Times, serif"> 15</font></div>
      </td>
    </tr>
    <tr>
      <td width="27">&nbsp;</td>
      <td width="807">Section 7.16 Independent Nature of Purchasers' Obligations
        and Rights</td>
      <td width="56" align="center" valign="bottom">
        <div align="center">15</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">EXHIBIT A </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">LIST
        OF PURCHASERS</font></td>
      <td>
        <div align="center">A-1</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">EXHIBIT B </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">FORM
        OF WARRANT</font></td>
      <td>
        <div align="center">B-1</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font face="Times New Roman, Times, serif">EXHIBIT C </font><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">FORM
        OF REGISTRATION RIGHTS AGREEMENT</font></td>
      <td>
        <div align="center">C-1</div>
      </td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td width="56">&nbsp;</td>
    </tr>
  </table>
  <p class=MsoToc1>&nbsp; </p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <hr>
</div>
<font face="Times New Roman, Times, serif" size="3"><br
style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break"
clear=all>
 </font>
<div class=Section3>
  <p class=MsoNormal style="TEXT-ALIGN: center; mso-outline-level: 1"
align=center><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal">SECURITIES
    PURCHASE AGREEMENT</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyTextFirstIndent>This SECURITIES PURCHASE AGREEMENT this (&quot;<u>Agreement</u>&quot;),
    dated as of May 18, 2009, is made by and among Socket Mobile, Inc., a Delaware
    corporation (the &quot;<u>Company</u>&quot;), the entities listed on <u>Exhibit A</u>
    hereto as Non-Management Purchasers (each, a &quot;<u>Non-Management Purchaser</u>&quot;
    and collectively, the &quot;<u>Non-Management Purchasers</u>&quot;), and the entities
    and individuals listed on <u>Exhibit A</u> hereto as Management Purchasers
    (each, a &quot;<u>Management Purchaser</u>&quot; and collectively, the &quot;<u>Management
    Purchasers</u>&quot;, and together with the Non-Management Purchasers, the &quot;<u>Purchasers</u>&quot;),
    for the purchase and sale by the Purchasers of shares of the Company's Common
    Stock, par value $0.001 per share (the &quot;<u>Common Stock</u>&quot;), and warrants
    to purchase shares of the Common Stock.</p>
  <p class=MsoBodyTextFirstIndent style="MARGIN-BOTTOM: 0pt"><font face="Times New Roman, Times, serif" size="3">The
    parties hereto agree as follows:</font></p>
  <h1 style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in" align="center"><font face="Times New Roman, Times, serif" size="3">ARTICLE I<br>
    <br>
    Purchase and Sale of Common Stock and Warrant</font></h1>
</div>
<div class=Section3>
  <div align="left"><font face="Times New Roman, Times, serif" size="3"><br>
    Section 1.1 Purchase and Sale of Common Stock and Warrants<br>
    <br>
    (a) <u>Non-Management Purchasers</u>. Upon the following terms and conditions,
    the Company shall issue and sell to the Non-Management Purchasers, and each
    Non-Management Purchaser shall, severally but not jointly, purchase from the
    Company that number of shares of Common Stock (the &quot;<u>Shares</u>&quot;) and related
    warrants to purchase that number of shares of Common Stock equal to twenty
    percent (20%) of the number of Shares to be purchased by such Non-Management
    Purchaser, in substantially the form attached hereto as <u>Exhibit B</u> (the
    &quot;<u>Warrants</u>&quot;), at a price per Share (including related Warrants) equal
    to $1.80, in each case as set forth opposite such Non-Management Purchaser's
    name on <u>Exhibit A</u> hereto. </font></div>
</div>
<div class=Section3>
  <div align="left"><font face="Times New Roman, Times, serif" size="3"><br>
    (b) <u>Management Purchasers</u>. Upon the same terms and conditions, the
    Company shall issue and sell to the Management Purchasers, and each Management
    Purchaser shall, severally but not jointly, purchase from the Company that
    number of shares of Common Stock (the &quot;<u>Shares</u>&quot;) at a price per Share
    equal to $2.00, in each case as set forth opposite such Management Purchaser's
    name on <u>Exhibit A</u> hereto. </font></div>
</div>
<div class=Section3>
  <div align="left"><font face="Times New Roman, Times, serif" size="3"><br>
    (c) <u>Securities</u>. The Company and the Purchasers are executing and delivering
    this Agreement in accordance with and in reliance upon the exemption from
    securities registration afforded by Section 4(2) of the U.S. Securities Act
    of 1933, as amended, and the rules and regulations promulgated thereunder
    (the &quot;<u>Securities Act</u>&quot;), including Regulation D (&quot;<u>Regulation D</u>&quot;),
    and/or upon such other exemption from the registration requirements of the
    Securities Act as may be available with respect to any or all of the investments
    to be made hereunder. The aggregate number of Shares issued hereunder shall
    not exceed six hundred forty-five thousand nine hundred eighty-three (645,983).
    </font></div>
</div>
<div class=Section3>
  <div align="left"><font face="Times New Roman, Times, serif" size="3"><br>
    Section 1.2 <u>Purchase Price and Closing</u>. The Company agrees to issue
    and sell to the Purchasers and, in consideration of and in express reliance
    upon the representations, warranties, covenants, terms and conditions of this
    Agreement, the Purchasers, severally but not jointly, agree to purchase the
    number of Shares and, with respect to the Non-Management Purchasers, the Warrants
    set forth opposite their respective names on Exhibit A. The closing of the
    purchase and sale of the Shares and Warrants to be acquired from the Company
    under this Agreement (the &quot;Closing&quot;) shall take place at the offices of the
    Company located at 39700 Eureka Drive, Newark, California 94560 at 10:00 a.m.,
    Pacific Time (i) on or before May 31, 2009, provided, that all of the conditions
    set forth in Article IV hereof and applicable to the Closing shall have been
    fulfilled or waived in accordance herewith, or (ii) at such other time and
    place or on such date as the Purchasers and the Company may agree upon (the
    &quot;Closing Date&quot;). The entire Purchase Price shall be paid by the Purchasers
    in cash, by wire transfer or in readily available funds. </font></div>
</div>
<div class=Section3>
  <div align="center"></div>
  <p>&nbsp;</p>
  <hr>
  <p>&nbsp;</p>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3">Section
  1.3 <u>Delivery</u>. At the Closing, the Company shall issue to each Purchaser
  (a) certificate(s) representing the Shares in such number as is set forth opposite
  such Purchaser's name on <u>Exhibit A</u> hereto, and (b) with respect to the
  Non-Management Purchasers, such number of Warrants to purchase shares of Common
  Stock as is set forth opposite such Purchaser's name on <u>Exhibit A</u> hereto.
  The Warrants shall be exercisable for five (5) years from the Closing Date and
  shall have an exercise price of $1.80 per Share (the &quot;<u>Exercise Price</u>&quot;).<br>
  <br>
  Section 1.4 <u>Warrant Shares</u>. The Company has authorized and has reserved
  and covenants to continue to reserve, free of preemptive rights and other similar
  contractual rights of stockholders, a number of its authorized but unissued
  shares of Common Stock equal to the aggregate number of shares of Common Stock
  necessary to effect the exercise of the Warrants. Any shares of Common Stock
  issuable upon exercise of the Warrants (and such shares when issued) are herein
  referred to as the &quot;Warrant Shares&quot;. The Shares, the Warrants and
  the Warrant Shares are sometimes collectively referred to herein as the &quot;<u>Securities</u>&quot;.<br>
  </font></div>
<blockquote>
  <div class=Section3>
    <p>&nbsp; </p>
    <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>ARTICLE
      II</b></font></p>
  </div>
</blockquote>
<div class=Section3>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Representations
    and Warranties </b></font></p>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 2.1 <u>Representations and Warranties of the Company</u>. In order to
  induce the Purchasers to enter into this Agreement and to purchase the Shares
  and the Warrants, the Company hereby makes the following representations and
  warranties to the Purchasers: <br>
  <br>
  (a) <u>Organization, Good Standing and Power</u>. The Company is a corporation
  duly incorporated, validly existing and in good standing under the laws of the
  State of Delaware and has the requisite corporate power to own, lease and operate
  its properties and assets and to conduct its business as it is now being conducted.
  The Company does not have any subsidiaries or own securities of any kind in
  any other entity. The Company is duly qualified as a foreign corporation to
  do business and is in good standing in every jurisdiction in which the nature
  of the business conducted or property owned by it makes such qualification necessary,
  except for any jurisdiction(s) (alone or in the aggregate) in which the failure
  to be so qualified will not have a Material Adverse Effect. For the purposes
  of this Agreement, &quot;<u>Material Adverse Effect</u>&quot; means any adverse
  effect on the business, operations, properties or financial condition of the
  Company which is material to the Company taken as a whole.</font></div>
<blockquote>
  <div class=Section3>
    <p>&nbsp;</p>
  </div>
</blockquote>
<div class=Section3>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">2</font></p>
  <hr>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  (b) <u>Authorization; Enforcement</u>. The Company has the requisite corporate
  power and authority to enter into and perform this Agreement, the Registration
  Rights Agreement (in substantially the form attached hereto as <u>Exhibit C</u>,
  the &quot;<u>Registration Rights Agreement</u>&quot;), the Warrants, and the
  other agreements and documents contemplated hereby and thereby and executed
  by the Company or to which the Company is party (collectively, the &quot;<u>Transaction
  Documents</u>&quot;), and to issue and sell the Shares and the Warrants in accordance
  with the terms hereof. The execution, delivery and performance of the Transaction
  Documents by the Company and the consummation by it of the transactions contemplated
  thereby have been duly and validly authorized by all necessary corporate action,
  and no further consent or authorization of the Company, its Board of Directors
  or its stockholders is required. This Agreement has been duly executed and delivered
  by the Company. The other Transaction Documents will have been duly executed
  and delivered by the Company at the Closing. Each of the Transaction Documents
  constitutes, or shall constitute when executed and delivered, a valid and binding
  obligation of the Company enforceable against the Company in accordance with
  its terms, except (i) to the extent that the indemnification provisions contained
  in the Registration Rights Agreement may be limited by applicable law and principles
  of public policy, (ii) as limited by applicable bankruptcy, insolvency, reorganization,
  moratorium and other laws of general application affecting enforcement of creditors'
  rights generally, and (iii) as limited by laws relating to the availability
  of specific performance, injunctive relief or other equitable remedies or by
  general principles of equity. <br>
  <br>
  (c) <u>Capitalization</u>. The authorized capital stock of the Company as of
  the date of this Agreement consists of 10,000,000 shares of Common Stock, $0.001
  par value, of which 3,229,916 shares are issued and outstanding and 3,000,000
  shares of Preferred Stock, $0.001 par value, none of which are issued and outstanding.
  All of the outstanding shares of the Company's Common Stock and any other security
  of the Company have been duly and validly authorized. No shares of Common Stock
  or any other security of the Company are entitled to preemptive rights. Except
  (i) options to purchase 1,266,887 shares of the Company's Common Stock issued
  pursuant to the Company's stock option plans and outstanding as of the date
  of this Agreement, (ii) an additional 65,182 shares of Common Stock reserved
  for issuance pursuant to the Company's stock option plans, and (iii) as set
  forth in the Transaction Documents, there are no outstanding options, warrants,
  scrip, rights to subscribe to, call or commitments of any character whatsoever
  relating to, or securities or rights convertible into, any shares of capital
  stock of the Company, and there are no contracts, commitments, understandings,
  or arrangements by which the Company is or may become bound to issue additional
  shares of the capital stock of the Company or options, securities or rights
  convertible into shares of capital stock of the Company. Except as set forth
  in the Transaction Documents, the Company is not a party to or bound by any
  agreement or understanding granting registration or anti-dilution rights to
  any person with respect to any of its equity or debt securities. The Company
  has furnished or made available to the Purchasers true and correct copies of
  the Company's Certificate of Incorporation as in effect on the date hereof (the
  &quot;<u>Certificate</u>&quot;) and the Company's Bylaws as in effect on the
  date hereof (the &quot;<u>Bylaws</u>&quot;).<br>
  <br>
  (d) <u>Issuance of Securities</u>. The Shares and the Warrants to be issued
  at the Closing have been duly authorized by all necessary corporate action and,
  when paid for or issued in accordance with the terms hereof, the Shares shall
  be validly issued and outstanding, fully paid and nonassessable and free and
  clear of all liens, encumbrances and rights of refusal of any kind (other than
  those arising from the actions or inactions of the Purchasers themselves), and
  the holders shall be entitled to all rights accorded to a holder of Common Stock;
  <u>provided</u>, <u>however</u>, that the Shares and the Warrants may be subject
  to restriction or transfer under state and federal securities laws. When the
  Warrant Shares are issued and paid for in accordance with the terms of this
  Agreement and as set forth in the Warrants, such shares will be duly authorized
  by all necessary corporate action and validly issued and outstanding, fully
  paid and nonassessable, free and clear of all liens, encumbrances and rights
  of refusal of any kind (other than those arising from the actions or inactions
  of the Purchasers themselves) and the holders shall be entitled to all rights
  accorded to a holder of Common Stock; <u>provided</u>, <u>however</u>, that
  the Warrant Shares may be subject to restriction or transfer under state and
  federal securities laws.</font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">3</font></p>
  <hr>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  (e) <u>No Conflicts</u>. The execution, delivery and performance of the Transaction
  Documents by the Company and the consummation by the Company of the transactions
  contemplated hereby and thereby do not and will not (i) violate any provision
  of the Certificate or Bylaws, (ii) conflict with, or constitute a default (or
  an event which with notice or lapse of time or both would become a default)
  under, or give to others any rights of termination, amendment, acceleration
  or cancellation of, any agreement, mortgage, deed of trust, indenture, note,
  bond, license, lease agreement, instrument or obligation to which the Company
  is a party or by which the Company's properties or assets are bound, (iii) create
  or impose a lien, mortgage, security interest, charge or encumbrance of any
  nature on any property or asset of the Company under any agreement or any commitment
  to which the Company is a party or by which the Company is bound or by which
  any of its properties or assets are bound, or (iv) result in a violation of
  any federal, state, local or foreign statute, rule, regulation, order, judgment
  or decree (including federal and state securities laws and regulations) applicable
  to the Company or by which any property or asset of the Company is bound or
  affected, except, in all cases other than violations pursuant to clause (i)
  above, for such conflicts, defaults, terminations, amendments, acceleration,
  cancellations and violations as would not, individually or in the aggregate,
  have a Material Adverse Effect.<br>
  <br>
  (f) <u>Commission Documents; Financial Statements</u>. The Common Stock is registered
  pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as
  amended (the &quot;<u>Exchange Act</u>&quot;), and the Company has timely filed
  all material reports, schedules, forms, statements and other documents required
  to be filed by it with the Securities and Exchange Commission (the &quot;<u>Commission</u>&quot;)
  pursuant to the reporting requirements of the Exchange Act, including material
  filed pursuant to Section 13(a) or 15(d) of the Exchange Act (all of the foregoing,
  including filings incorporated by reference therein, being referred to herein
  as the &quot;<u>Commission Documents</u>&quot;). The Company has not provided
  to the Purchasers any material non-public information or other information which,
  according to applicable federal securities law, rule or regulation, should have
  been disclosed publicly by the Company but which has not been so disclosed,
  other than with respect to the transactions contemplated by this Agreement.
  At the time of its filing, the Company's Quarterly Report on Form 10-Q for the
  fiscal quarter ended March 31, 2009 (the &quot;<u>Form 10-Q</u>&quot;) complied
  in all material respects with the requirements of the Exchange Act and the rules
  and regulations of the Commission promulgated thereunder, and the Form 10-Q
  did not contain any untrue statement of a material fact or omitted to state
  a material fact required to be stated therein or necessary in order to make
  the statements therein, in light of the circumstances under which they were
  made, not misleading. At the time of its filing, the Company's Annual Report
  on Form 10-K for the fiscal year ended December 31, 2008 (the &quot;<u>Form
  10-K</u>&quot;) complied in all material respects with the requirements of the
  Exchange Act and the rules and regulations of the Commission promulgated thereunder,
  and, at the time of its filing, the Form 10-K did not contain any untrue statement
  of a material fact or omitted to state a material fact required to be stated
  therein or necessary in order to make the statements therein, in light of the
  circumstances under which they were made, not misleading. As of their respective
  dates, the financial statements of the Company included in the Form 10-Q and
  Form 10-K complied as to form in all material respects with applicable accounting
  requirements and the published rules and regulations of the Commission or other
  applicable rules and regulations with respect thereto. Such financial statements
  have been prepared in accordance with generally accepted accounting principles
  (&quot;<u>GAAP</u>&quot;) applied on a consistent basis during the periods involved
  (except (i) as may be otherwise indicated in such financial statements or the
  notes thereto or (ii) in the case of unaudited interim statements, to the extent
  they may not include footnotes or may be condensed or summary statements), and
  fairly present in all material respects the financial position of the Company
  as of the dates thereof and the results of operations and cash flows for the
  periods then ended (subject, in the case of unaudited statements, to normal
  year-end audit adjustments).</font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">4</font></p>
  <hr>
  <p>&nbsp;</p>
</div>
<div class=Section3></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3">(g) <u>No
  Undisclosed Events or Circumstances</u>. Since March 31, 2009, except as set
  forth in the Commission Documents, no event or circumstance has occurred or
  exists with respect to the Company or its businesses, properties, operations
  or financial condition, which, under applicable federal securities law, rule
  or regulation, requires public disclosure or announcement by the Company but
  which has not been publicly so announced or disclosed.<br>
  <br>
  (h) <u>Securities Act of 1933</u>. The Company has complied and will comply
  with all applicable federal and state securities laws in connection with the
  offer, issuance and sale of the Shares, the Warrants and the Warrant Shares
  hereunder. Neither the Company nor anyone acting on its behalf, directly or
  indirectly, has or will sell, offer to sell or solicit offers to buy any of
  the Securities, or similar securities to, or solicit offers with respect thereto
  from, or enter into any preliminary conversations or negotiations relating thereto
  with, any person, or has taken or will take any action such that the issuance
  and sale of any of the Securities are not exempt from the registration provisions
  of the Securities Act and applicable state securities laws. Neither the Company
  nor any of its affiliates, nor any person acting on its or their behalf, has
  engaged in any form of general solicitation or general advertising (within the
  meaning of Regulation D under the Securities Act) in connection with the offer
  or sale of any of the Securities.<br>
  <br>
  (i) <u>Governmental Approvals</u>. Except for the filing of any notice prior
  or subsequent to the Closing that may be required under applicable state and/or
  federal securities laws (which if required, shall be filed on a timely basis),
  no authorization, consent, approval, license, exemption of, filing or registration
  with any court or governmental department, commission, board, bureau, agency
  or instrumentality located in the United States is or will be necessary for,
  or in connection with, the issuance or delivery of the Shares and the Warrants,
  or for the performance by the Company of its obligations under the Transaction
  Documents.<br>
  <br>
  Section 2.2 <u>Representations and Warranties of the Purchasers</u>. Each of
  the Purchasers hereby makes the following representations and warranties to
  the Company with respect solely to itself and not with respect to any other
  Purchaser:<br>
  <br>
  (a) <u>Organization and Standing of the Purchasers</u>. If such Purchaser is
  an entity, such Purchaser is a corporation, limited liability company or partnership
  duly incorporated or organized, validly existing and in good standing under
  the laws of the jurisdiction of its incorporation or organization.</font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">5</font></p>
  <hr>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  (b) <u>Authorization and Power</u>. Such Purchaser has all requisite power and
  authority to execute and deliver the Transaction Documents, to purchase the
  Shares and, if applicable, the Warrants being sold to it hereunder, and to carry
  out and perform its obligations under the terms of the Transaction Documents.
  All action on the part of such Purchaser necessary for the authorization, execution,
  delivery and performance of the Transaction Documents, and the performance of
  all such Purchaser's obligations under the Transaction Documents, has been taken
  or will be taken prior to the Closing. The Transaction Documents constitute,
  or shall constitute when executed and delivered, valid and legally binding obligations
  of such Purchaser enforceable against such Purchaser in accordance with their
  terms, except: (i) to the extent that the indemnification provisions contained
  in the Registration Rights Agreement may be limited by applicable law and principles
  of public policy, (ii) as limited by applicable bankruptcy, insolvency, reorganization,
  moratorium and other laws of general application affecting enforcement of creditors'
  rights generally, and (iii) as limited by laws relating to the availability
  of specific performance, injunctive relief or other equitable remedies or by
  general principles of equity. No consent, approval, authorization, order, filing,
  registration or qualification of or with any court, governmental authority or
  third person is required to be obtained by such Purchaser in connection with
  the execution and delivery of the Transaction Documents by such Purchaser or
  the performance of such Purchaser's obligations hereunder or thereunder. <br>
  <br>
  (c) <u>Acquisition for Investment</u>. Such Purchaser is purchasing the Shares
  and, if applicable, acquiring the Warrants solely for its own account, not as
  a nominee or agent, and for the purpose of investment and not with a view to
  or for resale in connection with the distribution thereof. Such Purchaser does
  not have a present intention to sell any of the Securities, nor a present arrangement
  (whether or not legally binding) or intention to effect any distribution of
  any of the Securities to or through any person or entity. Such Purchaser acknowledges
  that it (i) has such knowledge and experience in financial and business matters
  such that such Purchaser is capable of evaluating the merits and risks of its
  investment in the Company and (ii) is able to bear the financial risks associated
  with an investment in the Company.<br>
  <br>
  (d) <u>Rule 144</u>. Such Purchaser understands that the Securities must be
  held indefinitely unless such Securities are registered under the Securities
  Act or an exemption from registration is available. Such Purchaser acknowledges
  that it is familiar with the provisions of Rule 144 promulgated pursuant to
  the Securities Act (&quot;<u>Rule 144</u>&quot;), which permit resale of shares
  purchased in a private placement subject to the satisfaction of certain conditions,
  which may include, among other things, the availability of certain current public
  information about the Company; the resale occurring not less than a specified
  period after a party has purchased and paid for the security to be sold; the
  number of shares being sold during any three-month period not exceeding specified
  limitations; the sale being effected through a &quot;brokers' transaction,&quot;
  a transaction directly with a &quot;market maker&quot; or a &quot;riskless principal
  transaction&quot; (as those terms are defined in the Securities Act or the Securities
  Exchange Act of 1934, as amended, and the rules and regulations promulgated
  thereunder); and the filing of a Form 144 notice, if applicable, and that such
  Purchaser has been advised that Rule 144 permits resales only under certain
  circumstances. Such Purchaser understands that to the extent that Rule 144 is
  not available, such Purchaser will be unable to sell any Securities without
  either registration under the Securities Act or the existence of another exemption
  from such registration requirement. Such Purchaser understands that, although
  Rule 144 is not exclusive, the Commission has expressed its opinion that persons
  proposing to sell restricted securities received in a private offering, other
  than pursuant to Rule 144 will have a substantial burden of proof in establishing
  that an exemption from registration is available for such offers or sales, and
  that such persons and the brokers who participate in the transactions do so
  at their own risk. </font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">6</font></p>
  <hr>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  (e) <u>General</u>. Such Purchaser understands that the Securities are being
  offered and sold in reliance on a transactional exemption from the registration
  requirements of federal and state securities laws, and the Company is relying
  upon the truth and accuracy of the representations, warranties, agreements,
  acknowledgments and understandings of such Purchaser set forth herein in order
  to determine the applicability of such exemptions and the suitability of such
  Purchaser to acquire the Securities. Such Purchaser understands that no United
  States federal or state agency or any government or governmental agency has
  passed upon or made any recommendation or endorsement of the Securities.<br>
  <br>
  (f) <u>Opportunities for Additional Information</u>. Such Purchaser acknowledges
  that such Purchaser has had the opportunity to ask questions of and receive
  answers from, or obtain additional information from, the executive officers
  of the Company concerning the Transaction Documents, the exhibits and schedules
  attached hereto and thereto and the transactions contemplated by the Transaction
  Documents, as well as the business, management, financial and other affairs
  of the Company, and to the extent deemed necessary in light of such Purchaser's
  personal knowledge of the Company's affairs, such Purchaser has asked such questions
  and received answers to the full satisfaction of such Purchaser. Such Purchaser
  believes that it has received all the information such Purchaser considers necessary
  or appropriate for deciding whether to purchase the Securities. Such Purchaser
  also acknowledges that it is relying solely on its own advisors and not on any
  statements or representations of the Company or its agents for legal or tax
  advice with respect to this investment or the transactions contemplated by the
  Transaction Documents.<br>
  <br>
  (g) <u>No General Solicitation</u>. Such Purchaser acknowledges that the Securities
  were not offered to such Purchaser by means of any form of general or public
  solicitation or general advertising, or publicly disseminated advertisements
  or sales literature, including (i) any advertisement, article, notice or other
  communication published in any newspaper, magazine, or similar media, or broadcast
  over television or radio, or (ii) any seminar or meeting to which such Purchaser
  was invited by any of the foregoing means of communications.<br>
  <br>
  (h) <u>Accredited Investor</u>. Such Purchaser is an accredited investor (as
  defined in Rule 501 of Regulation D, promulgated by the Commission under the
  Securities Act), and such Purchaser has such experience in business and financial
  matters that it is capable of evaluating the merits and risks of an investment
  in the Securities. Such Purchaser acknowledges that an investment in the Securities
  is speculative and involves a high degree of risk. </font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">7</font></p>
  <hr>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
    <b>ARTICLE III</b></font></p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Covenants</b></font></p>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  The Company covenants with each Purchaser as follows:<br>
  <br>
  Section 3.1 <u>Reservation of Shares</u>. So long as the Warrants remain outstanding,
  the Company shall take all action necessary to at all times have authorized,
  and reserved for the purpose of issuance, the maximum number of shares of Common
  Stock issuable upon the exercise of the Warrants.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 3.2 <u>Listing</u>. The Company shall notify the NASDAQ Stock Market
  within the time periods required by the NASDAQ Stock Market, of the issuance
  of the Shares and Warrants. The Company shall use its commercially reasonable
  efforts to maintain the Common Stock's authorization for quotation on the NASDAQ
  Capital Market. The Company shall not take any action which would be reasonably
  expected to result in the delisting or suspension of the Common Stock on the
  NASDAQ Capital Market. The Company shall pay all fees and expenses in connection
  with satisfying its obligations under this <u>Section 3.2</u>.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 3.3 <u>Disclosure of Transactions and Other Material Information</u>.
  On or before 8:30 a.m., New York City time, on the second business day immediately
  following the date of this Agreement, the Company shall file a Current Report
  on Form 8-K with the Commission describing the terms of the transactions contemplated
  by the Transaction Documents and including as exhibits to such Current Report
  on Form 8-K this Agreement, the Warrants and the Registration Rights Agreement,
  and the schedules hereto and thereto in the form required by the Exchange Act
  (including all attachments, the &quot;<u>8-K Filing</u>&quot;). From and after
  the filing of the 8-K Filing with the Commission, no Purchaser shall be in possession
  of any material, nonpublic information received from the Company or any of its
  officers, directors, employees or authorized agents that is not disclosed in
  the 8-K Filing. The Company shall not, and shall cause each of its officers,
  directors, employees and authorized agents not to, provide any Purchaser with
  any material, nonpublic information regarding the Company from and after the
  filing of the 8-K Filing with the Company without the express written consent
  of such Purchaser. <br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 3.4 <u>Delivery of Share Certificates</u>. At Closing or as soon thereafter
  as reasonably possible (but in any event no later than two Business Days immediately
  following the Closing Date), the Company shall deliver to each Purchaser certificates
  representing the Shares (in such denominations as each Purchaser may request)
  acquired by such Purchaser at the Closing.</font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">8</font></p>
  <hr>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
    <b>ARTICLE IV</b></font></p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Conditions</b><br>
    <br>
    </font></p>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3">Section
  4.1 <u>Conditions Precedent to the Obligation of the Company to Close and to
  Sell the Shares and Warrants</u>. The obligation hereunder of the Company to
  close and issue and sell the Shares and Warrants, as applicable, to the Purchasers
  on the Closing Date is subject to the satisfaction or waiver, at or before the
  Closing, of each of the conditions set forth below. These conditions are for
  the Company's sole benefit and may be waived by the Company at any time in its
  sole discretion.<br>
  <br>
  (a) <u>Accuracy of the Purchasers' Representations and Warranties</u>. The representations
  and warranties of each Purchaser shall be true and correct in all material respects
  as of the date when made and as of the Closing Date as though made at that time,
  except for representations and warranties that are expressly made as of a particular
  date, which shall be true and correct in all material respects as of such date.<br>
  <br>
  (b) <u>Performance by the Purchasers</u>. Each Purchaser shall have performed,
  satisfied and complied in all material respects with all covenants, agreements
  and conditions required by this Agreement to be performed, satisfied or complied
  with by the Purchasers at or prior to the Closing Date.<br>
  <br>
  (c) <u>No Suspension, Etc</u>. Trading in the Common Stock shall not have been
  suspended by the Commission (except for any suspension of trading of limited
  duration agreed to by the Company, which suspension shall be terminated prior
  to the Closing), and, at any time prior to the Closing Date, trading in securities
  generally as reported by Bloomberg shall not have been suspended or limited,
  or minimum prices shall not have been established on securities whose trades
  are reported by Bloomberg, or quoted by NASDAQ, nor shall a banking moratorium
  have been declared either by the United States or California State authorities,
  nor shall there have occurred any national or international calamity or crisis
  of such magnitude in its effect on any financial market which, in each case,
  in the reasonable judgment of the Purchasers, makes it impracticable or inadvisable
  to purchase the Shares.<br>
  <br>
  (d) <u>No Injunction</u>. No statute, rule, regulation, executive order, decree,
  ruling or injunction shall have been enacted, entered, promulgated or endorsed
  by any court or governmental authority of competent jurisdiction which prohibits
  the consummation of any of the transactions contemplated by this Agreement.
  <br>
  <br>
  (e) <u>No Proceedings or Litigation</u>. No action, suit or proceeding before
  any arbitrator or any governmental authority shall have been commenced, and
  no investigation by any governmental authority shall have been threatened, against
  the Company or any of the officers, directors or affiliates of the Company,
  seeking to restrain, prevent or change the transactions contemplated by this
  Agreement, or seeking damages in connection with such transactions.<br>
  <br>
  (f) <u>Delivery of Purchase Price</u>. The Purchase Price for the Shares and
  Warrants, as applicable, shall have been delivered to the Company by each Purchaser
  at the Closing.<br>
  <br>
  (g) <u>Delivery of Transaction Documents</u>. The Transaction Documents to which
  the Purchasers are party shall have been duly executed and delivered by the
  Purchasers to the Company.<br>
  <br>
  Section 4.2 <u>Conditions Precedent to the Obligation of the Purchasers to Close
  and to Purchase the Shares and Warrants</u>. The obligation hereunder of the
  Purchasers to purchase the Shares and Warrants, as applicable, and consummate
  the transactions contemplated by this Agreement is subject to the satisfaction
  or waiver, at or before the Closing, of each of the conditions set forth below.
  These conditions are for each Purchaser's sole benefit and may be waived by
  such Purchaser at any time in its sole discretion.</font></div>
<div class=Section3>
  <p align="left">&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">9</font></p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    (a) <u>Accuracy of the Company's Representations and Warranties</u>. Each
    of the representations and warranties of the Company in this Agreement shall
    be true and correct in all material respects as of the Closing Date, except
    for representations and warranties that speak as of a particular date, which
    shall be true and correct in all material respects as of such date.<br>
    <br>
    (b) <u>Performance by the Company</u>. The Company shall have performed, satisfied
    and complied in all material respects with all covenants, agreements and conditions
    required by this Agreement to be performed, satisfied or complied with by
    the Company at or prior to the Closing Date.<br>
    <br>
    (c) <u>No Suspension, Etc</u>. Trading in the Common Stock shall not have
    been suspended by the Commission (except for any suspension of trading of
    limited duration agreed to by the Company, which suspension shall be terminated
    prior to the Closing), and, at any time prior to the Closing Date, trading
    in securities generally as reported by Bloomberg shall not have been suspended
    or limited, or minimum prices shall not have been established on securities
    whose trades are reported by Bloomberg, or quoted by NASDAQ, nor shall a banking
    moratorium have been declared either by the United States or California State
    authorities, nor shall there have occurred any national or international calamity
    or crisis of such magnitude in its effect on any financial market which, in
    each case, in the reasonable judgment of the Purchasers, makes it impracticable
    or inadvisable to purchase the Shares.<br>
    <br>
    (d) <u>No Injunction</u>. No statute, rule, regulation, executive order, decree,
    ruling or injunction shall have been enacted, entered, promulgated or endorsed
    by any court or governmental authority of competent jurisdiction which prohibits
    the consummation of any of the transactions contemplated by this Agreement.<br>
    <br>
    (e) <u>No Proceedings or Litigation</u>. No action, suit or proceeding before
    any arbitrator or any governmental authority shall have been commenced, and
    no investigation by any governmental authority shall have been threatened,
    against the Company or any of the officers, directors or affiliates of the
    Company, seeking to restrain, prevent or change the transactions contemplated
    by this Agreement, or seeking damages in connection with such transactions.<br>
    <br>
    (f) <u>Warrants and Shares</u>. The Company shall have delivered to the Purchasers
    facsimile copies of the originally executed Warrants (in such denominations
    as each Purchaser may request), and shall have made arrangements for delivery
    of the certificates representing the Shares (in such denominations as each
    Purchaser may request) being acquired by the Purchasers at the Closing. <br>
    <br>
    (g) <u>Reservation of Shares</u>. As of the Closing Date, the Company shall
    have reserved out of its authorized and unissued Common Stock, solely for
    the purpose of effecting the issuance of the Shares and the exercise of the
    Warrants, a number of shares of Common Stock equal to the sum of the Shares
    and the Warrant Shares issuable upon exercise of the Warrants, assuming the
    Warrants were granted on the Closing Date (after giving effect to the Warrants
    to be issued on the Closing Date and assuming the Warrants were fully exercisable
    on such date regardless of any limitation on the timing or amount of such
    exercises). </font></p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">10</font></p>
  <hr>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  (h) <u>Secretary's Certificate</u>. The Company shall have delivered to the
  Purchasers a secretary's certificate, dated as of the Closing Date, as to (i)
  the adoption of resolutions consistent with Section 2.1(b), (ii) the Certificate
  and the Bylaws, each as in effect at the Closing, and (iii) the authority and
  incumbency of the officers of the Company executing the Transaction Documents
  and any other documents required to be executed or delivered in connection therewith.<br>
  <br>
  (i) <u>Officer's Certificate</u>. On the Closing Date, the Company shall have
  delivered to the Purchasers a certificate of an executive officer of the Company,
  dated as of the Closing Date, confirming the accuracy of the Company's representations,
  warranties and covenants as of the Closing Date and confirming the compliance
  by the Company with the conditions precedent set forth in this Section 4.2 as
  of the Closing Date.<br>
  <br>
  (j) <u>Registration Rights Agreement</u>. As of the Closing Date, the parties
  shall have entered into the Registration Rights Agreement in the Form of Exhibit
  C attached hereto.<br>
  <br>
  <br>
  </font></div>
<div class=Section3>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>ARTICLE
    V</b></font></p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Certificate
    Legend</b></font></p>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 5.1 <u>Legend</u>. Each certificate representing the Shares and the
  Warrant Shares shall be stamped or otherwise imprinted with a legend substantially
  in the following form (in addition to any legend required by applicable state
  securities or &quot;blue sky&quot; laws):</font></div>
<blockquote>
  <blockquote>
    <blockquote>
      <div class=Section3><font face="Times New Roman, Times, serif" size="3">&quot;THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
        THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
        STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
        UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES
        LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER
        EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT
        SUCH REGISTRATION IS NOT REQUIRED.&quot;</font></div>
    </blockquote>
  </blockquote>
</blockquote>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  The legend set forth above shall be removed and the Company shall issue a certificate
  without such legend to the holder of the Securities upon which it is stamped
  if, unless otherwise required by state securities laws, (i) while such Securities
  are registered for resale under the 1933 Act, (ii) in connection with a sale,
  assignment or other transfer, such holder provides the Company with an opinion
  of counsel reasonably satisfactory to the Company, in a generally acceptable
  form, to the effect that such sale, assignment or transfer of the Securities
  may be made without registration under the applicable requirements of the 1933
  Act and that such legend is no longer required, or (iii) such holder provides
  the Company with reasonable assurance that the Securities can be sold, assigned
  or transferred pursuant to Rule 144 or Rule 144A, and such holder delivers the
  legended Securities to the Company or the Company's transfer agent. </font></div>
<div class=Section3>
  <p>&nbsp; </p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">11</font></p>
  <hr>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
    <b>ARTICLE VI</b></font></p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Termination</b></font></p>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 6.1 <u>Termination by Mutual Consent</u>. This Agreement may be terminated
  at any time prior to the Closing Date by the mutual written consent of the Company
  and the Purchasers.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 6.2 <u>Effect of Termination</u>. In the event of termination by the
  Company or the Purchasers, written notice thereof shall forthwith be given to
  the other party and the transactions contemplated by this Agreement shall be
  terminated without further action by any party. If this Agreement is terminated
  as provided in <u>Section 6.1</u> herein, this Agreement shall become void and
  of no further force and effect, except for <u>Sections 7.1</u> and <u>7.2</u>.
  Nothing in this <u>Section 6.2</u> shall be deemed to release the Company or
  any Purchaser from any liability for any breach under this Agreement or to impair
  the rights of the Company or such Purchaser to compel specific performance by
  the other party of its obligations under this Agreement.</font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>ARTICLE
    VII</b></font></p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b>Miscellaneous</b></font></p>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.1 <u>Fees and Expenses</u>. Each party shall pay the fees and expenses
  of its advisors, counsel, accountants and other experts, if any, and all other
  expenses, incurred by such party incident to the negotiation, preparation, execution,
  delivery and performance of this Agreement; <u>provided</u>, <u>however</u>,
  that the Company shall pay to Security Research Associates, Inc. (the &quot;<u>Placement
  Agent</u>&quot;) a transaction fee consisting of (i) cash in an amount of 5%
  of the gross proceeds from the transaction, and (ii) warrants to acquire a number
  of shares of Common Stock equal to 5% to 10% of the number of shares of Common
  Stock issued in the transaction depending on the net proceeds to the Company,
  in accordance with the engagement letter between the Company and the Placement
  Agent dated April 30, 2009. <br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.2 <u>Specific Enforcement; Consent to Jurisdiction</u>. <br>
  <br>
  (a) The Company and the Purchasers acknowledge and agree that irreparable damage
  would occur in the event that any of the provisions of this Agreement or the
  other Transaction Documents 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 or the other Transaction Documents and to
  enforce specifically the terms and provisions hereof or thereof, this being
  in addition to any other remedy to which any of them may be entitled by law
  or equity.</font></div>
<blockquote>
  <div class=Section3>
    <p>&nbsp;</p>
  </div>
</blockquote>
<div class=Section3>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">12</font></p>
  <hr>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  (b) With respect to any disputes arising out of or related to this Agreement
  or any of the other Transaction Documents or the transactions contemplated hereby
  or thereby, the parties consent to the exclusive jurisdiction of, and venue
  in, the state courts in Alameda County in the State of California (or in the
  event of exclusive federal jurisdiction, the courts of the Northern District
  of California). The parties hereby waive, and agree not to assert in any such
  suit, action or proceeding, any claim that it is not personally subject to the
  jurisdiction of such court, that the suit, action or proceeding is brought in
  an inconvenient forum or that the venue of the suit, action or proceeding is
  improper. The Company and each Purchaser consent to process being served in
  any such suit, action or proceeding by mailing a copy thereof to such party
  at the address in effect for notices to it under this Agreement and agrees that
  such service shall constitute good and sufficient service of process and notice
  thereof. Nothing in this <u>Section 7.2</u> shall affect or limit any right
  to serve process in any other manner permitted by law. The Company and the Purchasers
  hereby agree that the prevailing party in any suit, action or proceeding arising
  out of or relating to the Shares, this Agreement, the Registration Rights Agreement
  or the Warrants, shall be entitled to reimbursement for reasonable legal fees
  from the non-prevailing party.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.3 <u>Entire Agreement; Amendment</u>. This Agreement and the Transaction
  Documents contain the entire understanding and agreement of the parties with
  respect to the matters covered hereby and, except as specifically set forth
  herein or in the other Transaction Documents, neither the Company nor any Purchaser
  make any representation, warranty, covenant or undertaking with respect to such
  matters, and they supersede all prior understandings and agreements with respect
  to said subject matter, all of which are merged herein. No provision of this
  Agreement may be waived or amended other than by a written instrument signed
  by the Company and the holders of at least a majority in interest of the then-outstanding
  Shares, and no provision hereof may be waived other than by a written instrument
  signed by the party against whom enforcement of any such amendment or waiver
  is sought. No such amendment shall be effective to the extent that it applies
  to less than all of the holders of the Shares then outstanding. 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 Documents unless the same consideration
  is also offered to all of the parties to the Transaction Documents or holders
  of Shares, as the case may be. <br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.4 <u>Notices</u>. Any notice, demand, request, waiver or other communication
  required or permitted to be given hereunder shall be in writing and shall be
  effective (a) upon hand delivery if delivered in person or upon transmission
  if sent by telecopy or facsimile at the address or number designated below (if
  delivered on a business day during normal business hours where such notice is
  to be received), or the first business day following such delivery (if delivered
  other than on a business day during normal business hours where such notice
  is to be received), or (b) on the second business day following the date of
  mailing by express courier service, fully prepaid, addressed to such address,
  or upon actual receipt of such mailing, whichever shall first occur. The addresses
  for such communications shall be: </font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">13</font></p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    </font></p>
</div>
<div class=Section3>
  <div class=Section1>
    <p><font face="Times New Roman, Times, serif" size="3">If to the Company:<br>
      </font></p>
  </div>
  <blockquote>
    <div class=Section1><font face="Times New Roman, Times, serif" size="3">Socket
      Mobile, Inc.<br>
      39700 Eureka Drive<br>
      Newark, California 94560<br>
      Attention: David W. Dunlap, Chief Financial Officer<br>
      Telecopier: (510) 933-3104<br>
      Telephone: (510) 933-3000 </font></div>
    <div class=Section1>
      <p><font face="Times New Roman, Times, serif" size="3"><br>
        With copies (which shall not constitute notice) to:<br>
        <br>
        Wilson Sonsini Goodrich &amp; Rosati, P.C.<br>
        650 Page Mill Road<br>
        Palo Alto, California 94304<br>
        Attention: Herbert Fockler, Esq.<br>
        Telephone No.: (650) 493-9300<br>
        Facsimile No.: (650) 493-6811</font></p>
    </div>
  </blockquote>
</div>
<div class=Section3>
  <p class=MsoNormal
style="MARGIN-LEFT: 2in; TEXT-INDENT: -2in; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3">If
    to any Purchaser:<br>
    </font></p>
  <div class=Section1></div>
  <blockquote>
    <div class=Section1>
      <p><font face="Times New Roman, Times, serif" size="3">At the address of
        such Purchaser set forth on Exhibit A to this Agreement.</font></p>
    </div>
  </blockquote>
</div>
<div class=Section3>
  <div class=Section1><font face="Times New Roman, Times, serif" size="3"> Any
    party hereto may from time to time change its address for notices by giving
    at least ten (10) days written notice of such changed address to the other
    party hereto.<br>
    </font></div>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.5 <u>Waivers</u>. No waiver by any party of any default with respect
  to any provision, condition or requirement of this Agreement shall be deemed
  to be a continuing waiver in the future or a waiver of any other provision,
  condition or requirement hereof, nor shall any delay or omission of any party
  to exercise any right hereunder in any manner impair the exercise of any such
  right accruing to it thereafter.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.6 <u>Headings</u>. The article, section and subsection headings in
  this Agreement are for convenience only and shall not constitute a part of this
  Agreement for any other purpose and shall not be deemed to limit or affect any
  of the provisions hereof.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.7 <u>Successors and Assigns</u>. This Agreement shall be binding upon
  and inure to the benefit of the parties and their successors and assigns. After
  the Closing, the assignment by a party to this Agreement of any rights hereunder
  shall not affect the obligations of such party under this Agreement. Except
  as provided herein, the Purchasers may not assign the Shares, the Warrants and
  their rights under this Agreement and the other Transaction Documents and any
  other rights hereto and thereto without the consent of the Company.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.8 <u>No Third Party Beneficiaries</u>. This Agreement is intended
  for the benefit of the parties hereto and their respective permitted successors
  and assigns and is not for the benefit of, nor may any provision hereof be enforced
  by, any other person.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.9 <u>Governing Law</u>. This Agreement shall be governed by and construed
  in accordance with the internal laws of the State of California, without giving
  effect to the choice of law provisions. This Agreement shall not be interpreted
  or construed with any presumption against the party causing this Agreement to
  be drafted.</font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">14</font></p>
  <hr>
</div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  Section 7.10 <u>Survival</u>. Unless this Agreement is terminated under <u>Section
  6.1</u>, the representations and warranties of the Company and the Purchasers
  contained in Article II shall survive the execution and delivery hereof and
  the Closing until the date one (1) year from the Closing Date, and the agreements
  and covenants set forth in Articles I, III, V and VII of this Agreement shall
  survive the execution and delivery hereof and the Closing hereunder.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.11 <u>Counterparts</u>. This Agreement may be executed in any number
  of counterparts, all of which taken together shall constitute one and the same
  instrument and shall become effective when counterparts have been signed by
  each party and delivered to the other parties hereto, it being understood that
  all parties need not sign the same counterpart. <br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.12 <u>Publicity</u>. The Company agrees that it will not disclose,
  and will not include in any public announcement, the names of the Purchasers
  without the consent of the Purchasers in accordance with Section 7.3, which
  consent shall not be unreasonably withheld or delayed, or unless and until such
  disclosure is required by law, rule or applicable regulation, and then only
  to the extent of such requirement; provided, however, that the Purchasers acknowledge
  and agree that they will be included as selling shareholders in the Registration
  Statement.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.13 <u>California Corporate Securities Law</u>. THE SALE OF THE SECURITIES
  THAT ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER
  OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES
  OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO
  SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM
  QUALIFICATION BY SECTION 25100, 25102, OR 25105 OF THE CALIFORNIA CORPORATIONS
  CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED
  UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.14 <u>Severability</u>. The provisions of this Agreement are severable
  and, in the event that any court of competent jurisdiction shall determine that
  any one or more of the provisions or part of the provisions contained in this
  Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
  in any respect, such invalidity, illegality or unenforceability shall not affect
  any other provision or part of a provision of this Agreement and this Agreement
  shall be reformed and construed as if such invalid or illegal or unenforceable
  provision, or part of such provision, had never been contained herein, so that
  such provisions would be valid, legal and enforceable to the maximum extent
  possible.<br>
  </font></div>
<div class=Section3><font face="Times New Roman, Times, serif" size="3"><br>
  Section 7.15 <u>Further Assurances</u>. From and after the date of this Agreement,
  upon the request of the Purchasers or the Company, the Company and each Purchaser
  shall execute and deliver such instruments, documents and other writings as
  may be reasonably necessary or desirable to confirm and carry out and to effectuate
  fully the intent and purposes of this Agreement, the Warrants and the Registration
  Rights Agreement. </font></div>
<div class=Section3>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">15</font></p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    Section 7.16 <u>Independent Nature of Purchasers' Obligations and Rights</u>.
    The obligations of each Purchaser under any Transaction Document are several
    and not joint with the obligations of any other Purchaser, and no Purchaser
    shall be responsible in any way for the performance of the obligations of
    any other Purchaser under any Transaction Document. Nothing contained herein
    or in any other Transaction Document, and no action taken by any Purchaser
    pursuant hereto or thereto, shall be deemed to constitute the Purchasers as
    a partnership, an association, a joint venture or any other kind of entity,
    or create a presumption that the Purchasers are in any way acting in concert
    or as a group with respect to such obligations or the transactions contemplated
    by the Transaction Documents. Each Purchaser confirms that it has independently
    participated in the negotiation of the transactions contemplated hereby with
    the advice of its own counsel and advisors. Each Purchaser shall be entitled
    to independently protect and enforce its rights, including, without limitation,
    the rights arising out of this Agreement or out of any other Transaction Documents,
    and it shall not be necessary for any other Purchaser to be joined as an additional
    party in any proceeding for such purpose.</font></p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">[Remainder
    of page intentionally left blank. Signature pages to follow.]</font></p>
  <p align="center">&nbsp;</p>
  <p align="center">&nbsp;</p>
  <p align="center">&nbsp;</p>
  <p align="center">&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
    </font></p>
  <p>&nbsp; </p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3">16</font></p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    </font></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their respective authorized officers as of the date first above
      written.</font></p>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="100%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>COMPANY:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>SOCKET MOBILE, INC.</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ David W. Dunlap&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">Name:
                                            David W. Dunlap<br>
                                            Title: Chief Financial Officer </font></div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p>&nbsp; </p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="center">&nbsp;</p>
  <p align="center">&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
  <p>&nbsp;</p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><br>
    </b>IN WITNESS WHEREOF, the parties hereto have caused this Agreement
    to be duly executed by their respective authorized officers as of the date
    first above written. </font></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in"></p>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="100%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>MANAGEMENT PURCHASERS:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>Purchaser: <u>Kevin J. Mills</u></b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ Kevin J. Mills&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td>
                                          <div align=left>Email:<u>
                                            &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="34">&nbsp;</td>
                                        <td width="10%" height="34">&nbsp;</td>
                                        <td>
                                          <div align=left>Address:<u>
                                            &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>
                                            &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><br
style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break"
clear=all>
    </b> </font> </p>
</div>
<div class=Section5>
  <p>&nbsp;</p>
  <p class=MsoBodyText style="tab-stops: 3.0in 4.5in"><font face="Times New Roman, Times, serif" size="3">Number
    of Management Purchaser Shares: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font></p>
  <p class=MsoBodyText style="tab-stops: 192.0pt"><font face="Times New Roman, Times, serif" size="3">Price
    Per Management Purchaser Share:&nbsp; $2.00</font></p>
  <p class=MsoBodyText style="tab-stops: 3.5in"><font face="Times New Roman, Times, serif" size="3">Aggregate
    Purchase Price: <u>$ 400,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u></font></p>
  <p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">Please
    provide us with the following information:</font></p>
  <table class=MsoNormalTable
style="MARGIN-LEFT: 0.1in; WIDTH: 496pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 0in 0in 0in"
cellspacing=0 cellpadding=0 width=661 border=0>
    <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">1.&nbsp;&nbsp;&nbsp;&nbsp; The exact name
          that your Management Purchaser Shares are to be registered in. You may
          use a nominee name if appropriate:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
        <p class=MsoNormal>&nbsp;Kevin J. Mills</p>
      </td>
    </tr>
    <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">2.&nbsp;&nbsp;&nbsp;&nbsp; The relationship
          between the Management Purchaser and the registered holder listed in
          response to item 1 above:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
        <p class=MsoNormal>&nbsp;Same</p>
      </td>
    </tr>

    <tr style="mso-yfti-irow: 2">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">3.&nbsp;&nbsp;&nbsp;&nbsp; The mailing address
          of the registered holder listed in response to item 1 above:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
        <p class=MsoNormal>&nbsp;</p>
      </td>
    </tr>
    <tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">4.&nbsp;&nbsp;&nbsp;&nbsp; The Social Security
          Number or Tax Identification Number of the registered holder listed
          in response to item 1 above:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
        <p class=MsoNormal>&nbsp;</p>
      </td>
    </tr>

  </table>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
  <p align="center">&nbsp;</p>
  <hr>
  <p align="left"><font face="Times New Roman, Times, serif" size="3"><br>
    </font></p>
  <div class=Section3>
    <p><font face="Times New Roman, Times, serif" size="3">IN WITNESS WHEREOF,
      the parties hereto have caused this Agreement to be duly executed by their
      respective authorized officers as of the date first above written.</font></p>
    <div class=Section1>
      <p class=MsoBodyText style="TEXT-INDENT: 0in"></p>
      <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
    </div>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <blockquote>
                                    <div class=Section2>
                                      <table cols=2 width="100%" align="left">
                                        <tr>
                                          <td width="10%">&nbsp;</td>
                                          <td width="10%">&nbsp;</td>
                                          <td><b>MANAGEMENT PURCHASERS:</b></td>
                                        </tr>
                                        <tr>
                                          <td width="10%">&nbsp;</td>
                                          <td width="10%">&nbsp;</td>
                                          <td>&nbsp;</td>
                                        </tr>
                                        <tr>
                                          <td width="10%">&nbsp;</td>
                                          <td width="10%">&nbsp;</td>
                                          <td><b>Purchaser: <u>The Bass Trust</u></b></td>
                                        </tr>
                                        <tr>
                                          <td width="10%">&nbsp;</td>
                                          <td width="10%">&nbsp;</td>
                                          <td>&nbsp;</td>
                                        </tr>
                                        <tr>
                                          <td width="10%">&nbsp;</td>
                                          <td width="10%">
                                            <center>
                                            </center>
                                          </td>
                                          <td>
                                            <div align=left>By:<u>
                                              &nbsp; /s/ Charlie Bass&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                              </u> </div>
                                          </td>
                                        </tr>
                                        <tr>
                                          <td width="10%" height="44">&nbsp;</td>
                                          <td width="10%" height="44">&nbsp;</td>
                                          <td>
                                            <div align=left>Email:<u>
                                              &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                              </u> </div>
                                          </td>
                                        </tr>
                                        <tr>
                                          <td width="10%" height="34">&nbsp;</td>
                                          <td width="10%" height="34">&nbsp;</td>
                                          <td>
                                            <div align=left>Address:<u>
                                              &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                              </u> </div>
                                          </td>
                                        </tr>
                                        <tr>
                                          <td width="10%" height="45">&nbsp;</td>
                                          <td width="10%" height="45">
                                            <center>
                                              <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                              </font>
                                            </center>
                                          </td>
                                          <td>
                                            <div align=left><u>
                                              &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                              </u> </div>
                                          </td>
                                        </tr>
                                      </table>
                                    </div>
                                  </blockquote>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
    <p><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><br
style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break"
clear=all>
      </b> </font> </p>
  </div>
  <div class=Section5>
    <p>&nbsp;</p>
    <p class=MsoBodyText style="tab-stops: 3.0in 4.5in"><font face="Times New Roman, Times, serif" size="3">Number
      of Management Purchaser Shares: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </font></p>
    <p class=MsoBodyText style="tab-stops: 192.0pt"><font face="Times New Roman, Times, serif" size="3">Price
      Per Management Purchaser Share:&nbsp; $2.00</font></p>
    <p class=MsoBodyText style="tab-stops: 3.5in"><font face="Times New Roman, Times, serif" size="3">Aggregate
      Purchase Price: <u>$&nbsp; 100,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><u> </u></font></p>
    <p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
    <p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">Please
      provide us with the following information:</font></p>
    <table class=MsoNormalTable
style="MARGIN-LEFT: 0.1in; WIDTH: 496pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 0in 0in 0in"
cellspacing=0 cellpadding=0 width=661 border=0>
      <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
        <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
          <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">1.&nbsp;&nbsp;&nbsp;&nbsp; The exact name
            that your Management Purchaser Shares are to be registered in. You
            may use a nominee name if appropriate:</p>
        </td>
        <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
          <p class=MsoNormal>&nbsp;The Bass Trust</p>
        </td>
      </tr>
      <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
        <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
          <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">2.&nbsp;&nbsp;&nbsp;&nbsp; The relationship
            between the Management Purchaser and the registered holder listed
            in response to item 1 above:</p>
        </td>
        <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
          <p class=MsoNormal>&nbsp;Same</p>
        </td>
      </tr>

      <tr style="mso-yfti-irow: 2">
        <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
          <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">3.&nbsp;&nbsp;&nbsp;&nbsp; The mailing address
            of the registered holder listed in response to item 1 above:</p>
        </td>
        <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
          <p class=MsoNormal>&nbsp;</p>
        </td>
      </tr>
      <tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes">
        <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
          <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">4.&nbsp;&nbsp;&nbsp;&nbsp; The Social Security
            Number or Tax Identification Number of the registered holder listed
            in response to item 1 above:</p>
        </td>
        <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
          <p class=MsoNormal>&nbsp;</p>
        </td>
      </tr>

    </table>
  </div>
  <p align="left">&nbsp; </p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
  <p align="center">&nbsp;</p>
  <hr>
  <p>&nbsp;</p>
  <p><font face="Times New Roman, Times, serif" size="3">IN WITNESS WHEREOF,
    the parties hereto have caused this Agreement to be duly executed by their
    respective authorized officers as of the date first above written.</font></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in"></p>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="100%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>NON-MANAGEMENT PURCHASERS:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>Purchaser: <u>Rogers Family Trust
                                          </u></b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>By:&nbsp; /s/ Roy L. Rogers&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="47">&nbsp;</td>
                                        <td width="10%" height="47">&nbsp;</td>
                                        <td height="47">
                                          <div align=left>Print Name: <u>Roy L. Rogers&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td height="44">
                                          <div align=left>Title: <u>Trustee&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td height="44">
                                          <div align=left>Email: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="34">&nbsp;</td>
                                        <td width="10%" height="34">&nbsp;</td>
                                        <td height="44">
                                          <div align=left>Address: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> <u> </u> </div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
  <p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
  <p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
  <p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
  <p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
  <p class=MsoBodyText style="tab-stops: 3.0in 4.5in"><font face="Times New Roman, Times, serif" size="3">Number
    of Non-Management Purchaser Shares:&nbsp;
    <u>140,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">Shares
    issuable upon exercise of Non-Management Purchaser Warrant: 28,000 (20% warrant
    coverage)</font></p>
  <p class=MsoBodyText style="tab-stops: 192.0pt"><font face="Times New Roman, Times, serif" size="3">Price
    Per Non-Management Purchaser Share:&nbsp;
    $1.80</font></p>
  <p class=MsoBodyText style="tab-stops: 192.0pt"><font face="Times New Roman, Times, serif" size="3">Non-Management
    Purchaser Warrant Exercise Price Per Share:&nbsp;
    $1.80</font></p>
  <p class=MsoBodyText style="tab-stops: 3.5in"><font face="Times New Roman, Times, serif" size="3">Aggregate
    Purchase Price: <u>$ 252,000</u><u></u></font></p>
  <p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">Please
    provide us with the following information:</font></p>
  <table class=MsoNormalTable
style="MARGIN-LEFT: 0.1in; WIDTH: 496pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 0in 0in 0in"
cellspacing=0 cellpadding=0 width=661 border=0>

    <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">1.&nbsp;&nbsp;&nbsp;&nbsp; The exact name
          that your Non-Management Purchaser Shares and Warrant are to be registered
          in. You may use a nominee name if appropriate:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
        <p class=MsoNormal>&nbsp;</p>
        <p class=MsoNormal>Rogers Family Trust</p>
      </td>
    </tr>
    <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">2.&nbsp;&nbsp;&nbsp;&nbsp; The relationship
          between the Non-Management Purchaser and the registered holder listed
          in response to item 1 above:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
        <p class=MsoNormal>&nbsp;Same</p>
      </td>
    </tr>
    <tr style="mso-yfti-irow: 2">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">3.&nbsp;&nbsp;&nbsp;&nbsp; The mailing address
          of the registered holder listed in response to item 1 above:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
        <p class=MsoNormal>&nbsp;</p>
      </td>
    </tr>
    <tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes">
      <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
        <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">4.&nbsp;&nbsp;&nbsp;&nbsp; The Social Security
          Number or Tax Identification Number of the registered holder listed
          in response to item 1 above:</p>
      </td>
      <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
        <p class=MsoNormal>&nbsp;</p>
      </td>
    </tr>

  </table>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
  <p align="center">&nbsp;</p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
    be duly executed by their respective authorized officers as of the date first
    above written.</font></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in"></p>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="100%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>NON-MANAGEMENT PURCHASERS:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>Purchaser: <u>Cardinal Value L.P.</u></b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>By:&nbsp; /s/ James K. Smart&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="47">&nbsp;</td>
                                        <td width="10%" height="47">&nbsp;</td>
                                        <td height="47">
                                          <div align=left>Print Name: <u>James K. Smart&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td height="44">
                                          <div align=left>Title: <u>Managing Member&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td width="10%" height="44">&nbsp;</td>
                                        <td height="44">
                                          <div align=left>Email: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="34">&nbsp;</td>
                                        <td width="10%" height="34">&nbsp;</td>
                                        <td height="44">
                                          <div align=left>Address: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> <u> </u> </div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p>&nbsp; </p>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in"><font face="Times New Roman, Times, serif" size="3">Number of Non-Management Purchaser
  Shares: <u>27,776</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </font></p>
<p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">Shares
  issuable upon exercise of Non-Management Purchaser Warrant: 5,555 (20% warrant
  coverage)</font></p>
<p class=MsoBodyText style="tab-stops: 192.0pt"><font face="Times New Roman, Times, serif" size="3">Price Per Non-Management Purchaser
  Share:&nbsp; $1.80</font></p>
<p class=MsoBodyText style="tab-stops: 192.0pt"><font face="Times New Roman, Times, serif" size="3">Non-Management Purchaser Warrant
  Exercise Price Per Share:&nbsp; $1.80</font></p>
<p class=MsoBodyText style="tab-stops: 3.5in"><font face="Times New Roman, Times, serif" size="3">Aggregate Purchase Price: <u>$49,996,80</u></font></p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">Please provide us with the following
  information:</font></p>
<table class=MsoNormalTable
style="MARGIN-LEFT: 0.1in; WIDTH: 496pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 0in 0in 0in"
cellspacing=0 cellpadding=0 width=661 border=0>
  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">1.&nbsp;&nbsp;&nbsp;&nbsp; The exact name
        that your Non-Management Purchaser Shares and Warrant are to be registered
        in. You may use a nominee name if appropriate:</p>
    </td>
    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
      <p class=MsoNormal>Cardinal Value L.P.</p>
    </td>
  </tr>
  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">2.&nbsp;&nbsp;&nbsp;&nbsp; relationship between
        the Non-Management Purchaser and the registered holder listed in response
        to item 1 above:</p>
    </td>
    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
      <p class=MsoNormal>&nbsp;Same</p>
    </td>
  </tr>

  <tr style="mso-yfti-irow: 2">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">3.&nbsp;&nbsp;&nbsp;&nbsp; The mailing address
        of the registered holder listed in response to item 1 above:</p>
    </td>
    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
  </tr>
  <tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">4.&nbsp;&nbsp;&nbsp;&nbsp; The Social Security
        Number or Tax Identification Number of the registered holder listed in
        response to item 1 above:</p>
    </td>
    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
  </tr>

</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
<p align="center">&nbsp;</p>
<hr>
<p><br>
  <font face="Times New Roman, Times, serif" size="3">IN WITNESS WHEREOF,
  the parties hereto have caused this Agreement to be duly executed by their respective
  authorized officers as of the date first above written.</font></p>
<div class=Section1>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
</div>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <div class=Section2>
                                  <table cols=2 width="100%" align="left">
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td><b>NON-MANAGEMENT PURCHASERS:</b></td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td>&nbsp;</td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td><b>Purchaser: <u>Howard Miller IRA</u></b></td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td>&nbsp;</td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">
                                        <center>
                                        </center>
                                      </td>
                                      <td>
                                        <div align=left><u>By:&nbsp; /s/ Howard Miller&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="47">&nbsp;</td>
                                      <td width="10%" height="47">&nbsp;</td>
                                      <td height="47">
                                        <div align=left>Print Name: <u>Howard Miller&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Title: <u>Custodian&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Email: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="34">&nbsp;</td>
                                      <td width="10%" height="34">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Address: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="45">&nbsp;</td>
                                      <td width="10%" height="45">
                                        <center>
                                          <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                          </font>
                                        </center>
                                      </td>
                                      <td>
                                        <div align=left><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                  </table>
                                </div>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p>&nbsp; </p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">Number of Non-Management Purchaser
  Shares: <u>16,800</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </p>
<p class=MsoBodyText>Shares
  issuable upon exercise of Non-Management Purchaser Warrant: 3,360 (20% warrant
  coverage)</p>
<p class=MsoBodyText style="tab-stops: 192.0pt">Price Per Non-Management Purchaser
  Share:&nbsp; $1.80</p>
<p class=MsoBodyText style="tab-stops: 192.0pt">Non-Management Purchaser Warrant
  Exercise Price Per Share:&nbsp; $1.80</p>
<p class=MsoBodyText style="tab-stops: 3.5in">Aggregate Purchase Price: <u>$30,240</u><u></u></p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in">&nbsp;</p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in">Please provide us with the following
  information:</p>
<table class=MsoNormalTable
style="MARGIN-LEFT: 0.1in; WIDTH: 496pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 0in 0in 0in"
cellspacing=0 cellpadding=0 width=661 border=0>

  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">1.&nbsp;&nbsp;&nbsp;&nbsp; The exact name
        that your Non-Management Purchaser Shares and Warrant are to be registered
        in. You may use a nominee name if appropriate:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
      <p class=MsoNormal>Howard Miller IRA</p>
    </td>
    </tr>
  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">2.&nbsp;&nbsp;&nbsp;&nbsp; relationship between
        the Non-Management Purchaser and the registered holder listed in response
        to item 1 above:</p>
    </td>
    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
      <p class=MsoNormal>&nbsp;Same</p>
    </td>
  </tr>
  <tr style="mso-yfti-irow: 2">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">3.&nbsp;&nbsp;&nbsp;&nbsp; The mailing address
        of the registered holder listed in response to item 1 above:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
    </tr>
  <tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">4.&nbsp;&nbsp;&nbsp;&nbsp; The Social Security
        Number or Tax Identification Number of the registered holder listed in
        response to item 1 above:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
    </tr>

</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
<p align="center">&nbsp;</p>
<hr>
<p><br>
  <font face="Times New Roman, Times, serif" size="3">IN WITNESS WHEREOF,
  the parties hereto have caused this Agreement to be duly executed by their respective
  authorized officers as of the date first above written.</font></p>
<div class=Section1>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
</div>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <div class=Section2>
                                  <table cols=2 width="100%">
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td><b>NON-MANAGEMENT PURCHASERS:</b></td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td>&nbsp;</td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td><b>Purchaser: <u>Leviticus Partners,
                                        L.P.</u></b></td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td>&nbsp;</td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">
                                        <center>
                                        </center>
                                      </td>
                                      <td>
                                        <div align=left><u>By:&nbsp; /s/ Adam M. Hutt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="47">&nbsp;</td>
                                      <td width="10%" height="47">&nbsp;</td>
                                      <td height="47">
                                        <div align=left>Print Name: <u>Adam M. Hutt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Title: <u>Resident, AMH Equity LLC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Email: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="34">&nbsp;</td>
                                      <td width="10%" height="34">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Address: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="45">&nbsp;</td>
                                      <td width="10%" height="45">
                                        <center>
                                          <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                          </font>
                                        </center>
                                      </td>
                                      <td>
                                        <div align=left><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                  </table>
                                </div>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p>&nbsp; </p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">Number of Non-Management Purchaser
  Shares: <u>83,333</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </p>
<p class=MsoBodyText>Shares
  issuable upon exercise of Non-Management Purchaser Warrant: 16,666 (20% warrant
  coverage)</p>
<p class=MsoBodyText style="tab-stops: 192.0pt">Price Per Non-Management Purchaser
  Share:&nbsp; $1.80</p>
<p class=MsoBodyText style="tab-stops: 192.0pt">Non-Management Purchaser Warrant
  Exercise Price Per Share:&nbsp; $1.80</p>
<p class=MsoBodyText style="tab-stops: 3.5in">Aggregate Purchase Price: <u>$149,999.40</u><u></u></p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in">&nbsp;</p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in">Please provide us with the following
  information:</p>
<table class=MsoNormalTable
style="MARGIN-LEFT: 0.1in; WIDTH: 496pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 0in 0in 0in"
cellspacing=0 cellpadding=0 width=661 border=0>

  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">1.&nbsp;&nbsp;&nbsp;&nbsp; The exact name
        that your Non-Management Purchaser Shares and Warrant are to be registered
        in. You may use a nominee name if appropriate:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
      <p class=MsoNormal>Leviticus Partners L.P.</p>
    </td>
    </tr>
  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">2.&nbsp;&nbsp;&nbsp;&nbsp; relationship between
        the Non-Management Purchaser and the registered holder listed in response
        to item 1 above:</p>
    </td>
    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
      <p class=MsoNormal>&nbsp;Same</p>
    </td>
  </tr>
  <tr style="mso-yfti-irow: 2">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">3.&nbsp;&nbsp;&nbsp;&nbsp; The mailing address
        of the registered holder listed in response to item 1 above:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
    </tr>
  <tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">4.&nbsp;&nbsp;&nbsp;&nbsp; The Social Security
        Number or Tax Identification Number of the registered holder listed in
        response to item 1 above:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
    </tr>

</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
<p align="center">&nbsp;</p>
<hr>
<p><br>
  <font face="Times New Roman, Times, serif" size="3">IN WITNESS WHEREOF,
  the parties hereto have caused this Agreement to be duly executed by their respective
  authorized officers as of the date first above written.</font></p>
<div class=Section1>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
</div>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <div class=Section2>
                                  <table cols=2 width="100%" align="left">
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td><b>NON-MANAGEMENT PURCHASERS:</b></td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td>&nbsp;</td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td><b>Purchaser: <u>Brian G. Swift IRA</u></b></td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td>&nbsp;</td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">
                                        <center>
                                        </center>
                                      </td>
                                      <td>
                                        <div align=left><u>By:&nbsp; /s/ Brian G. Swift&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="47">&nbsp;</td>
                                      <td width="10%" height="47">&nbsp;</td>
                                      <td height="47">
                                        <div align=left>Print Name: <u>Brian G. Swift&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Title: <u>Custodian&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td width="10%" height="44">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Email: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="34">&nbsp;</td>
                                      <td width="10%" height="34">&nbsp;</td>
                                      <td height="44">
                                        <div align=left>Address: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                    <tr>
                                      <td width="10%" height="45">&nbsp;</td>
                                      <td width="10%" height="45">
                                        <center>
                                          <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                          </font>
                                        </center>
                                      </td>
                                      <td>
                                        <div align=left><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u> </div>
                                      </td>
                                    </tr>
                                  </table>
                                </div>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p>&nbsp; </p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">&nbsp;</p>
<p class=MsoBodyText style="tab-stops: 3.0in 4.5in">Number of Non-Management Purchaser
  Shares: <u>38,877</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </p>
<p class=MsoBodyText>Shares
  issuable upon exercise of Non-Management Purchaser Warrant: 7,775 (20% warrant
  coverage)</p>
<p class=MsoBodyText style="tab-stops: 192.0pt">Price Per Non-Management Purchaser
  Share:&nbsp; $1.80</p>
<p class=MsoBodyText style="tab-stops: 192.0pt">Non-Management Purchaser Warrant
  Exercise Price Per Share:&nbsp; $1.80</p>
<p class=MsoBodyText style="tab-stops: 3.5in">Aggregate Purchase Price: $<u>69,978.60</u></p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in">&nbsp;</p>
<p class=MsoBodyTextFirstIndent style="TEXT-INDENT: 0in">Please provide us with the following
  information:</p>
<table class=MsoNormalTable
style="MARGIN-LEFT: 0.1in; WIDTH: 496pt; BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 0in 0in 0in"
cellspacing=0 cellpadding=0 width=661 border=0>

  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">1.&nbsp;&nbsp;&nbsp;&nbsp; The exact name
        that your Non-Management Purchaser Shares and Warrant are to be registered
        in. You may use a nominee name if appropriate:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
      <p class=MsoNormal>Brian G. Swift IRA</p>
    </td>
    </tr>
  <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469 height="42">
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">2.&nbsp;&nbsp;&nbsp;&nbsp; relationship between
        the Non-Management Purchaser and the registered holder listed in response
        to item 1 above:</p>
    </td>
    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=bottom width=192 height="42">
      <p class=MsoNormal>&nbsp;Same</p>
    </td>
  </tr>
  <tr style="mso-yfti-irow: 2">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">3.&nbsp;&nbsp;&nbsp;&nbsp; The mailing address
        of the registered holder listed in response to item 1 above:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
    </tr>
  <tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes">
    <td
    style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 352pt; PADDING-TOP: 5.75pt"
    valign=top width=469>
      <p class=MsoNormal
      style="MARGIN: 0in 9pt 0pt 24.3pt; TEXT-INDENT: -24.3pt; tab-stops: 24.3pt">4.&nbsp;&nbsp;&nbsp;&nbsp; The Social Security
        Number or Tax Identification Number of the registered holder listed in
        response to item 1 above:</p>
    </td>

    <td
    style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2in; PADDING-TOP: 5.75pt; BORDER-BOTTOM: windowtext 1pt solid"
    valign=top width=192>
      <p class=MsoNormal>&nbsp;</p>
    </td>
    </tr>

</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signature Page to Securities Purchase Agreement]</b></font></p>
<p align="center">&nbsp;</p>
<hr>
<p>&nbsp;</p>
<p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>EXHIBIT A</u></b></font></p>
<p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">PURCHASERS</b></font></p>
<p class=cenhead style="MARGIN: 0in 0in 0pt"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
<p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>Non-Management Purchasers&nbsp;</u></b></font></p>
<p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u></u></b></font></p>
<div align=center>
  <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>&nbsp;</u></b></font></p>
  <table width="60%" border="1" cellspacing="0" cellpadding="0" align="center">
    <tr>
      <td width="25%">
        <div align="left"><b><u>Name</u> </b></div>
      </td>
      <td width="20%">
        <div align="center"><b><u>Number of Shares</u></b></div>
      </td>
      <td width="20%">
        <p align="center"><b><u>Number of Warrants</u></b></p>
      </td>
      <td width="15%">
        <div align="center"><b><u>Price per Share</u></b></div>
      </td>
      <td width="25%">
        <div align="center"><b><u>Total Investment</u></b></div>
      </td>
    </tr>
    <tr valign="top">
      <td width="25%">Rogers Family Trust,<br>
        Roy Rogers Trustee</td>
      <td width="20%">
        <div align="center">140,000</div>
      </td>
      <td width="20%">
        <div align="center">28,000</div>
      </td>
      <td width="15%">
        <div align="center">$1.80</div>
      </td>
      <td width="25%">
        <div align="center">$252,000.00</div>
      </td>
    </tr>
    <tr valign="top">
      <td width="25%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="15%">&nbsp;</td>
      <td width="25%">&nbsp;</td>
    </tr>
    <tr valign="top">
      <td width="25%" height="31">
        <div align="left">Cardinal Value LLP</div>
      </td>
      <td width="20%" height="31">
        <div align="center">27,776</div>
      </td>
      <td width="20%" height="31">
        <p align="center">5,555</p>
      </td>
      <td width="15%" height="31">
        <div align="center">$1.80</div>
      </td>
      <td width="25%" height="31">
        <div align="center">$49,996.80</div>
      </td>
    </tr>
    <tr valign="top">
      <td width="25%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="15%">&nbsp;</td>
      <td width="25%">&nbsp;</td>
    </tr>
    <tr valign="top">
      <td width="25%">Howard Miller IRA</td>
      <td width="20%">
        <div align="center">16,800</div>
      </td>
      <td width="20%">
        <div align="center">3,360</div>
      </td>
      <td width="15%">
        <div align="center">$1.80</div>
      </td>
      <td width="25%">
        <div align="center">$30,240.00</div>
      </td>
    </tr>
    <tr valign="top">
      <td width="25%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="15%">&nbsp;</td>
      <td width="25%">&nbsp;</td>
    </tr>
    <tr valign="top">
      <td width="25%">Leviticus Partners, L.P.</td>
      <td width="20%">
        <div align="center">83,333</div>
      </td>
      <td width="20%">
        <div align="center">16,666</div>
      </td>
      <td width="15%">
        <div align="center">$1.80</div>
      </td>
      <td width="25%">
        <div align="center">$149,999.40</div>
      </td>
    </tr>
    <tr valign="top">
      <td width="25%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="15%">&nbsp;</td>
      <td width="25%">&nbsp;</td>
    </tr>
    <tr valign="top">
      <td width="25%">Brian G. Swift IRA</td>
      <td width="20%">
        <div align="center">38,877</div>
      </td>
      <td width="20%">
        <div align="center">7,775</div>
      </td>
      <td width="15%">
        <div align="center">$1.80</div>
      </td>
      <td width="25%">
        <div align="center">$69,978.60</div>
      </td>
    </tr>
  </table>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>Management Purchasers<br>
    <br>
    </u></b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u></u></b></font></p>
  <table width="60%" border="1" cellspacing="0" cellpadding="0" align="center">
    <tr>
      <td width="25%">
        <div align="left"><b><u>Name</u> </b></div>
      </td>
      <td width="20%">
        <div align="center"><b><u>Number of Shares</u></b></div>
      </td>
      <td width="25%">
        <p align="center"><b><u>Price per Share</u></b></p>
      </td>
      <td width="20%">
        <div align="center"><b><u>Total Investment</u></b></div>
      </td>
    </tr>
    <tr valign="top">
      <td width="25%">Kevin Mills</td>
      <td width="20%">
        <div align="center">200,000</div>
      </td>
      <td width="25%">
        <div align="center">$2.00</div>
      </td>
      <td width="20%">
        <div align="center">$400,000</div>
      </td>
    </tr>
    <tr valign="top">
      <td width="25%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
      <td width="25%">&nbsp;</td>
      <td width="20%">&nbsp;</td>
    </tr>
    <tr valign="top">
      <td width="25%" height="31">
        <div align="left">The Bass Trust,<br>
          Charlie Bass Trustee </div>
      </td>
      <td height="31">
        <div align="center">50,000</div>
      </td>
      <td height="31">
        <p align="center">$2.00</p>
      </td>
      <td height="31">
        <div align="center">$100,000</div>
      </td>
    </tr>
  </table>
  <p>&nbsp;</p>
  <hr>
  <p>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>EXHIBIT B</u></b></font></p>
  <p><b>FORM OF WARRANT</b></p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="left">&nbsp;</p>
</div>
<p>&nbsp;</p>
<div class=Section12><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u></u></b></font></div>
<div class=Section14>
  <hr>
  <p>&nbsp;</p>
  <p align="center"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>EXHIBIT C</u></b></font><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"></b></font></p>
  <p align="center"><b>FORM OF REGISTRATION RIGHTS AGREEMENT</b></p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <hr>
  <p>&nbsp;</p>
</div>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>ex1014.htm
<DESCRIPTION>EXHIBIT 10.14
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
  10.14</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
<div class=Section1>
  <p class=cenhead style="MARGIN: 0in 0in 0pt" align="center"><font face="Times New Roman, Times, serif" size="3"><b><u>REGISTRATION
    RIGHTS AGREEMENT</u></b></font></p>
  <p class=MsoBodyText style="MARGIN-BOTTOM: 0pt"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText style="MARGIN-BOTTOM: 0pt"><font face="Times New Roman, Times, serif" size="3">This
    Registration Rights Agreement (this &quot;<u>Agreement</u>&quot;) is made
    and entered into as of May 18, 2009, by and among Socket Mobile, Inc., a Delaware
    corporation (the &quot;<u>Company</u>&quot;), and the persons and entities
    listed on <u>Exhibit A</u> hereto (each, a &quot;<u>Purchaser</u>&quot; and,
    collectively, the &quot;<u>Purchasers</u>&quot;).</font></p>
  <p class=MsoBodyText style="MARGIN-BOTTOM: 0pt"><font face="Times New Roman, Times, serif" size="3">WHEREAS,
    upon the terms and subject to the conditions of the Securities Purchase Agreement,
    dated as of the date hereof (the &quot;<u>Purchase Agreement</u>&quot;), the
    Company has agreed to issue and sell shares of its Common Stock and Warrants
    to purchase shares of its Common Stock to the Purchasers; and </font></p>
  <p class=MsoBodyText style="MARGIN-BOTTOM: 0pt"><font face="Times New Roman, Times, serif" size="3">WHEREAS,
    to induce the Purchasers to execute and deliver the Purchase Agreement and
    to purchase the Shares and the Warrants, the Company has agreed to provide
    certain registration rights under the Securities Act of 1933, as amended,
    with respect to the Shares, the Warrants and the Warrant Shares (each as respectively
    defined in the Purchase Agreement).</font></p>
  <p class=MsoBodyText style="MARGIN-BOTTOM: 0pt"><font face="Times New Roman, Times, serif" size="3">NOW,
    THEREFORE, in consideration of the representations, warranties and agreements
    contained herein and other good and valuable consideration, the receipt and
    legal adequacy of which are hereby acknowledged by the parties, the Company
    and the Purchasers hereby agree as follows:</font></p>
  <p class=MsoBodyText style="MARGIN-BOTTOM: 0pt"><font face="Times New Roman, Times, serif" size="3">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Definitions</u>.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">Capitalized
    terms used but not otherwise defined herein shall have the meanings given
    such terms in the Purchase Agreement.&nbsp; As used in this Agreement, the following
    terms shall have the following meanings:</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Affiliate</u>&quot;
    means, with respect to any Person, any other Person that directly or indirectly
    controls or is controlled by or under common control with such Person.&nbsp;
    For the purposes of this definition, &quot;<u>control</u>,&quot; when used
    with respect to any Person, means the possession, direct or indirect, of the
    power to direct or cause the direction of the management and policies of such
    Person, whether through the ownership of voting securities, by contract or
    otherwise; and the terms &quot;<u>affiliated</u>,&quot; &quot;<u>controlling</u>&quot;
    and &quot;<u>controlled</u>&quot; have meanings correlative to the foregoing.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Board</u>&quot;
    shall have the meaning set forth in Section 3(m).</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Business
    Day</u>&quot; means any day except Saturday, Sunday and any day which is a
    legal holiday or a day on which banking institutions in the state of California
    generally are authorized or required by law or other government actions to
    close.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Commission</u>&quot;
    means the Securities and Exchange Commission.</font></p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
    1<br>
    </font></p>
  <hr>
  <p class=MsoBodyText>&nbsp;</p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Common
    Shares</u>&quot; shall have the meaning set forth in the definition of &quot;Registrable
    Securities.&quot;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Common
    Stock</u>&quot; means the Company's Common Stock, $0.001 par value.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Effectiveness
    Date</u>&quot; means, with respect to the Registration Statement, the date
    on which the Registration is declared effective by the SEC, which date shall
    not be more than 90 days after the date of this Agreement.&nbsp; </font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Effectiveness
    Period</u>&quot; shall have the meaning set forth in Section 2.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Exchange
    Act</u>&quot; means the Securities Exchange Act of 1934, as amended.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Holder</u>&quot;
    means, collectively, each holder from time to time of Registrable Securities
    including, without limitation, each Purchaser and its assignees. To the extent
    this Agreement refers to an election, consent, waiver, request or approval
    of or by the Holders, such reference shall mean an election, consent, waiver,
    request or approval by the Holders of a majority in interest of the then-outstanding
    Registrable Securities (on an as exercised basis).</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Indemnified
    Party</u>&quot; shall have the meaning set forth in Section 6(c).</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Indemnifying
    Party</u>&quot; shall have the meaning set forth in Section 6(c).</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Losses</u>&quot;
    shall have the meaning set forth in Section<b style="mso-bidi-font-weight: normal">
    </b>6(a).</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Person</u>&quot;
    means an individual or a corporation, partnership, trust, incorporated or
    unincorporated association, joint venture, limited liability company, joint
    stock company, government (or an agency or political subdivision thereof)
    or other entity of any kind.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Proceeding</u>&quot;
    means an action, claim, suit, investigation or proceeding (including, without
    limitation, an investigation or partial proceeding, such as a deposition),
    whether commenced or threatened.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Prospectus</u>&quot;
    means the prospectus included in the Registration Statement (including, without
    limitation, a prospectus that includes any information previously omitted
    from a prospectus filed as part of an effective registration statement in
    reliance upon Rule 430A promulgated under the Securities Act), as amended
    or supplemented by any prospectus supplement, with respect to the terms of
    the offering of any portion of the Registrable Securities covered by the Registration
    Statement, and all other amendments and supplements to the Prospectus, including
    post-effective amendments, and all material incorporated by reference in such
    Prospectus, as applicable.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Registrable
    Securities</u>&quot; means (i) the shares of Common Stock issued or issuable
    pursuant to the Purchase Agreement, and upon any stock split, stock dividend,
    recapitalization or similar event with respect to such shares of Common Stock
    and any other securities issued in exchange of or replacement of such shares
    of Common Stock (collectively, the &quot;<u>Common Shares</u>&quot;); until
    in the case of any particular Common Share (a) a Registration Statement covering
    such Common Share has been declared effective by the Commission and continues
    to be effective during the Effectiveness Period, (b) such Common Share is
    sold in compliance with Rule 144 or (c) such Common Share may be sold in compliance
    with Rule 144 without restriction, after which time such Common Share shall
    not be a Registrable Security; and (ii) the shares of Common Stock issued
    and issuable pursuant to the exercise of the Warrants and shares of Common
    Stock issued or issuable upon exercise or conversion of the warrants issued
    to the placement agent, and/or its assigns, that managed the transactions
    contemplated under the Purchase Agreement, and upon any stock split, stock
    dividend, recapitalization or similar event with respect to such shares of
    Common Stock and any other securities issued in exchange of or replacement
    of such shares of Common Stock (collectively, the &quot;<u>Warrant Shares</u>&quot;);
    until in the case of any of the Warrant Shares (a) a Registration Statement
    covering such Warrant Share has been declared effective by the Commission
    and continues to be effective during the Effectiveness Period, (b) such Warrant
    Share is sold in compliance with Rule 144 or (c) such Warrant Share may be
    sold in compliance with Rule 144 without restriction, after which time such
    Warrant Share shall not be a Registrable Security.</font></p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
    2 <br>
    </font></p>
  <hr>
  <font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  &quot;<u>Registration Statement</u>&quot; means the registration statement,
  including the Prospectus, amendments and supplements to such registration statement
  or Prospectus, including, as applicable, any pre- and post-effective amendments,
  all exhibits thereto, and all material incorporated by reference in such registration
  statement, for the Shares and the Warrant Shares required to be filed by the
  Company with the Commission pursuant to this Agreement.</font>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Required
    Effective Date</u>&quot; shall have the meaning set forth in Section 8(b).</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Rule
    144</u>&quot; means Rule 144 promulgated by the Commission pursuant to the
    Securities Act, as such Rule may be amended from time to time, or any similar
    rule or regulation hereafter adopted by the Commission having substantially
    the same effect as such Rule.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Rule
    158</u>&quot; means Rule 158 promulgated by the Commission pursuant to the
    Securities Act, as such Rule may be amended from time to time, or any similar
    rule or regulation hereafter adopted by the Commission having substantially
    the same effect as such Rule.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Rule
    415</u>&quot; means Rule 415 promulgated by the Commission pursuant to the
    Securities Act, as such Rule may be amended from time to time, or any similar
    rule or regulation hereafter adopted by the Commission having substantially
    the same effect as such Rule.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Securities
    Act</u>&quot; means the Securities Act of 1933, as amended.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Special
    Counsel</u>&quot; means a single attorney selected by and acting as special
    counsel on behalf of all of the Holders.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&quot;<u>Warrant
    Shares</u>&quot; shall have the meaning set forth in the definition of &quot;Registrable
    Securities.&quot;</font></p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
    3 <br>
    </font></p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Registration</u>. The Company shall prepare and file with the Commission
    a Registration Statement covering the resale of the Registrable Securities
    for an offering to be made on a continuous basis pursuant to Rule 415. The
    Registration Statement shall be on Form S-3 (except if the Company is not
    then eligible to register for resale the Registrable Securities on Form S-3,
    in which case such registration shall be on another appropriate form in accordance
    with the Securities Act and the rules promulgated thereunder) and shall contain
    (except if otherwise directed by the Purchasers) the &quot;<u>Plan of Distribution</u>&quot;
    attached hereto as <u>Exhibit B</u>. The Company shall (i) not permit any
    securities other than the Registrable Securities to be included in the Registration
    Statement, (ii) use its commercially reasonable efforts to cause the Registration
    Statement to be declared effective under the Securities Act (including filing
    with the Commission a request for acceleration of effectiveness in accordance
    with Rule 461 promulgated under the Securities Act within five (5) Business
    Days of the date that the Company is notified in writing by the Commission
    that the Registration Statement will not be &quot;reviewed,&quot; or not be
    subject to further review) as soon as possible after the filing thereof, but
    in any event prior to the Effectiveness Date, and (iii) keep such Registration
    Statement continuously effective under the Securities Act until the earliest
    to occur of: (x) the five (5) year anniversary of the Closing Date (as defined
    in the Purchase Agreement), (y) the date on which all shares of Common Stock
    sold pursuant to the Purchase Agreement (excluding all shares of Common Stock
    sold to the Management Purchasers (as defined in the Purchase Agreement))
    or issuable upon exercise of the Warrants may be sold under Rule 144, or (z)
    the date on which all shares Common Stock sold pursuant to the Purchase Agreement
    (excluding all shares of Common Stock sold to the Management Purchasers) and
    all shares of Common Stock issuable upon exercise of the Warrants have been
    sold by the Purchasers who purchased such shares pursuant to the Purchase
    Agreement (the &quot;<u>Effectiveness Period</u>&quot;).&nbsp;</font></p>
  <p><font face="Times New Roman, Times, serif" size="3">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Registration Procedures; Company's Obligations</u>.</font> </p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">In
    connection with the registration of the Registrable Securities, the Company
    shall:</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Prepare and file with the Commission a Registration Statement
    on Form S-3 (or if the Company is not then eligible to register for resale
    the Registrable Securities on Form S-3 such registration shall be on another
    appropriate form in accordance with the Securities Act and the Rules promulgated
    thereunder) in accordance with the method or methods of distribution thereof
    as specified herein, and use its commercially reasonable efforts to cause
    the Registration Statement to become effective on or before the Effectiveness
    Date and remain effective as provided herein; <u>provided</u>, <u>however</u>,
    that not less than three (3) Business Days prior to the filing of the Registration
    Statement or any related Prospectus or any amendment or supplement thereto
    (including any document that would be incorporated therein by reference),
    the Company shall furnish to the Special Counsel copies of all such documents
    proposed to be filed, which documents (other than those incorporated by reference)
    will be subject to the timely review of and comment by such Special Counsel.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Use its commercially reasonable efforts to (i) prepare and file
    with the Commission such amendments, including post-effective amendments,
    to the Registration Statement as may be necessary to keep the Registration
    Statement continuously effective as to the applicable Registrable Securities
    for the Effectiveness Period in order to register for resale under the Securities
    Act all of the Registrable Securities; (ii) cause the related Prospectus to
    be amended or supplemented by any required Prospectus supplement, and as so
    supplemented or amended to be filed pursuant to Rule 424 (or any similar provisions
    then in force) promulgated under the Securities Act; (iii) respond promptly
    to any comments received from the Commission with respect to the Registration
    Statement or any amendment thereto and promptly provide the Special Counsel
    with true and complete copies of all correspondence from and to the Commission
    relating to the Registration Statement; and (iv) comply in all material respects
    with the provisions of the Securities Act and the Exchange Act with respect
    to the disposition of all Registrable Securities covered by the Registration
    Statement during the Effectiveness Period in accordance with the intended
    methods of disposition set forth in the Registration Statement as so amended
    or in such Prospectus as so supplemented.</font></p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
    4 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3"><br>
    (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Promptly notify the Special Counsel (and, in the case of (i)(C) below, no
    later than the first Business Day following the date on which the Registration
    Statement becomes effective) and (only if requested by such Special Counsel)
    confirm such notice in writing no later than three (3) Business Days following
    the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
    amendment to the Registration Statement is proposed to be filed, (B) when
    the Commission notifies the Company whether there will be a &quot;review&quot;
    of such Registration Statement and whenever the Commission comments in writing
    on such Registration Statement, and (C) with respect to the Registration Statement
    or any post-effective amendment, when the same has become effective; (ii)
    of any request by the Commission or any other Federal or state governmental
    authority for amendments or supplements to the Registration Statement or Prospectus
    or for additional information; (iii) of the issuance by the Commission of
    any stop order suspending the effectiveness of the Registration Statement
    covering any or all of the Registrable Securities or the initiation of any
    Proceedings for that purpose; (iv) of the receipt by the Company of any notification
    with respect to the suspension of the qualification or exemption from qualification
    of any of the Registrable Securities for sale in any jurisdiction, or the
    initiation or threatening of any Proceeding for such purpose; and (v) of the
    occurrence of any event that makes any statement made in the Registration
    Statement or Prospectus or any document incorporated or deemed to be incorporated
    therein by reference untrue in any material respect or that requires any revisions
    to the Registration Statement, Prospectus or other documents so that, in the
    case of the Registration Statement or the Prospectus, as the case may be,
    it will not contain any untrue statement of a material fact or omit to state
    any material fact required to be stated therein or necessary to make the statements
    therein, in the light of the circumstances under which they were made, not
    misleading.</font></p>
  <p class=MsoBodyText>The Company shall promptly furnish to the Special Counsel,
    without charge, (i) any correspondence from the Commission or the Commission's
    staff to the Company or its representatives relating to any Registration Statement,
    and (ii) promptly after the same is prepared and filed with the Commission,
    a copy of any written response to the correspondence received from the Commission.</p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3"> (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Use</font> its commercially reasonable efforts to avoid the
    issuance of, or, if issued, obtain the withdrawal of, (i) any order suspending
    the effectiveness of the Registration Statement, or (ii) any suspension of
    the qualification (or exemption from qualification) of any of the Registrable
    Securities for sale in any U.S. jurisdiction, at the earliest practicable
    moment.</p>
  <p class=MsoBodyText align="center"><font face="Times New Roman, Times, serif" size="3"><br>
    5 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText style="TEXT-INDENT: 1.5in"><br>
    (e) <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font>If requested by the Special Counsel, (i) promptly incorporate
    in a Prospectus supplement or post-effective amendment to the Registration
    Statement such information as the Company reasonably agrees should be included
    therein, and (ii) make all required filings of such Prospectus supplement
    or such post-effective amendment as soon as practicable after the Company
    has received notification of the matters to be incorporated in such Prospectus
    supplement or post-effective amendment.<br>
    <br>
    (f) <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font>Furnish to the Holder and any Special Counsel, without
    charge, at least one conformed copy of each Registration Statement and each
    amendment thereto, including financial statements and schedules, all documents
    incorporated or deemed to be incorporated therein by reference, and all exhibits
    to the extent requested by such Holder or Special Counsel (including those
    incorporated by reference, but excluding those previously furnished) promptly
    after the filing of such documents with the Commission.<br>
    <br>
    (g) <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font>Promptly deliver to the Holder and any Special Counsel,
    without charge, as many copies of the Registration Statement, Prospectus or
    Prospectuses (including each form of prospectus) and each amendment or supplement
    thereto as such Persons may reasonably request.<br>
    <br>
    (h) <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font>Prior to any public offering of Registrable Securities,
    use its commercially reasonable efforts to register or qualify or cooperate
    with the selling Holder and any Special Counsel in connection with the registration
    or qualification (or exemption from such registration or qualification) of
    such Registrable Securities for offer and sale under the securities or Blue
    Sky laws of such jurisdictions within the United States as the Holder reasonably
    requests in writing, to keep each such registration or qualification (or exemption
    therefrom) effective during the Effectiveness Period and to do any and all
    other acts or things necessary or advisable to enable the disposition in such
    jurisdictions of the Registrable Securities covered by a Registration Statement;
    provided, however, that the Company shall not be required to qualify generally
    to do business in any jurisdiction where it is not then so qualified or to
    take any action that would subject it to general service of process in any
    such jurisdiction where it is not then so subject or subject the Company to
    any tax in any such jurisdiction where it is not then so subject.<br>
    <br>
    (i) <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font>Cooperate with the Holder to facilitate the timely preparation and
    delivery of certificates representing Registrable Securities to be sold pursuant
    to a Registration Statement and to enable such Registrable Securities to be
    in such denominations and registered in such names as the Holder may request
    to the Company's transfer agent at least two (2) Business Days prior to any
    sale of Registrable Securities.<br>
    <br>
    (j) <font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font>Upon the occurrence of any event contemplated by Section
    3(c)(v), promptly prepare a supplement or amendment, including a post-effective
    amendment, to the Registration Statement or a supplement to the related Prospectus
    or any document incorporated or deemed to be incorporated therein by reference,
    and file any other required document so that, as thereafter delivered, neither
    the Registration Statement nor such Prospectus will contain an untrue statement
    of a material fact or omit to state a material fact required to be stated
    therein or necessary to make the statements therein, in the light of the circumstances
    under which they were made, not misleading.</p>
  <p class=MsoBodyText style="TEXT-INDENT: 1.5in">&nbsp;</p>
  <p class=MsoBodyText style="TEXT-INDENT: 1.5in" align="center"><font size="3" face="Times New Roman, Times, serif"><br>
    6<br>
    </font></p>
  <hr>
  <p class=MsoBodyText style="TEXT-INDENT: 1.5in"><font face="Times New Roman, Times, serif" size="3"><br>
    (k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Use its commercially reasonable efforts to cause all Registrable
    Securities relating to such Registration Statement to be quoted on any securities
    exchange, quotation system, market or over&#8209;the&#8209;counter bulletin
    board on which the same securities issued by the Company are then listed.&nbsp;<br>
    <br>
    </font><font face="Times New Roman, Times, serif" size="3">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Use its commercially reasonable efforts to comply in all material
    respects with all applicable rules and regulations of the Commission and make
    generally available to its security holders earning statements satisfying
    the provisions of Section 11(a) of the Securities Act and Rule 158 not later
    than ninety (90) days after the end of any twelve (12) month period commencing
    on the first day of the first fiscal quarter of the Company after the effective
    date of the Registration Statement, which statement shall conform to the requirements
    of Rule 158.<br>
    <br>
    </font><font face="Times New Roman, Times, serif" size="3">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    If, in the good faith judgment of the Board of Directors of the Company (the
    &quot;<u>Board</u>&quot;) and reflected in a formal resolution of the Board,
    the continued effectiveness of the Registration Statement covering the Registrable
    Securities would be detrimental to the Company, and the Board concludes, as
    a result, that it is in the best interests of the Company to suspend the effectiveness
    of such Registration Statement at such time, then the Company may suspend
    effectiveness of the Registration Statement and suspend the sale of Registrable
    Securities under the Registration Statement; <u>provided</u>, <u>however</u>,
    that the Company may not suspend effectiveness of the Registration Statement
    or suspend the sale of Registrable Securities thereunder for more than sixty
    (60) days in the aggregate in any twelve (12) month period or for more than
    thirty (30) consecutive days.<br>
    <br>
    </font><font face="Times New Roman, Times, serif" size="3">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Within two (2) Business Days of the Effectiveness Date, the
    Company shall deliver, or shall cause its legal counsel for the Company to
    deliver, to the transfer agent for such Registrable Securities (with copies
    to the Special Counsel) confirmation that the Registration Statement has been
    declared effective by the Commission in the form attached hereto as <u>Exhibit
    C</u>.<br>
    <br>
    </font><font face="Times New Roman, Times, serif" size="3">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Registration Procedures; Holder's Obligations</u></font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 1.5in"><font face="Times New Roman, Times, serif" size="3">In
    connection with the registration of the Registrable Securities, the Holder
    shall:</font><font face="Times New Roman, Times, serif" size="3"><br>
    <br>
    </font><font face="Times New Roman, Times, serif" size="3">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;(i) not sell any
    Registrable Securities under the Registration Statement until it has received
    copies of the Prospectus as then amended or supplemented as contemplated by
    Section 3(g) and notice from the Company to the Special Counsel that such
    Registration Statement and any post-effective amendments thereto have become
    effective as contemplated by Section 3(c), (ii) comply with the prospectus
    delivery requirements of the Securities Act as applicable to it in connection
    with sales of Registrable Securities pursuant to the Registration Statement,
    and (iii) furnish to the Company information regarding such Holder and the
    distribution of such Registrable Securities as is required by law to be disclosed
    in the Registration Statement, and the Company may exclude from such registration
    the Registrable Securities of the Holder if it fails to furnish such information
    within a reasonable time prior to the filing of each Registration Statement,
    supplemented Prospectus and/or amended Registration Statement.</font></p>
  <p class=MsoBodyText>&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">7 <br>
    </font></p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    upon receipt of a notice from the Company of the occurrence of any event of
    the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or 3(m),
    forthwith discontinue disposition of such Registrable Securities under the
    Registration Statement until the Holder's receipt of the copies of the supplemented
    Prospectus and/or amended Registration Statement contemplated by Section 3(j),
    or, with respect to the suspension of effectiveness of a Registration Statement
    under Section 3(m), until it is advised in writing by the Company that the
    use of the applicable Prospectus may be resumed, and, in either case, has
    received copies of any additional or supplemental filings that are incorporated
    or deemed to be incorporated by reference in such Prospectus or Registration
    Statement.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Registration Expenses</u></font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">All
    reasonable fees and expenses incident to the performance of or compliance
    with this Agreement by the Company shall be borne by the Company whether or
    not the Registration Statement is filed or becomes effective and whether or
    not any Registrable Securities are sold pursuant to the Registration Statement.&nbsp;
    The fees and expenses referred to in the foregoing sentence shall include,
    without limitation, the following: (i) all registration and filing fees (including,
    without limitation, fees and expenses (A) with respect to filings required
    to be made with each securities exchange or other market on which Registrable
    Securities are listed, (B) with respect to filings required to be made with
    the Commission, and (C) in compliance with state securities or Blue Sky laws);
    (ii) printing expenses (including, without limitation, expenses of printing
    certificates for Registrable Securities and of printing prospectuses, if the
    printing of prospectuses is requested by the holders of a majority of the
    Registrable Securities included in the Registration Statement); (iii) messenger,
    telephone and delivery expenses; (iv) fees and disbursements of counsel for
    the Company; and (v) fees and expenses of all other Persons retained by the
    Company in connection with the consummation of the transactions contemplated
    by this Agreement, including, without limitation, the Company's independent
    public accountants (including the expenses of any comfort letters or costs
    associated with the delivery by independent public accountants of a comfort
    letter or comfort letters).&nbsp; In addition, the Company shall be responsible
    for all of its internal expenses incurred in connection with the consummation
    of the transactions contemplated by this Agreement (including, without limitation,
    all salaries and expenses of its officers and employees performing legal or
    accounting duties), the expense of any annual audit, and the fees and expenses
    incurred in connection with the listing of the Registrable Securities on any
    securities exchange as required hereunder. The Company shall not be responsible
    for the payment of any commissions or other expenses incurred by the Holder
    in connection with their sales of Registrable Securities or for the fees of
    any Special Counsel.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Indemnification</u></font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Indemnification by the Company</u>. To the extent permitted by law, the
    Company shall, notwithstanding any termination of this Agreement, indemnify
    and hold harmless each Holder, each of its officers, directors, legal counsel,
    and accountants, each Person who controls any such Holder (within the meaning
    of Section 15 of the Securities Act or Section 20 of the Exchange Act) and
    the officers, directors, agents and employees of each such controlling Person,
    and the respective successors, assigns, estate and personal representatives
    of each of the foregoing, to the fullest extent permitted by applicable law,
    from and against any and all claims, losses, damages, liabilities, penalties,
    judgments, costs (including, without limitation, costs of investigation) and
    expenses (including, without limitation, reasonable attorneys' fees and expenses)
    (collectively, &quot;<u>Losses</u>&quot;), as incurred, arising out of or
    relating to any untrue or alleged untrue statement of a material fact contained
    in the Registration Statement, any Prospectus, as supplemented or amended,
    if applicable, or arising out of or relating to any omission or alleged omission
    of a material fact required to be stated therein or necessary to make the
    statements therein (in the case of any Prospectus or form of prospectus or
    supplement thereto, in the light of the circumstances under which they were
    made) not misleading, except (i) to the extent that such untrue statements
    or omissions are based upon information regarding the Holder furnished in
    writing to the Company by the Holder, or its officers, directors, legal counsel,
    or accountants, or each person controlling such Holder, which information
    was reviewed and expressly approved by the Holder or Special Counsel expressly
    for use in the Registration Statement, such Prospectus or such form of Prospectus
    or in any amendment or supplement thereto, (ii) as a result of the failure
    of the Holder to deliver a Prospectus, as amended or supplemented, to a purchaser
    in connection with an offer or sale (provided that copies of the Prospectus,
    as amended or supplemented, have been made available, as required by this
    Agreement, to the Holder by the Company for delivery to such purchaser), or
    (iii) for amounts paid in settlement of any such Loss if such settlement is
    effected without the consent of the Company (which consent shall not be unreasonably
    withheld, conditioned or delayed). Each party shall notify the other promptly
    of the institution, threat or assertion of any Proceeding of which it is aware
    in connection with the transactions contemplated by this Agreement. Such indemnity
    shall remain in full force and effect regardless of any investigation made
    by or on behalf of an Indemnified Party (as defined in Section 6(c) hereof)
    and shall survive the transfer of the Registrable Securities by the Holder.</font></p>
  <p class=MsoBodyText>&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">8 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3"><br>
    (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Indemnification by Purchaser</u>. Each Holder shall, severally
    and not jointly, indemnify and hold harmless the Company, its directors, officers,
    agents and employees, each Person who controls the Company (within the meaning
    of Section 15 of the Securities Act , and the directors, officers, agents
    or employees of such controlling Persons, and the respective successors, assigns,
    estate and personal representatives of each of the foregoing, to the fullest
    extent permitted by applicable law, from and against any and all Losses, as
    incurred, arising out of or relating to any untrue or alleged untrue statement
    of a material fact contained in the Registration Statement, any Prospectus,
    as supplemented or amended, if applicable, or arising out of or relating to
    any omission or alleged omission of a material fact required to be stated
    therein or necessary to make the statements therein (in the case of any Prospectus
    or form of prospectus or supplement thereto, in the light of the circumstances
    under which they were made) not misleading, to the extent that (i) such untrue
    statement or omission is contained in or omitted from any information furnished
    in writing by the Holder or the Special Counsel to the Company for inclusion
    in the Registration Statement or such Prospectus, and (ii) such information
    was reasonably relied upon by the Company for use in the Registration Statement,
    such Prospectus or such form of prospectus. Notwithstanding anything to the
    contrary contained herein, the Holder shall be liable under this Section 6(b)
    for only that amount as does not exceed the gross proceeds to the Holder as
    a result of the sale of Registrable Securities pursuant to such Registration
    Statement.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be
    brought or asserted against any Person entitled to indemnity pursuant to Section
    6(a) or 6(b) hereunder (an &quot;<u>Indemnified Party</u>&quot;), such Indemnified
    Party promptly shall notify the Person from whom indemnity is sought (the
    &quot;<u>Indemnifying Party&quot;</u>) in writing, and the Indemnifying Party
    shall assume the defense thereof, including the employment of counsel reasonably
    satisfactory to the Indemnified Party and the payment of all fees and expenses
    incurred in connection with defense thereof; <u>provided</u>, that the failure
    of any Indemnified Party to give such notice shall not relieve the Indemnifying
    Party of its obligations or liabilities pursuant to this Agreement, except
    to the extent that such failure shall have materially and adversely prejudiced
    the Indemnifying Party.</font></p>
  <p class=MsoBodyText>&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">9 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3"><br>
    An Indemnified Party shall have the right to employ separate counsel in any
    such Proceeding and to participate in the defense thereof, but the fees and
    expenses of such counsel shall be at the expense of such Indemnified Party
    or Parties unless: (i) the Indemnifying Party has agreed in writing to pay
    such fees and expenses; or (ii) the Indemnifying Party shall have failed promptly
    to assume the defense of such Proceeding and to employ counsel reasonably
    satisfactory to such Indemnified Party in any such Proceeding; or (iii) the
    named parties to any such Proceeding (including any impleaded parties) include
    both such Indemnified Party and the Indemnifying Party, and such Indemnified
    Party shall have been advised by counsel that a conflict of interest is likely
    to exist if the same counsel were to represent such Indemnified Party and
    the Indemnifying Party (in which case, if such Indemnified Party notifies
    the Indemnifying Party in writing that it elects to employ separate counsel
    at the expense of the Indemnifying Party, the Indemnifying Party shall not
    have the right to assume the defense thereof and such counsel shall be at
    the expense of the Indemnifying Party).&nbsp; The Indemnifying Party shall not be liable
    for any settlement of any such Proceeding effected without its written consent,
    which consent shall not be unreasonably withheld, conditioned or delayed.&nbsp;
    No Indemnifying Party shall, without the prior written consent of the
    Indemnified Party, which consent shall not unreasonably be withheld, conditioned
    or delayed, effect any settlement of any pending Proceeding in respect of
    which any Indemnified Party is a party, unless such settlement includes an
    unconditional release of such Indemnified Party from all liability on claims
    that are the subject matter of such Proceeding.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">All
    reasonable fees and expenses of the Indemnified Party (including reasonable
    fees and expenses to the extent incurred in connection with investigating
    or preparing to defend such Proceeding in a manner not inconsistent with this
    Section 6(c)) shall be paid to the Indemnified Party, as incurred, within
    ten (10) Business Days of written notice thereof to the Indemnifying Party<b style="mso-bidi-font-weight: normal">
    </b><u>provided</u>, that the Indemnifying Party may require such Indemnified
    Party to undertake to reimburse all such fees and expenses to the extent it
    is finally judicially determined that such Indemnified Party is not entitled
    to indemnification hereunder or pursuant to applicable law.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Contribution</u>. If a claim for indemnification under Section
    6(a) or 6(b) is unavailable to an Indemnified Party because of a failure or
    refusal of a governmental authority to enforce such indemnification in accordance
    with its terms (by reason of public policy or otherwise), then each Indemnifying
    Party, in lieu of indemnifying such Indemnified Party, shall contribute to
    the amount paid or payable by such Indemnified Party as a result of such Losses,
    in such proportion as is appropriate to reflect the relative fault of the
    Indemnifying Party and Indemnified Party in connection with the actions, statements
    or omissions that resulted in such Losses as well as any other relevant equitable
    considerations. The relative fault of such Indemnifying Party and Indemnified
    Party shall be determined by reference to, among other things, whether any
    action in question, including any untrue or alleged untrue statement of a
    material fact or omission or alleged omission of a material fact, has been
    taken or made by, or relates to information supplied by, such Indemnifying
    Party or Indemnified Party, and the parties' relative intent, knowledge, access
    to information and opportunity to correct or prevent such action, statement
    or omission. The amount paid or payable by a party as a result of any Losses
    shall be deemed to include, subject to the limitations set forth in Section
    6(c), any reasonable attorneys' or other reasonable fees or expenses incurred
    by such party in connection with any Proceeding to the extent such party would
    have been indemnified for such fees or expenses if the indemnification provided
    for under Section 6(a) or 6(b) was available to such party in accordance with
    its terms. Notwithstanding anything to the contrary contained herein, the
    Holder shall be liable or required to contribute under this Section 6(d) for
    only that amount as does not exceed the gross proceeds to the Holder as a
    result of the sale of Registrable Securities pursuant to the Registration
    Statement.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 1.5in">&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">10 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText style="TEXT-INDENT: 1.5in"><font face="Times New Roman, Times, serif" size="3"><br>
    The parties hereto agree that it would not be just and equitable if contribution
    pursuant to this Section 6(d) were determined by pro rata allocation or by
    any other method of allocation that does not take into account the equitable
    considerations referred to in the immediately preceding paragraph.&nbsp;
    No Person guilty of fraudulent misrepresentation (within the meaning
    of Section 11(f) of the Securities Act) shall be entitled to contribution
    from any Person who was not guilty of such fraudulent misrepresentation.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">The
    indemnity and contribution agreements contained in this Section 6(d) are in
    addition to any liability that the Indemnifying Parties may have to the Indemnified
    Parties.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Rule 144</u>.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">As
    long as the Holder owns Registrable Securities, the Company covenants to use
    its commercially reasonable efforts to timely file (or obtain extensions in
    respect thereof and file within the applicable grace period) all reports required
    to be filed by the Company after the date hereof pursuant to Section 13(a)
    or 15(d) of the Exchange Act for so long as the Company is subject to such
    reporting requirements. As long as the Holder owns Registrable Securities,
    if the Company is not required to file reports pursuant to Section 13(a) or
    15(d) of the Exchange Act, it will use its commercially reasonable efforts
    to prepare and furnish to the Holder, and make publicly available in accordance
    with Rule 144(c) promulgated under the Securities Act, annual and quarterly
    financial statements, together with a discussion and analysis of such financial
    statements in form and substance substantially similar to those that would
    otherwise be required to be included in reports required by Section 13(a)
    or 15(d) of the Exchange Act, as well as any other information required thereby,
    in the time period that such filings would have been required to have been
    made under the Exchange Act. The Company further covenants to use its commercially
    reasonable efforts to take such further action as the Holder may reasonably
    request, all to the extent required from time to time to enable the Holder
    to sell Common Shares and Warrant Shares without registration under the Securities
    Act within the limitation of the exemptions provided by Rule 144 promulgated
    under the Securities Act. Upon the request of any Holder, the Company shall
    deliver to such Holder a written certification of a duly authorized officer
    as to whether it has complied with such requirements.&nbsp;</font></p>
  <p class=MsoBodyText>&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">11 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3"><br>
    8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Miscellaneous</u>.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Remedies</u>. Except as set forth in Section 8(b) hereof,
    the remedies provided in this Agreement are cumulative and not exclusive of
    any remedies provided by law, and in the event of a breach by the Company
    or by the Holder of any of their obligations under this Agreement, the Holder
    or the Company, as the case may be, in addition to being entitled to exercise
    all rights granted by law and under this Agreement, including recovery of
    damages, will be entitled to specific performance of its rights under this<b
style="mso-bidi-font-weight: normal"> </b>Agreement.&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Failure of Registration Statement to Become Effective</u>. The Company
    and the Holder agree that the Holder will suffer damages if the Registration
    Statement is not declared effective by the Commission on or prior to the date
    that is ninety (90) days following the Closing Date (the &quot;<u>Required
    Effective Date</u>&quot;).&nbsp; In the event the Registration Statement is
    not declared effective by the Commission on or prior to the Required Effective
    Date, then the exercise price of the Warrants then in effect shall be reduced
    by two percent (2%) of the original exercise price of the Warrants (as adjusted
    in accordance with the terms of the Warrants) for each full month after the
    Required Effective Date that the Registration Statement has failed to become
    effective, up to a maximum reduction of six percent (6%) of the original exercise
    price (as adjusted in accordance with the terms of the Warrants).&nbsp; The
    foregoing reduction in the exercise price of the Warrants is the sole and
    exclusive recourse and remedy for any failure of the Registration Statement
    to be declared effective on or prior to the Required Effective Date.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Consent to Jurisdiction</u>. The Company and each Purchaser
    (i) hereby irrevocably submit to the exclusive jurisdiction of the United
    States District Court for the Northern District of California and the courts
    of the State of California located in Alameda County for the purposes of any
    suit, action or proceeding arising out of or relating to this Agreement or
    the Purchase Agreement, and (ii) hereby waive, and agree not to assert in
    any such suit, action or proceeding, any claim that it is not personally subject
    to the jurisdiction of such court, that the suit, action or proceeding is
    brought in an inconvenient forum or that the venue of the suit, action or
    proceeding is improper. The Company and each Purchaser consent to process
    being served in any such suit, action or proceeding by mailing a copy thereof
    to such party at the address in effect for notices to it under this Agreement
    and agrees that such service shall constitute good and sufficient service
    of process and notice thereof.&nbsp; Nothing
    in this Section 8(c) shall affect or limit any right to serve process in any
    other manner permitted by law.</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Amendments and Waivers</u>. The provisions of this Agreement,
    including the provisions of this sentence, may not be amended, modified or
    supplemented, and waivers or consents to departures from the provisions hereof
    may not be given, unless the same shall be in writing and signed by the Company
    and the Holders holding a majority of the Registrable Securities (excluding
    any of such shares that have been sold to the public or pursuant to Rule 144);
    provided, however, that if any amendment, modification, or supplement operates
    in a manner that treats any Holder different from other Holders, the consent
    of such Holder shall also be required for such amendment, modification or
    supplement. Any such amendment, modification, or supplement effected in accordance
    with this paragraph shall be binding upon each Holder and each future holder
    of all such securities of Holder. Each Holder acknowledges that by the operation
    of this paragraph, the holders of a majority of the Registrable Securities
    (excluding any of such shares that have been sold to the public or pursuant
    to Rule 144) will have the right and power to diminish or eliminate all rights
    of such Holder under this Agreement.</font></p>
  <p align="center">&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">12 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3"><br>
    (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Notices</u>. Any notice, demand, request, waiver or other
    communication required or permitted to be given hereunder shall be in writing
    and shall be effective (a) upon hand delivery if delivered in person or upon
    transmission if sent by telecopy or facsimile at the address or number designated
    below (if delivered on a business day during normal business hours where such
    notice is to be received), or the first business day following such delivery
    (if delivered other than on a business day during normal business hours where
    such notice is to be received), or (b) on the second business day following
    the date of mailing by express courier service, fully prepaid, addressed to
    such address, or upon actual receipt of such mailing, whichever shall first
    occur.&nbsp; The addresses for such
    communications shall be:</font></p>
</div>
<blockquote>
  <blockquote>
    <blockquote>
      <div class=Section1>
        <p><font face="Times New Roman, Times, serif" size="3">(x) if to the Company:<br>
          </font></p>
      </div>
      <blockquote>
        <div class=Section1><font face="Times New Roman, Times, serif" size="3">Socket
          Mobile, Inc.<br>
          39700 Eureka Drive<br>
          Newark, California 94560<br>
          Attention: David W. Dunlap, Chief Financial Officer<br>
          Telecopier: (510) 933-3104<br>
          Telephone: (510) 933-3000 </font></div>
        <div class=Section1>
          <p><font face="Times New Roman, Times, serif" size="3"><br>
            with a copy to:<br>
            <br>
            Wilson Sonsini Goodrich &amp; Rosati, P.C.<br>
            650 Page Mill Road<br>
            Palo Alto, California 94304<br>
            Attention: Herbert Fockler, Esq.<br>
            Telephone No.: (650) 493-9300<br>
            Facsimile No.: (650) 493-6811<br>
            </font></p>
        </div>
      </blockquote>
      <div class=Section1><font face="Times New Roman, Times, serif" size="3">(y)
        if to any Holder:<br>
        <br>
        At the address of such Holder set forth on <u>Exhibit A</u> to this Agreement.
        </font></div>
      <blockquote>
        <div class=Section1></div>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<div class=Section1>
  <p class=MsoNormal
style="MARGIN-LEFT: 1.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; mso-pagination: widow-orphan lines-together; tab-stops: .5in 1.0in 1.5in 135.0pt 2.5in"><font face="Times New Roman, Times, serif" size="3">&nbsp;or
    to such other address or addresses or facsimile number or numbers as any such
    party may most recently have designated in writing to the other parties hereto
    by such notice.&nbsp;</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Successors and Assigns</u>. Subject to Section 8(g), this
    Agreement shall be binding upon and inure to the benefit of the parties and
    their successors and permitted assigns and shall inure to the benefit of their
    successors and assigns.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Assignment of Registration Rights</u>. The rights of the
    Holder hereunder, including the right to have the Company register for resale
    Registrable Securities in accordance with the terms of this Agreement, shall
    be assignable by each Holder to any transferee of the Holder of all or a portion<b style="mso-bidi-font-weight: normal">
    </b>of the shares of Registrable Securities if: (i) the Holder agrees in writing
    with the transferee or assignee to assign such rights, and a copy of such
    agreement is furnished to the Company within a reasonable time after such
    assignment; (ii) the Company is, within a reasonable time after such transfer
    or assignment, furnished with written notice of (A) the name and address of
    such transferee or assignee, and (B) the securities with respect to which
    such registration rights are being transferred or assigned; (iii) following
    such transfer or assignment the further disposition of such securities by
    the transferee or assignees is restricted under the Securities Act and applicable
    state securities laws; (iv) at or before the time the Company receives the
    written notice contemplated by clause (ii) of this Section 8(g), the transferee
    or assignee agrees in writing with the Company to be bound by all of the provisions
    of this Agreement; and (v) such transfer shall have been made in accordance
    with the applicable requirements of the Purchase Agreement and shall be for
    no less than 20% of the Registrable Securities.&nbsp; The rights to assignment shall apply to
    the Holder (and to subsequent) successors and assigns. In the event of an
    assignment pursuant to this Section 8(g), if requested by the Company, the
    Holder shall pay all incremental costs and expenses incurred by the Company
    in connection with filing a Registration Statement (or an amendment to the
    Registration Statement) to register the shares of Registrable Securities assigned
    to any assignee or transferee of the Holder.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">13 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3"><br>
    (h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Counterparts</u>. This Agreement may be executed in any number
    of counterparts, each of which when so executed shall be deemed to be an original,
    and all of which taken together shall constitute one and the same Agreement.&nbsp;
    In the event that any signature is delivered by facsimile transmission,
    such signature shall create a valid binding obligation of the party executing
    (or on whose behalf such signature is executed) the same with the same force
    and effect as if such facsimile signature were the original thereof.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Governing Law</u>. This Agreement shall be governed by and
    construed in accordance with the laws of the State of California, without
    regard to principles of conflicts of law thereof. This Agreement shall not
    be interpreted or construed with any presumption against the party causing
    this Agreement to be drafted.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Termination</u>. This Agreement shall terminate on the earlier
    of the date when the Effectiveness Period expires and the date on which all
    remaining Registrable Securities may be sold without restriction pursuant
    to Rule 144 of the Securities Act.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Severability</u>. If any term, provision, covenant or restriction
    of this Agreement is held to be invalid, illegal, void or unenforceable in
    any respect, the remainder of the terms, provisions, covenants and restrictions
    set forth herein shall remain in full force and effect and shall in no way
    be affected, impaired or invalidated, and the parties hereto shall use their
    reasonable efforts to find and employ an alternative means to achieve the
    same or substantially the same result as that contemplated by such term, provision,
    covenant or restriction.&nbsp; It is
    hereby stipulated and declared<b
style="mso-bidi-font-weight: normal"> </b>to be the intention of the parties that
    they would have executed the remaining terms, provisions, covenants and restrictions
    without including any of such that may be hereafter declared invalid, illegal,
    void or unenforceable.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <u>Headings</u>.&nbsp; The
    headings herein are for convenience only, do not constitute a part of this
    Agreement and shall not be deemed to limit or affect any of the provisions
    hereof.</font></p>
  <p align="center">&nbsp;</p>
  <p align="center"><font size="3" face="Times New Roman, Times, serif">14 <br>
    </font></p>
  <hr>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3"><br>
    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
    executed by their respective authorized persons as of the date first indicated
    above.</font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
</div>
<blockquote><blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <div class=Section2>
                                <table cols=2 width="89%" align="left">

                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td><b>SOCKET MOBILE, INC.</b></td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">&nbsp;</td>
                                      <td>&nbsp;</td>
                                    </tr>
                                    <tr>
                                      <td width="10%">&nbsp;</td>
                                      <td width="10%">
                                        <center>
                                        </center>
                                      </td>
                                      <td>
                                        <div align=left>By:<u>
                                          &nbsp; /s/ David W. Dunlap&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                          </u></div></td></tr>


                                    <tr>
                                      <td width="10%" height="45">&nbsp;</td>
                                      <td width="10%" height="45">
                                        <center>
                                          <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                          </font>
                                        </center>
                                      </td>
                                      <td valign=top align=middle height="45">
                                        <div align=left><font face="Times New Roman, Times, serif" size="3">Name:
                                          David W. Dunlap<br>
                                          Title: Chief Financial Officer </font></div>
                                      </td>
                                    </tr>
                                  </table>
                                  <p>&nbsp;</p>
                                  <p>&nbsp;</p>
                                </div>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<div class=Section2>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=left>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=left>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=left>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=left><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">[Signatures of Purchasers to follow on next
    pages.]</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=left>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
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  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <hr>
  <p><font face="Times New Roman, Times, serif" size="3"><br>
    <br>
    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
    executed by their respective authorized persons as of the date first indicated
    above.</font> </p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
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                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="89%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>PURCHASER:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>Rogers Family Trust&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td valign=top align=middle height="21">&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ Roy L. Rogers&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">
                                            Name: Roy L. Rogers<br>
                                            Title: Trustee</font></div>
                                        </td>
                                      </tr>
                                    </table>
                                    <p>&nbsp;</p>
                                    <p>&nbsp;</p>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
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  <p>&nbsp;</p>
</div>
<blockquote>
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                            <p>&nbsp; </p>
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                                    <blockquote>
                                      <blockquote>
                                        <blockquote>
                                          <div class=Section2> </div>
                                        </blockquote>
                                      </blockquote>
                                    </blockquote>
                                  </blockquote>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
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<div class=Section2>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><br>
    <br
style="mso-special-character: line-break">
    </font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><br
style="mso-special-character: line-break">
    </font></p>
  <hr>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">IN
    WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
    executed by their respective authorized persons as of the date first indicated
    above.</font></p>
  <p></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
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                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="89%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>PURCHASER:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>Cardinal Value L.P.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td valign=top align=middle height="21">&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ James K. Smart&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">
                                            Name: James K. Smart<br>
                                            Title: Managing Member</font></div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
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                                <blockquote>&nbsp;</blockquote>
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                                  <div class=Section2>
                                    <p>&nbsp;</p>
                                    <p>&nbsp;</p>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
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          </blockquote>
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  </blockquote>
  <p class=MsoBodyText>"</p>
</div>
<div class=Section2>
  <p class=MsoBodyText>"</p>
  <p class=MsoBodyText>"</p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3"><br>
    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
    be duly executed by their respective authorized persons as of the date first
    indicated above.</font></p>
  <p></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
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                      <blockquote>
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                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="89%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>PURCHASER:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>Howard Miller IRA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td valign=top align=middle height="21">&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ Howard Miller&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">
                                            Name: Howard Miller<br>
                                            Title: Custodian</font></div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
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                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <p>&nbsp;</p>
                                    <p>&nbsp;</p>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
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              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p class=MsoBodyText>"</p>
</div>
<div class=Section2>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">IN
    WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
    executed by their respective authorized persons as of the date first indicated
    above.</font></p>
  <p></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="89%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>PURCHASER:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>Leviticus Partners
                                            L.P. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td valign=top align=middle height="21">&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ Adam M. Hutt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">
                                            Name: Adam M. Hutt<br>
                                            Title: Resident, AMH Equity LLC</font></div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
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  <blockquote>
    <blockquote>
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                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <p>&nbsp;</p>
                                    <p>&nbsp;</p>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p class=MsoBodyText>"</p>
</div>
<div class=Section2>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">IN
    WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
    executed by their respective authorized persons as of the date first indicated
    above.</font></p>
  <p></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="89%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>PURCHASER:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
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                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>Brian G. Swift IRA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td valign=top align=middle height="21">&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ Brian G. Swift&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">
                                            Name: Brian G. Swift<br>
                                            Title: Custodian</font></div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <p>&nbsp;</p>
                                    <p>&nbsp;</p>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p class=MsoBodyText>"</p>
</div>
<div class=Section2>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">IN
    WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
    executed by their respective authorized persons as of the date first indicated
    above.</font></p>
  <p></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="89%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>PURCHASER:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>The Bass Trust&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td valign=top align=middle height="21">&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ Charlie Bass&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">
                                            Name: Charlie Bass<br>
                                            Title: Trustee</font></div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <p>&nbsp;</p>
                                    <p>&nbsp;</p>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <p class=MsoBodyText>"</p>
</div>
<div class=Section2>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <hr>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">IN
    WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
    executed by their respective authorized persons as of the date first indicated
    above.</font></p>
  <p></p>
  <div class=Section1>
    <p class=MsoBodyText style="TEXT-INDENT: 0in">&nbsp;</p>
  </div>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <table cols=2 width="89%" align="left">
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td><b>PURCHASER:</b></td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">&nbsp;</td>
                                        <td>&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%">&nbsp;</td>
                                        <td width="10%">
                                          <center>
                                          </center>
                                        </td>
                                        <td>
                                          <div align=left><u>Kevin J. Mills&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td valign=top align=middle height="21">&nbsp;</td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td width="10%" height="21">&nbsp;</td>
                                        <td>
                                          <div align=left>By:<u>
                                            &nbsp; /s/ Kevin J. Mills&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                            </u> </div>
                                        </td>
                                      </tr>
                                      <tr>
                                        <td width="10%" height="45">&nbsp;</td>
                                        <td width="10%" height="45">
                                          <center>
                                            <font face="Times New Roman, Times, serif" size="3">&nbsp;
                                            </font>
                                          </center>
                                        </td>
                                        <td valign=top align=middle height="45">
                                          <div align=left><font face="Times New Roman, Times, serif" size="3">
                                            Name: Kevin J. Mills<br>
                                            Title: Individual </font></div>
                                        </td>
                                      </tr>
                                    </table>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <div class=Section2>
                                    <p>&nbsp;</p>
                                    <p>&nbsp;</p>
                                  </div>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</div>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <blockquote>
                                    <blockquote>
                                      <blockquote>
                                        <blockquote>&nbsp;</blockquote>
                                      </blockquote>
                                    </blockquote>
                                  </blockquote>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<div class=Section2><font face="Times New Roman, Times, serif" size="3"><br
style="PAGE-BREAK-BEFORE: always" clear=all>
   </font>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <hr>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center>&nbsp;</p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>EXHIBIT A</u></b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">PURCHASERS</b></font></p>
  <p class=cenhead style="MARGIN: 0in 0in 0pt"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>Non-Management Purchasers&nbsp;</u></b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u></u></b></font></p>
  <div align=center>
    <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>&nbsp;</u></b></font></p>
    <table width="60%" border="1" cellspacing="0" cellpadding="0" align="center">
      <tr>
        <td width="25%">
          <div align="left"><b><u>Name</u> </b></div>
        </td>
        <td width="20%">
          <div align="center"><b><u>Number of Shares</u></b></div>
        </td>
        <td width="20%">
          <p align="center"><b><u>Number of Warrants</u></b></p>
        </td>
        <td width="15%">
          <div align="center"><b><u>Price per Share</u></b></div>
        </td>
        <td width="25%">
          <div align="center"><b><u>Total Investment</u></b></div>
        </td>
      </tr>
      <tr valign="top">
        <td width="25%">Rogers Family Trust,<br>
          Roy Rogers Trustee</td>
        <td width="20%">
          <div align="center">140,000</div>
        </td>
        <td width="20%">
          <div align="center">28,000</div>
        </td>
        <td width="15%">
          <div align="center">$1.80</div>
        </td>
        <td width="25%">
          <div align="center">$252,000.00</div>
        </td>
      </tr>
      <tr valign="top">
        <td width="25%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="25%">&nbsp;</td>
      </tr>
      <tr valign="top">
        <td width="25%" height="31">
          <div align="left">Cardinal Value LLP</div>
        </td>
        <td width="20%" height="31">
          <div align="center">27,776</div>
        </td>
        <td width="20%" height="31">
          <p align="center">5,555</p>
        </td>
        <td width="15%" height="31">
          <div align="center">$1.80</div>
        </td>
        <td width="25%" height="31">
          <div align="center">$49,996.80</div>
        </td>
      </tr>
      <tr valign="top">
        <td width="25%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="25%">&nbsp;</td>
      </tr>
      <tr valign="top">
        <td width="25%">Howard Miller IRA</td>
        <td width="20%">
          <div align="center">16,800</div>
        </td>
        <td width="20%">
          <div align="center">3,360</div>
        </td>
        <td width="15%">
          <div align="center">$1.80</div>
        </td>
        <td width="25%">
          <div align="center">$30,240.00</div>
        </td>
      </tr>
      <tr valign="top">
        <td width="25%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="25%">&nbsp;</td>
      </tr>
      <tr valign="top">
        <td width="25%">Leviticus Partners, L.P.</td>
        <td width="20%">
          <div align="center">83,333</div>
        </td>
        <td width="20%">
          <div align="center">16,666</div>
        </td>
        <td width="15%">
          <div align="center">$1.80</div>
        </td>
        <td width="25%">
          <div align="center">$149,999.40</div>
        </td>
      </tr>
      <tr valign="top">
        <td width="25%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="25%">&nbsp;</td>
      </tr>
      <tr valign="top">
        <td width="25%">Brian G. Swift IRA</td>
        <td width="20%">
          <div align="center">38,877</div>
        </td>
        <td width="20%">
          <div align="center">7,775</div>
        </td>
        <td width="15%">
          <div align="center">$1.80</div>
        </td>
        <td width="25%">
          <div align="center">$69,978.60</div>
        </td>
      </tr>
    </table>
    <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></p>
    <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>Management Purchasers<br>
      <br>
      </u></b></font></p>
    <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u></u></b></font></p>
    <table width="60%" border="1" cellspacing="0" cellpadding="0" align="center">
      <tr>
        <td width="25%">
          <div align="left"><b><u>Name</u> </b></div>
        </td>
        <td width="20%">
          <div align="center"><b><u>Number of Shares</u></b></div>
        </td>
        <td width="25%">
          <p align="center"><b><u>Price per Share</u></b></p>
        </td>
        <td width="20%">
          <div align="center"><b><u>Total Investment</u></b></div>
        </td>
      </tr>
      <tr valign="top">
        <td width="25%">Kevin Mills</td>
        <td width="20%">
          <div align="center">200,000</div>
        </td>
        <td width="25%">
          <div align="center">$2.00</div>
        </td>
        <td width="20%">
          <div align="center">$400,000</div>
        </td>
      </tr>
      <tr valign="top">
        <td width="25%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
        <td width="25%">&nbsp;</td>
        <td width="20%">&nbsp;</td>
      </tr>
      <tr valign="top">
        <td width="25%" height="31">
          <div align="left">The Bass Trust,<br>
            Charlie Bass Trustee </div>
        </td>
        <td height="31">
          <div align="center">50,000</div>
        </td>
        <td height="31">
          <p align="center">$2.00</p>
        </td>
        <td height="31">
          <div align="center">$100,000</div>
        </td>
      </tr>
    </table>
    <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u></u></b></font></p>
    </div>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><u>&nbsp;</u></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><u>&nbsp;</u></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><u></u></font></p>
  <p class=MsoNormal><font face="Times New Roman, Times, serif" size="3"><u></u></font></p>
</div>
<font face="Times New Roman, Times, serif" size="3"><br
style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break"
clear=all>
</font>
<div class=Section3>
  <hr>
  <p class=cenhead style="MARGIN: 0in 0in 0pt">&nbsp;</p>
  <p class=cenhead style="MARGIN: 0in 0in 0pt" align="center"><font face="Times New Roman, Times, serif" size="3"><br>
    <b>EXHIBIT B</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal">PLAN OF DISTRIBUTION</b> </font></p>
  <p class=MsoBodyText2><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    We are registering shares of common stock and warrants on behalf of the selling
    stockholders. The common stock and the warrants may be sold in one or more
    transactions at fixed prices, at prevailing market prices at the time of sale,
    at prices related to the prevailing market prices, at varying prices determined
    at the time of sale, or at negotiated prices. These sales may be effected
    at various times in one or more of the following transactions, or in other
    kinds of transactions:<br>
    </font></p>
</div>
<ul>
  <li>
    <div class=Section3>transactions on the NASDAQ Stock Market or on any other
      national securities exchange or U.S. inter-dealer system of a registered
      national securities association on which our common stock and the warrants
      may be listed or quoted at the time of sale;&nbsp;</div>
  </li>
  <li>
    <div class=Section3> in the over-the-counter market;&nbsp; </div>
  </li>
  <li>
    <div class=Section3>in private transactions and transactions otherwise than
      on these exchanges or systems or in the over-the-counter market;&nbsp; </div>
  </li>
  <li>
    <div class=Section3>in connection with short sales of shares of our common
      stock;&nbsp; </div>
  </li>
  <li>
    <div class=Section3>by pledge to secure or in payment of debt and other obligations;&nbsp;
    </div>
  </li>
  <li>
    <div class=Section3>through the writing of options, whether the options are
      listed on an options exchange or otherwise;&nbsp; </div>
  </li>
  <li>
    <div class=Section3>in connection with the writing of non-traded and exchange-traded
      call options, in hedge transactions and in settlement of other transactions
      in standardized or over-the-counter options; or&nbsp; </div>
  </li>
  <li>
    <div class=Section3>through a combination of any of the above transactions.&nbsp;
    </div>
  </li>
</ul>
<div class=Section3>
  <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    The selling stockholders and their successors, including their transferees,
    pledgees or donees or their successors, may sell the common stock and the
    warrants directly to purchasers or through underwriters, broker-dealers or
    agents, who may receive compensation in the form of discounts, concessions
    or commissions from the selling stockholders or the purchasers. These discounts,
    concessions or commissions as to any particular underwriter, broker-dealer
    or agent may be in excess of those customary in the types of transactions
    involved. &nbsp;</font></p>
  <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    In addition, any securities covered by this prospectus which qualify for sale
    pursuant to Rule 144 of the Securities Act may be sold under Rule 144 rather
    than pursuant to this prospectus. &nbsp;<b style="mso-bidi-font-weight: normal"></b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal"></b></font></p>
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  <div align="center"><font face="Times New Roman, Times, serif" size="3">B-1</font>
    <font face="Times New Roman, Times, serif" size="3"><br>
    <br>
    </font></div>
  <hr>
  <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal"></b><br>
    We entered into a registration rights agreement for the benefit of the selling
    stockholders to register the common stock and the warrants under applicable
    federal and state securities laws. The registration rights agreement provides
    for cross-indemnification of the selling stockholders and us and our respective
    directors, officers and controlling persons against specific liabilities in
    connection with the offer and sale of the common stock and the warrants, including
    liabilities under the Securities Act. We will pay substantially all of the
    expenses incurred by the selling stockholders with respect to the registration
    of the offering and sale of the common stock and the warrants. <b style="mso-bidi-font-weight: normal">&nbsp;</b></font></p>
  <p class=MsoNormal style="TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="3"><b style="mso-bidi-font-weight: normal"></b></font></p>
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  <div align="center"><font face="Times New Roman, Times, serif" size="3">B-2</font>
    <font face="Times New Roman, Times, serif" size="3"><br>
    <br>
    </font></div>
  <hr>
</div>
<font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u><br
style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break"
clear=all>
</u></b> </font>
<div class=Section4>
  <p class=MsoNormal style="TEXT-ALIGN: center" align=center><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u><br>
    EXHIBIT C</u></b></font></p>
  <p class=cenhead align="center"><font face="Times New Roman, Times, serif" size="3"><b><br>
    FORM OF NOTICE OF EFFECTIVENESS<br>
    OF REGISTRATION STATEMENT</b></font></p>
  <p class=cenhead align="left"><font face="Times New Roman, Times, serif" size="3"><br>
    [Name and address of Transfer
    Agent]<br>
    _________________<br>
    _________________<br>
    _________________<br>
    Attn:&nbsp; ____________</font></p>
  <p class=cenhead align="center"><font face="Times New Roman, Times, serif" size="3"></font></p>
  <p class=MsoBodyText><font face="Times New Roman, Times, serif" size="3">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Socket
    Mobile, Inc.</u></font></p>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3">Ladies and Gentlemen:</font></p>
  <p class=MsoNormal
style="TEXT-INDENT: 0.5in; LINE-HEIGHT: 94%; TEXT-ALIGN: justify; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 274.5pt 4.5in"><font face="Times New Roman, Times, serif" size="3">We
    are counsel to Socket Mobile, Inc., a Delaware corporation (the &quot;<b
style="mso-bidi-font-weight: normal">Company</b>&quot;), and have represented
    the Company in connection with that certain Securities Purchase Agreement
    (the &quot;<b
style="mso-bidi-font-weight: normal">Purchase Agreement</b>&quot;), dated as of
    May 18, 2009, by and among the Company and the purchasers (the &quot;<b>Purchasers</b>&quot;
    and the &quot;<b>Holders</b>&quot;) named therein pursuant to which the Company
    issued to the Purchasers shares (the &quot;<b style="mso-bidi-font-weight: normal">Shares</b>&quot;)
    of its Common Stock, $0.001 par value. Pursuant to the Purchase Agreement,
    the Company has also entered into a Registration Rights Agreement with the
    Purchasers (the &quot;<b style="mso-bidi-font-weight: normal">Registration
    Rights Agreement</b>&quot;), dated as of May 18, 2009, pursuant to which the
    Company agreed, among other things, to register the Registrable Securities
    (as defined in the Registration Rights Agreement), including the Shares, under
    the Securities Act of 1933, as amended (the &quot;<b style="mso-bidi-font-weight: normal">1933
    Act</b>&quot;). In connection with the Company's obligations under the Registration
    Rights Agreement, on _________ __, 2009, the Company filed a Registration
    Statement on Form S-3 (File No. 333-________) (the &quot;<b
style="mso-bidi-font-weight: normal">Registration Statement</b>&quot;) with the
    Securities and Exchange Commission (the &quot;<b
style="mso-bidi-font-weight: normal">SEC</b>&quot;) relating to the resale of
    the Registrable Securities which names the Holders as selling stockholders
    thereunder.&nbsp;</font></p>
  <p class=MsoNormal
style="TEXT-INDENT: 0.5in; LINE-HEIGHT: 94%; TEXT-ALIGN: justify; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 274.5pt 4.5in"><font face="Times New Roman, Times, serif" size="3">In
    connection with the foregoing, we advise you that a member of the SEC's staff
    has advised us by telephone that the SEC has entered an order declaring the
    Registration Statement effective under the 1933 Act at <b
style="mso-bidi-font-weight: normal">[ENTER TIME OF EFFECTIVENESS]</b> on <b
style="mso-bidi-font-weight: normal">[ENTER DATE OF EFFECTIVENESS]</b> and we
    have no knowledge, after telephonic inquiry of a member of the SEC's staff,
    that any stop order suspending its effectiveness has been issued or that any
    proceedings for that purpose are pending before, or threatened by, the SEC
    and, accordingly, the Registrable Securities are available for resale under
    the 1933 Act in the manner specified in, and pursuant to the terms of, the
    Registration Statement.</font></p>
  <table cols=2 width="89%">

    <tr>
      <td width="10%">&nbsp;</td>
      <td width="10%">&nbsp;</td>
      <td width="41%">
        <div align="right">Very truly yours,</div>
      </td>
    </tr>
    <tr>
      <td width="10%" height="21">&nbsp;</td>
      <td width="10%" height="21">&nbsp;</td>
      <td valign=top align=middle width="41%" height="21">
        <div align="right"></div>
      </td>
    </tr>
    <tr>
      <td width="10%" height="21">&nbsp;</td>
      <td width="10%" height="21">&nbsp;</td>
      <td width="30%">
        <div align="right">By:<u> </u></div></td></tr>


  </table>
  <p class=MsoNormal
style="TEXT-INDENT: 0.5in; LINE-HEIGHT: 94%; TEXT-ALIGN: justify; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 274.5pt 4.5in">cc:
    [PURCHASERS]<font face="Times New Roman, Times, serif" size="3"></font></p>
  <p class=MsoNormal
style="TEXT-INDENT: 0.5in; LINE-HEIGHT: 94%; TEXT-ALIGN: justify; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 274.5pt 4.5in"><font face="Times New Roman, Times, serif" size="3"></font></p>
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</div>
<div class=Section4>
  <p class=MsoBodyText style="TEXT-INDENT: 0in"><font face="Times New Roman, Times, serif" size="3"><b
style="mso-bidi-font-weight: normal"><u>&nbsp;</u></b></font></p>
  <div align="center"><font face="Times New Roman, Times, serif" size="3">C-1</font>
    <font face="Times New Roman, Times, serif" size="3"><br>
    <br>
    </font></div>
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  <font face="Times New Roman, Times, serif" size="3">&nbsp;</font>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>ex1015.htm
<DESCRIPTION>EXHIBIT 10.15
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
  10.15</b></font></p>
<p>&nbsp;</p>
<p align="left"><font size="3" face="Times New Roman, Times, serif"><b>THE WARRANT
  REPRESENTED BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON ITS EXERCISE HAVE
  NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
  LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
  UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES
  LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE,
  REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION
  IS NOT REQUIRED.</b></font></p>
<p align="left"><font size="3" face="Times New Roman, Times, serif"><b>THE TRANSFER
  OF THIS WARRANT IS RESTRICTED AS DESCRIBED HEREIN.<br>
  <br>
  </b></font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  Socket Mobile, Inc.<br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"> Warrant
  for the Purchase of Shares of Common Stock,<br>
  par value $0.001 per Share</font></p>
<p align="left">&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="62%">No. W-____</td>
    <td width="38%">
      <div align="right">______ Shares</div>
    </td>
  </tr>
  <tr>
    <td width="62%">Issuance Date: May __, 2009 </td>
    <td width="38%">&nbsp;</td>
  </tr>
</table>
<font size="3" face="Times New Roman, Times, serif"><br>
</font>
<p align="left"><font size="3" face="Times New Roman, Times, serif">THIS CERTIFIES
  that, for value received, _____________, whose address is _________________________,
  or its registered assigns (the &quot;<u>Holder</u>&quot;), is entitled to subscribe
  for and purchase from Socket Mobile, Inc., a Delaware corporation (the &quot;<u>Company</u>&quot;),
  upon the terms and conditions set forth herein, ______ shares of the Company's
  Common Stock, par value $0.001 per share (&quot;<u>Common Stock</u>&quot;),
  at a price of $1.80 per share, subject to adjustment as provided herein (the
  &quot;<u>Exercise Price</u>&quot;). As used herein the term &quot;<u>this Warrant</u>&quot;
  shall mean and include this Warrant and any Common Stock or Warrants hereafter
  issued as a consequence of the exercise or transfer of this Warrant in whole
  or in part. This Warrant is being issued pursuant to that certain Securities
  Purchase Agreement by and among the Company, the Holder and certain other parties,
  dated as of May 18, 2009 (the &quot;<u>Purchase Agreement</u>&quot;).<br>
  <br>
  The number of shares of Common Stock issuable upon exercise of this Warrant
  (the &quot;<u>Warrant Shares</u>&quot;) and the Exercise Price may be adjusted
  from time to time as hereinafter set forth. The Warrant Shares are entitled
  to the benefits, and subject to the obligations, set forth in the Registration
  Rights Agreement, dated as of May 18, 2009, among the Company, the Holder and
  certain other parties (the &quot;<u>Registration Rights Agreement</u>&quot;).
  </font></p>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif">1. <u>Exercise Period</u>.
    This Warrant may be exercised at any time or from time to time during the
    period commencing on the Issuance Date and ending at 5:00 P.M. Pacific time
    on May __, 2014 (the &quot;<u>Exercise Period</u>&quot;). <br>
    <br>
    2. <u>Procedure for Exercise; Effect of Exercise</u>. </font></p>
  <p><font size="3" face="Times New Roman, Times, serif">(a) <u>Exercise</u>.
    This Warrant may be exercised, in whole or in part, by the Holder during normal
    business hours on any business day during the Exercise Period by (i) the delivery
    to the Company of a duly executed Notice of Exercise (in the form attached
    to this Agreement) specifying the number of Warrant Shares to be purchased,
    (ii) delivery of payment to the Company of the Exercise Price for the number
    of Warrant Shares specified in the Notice of Exercise by cash, wire transfer
    of immediately available funds to a bank account specified by the Company,
    or by certified or bank cashier's check (the &quot;<u>Aggregate Exercise Price</u>&quot;),
    and (iii) delivery to the Company of this Warrant (or an indemnification undertaking
    with respect to this Warrant in the case of its loss, theft or destruction).
    <b><br>
    </b><br>
    </font></p>
</blockquote>
<p align="center"><font size="3" face="Times New Roman, Times, serif">1<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    (b) <u>Effect of Exercise</u>. Upon receipt by the Company of a Notice of
    Exercise, together with proper payment of the Aggregate Exercise Price and
    this Warrant (or an indemnification undertaking), as provided in this Section
    2, such Warrant Shares shall be deemed to be issued to the Holder as of the
    close of business on such date on which the Notice of Exercise and this Warrant
    (or an indemnification undertaking) have been delivered and payment has been
    made for such Warrant Shares in accordance with this Warrant, and the Holder
    shall be deemed to be the holder of record of the Warrant Shares, notwithstanding
    that the stock transfer books of the Company shall then be closed or that
    certificates representing such Warrant Shares shall not then be actually delivered
    to the Holder. As soon as practicable following the date on which the Company
    has received each of the Notice of Exercise, the Aggregate Exercise Price
    and this Warrant (or an indemnification undertaking with respect to this Warrant
    in the case of its loss, theft or destruction), the Company shall (X) issue
    and deliver to the address as specified in the Notice of Exercise, a certificate,
    registered in the name of the Holder or its designee, for the number of shares
    of Common Stock to which the Holder is entitled pursuant to such exercise,
    or (Y) provided that the Company's transfer agent (the &quot;<u>Transfer Agent</u>&quot;)
    is participating in The Depository Trust Company (&quot;<u>DTC</u>&quot;)
    Fast Automated Securities Transfer Program, upon the request of the Holder,
    credit such aggregate number of shares of Common Stock to which the Holder
    is entitled pursuant to such exercise to the Holder's or its designee's balance
    account with DTC through its Deposit Withdrawal Agent Commission system. If
    this Warrant should be exercised in part only, the Company shall, upon surrender
    of this Warrant for cancellation (or the execution of an indemnification undertaking
    with respect to this Warrant in the case of its loss, theft or destruction),
    execute and deliver a new Warrant evidencing the right of the Holder to purchase
    the balance of the Warrant Shares subject to purchase hereunder as soon as
    practicable after receipt of the Warrant (or the undertaking).</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">3. <u>Registration of
    Warrants; Transfer of Warrants</u>. This Warrant and any Warrants issued upon
    the transfer or exercise in part of this Warrant shall be numbered and shall
    be registered in a register containing the name and address of the Holder
    (the &quot;<u>Warrant Register</u>&quot;) as they are issued. The Company
    shall be entitled to treat the registered holder of any Warrant on the Warrant
    Register as the owner in fact thereof for all purposes and shall not be bound
    to recognize any equitable or other claim to or interest in such Warrant on
    the part of any other person, and shall not be liable for any registration
    or transfer of Warrants which are registered or to be registered in the name
    of a fiduciary or the nominee of a fiduciary unless made with the actual knowledge
    that a fiduciary or nominee is committing a breach of trust in requesting
    such registration or transfer, or with the knowledge of such facts that its
    participation therein amounts to bad faith. This Warrant shall be transferable
    only on the books of the Company upon delivery thereof duly endorsed by the
    Holder or by its duly authorized attorney or representative, or accompanied
    by proper evidence of succession, assignment, or authority to transfer. In
    all cases of transfer by an attorney, executor, administrator, guardian, or
    other legal representative, duly authenticated evidence of his or its authority
    shall be produced. Upon any registration of transfer, the Company shall deliver
    a new Warrant or Warrants to the person entitled thereto. This Warrant may
    be exchanged, at the option of the Holder thereof, for another Warrant, or
    other Warrants of different denominations, of like tenor and representing
    in the aggregate the right to purchase a like number of Warrant Shares, upon
    surrender to the Company or its duly authorized agent. </font></p>
</blockquote>
<p align="center">&nbsp;</p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">2</font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    4. <u>Restrictions on Transfer</u>. (a) The Holder, as of the Issuance Date,
    represents to the Company that such Holder is acquiring the Warrants for its
    own account and not with a view towards the distribution thereof or of the
    Warrant Shares. Upon exercise of this Warrant, the Holder shall, if so requested
    by the Company, confirm in writing, in a form satisfactory to the Company,
    that the Warrant Shares are being acquired for such Holder's own account and
    not with a view towards distribution or resale. Notwithstanding any provisions
    contained in this Warrant to the contrary, this Warrant and the related Warrant
    Shares shall not be transferable except upon the conditions specified in this
    Section 4, which conditions are intended, among other things, to insure compliance
    with the provisions of the Securities Act of 1933, as amended (the &quot;<u>Securities
    Act</u>&quot;), and applicable state law in respect of the transfer of this
    Warrant or such Warrant Shares. The Holder, by acceptance of this Warrant,
    agrees that the Holder will not transfer this Warrant or the related Warrant
    Shares (i) prior to delivery to the Company of an opinion of the Holder's
    counsel (as such opinion and such counsel are described in Section 4(b) hereof)
    and any other information requested by the Company, (ii) with respect to the
    Warrant Shares only, until registration of such Warrant Shares under the Securities
    Act has become effective, or (iii) after a sale of such Warrant or Warrant
    Shares has been consummated pursuant to Rule 144 or Rule 144A under the Securities
    Act.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">(b) The Holder, by its
    acceptance hereof, agrees that prior to any transfer of this Warrant or of
    the related Warrant Shares (other than as permitted by Section 4(a) hereof
    or, with respect to the Warrant Shares only, pursuant to a registration under
    the Securities Act), the Holder will give written notice to the Company of
    its intention to effect such transfer, together with an opinion of such counsel
    for the Holder as shall be reasonably acceptable to the Company and/or any
    other information requested by the Company, to the effect that the proposed
    transfer of this Warrant and/or such Warrant Shares may be effected without
    registration or qualification under the Securities Act as then in effect or
    any federal or state securities law then in effect. Upon receiving such written
    notice and reasonably satisfactory opinion or other information, if so requested,
    the Company, as promptly as practicable, shall notify such Holder that such
    Holder may sell or otherwise dispose of this Warrant and/or such Warrant Shares,
    all in accordance with the terms of the notice delivered to the Company. If
    a determination has been made pursuant to this Section 4(b) that the opinion
    of counsel for the Holder or other information is not reasonably satisfactory
    to the Company, the Company shall so notify the Holder promptly with details
    thereof after such determination has been made. <br>
    <br>
    </font></p>
</blockquote>
<p align="center"><font size="3" face="Times New Roman, Times, serif">3<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    (c) Each stock certificate representing Warrant Shares issued upon exercise
    or exchange of this Warrant shall bear the following legend unless the opinion
    of counsel referred to in Section 4(b) states such legend is not required:</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">&quot;THE SECURITIES
    REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
    ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT
    BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED
    UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY
    HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY
    TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.&quot;</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">The Holder understands
    that the Company may place, and may instruct any transfer agent or depository
    for the Warrant Shares to place, a stop transfer notation in the securities
    records in respect of the Warrant Shares. The legend set forth above shall
    be removed and the Company shall issue a certificate without such legend to
    the holder of the Warrant Shares upon which it is stamped if, unless otherwise
    required by state securities laws, (i) while such Warrant Shares are registered
    for resale under the Securities Act, (ii) in connection with a sale, assignment
    or other transfer, such holder provides the Company with an opinion of counsel
    reasonably satisfactory to the Company, in a generally acceptable form, to
    the effect that such sale, assignment or transfer of the Warrant Shares may
    be made without registration under the applicable requirements of the Securities
    Act and that such legend is no longer required, or (iii) such holder provides
    the Company with reasonable assurance that the Warrant Shares can be sold,
    assigned or transferred pursuant to Rule 144 or Rule 144A promulgated pursuant
    to the Securities Act, and such holder delivers the legended Warrant Shares
    to the Company or the Transfer Agent.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">5. <u>Reservation of
    Shares</u>. The Company shall at all times during the Exercise Period reserve
    and keep available out of its authorized and unissued Common Stock, solely
    for the purpose of providing for the exercise of the rights to purchase all
    Warrant Shares granted pursuant to the Warrants, such number of shares of
    Common Stock as shall, from time to time, be sufficient therefor. The Company
    covenants that all shares of Common Stock issuable upon exercise of this Warrant,
    upon receipt by the Company of the full Exercise Price therefor, shall be
    validly issued, fully paid, non-assessable, and free of preemptive rights.
    </font></p>
  <p><font size="3" face="Times New Roman, Times, serif">6. <u>Exercise Price
    Adjustments</u>. The Exercise Price shall be subject to adjustment from time
    to time as follows: </font></p>
  <p><font size="3" face="Times New Roman, Times, serif"> (a) In the event that
    the Company shall (A) pay a dividend or make a distribution, in shares of
    Common Stock, on any class of capital stock of the Company or any subsidiary
    which is not directly or indirectly wholly owned by the Company, (B) split
    or subdivide its outstanding Common Stock into a greater number of shares,
    or (C) combine its outstanding Common Stock into a smaller number of shares,
    then in each such case the Exercise Price in effect immediately prior thereto
    shall be adjusted so that the Holder of a Warrant thereafter surrendered for
    exercise shall be entitled to receive the number of shares of Common Stock
    that such Holder would have owned or have been entitled to receive after the
    occurrence of any of the events described above had such Warrant been exercised
    immediately prior to the occurrence of such event. An adjustment made pursuant
    to this Section 6(a) shall become effective immediately after the close of
    business on the record date in the case of a dividend or distribution (except
    as provided in Section 6(e) below) and shall become effective immediately
    after the close of business on the effective date in the case of such subdivision,
    split or combination, as the case may be.<br>
    <br>
    <br>
    </font></p>
</blockquote>
<p align="center"><font size="3" face="Times New Roman, Times, serif">4<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    (b) In the event that, at any time as a result of an adjustment made pursuant
    to Section 6(a) above, the Holder of any Warrant thereafter surrendered for
    exercise shall become entitled to receive any shares of the Company other
    than shares of the Common Stock, thereafter the number of such other shares
    so receivable upon exercise of any such Warrant shall be subject to adjustment
    from time to time in a manner and on terms as nearly equivalent as practicable
    to the provisions with respect to the Common Stock contained in Section 6(a),
    and the other provisions of this Section 6 with respect to the Common Stock
    shall apply on like terms to any such other shares.<br>
    <br>
    (c) In case of any reclassification of the Common Stock (other than in a transaction
    to which Section 6(a) applies), any consolidation of the Company with, or
    merger of the Company into, any other entity, any merger of another entity
    into the Company (other than a merger that does not result in any reclassification,
    conversion, exchange or cancellation of outstanding shares of Common Stock
    of the Company), any sale or transfer of all or substantially all of the assets
    of the Company or any compulsory share exchange, pursuant to which share exchange
    the Common Stock is converted into other securities, cash or other property
    (each such event, a &quot;<u>Change of Control</u>&quot;), then this Warrant
    will terminate if not exercised by the Holder no later than the closing of
    such Change of Control.<br>
    <br>
    (d) If:<br>
    </font></p>
  <blockquote>
    <blockquote>
      <p><font size="3" face="Times New Roman, Times, serif">(i) the Company shall
        take any action which would require an adjustment in the Exercise Price
        pursuant to Section 6(a); or <br>
        <br>
        (ii) the Company shall authorize the granting to the holders of its Common
        Stock generally of rights, warrants or options to subscribe for or purchase
        any shares of any class or any other rights, warrants or options; or <br>
        <br>
        (iii) there shall be any reclassification or change of the Common Stock
        (other than a subdivision or combination of its outstanding Common Stock
        or a change in par value) or any consolidation, merger or statutory share
        exchange to which the Company is a party and for which approval of any
        stockholders of the Company is required, or the sale or transfer of all
        or substantially all of the assets of the Company, or any other transaction
        that would constitute a Change of Control; or<br>
        <br>
        (iv) there shall be a voluntary or involuntary dissolution, liquidation
        or winding up of the Company; </font></p>
    </blockquote>
  </blockquote>
</blockquote>
<p>&nbsp;</p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">5<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    then, in each such case, the Company shall cause to be mailed to each Holder
    at such Holder's address as shown on the Warrant Register, as promptly as
    possible, but at least 20 days prior to the applicable date hereinafter specified,
    a notice stating (A) the date on which a record is to be taken for the purpose
    of such dividend, distribution or granting of rights, warrants or options,
    or, if a record is not to be taken, the date as of which the holders of Common
    Stock of record to be entitled to such dividend, distribution or rights, warrants
    or options are to be determined, or (B) the date on which such reclassification,
    change, consolidation, merger, statutory share exchange, sale, transfer, dissolution,
    liquidation or winding-up is expected to become effective or occur, and the
    date as of which it is expected that holders of Common Stock of record shall
    be entitled to exchange their shares of Common Stock for securities or cash
    or other property deliverable upon such reclassification, change, consolidation,
    merger, statutory share exchange, sale, transfer, dissolution, liquidation
    or winding up. However, the failure to give such notice or any defect therein
    shall not affect the legality or validity of the proceedings described in
    this Section 6(d).<br>
    <br>
    (e) Whenever the Exercise Price is adjusted as herein provided, the Company
    shall promptly mail to each Holder a certificate of an officer of the Company
    setting forth the Exercise Price after the adjustment and setting forth a
    brief statement of the facts requiring such adjustment and a computation thereof.
    <br>
    <br>
    (f) In any case in which Section 6(a) provides that an adjustment shall become
    effective immediately after a record date for an event and the date fixed
    for such adjustment pursuant to Section 6(a) occurs after such record date
    but before the occurrence of such event, the Company may defer until the actual
    occurrence of such event (i) issuing to the Holder of any Warrants exercised
    after such record date and before the occurrence of such event the additional
    shares of Common Stock issuable upon such conversion by reason of the adjustment
    required by such event over and above the Common Stock issuable upon such
    exercise before giving effect to such adjustment, and (ii) paying to such
    holder any amount in cash in lieu of any fraction pursuant to Section 6(i).<br>
    <br>
    (g) In case the Company shall take any action affecting the Common Stock,
    other than actions described in this Section 6, which in the reasonable opinion
    of the Board of Directors of the Company (the &quot;<u>Board</u>&quot;) would
    materially adversely affect the exercise right of the Holders, the Exercise
    Price may be adjusted, to the extent permitted by law, in such manner, if
    any, and at such time, as the Board may determine to be equitable in the circumstances;
    provided, however, that in no event shall the Board be required to take any
    such action. <br>
    </font></p>
</blockquote>
<p align="center"><font size="3" face="Times New Roman, Times, serif">6<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    (h) Upon each adjustment of the Exercise Price pursuant to this Section 6,
    this Warrant shall thereafter evidence the right to purchase, at the adjusted
    Exercise Price, that number of shares (calculated to the nearest thousandth)
    obtained by dividing (i) the product obtained by multiplying the number of
    shares purchasable upon exercise of this Warrant prior to adjustment of the
    number of shares by the Exercise Price in effect prior to adjustment of the
    Exercise Price, by (ii) the Exercise Price in effect after such adjustment
    of the Exercise Price.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">(i) The Company shall
    not be required to issue fractions of shares of Common Stock or other capital
    stock of the Company upon the exercise of this Warrant. If any fraction of
    a share would be issuable on the exercise of this Warrant (or specified portions
    thereof), the Company shall purchase such fraction for an amount in cash equal
    to the same fraction of the current market price of such share of Common Stock
    on the date of exercise of this Warrant.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">7. <u>Anti-dilution</u>.
    The Exercise Price shall be further subject to adjustment as follows: </font></p>
  <p><font size="3" face="Times New Roman, Times, serif">(a) For purposes of this
    Section 7, &quot;<u>New Securities</u>&quot; shall mean all shares of Common
    Stock, convertible securities, options or warrants issued by the Company within
    twelve (12) months after the Issuance Date (the &quot;<u>Anti-dilution Period</u>&quot;),
    other than issuances or deemed issuances of:</font></p>
  <blockquote>
    <blockquote>
      <p><font size="3" face="Times New Roman, Times, serif">(i) shares of capital
        stock of the Company and Warrants issued in accordance with the Purchase
        Agreement and all warrants (and the securities issuable upon the exercise
        thereof) issued to the placement agent for the transactions under the
        Purchase Agreement;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(ii) shares of capital
        stock of the Company and options, warrants or other rights to purchase
        capital stock of the Company issued or issuable to employees, officers
        or directors of, or consultants or advisors to the Company or any subsidiary
        pursuant to stock grants, restricted stock purchase agreements, option
        plans, purchase plans, incentive programs or similar arrangements;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(iii) shares of capital
        stock of the Company issued in connection with any pro rata stock split
        or stock dividend of the Company or recapitalization by the Company;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(iv) shares of capital
        stock, or options or warrants to purchase capital stock, issued to a strategic
        investor in connection with a strategic commercial agreement as approved
        by the Board;<br>
        <br>
        </font></p>
    </blockquote>
  </blockquote>
</blockquote>
<p align="center"><font size="3" face="Times New Roman, Times, serif">7<br>
  </font></p>
<hr>
<blockquote>
  <blockquote>
    <blockquote>
      <p><font size="3" face="Times New Roman, Times, serif"><br>
        (v) shares of capital stock, or options or warrants to purchase capital
        stock, issued pursuant to a commercial borrowing, secured lending or lease
        financing transaction approved by the Board;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(vi) shares of capital
        stock, or options or warrants to purchase capital stock, issued or issuable
        pursuant to the acquisition of another corporation by the Company by merger,
        purchase of substantially all of the assets or other reorganization or
        to a joint venture agreement;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(vii) shares of capital
        stock issued in an underwritten public securities offering pursuant to
        a registration statement filed under the Securities Act;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(viii) shares of
        capital stock, or options or warrants to purchase capital stock, issued
        or issuable to suppliers or third party service providers in connection
        with the provision of goods or services pursuant to transactions approved
        by the Board;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(ix) shares of capital
        stock, or options or warrants to purchase capital stock, issued or issuable
        in connection with any settlement of any action, suit, proceeding or litigation
        approved by the Board;</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(x) shares of capital
        stock, or options or warrants to purchase capital stock, issued or issuable
        pursuant to a transaction approved by the holders of warrants representing
        a majority of the Common Stock issuable upon exercise of all then outstanding
        warrants issued pursuant to the transactions under the Purchase Agreement
        (including the placement agent warrants); and</font></p>
      <p><font size="3" face="Times New Roman, Times, serif">(xi) securities issuable
        upon conversion or exercise of the securities set forth in paragraphs
        (i) - (x) above.<br>
        </font></p>
    </blockquote>
  </blockquote>
  <p><font size="3" face="Times New Roman, Times, serif">(b) For purposes of this
    Section 7, the consideration received by the Company for the issuance of any
    New Securities shall be computed as follows:<br>
    </font></p>
  <blockquote>
    <blockquote>
      <p><font size="3" face="Times New Roman, Times, serif">(i) Cash and property
        consideration shall:<br>
        </font></p>
      <blockquote>
        <p><font size="3" face="Times New Roman, Times, serif">(1) insofar as
          it consists of cash, be computed at the aggregate amount of cash received
          by the Company before deducting any reasonable discounts, commissions
          or other expenses allowed, paid or incurred by the Company for any underwriting
          or otherwise in connection with such issuance;</font></p>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p>&nbsp;</p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">8<br>
  </font></p>
<hr>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <p><font size="3" face="Times New Roman, Times, serif"><br>
          (2) insofar as it consists of property other than cash, be computed
          at the fair market value thereof at the time of such issue, as determined
          in good faith by the Board; and<br>
          </font></p>
        <p><font size="3" face="Times New Roman, Times, serif">(3) in the event
          New Securities are issued together with other shares or securities or
          other assets of the Company for consideration which covers both, be
          the proportion of such consideration so received, computed as provided
          in clauses (a) and (b) above, as reasonably determined in good faith
          by the Board.<br>
          </font></p>
      </blockquote>
      <p><font size="3" face="Times New Roman, Times, serif">(ii) The consideration
        per share received by the Company for the issuance of options or convertible
        securities shall be determined by dividing<br>
        </font></p>
      <blockquote>
        <p><font size="3" face="Times New Roman, Times, serif">x: the total amount,
          if any, received or receivable by the Company as consideration for the
          issue of such options or convertible securities, plus the minimum aggregate
          amount of additional consideration (as set forth in the instruments
          relating thereto, without regard to any provision contained therein
          for a subsequent adjustment of such consideration) payable to the Company
          upon the exercise of such options or the conversion or exchange of such
          convertible securities, or in the case of options for convertible securities,
          the exercise of such options for convertible securities and the conversion
          or exchange of such convertible securities by<br>
          </font></p>
        <p><font size="3" face="Times New Roman, Times, serif">y: the maximum
          number of shares of Common Stock (as set forth in the instruments relating
          thereto, without regard to any provision contained therein for a subsequent
          adjustment of such number) issuable upon the exercise of such options
          or the conversion or exchange of such convertible securities.</font></p>
      </blockquote>
    </blockquote>
  </blockquote>
  <p><font size="3" face="Times New Roman, Times, serif">(c) In case the Company
    shall issue or sell any New Securities during the Anti-dilution Period for
    a consideration per share less than the Exercise Price then in effect (the
    &quot;<u>New Price</u>&quot;), then upon such issuance or sale, the Exercise
    Price shall be adjusted to equal such New Price.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">8. <u>Adjustment of Exercise
    Price for Failure of Registration Statement to Become Effective</u>. In the
    event the Registration Statement (as defined in the Registration Rights Agreement)
    is not declared effective by the Securities and Exchange Commission on or
    prior to the Required Effective Date (as defined in the Registration Rights
    Agreement), then the Exercise Price then in effect shall be reduced by two
    percent (2%) of the original Exercise Price (as adjusted in accordance with
    the terms of this Warrant) for each full month after the Required Effective
    Date that the Registration Statement has failed to become effective, subject
    to a maximum reduction of six percent (6%) of the original Exercise Price
    (as adjusted in accordance with the terms of this Warrant).<br>
    </font></p>
</blockquote>
<p align="center"><font size="3" face="Times New Roman, Times, serif">9<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    9. <u>Transfer Taxes</u>. The issuance of any shares or other securities upon
    the exercise of this Warrant, and the delivery of certificates or other instruments
    representing such shares or other securities, shall be made without charge
    to the Holder for any tax or other charge in respect of such issuance. The
    Company shall not, however, be required to pay any tax which may be payable
    in respect of any transfer involved in the issue and delivery of any certificate
    in a name other than that of the Holder, and the Company shall not be required
    to issue or deliver any such certificate unless and until the person or persons
    requesting the issue thereof shall have paid to the Company the amount of
    such tax or shall have established to the satisfaction of the Company that
    such tax has been paid.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">10. <u>Loss or Mutilation
    of Warrant</u>. Upon receipt of evidence reasonably satisfactory to the Company
    of the loss, theft, destruction, or mutilation of any Warrant (and upon surrender
    of any Warrant if mutilated), and upon reimbursement of the Company's reasonable
    incidental expenses and the execution of an indemnification undertaking in
    a form reasonably acceptable to the Company, the Company shall execute and
    deliver to the Holder thereof a new Warrant of like tenor, and denomination.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">11. <u>No Rights as a
    Stockholder</u>. The Holder of any Warrant shall not have, solely on account
    of such status, any rights of a stockholder of the Company, either at law
    or in equity, or to any notice of meetings of stockholders or of any other
    proceedings of the Company, except as provided in this Warrant.</font></p>
  <p><font size="3" face="Times New Roman, Times, serif">12. <u>Governing Law</u>.
    This Warrant shall be construed in accordance with the laws of the State of
    California applicable to contracts made and performed within such State, without
    regard to principles of conflicts of law.</font></p>
  <p>&nbsp;</p>
</blockquote>
<p align="center"><font size="3" face="Times New Roman, Times, serif">* * *<br>
  </font></p>
<p>&nbsp; </p>
<p>&nbsp;</p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">10<br>
  </font></p>
<hr>
<p>&nbsp;</p>
<table cols=2 width="89%">
  <tr>
    <td width="38%"><font face="Times New Roman, Times, serif" size="3">Dated:
      May __, 2009 </font></td>
    <td width="21%">&nbsp;</td>
    <td width="41%"><b>SOCKET MOBILE, INC.</b></td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="21%">&nbsp;</td>
    <td width="41%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="21%">
      <center>
      </center>
    </td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">By:_____________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%" height="45">&nbsp;</td>
    <td width="21%" height="45">
      <center>
        <font face="Times New Roman, Times, serif" size="3">&nbsp; </font>
      </center>
    </td>
    <td valign=top align=middle width="41%" height="45">
      <div align=left><font face="Times New Roman, Times, serif" size="3">Name:
        David W. Dunlap<br>
        Title: Chief Financial Officer </font></div>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
  FORM OF ASSIGNMENT</font></p>
<p><font size="3" face="Times New Roman, Times, serif"><br>
  (To be executed by the registered holder if such holder desires to transfer
  the attached Warrant.)</font></p>
<p><font size="3" face="Times New Roman, Times, serif"> FOR VALUE RECEIVED, hereby
  sells, assigns, and transfers unto __________________ a Warrant to purchase
  __________ shares of Common Stock, par value $0.001 per share, of Socket Mobile,
  Inc. (the &quot;Company&quot;), together with all right, title, and interest
  therein, and does hereby irrevocably constitute and appoint attorney to transfer
  such Warrant on the books of the Company, with full power of substitution.</font></p>
<table cols=2 width="89%" border="0">
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">Dated:___________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">
      <center>
      </center>
    </td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">By:_____________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%" height="19">&nbsp;</td>
    <td width="32%" height="19">
      <center>
      </center>
    </td>
    <td valign=top align=middle width="30%" height="19">
      <blockquote>
        <blockquote>
          <div align="left"><font face="Times New Roman, Times, serif" size="3">Signature</font></div>
        </blockquote>
      </blockquote>
    </td>
  </tr>
</table>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <blockquote>
                                    <blockquote>
                                      <blockquote>
                                        <blockquote>
                                          <blockquote>
                                            <blockquote>
                                              <blockquote>
                                                <blockquote>
                                                  <blockquote>
                                                    <blockquote>
                                                      <p>&nbsp; </p>
                                                    </blockquote>
                                                  </blockquote>
                                                </blockquote>
                                              </blockquote>
                                            </blockquote>
                                          </blockquote>
                                        </blockquote>
                                      </blockquote>
                                    </blockquote>
                                  </blockquote>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p><font size="3" face="Times New Roman, Times, serif"> The signature on the foregoing
  Assignment must correspond to the name as written upon the face of this Warrant
  in every particular, without alteration or enlargement or any change whatsoever.
  </font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align="left"><font size="3" face="Times New Roman, Times, serif"><br>
  To: Socket Mobile, Inc.<br>
  39700 Eureka Drive<br>
  Newark, California 94560<br>
  Attention: Chief Financial Officer<br>
  </font></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif"><br>
  <br>
  NOTICE OF EXERCISE</font></p>
<p><font size="3" face="Times New Roman, Times, serif"> The undersigned hereby
  exercises its rights to purchase _______ Warrant Shares covered by the within
  Warrant and tenders payment herewith in the amount of $_________ by tendering
  cash or delivering a certified check or bank cashier's check, payable to the
  order of the Company in accordance with the terms thereof, and requests that
  certificates for such securities be issued in the name of, and delivered to:</font></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">_______________________________________</font></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">_______________________________________</font></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">_______________________________________</font></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif">(Print Name,
  Address and Social Security<br>
  or Tax Identification Number)</font></p>
<p><font size="3" face="Times New Roman, Times, serif">and, if such number of
  Warrant Shares shall not be all the Warrant Shares covered by the within Warrant,
  that a new Warrant for the balance of the Warrant Shares covered by the within
  Warrant be registered in the name of, and delivered to, the undersigned at the
  address of record of the undersigned upon the Warrant Register.</font></p>
<p><font size="3" face="Times New Roman, Times, serif">The undersigned hereby
  represents and warrants that the aforesaid Warrant Shares are being acquired
  for the account of the undersigned and not with a view to, or for resale, in
  connection with the distribution thereof, and that the undersigned has no present
  intention of distributing or reselling such shares. All representations and
  warranties of the undersigned set forth in the Warrant are true and correct
  as of the date hereof.</font></p>
<p>&nbsp; </p>
<table cols=2 width="89%" border="0">
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">Dated:___________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%"><font face="Times New Roman, Times, serif" size="3">By:_____________________&nbsp;</font></td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">
      <blockquote>
        <blockquote>
          <p><font face="Times New Roman, Times, serif" size="3">Print Name</font></p>
        </blockquote>
      </blockquote>
    </td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">
      <center>
      </center>
    </td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">________________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%" height="19">&nbsp;</td>
    <td width="32%" height="19">
      <center>
      </center>
    </td>
    <td valign=top align=middle width="30%" height="19">
      <blockquote>
        <blockquote>
          <div align="left"><font face="Times New Roman, Times, serif" size="3">Signature</font></div>
        </blockquote>
      </blockquote>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p><font size="3" face="Times New Roman, Times, serif">Address: </font></p>
<p align="left"><font size="3" face="Times New Roman, Times, serif">_______________________________________</font></p>
<p align="left"><font size="3" face="Times New Roman, Times, serif">_______________________________________</font></p>
<p align="left"><font size="3" face="Times New Roman, Times, serif">_______________________________________</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex1016.htm
<DESCRIPTION>EXHIBIT 10.16
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
  10.16</b></font></p>
<p>&nbsp;</p>
<p align="left"><font size="3"><b>THE WARRANT REPRESENTED BY THIS CERTIFICATE
  AND THE SHARES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE
  SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND
  MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
  REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS
  THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY
  SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.</b></font></p>
<p align="left"><font size="3"><b>THE TRANSFER OF THIS WARRANT IS RESTRICTED AS
  DESCRIBED HEREIN.<br>
  <br>
  <br>
  <br>
  </b></font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3">Socket Mobile,
  Inc.<br>
  </font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"> Warrant
  for the Purchase of Shares of Common Stock,<br>
  par value $0.001 per Share </font></p>
<p align="left">&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="62%">No. W-____</td>
    <td width="38%">
      <div align="right">______ Shares</div>
    </td>
  </tr>
  <tr>
    <td width="62%">Issuance Date: May __, 2009 </td>
    <td width="38%">&nbsp;</td>
  </tr>
</table>
<font size="3"><br>
</font>
<p align="left"><font size="3">THIS CERTIFIES that, for value received, Securities
  Research Associates, Inc., with its principal office located at 80 East Sir
  Francis Drake Boulevard., Suite 3F, Larkspur, California 94939, or its registered
  assigns (the &quot;<u>Holder</u>&quot;), is entitled to subscribe for and purchase
  from Socket Mobile, Inc., a Delaware corporation (the &quot;<u>Company</u>&quot;),
  upon the terms and conditions set forth herein, ______ shares of the Company's
  Common Stock, par value $0.001 per share (&quot;<u>Common Stock</u>&quot;),
  at a price of $1.80 per share, subject to adjustment as provided herein (the
  &quot;<u>Exercise Price</u>&quot;). As used herein the term &quot;<u>this Warrant</u>&quot;
  shall mean and include this Warrant and any Common Stock or Warrants hereafter
  issued as a consequence of the exercise or transfer of this Warrant in whole
  or in part. This Warrant is being issued pursuant to that certain Engagement
  Letter, dated as of May 5, 2009, by and between the Company and Securities Research
  Associates, Inc (the &quot;<u>Engagement Letter</u>&quot;).</font></p>
<p><font size="3"> The number of shares of Common Stock issuable upon exercise
  of this Warrant (the &quot;<u>Warrant Shares</u>&quot;) and the Exercise Price
  may be adjusted from time to time as hereinafter set forth. The Warrant Shares
  are entitled to the benefits, and subject to the obligations, set forth in the
  Registration Rights Agreement, dated as of May 18, 2009, among the Company,
  the Holder and certain other parties (the &quot;<u>Registration Rights Agreement</u>&quot;).</font></p>
<blockquote>
  <p><font size="3">1. <u>Exercise Period</u>. This Warrant may be exercised at
    any time or from time to time during the period commencing on the Issuance
    Date and ending at 5:00 P.M. Pacific time on May __, 2014 (the &quot;<u>Exercise
    Period</u>&quot;). <br>
    <br>
    2. <u>Procedure for Exercise; Effect of Exercise</u>. </font></p>
  <p><font size="3">(a) <u>Exercise</u>. This Warrant may be exercised, in whole
    or in part, by the Holder during normal business hours on any business day
    during the Exercise Period by (i) the delivery to the Company of a duly executed
    Notice of Exercise (in the form attached to this Agreement) specifying the
    number of Warrant Shares to be purchased, (ii) delivery of payment to the
    Company of the Exercise Price for the number of Warrant Shares specified in
    the Notice of Exercise by cash, wire transfer of immediately available funds
    to a bank account specified by the Company, or by certified or bank cashier's
    check (the &quot;<u>Aggregate Exercise Price</u>&quot;), and (iii) delivery
    to the Company of this Warrant (or an indemnification undertaking with respect
    to this Warrant in the case of its loss, theft or destruction). </font></p>
</blockquote>
<p align="left">&nbsp; </p>
<blockquote>&nbsp;</blockquote>
<p align="center"><font size="3">1<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3"><br>
    (b) <u>Net Exercise</u>. In lieu of exercising this Warrant pursuant to Section
    2(a), if the fair market value of one Warrant Share is greater than the Exercise
    Price (at the date of calculation as set forth below), the Holder may elect
    to receive a number of Warrant Shares equal to the value of this Warrant (or
    of any portion of this Warrant being canceled) by surrender of this Warrant
    at the principal office of the Company (or such other office or agency as
    the Company may designate) together with a properly completed and executed
    Notice of Exercise reflecting such election, in which event the Company shall
    issue to the Holder that number of Shares computed using the following formula:<br>
    <br>
    <br>
    </font></p>
  <table width="20%" border="0" cellspacing="0" cellpadding="0" align="center">
    <tr>
      <td rowspan="2" width="50">
        <div align="center">X</div>
      </td>
      <td rowspan="2" width="50">
        <div align="center">=</div>
      </td>
      <td width="100">
        <div align="center"><u>Y (A - B)</u></div>
      </td>
    </tr>
    <tr>
      <td width="100">
        <div align="center">A</div>
      </td>
    </tr>
  </table>
  <p><br>
    Where:<br>
    <br>
  </p>
  <table width="40%" border="0" cellspacing="0" cellpadding="0" align="center">
    <tr>
      <td width="100">
        <div align="center">X</div>
      </td>
      <td width="100">
        <div align="center">=</div>
      </td>
      <td width="600">
        <p>The number of Warrant Shares to be issued to the Holder</p>
      </td>
    </tr>
    <tr>
      <td width="100">&nbsp;</td>
      <td width="100">&nbsp;</td>
      <td width="600">&nbsp;</td>
    </tr>
    <tr>
      <td width="100">
        <div align="center">Y</div>
      </td>
      <td width="100">
        <div align="center">=</div>
      </td>
      <td width="600">
        <p>The number of Warrant Shares purchasable under this Warrant or, if
          only a portion of the Warrant is being exercised, the portion of the
          Warrant being canceled (at the date of such calculation)</p>
      </td>
    </tr>
    <tr>
      <td width="100">&nbsp;</td>
      <td width="100">&nbsp;</td>
      <td width="600">&nbsp;</td>
    </tr>
    <tr>
      <td width="100">
        <div align="center">A</div>
      </td>
      <td width="100">
        <div align="center">=</div>
      </td>
      <td width="600">
        <p>The fair market value of one Warrant Share (at the date of such calculation)</p>
      </td>
    </tr>
    <tr>
      <td width="100">&nbsp;</td>
      <td width="100">&nbsp;</td>
      <td width="600">&nbsp;</td>
    </tr>
    <tr>
      <td width="100">
        <div align="center">B</div>
      </td>
      <td width="100">
        <div align="center">=</div>
      </td>
      <td width="600">
        <p>The Exercise Price (as adjusted to the date of such calculation)</p>
      </td>
    </tr>
  </table>
  <p>&nbsp;</p>
  <p><font size="3">For purposes of the calculation above, the fair market value
    of one Warrant Share shall be the average of the closing bid prices of the
    common stock or the closing price quoted on the national securities exchange
    on which the common stock is listed as published in the Wall Street Journal,
    as applicable, for the ten (10) trading day period ending five (5) trading
    days prior to the date of determination of fair market value; provided, however,
    that where no public market exists for the Company's common stock at the time
    of such exercise, the fair market value per Warrant Share shall be determined
    by the Board of Directors of the Company acting in good faith.</font></p>
  <p>&nbsp;</p>
</blockquote>
<p align="center"><font size="3">2</font></p>
<hr>
<blockquote>
  <p><font size="3" face="Times New Roman, Times, serif"><br>
    (c) <u>Effect of Exercise</u>. Upon receipt by the Company of a Notice of
    Exercise, together with proper payment of the Aggregate Exercise Price and
    this Warrant (or an indemnification undertaking), as provided in this Section
    2, such Warrant Shares shall be deemed to be issued to the Holder as of the
    close of business on such date on which the Notice of Exercise and this Warrant
    (or an indemnification undertaking) have been delivered and payment has been
    made for such Warrant Shares in accordance with this Warrant, and the Holder
    shall be deemed to be the holder of record of the Warrant Shares, notwithstanding
    that the stock transfer books of the Company shall then be closed or that
    certificates representing such Warrant Shares shall not then be actually delivered
    to the Holder. As soon as practicable following the date on which the Company
    has received each of the Notice of Exercise, the Aggregate Exercise Price
    and this Warrant (or an indemnification undertaking with respect to this Warrant
    in the case of its loss, theft or destruction), the Company shall (X) issue
    and deliver to the address as specified in the Notice of Exercise, a certificate,
    registered in the name of the Holder or its designee, for the number of shares
    of Common Stock to which the Holder is entitled pursuant to such exercise,
    or (Y) provided that the Company's transfer agent (the &quot;<u>Transfer Agent</u>&quot;)
    is participating in The Depository Trust Company (&quot;<u>DTC</u>&quot;)
    Fast Automated Securities Transfer Program, upon the request of the Holder,
    credit such aggregate number of shares of Common Stock to which the Holder
    is entitled pursuant to such exercise to the Holder's or its designee's balance
    account with DTC through its Deposit Withdrawal Agent Commission system. If
    this Warrant should be exercised in part only, the Company shall, upon surrender
    of this Warrant for cancellation (or the execution of an indemnification undertaking
    with respect to this Warrant in the case of its loss, theft or destruction),
    execute and deliver a new Warrant evidencing the right of the Holder to purchase
    the balance of the Warrant Shares subject to purchase hereunder as soon as
    practicable after receipt of the Warrant (or the undertaking).</font></p>
  <p><font size="3">3. <u>Registration of Warrants; Transfer of Warrants</u>.
    This Warrant and any Warrants issued upon the transfer or exercise in part
    of this Warrant shall be numbered and shall be registered in a register containing
    the name and address of the Holder (the &quot;<u>Warrant Register</u>&quot;)
    as they are issued. The Company shall be entitled to treat the registered
    holder of any Warrant on the Warrant Register as the owner in fact thereof
    for all purposes and shall not be bound to recognize any equitable or other
    claim to or interest in such Warrant on the part of any other person, and
    shall not be liable for any registration or transfer of Warrants which are
    registered or to be registered in the name of a fiduciary or the nominee of
    a fiduciary unless made with the actual knowledge that a fiduciary or nominee
    is committing a breach of trust in requesting such registration or transfer,
    or with the knowledge of such facts that its participation therein amounts
    to bad faith. This Warrant shall be transferable only on the books of the
    Company upon delivery thereof duly endorsed by the Holder or by its duly authorized
    attorney or representative, or accompanied by proper evidence of succession,
    assignment, or authority to transfer. In all cases of transfer by an attorney,
    executor, administrator, guardian, or other legal representative, duly authenticated
    evidence of his or its authority shall be produced. Upon any registration
    of transfer, the Company shall deliver a new Warrant or Warrants to the person
    entitled thereto. This Warrant may be exchanged, at the option of the Holder
    thereof, for another Warrant, or other Warrants of different denominations,
    of like tenor and representing in the aggregate the right to purchase a like
    number of Warrant Shares, upon surrender to the Company or its duly authorized
    agent. <br>
    <br>
    </font></p>
</blockquote>
<p align="center"><font size="3">3<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3"><br>
    4. <u>Restrictions on Transfer</u>. (a) The Holder, as of the Issuance Date,
    represents to the Company that such Holder is acquiring the Warrants for its
    own account and not with a view towards the distribution thereof or of the
    Warrant Shares. Upon exercise of this Warrant, the Holder shall, if so requested
    by the Company, confirm in writing, in a form satisfactory to the Company,
    that the Warrant Shares are being acquired for such Holder's own account and
    not with a view towards distribution or resale. Notwithstanding any provisions
    contained in this Warrant to the contrary, this Warrant and the related Warrant
    Shares shall not be transferable except upon the conditions specified in this
    Section 4, which conditions are intended, among other things, to insure compliance
    with the provisions of the Securities Act of 1933, as amended (the &quot;<u>Securities
    Act</u>&quot;), and applicable state law in respect of the transfer of this
    Warrant or such Warrant Shares. The Holder, by acceptance of this Warrant,
    agrees that the Holder will not transfer this Warrant or the related Warrant
    Shares (i) prior to delivery to the Company of an opinion of the Holder's
    counsel (as such opinion and such counsel are described in Section 4(b) hereof)
    and any other information requested by the Company, (ii) with respect to the
    Warrant Shares only, until registration of such Warrant Shares under the Securities
    Act has become effective, or (iii) after a sale of such Warrant or Warrant
    Shares has been consummated pursuant to Rule 144 or Rule 144A under the Securities
    Act.</font></p>
  <p><font size="3">(b) The Holder, by its acceptance hereof, agrees that prior
    to any transfer of this Warrant or of the related Warrant Shares (other than
    as permitted by Section 4(a) hereof or, with respect to the Warrant Shares
    only, pursuant to a registration under the Securities Act), the Holder will
    give written notice to the Company of its intention to effect such transfer,
    together with an opinion of such counsel for the Holder as shall be reasonably
    acceptable to the Company and/or any other information requested by the Company,
    to the effect that the proposed transfer of this Warrant and/or such Warrant
    Shares may be effected without registration or qualification under the Securities
    Act as then in effect or any federal or state securities law then in effect.
    Upon receiving such written notice and reasonably satisfactory opinion or
    other information, if so requested, the Company, as promptly as practicable,
    shall notify such Holder that such Holder may sell or otherwise dispose of
    this Warrant and/or such Warrant Shares, all in accordance with the terms
    of the notice delivered to the Company. If a determination has been made pursuant
    to this Section 4(b) that the opinion of counsel for the Holder or other information
    is not reasonably satisfactory to the Company, the Company shall so notify
    the Holder promptly with details thereof after such determination has been
    made.</font></p>
  <p><font size="3">(c) Each stock certificate representing Warrant Shares issued
    upon exercise or exchange of this Warrant shall bear the following legend
    unless the opinion of counsel referred to in Section 4(b) states such legend
    is not required:</font></p>
  <blockquote>
    <p><font size="3">&quot;THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
      SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
      PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR
      APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN
      OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY
      AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.&quot; </font></p>
  </blockquote>
</blockquote>
<blockquote>
  <blockquote>&nbsp;</blockquote>
</blockquote>
<p align="center"><font size="3">4<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3"><br>
    The Holder understands that the Company may place, and may instruct any transfer
    agent or depository for the Warrant Shares to place, a stop transfer notation
    in the securities records in respect of the Warrant Shares. The legend set
    forth above shall be removed and the Company shall issue a certificate without
    such legend to the holder of the Warrant Shares upon which it is stamped if,
    unless otherwise required by state securities laws, (i) while such Warrant
    Shares are registered for resale under the Securities Act, (ii) in connection
    with a sale, assignment or other transfer, such holder provides the Company
    with an opinion of counsel reasonably satisfactory to the Company, in a generally
    acceptable form, to the effect that such sale, assignment or transfer of the
    Warrant Shares may be made without registration under the applicable requirements
    of the Securities Act and that such legend is no longer required, or (iii)
    such holder provides the Company with reasonable assurance that the Warrant
    Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A
    promulgated pursuant to the Securities Act, and such holder delivers the legended
    Warrant Shares to the Company or the Transfer Agent.</font></p>
  <p><font size="3">5. <u>Reservation of Shares</u>. The Company shall at all
    times during the Exercise Period reserve and keep available out of its authorized
    and unissued Common Stock, solely for the purpose of providing for the exercise
    of the rights to purchase all Warrant Shares granted pursuant to the Warrants,
    such number of shares of Common Stock as shall, from time to time, be sufficient
    therefor. The Company covenants that all shares of Common Stock issuable upon
    exercise of this Warrant, upon receipt by the Company of the full Exercise
    Price therefor, shall be validly issued, fully paid, non-assessable, and free
    of preemptive rights. </font></p>
  <p><font size="3">6. <u>Exercise Price Adjustments</u>. The Exercise Price shall
    be subject to adjustment from time to time as follows: </font></p>
  <p><font size="3"> (a) In the event that the Company shall (A) pay a dividend
    or make a distribution, in shares of Common Stock, on any class of capital
    stock of the Company or any subsidiary which is not directly or indirectly
    wholly owned by the Company, (B) split or subdivide its outstanding Common
    Stock into a greater number of shares, or (C) combine its outstanding Common
    Stock into a smaller number of shares, then in each such case the Exercise
    Price in effect immediately prior thereto shall be adjusted so that the Holder
    of a Warrant thereafter surrendered for exercise shall be entitled to receive
    the number of shares of Common Stock that such Holder would have owned or
    have been entitled to receive after the occurrence of any of the events described
    above had such Warrant been exercised immediately prior to the occurrence
    of such event. An adjustment made pursuant to this Section 6(a) shall become
    effective immediately after the close of business on the record date in the
    case of a dividend or distribution (except as provided in Section 6(e) below)
    and shall become effective immediately after the close of business on the
    effective date in the case of such subdivision, split or combination, as the
    case may be.</font></p>
</blockquote>
<p>&nbsp;</p>
<p align="center"><font size="3">5<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3"><br>
    (b) In the event that, at any time as a result of an adjustment made pursuant
    to Section 6(a) above, the Holder of any Warrant thereafter surrendered for
    exercise shall become entitled to receive any shares of the Company other
    than shares of the Common Stock, thereafter the number of such other shares
    so receivable upon exercise of any such Warrant shall be subject to adjustment
    from time to time in a manner and on terms as nearly equivalent as practicable
    to the provisions with respect to the Common Stock contained in Section 6(a),
    and the other provisions of this Section 6 with respect to the Common Stock
    shall apply on like terms to any such other shares.<br>
    <br>
    (c) In case of any reclassification of the Common Stock (other than in a transaction
    to which Section 6(a) applies), any consolidation of the Company with, or
    merger of the Company into, any other entity, any merger of another entity
    into the Company (other than a merger that does not result in any reclassification,
    conversion, exchange or cancellation of outstanding shares of Common Stock
    of the Company), any sale or transfer of all or substantially all of the assets
    of the Company or any compulsory share exchange, pursuant to which share exchange
    the Common Stock is converted into other securities, cash or other property
    (each such event, a &quot;<u>Change of Control</u>&quot;), then this Warrant
    will terminate if not exercised by the Holder no later than the closing of
    such Change of Control.<br>
    <br>
    (d) If:<br>
    </font></p>
  <blockquote>
    <blockquote>
      <p><font size="3">(i) the Company shall take any action which would require
        an adjustment in the Exercise Price pursuant to Section 6(a); or <br>
        <br>
        (ii) the Company shall authorize the granting to the holders of its Common
        Stock generally of rights, warrants or options to subscribe for or purchase
        any shares of any class or any other rights, warrants or options; or <br>
        <br>
        (iii) there shall be any reclassification or change of the Common Stock
        (other than a subdivision or combination of its outstanding Common Stock
        or a change in par value) or any consolidation, merger or statutory share
        exchange to which the Company is a party and for which approval of any
        stockholders of the Company is required, or the sale or transfer of all
        or substantially all of the assets of the Company, or any other transaction
        that would constitute a Change of Control; or<br>
        <br>
        (iv) there shall be a voluntary or involuntary dissolution, liquidation
        or winding up of the Company; <br>
        </font></p>
    </blockquote>
  </blockquote>
</blockquote>
<p align="center"><font size="3">6<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3"><br>
    then, in each such case, the Company shall cause to be mailed to each Holder
    at such Holder's address as shown on the Warrant Register, as promptly as
    possible, but at least 20 days prior to the applicable date hereinafter specified,
    a notice stating (A) the date on which a record is to be taken for the purpose
    of such dividend, distribution or granting of rights, warrants or options,
    or, if a record is not to be taken, the date as of which the holders of Common
    Stock of record to be entitled to such dividend, distribution or rights, warrants
    or options are to be determined, or (B) the date on which such reclassification,
    change, consolidation, merger, statutory share exchange, sale, transfer, dissolution,
    liquidation or winding-up is expected to become effective or occur, and the
    date as of which it is expected that holders of Common Stock of record shall
    be entitled to exchange their shares of Common Stock for securities or cash
    or other property deliverable upon such reclassification, change, consolidation,
    merger, statutory share exchange, sale, transfer, dissolution, liquidation
    or winding up. However, the failure to give such notice or any defect therein
    shall not affect the legality or validity of the proceedings described in
    this Section 6(d).<br>
    <br>
    (e) Whenever the Exercise Price is adjusted as herein provided, the Company
    shall promptly mail to each Holder a certificate of an officer of the Company
    setting forth the Exercise Price after the adjustment and setting forth a
    brief statement of the facts requiring such adjustment and a computation thereof.
    <br>
    <br>
    (f) In any case in which Section 6(a) provides that an adjustment shall become
    effective immediately after a record date for an event and the date fixed
    for such adjustment pursuant to Section 6(a) occurs after such record date
    but before the occurrence of such event, the Company may defer until the actual
    occurrence of such event (i) issuing to the Holder of any Warrants exercised
    after such record date and before the occurrence of such event the additional
    shares of Common Stock issuable upon such conversion by reason of the adjustment
    required by such event over and above the Common Stock issuable upon such
    exercise before giving effect to such adjustment, and (ii) paying to such
    holder any amount in cash in lieu of any fraction pursuant to Section 6(i).<br>
    <br>
    (g) In case the Company shall take any action affecting the Common Stock,
    other than actions described in this Section 6, which in the reasonable opinion
    of the Board of Directors of the Company (the &quot;Board&quot;) would materially
    adversely affect the exercise right of the Holders, the Exercise Price may
    be adjusted, to the extent permitted by law, in such manner, if any, and at
    such time, as the Board may determine to be equitable in the circumstances;
    provided, however, that in no event shall the Board be required to take any
    such action. </font></p>
  <p><font size="3">(h) Upon each adjustment of the Exercise Price pursuant to
    this Section 6, this Warrant shall thereafter evidence the right to purchase,
    at the adjusted Exercise Price, that number of shares (calculated to the nearest
    thousandth) obtained by dividing (i) the product obtained by multiplying the
    number of shares purchasable upon exercise of this Warrant prior to adjustment
    of the number of shares by the Exercise Price in effect prior to adjustment
    of the Exercise Price, by (ii) the Exercise Price in effect after such adjustment
    of the Exercise Price.</font></p>
  <p><font size="3">(i) The Company shall not be required to issue fractions of
    shares of Common Stock or other capital stock of the Company upon the exercise
    of this Warrant. If any fraction of a share would be issuable on the exercise
    of this Warrant (or specified portions thereof), the Company shall purchase
    such fraction for an amount in cash equal to the same fraction of the current
    market price of such share of Common Stock on the date of exercise of this
    Warrant. </font></p>
  <blockquote>
    <blockquote>&nbsp;</blockquote>
  </blockquote>
</blockquote>
<p align="center"><font size="3">7<br>
  </font></p>
<hr>
<blockquote>
  <p><font size="3"><br>
    7. <u>Anti-dilution</u>. The Exercise Price shall be further subject to adjustment
    as follows: </font></p>
  <p><font size="3">(a) For purposes of this Section 7, &quot;<u>New Securities</u>&quot;
    shall mean all shares of Common Stock, convertible securities, options or
    warrants issued by the Company within twelve (12) months after the Issuance
    Date (the &quot;<u>Anti-dilution Period</u>&quot;), other than issuances or
    deemed issuances of:</font></p>
  <blockquote>
    <blockquote>
      <p><font size="3">(i) shares of capital stock of the Company and all warrants
        (and the securities issuable upon the exercise thereof) issued in accordance
        with the Securities Purchase Agreement by and among the Company and certain
        other parties, dated as of May 18, 2009 (the &quot;<u>Purchase Agreement</u>&quot;),
        and all Warrants issued to the Holder pursuant to the Engagement Letter;</font></p>
      <p><font size="3">(ii) shares of capital stock of the Company and options,
        warrants or other rights to purchase capital stock of the Company issued
        or issuable to employees, officers or directors of, or consultants or
        advisors to the Company or any subsidiary pursuant to stock grants, restricted
        stock purchase agreements, option plans, purchase plans, incentive programs
        or similar arrangements;</font></p>
      <p><font size="3">(iii) shares of capital stock of the Company issued in
        connection with any pro rata stock split or stock dividend of the Company
        or recapitalization by the Company;</font></p>
      <p><font size="3">(iv) shares of capital stock, or options or warrants to
        purchase capital stock, issued to a strategic investor in connection with
        a strategic commercial agreement as approved by the Board;</font></p>
      <p><font size="3">(v) shares of capital stock, or options or warrants to
        purchase capital stock, issued pursuant to a commercial borrowing, secured
        lending or lease financing transaction approved by the Board;</font></p>
      <p><font size="3">(vi) shares of capital stock, or options or warrants to
        purchase capital stock, issued or issuable pursuant to the acquisition
        of another corporation by the Company by merger, purchase of substantially
        all of the assets or other reorganization or to a joint venture agreement;</font></p>
    </blockquote>
  </blockquote>
</blockquote>
<p>&nbsp;</p>
<p align="center"><font size="3">8<br>
  </font></p>
<hr>
<blockquote>
  <blockquote>
    <blockquote>
      <p><font size="3"><br>
        (vii) shares of capital stock issued in an underwritten public securities
        offering pursuant to a registration statement filed under the Securities
        Act;</font></p>
      <p><font size="3">(viii) shares of capital stock, or options or warrants
        to purchase capital stock, issued or issuable to suppliers or third party
        service providers in connection with the provision of goods or services
        pursuant to transactions approved by the Board;</font></p>
      <p><font size="3">(ix) shares of capital stock, or options or warrants to
        purchase capital stock, issued or issuable in connection with any settlement
        of any action, suit, proceeding or litigation approved by the Board;</font></p>
      <p><font size="3">(x) shares of capital stock, or options or warrants to
        purchase capital stock, issued or issuable pursuant to a transaction approved
        by the holders of warrants representing a majority of the Common Stock
        issuable upon exercise of all then outstanding warrants issued pursuant
        to the transactions under the Purchase Agreement (including the placement
        agent warrants); and</font></p>
      <p><font size="3">(xi) securities issuable upon conversion or exercise of
        the securities set forth in paragraphs (i) - (x) above. </font></p>
    </blockquote>
  </blockquote>
  <p><font size="3">(b) For purposes of this Section 7, the consideration received
    by the Company for the issuance of any New Securities shall be computed as
    follows:<br>
    </font></p>
  <blockquote>
    <blockquote>
      <p><font size="3">(i) Cash and property consideration shall:<br>
        </font></p>
      <blockquote>
        <p><font size="3">(1) insofar as it consists of cash, be computed at the
          aggregate amount of cash received by the Company before deducting any
          reasonable discounts, commissions or other expenses allowed, paid or
          incurred by the Company for any underwriting or otherwise in connection
          with such issuance;<br>
          <br>
          (2) insofar as it consists of property other than cash, be computed
          at the fair market value thereof at the time of such issue, as determined
          in good faith by the Board; and<br>
          <br>
          (3) in the event New Securities are issued together with other shares
          or securities or other assets of the Company for consideration which
          covers both, be the proportion of such consideration so received, computed
          as provided in clauses (a) and (b) above, as reasonably determined in
          good faith by the Board.</font></p>
        <p>&nbsp; </p>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p align="center"><font size="3">9<br>
  </font></p>
<hr>
<blockquote>
  <blockquote>
    <blockquote>
      <p><font size="3"><br>
        (ii) The consideration per share received by the Company for the issuance
        of options or convertible securities shall be determined by dividing<br>
        </font></p>
      <blockquote>
        <p><font size="3">x: the total amount, if any, received or receivable
          by the Company as consideration for the issue of such options or convertible
          securities, plus the minimum aggregate amount of additional consideration
          (as set forth in the instruments relating thereto, without regard to
          any provision contained therein for a subsequent adjustment of such
          consideration) payable to the Company upon the exercise of such options
          or the conversion or exchange of such convertible securities, or in
          the case of options for convertible securities, the exercise of such
          options for convertible securities and the conversion or exchange of
          such convertible securities by<br>
          </font></p>
        <p><font size="3"> y: the maximum number of shares of Common Stock (as
          set forth in the instruments relating thereto, without regard to any
          provision contained therein for a subsequent adjustment of such number)
          issuable upon the exercise of such options or the conversion or exchange
          of such convertible securities.</font></p>
      </blockquote>
    </blockquote>
  </blockquote>
  <p><font size="3"> (c) In case the Company shall issue or sell any New Securities
    during the Anti-dilution Period for a consideration per share less than the
    Exercise Price then in effect (the &quot;New Price&quot;), then upon such
    issuance or sale, the Exercise Price shall be adjusted to equal such New Price.</font></p>
  <p><font size="3"> 8. <u>Adjustment of Exercise Price for Failure of Registration
    Statement to Become Effective</u>. In the event the Registration Statement
    (as defined in the Registration Rights Agreement) is not declared effective
    by the Securities and Exchange Commission on or prior to the Required Effective
    Date (as defined in the Registration Rights Agreement), then the Exercise
    Price then in effect shall be reduced by two percent (2%) of the original
    Exercise Price (as adjusted in accordance with the terms of this Warrant)
    for each full month after the Required Effective Date that the Registration
    Statement has failed to become effective, subject to a maximum reduction of
    six percent (6%) of the original Exercise Price (as adjusted in accordance
    with the terms of this Warrant).</font></p>
  <p><font size="3">9. <u>Transfer Taxes</u>. The issuance of any shares or other
    securities upon the exercise of this Warrant, and the delivery of certificates
    or other instruments representing such shares or other securities, shall be
    made without charge to the Holder for any tax or other charge in respect of
    such issuance. The Company shall not, however, be required to pay any tax
    which may be payable in respect of any transfer involved in the issue and
    delivery of any certificate in a name other than that of the Holder, and the
    Company shall not be required to issue or deliver any such certificate unless
    and until the person or persons requesting the issue thereof shall have paid
    to the Company the amount of such tax or shall have established to the satisfaction
    of the Company that such tax has been paid.</font></p>
  <p>&nbsp;</p>
</blockquote>
<p align="center"><font size="3">10<br>
  </font></p>
<hr>
<p><font size="3"><br>
  10. <u>Loss or Mutilation of Warrant</u>. Upon receipt of evidence reasonably
  satisfactory to the Company of the loss, theft, destruction, or mutilation of
  any Warrant (and upon surrender of any Warrant if mutilated), and upon reimbursement
  of the Company's reasonable incidental expenses and the execution of an indemnification
  undertaking in a form reasonably acceptable to the Company, the Company shall
  execute and deliver to the Holder thereof a new Warrant of like tenor, and denomination.</font></p>
<p><font size="3">11. <u>No Rights as a Stockholder</u>. The Holder of any Warrant
  shall not have, solely on account of such status, any rights of a stockholder
  of the Company, either at law or in equity, or to any notice of meetings of
  stockholders or of any other proceedings of the Company, except as provided
  in this Warrant.</font></p>
<p><font size="3">12. <u>Governing Law</u>. This Warrant shall be construed in
  accordance with the laws of the State of California applicable to contracts
  made and performed within such State, without regard to principles of conflicts
  of law.</font></p>
<p align="center">&nbsp;</p>
<p align="center"><font size="3">* * *</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font size="3">11<br>
  </font></p>
<hr>
<p>&nbsp;</p>
<table cols=2 width="89%">
  <tr>
    <td width="38%"><font face="Times New Roman, Times, serif" size="3">Dated:
      May __, 2009 </font></td>
    <td width="21%">&nbsp;</td>
    <td width="41%"><b>SOCKET MOBILE, INC.</b></td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="21%">&nbsp;</td>
    <td width="41%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="21%">&nbsp;</td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">By:_____________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%" height="45">&nbsp;</td>
    <td width="21%" height="45">
      <center>
        <font face="Times New Roman, Times, serif" size="3">&nbsp; </font>
      </center>
    </td>
    <td valign=top align=middle width="41%" height="45">
      <div align=left><font face="Times New Roman, Times, serif" size="3">Name:
        David W. Dunlap<br>
        Title: Chief Financial Officer </font></div>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align="center"><font size="3"><br>
  FORM OF ASSIGNMENT</font></p>
<p><font size="3"><br>
  (To be executed by the registered holder if such holder desires to transfer
  the attached Warrant.)</font></p>
<p><font size="3"> FOR VALUE RECEIVED, hereby sells, assigns, and transfers unto
  __________________ a Warrant to purchase __________ shares of Common Stock,
  par value $0.001 per share, of Socket Mobile, Inc. (the &quot;<u>Company</u>&quot;),
  together with all right, title, and interest therein, and does hereby irrevocably
  constitute and appoint attorney to transfer such Warrant on the books of the
  Company, with full power of substitution.</font></p>
<table cols=2 width="89%" border="0">
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">Dated:___________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">
      <center>
      </center>
    </td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">By:_____________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%" height="19">&nbsp;</td>
    <td width="32%" height="19">
      <center>
      </center>
    </td>
    <td valign=top align=middle width="30%" height="19">
      <blockquote>
        <blockquote>
          <div align="left"><font face="Times New Roman, Times, serif" size="3">Signature</font></div>
        </blockquote>
      </blockquote>
    </td>
  </tr>
</table>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                    <blockquote>
                      <blockquote>
                        <blockquote>
                          <blockquote>
                            <blockquote>
                              <blockquote>
                                <blockquote>
                                  <blockquote>
                                    <blockquote>
                                      <blockquote>
                                        <blockquote>
                                          <blockquote>
                                            <blockquote>
                                              <blockquote>
                                                <blockquote>
                                                  <blockquote>
                                                    <blockquote>
                                                      <p>&nbsp; </p>
                                                    </blockquote>
                                                  </blockquote>
                                                </blockquote>
                                              </blockquote>
                                            </blockquote>
                                          </blockquote>
                                        </blockquote>
                                      </blockquote>
                                    </blockquote>
                                  </blockquote>
                                </blockquote>
                              </blockquote>
                            </blockquote>
                          </blockquote>
                        </blockquote>
                      </blockquote>
                    </blockquote>
                  </blockquote>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
<p><font size="3"> The signature on the foregoing Assignment must correspond to
  the name as written upon the face of this Warrant in every particular, without
  alteration or enlargement or any change whatsoever. </font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p align="left"><font size="3"><br>
  To: Socket Mobile, Inc.<br>
  39700 Eureka Drive<br>
  Newark, California 94560<br>
  Attention: Chief Financial Officer<br>
  </font></p>
<p align="center"><font size="3"><br>
  <br>
  NOTICE OF EXERCISE</font></p>
<p><font size="3"> The undersigned hereby exercises its rights to purchase _______
  Warrant Shares covered by the within Warrant and tenders payment herewith in
  the amount of $_________ by tendering cash or delivering a certified check or
  bank cashier's check, payable to the order of the Company in accordance with
  the terms thereof, and requests that certificates for such securities be issued
  in the name of, and delivered to:</font></p>
<p align="center"><font size="3">_______________________________________</font></p>
<p align="center"><font size="3">_______________________________________</font></p>
<p align="center"><font size="3">_______________________________________</font></p>
<p align="center"><font size="3">(Print Name, Address and Social Security<br>
  or Tax Identification Number)</font></p>
<p><font size="3">and, if such number of Warrant Shares shall not be all the Warrant
  Shares covered by the within Warrant, that a new Warrant for the balance of
  the Warrant Shares covered by the within Warrant be registered in the name of,
  and delivered to, the undersigned at the address of record of the undersigned
  upon the Warrant Register.</font></p>
<p><font size="3">The undersigned hereby represents and warrants that the aforesaid
  Warrant Shares are being acquired for the account of the undersigned and not
  with a view to, or for resale, in connection with the distribution thereof,
  and that the undersigned has no present intention of distributing or reselling
  such shares. All representations and warranties of the undersigned set forth
  in the Warrant are true and correct as of the date hereof.</font></p>
<p>&nbsp; </p>
<table cols=2 width="89%" border="0">
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">Dated:___________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%"><font face="Times New Roman, Times, serif" size="3">By:_____________________&nbsp;</font></td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">
      <blockquote>
        <blockquote>
          <p><font face="Times New Roman, Times, serif" size="3">Print Name</font></p>
        </blockquote>
      </blockquote>
    </td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td width="38%">&nbsp;</td>
    <td width="32%">
      <center>
      </center>
    </td>
    <td width="30%">
      <div align=left><font face="Times New Roman, Times, serif" size="3">________________________&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="38%" height="19">&nbsp;</td>
    <td width="32%" height="19">
      <center>
      </center>
    </td>
    <td valign=top align=middle width="30%" height="19">
      <blockquote>
        <blockquote>
          <div align="left"><font face="Times New Roman, Times, serif" size="3">Signature</font></div>
        </blockquote>
      </blockquote>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
<p><font size="3">Address: </font></p>
<p align="left"><font size="3">_______________________________________</font></p>
<p align="left"><font size="3">_______________________________________</font></p>
<p align="left"><font size="3">_______________________________________</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>6
<FILENAME>ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
  99.1</b></font></p>
<p>&nbsp;</p>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Media Contact:</u></b></font></td>
    <td width=488 height=20><font size="3"></font></td>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Editorial
      Contact:</u></b></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif" size="3">Krista
      Rogers</font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">Catherine Koo or Nicole Wasowski</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font size="3">Marketing Communications Specialist</font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">Lewis PR</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font size="3">(510) 933-3055</font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">(415) 992-4400</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3">krista@socketmobile.com</font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">socketmobile@lewispr.com</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3"></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Socket
      Investor Contact:</u></b></font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3"><b><u>Investor
      Relations Contact:</u></b></font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=25><font face="Times New Roman, Times, serif" size="3">David
      Dunlap</font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">Todd Kehrli or Jim Byers</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font size="3">Chief Financial Officer</font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">MKR Group, Inc.</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font size="3">(510) 933-3035</font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">(323) 468-2300</font></td>
  </tr>
  <tr valign=bottom>
    <td width=488 height=20><font face="Times New Roman, Times, serif" size="3">dave@socketmobile.com
      </font></td>
    <td width=564 height=20><font size="3"></font></td>
    <td width=564 height=20><font size="3">sckt@mkr-group.com</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b><font size="5"><br>
  Socket Mobile Strengthens Balance Sheet with Common Stock<br>
  </font></b></font><font face="Times New Roman, Times, serif" size="3"><b><font size="5">Private
  Placement of $1.05 Million</font></b><br>
  <font size="4"><b><br>
  </b></font></font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"> </font><font face="Times New Roman, Times, serif" size="3"><b>
  <br>
  NEWARK, Calif., - May 20, 2009</b> - Socket Mobile, Inc. (NASDAQ: SCKT) today
  announced it has entered into a definitive agreement to complete a common stock
  private placement of approximately $1,052,215. The proceeds will be used to
  increase the Company's working capital balances. Net proceeds from the financing
  after placement agent costs and expenses are expected to be approximately $999,604.
  </font></p>
<p><font size="3">Charlie Bass, Chairman of the Board of the Company, and Kevin
  Mills, President and CEO of the Company, are participating in the private placement.
  A total of 250,000 shares of common stock will be issued to these management
  participants at $2.00 per share, the closing bid price of the common stock on
  the Nasdaq Capital Market one day prior to the execution of the definitive agreement,
  for a total investment by management of $500,000. </font></p>
<p><font size="3">The Company will also issue 306,786 shares of common stock to
  accredited investors not affiliated with the Company at $1.80 per share, 90
  percent of the closing bid price of the common stock on the Nasdaq Capital Market
  one day prior to the execution of the definitive agreement, for a total investment
  by accredited investors of approximately $552,215. These accredited investors
  will also receive five-year warrants to purchase an additional 61,356 shares
  of common stock at $1.80 per share. </font></p>
<p> <br>
</p>
<hr>
<p><br>
  <font size="3">Security Research Associates, an investment banking firm, is
  acting as placement agent for the transaction. In addition to receiving a cash
  placement agent fee, Security Research Associates will receive a five-year warrant
  to purchase 27,839 shares of common stock at $1.80 per share. The Company is
  obligated to file a registration statement with the Securities Exchange Commission
  registering the resale of the shares of common stock sold in the private placement
  and the common stock issuable upon exercise of the accredited investor and placement
  agent warrants. </font></p>
<p><font size="3"><br>
  <b>About Socket Mobile, Inc.</b></font></p>
<p><font size="3">Socket makes mobility computing and productivity work. The Company
  is a one-stop supplier of mobile computing hardware systems, offering a handheld
  mobile computer specifically designed for business mobility use and an extensive
  portfolio of essential mobile data collection and networking peripherals that
  enable mobile automation and productivity increases. The Company also offers
  OEM solutions. Socket is headquartered in Newark, Calif. and can be reached
  at 510-933-3000 or www.socketmobile.com</font></p>
<p><font size="3"><b><br>
  Cautionary Statement Regarding Forward-Looking Statements </b><br>
  <br>
  This press release includes forward-looking statements which may affect Socket's
  future operating results and financial position. Such statements, including,
  but not limited to, those regarding the anticipated closing of the private placement
  and the anticipated use of the net proceeds therefrom, are subject to risks
  and uncertainties that could cause Socket's actual results and financial position
  to differ materially. Some of these risks and uncertainties include the failure
  of the investors to comply in all material respects with all covenants and conditions
  required by the definitive agreement (including the investors' obligation to
  deliver the purchase price in connection with the private placement) and other
  risks and uncertainties described under "Risk Factors" in Socket's Securities
  and Exchange Commission Filings, including its annual report on Form 10-K for
  the year ended December 31, 2008. Socket assumes no responsibility to update
  or revise any forward-looking statements contained in this press release to
  reflect events, trends or circumstances after the date of this press release.</font></p>
<p><i><font size="2">Socket is a registered trademark of Socket Mobile, Inc. All
  other trademarks and trade names contained herein may be those of their respective
  owners. &copy; 2009 Socket Mobile, Inc. All rights reserved. </font></i> <br>
</p>
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