Document:

LEV
      PHARMACEUTICALS, INC.

     

    WARRANT
      TO PURCHASE COMMON STOCK

     

    To
      Purchase [_______] Shares of Common Stock

     

    

     

    Date
      of
      Issuance: August 17, 2007

     

    VOID
      AFTER AUGUST 17,
      2012

     

    THIS
      CERTIFIES THAT, for value received, [_________], or permitted registered assigns
      (the “HOLDER”),
      is
      entitled to subscribe for and purchase at the Exercise Price (defined below)
      from Lev Pharmaceuticals, Inc., a Delaware corporation (the “COMPANY”)
      up to
      [_____] shares of the common stock of the Company, par value $0.01 per share
      (the “COMMON
      STOCK”).
      This
      warrant is one of a series of warrants issued by the Company as of the date
      hereof (individually a “WARRANT”;
      collectively, “COMPANY
      WARRANTS”)
      pursuant to that certain subscription agreement between the Company and the
      Holder, dated as of August 13, 2007 (the “SUBSCRIPTION
      AGREEMENT”).
      

     

    1.  
DEFINITIONS.
      Capitalized terms used herein but not otherwise defined herein shall have their
      respective meanings as set forth in the Subscription Agreement. As used herein,
      the following terms shall have the following respective meanings:

     

    (A) “Exercise
      Period”
shall
      mean the period commencing with the date hereof and ending five years from
      the
      date hereof, unless sooner terminated as provided below.

     

    (B) “Exercise
      Price”
shall
      mean $1.86 per share, subject to adjustment pursuant to Section
      4
      below.

     

    (C) “Exercise
      Shares”
shall
      mean the shares of Common Stock issuable upon exercise of this
      Warrant.

     

    (D) “Trading
      Day”
shall
      mean (a) any day on which the Common Stock is listed or quoted and traded on
      its
      primary trading market, (b) if the Common Stock is not then listed or quoted
      and
      traded on any eligible market (meaning any of the NYSE, AMEX or NASDAQ), then
      a
      day on which trading occurs on the OTC Bulletin Board (or any successor
      thereto), or (c) if trading does not occur on the OTC Bulletin Board (or any
      successor thereto), any Business Day.

     

    2.  
EXERCISE
      OF WARRANT.
      The
      rights represented by this Warrant may be exercised in whole or in part at
      any
      time during the Exercise Period, by delivery of the following to the Company
      at
      its address set forth on the signature page hereto (or at such other address
      as
      it may designate by notice in writing to the Holder):

     

    (A) An
      executed Notice of Exercise in the form attached hereto;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (B) Payment
      of the Exercise Price either (i) in cash or by check, (ii) by cancellation
      of
      indebtedness, or (iii) pursuant to Section
      2.1
      below;
      and

     

    (C) This
      Warrant.

     

    Execution
      and delivery of the Notice of Exercise shall have the same effect as
      cancellation of the original Warrant and issuance of a new Warrant evidencing
      the right to purchase the remaining number of Exercise Shares, if
      any.

     

    Certificates
      for shares purchased hereunder shall be transmitted by the transfer agent of
      the
      Company to the Holder by crediting the account of the Holder’s prime broker with
      the Depository Trust Company through its Deposit Withdrawal Agent Commission
      system if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      three business days from the delivery to the Company of the Notice of Exercise,
      surrender of this Warrant and payment of the aggregate Exercise Price as set
      forth above. This Warrant shall be deemed to have been exercised on the date
      the
      Exercise Price is received by the Company. The Exercise Shares shall be deemed
      to have been issued, and Holder or any other person so designated to be named
      therein shall be deemed to have become a holder of record of such shares for
      all
      purposes, as of the date this Warrant has been exercised by payment to the
      Company of the Exercise Price.

     

    The
      person in whose name any certificate or certificates for Exercise Shares are
      to
      be issued upon exercise of this Warrant shall be deemed to have become the
      holder of record of such shares on the date on which this Warrant was
      surrendered and payment of the Exercise Price was made, irrespective of the
      date
      of delivery of such certificate or certificates, except that, if the date of
      such surrender and payment is a date when the stock transfer books of the
      Company are closed, such person shall be deemed to have become the holder of
      such shares at the close of business on the next succeeding date on which the
      stock transfer books are open.

     

    To
      the
      extent permitted by law, the Company’s obligations to issue and deliver Exercise
      Shares in accordance with the terms hereof are absolute and unconditional,
      irrespective of any action or inaction by the Holder to enforce the same, any
      waiver or consent with respect to any provision hereof, the recovery of any
      judgment against any person or entity or any action to enforce the same, or
      any
      setoff, counterclaim, recoupment, limitation or termination, or any breach
      or
      alleged breach by the Holder or any other person or entity of any obligation
      to
      the Company or any violation or alleged violation of law by the Holder or any
      other person or entity, and irrespective of any other circumstance which might
      otherwise limit such obligation of the Company to the Holder in connection
      with
      the issuance of Exercise Shares. Nothing herein shall limit a Holder’s right to
      pursue any other remedies available to it hereunder, at law or in equity
      including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of this Warrant
      as required pursuant to the terms hereof.

     

    In
      addition to any other rights available to a Holder, if the Company fails to
      deliver to the Holder a certificate representing Exercise Shares by the third
      Trading Day after the date on which delivery of such certificate is required
      by
      this Warrant, and if after such third Trading Day the Holder purchases (in
      an
      open market transaction or otherwise) shares of Common Stock to deliver in
      satisfaction of a sale by the Holder of the Exercise Shares that the Holder
      anticipated receiving from the Company (a “Buy-In”),
      then
      the Company shall, within three Trading Days after the Holder’s request and in
      the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to
      the Holder’s total purchase price (including brokerage commissions, if any) for
      the shares of Common Stock so purchased (the “Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such Common Stock) shall terminate, or (ii) promptly honor its obligation to
      deliver to the Holder a certificate or certificates representing such Common
      Stock and pay cash to the Holder in an amount equal to the excess (if any)
      of
      the Buy-In Price over the product of (A) such number of shares of Common Stock,
      times (B) the Closing Price on the date of the event giving rise to the
      Company’s obligation to deliver such certificate.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.1  NET
      EXERCISE.
      If
      during the Exercise Period, the Holder is not permitted to sell Exercise Shares
      pursuant to the Registration Statement, as defined in the Subscription
      Agreement, and the fair market value of one share of the Common Stock is greater
      than the Exercise Price (at the date of calculation as set forth below), in
      lieu
      of exercising this Warrant by payment of cash or by check, or by cancellation
      of
      indebtedness, the Holder may elect to receive shares equal to the value (as
      determined below) of this Warrant (or the portion thereof being canceled) by
      surrender of this Warrant at the principal office of the Company together with
      the properly endorsed Notice of Exercise in which event the Company shall issue
      to the Holder a number of shares of Common Stock computed using the following
      formula:

     

    
      	
              X
                =
                Y (A-B)

            
	
              -------

            
	
              A

            

    

     

    Where
      X =
      the number of shares of Common Stock to be issued to the Holder

     

    
      	 	
              Y
                =
                

            	
              the
                number of shares of Common Stock purchasable under this Warrant or,
                if
                only a portion of this Warrant is being exercised, the portion of
                this
                Warrant being canceled (at the date of such
                calculation)

            

    

     

    
      	 	
              A
                =
                

            	
              the
                fair market value of one share of the Company’s Common Stock (at the date
                of such calculation)

            

    

     

    
      	 	
              B
                =

            	
              Exercise
                Price (as adjusted to the date of such
                calculation)

            

    

     

    For
      purposes of the above calculation, the “fair market value” of one share of
      Common Stock shall mean (i) the average of the closing sales prices for the
      shares of Common Stock on the Nasdaq Capital Market or other trading market
      where such security is listed or traded as reported by Bloomberg Financial
      Markets (or a comparable reporting service of national reputation selected
      by
      the Company and reasonably acceptable to the Holder if Bloomberg Financial
      Markets is not then reporting sales prices of such security) (collectively,
      “Bloomberg”)
      for
      the ten (10) consecutive trading days immediately preceding such date, or (ii)
      if the Nasdaq Capital Market is not the principal trading market for the shares
      of Common Stock, the average of the reported sales prices reported by Bloomberg
      on the principal trading market for the Common Stock during the same period,
      or,
      if there is no sales price for such period, the last sales price reported by
      Bloomberg for such period, or (iii) if neither of the foregoing applies, the
      last sales price of such security in the over-the-counter market on the pink
      sheets or bulletin board for such security as reported by Bloomberg, or if
      no
      sales price is so reported for such security, the last bid price of such
      security as reported by Bloomberg or (iv) if fair market value cannot be
      calculated as of such date on any of the foregoing bases, the fair market value
      shall be as determined by the Board of Directors of the Company in the exercise
      of its good faith judgment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.2  ISSUANCE
      OF NEW WARRANTS.
      Upon
      any partial exercise of this Warrant, the Company, at its expense, will
      forthwith and, in any event within five business days, issue and deliver to
      the
      Holder a new warrant or warrants of like tenor, registered in the name of the
      Holder, exercisable, in the aggregate, for the balance of the number of shares
      of Common Stock remaining available for purchase under this
      Warrant.

     

    2.3  PAYMENT
      OF TAXES AND EXPENSES.
      The
      Company shall pay any recording, filing, stamp or similar tax which may be
      payable in respect of any transfer involved in the issuance of, and the
      preparation and delivery of certificates (if applicable) representing, (i)
      any
      Exercise Shares purchased upon exercise of this Warrant and/or (ii) new or
      replacement warrants in the Holder’s name or the name of any transferee of all
      or any portion of this Warrant.

     

    2.4  EXERCISE
      LIMITATIONS; HOLDER’S RESTRICTIONS.
      A
      Holder shall not have the right to exercise any portion of this Warrant,
      pursuant to Section
      2
      or
      otherwise, to the extent that after giving effect to such issuance after
      exercise, such Holder (together with such Holder’s affiliates), as set forth on
      the applicable Notice of Exercise, would beneficially own in excess of 4.99%,
      or
      9.9% if such holder already beneficially owns 4.99% or exceeds 4.99% in the
      future, of the number of shares of the Common Stock outstanding immediately
      after giving effect to such issuance. For purposes of the foregoing sentence,
      the number of shares of Common Stock beneficially owned by such Holder and
      its
      affiliates shall include the number of shares of Common Stock issuable upon
      exercise of this Warrant with respect to which the determination of such
      sentence is being made, but shall exclude the number of shares of Common Stock
      which would be issuable upon (A) exercise of the remaining, nonexercised portion
      of this Warrant beneficially owned by such Holder or any of its affiliates
      and
      (B) exercise or conversion of the unexercised or nonconverted portion of any
      other securities of the Company (including, without limitation, any other shares
      of Common Stock or Warrants) subject to a limitation on conversion or exercise
      analogous to the limitation contained herein beneficially owned by such Holder
      or any of its affiliates. Except as set forth in the preceding sentence, for
      purposes of this Section
      2.4,
      beneficial ownership shall be calculated in accordance with Section 13(d) of
      the
      Exchange Act, it being acknowledged by a Holder that the Company is not
      representing to such Holder that such calculation is in compliance with Section
      13(d) of the Exchange Act and such Holder is solely responsible for any
      schedules required to be filed in accordance therewith. To the extent that
      the
      limitation contained in this Section
      2.4
      applies,
      the determination of whether this Warrant is exercisable (in relation to other
      securities owned by such Holder) and of which a portion of this Warrant is
      exercisable shall be in the sole discretion of a Holder, and the submission
      of a
      Notice of Exercise shall be deemed to be each Holder’s determination of whether
      this Warrant is exercisable (in relation to other securities owned by such
      Holder) and of which portion of this Warrant is exercisable, in each case
      subject to such aggregate percentage limitation, and the Company shall have
      no
      obligation to verify or confirm the accuracy of such determination. For purposes
      of this Section
      2.4,
      in
      determining the number of outstanding shares of Common Stock, a Holder may
      rely
      on the number of outstanding shares of Common Stock as reflected in (x) the
      Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more
      recent public announcement by the Company or (z) any other notice by the Company
      or the Company’s Transfer Agent setting forth the number of shares of Common
      Stock outstanding. Upon the written or oral request of a Holder, the Company
      shall within two Trading Days confirm orally and in writing to such Holder
      the
      number of shares of Common Stock then outstanding. In any case, the number
      of
      outstanding shares of Common Stock shall be determined after giving effect
      to
      the conversion or exercise of securities of the Company, including this Warrant,
      by such Holder or its affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported. The provisions of this
Section
      2.4
      may be
      waived by such Holder, at the election of such Holder, upon not less than 61
      days’ prior notice to the Company, and the provisions of this Section
      2.4
      shall
      continue to apply until such 61st day (or such later date, as determined by
      such
      Holder, as may be specified in such notice of waiver).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.   COVENANTS
      OF THE COMPANY.

     

    3.1  COVENANTS
      AS TO EXERCISE SHARES.
      The
      Company covenants and agrees that all Exercise Shares that may be issued upon
      the exercise of the rights represented by this Warrant will, upon issuance,
      be
      validly issued and outstanding, fully paid and nonassessable, and free from
      all
      taxes, liens and charges with respect to the issuance thereof. The Company
      further covenants and agrees that the Company will at all times during the
      Exercise Period, have authorized and reserved, free from preemptive rights,
      a
      sufficient number of shares of Common Stock to provide for the exercise of
      the
      rights represented by this Warrant. If at any time during the Exercise Period
      the number of authorized but unissued shares of Common Stock shall not be
      sufficient to permit exercise of this Warrant, the Company will take such
      corporate action as may, in the opinion of its counsel, be necessary to increase
      its authorized but unissued shares of Common Stock to such number of shares
      as
      shall be sufficient for such purposes.

     

    3.2  NO
      IMPAIRMENT.
      Except
      and to the extent as waived or consented to by the holder of Company Warrants
      representing at least two-thirds of the number of shares of Common Stock then
      subject to outstanding Company Warrants, the Company will not, by amendment
      of
      its Certificate of Incorporation or through any reorganization, transfer of
      assets, consolidation, merger, dissolution, issue or sale of securities or
      any
      other voluntary action, avoid or seek to avoid the observance or performance
      of
      any of the terms to be observed or performed hereunder by the Company, but
      will
      at all times in good faith assist in the carrying out of all the provisions
      of
      this Warrant and in the taking of all such action as may be necessary or
      appropriate in order to protect the exercise rights of the Holder against
      impairment.

     

    3.3  NOTICES
      OF RECORD DATE AND CERTAIN OTHER EVENTS.
      In the
      event of any taking by the Company of a record of the holders of any class
      of
      securities for the purpose of determining the holders thereof who are entitled
      to receive any dividend or other distribution, the Company shall mail to the
      Holder, at least ten (10) days prior to the date on which any such record is
      to
      be taken for the purpose of such dividend or distribution, a notice specifying
      such date. In the event of any voluntary dissolution, liquidation or winding
      up
      of the Company, the Company shall mail to the Holder, at least ten (10) days
      prior to the date of the occurrence of any such event, a notice specifying
      such
      date. In the event the Company authorizes or approves, enters into any agreement
      contemplating, or solicits stockholder approval for any Fundamental Transaction,
      as defined in Section
      6
      herein,
      the Company shall mail to the Holder, at least ten (10) days prior to the date
      of the occurrence of such event, a notice specifying such date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.   ADJUSTMENT
      OF EXERCISE PRICE AND SHARES.

     

    (A)  In
      the
      event of changes in the outstanding Common Stock of the Company by reason of
      stock dividends, split-ups, recapitalizations, reclassifications, combinations
      or exchanges of shares, separations, reorganizations, liquidations,
      consolidation, acquisition of the Company (whether through merger or acquisition
      of substantially all the assets or stock of the Company), or the like, the
      number, class and type of shares available under this Warrant in the aggregate
      and the Exercise Price shall be correspondingly adjusted to give the Holder
      of
      this Warrant, on exercise for the same aggregate Exercise Price, the total
      number, class, and type of shares or other property as the Holder would have
      owned had this Warrant been exercised prior to the event and had the Holder
      continued to hold such shares until the event requiring adjustment. The form
      of
      this Warrant need not be changed because of any adjustment in the number of
      Exercise Shares subject to this Warrant.

     

    (B)  If
      at any
      time or from time to time the holders of Common Stock of the Company (or any
      shares of stock or other securities at the time receivable upon the exercise
      of
      this Warrant) shall have received or become entitled to receive, without payment
      therefor,

     

    (I)  Common
      Stock or any shares of stock or other securities which are at any time directly
      or indirectly convertible into or exchangeable for Common Stock, or any rights
      or options to subscribe for, purchase or otherwise acquire any of the foregoing
      by way of dividend or other distribution (other than a dividend or distribution
      covered in Section
      4(a)
      above);

     

    (II)     
      any
      cash
      paid or payable otherwise than as a cash dividend; or

     

    (III)    
      Common
      Stock or additional stock or other securities or property (including cash)
      by
      way of spinoff, split-up, reclassification, combination of shares or similar
      corporate rearrangement (other than shares of Common Stock pursuant to
Section
      4(a)
      above),
      then and in each such case, the Holder hereof will, upon the exercise of this
      Warrant, be entitled to receive, in addition to the number of shares of Common
      Stock receivable thereupon, and without payment of any additional consideration
      therefor, the amount of stock and other securities and property (including
      cash
      in the cases referred to in clauses (ii) and (iii) above) which such Holder
      would hold on the date of such exercise had such Holder been the holder of
      record of such Common Stock as of the date on which holders of Common Stock
      received or became entitled to receive such shares or all other additional
      stock
      and other securities and property.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (C)  Upon
      the
      occurrence of each adjustment pursuant to this Section
      4,
      the
      Company at its expense will, at the written request of the Holder, promptly
      compute such adjustment in accordance with the terms of this Warrant and prepare
      a certificate setting forth such adjustment, including a statement of the
      adjusted Exercise Price and adjusted number or type of Exercise Shares or other
      securities issuable upon exercise of this Warrant (as applicable), describing
      the transactions giving rise to such adjustments and showing in detail the
      facts
      upon which such adjustment is based. Upon written request, the Company will
      promptly deliver a copy of each such certificate to the Holder and to the
      Company’s transfer agent.

     

    5.    FRACTIONAL
      SHARES.
      No
      fractional shares shall be issued upon the exercise of this Warrant as a
      consequence of any adjustment pursuant hereto. All Exercise Shares (including
      fractions) issuable upon exercise of this Warrant may be aggregated for purposes
      of determining whether the exercise would result in the issuance of any
      fractional share. If, after aggregation, the exercise would result in the
      issuance of a fractional share, the Company shall, in lieu of issuance of any
      fractional share, pay the Holder otherwise entitled to such fraction a sum
      in
      cash equal to the product resulting from multiplying the then current fair
      market value of an Exercise Share by such fraction.

     

    6.   
      FUNDAMENTAL
      TRANSACTIONS.
      If, at
      any time while this Warrant is outstanding, (i) the Company effects any merger
      of the Company with or into another entity, (ii) the Company effects any sale
      of
      all or substantially all of its assets in one or a series of related
      transactions, (iii) any tender offer or exchange offer (whether by the Company
      or another individual or entity) is completed pursuant to which holders of
      Common Stock are permitted to tender or exchange their shares for other
      securities, cash or property or (iv) the Company effects any reclassification
      of
      the Common Stock or any compulsory share exchange pursuant to which the Common
      Stock is effectively converted into or exchanged for other securities, cash
      or
      property (other than as a result of a subdivision or combination of shares
      of
      Common Stock covered by Section
      4
      above)
      (in any such case, a “FUNDAMENTAL
      TRANSACTION”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, upon
      exercise of this Warrant (disregarding any limitation on exercise contained
      herein solely for the purpose of such determination), the number of shares
      of
      Common Stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“ALTERNATE
      CONSIDERATION”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event (disregarding any limitation on exercise contained herein solely for
      the
      purpose of such determination). For purposes of any such exercise, the
      determination of the Exercise Price shall be appropriately adjusted to apply
      to
      such Alternate Consideration based on the amount of Alternate Consideration
      issuable in respect of one share of Common Stock in such Fundamental
      Transaction, and the Company shall apportion the Exercise Price among the
      Alternate Consideration in a reasonable manner reflecting the relative value
      of
      any different components of the Alternate Consideration. If holders of Common
      Stock are given any choice as to the securities, cash or property to be received
      in a Fundamental Transaction, then the Holder shall be given the same choice
      as
      to the Alternate Consideration it receives upon any exercise of this Warrant
      following such Fundamental Transaction. To the extent necessary to effectuate
      the foregoing provisions, any successor to the Company or surviving entity
      in
      such Fundamental Transaction shall issue to the Holder a new warrant consistent
      with the foregoing provisions and evidencing the Holder’s right to exercise such
      warrant into Alternate Consideration. The terms of any agreement pursuant to
      which a Fundamental Transaction is effected shall include terms requiring any
      such successor or surviving entity to comply with the provisions of this
Section
      6
      and
      ensuring that this Warrant (or any such replacement security) will be similarly
      adjusted upon any subsequent transaction analogous to a Fundamental
      Transaction.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.   
      NO
      STOCKHOLDER RIGHTS.
      Other
      than as provided in Section
      3.3
      or
      otherwise herein, this Warrant in and of itself shall not entitle the Holder
      to
      any voting rights or other rights as a stockholder of the Company.

     

    8.   
      TRANSFER
      OF WARRANT.
      Subject
      to applicable laws and the restriction on transfer set forth in the Subscription
      Agreement, this Warrant and all rights hereunder are transferable, by the Holder
      in person or by duly authorized attorney, upon delivery of this Warrant and
      the
      form of assignment attached hereto to any transferee designated by Holder.
      The
      transferee shall sign an investment letter in form and substance reasonably
      satisfactory to the Company and its counsel.

     

    9.   
      LOST,
      STOLEN, MUTILATED OR DESTROYED WARRANT.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms
      as to indemnity or otherwise as it may reasonably impose (which shall, in the
      case of a mutilated Warrant, include the surrender thereof), issue a new Warrant
      of like denomination and tenor as this Warrant so lost, stolen, mutilated or
      destroyed. Any such new Warrant shall constitute an original contractual
      obligation of the Company, whether or not the allegedly lost, stolen, mutilated
      or destroyed Warrant shall be at any time enforceable by anyone.

     

    10.   
      NOTICES,
      ETC.
      All
      notices required or permitted hereunder shall be in writing and shall be deemed
      effectively given: (a) upon personal delivery to the party to be notified,
      (b)
      when sent by confirmed telex or facsimile if sent during normal business hours
      of the recipient, if not, then on the next business day, (c) five days after
      having been sent by registered or certified mail, return receipt requested,
      postage prepaid, or (d) one day after deposit with a nationally recognized
      overnight courier, specifying next day delivery, with written verification
      of
      receipt. All communications shall be sent to the Company at the address listed
      on the signature page hereto and to Holder at the applicable address set forth
      on the applicable signature page to the Subscription Agreement or at such other
      address as the Company or Holder may designate by ten (10) days advance written
      notice to the other parties hereto.

     

    11.  
       ACCEPTANCE.
      Receipt
      of this Warrant by the Holder shall constitute acceptance of and agreement
      to
      all of the terms and conditions contained herein.

     

    12.   
      GOVERNING
      LAW.
      This
      Warrant and all rights, obligations and liabilities hereunder shall be governed
      by the laws of the State of Delaware.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    13.   
      AMENDMENT
      OR WAIVER.
      Any
      term of this Warrant may be amended or waived (either generally or in a
      particular instance and either retroactively or prospectively) with the written
      consent of the Company and the holders of Company Warrants representing at
      least
      two-thirds of the number of shares of Common Stock then subject to outstanding
      Company Warrants. Notwithstanding the foregoing, (a) this Warrant may be amended
      and the observance of any term hereunder may be waived without the written
      consent of the Holder only in a manner which applies to all Company Warrants
      in
      the same fashion and (b) the number of Exercise Shares subject to this Warrant
      and the Exercise Price of this Warrant may not be amended, and the right to
      exercise this Warrant may not be waived, without the written consent of the
      Holder. The Company shall give prompt written notice to the Holder of any
      amendment hereof or waiver hereunder that was effected without the Holder’s
      written consent. No waivers of any term, condition or provision of this Warrant,
      in any one or more instances, shall be deemed to be, or construed as, a further
      or continuing waiver of any such term, condition or provision.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    
      
        
          NY
            #964217
            v4

          8505/99999-701
            Current/9932649v3   
            08/14/2007 01:45 AM

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      duly
      authorized officer as of August 17, 2007. 

    

     

    
      	
              LEV
                PHARMACEUTICALS, INC.

            
	
              By:
                ___________________________

            
	
              Name:
                

              Title:
                

            
	
              675
                3rd Ave., Ste. 2200

              New
                York, NY 10017-5700 

            
	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NOTICE
      OF
      EXERCISE

     

    TO: LEV
      PHARMACEUTICALS, INC.

     

    (1)         
      [_] The
      undersigned hereby elects to purchase [______] shares of the common stock,
      par
      value $0.01 (the “Common
      Stock”),
      of
      LEV PHARMACEUTICALS, INC. (the “Company”)
      pursuant to the terms of the attached Warrant, and tenders herewith payment
      of
      the exercise price in full, together with all applicable transfer taxes, if
      any.

     

    [_] The
      undersigned hereby elects to purchase [______] shares of Common Stock of the
      Company pursuant to the terms of the net exercise provisions set forth in
Section
      2.1
      of the
      attached Warrant, and shall tender payment of all applicable transfer taxes,
      if
      any.

     

    (2)    Please
      issue the certificate for shares of Common Stock in the name of, and pay any
      cash for any fractional share to:

     

     

    --------------------------------------------------------------------------------

    Print
      or
      type name

     

     

    --------------------------------------------------------------------------------

    Social
      Security or other Identifying Number

     

     

    --------------------------------------------------------------------------------

    Street
      Address

     

     

    --------------------------------------------------------------------------------

    City
      State Zip Code

     

    (3)    If
      such
      number of shares shall not be all the shares purchasable upon the exercise
      of
      the Warrants evidenced by this Warrant, a new warrant certificate for the
      balance of such Warrants remaining unexercised shall be registered in the name
      of and delivered to:

     

    Please
      insert social security or other identifying number:
      ----------------------

     

     

    ----------------------------------------------------------------------------------------------------

    (Please
      print name and address)

     

    ----------------------------------------------------------------------------------------------------

     

    Dated:

     

    

     

    
      	
              (Date)

            	
              ___________________________________

              (Signature)

            
	 	
               

              ___________________________________

              (Print
                name)

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSIGNMENT
      FORM

     

    (To
      assign the foregoing Warrant, execute this form and supply required information.
      Do not use this form to purchase shares.)

     

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to

     

    
      	
              Name:

            	______________________________
	 	
              (Please
                Print)

            
	
              Address:

            	______________________________
	 	
              (Please
                Print)

            
	
              Dated:
                , 200[_]

            	 
	
              Holder’s
                Signature: __________________

            	 
	
              Holder’s
                Address: ________________

            	 

    

     

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatever. Officers of corporations and those acting in a fiduciary or other
      representative capacity should file proper evidence of authority to assign
      the
      foregoing Warrant.Unassociated Document

    23,333,333
      Shares

     

    and
      

     

    Warrants
      to Purchase 4,666,667 Shares

     

    LEV
      PHARMACEUTICALS, INC.

    

    Common
      Stock ($.01 per value)

    

    PLACEMENT
      AGENT AGREEMENT

     

    

    August
      13, 2007

    

    JEFFERIES
      & COMPANY, INC. 

    CIBC
      World Markets Corp.

    Morgan
      Joseph & Co. Inc.

        
      c/o JEFFERIES & COMPANY, INC. 

    520
      Madison Avenue

    New
      York,
      New York 10022

     

     

    Ladies
      and Gentlemen:

     

    Introductory.
      Lev
      Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
      proposes to issue and sell to the purchasers,
      pursuant to the terms and conditions of this Placement Agent Agreement (this
      “Agreement”)
      and
      the Subscription Agreements in the form of Exhibit
      A
      attached
      hereto (the “Subscription
      Agreements”)
      entered into with the purchasers identified therein (each a “Purchaser”
and,
      collectively, the “Purchasers”),
      up
      to
      an
      aggregate of 23,333,333 units
      (the “Units”),
      each
      consisting of (i) one share (a “Share”
      and,
      collectively, the “Shares”)
      of
      common stock, $0.01 par value per share (the “Common
      Stock”)
      of the
      Company and (ii) one warrant in the form of Exhibit
      B
      attached
      hereto (the “Warrant,”
      collectively, the “Warrants”)
      to
      purchase 0.2 shares of Common Stock. The aggregate of 4,666,667 shares of Common
      Stock issuable upon the exercise of the Warrants are referred to herein as
      the
“Warrant
      Shares.”
      The
      Warrant Shares, together with the Shares and the Warrants, are referred to
      herein as the “Securities.”
      The
      Company hereby confirms that Jefferies & Company, Inc. (“Jefferies”
or
      the
“Representative”),
      CIBC
      World Markets Corp. (“CIBC”)
      and
      Morgan Joseph & Co. Inc. (“Morgan
      Joseph”)
      acted
      as Placement Agents (each of Jefferies, CIBC and Morgan Joseph, a “Placement
      Agent”
and,
      collectively, the “Placement
      Agents”)
      in
      accordance with the terms and conditions hereof.

     

    Section
      1.   Agreement
      to Act as Placement Agents; Placement of Securities.
      On the
      basis of the representations, warranties and agreements of the Company herein
      contained, and subject to all the terms and conditions of this
      Agreement:

     

    (a)  The
      Company has authorized and hereby acknowledges that the Placement Agents have
      acted as its exclusive agents to solicit offers for the purchase of all or
      part
      of the Units from the Company in connection with the proposed offering of the
      Units (the “Offering”).
      Until
      the Closing Date (as defined in Section
      3
      hereof),
      the Company shall not, without the prior written consent of the Representative,
      solicit or accept offers to purchase Units, Common Stock or Warrants otherwise
      than through the Placement Agents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  The
      Company hereby acknowledges that the Placement Agents, as agents of the Company,
      used their reasonable best efforts to solicit offers to purchase the Units
      from
      the Company on the terms and subject to the conditions set forth in the
      Prospectus (as defined below). The Placement Agents shall use commercially
      reasonable efforts to assist the Company in obtaining performance by each
      Purchaser whose offer to purchase Units was solicited by the Placement Agents
      and accepted by the Company, but the Placement Agents shall not, except as
      otherwise provided in this Agreement, be obligated to disclose the identity
      of
      any potential purchaser or have any liability to the Company in the event any
      such purchase is not consummated for any reason. Under no circumstances will
      any
      Placement Agent be obligated to underwrite or purchase any Units, Common Stock
      or Warrants for its own account and, in soliciting purchases of Units, the
      Placement Agents acted solely as the Company’s agents and not as principals.
      Notwithstanding the foregoing and except as otherwise provided in this
Section
      1(b),
      it is
      understood and agreed that the Placement Agents (or their respective affiliates)
      may, solely at their discretion and without any obligation to do so,
      purchase Units as principals.

     

    (c)  Subject
      to the provisions of this Section
      1,
      offers
      for the purchase of Units were solicited by the Placement Agents as agents
      for
      the Company at such times and in such amounts as the Placement Agents deemed
      advisable. Each of the Placement Agents communicated to the Company, orally
      or
      in writing, each reasonable offer to purchase Units received by it as agent
      of
      the Company. The Company shall have the sole right to accept offers to purchase
      the Units and may reject any such offer, in whole or in part. Each of the
      Placement Agents has the right, in its discretion reasonably exercised, without
      notice to the Company, to reject any offer to purchase Units received by it,
      in
      whole or in part, and any such rejection shall not be deemed a breach of this
      Agreement. 

     

    (d)  The
      Units
      are being sold to the Purchasers at a price of $1.50 per Unit. The purchases
      of
      the Units by the Purchasers shall be evidenced by the execution of Subscription
      Agreements by each of the
      Purchasers and the Company.

     

    (e)  As
      compensation for services rendered, on the Closing Date (as defined in
Section
      4
      hereof),
      the Company shall pay to the Placement Agents by wire transfer of immediately
      available funds to an account or accounts designated by the Representative,
      an
      aggregate amount equal to six and one-half percent (6.5%) of the gross proceeds
      received by the Company from the sale of the Units on such Closing
      Date;
      provided, however, that no fee shall be due on the first $3,000,000 of Units
      sold in the Offering to the parties listed on Schedule B annexed to a certain
      engagement letter by and between the Company and Jefferies, dated August 3,
      2007. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (f)  No
      Units
      which the Company has agreed to sell pursuant to this Agreement and the
      Subscription Agreements shall be deemed to have been purchased and paid for,
      or
      sold by the Company, until such Units shall have been delivered to the Purchaser
      thereof against payment by such Purchaser. If the Company shall default in
      its
      obligations to deliver Units to a Purchaser whose offer it has accepted, the
      Company shall indemnify and hold the Placement Agents harmless against any
      loss,
      claim, damage or expense arising from or as a result of such default by the
      Company in accordance with Section
      8
      herein.

     

    Section
      2.   Representations
      and Warranties of
      the Company.

     

    The
      Company hereby represents and warrants to each of the Placement Agents, as
      of
      the date of this Agreement and as of the Closing Date (as hereinafter defined),
      and covenants with each of the Placement Agents, as follows:

     

    (a)  The
      Company has prepared and filed with the Securities and Exchange Commission
      (the
“Commission”)
      a
      shelf registration statement on Form
      S-3
      (File No. 333-143196), and has prepared a base prospectus (the “Base
      Prospectus”)
      to be
      used in connection with the public offering and sale of the Units. Such
      registration statement, as amended, including the financial statements, exhibits
      and schedules thereto, in the form in which it was declared effective by the
      Commission under the Securities Act of 1933, as amended, and the rules and
      regulations promulgated thereunder (collectively, the “Securities
      Act”),
      including all documents incorporated or deemed to be incorporated by reference
      therein and any information deemed to be a part thereof at the time of
      effectiveness pursuant to Rule 430B under the Securities Act or the Securities
      Exchange Act of 1934, as amended, and the rules and regulations promulgated
      thereunder (collectively, the “Exchange
      Act”),
      is
      called the “Registration
      Statement.”
      Any
      registration statement filed by the Company pursuant to Rule 462(b) under the
      Securities Act is called the “Rule
      462(b) Registration Statement”
and,
      from and after the date and time of filing of the Rule 462(b) Registration
      Statement (if any) the term “Registration Statement” shall include the Rule
      462(b) Registration Statement. Such
      prospectus, in the form first used by the Placement Agents to confirm sales
      of
      the Units or in the form first made available to the Placement Agents by the
      Company to meet requests of purchasers pursuant to Rule 173 under the Securities
      Act, is called the “Prospectus.” Any
      preliminary prospectus supplement describing the Units and the offering thereof,
      together with the Base Prospectus, is called the “Preliminary
      Prospectus,”
and
      the
      Preliminary Prospectus and any other preliminary prospectus
      supplement to the Base Prospectus that describes the Units and the offering
      thereof and is used prior to the filing of the Prospectus (as defined below),
      together with the Base Prospectus, is called a “preliminary
      prospectus.”
As
      used herein, the term “Prospectus”
shall
      mean the final prospectus supplement, dated August 13, 2007, to the Base
      Prospectus that describes the Units and the offering thereof (the “Final
      Prospectus Supplement”),
      together with the Base Prospectus,
      in the
      form first used by the Placement Agents to confirm sales of the Units or
      in the
      form first made available to the Placement Agents by the Company to meet
      requests of purchasers pursuant to Rule 173 under the Securities Act.
      As used
      herein,“Applicable
      Time”
is
      5:00
      p.m. (New York time) on
      August
      13,
      2007. As
      used
      herein, “Time
      of Sale Prospectus”
means
      the preliminary prospectus, as amended or supplemented immediately prior to
      the
      Applicable Time, and each “road show” (as defined in Rule 433 under the
      Securities Act), if any, related to the offering of the Units contemplated
      hereby that is a “written communication” (as defined in Rule 405 under the
      Securities Act) (each such road show, a “Road
      Show”).
      As
      used herein, the terms “Registration Statement,”“Rule
      462(b) Registration Statement”, “Preliminary Prospectus”“preliminary
      prospectus,” “Base Prospectus,” “Time of Sale Prospectus” and “Prospectus” shall
      include the documents incorporated and deemed to be incorporated by reference
      therein. All
      references in this Agreement to amendments or supplements to the Registration
      Statement, the Rule 462(b) Registration Statement, the Preliminary Prospectus,
      any preliminary prospectus, the Base Prospectus, the Time of Sale Prospectus
      or
      the Prospectus shall be deemed to mean and include the filing of any document
      under the Exchange Act which is or is deemed to be incorporated by reference
      in
      the Registration Statement, the Rule 462(b) Registration Statement, the
      Preliminary Prospectus, any preliminary prospectus, the Base Prospectus, the
      Time of Sale Prospectus or the Prospectus, as the case may be. All
      references in this Agreement to (i) the
      Registration Statement, the 462(b) Registration Statement, any Preliminary
      Prospectus, a preliminary prospectus, the Base Prospectus or the Prospectus,
      or
      any amendments or supplements to any of the foregoing, shall include any copy
      thereof filed with the Commission pursuant to its Electronic Data Gathering,
      Analysis and Retrieval System (“EDGAR”)
      and
      (ii) the Prospectus shall be deemed to include the “electronic
      Prospectus”
      provided for use in connection with the offering of the Units as contemplated
      by
      Section 3(l) of this Agreement. All
      references in this Agreement to financial statements and schedules and other
      information which are “contained,”
      “included”
or
      “stated”
in
      the
      Registration Statement, the Rule 462(b) Registration Statement, the Preliminary
      Prospectus, any preliminary prospectus, the Base Prospectus, the Time of Sale
      Prospectus or the Prospectus (and all other references of like import) shall
      be
      deemed to mean and include all such financial statements and schedules and
      other
      information which is or is deemed to be incorporated by reference in the
      Registration Statement or the Prospectus, as the case may be; and all references
      in this Agreement to amendments or supplements to the Registration Statement,
      the Rule 462(b) Registration Statement, the Preliminary Prospectus, any
      preliminary prospectus, the Base Prospectus, the Time of Sale Prospectus or
      the
      Prospectus, as the case may be, and all references in this Agreement to
      amendments or supplements to the Registration Statement, the Rule 462(b)
      Registration Statement, the Preliminary Prospectus, any preliminary prospectus,
      the Base Prospectus, the Time of Sale Prospectus or the Prospectus shall be
      deemed to mean and include the filing of any document under the Exchange Act
      which is or is deemed to be incorporated by reference in the Registration
      Statement, the Rule 462(b) Registration Statement, the Preliminary Prospectus,
      any preliminary prospectus, the Base Prospectus, the Time of Sale Prospectus
      or
      the Prospectus, as the case may be.

     

    
      
        
        

      

      
        3

        
          

        

      

      (b)  Compliance
        with Registration Requirements.
        The
        Registration Statement and any Rule 462(b) Registration Statement have been
        declared effective by the Commission under the Securities Act. The Company
        has
        complied, to the Commission’s satisfaction. with all requests of the Commission
        for additional or supplemental information. No stop order suspending the
        effectiveness of the Registration Statement or any Rule 462(b) Registration
        Statement is in effect and no proceedings for such purpose have been instituted
        or are pending or, to the best knowledge of the Company, are contemplated
        or
        threatened by the Commission. 

    

     

    Each
      preliminary prospectus and the Prospectus when filed complied in all material
      respects with the Securities Act and, if filed by electronic transmission
      pursuant to EDGAR (except as may be permitted by Regulation S-T under the
      Securities Act), was identical to the copy thereof delivered to the Placement
      Agents for use in connection with the offer and sale of the Units. Each of
      the
      Registration Statement, any Rule 462(b) Registration Statement and any
      post-effective amendment thereto, at the time it became effective and at all
      subsequent times, complied and will comply in all material respects with the
      Securities Act and did not and will not contain any 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 not misleading. As of the Applicable
      Time, the Time of Sale Prospectus did not, and at the time of each sale of
      the
      Shares and at the Closing Date (as defined in Section
      3),
      the
      Time of Sale Prospectus, as then amended or supplemented by the Company, if
      applicable, will not, contain any untrue statement of a material fact or omit
      to
      state a material fact necessary to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading. The
      Prospectus, as
      amended or supplemented, as of its date and at all subsequent times, did not
      and
      will not contain any untrue statement of a material fact or omit to state a
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading. The
      representations and warranties set forth in the three immediately preceding
      sentences do not apply to statements in or omissions from the Registration
      Statement, any Rule 462(b) Registration Statement, or any post-effective
      amendment thereto, or the Prospectus or the Time of Sale Prospectus, or any
      amendments or supplements thereto, made in reliance upon and in conformity
      with
      information relating to any Placement Agent furnished to the Company in writing
      by the Representative expressly for use therein, it
      being
      understood and agreed that the only such information furnished by the Placement
      Agents to the Company consists of the information described in Section
      8(b)
      below.
      There
      are no contracts or other documents required to be described in the Time of
      Sale
      Prospectus or the Prospectus or to be filed as exhibits to the Registration
      Statement which have not been described or filed as required.

     

    The
      Company has not prepared, used or referred to, and will not, without the
      Representative’s prior consent, prepare, use or refer to, any free writing
      prospectus.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (c)  Offering
      Materials Furnished to Placement Agents.
      The
      Company has delivered to the Representative a
      complete copy of the Registration Statement, each amendment thereto and any
      Rule
      462(b) Registration Statement and of each consent and certificate of experts
      filed as a part thereof, and conformed copies of the Registration Statement,
      each amendment thereto and any Rule 462(b) Registration Statement (without
      exhibits) and preliminary prospectuses, the Time of Sale Prospectus, the
      Prospectus, as amended or supplemented, in such quantities and at such places
      as
      the Representative has reasonably requested for each of the Placement
      Agents.

     

    (d)  Distribution
      of Offering Material By the Company.
      The
      Company has not distributed and will not distribute, prior to the Closing,
      any
      offering material in connection with the offering and sale of the Units other
      than a preliminary prospectus, the Time of Sale Prospectus, the Prospectus
      or
      the Registration Statement. 

     

    (e)  Authorization
      of Agreements.
      Each of
      this Agreement the Subscription Agreements and that certain Escrow Agreement,
      dated the date hereof (the “Escrow
      Agreement”),
      between the Company and JPMorgan Chase Bank, N.A. has been duly authorized,
      executed and delivered by, and is a valid and binding agreement of, the Company,
      enforceable in accordance with its terms, except as rights to indemnification
      hereunder may be limited by applicable law and except as the enforcement hereof
      and thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
      or other similar laws relating to or affecting the rights and remedies of
      creditors or by general equitable principles.

     

    (f)  Authorization
      of the Securities.
      The
      Shares and Warrants to be issued and sold to the Purchasers pursuant to this
      Agreement, and the Warrant Shares which are issuable upon exercise of the
      Warrants, have been duly authorized for issuance and sale pursuant to this
      Agreement and, when issued and delivered by the Company pursuant to this
      Agreement or the Warrants, as the case may be, will be validly issued, fully
      paid and nonassessable, and the issuance and sale of the Securities is not
      subject to any preemptive rights, rights of first refusal or other similar
      rights to subscribe for or purchase any of the Securities. 

     

    (g)  No
      Applicable Registration or Other Similar Rights.
      There
      are no persons with registration or other similar rights to have any equity
      or
      debt securities registered for sale under the Registration Statement or included
      in the offering contemplated by this Agreement.

     

    (h)  No
      Material Adverse Change.
      Except
      as otherwise disclosed in the Time of Sale Prospectus, subsequent to the
      respective dates as of which information is given in Time of Sale Prospectus:
      (i)  there has been no material adverse change, or any development that
      could reasonably be expected to result in a material adverse change, in the
      condition, financial or otherwise, or in the earnings, business, operations
      or
      prospects, whether or not arising from transactions in the ordinary course
      of
      business, of the Company and its subsidiaries, considered as one entity (any
      such change is called a “Material
      Adverse Change”);
      (ii) the Company and its subsidiaries, considered as one entity, have not
      incurred any material liability or obligation, indirect, direct or contingent,
      not in the ordinary course of business nor entered into any material transaction
      or agreement not in the ordinary course of business; and (iii) there has
      been no dividend or distribution of any kind declared, paid or made by the
      Company or, except for dividends paid to the Company or other subsidiaries,
      any
      of its subsidiaries on any class of capital stock or repurchase or redemption
      by
      the Company or any of its subsidiaries of any class of capital
      stock.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (i)  Independent
      Accountants.
      Eisner
      LLP, who have expressed their opinion with respect to the financial statements
      (which term as used in this Agreement includes the related notes thereto) and
      supporting schedules filed with the Commission as a part of the Registration
      Statement and included in the Preliminary Prospectus, the Prospectus and Time
      of
      Sale Prospectus (each, an “Applicable
      Prospectus”
and
      collectively, the “Applicable
      Prospectuses”),
      are
      (i) independent public or certified public accountants as required by the
      Securities Act and the Exchange Act,
      (ii) in
      compliance with the applicable requirements relating to the qualification of
      accountants under Rule 2-01 of Regulation S-X and (iii) a registered public
      accounting firm as defined by the Public Company Accounting Oversight Board
      (the
“PCAOB”)
      whose
      registration has not been suspended or revoked and who has not requested such
      registration to be withdrawn.

     

    (j)  Preparation
      of the Financial Statements.
      The
      financial statements filed with the Commission as a part of the Registration
      Statement and included in the Preliminary Prospectus, the Time of Sale
      Prospectus and the Prospectus present fairly the consolidated financial position
      of the Company and its subsidiaries as of and at the dates indicated and the
      results of their operations and cash flows for the periods specified. The
      supporting schedules included in the Registration Statement present fairly
      the
      information required to be stated therein. Such financial statements and
      supporting schedules have been prepared in conformity with generally accepted
      accounting principles applied
      on a consistent basis throughout the periods involved, except as may be
      expressly stated in the related notes thereto. No other financial statements
      or
      supporting schedules are required to be included in the Registration Statement
      or any Applicable Prospectus. The financial data set forth in each Applicable
      Prospectus fairly present the information set forth therein on a basis
      consistent with that of the audited financial statements contained in the
      Registration Statement and each Applicable Prospectus. No person who has been
      suspended or barred from being associated with a registered public accounting
      firm, or who has failed to comply with any sanction pursuant to Rule 5300
      promulgated by the PCAOB, has participated in or otherwise aided the preparation
      of, or audited, the financial statements, supporting schedules or other
      financial data filed with the Commission as a part of the Registration Statement
      and included in any Applicable Prospectus.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (k)  Company’s
      Accounting System.
      The
      Company and each of its subsidiaries make and keep accurate books and records
      and maintain a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management’s general or specific authorization; (ii) transactions are
      recorded as necessary to permit preparation of financial statements in
      conformity with generally accepted accounting principles and to maintain
      accountability for assets; (iii) access to assets is permitted only in
      accordance with management’s general or specific authorization; and
      (iv) the recorded accountability for assets is compared with existing
      assets at reasonable intervals and appropriate action is taken with respect
      to
      any differences. There has not been and is no material weakness in the
      Company’s internal control over financial reporting (whether or not remediated)
      and since December 31, 2006, there has been no change in the Company’s
      internal control over financial reporting that has materially affected, or
      is
      reasonably likely to materially affect, the Company’s internal control over
      financial reporting except as disclosed in the Registration Statement and the
      Prospectus.

     

    (l)  Incorporation
      and Good Standing of the Company and its Subsidiaries.
      Each of
      the Company and its subsidiaries has been duly incorporated or organized, as
      the
      case may be, and is validly existing as a corporation, partnership or limited
      liability company, as applicable, in good standing under the laws of the
      jurisdiction of its incorporation or organization and has the power and
      authority (corporate or other) to own, lease and operate its properties and
      to
      conduct its business as described in each Applicable Prospectus and, in the
      case
      of the Company, to enter into and perform its obligations under this Agreement,
      the Subscription Agreements, the Escrow Agreement and the Warrants. Each of
      the
      Company and each subsidiary is duly qualified as a foreign corporation,
      partnership or limited liability company, as applicable, to transact business
      and is in good standing in the State of New York and each other jurisdiction
      in
      which such qualification is required, whether by reason of the ownership or
      leasing of property or the conduct of business. All of the issued and
      outstanding capital stock or other equity or ownership interests of each
      subsidiary have been duly authorized and validly issued, are fully paid and
      nonassessable and are owned by the Company, directly or through subsidiaries,
      free and clear of any security interest, mortgage, pledge, lien, encumbrance
      or
      adverse claim. The Company does not own or control, directly or indirectly,
      any
      corporation, association or other entity other than (i) the subsidiaries listed
      in Exhibit 21
      to the
      Registration Statement and (ii) such other entities omitted from Exhibit 21
      which, when such omitted entities are considered in the aggregate as a single
      subsidiary, would not constitute a “significant subsidiary” within the meaning
      of Rule 1-02(w) of Regulation S-X. 

     

    
      
        
        

      

      
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    (m)  Capitalization
      and Other Capital Stock Matters.
      The
      authorized, issued and outstanding capital stock of the Company is as set forth
      in each Applicable Prospectus under the caption “Capitalization” (other than for
      subsequent issuances, if any, pursuant to employee benefit plans described
      in
      the Time of Sale Prospectus or upon the exercise of outstanding options or
      warrants described in each Applicable Prospectus). The Units (including the
      Shares, Warrants and Warrant Shares) conform in all material respects to the
      description thereof contained in the Time of Sale Prospectus. All of the issued
      and outstanding Shares have been duly authorized and validly issued, are fully
      paid and nonassessable and have been issued in compliance with federal and
      state
      securities laws. None of the outstanding Shares was issued in violation of
      any
      preemptive rights, rights of first refusal or other similar rights to subscribe
      for or purchase securities of the Company. There are no authorized or
      outstanding options, warrants, preemptive rights, rights of first refusal or
      other rights to purchase, or equity or debt securities convertible into or
      exchangeable or exercisable for, any capital stock of the Company or any of
      its
      subsidiaries other than those accurately described in each Applicable
      Prospectus. The description of the Company’s stock option, stock bonus and other
      stock plans or arrangements, and the options or other rights granted thereunder,
      set forth in each Applicable Prospectus accurately and fairly presents the
      information required to be shown with respect to such plans, arrangements,
      options and rights.

     

    (n)  Trading;
      Exchange Account
      Registration.
      The
      Shares trade publicly on the OTC Bulletin Board under the symbol LEVP.OB.
 The
      Shares are registered pursuant to Section 12(g) of the Exchange Act and the
      Company has taken no action designed to, or likely to have the effect of,
      terminating the registration of the Shares under the Exchange Act, nor has
      the
      Company received any notification that the Commission is contemplating
      terminating such registration.

     

    
      
        
        

      

      
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    (o)  Non-Contravention
      of Existing Instruments; No Further Authorizations or Approvals
      Required.
      Neither
      the Company nor any of its subsidiaries is in violation of its charter or
      by-laws, partnership agreement or operating agreement or similar organizational
      document, as applicable, or is in default (or, with the giving of notice or
      lapse of time, would be in default) (“Default”)
      under
      any indenture, mortgage, loan or credit agreement, note, contract, franchise,
      lease or other instrument to which the Company or any of its subsidiaries is
      a
      party or by which it or any of them may be bound (including, without limitation,
      any credit agreement, indenture, pledge agreement, security agreement or other
      instrument or agreement evidencing, guaranteeing, securing or relating to
      indebtedness of the Company or any of its subsidiaries ),
      or to which any of the property or assets of the Company or any of its
      subsidiaries is subject (each, an “Existing
      Instrument”),
      except for such Defaults as would not, individually or in the aggregate, result
      in a Material Adverse Change. The Company’s execution, delivery and performance
      of this Agreement, the Subscription Agreements and the Escrow Agreement,
      consummation of the transactions contemplated hereby or thereby and by each
      Applicable Prospectus and the issuance and sale of the Securities and compliance
      by the Company with the terms and provisions of the Warrants (i) have been
      duly
      authorized by all necessary corporate action and will not result in any
      violation of the provisions of the charter or by-laws, partnership agreement
      or
      operating agreement or similar organizational document of the Company or any
      subsidiary, as applicable, (ii) will not conflict with or constitute a
      breach of, or Default under, or result in the creation or imposition of any
      lien, charge or encumbrance upon any property or assets of the Company or any
      of
      its subsidiaries pursuant to, or require the consent of any other party to,
      any
      Existing Instrument and (iii) will not result in any violation of any law,
      administrative regulation or administrative or court decree applicable to the
      Company or any subsidiary. No consent, approval, authorization or other order
      of, or registration or filing with, any court or other governmental or
      regulatory authority or agency, is required for the Company’s execution,
      delivery and performance of this Agreement and consummation of the transactions
      contemplated hereby and by each Applicable Prospectus, except such
      as
      have been obtained or made by the Company and are in full force and effect
      under
      the Securities Act, applicable state securities or blue sky laws and from the
      NASD.
      For
      purposes of qualification under state securities, or “blue sky,” laws, the
      Company has listed
      with the S&P Company Guide, which listing will be effective on or before the
      Closing Date. 

     

    (p)  No
      Material Actions or Proceedings.
      There
      are no legal or governmental actions, suits or proceedings (including any
      proceeding before the United States Food and Drug Administration of the U.S.
      Department of Health and Human Services (“FDA”)
      or
      comparable federal, state, local or foreign governmental bodies) pending or,
      to
      the best of the Company’s knowledge, threatened (i) against or affecting
      the Company or any of its subsidiaries, (ii) which have as the subject
      thereof any officer or director of, or property owned or leased by, the Company
      or any of its subsidiaries or (iii) relating to environmental or
      discrimination matters, where in any such case (A) there is a reasonable
      possibility that such action, suit or proceeding might be determined adversely
      to the Company, such subsidiary or such officer or director, (B) any such
      action, suit or proceeding, if so determined adversely, would reasonably be
      expected to result in a Material Adverse Change or adversely affect the
      consummation of the transactions contemplated by this Agreement and the
      Subscription Agreements or (C) any such action, suit or proceeding is or would
      be material in the context of the sale of Units. No material labor dispute
      with
      the employees of the Company or any of its subsidiaries, or with the employees
      of any principal supplier, manufacturer, customer or contractor of the Company,
      exists or, to the best of the Company’s knowledge, is threatened or
      imminent.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (q)  Intellectual
      Property Rights.
      The
      Company and its subsidiaries own or possess the right to use all patents,
      trademarks, trademark registrations, service marks, service mark registrations,
      trade names, copyrights, licenses, inventions, software, databases, know-how,
      Internet domain names, trade secrets and other unpatented and/or unpatentable
      proprietary or confidential information, systems or procedures, and other
      intellectual property (collectively, “Intellectual
      Property”)
      necessary to carry on their respective businesses as currently conducted, and
      as
      proposed to be conducted and described in the Time of Sale Prospectus, and
      the
      Company is not aware of any claim to the contrary or any challenge by any other
      person to the rights of the Company and its subsidiaries with respect to the
      foregoing except for those that would not reasonably be expected to have a
      Material Adverse Change. To the knowledge of the Company, the Intellectual
      Property licenses described in the Registration Statement and the Time of Sale
      Prospectus are valid, binding upon, and enforceable by or against the parties
      thereto in accordance to its terms. To the knowledge of the Company, the Company
      and each of its subsidiaries has complied in all material respects with, and
      is
      not in breach nor has received any asserted or threatened claim of breach of,
      any Intellectual Property license, and the Company has no knowledge of any
      breach or anticipated breach by any other person to any Intellectual Property
      license. The Company’s and each of its subsidiaries’ businesses as now conducted
      and as proposed to be conducted do not and will not, to the Company’s knowledge,
      infringe or conflict with any patents, trademarks, service marks, trade names,
      copyrights, trade secrets, licenses or other Intellectual Property or franchise
      right of any person. To the Company’s knowledge, no claim has been made against
      the Company or any of its subsidiaries alleging the infringement by the Company
      or any of its subsidiaries of any patent, trademark, service mark, trade name,
      copyright, trade secret, license in or other intellectual property right or
      franchise right of any person which is expected by the Company to have a
      material adverse effect on the the Company. The Company and each of its
      subsidiaries has taken all reasonable steps to protect, maintain and safeguard
      its rights in all Intellectual Property, including the execution of appropriate
      nondisclosure and confidentiality agreements. The consummation of the
      transactions contemplated by this Agreement will not result in the loss or
      impairment of or payment of any additional amounts with respect to, nor require
      the consent of any other person in respect of, the Company’s or any of its
      subsidiaries’ right to own, use, or hold for use any of the Intellectual
      Property as owned, used or held for use in the conduct of the businesses as
      currently conducted. The Company and each of its subsidiaries has at all times
      complied with all applicable laws relating to privacy, data protection, and
      the
      collection and use of personal information collected, used, or held for use
      by
      the Company and any of its subsidiaries in the conduct of the Company’s and its
      subsidiaries businesses. To the Company’s knowledge, no claims have been
      asserted or threatened against the Company or any of its subsidiaries alleging
      a
      violation of any person’s privacy or personal information or data rights and the
      consummation of the transactions contemplated hereby will not breach or
      otherwise cause any violation of any law related to privacy, data protection,
      or
      the collection and use of personal information collected, used, or held for
      use
      by the Company or any of its subsidiaries in the conduct of the Company’s or any
      of its subsidiaries’ businesses. The Company and each of its subsidiaries take
      reasonable measures to ensure that such information is protected against
      unauthorized access, use, modification, or other misuse.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (r)  All
      Necessary Permits, etc.
      The
      Company and each subsidiary possess such valid and current certificates,
      authorizations or permits issued by the appropriate state, federal or foreign
      regulatory agencies or bodies necessary to conduct their respective businesses
      (including any certificates, authorizations or permits required by the FDA
      or
      comparable federal, state, local or foreign governmental bodies), and neither
      the Company nor any subsidiary has received, or has any reason to believe that
      it will receive, any notice of proceedings relating to the revocation or
      modification of, or non-compliance with, any such certificate, authorization
      or
      permit which, singly or in the aggregate, if the subject of an unfavorable
      decision, ruling or finding, could result in a Material Adverse
      Change.

     

    (s)  Compliance
      with Laws.
      The
      Company has not been advised, and has no reason to believe, that it and each
      of
      its subsidiaries are not conducting business in compliance with all applicable
      laws, rules and regulations of the jurisdictions in which it is conducting
      business, including, without limitation, the rules and regulations of the FDA
      or
      comparable federal, state, local or foreign governmental bodies, except where
      failure to be so in compliance would not result in a Material Adverse Change.
      The studies, tests and preclinical or clinical trials conducted by or on behalf
      of the Company that are described in the Registration Statement and the
      Prospectus (the “Company
      Studies and Trials”)
      were
      and, if still pending, are being, conducted in all material respects in
      accordance with experimental protocols, procedures and controls pursuant to,
      where applicable, accepted professional scientific standards; the descriptions
      of the results of the Company Studies and Trials contained in the Registration
      Statement and the Prospectus are accurate in all material respects; and the
      Company has not received any notices or correspondence with the FDA or any
      foreign, state or local governmental body exercising comparable authority
      mandating the termination, suspension or material modification of any Company
      Studies or Trials that termination, suspension or material modification would
      reasonably be expected to have a Material Adverse Effect. 

     

    
      
        
        

      

      
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    (t)  Title
      to Properties.
      The
      Company and each of its subsidiaries has good and marketable title to all of
      the
      real and personal property and other assets reflected as owned in the financial
      statements referred to in Section 2(a)
      above
      (or elsewhere in any Applicable Prospectus), in each case free and clear of
      any
      security interests, mortgages, liens, encumbrances, equities, adverse claims
      and
      other defects, except such as do not materially and adversely affect the value
      of such property and do not materially interfere with the use made or proposed
      to be made of such property by the Company or such subsidiary. The real
      property, improvements, equipment and personal property held under lease by
      the
      Company or any subsidiary are held under valid and enforceable leases, with
      such
      exceptions as are not material and do not materially interfere with the use
      made
      or proposed to be made of such real property, improvements, equipment or
      personal property by the Company or such subsidiary.

     

    (u)  Tax
      Law Compliance.
      The
      Company and its subsidiaries have filed all necessary federal, state and foreign
      income and franchise tax returns and have paid all taxes required to be paid
      by
      any of them and, if due and payable, any related or similar assessment, fine
      or
      penalty levied against any of them. The Company has made adequate charges,
      accruals and reserves in the applicable financial statements referred to in
      Section 2(a)
      above
      in respect of all federal, state and foreign income and franchise taxes for
      all
      periods as to which the tax liability of the Company or any of its subsidiaries
      has not been finally determined.

     

    (v)  Company
      Not an “Investment Company.”
      The
      Company has been advised of the rules and requirements under the Investment
      Company Act of 1940, as amended (the “Investment
      Company Act”).
      The
      Company is not, and will not be, either after receipt of payment for the Shares
      or after the application of the proceeds therefrom as described under “Use of
      Proceeds” in each Applicable Prospectus, an “investment
      company”
within
      the meaning of Investment Company Act and will conduct its business in a manner
      so that it will not become subject to the Investment Company Act.

     

    (w)  Insurance.
      Each of
      the Company and its subsidiaries are insured by recognized, financially sound
      and reputable institutions with policies in such amounts and with such
      deductibles and covering such risks as are generally deemed adequate and
      customary for their businesses including, but not limited to, policies covering
      real and personal property owned or leased by the Company and its subsidiaries
      against theft, damage, destruction, acts of vandalism and earthquakes and
      policies covering the Company and its subsidiaries for product liability claims
      and clinical trial liability claims. The Company has no reason to believe that
      it or any subsidiary will not be able (i) to renew its existing insurance
      coverage as and when such policies expire or (ii) to obtain comparable
      coverage from similar institutions as may be necessary or appropriate to conduct
      its business as now conducted and at a cost that would not result in a Material
      Adverse Change. Neither of the Company nor any subsidiary has been denied any
      insurance coverage which it has sought or for which it has applied.

     

    
      
        
        

      

      
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    (x)  No
      Price Stabilization or Manipulation;
      Compliance with Regulation M.
      The
      Company has not taken, directly or indirectly, any action designed to or that
      might be reasonably expected to cause or result in stabilization or manipulation
      of the price of the Shares or any other “reference
      security”
(as
      defined in Rule 100 of Regulation M under the 1934 Act (“Regulation
      M”))
      whether to facilitate the sale or resale of the Shares or otherwise, and has
      taken no action which would directly or indirectly violate Regulation M.

     

    (y)  Related
      Party Transactions.
      There
      are no business relationships or related-party transactions involving the
      Company or any of its subsidiaries or any other person required to be described
      in each Applicable Prospectus which have not been described as required.

     

    (y)    S-3
      Eligibility. At
      the
      time the Registration Statement was originally declared effective and at the
      time the Company’s Annual Report on Form 10-KSB for the year ended
      December 31, 2006 (the “Annual
      Report”)
      was
      filed with the Commission, the Company met the then applicable requirements
      for
      use of Form S-3 under the Securities Act. The Company does not meet the
      requirements for use of Form S-3 under the Securities Act specified in
      Conduct Rule 2710(b)(7)(C)(i) of the National Association of Securities
      Dealers Inc. (the “NASD”).

     

    (z)    Exchange
      Act Compliance.
      The
      documents incorporated or deemed to be incorporated by reference in the
      Prospectus, at the time they were or hereafter are filed with the Commission,
      complied and will comply in all material respects with the requirements of
      the
      Exchange Act, and, when read together with the other information in the
      Prospectus, at the time the Registration Statement and any amendments thereto
      become effective and at the Closing Date will not 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 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.

     

    (z)  NASD
      Matters.
      All of
      the information provided to the Placement Agents or to counsel for the Placement
      Agents by the Company, its officers and directors and the holders of any
      securities (debt or equity) or options to acquire any securities of the Company
      in connection with letters, filings or other supplemental information provided
      to the NASD pursuant to NASD Conduct Rule 2710 or 2720 is true, complete
      and correct.

     

    (aa)  Parties
      to Lock-Up Agreements.
      Each of
      the Company’s directors and executive officers listed in Exhibit D
      has
      executed and delivered to Jefferies a lock-up agreement in the form of
Exhibit E
      hereto.
Exhibit D
      hereto
      contains a true, complete and correct list of all directors and executive
      officers of the Company. If any additional persons shall become directors or
      executive
      officers
      of the Company prior to the end of the Company Lock-up Period (as defined
      below), the Company shall cause each such person,
      prior
      to or contemporaneously with their appointment or election as a director or
      executive officer of the Company,
      to
      execute and deliver to Jefferies an agreement in the form attached hereto as
      Exhibit
      E.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (bb)  Statistical
      and Market-Related Data.
      The
      statistical, demographic and market-related data included in the Registration
      Statement and each Applicable Prospectus are based on or derived from sources
      that the Company believes to be reliable and accurate or represent the Company’s
      good faith estimates that are made on the basis of data derived from such
      sources. 

     

    (cc)  Disclosure
      Controls and Procedures; Deficiencies in or Changes to Internal Control Over
      Financial Reporting.
      The
      Company has established and maintains disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), which (i) are
      designed to ensure that material information relating to the Company, including
      its consolidated subsidiaries, is made known to the Company’s principal
      executive officer and its principal financial officer by others within those
      entities, particularly during the periods in which the periodic reports required
      under the Exchange Act are being prepared; (ii) have been evaluated by
      management of the Company for effectiveness as of the end of the Company’s most
      recent fiscal quarter; and (iii) are effective in all material respects to
      perform the functions for which they were established. The Company is not aware
      of (i) any significant deficiencies or material weaknesses in the design or
      operation of internal control over financial reporting which are reasonably
      likely to adversely affect the Company’s ability to record, process, summarize
      and report financial information or (ii) any fraud, whether or not material,
      that involves management or other employees who have a significant role in
      the
      Company’s internal control over financial reporting. The Company is not aware of
      any change in its internal control over financial reporting that has occurred
      during its most recent fiscal quarter that has materially affected, or is
      reasonably likely to materially affect, the Company’s internal control over
      financial reporting. 

     

    (dd)  ERISA
      Compliance.
      The
      Company and its subsidiaries and any “employee
      benefit plan”
(as
      defined under the Employee Retirement Income Security Act of 1974, as amended,
      and the regulations and published interpretations thereunder (collectively,
      “ERISA”))
      established or maintained by the Company, its subsidiaries or their
“ERISA
      Affiliates”
(as
      defined below) are, to the Company’s knowledge, in compliance in all material
      respects with ERISA. “ERISA
      Affiliate”
means,
      with respect to the Company or a subsidiary, any member of any group of
      organizations described in Sections 414(b),(c),(m) or (o) of the Internal
      Revenue Code of 1986, as amended, and the regulations and published
      interpretations thereunder (the “Code”)
      of
      which the Company or such subsidiary is a member. No “reportable
      event”
(as
      defined under ERISA) has occurred or is reasonably expected to occur with
      respect to any “employee
      benefit plan”
      established or maintained by the Company, its subsidiaries or any of their
      ERISA
      Affiliates. No “employee
      benefit plan”
      established or maintained by the Company, its subsidiaries or any of their
      ERISA
      Affiliates, if such “employee
      benefit plan”
were
      terminated, would have any “amount
      of unfunded benefit liabilities”
(as
      defined under ERISA). Neither the Company, its subsidiaries nor any of their
      ERISA Affiliates has incurred or reasonably expects to incur any liability
      under
      (i) Title IV of ERISA with respect to termination of, or withdrawal
      from, any “employee
      benefit plan”
or
      (ii) Sections 412, 4971, 4975 or 4980B of the Code. Each “employee
      benefit plan”
      established or maintained by the Company, its subsidiaries or any of their
      ERISA
      Affiliates that is intended to be qualified under Section 401(a) of the
      Code is so qualified and nothing has occurred, whether by action or failure
      to
      act, which would cause the loss of such qualification. 

     

    
      
        
        

      

      
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    (ee)  Brokers.
      Except
      for the commissions payable to the Placement Agents as described
      in the
Time
      of
      Sale Prospectus and the Prospectus, there is no broker, finder or other party
      that is entitled to receive from the Company any brokerage or finder’s fee or
      other fee or commission as a result of any transactions contemplated by this
      Agreement and the Subscription Agreements, except for sales to parties on the
      Schedule B described in Section 1(e) above

     

    (ff)  Compliance
      with Cuba Act.
      The
      Company has complied with, and is and will be in compliance with, the provisions
      of that certain Florida act relating to disclosure of doing business with Cuba,
      codified as Section 517.075 of the Florida statutes, and the rules and
      regulations thereunder (collectively, the “Cuba
      Act”)
      or is
      exempt therefrom. 

     

    (gg)  Foreign
      Corrupt Practices Act.
      Neither
      the Company nor any of its subsidiaries nor, to the knowledge of the Company,
      any director, officer, agent, employee, affiliate or other person acting on
      behalf of the Company or any of its subsidiaries is aware of or has taken any
      action, directly or indirectly, that has resulted or would result in a violation
      of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and
      regulations thereunder (the “FCPA”),
      including, without limitation, making use of the mails or any means or
      instrumentality of interstate commerce corruptly in furtherance of an offer,
      payment, promise to pay or authorization of the payment of any money, or other
      property, gift, promise to give, or authorization of the giving of anything
      of
      value to any “foreign official” (as such term is defined in the FCPA) or any
      foreign political party or official thereof or any candidate for foreign
      political office, in contravention of the FCPA; and the Company and its
      subsidiaries and, to the knowledge of the Company, the Company’s affiliates have
      conducted their respective businesses in compliance with the FCPA and have
      instituted and maintain policies and procedures designed to ensure, and which
      are reasonably expected to continue to ensure, continued compliance
      therewith.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Any
      certificate signed by or on behalf of the Company and delivered to the Placement
      Agents or to counsel for the Placement Agents shall be deemed to be a
      representation and warranty by the Company to the Placement Agents and the
      Purchasers as to the matters covered thereby.

     

    The
      Company acknowledges that the Placement Agents and, for purposes of the opinions
      to be delivered pursuant to Section
      6
      hereof,
      counsel to the Company and counsel to the Placement Agents, will rely upon
      the
      accuracy and truthfulness of the foregoing representations (and to the extent
      deemed necessary by counsel to the Company, certificates of officers of the
      Company and its subsidiaries) and hereby consents to such reliance.

     

    Section
      3.   The
      Closing.

     

    The
      time
      and date of closing and delivery of the documents required to be delivered
      to
      the Placement Agents and the Purchasers pursuant to Sections
      4 and
      6
      hereof
      shall be at 10:00 A.M., New York time, on August 17, 2007 (the “Closing
      Date”)
      at the
      office of Becker & Poliakoff, P.A., 45 Broadway 11th
      Floor
      New York, NY 10006.

     

    Section
      4.   Additional
      Covenants of
      the Company.
      

     

    The
      Company further covenants and agrees with each Placement Agent and the
      Purchasers as follows:

     

    (a)  Delivery
      of Registration Statement, Time of Sale Prospectus and Prospectus.
The
      Company shall furnish to you, without charge, three signed copies of the
      Registration Statement, any amendments thereto and any Rule 462(b) Registration
      Statement (including exhibits thereto) and shall furnish to you in New York
      City, without charge, prior to 10:00 a.m. New York City time on the business
      day
      next succeeding the date of this Agreement and during the period mentioned
      in
      Section 4(e) or 4(f) below, as many copies of the Time of Sale Prospectus,
      the Prospectus and any supplements and amendments thereto or to the Registration
      Statement as you may reasonably request.

     

    (b)  Placement
      Agents’ Review of Proposed Amendments and Supplements. Prior
      to
      amending or supplementing the Registration Statement (including any registration
      statement filed under Rule 462(b) under the Securities Act), any
      preliminary prospectus, the Time of Sale Prospectus or the Prospectus including
      any amendment or supplement through incorporation of any report filed under
      the
      Exchange Act), the Company shall furnish to the Placement Agents for review,
      a
      reasonable amount of time prior to the proposed time of filing or use thereof,
      a
      copy of each such proposed amendment or supplement, and the Company shall not
      file or use any such proposed amendment or supplement without the
      Representative’s consent, and to file with the Commission within the applicable
      period specified in Rule 424(b) under the Securities Act any prospectus required
      to be filed pursuant to such Rule.

     

    
      
        
        

      

      
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    (c)  Free
      Writing Prospectuses. The
      Company shall not use any free writing prospectuses. 

     

    (d)  Amendments
      and Supplements to Time of Sale Prospectus.
      If
      the
      Time of Sale Prospectus is being used to solicit offers to buy the Units at
      a
      time when the Prospectus is not yet available to prospective purchasers and
      any
      event shall occur or condition exist as a result of which it is necessary to
      amend or supplement the Time of Sale Prospectus so that the Time of Sale
      Prospectus does not include an untrue statement of a material fact or omit
      to
      state a material fact necessary in order to make the statements therein, in
      the
      light of the circumstances when delivered to a prospective purchaser, not
      misleading, or if any event shall occur or condition exist as a result of which
      the Time of Sale Prospectus conflicts with the information contained in the
      Registration Statement, or if, in the opinion of counsel for the Placement
      Agents, it is necessary to amend or supplement the Time of Sale Prospectus
      to
      comply with applicable law, including the Securities Act, the Company shall
      (subject to Sections
      4(b)
      and
(c))
      forthwith prepare, file with the Commission and furnish, at its own expense,
      to
      the Placement Agents and to any dealer upon request, either amendments or
      supplements to the Time of Sale Prospectus so that the statements in the Time
      of
      Sale Prospectus as so amended or supplemented will not include an untrue
      statement of a material fact or omit to state a material fact necessary in
      order
      to make the statements therein, in the light of the circumstances when delivered
      to a prospective purchaser, not misleading or so that the Time of Sale
      Prospectus, as amended or supplemented, will no longer conflict with the
      Registration Statement, or so that the Time of Sale Prospectus, as amended
      or
      supplemented, will comply with applicable law including the Securities
      Act.

     

    (e)  Securities
      Act Compliance.
      After
      the date of this Agreement until the Closing Date, the Company shall promptly
      advise the Placement Agents in writing (i) of the receipt of any comments of,
      or
      requests for additional or supplemental information from, the Commission, (ii)
      of the time and date of any filing of any post-effective amendment to the
      Registration Statement, any Rule 462(b) Registration Statement or any amendment
      or supplement to any Preliminary Prospectus, the Time of Sale Prospectus or
      the
      Prospectus, (iii) of the time and date that any post-effective amendment to
      the
      Registration Statement or any Rule 462(b) Registration Statement becomes
      effective and (iv) of the issuance by the Commission of any stop order
      suspending the effectiveness of the Registration Statement or any post-effective
      amendment thereto, any Rule 462(b) Registration Statement or any amendment
      or
      supplement to any Preliminary Prospectus, the Time of Sale Prospectus or the
      Prospectus or of any order preventing or suspending the use of any preliminary
      prospectus, the Time of Sale Prospectus or the Prospectus, or of any proceedings
      to remove, suspend or terminate from listing or quotation the Shares from any
      securities exchange upon which they are listed for trading or included or
      designated for quotation, or of the threatening or initiation of any proceedings
      for any of such purposes. If the Commission shall enter any such stop order
      at
      any time, the Company will use its best efforts to obtain the lifting of such
      order at the earliest possible moment. Additionally, the Company agrees that
      it
      shall comply with the provisions of Rule 424(b), and Rule 430A, as applicable,
      under the Securities Act and will use its reasonable efforts to confirm that
      any
      filings made by the Company under Rule 424(b) were received in a timely manner
      by the Commission.

     

    
      
        
        

      

      
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    (f)  Amendments
      and Supplements to the Prospectus and Other Securities Act
      Matters.
      If any
      event shall occur or condition exist as a result of which it is necessary to
      amend or supplement the Prospectus so that the Prospectus does not include
      an
      untrue statement of a material fact or omit to state a material fact necessary
      in order to make the statements therein, in the light of the circumstances
      when
      the Prospectus is delivered to a purchaser, not misleading, or if in the opinion
      of the Placement Agents or counsel for the Placement Agents it is otherwise
      necessary to amend or supplement the Prospectus to comply with applicable law,
      including the Securities Act, the Company agrees (subject to Section 4(b)
      and
4(c))
      to
      promptly prepare, file with the Commission and furnish at its own expense to
      the
      Placement Agents and to dealers, amendments or supplements to the Prospectus
      so
      that the statements in the Prospectus as so amended or supplemented will not
      include an untrue statement of a material fact or omit to state a material
      fact
      necessary in order to make the statements therein, in the light of the
      circumstances when the Prospectus is delivered to a purchaser, be misleading
      or
      so that the Prospectus, as amended or supplemented, will comply with applicable
      law including the Securities Act. Neither a Placement Agent’s consent to, or
      delivery of, any such amendment or supplement shall constitute a waiver of
      any
      of the Company’s obligations under Sections 4(b)
      or
(c).

     

    (g)  Blue
      Sky Compliance.
      The
      Company shall cooperate with the Placement Agents and counsel for the Placement
      Agents to qualify or register the Securities for sale under (or obtain
      exemptions from the application of) the state securities or blue sky laws
of
      those
      jurisdictions designated by the Placement Agents, shall comply with such laws
      and shall continue such qualifications, registrations and exemptions in effect
      so long as required for the distribution of the Securities. The Company shall
      not be required to qualify as a foreign corporation or to take any action that
      would subject it to general service of process in any such jurisdiction where
      it
      is not presently qualified or where it would be subject to taxation as a foreign
      corporation. The Company will advise the Placement Agents promptly of the
      suspension of the qualification or registration of (or any such exemption
      relating to) the Securities for offering, sale or trading in any jurisdiction
      or
      any initiation or threat of any proceeding for any such purpose, and in the
      event of the issuance of any order suspending such qualification, registration
      or exemption, the Company shall use its best efforts to obtain the withdrawal
      thereof at the earliest possible moment.

     

    
      
        
        

      

      
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    (h)  Use
      of Proceeds.
      The
      Company shall apply the net proceeds from the sale of the Units sold by it
      in
      the manner described under the caption “Use of Proceeds” in the
      Prospectus.

     

    (i)  Transfer
      Agent.
      The
      Company shall engage and maintain, at its expense, a registrar and transfer
      agent for the Shares.

     

    (j)  Earnings
      Statement.
      As soon
      as practicable, but in any event no later than twelve months after the date
      of
      this Agreement, the Company will make generally available to its security
      holders and to the Placement Agents an earnings statement (which need not be
      audited) covering a period of at least twelve months beginning with the first
      fiscal quarter of the Company occurring after the date of this Agreement which
      shall satisfy the provisions of Section 11(a) of the Securities Act and the
      rules and regulations of the Commission thereunder.

     

    (k)  Periodic
      Reporting Obligations.
      The
      Company shall file, on a timely basis, with the Commission all reports and
      documents required to be filed under the Exchange Act. 

     

    (l)  Company
      to Provide Copy of the Prospectus in Form That May be Downloaded from the
      Internet.
      The
      Company shall cause to be prepared and delivered, at its expense, within one
      business day from the effective date of this Agreement, to Jefferies
      an
“electronic
      Prospectus”
to
      be
      used by the Placement Agents in connection with the offering and sale of the
      Shares. As used herein, the term “electronic
      Prospectus”
means
      a
      form of Time of Sale Prospectus, and any amendment or supplement thereto, that
      meets each of the following conditions: (i) it shall be encoded in an electronic
      format, satisfactory to Jefferies, that may be transmitted electronically by
      Jefferies and the other Placement Agents to offerees and purchasers of the
      Shares; (ii) it shall disclose the same information as the paper Time of
      Sale Prospectus, except to the extent that graphic and image material cannot
      be
      disseminated electronically, in which case such graphic and image material
      shall
      be replaced in the electronic Prospectus with a fair and accurate narrative
      description or tabular representation of such material, as appropriate; and
      (iii) it shall be in or convertible into a paper format or an electronic
      format, satisfactory to Jefferies, that will allow investors to store and have
      continuously ready access to the Time of Sale Prospectus at any future time,
      without charge to investors (other than any fee charged for subscription to
      the
      Internet as a whole and for on-line time). The Company hereby confirms that
      it
      has included or will include in the Prospectus filed pursuant to EDGAR or
      otherwise with the Commission and in the Registration Statement at the time
      it
      was declared effective an undertaking that, upon receipt of a request by an
      investor or his or her Placement Agent, the Company shall transmit or cause
      to
      be transmitted promptly, without charge, a paper copy of the Time of Sale
      Prospectus.

     

    
      
        
        

      

      
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    (m)  Agreement
      Not to Offer or Sell Additional Shares.
      During
      the period commencing on and including the date hereof and ending on and
      including the 90th
      day
      following the date of the Prospectus (as the same may be extended as described
      below, the “Lock-up
      Period”),
      the
      Company will not, without the prior written consent of the Representative (which
      consent may be withheld at the sole discretion of the Representative), directly
      or indirectly, sell (including, without limitation, any short sale), offer,
      contract or grant any option to sell, pledge, transfer or establish an open
“put
      equivalent position” within the meaning of Rule 16a-1(h) under the Exchange Act,
      or otherwise dispose of or transfer, or announce the offering of, or file any
      registration statement under the Securities Act in respect of, any Shares,
      options, rights or warrants to acquire Shares or securities exchangeable or
      exercisable for or convertible into Shares (other than as contemplated by this
      Agreement with respect to the Shares) or publicly announce the intention to
      do
      any of the foregoing; provided, however, that the Company may (i) issue Shares
      or options to purchase Shares, or issue Shares upon exercise of options,
      pursuant to any stock option, stock bonus or other stock plan or arrangement
      described in each Applicable Prospectus, (ii) issue securities upon exercise
      or
      conversion of any of the Company’s outstanding securities, (iii) issue Shares or
      securities exercisable for Shares to lenders of the Company, (iv) file a
      registration statement on Form S-8 relating to employee benefit plans and (v)
      file post-effective
      amendments to registration statement (File No.
      333-138729)
      for the
      purpose of complying with that certain registration rights agreement entered
      into in connection therewith.
      Notwithstanding the foregoing, if (i) during the last 17 days of the Lock-up
      Period, the Company issues an earnings release or material news or a material
      event relating to the Company occurs or (ii) prior to the expiration of the
      Lock-up Period, the Company announces that it will release earnings results
      during the 16-day period beginning on the last day of the Lock-up Period, then
      in each case the Lock-up Period will be extended until the expiration of the
      18-day period beginning on the date of the issuance of the earnings release
      or
      the occurrence of the material news or material event, as applicable,
      unless
      Jefferies waives, in writing, such extension (which waiver may be withheld
      at
      the sole discretion of Jefferies), except that such extension will not apply
      if,
      (i) within three business days prior to the 15th calendar day before the last
      day of the Lock-up Period, the Company delivers a certificate, signed by the
      Chief Financial Officer or Chief Executive Officer of the Company, certifying
      on
      behalf of the Company that (i) the Shares are “actively traded securities” (as
      defined in Regulation M), (ii) the Company meets the applicable requirements
      of
      paragraph (a)(1) of Rule 139 under the Securities Act in the manner
      contemplated by NASD Conduct Rule 2711(f)(4), and (iii) the provisions of
      NASD Conduct Rule 2711(f)(4) are not applicable to any research reports
      relating to the Company published or distributed by any of the Placement Agents
      during the 15 days before or after the last day of the Lock-up Period (before
      giving effect to such extension).
      The
      Company will provide the Placement Agents with prior notice of any such
      announcement that gives rise to an extension of the Lock-up Period.

     

    
      
        
        

      

      
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    (n)  Investment
      Limitation.
      The
      Company shall not invest, or otherwise use the proceeds received by the Company
      from its sale of the Shares in such a manner as would require the Company or
      any
      of its subsidiaries to register as an investment company under the Investment
      Company Act.

     

    (o)  No
      Stabilization or Manipulation;
      Compliance with Regulation M.
      The
      Company will not take, directly or indirectly, any action designed to or that
      might be reasonably expected to cause or result in stabilization or manipulation
      of the price of the Shares or any other reference security, whether to
      facilitate the sale or resale of the Shares or otherwise, and the Company will,
      and shall cause each of its affiliates to, comply with all applicable provisions
      of Regulation M. If the limitations of Rule 102 of Regulation M (“Rule
      102”)
      do not
      apply with respect to the Shares or any other reference security pursuant to
      any
      exception set forth in Section (d) of Rule 102, then promptly upon notice from
      the Placement Agents (or, if later, at the time stated in the notice), the
      Company will, and shall cause each of its affiliates to, comply with Rule 102
      as
      though such exception were not available but the other provisions of Rule 102
      (as interpreted by the Commission) did apply.

     

    (p)  NASD.
      To use
      its best efforts to assist the Placement Agents with any filings with the NASD
      and obtaining clearance from the NASD as to the amount of compensation allowable
      or payable to the Placement Agents.

     

    Section
      5.   Payment
      of Expenses.
      The
      Company agrees to pay all costs, fees and expenses incurred in connection with
      the performance of its obligations hereunder and in connection with the
      transactions contemplated hereby, including without limitation (i) all
      expenses incident to the issuance and delivery of the Securities (including
      all
      printing and engraving costs), (ii) all fees and expenses of the registrar
      and transfer agent of the Securities, (iii) all necessary issue, transfer
      and other stamp taxes in connection with the issuance and sale of the Securities
      to the Purchasers, (iv) all fees and expenses of the Company’s counsel,
      independent public or certified public accountants and other advisors,
      (v) all costs and expenses incurred in connection with the preparation,
      printing, filing, shipping and distribution of the Registration Statement
      (including financial statements, exhibits, schedules, consents and certificates
      of experts), the Time of Sale Prospectus, the Prospectus, and each preliminary
      prospectus, and all amendments and supplements thereto, and this Agreement,
      (vi) all filing fees, attorneys’ fees and expenses incurred by the Company
      or the Placement Agents in connection with qualifying or registering (or
      obtaining exemptions from the qualification or registration of) all or any
      part
      of the Securities for offer and sale under the state securities or blue sky
      laws
      and, if requested by the Placement Agents, preparing and printing a
“Blue
      Sky Survey”
or
      memorandum and any supplements thereto, advising the Placement Agents of such
      qualifications, registrations, determinations and exemptions, (vii) the
      filing fees incident to, and the reasonable fees and expenses of counsel for
      the
      Placement Agents in connection with, the NASD’s review, if any, and approval of
      the Placement Agents’ participation in the offering and distribution of the
      Units,
      (viii) the costs and expenses of the Company relating to investor
      presentations on any “road show” undertaken in connection with the marketing of
      the offering of the Units, including, without limitation, expenses associated
      with the preparation or dissemination of any electronic road show, expenses
      associated with the production of road show slides and graphics, fees and
      expenses of any consultants engaged in connection with the road show
      presentations with the prior approval of the Company, and travel and lodging
      expenses of the Placement Agents, employees and officers of the Company and
      of
      the Placement Agents and any such consultants and any such consultants,
      (ix) all other fees, costs and expenses of the nature referred to in Item
      14 of Part II of the Registration Statement
      and (x)
      the fees, disbursements and expenses of counsel for the Placement Agents;
provided
      that the
      Company’s obligation to reimburse the Placement Agents for their expenses under
      clause (x) shall not exceed $85,000.
      Except
      as provided in this Section 5,
      Section 7,
      Section
      8,
      Section 9
      and
Section 10
      hereof,
      the Placement Agents shall pay their own expenses. 

     

    
      
        
        

      

      
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    Section
      6.   Conditions
      of the Obligations of the Placement Agents
      and the Purchasers and the Sale of the Units.
      The
      respective obligations of (i) the several Placement Agents hereunder, and of
      (ii) the Purchasers under the Subscription Agreements to purchase and pay for
      the Units as provided therein on the Closing Date, shall be subject to the
      accuracy of the representations and warranties on the part of the Company set
      forth in Section 2 hereof as of the date hereof and as of the Closing Date
      as though then made, to the timely performance by the Company of its covenants
      and other obligations hereunder, and to each of the following additional
      conditions:

     

    (a)  Accountants’
      Comfort Letter.
      On the
      date hereof, the Placement Agents shall have received from Eisner LLP,
      independent public or certified public accountants for the Company, (i) a
      letter dated the date hereof addressed to the Placement Agents, in form and
      substance satisfactory to the Placement Agents, containing statements and
      information of the type ordinarily included in accountant’s “comfort letters” to
      Placement Agent, delivered according to Statement of Auditing Standards No.
      72
      (or any successor bulletin), with respect to the audited and unaudited financial
      statements and certain financial information contained in the Registration
      Statement, the Preliminary Prospectus, Time of Sale Prospectus and the
      Prospectus, and (ii) confirming that they are (A) independent public or
      certified public accountants as required by the Securities Act and the Exchange
      Act and (B) in compliance with the applicable requirements relating to the
      qualification of accountants under Rule 2-01 of Regulation S-X. 

     

    (b)  Compliance
      with Registration Requirements; No Stop Order; No Objection from
      NASD.
      For
      the
      period from and after effectiveness of this Agreement and prior to the Closing
      Date:

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (i)  the
      Company shall have filed the Prospectus with the Commission (including the
      information previously omitted from the Registration Statement pursuant to
      Rule
      430B under the Securities Act) in the manner and within the time period required
      by Rule 424(b) under the Securities Act;

     

    (ii)  no
      stop
      order suspending the effectiveness of the Registration Statement, any
      Rule 462(b) Registration Statement, or any post-effective amendment to the
      Registration Statement, shall be in effect and no proceedings for such purpose
      shall have been instituted or threatened by the Commission; and

     

    (iii)  the
      NASD
      shall have raised no objection to the fairness and reasonableness of the
      placement terms and arrangements.

     

    (c)  No
      Material Adverse Change.
      For the
      period from and after the date of this Agreement and through and including
      the
      Closing Date,
      in the
      judgment of the Representative there shall not have occurred any Material
      Adverse Change. 

     

    (d)  Opinion
      of Counsel for the Company.
      On the
      Closing Date the Placement Agents shall have received the opinion of Becker
      & Poliakiff, LLP, counsel for the Company, dated as of such Closing Date,
      the form of which is attached as Exhibit C
      and to
      such further effect as counsel for the Placement Agents shall reasonably
      request.

     

    (e)  Opinion
      of Counsel for the Placement Agents.
      On each
      of the Closing Date and each Option Closing Date the Placement Agent shall
      have
      received the opinion of Proskauer Rose, LLP, counsel for the Placement Agents,
      in form and substance satisfactory to the Placement Agents, dated as of such
      Closing Date.

     

    (f)  Officers’
      Certificate.
      On the
      Closing Date the Placement Agents shall have received a written certificate
      executed by the Chief Executive Officer or President of the Company and the
      Chief Financial Officer of the Company, dated as of such Closing Date, to the
      effect set forth in subsections (b)(ii) and (c) of this Section
      6,
      and
      further to the effect that:

     

    (i)  for
      the
      period from and including the date of this Agreement through and including
      such
      Closing Date, there has not occurred any Material Adverse Change;

     

    (ii)  the
      representations, warranties and covenants of the Company set forth in
Section 2
      of this
      Agreement are true and correct with the same force and effect as though
      expressly made on and as of such Closing Date;
      and

     

    (iii)  the
      Company has complied with all the agreements hereunder and satisfied all the
      conditions on its part to be performed or satisfied hereunder at or prior to
      such Closing Date.

     

    (g)  Bring-down
      Comfort Letter.
      On the
      Closing Date the Placement Agent shall have received from Eisner LLP,
      independent public or certified public accountants for the Company, a letter
      dated such date, in form and substance satisfactory to the Placement Agents,
      to
      the effect that they reaffirm the statements made in the letter furnished by
      them pursuant to subsection (a) of this Section 6,
      except
      that the specified date referred to therein for the carrying out of procedures
      shall be no more than three business days prior to the Closing
      Date.

     

    
      
        
        

      

      
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    (h)  Lock-Up
      Agreement from Certain Securityholders of the Company.
      On or
      prior to the date hereof, the Company shall have furnished to the Representative
      an agreement in the form of Exhibit E
      hereto
      from the persons listed on Exhibit
      D
      hereto,
      and
      such agreement shall be in full force and effect on the Closing
      Date.

     

    (i)  The
      Company shall have entered into Subscription Agreements with each of the
      Purchasers and such agreements shall be in full force and effect.

     

    (j)  The
      Company shall have entered into the Escrow Agreement and such agreement shall
      be
      in full force and effect.

     

    (k)  The
      Company shall have prepared and filed with the Commission a Current Report
      on
      Form 8-K including as an exhibit thereto this Agreement.

     

    (l)  Additional
      Documents.
      On or
      before the Closing Date, the Placement Agents and counsel for the Placement
      Agents shall have received such information, documents and opinions as they
      may
      reasonably request for the purposes of enabling them to pass upon the issuance
      and sale of the Units as contemplated herein, or in order to evidence the
      accuracy of any of the representations and warranties, or the satisfaction
      of
      any of the conditions or agreements, herein contained; and all proceedings
      taken
      by the Company in connection with the issuance and sale of the Units as
      contemplated herein and in connection with the other transactions contemplated
      by this Agreement shall be satisfactory in form and substance to the Placement
      Agents and counsel for the Placement Agents.

     

    If
      any
      condition specified in this Section
      6
      is not
      satisfied when and as required to be satisfied, this Agreement may be terminated
      by the Representative by notice to the Company at any time on or prior to the
      Closing Date which termination shall be without liability on the part of any
      party to any other party, except that Section 5,
      Section 7,
      Section
      8, Section
      9
      and
Section
       10
      shall at
      all times be effective and shall survive such termination.

     

    Section
      7.   Reimbursement
      of Placement Agents’ Expenses.
      If this
      Agreement is terminated by the Representative pursuant to Section 6,
      or
Section 10
      or if
      the sale to the Purchasers of the Shares on the Closing Date is not consummated
      because of any refusal, inability or failure on the part of the Company to
      perform any agreement herein or to comply with any provision hereof, the Company
      agrees to reimburse the Placement Agents, severally, upon demand for all
      out-of-pocket expenses that shall have been reasonably incurred by the Placement
      Agents in connection with the proposed purchase and the offering and sale of
      the
      Units, including but not limited to fees and disbursements of counsel, printing
      expenses, travel expenses, postage, facsimile and telephone
      charges.

     

    
      
        
        

      

      
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    Section
      8.   Indemnification.

     

    (a)  Indemnification
      of the Placement Agents.
      The
      Company agrees to indemnify and hold harmless each Placement Agent, its officers
      and employees, and each person, if any, who controls any Placement Agent within
      the meaning of the Securities Act or the Exchange Act against any loss, claim,
      damage, liability or expense, as incurred, to which such Placement Agent or
      such
      officer, employee or controlling person may become subject, under the Securities
      Act, the Exchange Act, other federal or state statutory law or regulation,
      or
      the
      laws or regulations of foreign jurisdictions where Units have been
      offered
      or
      sold or
      at
      common law or otherwise (including in settlement of any litigation), insofar
      as
      such loss, claim, damage, liability or expense (or actions in respect thereof
      as
      contemplated below) arises out of or is based upon
      (i) any
      untrue statement or alleged untrue statement of a material fact contained in
      the
      Registration Statement, or any amendment thereto, including any information
      deemed to be a part thereof pursuant to Rule 430A under the Securities Act,
      or the omission or alleged omission therefrom of a material fact required to
      be
      stated therein or necessary to make the statements therein not misleading;
      or
      (ii) any untrue statement or alleged untrue statement of a material fact
      contained in any preliminary prospectus, the
      Time
      of Sale Prospectus or
      the
      Prospectus (or any amendment or supplement thereto),
      or the
      omission or alleged omission therefrom of a material fact necessary in order
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading; or (iii) any act or failure to act or any alleged
      act
      or failure to act by any Placement Agent in connection with, or relating in
      any
      manner to, the Units or the offering contemplated hereby, and which is included
      as part of or referred to in any loss, claim, damage, liability or action
      arising out of or based upon any matter covered by clause (i) or (ii) above,
      provided
      that the
      Company shall not be liable under this clause (iii) to the extent that a court
      of competent jurisdiction shall have determined by a final judgment that such
      loss, claim, damage, liability or action resulted directly from any such acts
      or
      failures to act undertaken or omitted to be taken by such Placement Agent
      through its bad faith or willful misconduct, and
      to
      reimburse each Placement Agent and
      each
      such officer, employee and
      controlling person for any and all expenses (including the fees and
      disbursements of counsel chosen by the Representative) as such expenses are
      reasonably incurred by such Placement Agent or such officer, employee or
      controlling person in connection with investigating, defending, settling,
      compromising or paying any such loss, claim, damage, liability, expense or
      action; provided,
      however,
      that
      the foregoing indemnity agreement shall not apply to any loss, claim, damage,
      liability or expense to the extent, but only to the extent, arising out of
      or
      based upon any untrue statement or alleged untrue statement or omission or
      alleged omission made in reliance upon and in conformity with written
      information furnished to the Company by the Placement Agents expressly for
      use
      in the Registration Statement, any preliminary prospectus, the Time of Sale
      Prospectus or the Prospectus (or any amendment or supplement thereto), it being
      understood and agreed that the only such information furnished by the Placement
      Agents to the Company consists of the information described in subsection (b)
      below.
      The
      indemnity agreement set forth in this Section 8(a)
      shall be
      in addition to any liabilities that the Company may otherwise have.

     

    
      
        
        

      

      
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    (b)  Indemnification
      of the Company, its Directors and Officers.
      Each
      Placement Agent agrees, severally and not jointly, to indemnify and hold
      harmless the Company, each of its directors, each of its officers who signed
      the
      Registration Statement and each person, if any, who controls the Company within
      the meaning of the Securities Act or the Exchange Act, against any loss, claim,
      damage, liability or expense, as incurred, to which the Company, or any such
      director, officer or controlling person may become subject, under the Securities
      Act, the Exchange Act, or other federal or state statutory law or regulation,
      or
      at common law or otherwise (including in settlement of any litigation, if such
      settlement is effected with the written consent of such Placement Agent ),
      insofar as such loss, claim, damage, liability or expense (or actions in respect
      thereof as contemplated below) arises out of or is based upon any untrue
      statement or alleged untrue statement of a material fact contained in the
      Registration Statement, any preliminary prospectus the
      Time
      of Sale Prospectus
      or the
      Prospectus (or such amendment or supplement thereto), or arises out of or is
      based upon the omission or alleged omission to state therein a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading, in each case to the extent, but only to the extent, that such untrue
      statement or alleged untrue statement or omission or alleged omission was made
      in the Registration Statement, such preliminary prospectus, the
      Time
      of Sale Prospectus, the
      Prospectus (or such amendment or supplement thereto), in reliance upon and
      in
      conformity with written information furnished to the Company by such Placement
      Agent expressly for use therein; and to reimburse the Company, or any such
      director, officer or controlling person for any legal and other expense
      reasonably incurred by the Company, or any such director, officer or controlling
      person in connection with investigating, defending, settling, compromising
      or
      paying any such loss, claim, damage, liability, expense or action; provided
      that no
      Placement Agent shall be required to pay any amount under this Section
      8(b)
      in
      excess of the total compensation received by such Placement Agent hereunder
      in
      connection with the sale of the Units. The Company hereby acknowledges that
      the
      only information that the Placement Agents have furnished to the Company
      expressly for use in the Registration Statement, any preliminary prospectus
      or
      the Prospectus (or any amendment or supplement thereto) are the statements
      set
      forth in (i)
      the
      last paragraph on the front cover page of the Prospectus Supplement concerning
      the terms of the offering by the Placement Agents; and (ii) the statements
      concerning the Placement Agents contained in the first paragraph under the
      heading “Plan of Distribution.”
      The
      indemnity agreement set forth in this Section 8(b)
      shall be
      in addition to any liabilities that each Placement Agent may otherwise
      have.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (c)  Notifications
      and Other Indemnification Procedures.
      Promptly after receipt by an indemnified party under this Section 8
      of
      notice of the commencement of any action, such indemnified party will, if a
      claim in respect thereof is to be made against an indemnifying party under
      this
Section 8,
      notify
      the indemnifying party in writing of the commencement thereof, but the omission
      so to notify the indemnifying party will not relieve it from any liability
      which
      it may have to any indemnified party for contribution or otherwise than under
      the indemnity agreement contained in this Section 8
      or to
      the extent it is not prejudiced as a proximate result of such failure. In case
      any such action is brought against any indemnified party and such indemnified
      party seeks or intends to seek indemnity from an indemnifying party, the
      indemnifying party will be entitled to participate in, and, to the extent that
      it shall elect, jointly with all other indemnifying parties similarly notified,
      by written notice delivered to the indemnified party promptly after receiving
      the aforesaid notice from such indemnified party, to assume the defense thereof
      with counsel reasonably satisfactory to such indemnified party; provided,
      however,
      if the
      defendants in any such action include both the indemnified party and the
      indemnifying party and the indemnified party shall have reasonably concluded
      that a conflict may arise between the positions of the indemnifying party and
      the indemnified party in conducting the defense of any such action or that
      there
      may be legal defenses available to it and/or other indemnified parties which
      are
      different from or additional to those available to the indemnifying party,
      the
      indemnified party or parties shall have the right to select separate counsel
      to
      assume such legal defenses and to otherwise participate in the defense of such
      action on behalf of such indemnified party or parties. Upon receipt of notice
      from the indemnifying party to such indemnified party of such indemnifying
      party’s election so to assume the defense of such action and approval by the
      indemnified party of counsel, the indemnifying party will not be liable to
      such
      indemnified party under this Section 8
      for any
      legal or other expenses subsequently incurred by such indemnified party in
      connection with the defense thereof unless (i) the indemnified party shall
      have employed separate counsel in accordance with the proviso to the preceding
      sentence (it being understood, however, that the indemnifying party shall not
      be
      liable for the fees and expenses of more than one separate counsel (together
      with local counsel), representing the indemnified parties who are parties to
      such action),
      which
      counsel (together with any local counsel) for the indemnified parties shall
      be
      selected by the Representative (in the case of counsel for the indemnified
      parties referred to in Section 8(a)
      above)
      or by the Company (in the case of counsel for the indemnified parties referred
      to in Section 8(b)
      above))
      (ii) the indemnifying party shall not have employed counsel satisfactory to
      the indemnified party to represent the indemnified party within a reasonable
      time after notice of commencement of the action or (iii)
      the
      indemnifying party has authorized in writing the employment of counsel for
      the
      indemnified party at the expense of the indemnifying party,
      in each
      of which cases the fees and expenses of counsel shall be at the expense of
      the
      indemnifying party and shall be paid as they are incurred.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    (d)  Settlements.
      The
      indemnifying party under this Section 8
      shall
      not be liable for any settlement of any proceeding effected without its written
      consent, but if settled with such consent or if there be a final judgment for
      the plaintiff, the indemnifying party agrees to indemnify the indemnified party
      against any loss, claim, damage, liability or expense by reason of such
      settlement or judgment. Notwithstanding the foregoing sentence, if at any time
      an indemnified party shall have requested an indemnifying party to reimburse
      the
      indemnified party for fees and expenses of counsel as contemplated by
Section 8(c)
      hereof,
      the indemnifying party agrees that it shall be liable for any settlement of
      any
      proceeding effected without its written consent if (i) such settlement is
      entered into more than 30 days after receipt by such indemnifying party of
      the aforesaid request and (ii) such indemnifying party shall not have
      reimbursed the indemnified party in accordance with such request prior to the
      date of such settlement. No indemnifying party shall, without the prior written
      consent of the indemnified party, effect any settlement, compromise or consent
      to the entry of judgment in any pending or threatened action, suit or proceeding
      in respect of which any indemnified party is or could have been a party and
      indemnity was or could have been sought hereunder by such indemnified party,
      unless such settlement, compromise or consent includes an unconditional release
      of such indemnified party from all liability on claims that are the subject
      matter of such action, suit or proceeding. 

     

    Section
      9.   Contribution.
      If
      the
      indemnification provided for in Section 8
      is for
      any reason held to be unavailable to or otherwise insufficient to hold harmless
      an indemnified party in respect of any losses, claims, damages, liabilities
      or
      expenses referred to therein, then each indemnifying party shall contribute
      to
      the aggregate amount paid or payable by such indemnified party, as incurred,
      as
      a result of any losses, claims, damages, liabilities or expenses referred to
      therein (i) in such proportion as is appropriate to reflect the relative
      benefits received by the Company, on the one hand, and the Placement Agents,
      on
      the other hand, from the offering of the Units pursuant to this Agreement or
      (ii) if the allocation provided by clause (i) above is not permitted
      by applicable law, in such proportion as is appropriate to reflect not only
      the
      relative benefits referred to in clause (i) above but also the relative
      fault of the Company, on the one hand, and the Placement Agents, on the other
      hand, in connection with the statements or omissions which resulted in such
      losses, claims, damages, liabilities or expenses, as well as any other relevant
      equitable considerations. The relative benefits received by the Company, on
      the
      one hand, and the Placement Agents, on the other hand, in connection with the
      offering of the Units pursuant to this Agreement shall be deemed to be in the
      same respective proportions as the total net proceeds from the offering of
      the
      Units pursuant to this Agreement (before deducting expenses) received by the
      Company, and the total fees received by the Placement Agents, in each case
      as
      set forth on the front cover page of the Prospectus bear to the aggregate
      initial public offering price of the Units as set forth on such cover. The
      relative fault of the Company on the one hand, and the Placement Agents, on
      the
      other hand, shall be determined by reference to, among other things, whether
      any
      such untrue or alleged untrue statement of a material fact or omission or
      alleged omission to state a material fact relates to information supplied by
      the
      Company, on the one hand, or the Placement Agents, on the other hand, and the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such statement or omission.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    The
      amount paid or payable by a party as a result of the losses, claims, damages,
      liabilities and expenses referred to above shall be deemed to include, subject
      to the limitations set forth in Section 8(c),
      any
      legal or other fees or expenses reasonably incurred by such party in connection
      with investigating or defending any action or claim. The provisions set forth
      in
Section 8(c)
      with
      respect to notice of commencement of any action shall apply if a claim for
      contribution is to be made under this Section 9;
      provided,
      however,
      that no
      additional notice shall be required with respect to any action for which notice
      has been given under Section 8(c)
      for
      purposes of indemnification.

     

    The
      Company and the Placement Agents agree that it would not be just and equitable
      if contribution pursuant to this Section 9
      were
      determined by pro rata allocation (even if the Placement Agents were treated
      as
      one entity for such purpose) or by any other method of allocation which does
      not
      take account of the equitable considerations referred to in this Section 9.

     

    Notwithstanding
      the provisions of this Section 9, no Placement Agent shall be required to
      contribute any amount in excess of the fees received by such Placement Agent
      hereunder in connection with the sale of the Units. 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. The Placement Agents’ obligations
      to contribute pursuant to this Section 9
      are
      several, and not joint, in proportion to their respective fees. For purposes
      of
      this Section 9,
      each
      officer and employee of a Placement Agent and each person, if any, who controls
      a Placement Agent within the meaning of the Securities Act or the Exchange
      Act
      shall have the same rights to contribution as such Placement Agent, and each
      director of the Company, each officer of the Company who signed the Registration
      Statement, and each person, if any, who controls the Company with the meaning
      of
      the Securities Act and the Exchange Act shall have the same rights to
      contribution as the Company.

     

    Section
      10.   Termination
      of this Agreement.
      Prior to
      the purchase of the Units by the Purchasers on the Closing Date this Agreement
      may be terminated by the Representative by notice given to the Company if at
      any
      time (i) trading or quotation in any of the Company’s securities shall have
      been suspended or limited by the Commission or trading in securities generally
      on either the Nasdaq Stock Market or the New York Stock Exchange shall have
      been
      suspended or limited, or minimum or maximum prices shall have been generally
      established on any of such stock exchanges by the Commission or the NASD;
      (ii) a general banking moratorium shall have been declared by any of
      federal, New York, Delaware or California authorities; (iii) there shall
      have occurred any outbreak or escalation of national or international
      hostilities or any crisis or calamity, or any change in the United States or
      international financial markets, or any substantial change or development
      involving a prospective substantial change in United States’ or international
      political, financial or economic conditions, as in the judgment of the Placement
      Agent is material and adverse and makes it impracticable to market the Units
      in
      the manner and on the terms described in the Time of Sale Prospectus or the
      Prospectus or to enforce contracts for the sale of securities; (iv) in the
      judgment of the Representative there shall have occurred any Material Adverse
      Change; (v) the Company shall have sustained a loss by strike, fire, flood,
      earthquake, accident or other calamity of such character as in the judgment
      of
      the Representative may interfere materially with the conduct of the business
      and
      operations of the Company regardless of whether or not such loss shall have
      been
      insured or (vi) or for any other reason permitted under this Agreement or the
      Subscription Agreements. Any termination pursuant to this Section 10
      shall be
      without liability on the part of (a) the Company to any Placement Agent,
      except that the Company shall be obligated to reimburse the expenses of the
      Placement Agents pursuant to Sections 5
      and 7
      hereof,
      (b)  any Placement Agent to the Company or (c) of any party hereto to
      any other party except that the provisions of Section 8
      and
      Section 9
      shall at
      all times be effective and shall survive such termination. The Company hereby
      acknowledges that in the event that this Agreement is terminated by the
      Placement Agents pursuant to the terms hereof, the Subscription Agreements
      shall
      automatically terminate without any further action on the part of the parties
      thereto. 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Section
      11.   No
      Advisory or Fiduciary Relationship. The
      Company acknowledges and agrees that (a) the purchase and sale of the Units
      pursuant to this Agreement, including the determination of the public offering
      price of the Units is an arm’s-length commercial transaction between the
      Company, on the one hand, and the several Purchasers, on the other hand, (b)
      in
      connection with the offering contemplated hereby and the process leading to
      such
      transaction each Placement Agent is and has been acting solely as a principal
      and is not the agent or fiduciary of the Company, or its stockholders,
      creditors, employees or any other party, (c) no Placement Agent has assumed
      or
      will assume an advisory or fiduciary responsibility in favor of the Company
      with
      respect to the offering contemplated hereby or the process leading thereto
      (irrespective of whether such Placement Agent has advised or is currently
      advising the Company on other matters) and no Placement Agent has any obligation
      to the Company with respect to the offering contemplated hereby except the
      obligations expressly set forth in this Agreement, (d) the Placement Agents
      and
      their respective affiliates may be engaged in a broad range of transactions
      that
      involve interests that differ from those of the Company, and (e) the
      Placement Agents have not provided any legal, accounting, regulatory or tax
      advice with respect to the offering contemplated hereby and the Company has
      consulted its own legal, accounting, regulatory and tax advisors to the extent
      it deemed appropriate.

     

    Section
      12.   Representations
      and Indemnities to Survive Delivery.
      The
      respective indemnities, agreements, representations, warranties and other
      statements of the Company, of its officers and of the several Placement Agents
      set forth in or made pursuant to this Agreement will remain in full force and
      effect, regardless of any investigation made by or on behalf of any Placement
      Agent or the Company or any of its or their partners, officers or directors
      or
      any controlling person, as the case may be, and, anything herein to the contrary
      notwithstanding, will survive delivery of and payment for the Shares sold
      hereunder and any termination of this Agreement.

     

    Section
      13.   Notices.
      All
      communications hereunder shall be in writing and shall be mailed, hand delivered
      or telecopied and confirmed to the parties hereto as follows:

     

    If
      to the
      Placement Agent:

    Jefferies
      & Company, Inc.

    520
      Madison Avenue

    New
      York,
      New York 10022

    Facsimile:
      (212) 284-2280 

    Attention:
      General Counsel

    

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    with
      a
      copy to:

    Jefferies
      & Company, Inc.

    520
      Madison Avenue

    New
      York,
      New York 10022

    Facsimile:
      (212) 284-2280 

    Attention:
      General Counsel

    

    If
      to the
      Company 

    Lev
      Pharmaceuticals, Inc.

    675
      Third
      Avenue, Suite 2200

    New
      York,
      New York 10017

    Facsimile:
      (212) 682−2559

    Attention:
      Joshua D. Schein, Ph.D., CEO

    

    Any
      party
      hereto may change the address for receipt of communications by giving written
      notice to the others.

     

    Section
      14.   Successors.
      This
      Agreement will inure to the benefit of and be binding upon the parties hereto,
      and to the benefit of the employees, officers and directors and controlling
      persons referred to in Section 8
      and
Section 9,
      and in
      each case their respective successors, and no other person will have any right
      or obligation hereunder. 

     

    Section
      15.   Partial
      Unenforceability.
      The
      invalidity or unenforceability of any Section, paragraph or provision of this
      Agreement shall not affect the validity or enforceability of any other Section,
      paragraph or provision hereof. If any Section, paragraph or provision of this
      Agreement is for any reason determined to be invalid or unenforceable, there
      shall be deemed to be made such minor changes (and only such minor changes)
      as
      are necessary to make it valid and enforceable.

     

    Section
      16.   Governing
      Law Provisions.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York applicable to agreements made and to be performed
      in such state. Any legal suit, action or proceeding arising out of or based
      upon
      this Agreement or the transactions contemplated hereby (“Related
      Proceedings”)
      may be
      instituted in the federal courts of the United States of America located in
      the
      Borough of Manhattan in the City of New York or the courts of the State of
      New
      York in each case located in the Borough of Manhattan in the City of New York
      (collectively, the “Specified
      Courts”),
      and
      each party irrevocably submits to the exclusive jurisdiction (except for
      proceedings instituted in regard to the enforcement of a judgment of any such
      court (a “Related
      Judgment”),
      as to
      which such jurisdiction is non-exclusive) of such courts in any such suit,
      action or proceeding. Service of any process, summons, notice or document by
      mail to such party’s address set forth above shall be effective service of
      process for any suit, action or other proceeding brought in any such court.
      The
      parties irrevocably and unconditionally waive any objection to the laying of
      venue of any suit, action or other proceeding in the Specified Courts and
      irrevocably and unconditionally waive and agree not to plead or claim in any
      such court that any such suit, action or other proceeding brought in any such
      court has been brought in an inconvenient forum. Each party not located in
      the
      United States irrevocably appoints CT Corporation System, which currently
      maintains a New York City office at 111 Eighth Avenue, 13th Floor, New York,
      NY
      10011, United States of America, as its agent to receive service of process
      or
      other legal summons for purposes of any such suit, action or proceeding that
      may
      be instituted in any state or federal court in the Borough of Manhattan in
      the
      City of New York.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    With
      respect to any Related Proceeding, each party irrevocably waives, to the fullest
      extent permitted by applicable law, all immunity (whether on the basis of
      sovereignty or otherwise) from jurisdiction, service of process, attachment
      (both before and after judgment) and execution to which it might otherwise
      be
      entitled in the Specified Courts, and with respect to any Related Judgment,
      each
      party waives any such immunity in the Specified Courts or any other court of
      competent jurisdiction, and will not raise or claim or cause to be pleaded
      any
      such immunity at or in respect of any such Related Proceeding or Related
      Judgment, including, without limitation, any immunity pursuant to the United
      States Foreign Sovereign Immunities Act of 1976, as amended.

     

    Section
      17.   Authority
      of the Representative.
      In
      connection with this Agreement, Jefferies will act as the Representative for
      and
      on behalf of the Placement Agents, and any action taken under this Agreement
      by
      the Representative, will be binding on all the Placement Agents. Each of CIBC
      and Morgan Joseph authorizes Jefferies to manage the Offering and to take such
      action in connection therewith as Jefferies in its sole discretion deems
      appropriate or desirable, consistent with the provisions of the Agreement Among
      Underwriters previously entered into between Jefferies and each of CIBC and
      Morgan Joseph, taking into account that the Offering will be in the form of
      a
      best efforts placement and not a firm commitment underwriting.

     

    Section
      18.   General
      Provisions.
      This
      Agreement constitutes the entire agreement of the parties to this Agreement
      and
      supersedes all prior written or oral and all contemporaneous oral agreements,
      understandings and negotiations with respect to the subject matter hereof.
      This
      Agreement may be executed in two or more counterparts, each one of which shall
      be an original, with the same effect as if the signatures thereto and hereto
      were upon the same instrument. This Agreement may not be amended or modified
      unless in writing by all of the parties hereto, and no condition herein (express
      or implied) may be waived unless waived in writing by each party whom the
      condition is meant to benefit. The Section headings herein are for the
      convenience of the parties only and shall not affect the construction or
      interpretation of this Agreement.

     

    Each
      of
      the parties hereto acknowledges that it is a sophisticated business person
      who
      was adequately represented by counsel during negotiations regarding the
      provisions hereof, including, without limitation, the indemnification provisions
      of Section 8
      and the
      contribution provisions of Section 9,
      and is
      fully informed regarding said provisions. Each of the parties hereto further
      acknowledges that the provisions of Sections 8
      and 9
      hereto
      fairly allocate the risks in light of the ability of the parties to investigate
      the Company, its affairs and its business in order to assure that adequate
      disclosure has been made in the Registration Statement, any preliminary
      prospectus, the Time of Sale Prospectus and the Prospectus (and any amendments
      and supplements thereto), as required by the Securities Act and the Exchange
      Act. 

     

    Section
      19.   Certain
      Definitions and Usage of Terms.
      When
      used in this Agreement, the following terms have the following meanings: (i)
“to
      the Company’s knowledge” or “to the knowledge of the Company” or words of
      similar import shall mean to the knowledge of any officer or director of the
      Company after a reasonable investigation of such facts by such officer or
      director and (ii) “received by the Company” or words of similar import shall
      mean received by any of the officers or directors of the Company.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    If
      the
      foregoing is in accordance with your understanding of our agreement, kindly
      sign
      and return to the Company the enclosed copies hereof, whereupon this instrument,
      along with all counterparts hereof, shall become a binding agreement in
      accordance with its terms.

     

    
      	 	
              Very
                truly yours,

              LEV
                PHARMACEUTICALS, INC

              

              

              By:
                /s/ Joshua D. Schein

              Name:
                Joshua D. Schein

              Title:
                Chief Executive Officer

            

    

    

    

    The
      foregoing Placement Agent Agreement is hereby confirmed and accepted by the
      Placement Agents in New York, New York as of the date first above
      written.

     

    JEFFERIES
      & COMPANY, INC.

    

    

    By: /s/
      Charles E. Mather

    Name:
      Charles E. Mather

    Title: 
      Managing Director

    

    CIBC
      WORLD MARKETS CORP.

     

    
      By:
        /s/ Sameer Vasudev

      Name:
        Sameer Vasudev

      Title:  
        Executive Director

    

     

    MORGAN
      JOSEPH & CO. INC.

    
       

      By: /s/
        ML
        Malanoski

      Name:
        ML
        Malanoski

      Title:
        Executive Vice President

    

     

    
      
        
          

        

        
        

      

      
        33

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

     

    

     

    Form
      of Subscription Agreement

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

     

    Form
      of Warrant

     

    

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

     

    Opinion
      of counsel for the Company to be delivered pursuant to

    Section 6(d)
      of the Placement Agent Agreement

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    LIST
      OF
      PERSONS EXECUTING LOCK-UPS

     

     

    Joshua
      D.
      Schein

    Judson
      Cooper

    Scott
      Eagle

    Douglas
      Beck

    Eric
      I.
      Richman

    Thomas
      Laner

    

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    [Date]

     

    Jefferies
      & Company, Inc.

    CIBC
      World Markets Corp.

    Morgan
      Joseph & Co. Inc.

     

    c/o
      Jefferies & Company, Inc.

     

    520
      Madison Avenue

     

    New
      York,
      New York 10022

     

    RE: Lev
      Pharmaceuticals, Inc. (the “Company”)

     

    Ladies
      & Gentlemen:

     

    The
      undersigned is an owner of record or beneficially of certain shares of common
      stock, par value $.01 per share, of the Company (“Shares”)
      or
      securities convertible into or exchangeable or exercisable for Shares. The
      Company proposes to carry out a public offering (the “Offering”)
      of
      Units comprised of Shares and warrants to purchase Shares for which you will
      act
      as the Placement Agents. The undersigned recognizes that the Offering will
      be of
      benefit to the undersigned and will benefit the Company by,
      among
      other things, raising additional capital for its operations.
      The
      undersigned acknowledges that the Placement Agents are relying on the
      representations and agreements of the undersigned contained in this letter
      agreement in carrying out the Offering and in entering into a Placement Agent
      Agreement with the Company with respect to the Offering.

     

    In
      consideration of the foregoing, the undersigned hereby agrees that the
      undersigned will not, (and will cause any spouse or immediate family member
      of
      the spouse or the undersigned living in the undersigned’s household not to),
      without the prior written consent of Jefferies & Company, Inc. (which
      consent may be withheld in its sole discretion), directly or indirectly, sell,
      offer, contract or grant any option to sell (including without limitation any
      short sale), pledge, transfer, establish an open “put equivalent position”
within the meaning of Rule 16a-1(h) under the Securities Exchange Act of 1934,
      as amended, or otherwise dispose of any Shares, options or warrants to acquire
      Shares, or securities exchangeable or exercisable for or convertible into Shares
      currently or hereafter owned either of record or beneficially (as defined in
      Rule 13d-3 under the Securities Exchange Act of 1934, as amended) by the
      undersigned (or such spouse or family member), or publicly announce an intention
      to do any of the foregoing, for a period commencing on the date hereof and
      continuing through the close of trading on the date 90 days after
      the
      date of the Prospectus (as defined in the Placement Agent Agreement relating
      to
      the Offering to which the Company is a party) (the “Lock-up
      Period”);
      provided,
      that if
      (i) during the last 17 days of the Lock-up Period, the Company issues an
      earnings release or material news or a material event relating to the Company
      occurs or (ii) prior to the expiration of the Lock-up Period, the Company
      announces that it will release earnings results during the 16-day period
      beginning on the last day of the Lock-up Period, then in each case the Lock-up
      Period will be extended until the expiration of the 18-day period beginning
      on
      the date of the issuance of the earnings release or the occurrence of the
      material news or material event, as applicable, unless Jefferies & Company,
      Inc. waives, in writing, such extension, except
      that such extension will not apply if, (i) within three business days prior
      to
      the 15th calendar day before the last day of the Lock-up Period, the Company
      delivers a certificate, signed by the Chief Financial Officer or Chief Executive
      Officer of the Company, certifying on behalf of the Company that (i) the Shares
      are “actively traded securities” (as defined in Regulation M), (ii) the Company
      meets the applicable requirements of paragraph (a)(1) of Rule 139
      under the Securities Act in the manner contemplated by NASD Conduct
      Rule 2711(f)(4), and (iii) the provisions of NASD Conduct
      Rule 2711(f)(4) are not applicable to any research reports relating to the
      Company published or distributed by any of the Placement Agent during the 15
      days before or after the last day of the Lock-up Period (before giving effect
      to
      such extension);
      provided,
      further,
      that
      the foregoing restrictions shall not apply to the transfer of any or all of
      the
      Shares owned by the undersigned, either during is lifetime or on death, by
      gift,
      will or intestate succession to the immediate family of the undersigned or
      to a
      trust the beneficiaries of which are exclusively the undersigned and/or a member
      or members of his immediate family; provided, however, that in any such case,
      it
      shall be a condition to such transfer that the transferee executes and delivers
      to Jefferies & Company, Inc. an agreement stating that the transferee is
      receiving and holding the Shares subject to the provisions of this letter
      agreement, and there shall be no further transfer of such Shares, except in
      accordance with this letter agreement. The undersigned hereby acknowledges
      and
      agrees that written notice of any extension of the Lock-up Period pursuant
      to
      the preceding sentence will be delivered by Jefferies & Company, Inc. to the
      Company and that any such notice properly delivered will be deemed to have
      been
      given to, and received by, the undersigned.  

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    The
      undersigned also agrees and consents to the entry of stop transfer instructions
      with the Company’s transfer agent and registrar against the transfer of Shares
      or securities convertible into or exchangeable or exercisable for Shares held
      by
      the undersigned except in compliance with the foregoing
      restrictions.

     

    With
      respect to the Offering only, the undersigned waives any registration rights
      relating to registration under the Securities Act of any Shares owned either
      of
      record or beneficially by the undersigned, including any rights to receive
      notice of the Offering.

     

    This
      agreement is irrevocable and will be binding on the undersigned and the
      respective successors, heirs, personal representatives and assigns of the
      undersigned.

     

     

    _________________________

    Printed
      Name of Holder

     

    

     

    By:_________________________ 

          
      Signature

     

    

    _________________________

    Printed
      Name of Person Signing

     

    (and
      indicate capacity of person signing if 

    signing
      as custodian, trustee, or on behalf 

    of
      an
      entity)

     

    
      
        
        

      

      
        E-2

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