COMMON STOCK PURCHASE AGREEMENT

Exhibit 10.1

                        COMMON STOCK PURCHASE AGREEMENT

     COMMON  STOCK  PURCHASE  AGREEMENT (the "Agreement"), dated as of August 6,
2009, by and between COMPETITIVE TECHNOLOGIES, INC., a Delaware corporation (the
"Company,"  as  further defined in Section 10), and FUSION CAPITAL FUND II, LLC,
an  Illinois  limited  liability  company (the "Buyer").  Capitalized terms used
herein  and  not  otherwise  defined  herein  are  defined in Section 10 hereof.

                                    WHEREAS:

     Subject  to  the  terms  and  conditions  set  forth in this Agreement, the
Company  wishes  to  sell  to  the  Buyer,  and the Buyer wishes to buy from the
Company, up to Eight Million Dollars ($8,000,000) of the Company's common stock,
par  value  $0.01 per share (the "Common Stock").  The shares of Common Stock to
be  purchased  hereunder  are  referred  to  herein  as  the  "Purchase Shares."

     NOW  THEREFORE,  the  Company  and  the  Buyer  hereby  agree  as  follows:

     1.     PURCHASE  OF  COMMON  STOCK.

     Subject  to  the  terms  and  conditions  set  forth in this Agreement, the
Company  has the right to sell to the Buyer, and the Buyer has the obligation to
purchase  from  the  Company,  Purchase  Shares  as  follows:

     (a)     Commencement  of  Purchases of Common Stock.  The purchase and sale
of  Purchase Shares hereunder shall occur from time to time upon written notices
by  the  Company  to  the  Buyer on the terms and conditions as set forth herein
following  the  satisfaction of the conditions (the "Commencement") as set forth
in  Sections  6  and  7 below  (the date of satisfaction of such conditions, the
"Commencement  Date").

     (b)     The Company's Right to Require Purchases.  Any time on or after the
Commencement  Date,  the  Company shall have the right but not the obligation to
direct the Buyer by its delivery to the Buyer of Base Purchase Notices from time
to  time  to  buy  Purchase Shares (each such purchase a "Base Purchase") in any
amount  up  to  Seventy-Five Thousand Dollars ($75,000) per Base Purchase Notice
(the  "Base  Purchase  Amount") at the Purchase Price on the Purchase Date.  The
Company  may  deliver  multiple Base Purchase Notices to the Buyer so long as at
least  two (2) Business Days have passed since the most recent Base Purchase was
completed.  Notwithstanding  the forgoing, any time on or after the Commencement
Date,  the  Company  shall  also  have  the  right but not the obligation by its
delivery  to the Buyer of Block Purchase Notices from time to time to direct the
Buyer  to  buy  Purchase  Shares  (each such purchase a "Block Purchase") in any
amount  up  to Two Million Dollars ($2,000,000) per Block Purchase Notice at the
Block  Purchase  Price  on  the  Purchase  Date as provided herein.  For a Block
Purchase  Notice to be valid the following conditions must be met: (1) the Block
Purchase  Amount  shall  not  exceed One Hundred Thousand Dollars ($100,000) per
Block  Purchase  Notice, (2) the Company must deliver the Purchase Shares before
11:00  a.m.  eastern time on the Purchase Date and (3) the Closing Sale Price of
the  Common  Stock  must not be below $2.00 (subject to equitable adjustment for
any  reorganization,  recapitalization,  non-cash dividend, stock split or other
similar  transaction)  on  the  Purchase  Date  The Block Purchase Amount may be
increased  to  up  to  Two  Hundred  Fifty Thousand Dollars ($250,000) per Block
Purchase Notice if the Closing Sale Price of the Common Stock is not below $4.00
(subject  to  equitable  adjustment  for  any  reorganization, recapitalization,
non-cash  dividend,  stock  split  or other similar transaction) on the Purchase
Date.  The  Block  Purchase  Amount  may  be  increased  to  up  to  Five

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Hundred  Thousand  Dollars  ($500,000)  per Block Purchase Notice if the Closing
Sale  Price  of  the  Common  Stock  is  not  below  $6.00 (subject to equitable
adjustment  for  any  reorganization, recapitalization, non-cash dividend, stock
split  or  other  similar transaction) on the Purchase Date.  The Block Purchase
Amount  may  be  increased  to  up to One Million Dollars ($1,000,000) per Block
Purchase  Notice  if  the  Closing  Sale  Price of the Common Stock is not below
$10.00  (subject  to  equitable  adjustment  for  any  reorganization,
recapitalization,  non-cash  dividend, stock split or other similar transaction)
on  the  Purchase Date.  The Block Purchase Amount may be increased to up to Two
Million Dollars ($2,000,000) per Block Purchase Notice if the Closing Sale Price
of the Common Stock is not below $20.00 (subject to equitable adjustment for any
reorganization,  recapitalization,  non-cash  dividend,  stock  split  or  other
similar  transaction)  on  the  Purchase  Date.  As used herein, the term "Block
Purchase Price" shall mean the lesser of (i) the lowest Sale Price of the Common
Stock on the Purchase Date or (ii) the lowest Purchase Price during the previous
ten  (10)  Business  Days prior to the date that the valid Block Purchase Notice
was  received  by  the  Buyer.  However, if at any time on the Purchase Date the
Closing  Sale  Price  of the Common Stock is below the applicable Block Purchase
threshold  price,  such Block Purchase shall be void and the Buyer's obligations
to  buy  Purchase  Shares  in  respect  of  that  Block Purchase Notice shall be
terminated.  Thereafter,  the  Company  shall  again  have the right to submit a
Block  Purchase  Notice  as set forth herein by delivery of a new Block Purchase
Notice.  The Company may deliver multiple Block Purchase Notices to the Buyer so
long  as  at least two (2) Business Days have passed since the most recent Block
Purchase  was  completed.

     (c)     Payment for Purchase Shares.  The Buyer shall pay to the Company an
amount equal to the Purchase Amount with respect to such Purchase Shares as full
payment  for  such  Purchase  Shares  via wire transfer of immediately available
funds  on  the same Business Day that the Buyer receives such Purchase Shares if
they  are received by the Buyer before 11:00 a.m. eastern time or if received by
the  Buyer  after  11:00  a.m. eastern time, the next Business Day.  The Company
shall  not  issue any fraction of a share of Common Stock upon any purchase.  If
the  issuance  would  result  in the issuance of a fraction of a share of Common
Stock,  the  Company  shall round such fraction of a share of Common Stock up or
down  to  the nearest whole share.  All payments made under this Agreement shall
be  made  in  lawful  money  of the United States of America or wire transfer of
immediately available funds to such account as the Company may from time to time
designate by written notice in accordance with the provisions of this Agreement.
Whenever any amount expressed to be due by the terms of this Agreement is due on
any  day  that  is not a Business Day, the same shall instead be due on the next
succeeding  day  that  is  a  Business  Day.

     (d)     Purchase  Price  Floor.  The Company and the Buyer shall not effect
any sales under this Agreement on any Purchase Date where the Purchase Price for
any  purchases  of  Purchase Shares would be less than the Floor Price.   "Floor
Price"  means  $1.00,  which  shall  be  appropriately  adjusted  for  any
reorganization,  recapitalization,  non-cash  dividend,  stock  split  or  other
similar  transaction.

     (e)     Records  of  Purchases.  The  Buyer  and  the  Company  shall  each
maintain records showing the remaining Available Amount at any give time and the
dates  and  Purchase  Amounts  for each purchase or shall use such other method,
reasonably  satisfactory  to  the  Buyer  and  the  Company.

     (f)     Taxes.  The  Company  shall  pay  any  and  all  transfer, stamp or
similar  taxes  that may be payable with respect to the issuance and delivery of
any  shares  of  Common  Stock  to  the  Buyer  made  under  this  Agreement.

     (g)    Compliance with Principal Market Rules. The Company shall not effect
any  sale  under  this  Agreement  and the Buyer shall not have the right or the
obligation to purchase shares of Common Stock under this Agreement to the extent
that  after  giving  effect  to  such  purchase  the  "Exchange  Cap"

                                     -2-
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shall  be deemed to be reached.  The "Exchange Cap" shall be deemed to have been
reached  if,  at any time prior to the shareholders of the Company approving the
transaction  contemplated  by  this  Agreement,  upon  a  purchase  under  this
Agreement,  the  Purchase Shares and Commitment Shares issuable pursuant to such
purchase  would,  together  with  all  Purchase  Shares  and  Commitment  Shares
previously  issued under this Agreement, exceed 1,975,305 shares of Common Stock
(19.99%  of  the  9,881,466 outstanding shares of Common Stock as of the date of
this  Agreement).  The Company may, but shall be under no obligation to, request
its shareholders to approve the transaction contemplated by this Agreement.  The
Company  shall  not  be  required to issue any shares of Common Stock under this
Agreement  if  such  issuance  would  breach the Company's obligations under the
rules  or  regulations  of  the  Principal  Market.


     2.     BUYER'S  REPRESENTATIONS  AND  WARRANTIES.

     The Buyer represents and warrants to the Company that as of the date hereof
and  as  of  the  Commencement  Date:

     (a)     Investment  Purpose.  The Buyer is entering into this Agreement and
acquiring  the  Commitment  Shares,  (as defined in Section 4(e) hereof) and the
Purchase  Shares  (collectively referred to herein as the "Securities"), for its
own  account  for  investment only and not with a view towards, or for resale in
connection  with,  the public sale or distribution thereof; provided however, by
making  the  representations herein, the Buyer does not agree to hold any of the
Securities  for  any  minimum  or other specific term other than as set forth in
Section  4(e)  with  respect  to  the  Commitment  Shares.

     (b)     Accredited  Investor Status.  The Buyer is an "accredited investor"
as  that  term  is  defined  in  Rule  501(a)(3)  of  Regulation  D.

     (c)     Reliance  on Exemptions.  The Buyer understands that the Securities
are  being  offered  and  sold to it in reliance on specific exemptions from the
registration requirements of United States federal and state securities laws and
that  the  Company  is  relying  in part upon the truth and accuracy of, and the
Buyer's  compliance  with,  the  representations,  warranties,  agreements,
acknowledgments  and  understandings  of  the Buyer set forth herein in order to
determine  the  availability of such exemptions and the eligibility of the Buyer
to  acquire  the  Securities.

     (d)     Information.  The  Buyer  has  been  furnished  with  all materials
relating  to  the business, finances and operations of the Company and materials
relating  to  the  offer  and  sale  of the Securities that have been reasonably
requested  by  the  Buyer,  including, without limitation, the SEC Documents (as
defined  in  Section 3(f) hereof).  The Buyer understands that its investment in
the  Securities  involves  a high degree of risk.  The Buyer (i) is able to bear
the  economic  risk  of  an investment in the Securities including a total loss,
(ii) has such knowledge and experience in financial and business matters that it
is  capable of evaluating the merits and risks of the proposed investment in the
Securities  and  (iii)  has  had  an opportunity to ask questions of and receive
answers  from the officers of the Company concerning the financial condition and
business  of  the  Company  and  others  matters related to an investment in the
Securities.  Neither  such  inquiries nor any other due diligence investigations
conducted  by the Buyer or its representatives shall modify, amend or affect the
Buyer's  right to rely on the Company's representations and warranties contained
in  Section 3 below.  The Buyer has sought such accounting, legal and tax advice
as  it  has  considered  necessary  to make an informed investment decision with
respect  to  its  acquisition  of  the  Securities.

                                     -3-
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     (e)     No Governmental Review. The Buyer understands that no United States
federal  or  state  agency  or  any  other government or governmental agency has
passed  on  or  made  any recommendation or endorsement of the Securities or the
fairness  or  suitability  of  the  investment  in  the Securities nor have such
authorities  passed  upon  or  endorsed  the  merits  of  the  offering  of  the
Securities.

     (f)     Transfer or Sale.  The Buyer understands that except as provided in
the  Registration  Rights Agreement (as defined in Section 4(a) hereof): (i) the
Securities  have not been and are not being registered under the 1933 Act or any
state  securities  laws,  and  may  not  be  offered for sale, sold, assigned or
transferred  unless  (A)  subsequently registered thereunder or (B) an exemption
exists  permitting  such  Securities to be sold, assigned or transferred without
such  registration; (ii) any sale of the Securities made in reliance on Rule 144
may  be  made only in accordance with the terms of Rule 144 and further, if Rule
144  is  not  applicable,  any  resale of the  Securities under circumstances in
which  the seller (or the person through whom the sale is made) may be deemed to
be  an  underwriter  (as  that  term  is  defined  in  the 1933 Act) may require
compliance  with  some  other  exemption  under  the  1933  Act or the rules and
regulations  of  the SEC thereunder; and (iii) neither the Company nor any other
person  is under any obligation to register the Securities under the 1933 Act or
any  state  securities  laws  or  to comply with the terms and conditions of any
exemption  thereunder.

     (g)     Validity;  Enforcement.  This  Agreement  has been duly and validly
authorized,  executed  and  delivered  on behalf of the Buyer and is a valid and
binding  agreement of the Buyer enforceable against the Buyer in accordance with
its  terms,  subject as to enforceability to general principles of equity and to
applicable  bankruptcy,  insolvency, reorganization, moratorium, liquidation and
other  similar  laws  relating  to,  or  affecting generally, the enforcement of
applicable  creditors'  rights  and  remedies.

     (h)     Residency.  The  Buyer  is  a  resident  of  the State of Illinois.

     (i)     No  Prior  Short Selling.  The Buyer represents and warrants to the
Company  that  at  no  time  prior  to the date of this Agreement has any of the
Buyer,  its agents, representatives or affiliates engaged in or effected, in any
manner whatsoever, directly or indirectly, any (i) "short sale" (as such term is
defined  in  Section 242.200 of Regulation SHO of the Securities Exchange Act of
1934,  as  amended  (the  "1934  Act"))  of  the  Common  Stock  or (ii) hedging
transaction,  which  establishes a net short position with respect to the Common
Stock.


     3.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.

     The Company represents and warrants to the Buyer that as of the date hereof
and  as  of  the  Commencement  Date:

     (a)     Organization and Qualification.  The Company and its "Subsidiaries"
(which  for  purposes  of  this Agreement means any entity in which the Company,
directly or indirectly, owns 50% or more of the voting stock or capital stock or
other  similar  equity  interests)  are  corporations duly organized and validly
existing  in  good standing under the laws of the jurisdiction in which they are
incorporated,  and have the requisite corporate power and authority to own their
properties  and  to carry on their business as now being conducted.  Each of the
Company  and  its  Subsidiaries is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which its ownership of
property  or the nature of the business conducted by it makes such qualification
necessary,  except  to  the  extent that the failure to be so qualified or be in
good  standing  could  not  reasonably  be  expected  to have a Material Adverse
Effect.  As used in this Agreement, "Material Adverse Effect" means any material
adverse  effect  on  any  of:  (i) the business, properties, assets, operations,
results  of  operations  or  financial  condition  of  the

                                     -4-
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Company and its Subsidiaries, if any, taken as a whole, or (ii) the authority or
ability  of  the  Company  to  perform  its  obligations  under  the Transaction
Documents  (as defined in Section 3(b) hereof).  The Company has no Subsidiaries
except  as  set  forth  on  Schedule  3(a).

     (b)     Authorization;  Enforcement;  Validity.  (i)  The  Company  has the
requisite  corporate  power  and  authority  to  enter  into  and  perform  its
obligations under this Agreement, the Registration Rights Agreement  and each of
the  other  agreements  entered into by the parties on the Commencement Date and
attached  hereto  as  exhibits to this Agreement (collectively, the "Transaction
Documents"), and to issue the Securities in accordance with the terms hereof and
thereof,  (ii)  the  execution  and delivery of the Transaction Documents by the
Company  and  the consummation by it of the transactions contemplated hereby and
thereby, including without limitation, the issuance of the Commitment Shares and
the  reservation for issuance and the issuance of the Purchase Shares (up to the
Exchange  Cap)  issuable  under this Agreement, have been duly authorized by the
Company's Board of Directors and no further consent or authorization is required
by the Company, its Board of Directors or its shareholders, (iii) this Agreement
has been, and each other Transaction Document shall be on the Commencement Date,
duly  executed and delivered by the Company and (iv) this Agreement constitutes,
and each other Transaction Document upon its execution on behalf of the Company,
shall  constitute,  the valid and binding obligations of the Company enforceable
against  the  Company  in  accordance  with  their  terms,  except  as  such
enforceability  may  be  limited  by  general principles of equity or applicable
bankruptcy,  insolvency, reorganization, moratorium, liquidation or similar laws
relating  to,  or  affecting generally, the enforcement of creditors' rights and
remedies.  The  Board  of  Directors of the Company has approved the resolutions
(the  "Signing  Resolutions")  substantially in the form as set forth as Exhibit
C-1  attached  hereto  to  authorize  this  Agreement  and  the  transactions
contemplated  hereby.  The  Signing  Resolutions  are  valid,  in full force and
effect  and  have not been modified or supplemented in any respect other than by
the  resolutions  set  forth  in  Exhibit  C-2  attached  hereto  regarding  the
registration  statement  referred  to  in  Section  4  hereof.  The  Company has
delivered  to  the  Buyer a true and correct copy of a unanimous written consent
adopting  the Signing Resolutions executed by all of the members of the Board of
Directors of the Company.  No other approvals or consents of the Company's Board
of  Directors  and/or  shareholders  is  necessary under applicable laws and the
Company's  Certificate of Incorporation and/or Bylaws to authorize the execution
and  delivery  of this Agreement or any of the transactions contemplated hereby,
including,  but  not  limited  to, the issuance of the Commitment Shares and the
issuance  of  the  Purchase  Shares  up  to  the  Exchange  Cap.

     (c)     Capitalization.  As  of  the  date  hereof,  the authorized capital
stock of the Company consists of (i) 20,000,000 shares of Common Stock, of which
as  of  the  date  hereof, 9,881,466 shares are issued and outstanding, none are
held  as  treasury  shares, 807,409 shares are reserved for issuance pursuant to
the  Company's  stock  option  plans  of which only approximately 132,000 shares
remain available for future grants and no other shares are issuable and reserved
for issuance pursuant to securities (other than stock options issued pursuant to
the  Company's  stock  option  plans)  exercisable  or  exchangeable  for,  or
convertible  into,  shares  of Common Stock and (ii) 35,920  shares of Preferred
Stock, $25.00  par value of which as of the date hereof  2,427 shares are issued
and  outstanding.  All  of  such  outstanding shares have been, or upon issuance
will  be,  validly  issued  and  are  fully  paid  and nonassessable.  Except as
disclosed  in  Schedule  3(c),  (i) no shares of the Company's capital stock are
subject  to  preemptive  rights  or  any  other  similar  rights or any liens or
encumbrances suffered or permitted by the Company, (ii) there are no outstanding
debt securities, (iii) there are no outstanding options, warrants, scrip, rights
to  subscribe  to, calls or commitments of any character whatsoever relating to,
or  securities  or  rights  convertible into, any shares of capital stock of the
Company or any of its Subsidiaries, or contracts, commitments, understandings or
arrangements  by  which  the Company or any of its Subsidiaries is or may become
bound  to  issue additional shares of capital stock of the Company or any of its
Subsidiaries  or  options,  warrants,  scrip,  rights  to subscribe to, calls or
commitments  of  any  character

                                     -5-
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whatsoever  relating to, or securities or rights convertible into, any shares of
capital  stock  of  the  Company  or  any of its Subsidiaries, (iv) there are no
agreements or arrangements under which the Company or any of its Subsidiaries is
obligated  to  register  the  sale of any of their securities under the 1933 Act
(except  the  Registration  Rights  Agreement),  (v)  there  are  no outstanding
securities  or  instruments  of  the  Company  or  any of its Subsidiaries which
contain  any  redemption  or  similar  provisions,  and  there are no contracts,
commitments,  understandings  or arrangements by which the Company or any of its
Subsidiaries  is  or may become bound to redeem a security of the Company or any
of  its  Subsidiaries,  (vi)  there  are no securities or instruments containing
anti-dilution  or  similar  provisions that will be triggered by the issuance of
the  Securities  as  described  in this Agreement and (vii) the Company does not
have any stock appreciation rights or "phantom stock" plans or agreements or any
similar  plan  or  agreement.  The  Company  has furnished to the Buyer true and
correct  copies of the Company's Certificate of Incorporation, as amended and as
in  effect  on  the  date  hereof  (the "Certificate of Incorporation"), and the
Company's  By-laws,  as  amended  and  as  in  effect  on  the  date hereof (the
"By-laws"),  and  summaries  of  the terms of all securities convertible into or
exercisable for Common Stock, if any, and copies of any documents containing the
material  rights  of  the  holders  thereof  in  respect  thereto.

     (d)     Issuance  of  Securities.  The  Commitment  Shares  have  been duly
authorized  and,  upon  issuance  in  accordance  with  the  terms  hereof,  the
Commitment Shares shall be (i) validly issued, fully paid and non-assessable and
(ii)  free  from all taxes, liens and charges with respect to the issue thereof.
2,000,000  shares  of  Common  Stock  have been duly authorized and reserved for
issuance  upon  purchase  under  this  Agreement.  86,933 shares of Common Stock
(subject  to  equitable  adjustment  for  any  reorganization, recapitalization,
non-cash  dividend,  stock  split  or  other similar transaction) have been duly
authorized  and  reserved  for  issuance  as  Additional  Commitment  Shares  in
accordance  with Section 4(e) this Agreement. Upon issuance and payment therefor
in  accordance  with  the  terms  and conditions of this Agreement, the Purchase
Shares  shall  be validly issued, fully paid and nonassessable and free from all
taxes,  liens  and  charges  with respect to the issue thereof, with the holders
being  entitled  to  all  rights  accorded  to  a  holder  of  Common  Stock.

     (e)     No Conflicts.  Except as disclosed in Schedule 3(e), 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
(including, without limitation, the reservation for issuance and issuance of the
Purchase  Shares  up  to the Exchange Cap) will not (i) result in a violation of
the  Certificate  of Incorporation, any Certificate of Designations, Preferences
and  Rights  of  any outstanding series of preferred stock of the Company or the
By-laws  or  (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,  indenture  or  instrument  to  which  the  Company  or  any  of  its
Subsidiaries  is a party, or result in a violation of any law, rule, regulation,
order,  judgment  or  decree  (including  federal  and state securities laws and
regulations  and the rules and regulations of the Principal Market applicable to
the Company or any of its Subsidiaries) or by which any property or asset of the
Company  or  any of its Subsidiaries is bound or affected, except in the case of
conflicts,  defaults, terminations, amendments, accelerations, cancellations and
violations  under  clause (ii), which could not reasonably be expected to result
in a Material Adverse Effect.  Except as disclosed in Schedule 3(e), neither the
Company  nor its Subsidiaries is in violation of any term of or in default under
its  Certificate  of  Incorporation, any Certificate of Designation, Preferences
and  Rights  of  any  outstanding  series  of  preferred stock of the Company or
By-laws  or  their  organizational  charter or by-laws, respectively.  Except as
disclosed  in  Schedule 3(e), neither the Company nor any of its Subsidiaries is
in  violation  of  any  term  of  or  is in default under any material contract,
agreement,  mortgage,  indebtedness,  indenture, instrument, judgment, decree or
order  or  any  statute,  rule  or  regulation  applicable to the Company or its
Subsidiaries,  except  for  possible  conflicts,  defaults,  terminations  or
amendments  which  could  not  reasonably be expected to have a Material Adverse
Effect.  The  business  of  the  Company

                                     -6-
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and  its  Subsidiaries  is  not  being conducted, and shall not be conducted, in
violation  of  any law, ordinance, regulation of any governmental entity, except
for  possible  violations, the sanctions for which either individually or in the
aggregate  could  not  reasonably be expected to have a Material Adverse Effect.
Except  as specifically contemplated by this Agreement and as required under the
1933  Act  or  applicable  state securities laws, the Company is not required to
obtain  any  consent,  authorization  or  order  of,  or  make  any  filing  or
registration  with,  any  court  or  governmental  agency  or  any regulatory or
self-regulatory agency in order for it to execute, deliver or perform any of its
obligations  under  or  contemplated  by the Transaction Documents in accordance
with  the  terms  hereof  or thereof.  Except as disclosed in Schedule 3(e), all
consents, authorizations, orders, filings and registrations which the Company is
required  to  obtain  pursuant  to  the  preceding sentence shall be obtained or
effected  on  or  prior  to the Commencement Date.  Except as listed in Schedule
3(e),  since  January  1,  2008,  the Company has not received nor delivered any
notices or correspondence from or to the Principal Market.  The Principal Market
has  not  commenced  any  delisting  proceedings  against  the  Company.

     (f)     SEC  Documents;  Financial  Statements.  Except  as  disclosed  in
Schedule  3(f), since January 1, 2008, the Company has timely filed all reports,
schedules, forms, statements and other documents required to be filed by it with
the  SEC  pursuant  to  the  reporting  requirements of the 1934 Act (all of the
foregoing  filed  prior to the date hereof and all exhibits included therein and
financial  statements  and  schedules  thereto  and  documents  incorporated  by
reference  therein being hereinafter referred to as the "SEC Documents").  As of
their  respective  dates  (except  as they have been correctly amended), the SEC
Documents  complied  in  all material respects with the requirements of the 1934
Act  and  the rules and regulations of the SEC promulgated thereunder applicable
to the SEC Documents, and none of the SEC Documents, at the time they were filed
with  the  SEC  (except  as  they may have been properly amended), contained 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  (except  as  they  have  been  properly  amended), the
financial statements of the Company included in the SEC Documents complied as to
form  in  all  material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto.  Such financial
statements  have  been prepared in accordance with generally accepted accounting
principles, consistently applied, 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 exclude
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  its  operations and cash flows for the periods then ended
(subject,  in  the  case  of  unaudited  statements,  to  normal  year-end audit
adjustments).  Except  as  listed  in Schedule 3(f), the Company has received no
notices  or  correspondence from the SEC since January 1, 2008.  The SEC has not
commenced  any  enforcement  proceedings  against  the  Company  or  any  of its
subsidiaries.

     (g)     Absence  of Certain Changes.  Except as disclosed in Schedule 3(g),
since March 31, 2009, there has been no material adverse change in the business,
properties,  operations,  financial  condition  or  results of operations of the
Company  or its Subsidiaries.  The Company has not taken any steps, and does not
currently  expect  to  take  any  steps,  to  seek  protection  pursuant  to any
Bankruptcy  Law  nor  does  the  Company  or  any  of  its Subsidiaries have any
knowledge or reason to believe that its creditors intend to initiate involuntary
bankruptcy or insolvency proceedings.  The Company is financially solvent and is
generally  able  to  pay  its  debts  as  they  become  due.

     (h)     Absence  of Litigation. Except as disclosed on Schedule 3(h), there
is no action, suit, proceeding, inquiry or investigation before or by any court,
public  board,  government  agency, self-regulatory organization or body pending
or,  to  the  knowledge  of  the  Company or any of its Subsidiaries, threatened
against  or  affecting  the  Company,  the  Common Stock or any of the Company's
Subsidiaries  or

                                     -7-
<PAGE>
any  of  the  Company's  or the Company's Subsidiaries' officers or directors in
their  capacities as such, which could reasonably be expected to have a Material
Adverse  Effect.   A  description  of  each action, suit, proceeding, inquiry or
investigation  before  or  by  any  court,  public  board,  government  agency,
self-regulatory organization or body which, as of the date of this Agreement, is
pending  or  threatened  in writing against or affecting the Company, the Common
Stock  or  any  of  the  Company's  Subsidiaries  or any of the Company's or the
Company's  Subsidiaries'  officers  or directors in their capacities as such, is
set  forth  in  Schedule  3(h).

     (i)     Acknowledgment  Regarding Buyer's Status.  The Company acknowledges
and  agrees  that  the  Buyer  is  acting solely in the capacity of arm's length
purchaser  with  respect  to  the  Transaction  Documents  and  the transactions
contemplated  hereby  and  thereby.  The  Company  further acknowledges that the
Buyer  is  not  acting as a financial advisor or fiduciary of the Company (or in
any  similar  capacity)  with  respect  to  the  Transaction  Documents  and the
transactions  contemplated  hereby and thereby and any advice given by the Buyer
or  any  of  its  representatives  or  agents in connection with the Transaction
Documents  and  the  transactions  contemplated  hereby  and  thereby  is merely
incidental  to  the  Buyer's  purchase  of  the Securities.  The Company further
represents  to  the  Buyer  that  the  Company's  decision  to  enter  into  the
Transaction Documents has been based solely on the independent evaluation by the
Company  and  its  representatives  and  advisors.

     (j)     No  General  Solicitation.  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  1933 Act) in connection with the offer or sale of the
Securities.

      (k)     Intellectual  Property  Rights.  The  Company and its Subsidiaries
own or possess adequate rights or licenses to use all material trademarks, trade
names, service marks, service mark registrations, service names, patents, patent
rights,  copyrights,  inventions,  licenses,  approvals,  governmental
authorizations,  trade  secrets and rights necessary to conduct their respective
businesses  as now conducted.  Except as set forth on Schedule 3(k), none of the
Company's  material  trademarks,  trade  names,  service  marks,  service  mark
registrations,  service  names,  patents, patent rights, copyrights, inventions,
licenses,  approvals,  government  authorizations,  trade  secrets  or  other
intellectual  property  rights  have expired or terminated, or, by the terms and
conditions  thereof, could expire or terminate within two years from the date of
this  Agreement.  The  Company and its Subsidiaries do not have any knowledge of
any  infringement  by the Company or its Subsidiaries of any material trademark,
trade  name  rights,  patents,  patent rights, copyrights, inventions, licenses,
service  names, service marks, service mark registrations, trade secret or other
similar  rights  of  others,  or of any such development of similar or identical
trade  secrets  or  technical  information by others and, except as set forth on
Schedule  3(k),  there  is  no claim, action or proceeding being made or brought
against, or to the Company's knowledge, being threatened against, the Company or
its  Subsidiaries  regarding  trademark,  trade  name,  patents,  patent rights,
invention,  copyright,  license,  service  names,  service  marks,  service mark
registrations,  trade  secret  or  other infringement, which could reasonably be
expected  to  have  a  Material  Adverse  Effect.

     (l)     Environmental  Laws.  The  Company  and its Subsidiaries (i) are in
compliance  with  any  and all applicable foreign, federal, state and local laws
and  regulations  relating  to  the  protection  of human health and safety, the
environment  or  hazardous  or  toxic  substances  or  wastes,  pollutants  or
contaminants ("Environmental Laws"), (ii) have received all permits, licenses or
other  approvals required of them under applicable Environmental Laws to conduct
their  respective  businesses  and  (iii)  are  in compliance with all terms and
conditions of any such permit, license or approval, except where, in each of the
three  foregoing  clauses,  the  failure  to  so  comply could not reasonably be
expected  to  have, individually or in the aggregate, a Material Adverse Effect.

                                     -8-
<PAGE>
     (m)  Title. The Company and its Subsidiaries have good and marketable title
in fee simple to all real property and good and marketable title to all personal
property  owned by them which is material to the business of the Company and its
Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except  such  as  are  described  in  Schedule 3(m) or such as do not materially
affect  the  value  of  such property and do not interfere with the use made and
proposed to be made of such property by the Company and any of its Subsidiaries.
Any  real property and facilities held under lease by the Company and any of its
Subsidiaries  are  held  by  them under valid, subsisting and enforceable leases
with  such exceptions as are not material and do not interfere with the use made
and  proposed  to  be made of such property and buildings by the Company and its
Subsidiaries.

     (n)     Insurance.  The Company and each of its Subsidiaries are insured by
insurers  of  recognized  financial responsibility against such losses and risks
and  in  such  amounts  as  management of the Company believes to be prudent and
customary  in  the  businesses  in  which  the  Company and its Subsidiaries are
engaged.  Neither  the  Company  nor  any  such  Subsidiary has been refused any
insurance  coverage  sought  or applied for and neither the Company nor any such
Subsidiary  has  any  reason  to  believe  that it will not be able to renew its
existing  insurance  coverage  as  and  when  such coverage expires or to obtain
similar  coverage  from  similar  insurers  as  may be necessary to continue its
business at a cost that would not materially and adversely affect the condition,
financial  or  otherwise, or the earnings, business or operations of the Company
and  its  Subsidiaries,  taken  as  a  whole.

     (o)     Regulatory  Permits.  The  Company and its Subsidiaries possess all
material  certificates,  authorizations  and  permits  issued by the appropriate
federal,  state  or  foreign  regulatory  authorities necessary to conduct their
respective  businesses,  and  neither  the  Company  nor any such Subsidiary has
received any notice of proceedings relating to the revocation or modification of
any  such  certificate,  authorization  or  permit.

     (p)     Tax  Status.  The  Company and each of its Subsidiaries has made or
filed  all  federal and state income and all other material tax returns, reports
and declarations required by any jurisdiction to which it is subject (unless and
only  to  the extent that the Company and each of its Subsidiaries has set aside
on  its  books  provisions reasonably adequate for the payment of all unpaid and
unreported  taxes) and has paid all taxes and other governmental assessments and
charges  that  are  material  in  amount,  shown or determined to be due on such
returns,  reports  and  declarations, except those being contested in good faith
and  has set aside on its books provision reasonably adequate for the payment of
all  taxes  for periods subsequent to the periods to which such returns, reports
or declarations apply.  There are no unpaid taxes in any material amount claimed
to  be  due by the taxing authority of any jurisdiction, and the officers of the
Company  know  of  no  basis  for  any  such  claim.

     (q)     Transactions With Affiliates.  Except as set forth on Schedule 3(q)
and  other  than  the  grant  or exercise of stock options disclosed on Schedule
3(c),  none of the officers, directors, or employees of the Company is presently
a  party  to  any transaction with the Company or any of its Subsidiaries (other
than for services as employees, officers and directors), including any contract,
agreement  or  other  arrangement providing for the furnishing of services to or
by,  providing  for rental of real or personal property to or from, or otherwise
requiring  payments to or from any officer, director or such employee or, to the
knowledge of the Company, any corporation, partnership, trust or other entity in
which  any  officer,  director,  or  any  such employee has an interest or is an
officer,  director,  trustee  or  partner.

     (r)     Application  of Takeover Protections.  The Company and its board of
directors  have  taken or will take prior to the Commencement Date all necessary
action,  if  any, in order to render inapplicable any control share acquisition,
business  combination,  poison  pill  (including any distribution under a rights
agreement)  or  other  similar  anti-takeover provision under the Certificate of
Incorporation  or  the  laws  of

                                     -9-
<PAGE>
the  state of its incorporation which is or could become applicable to the Buyer
as  a  result  of  the  transactions  contemplated by this Agreement, including,
without  limitation,  the  Company's  issuance of the Securities and the Buyer's
ownership  of  the  Securities.

     (s)     Foreign  Corrupt  Practices.  Neither  the  Company, nor any of its
Subsidiaries,  nor any director, officer, agent, employee or other person acting
on  behalf  of  the Company or any of its Subsidiaries has, in the course of its
actions  for,  or  on  behalf  of, the Company, used any corporate funds for any
unlawful  contribution,  gift, entertainment or other unlawful expenses relating
to  political  activity;  made  any  direct  or indirect unlawful payment to any
foreign  or  domestic  government  official  or  employee  from corporate funds;
violated  or  is  in  violation  of  any  provision  of the U.S. Foreign Corrupt
Practices  Act  of 1977, as amended; or made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic
government  official  or  employee.


     4.     COVENANTS.

     (a)     Filing  of Form 8-K and Registration Statement.  The Company agrees
that it shall, within the time required under the 1934 Act file a Report on Form
8-K  disclosing  this  Agreement  and  the transaction contemplated hereby.  The
Company shall also file within ten (10) Business Days from the date hereof a new
registration  statement  covering  the sale of the Securities in accordance with
the  terms  of  the  Registration  Rights  Agreement between the Company and the
Buyer,  dated  as  of  the  date  hereof  ("Registration  Rights  Agreement").

     (b)     Blue  Sky.  The  Company  shall  take  such  action,  if any, as is
reasonably  necessary  in order to obtain an exemption for or to qualify (i) the
initial sale of the Commitment Shares and any Purchase Shares to the Buyer under
this  Agreement  and  (ii)  any subsequent sale of the Commitment Shares and any
Purchase Shares by the Buyer, in each case, under applicable securities or "Blue
Sky"  laws  of  the  states of the United States in such states as is reasonably
requested by the Buyer from time to time, and shall provide evidence of any such
action  so  taken  to  the  Buyer.

     (c)     Listing.  The  Company  shall promptly secure the listing of all of
the Purchase Shares and Commitment Shares upon each national securities exchange
and  automated  quotation  system, if any, upon which shares of Common Stock are
then  listed  (subject to official notice of issuance) up to an amount that does
not  exceed  the Exchange Cap and shall maintain, so long as any other shares of
Common  Stock  shall be so listed, such listing of all such securities from time
to  time  issuable  under  the  terms of the Transaction Documents.  The Company
shall  maintain  the Common Stock's authorization for quotation on the Principal
Market.  Neither  the  Company nor any of its Subsidiaries shall take any action
that  would  be  reasonably expected to result in the delisting or suspension of
the Common Stock on the Principal Market.  The Company shall promptly, and in no
event  later than the following Business Day, provide to the Buyer copies of any
notices  it  receives  from  the  Principal  Market  regarding  the  continued
eligibility  of  the Common Stock for listing on such automated quotation system
or  securities  exchange.  The  Company  shall  pay  all  fees  and  expenses in
connection  with  satisfying  its  obligations  under  this  Section.

     (d)     Limitation  on  Short  Sales  and  Hedging Transactions.  The Buyer
agrees  that  beginning  on the date of this Agreement and ending on the date of
termination  of  this  Agreement as provided in Section 11(k), the Buyer and its
agents,  representatives and affiliates shall not in any manner whatsoever enter
into  or  effect,  directly or indirectly, any (i) "short sale" (as such term is
defined  in  Section  242.200  of  Regulation SHO of the 1934 Act) of the Common
Stock  or  (ii) hedging transaction, which establishes a net short position with
respect  to  the  Common  Stock.

                                      -10-
<PAGE>
     (e)     Issuance  of  Commitment  Shares; Limitation on Sales of Commitment
Shares.  Immediately  upon  the  execution  of this Agreement, the Company shall
issue  to  the Buyer as consideration for the Buyer entering into this Agreement
86,933  shares  of Common Stock (the "Initial Commitment Shares"). In connection
with  each purchase of Purchase Shares hereunder, the Company agrees to issue to
the Buyer a number of shares of Common Stock (the "Additional Commitment Shares"
and  together with the Initial Commitment Shares, the "Commitment Shares") equal
to the product of (x) 86,933 and (y) the Purchase Amount Fraction. The "Purchase
Amount  Fraction"  shall mean a fraction, the numerator of which is the Purchase
Amount  purchased  by the Buyer with respect to such purchase of Purchase Shares
and  the  denominator  of  which  is  Eight  Million  Dollars  ($8,000,000). The
Additional Commitment Shares shall be equitably adjusted for any reorganization,
recapitalization,  non-cash  dividend, stock split or other similar transaction.
The  Initial Commitment Shares shall be issued in certificated form and (subject
to  Section  5  hereof)  shall  bear  only  the  following  restrictive  legend:

     THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE  NOT  BEEN
     REGISTERED  UNDER  THE  SECURITIES  ACT  OF 1933, AS AMENDED, OR APPLICABLE
     STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
     MAY  NOT  BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE
     OF  AN  EFFECTIVE  REGISTRATION  STATEMENT  FOR  THE  SECURITIES  UNDER THE
     SECURITIES  ACT  OF  1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS,
     UNLESS  SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED,  OR  (2) AN OPINION OF HOLDER'S COUNSEL, IN A CUSTOMARY FORM, THAT
     REGISTRATION  IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES
     LAWS.

       The Buyer agrees that the Buyer shall not transfer or sell the Commitment
Shares until the earlier of 500 Business Days (25 Monthly Periods) from the date
hereof  or  the  date  on  which  this  Agreement has been terminated, provided,
however,  that  such  restrictions  shall  not apply: (i) in connection with any
transfers to or among affiliates (as defined in the 1934 Act), (ii) in the event
that  the  Commencement  does not occur on or before October 1, 2009, due to the
failure of the Company to satisfy the conditions set forth in Section 7 or (iii)
if  an  Event  of  Default has occurred, or any event which, after notice and/or
lapse  of  time,  would become an Event of Default, including any failure by the
Company  to  timely issue Purchase Shares under this Agreement.  Notwithstanding
the forgoing, the Buyer may transfer Commitment Shares to a third party in order
to  settle  a  sale  made  by  the  Buyer where the Buyer reasonably expects the
Company  to deliver Purchase Shares to the Buyer under this Agreement so long as
the  Buyer  maintains  ownership  of the same overall number of shares of Common
Stock  by  "replacing" the Commitment Shares so transferred with Purchase Shares
when  the  Purchase  Shares  are  actually  issued  by the Company to the Buyer.

     (g)     Due  Diligence.  The  Buyer shall have the right, from time to time
as  the  Buyer  may  reasonably  deem  appropriate,  to  perform  reasonable due
diligence  on  the  Company  during  normal business hours.  The Company and its
officers  and  employees shall provide information and reasonably cooperate with
the  Buyer in connection with any reasonable request by the Buyer related to the
Buyer's  due  diligence  of the Company, including, but not limited to, any such
request  made by the Buyer in connection with (i) the filing of the registration
statement  described  in  Section  4(a)  hereof and (ii) the Commencement.  Each
party  hereto  agrees  not to disclose any Confidential Information of the other
party  to any third party and shall not use the Confidential Information for any
purpose  other  than  in connection with, or in furtherance of, the transactions
contemplated  hereby.  Each  party  hereto  acknowledges  that  the

                                      -11-
<PAGE>
Confidential  Information  shall remain the property of the disclosing party and
agrees&nb