Document:

Common Stock Purchase Agreement

     

    
      

      

    

    

      Exhibit
        10.23

       

      ________________________________________________________________________

       

      

       

       

      COMMON
        STOCK PURCHASE AGREEMENT

       

      by
        and
        among

       

      ULURU
        Inc.

       

      and

       

      the
        parties named herein on Schedule
        1,
        as
        Purchasers

       

       

       

      December
        6, 2006

       

      

       

      _____________________________________________________________________________

       

      

       

       

      This
        COMMON
        STOCK PURCHASE AGREEMENT
        (this
        "Agreement")
        is
        dated as of December 6, 2006, by and among ULURU Inc., a Nevada corporation
        (the
        "Company"),
        and
        the purchasers identified on Schedule
        1
        hereto
        (each a "Purchaser"
        and
        collectively the "Purchasers").

       

      WHEREAS,
        subject to the terms and conditions set forth in this Agreement and pursuant
        to
        Section 4(2) of the Securities Act (as defined below), and Rule 506 promulgated
        thereunder, the Company desires to issue and sell to the Purchasers, and
        the
        Purchasers, severally and not jointly, desire to purchase from the Company
        in
        the aggregate, 47,052,628 shares of Common Stock (as defined
        below).

       

      NOW,
        THEREFORE, in consideration of the mutual covenants contained in this Agreement,
        and for other good and valuable consideration, the receipt and adequacy of
        which
        are hereby acknowledged, the Company and each Purchaser agree as
        follows:

       

      ARTICLE
        I

       

      DEFINITIONS

       

      1.1 Definitions.
        

       

      In
        addition to the terms defined elsewhere in this Agreement, for all purposes
        of
        this Agreement, the following terms have the meanings indicated in this Section
        1.1:

       

      "Action"
        shall
        have the meaning ascribed to such term in Section 3.1(j). 

       

      "Affiliate"
        means
        any Person that, directly or indirectly through one or more intermediaries,
        controls or is controlled by or is under common control with a Person, as
        such
        terms are used in and construed under Rule 144. With respect to a Purchaser,
        any
        investment fund or managed account that is managed on a discretionary basis
        by
        the same investment manager as such Purchaser will be deemed to be an Affiliate
        of such Purchaser.

       

      "Agreement"
        shall
        have the meaning ascribed to such term in the Preamble.

       

      "Business
        Day"
        means
        any day except Saturday, Sunday and any day which shall be a federal legal
        holiday or a day on which banking institutions in the State of New York are
        authorized or required by law or other governmental action to
        close.

       

      "Closing"
        shall
        have the meaning ascribed to such term in Section 2.1(a). 

       

      "Closing
        Date"
        shall
        have the meaning ascribed to such term in Section 2.1(a).

       

      "Commission"
        means
        the Securities and Exchange Commission. 

       

      "Common
        Stock"
        means
        the common stock of the Company, $0.001 par value per share, and any securities
        into which such common stock may hereafter be reclassified. 

       

      
        
           

          

          
          

        

        
          -
            1
            -

          
            

          

        

        
          
          

        

      

      

       

      "Common
        Stock Equivalents"
        means
        any securities of the Company or the Subsidiaries which would entitle the
        holder
        thereof to acquire at any time Common Stock, including without limitation,
        any
        debt, preferred stock, rights, options, warrants or other instrument that
        is at
        any time convertible into or exchangeable for, or otherwise entitles the
        holder
        thereof to receive, Common Stock. 

       

      "Company"
        shall
        have the meaning ascribed to such term in the Preamble.

       

      "Effective
        Date"
        means
        the date that the Registration Statement is first declared effective by the
        Commission. 

       

      "Environmental
        Laws"
        shall
        have the meaning ascribed to such term in Section 3.1(y).

       

      "Escrow
        Agent"
        means
        The Bank of New York.

       

      "Escrow
        Agreement"
        means
        that certain Escrow Agreement, dated as of the date of this Agreement, by
        and
        among the Company, the Escrow Agent and McFarland Dewey Securities Co. L.P.,
        in
        the form of Exhibit
        A
        hereto.

       

      "Exchange
        Act"
        means
        the Securities Exchange Act of 1934, as amended.

       

      "FDC
        Act"
        shall
        have the meaning ascribed to such term in Section 3.1(m).

       

      "GAAP"
        shall
        have the meaning ascribed to such term in Section 3.1(h).

       

      "Governmental
        Authorizations"
        shall
        have the meaning ascribed to such term in Section 3.1(m).

       

      "Hazardous
        Substances"
        shall
        have the meaning ascribed to such term in Section 3.1(y).

       

      "Indemnified
        Party"
        shall
        have the meaning ascribed to such term in Section 5.3.

       

      "Indemnifying
        Party"
        shall
        have the meaning ascribed to such term in Section 5.3.

       

      "Intellectual
        Property"
        shall
        have the meaning ascribed to such term in Section 3.1(o).

       

      "Investor
        Rights Agreement"
        means
        the Investor Rights Agreement, dated as of the date of this Agreement, by
        and
        among the Company and each of the Purchasers, in the form of Exhibit
        B
        hereto.

       

      "Lien"
        means a
        lien, charge, security interest, encumbrance, right of first refusal or other
        restriction, except for a lien for current taxes not yet due and payable
        and a
        minor imperfection of title, if any, not material in nature or amount and
        not
        materially detracting from the value or impairing the use of the property
        subject thereto or impairing the operations or proposed operations of the
        Company. 

       

      
        
           

          

          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

      "Material
        Adverse Effect"
        shall
        have the meaning ascribed to such term in Section 3.1(b). 

       

      "Per
        Share Purchase Price"
        equals
        $0.95.

       

      "Person"
        means
        an individual or corporation, partnership, trust, incorporated or unincorporated
        association, joint venture, limited liability company, joint stock company,
        government (or an agency or subdivision thereof) or other entity of any kind.
        

       

      "Premises"
        shall
        have the meaning ascribed to such term in Section 3.1(y).

       

      "Purchaser"
        shall
        have the meaning ascribed to such term in the Preamble.

       

      "Registration
        Statement"
        means a
        registration statement meeting the requirements set forth in the Investor
        Rights
        Agreement and covering the resale by the Purchasers of the Shares. 

       

      "Rights"
        shall
        have the meaning ascribed to such term in Section 3.1(o).

       

      "Rule
        144"
        means
        Rule 144 promulgated by the Commission pursuant to the Securities Act, as
        such
        Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect
        as such
        Rule. 

       

      "SEC
        Reports"
        shall
        have the meaning ascribed to such term in Section 3.1(h). 

       

      "Securities
        Act"
        means
        the Securities Act of 1933, as amended. 

       

      "Shares"
        means
        the shares of Common Stock issued to each Purchaser pursuant to this Agreement.
        

       

      "Subscription
        Amount"
        means,
        as to each Purchaser, the amount set forth beside such Purchaser's name on
        Schedule
        1
        hereto,
        in United States dollars and in immediately available funds.

       

      "Subsidiary"
        means,
        with respect to the Company, any corporation or other organization of which
        securities or other ownership interest having ordinary voting power to elect
        a
        majority of the board of directors or other persons performing similar
        functions, are directly or indirectly owned by the Company or of which the
        Company is a partner or is, directly or indirectly, the beneficial owner
        of 50%
        or more of any class of equity securities or equivalent profit participation
        interests.

       

      "Trading
        Day"
        means
        (i) a day on which the Common Stock is traded on a Trading Market, or (ii)
        if
        the Common Stock is not listed on a Trading Market, a day on which the Common
        Stock is traded on the over-the-counter market, as reported by the OTC Bulletin
        Board, or (iii) if the Common Stock is not quoted on the OTC Bulletin Board,
        a
        day on which the Common Stock is quoted in the over-the-counter market as
        reported by the National Quotation Bureau Incorporated (or any similar
        organization or agency succeeding to its functions of reporting prices);
        provided, that in the event that the Common Stock is not listed or quoted
        as set
        forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business
        Day.

       

      
        
          -
            -

          

          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

      

       

      "Trading
        Market"
        means
        the following markets or exchanges on which the Common Stock is listed or
        quoted
        for trading on the date in question: the American Stock Exchange, the New
        York
        Stock Exchange, the Nasdaq Global Market or the Nasdaq Capital
        Market.

       

      "Transaction
        Documents"
        means
        this Agreement, the Investor Rights Agreement and any other documents or
        agreements executed in connection with the transactions contemplated hereunder.
        

       

      ARTICLE
        II

       

      PURCHASE
        AND SALE

       

      2.1 Closing.

       

      (a) The
        closing of the transactions contemplated under this Agreement (the "Closing")
        will
        take place upon the execution of this Agreement by the Company and the
        Purchasers immediately following satisfaction or waiver of the conditions
        set
        forth in Sections 2.2 and 2.3 (other than those conditions which by their
        terms
        are not to be satisfied or waived until the Closing), at the offices of Bingham
        McCutchen LLP, 150 Federal Street, Boston MA 02110 (or remotely via exchange
        of
        documents and signatures) or at such other place or day as may be mutually
        acceptable to the Purchasers and the Company. The date on which the Closing
        occurs is the "Closing
        Date."

       

      (b) At
        the
        Closing, the Purchasers shall purchase, severally and not jointly, and the
        Company shall issue and sell to the Purchasers, in the aggregate,
        __________ shares
        of
        Common Stock on the Closing Date. Each Purchaser shall purchase from the
        Company, and the Company shall issue and sell to each Purchaser, a number
        of
        Shares (rounded down to the nearest whole Share) equal to such Purchaser's
        Subscription Amount divided by the Per Share Purchase Price. Except as set
        forth
        in the following sentence, the Subscription Amount paid by each Purchaser
        shall
        be placed in escrow pending the Closing pursuant to the Escrow Agreement.
        The
        Subscription Amount paid by each Purchaser tendering to the Company for
        cancellation one or more convertible promissory notes as payment for its
        Shares
        shall be paid by the tender to the Company of such notes.

       

      2.2 Conditions
        to Obligations of Purchasers to Effect the Closing.

       

      The
        obligations of each Purchaser to effect the Closing and the transactions
        contemplated by this Agreement shall be subject to the satisfaction at or
        prior
        to the Closing of each of the following conditions, any of which may be waived,
        in writing, by such Purchaser:

       

      (a) At
        the
        Closing (unless otherwise specified below) the Company shall deliver or cause
        to
        be delivered to each Purchaser the following: 

       

      
        
          -
            -

          

          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

        

      

      

       

      (i) this
        Agreement, duly executed by the Company;

       

      (ii) evidence
        of delivery to the Company's transfer agent of irrevocable instructions to
        issue
        a certificate evidencing a number of Shares equal to such Purchaser's
        Subscription Amount divided by the Per Share Purchase Price as set forth
        on
Schedule
        1
        hereto,
        registered in the name of such Purchaser;

       

      (iii) the
        Investor Rights Agreement, duly executed by the Company;

       

      (iv) a
        legal
        opinion of Parr Waddoups Brown Gee & Loveless, special
        counsel to the Company, in the form of Exhibit
        C
        hereto;
        and

       

      (vi) a
        certificate of the Secretary of the Company (the "Secretary's
        Certificate"),
        attaching a true copy of the Articles of Incorporation and Bylaws of the
        Company, each as amended and in effect on the Closing Date, and attaching
        true
        and complete copies of the resolutions of the Board of Directors of the Company
        authorizing the execution, delivery and performance of this Agreement and
        the
        Investor Rights Agreement.

      

      (b) All
        representations and warranties of the Company contained herein shall remain
        true
        and correct as of the Closing Date as though such representations and warranties
        were made on such date (except those representations and warranties that
        address
        matters only as of a particular date will remain true and correct as of such
        date).

      

      (c) As
        of the
        Closing Date, there shall have been no Material Adverse Effect with respect
        to
        the Company since the date hereof.

       

      (d) From
        the
        date hereof to the Closing Date, trading in the Common Stock shall not have
        been
        suspended by the Commission (except for any suspension of trading of limited
        duration agreed to by the Company, which suspension shall be terminated prior
        to
        the Closing), and, at any time prior to the Closing Date, trading in securities
        generally as reported by Bloomberg Financial Markets shall not have been
        suspended or limited, or minimum prices shall not have been established on
        securities whose trades are reported by such service, or on any Trading Market,
        nor shall a banking moratorium have been declared either by the United States
        or
        New York State authorities.

       

      2.3. Conditions
        to Obligations of the Company to Effect the Closing.

       

      (a) The
        obligations of the Company to effect the Closing and the transactions
        contemplated by this Agreement shall be subject to the satisfaction at or
        prior
        to the Closing of each of the following conditions, any of which may be waived,
        in writing, by the Company. At the Closing, each Purchaser shall deliver
        or
        cause to be delivered to the Company the following:

       

      
        
          -
            -

          

          
          

        

        
          -
            5
            -

          
            

          

        

        
          
          

        

      

      (i) this
        Agreement, duly executed by such Purchaser;

       

      (ii) such
        Purchaser's Subscription Amount, by wire transfer of immediately available
        funds
        as provided in the Escrow Agreement or tender of one or more promissory notes,
        as the case may be; and

       

      (iii) the
        Investor Rights Agreement, duly executed by such Purchaser.

       

      (b) All
        representations and warranties of each of the Purchasers contained herein
        shall
        remain true and correct as of the Closing Date as though such representations
        and warranties were made on such date.

      

      ARTICLE
        III

       

      REPRESENTATIONS
        AND WARRANTIES

       

      3.1 Representations
        and Warranties of the Company.

       

      The
        Company hereby makes the following representations and warranties as of the
        date
        hereof and as of the Closing Date to each Purchaser:

       

      (a) Subsidiaries.
        Except
        for ULURU Delaware Inc., a Delaware corporation, the Company has no direct
        or
        indirect Subsidiaries. 

       

      (b) Organization
        and Qualification.
        Each of
        the Company and the Subsidiaries is an entity duly incorporated or otherwise
        organized, validly existing and in good standing under the laws of the
        jurisdiction of its incorporation or organization (as applicable), with the
        requisite corporate power and authority to own and use its properties and
        assets
        and to carry on its business as currently conducted. Neither the Company
        nor any
        Subsidiary is in violation of any of the provisions of its respective
        certificate or articles of incorporation, bylaws or other organizational
        or
        charter documents. Each of the Company and the Subsidiaries is duly qualified
        to
        conduct business and is in good standing as a foreign corporation or other
        entity in each jurisdiction in which the nature of the business conducted
        or
        property owned by it makes such qualification necessary, except where the
        failure to be so qualified or in good standing, as the case may be, would
        not
        have or result in (i) a material adverse effect on the legality, validity
        or
        enforceability of any Transaction Document, (ii) a material adverse effect
        on
        the business or financial condition of the Company and the Subsidiaries,
        taken
        as a whole, or (iii) a material adverse effect on the Company's ability to
        perform in any material respect on a timely basis its obligations under any
        Transaction Document (any of (i), (ii) or (iii), a "Material
        Adverse Effect").

       

      (c) Authorization;
        Enforceability.
        The
        Company has the requisite corporate power and authority to enter into and
        to
        consummate the transactions contemplated by each of the Transaction Documents
        and otherwise to carry out its obligations thereunder. The execution and
        delivery of each of the Transaction Documents by the Company and the
        consummation by it of the transactions contemplated thereby have been duly
        authorized by all necessary action on the part of the Company and no further
        action is required by the Company in connection therewith. 

       

      
        
          -
            -

          

          
          

        

        
          -
            6
            -

          
            

          

        

        
          
          

        

      

      

       

      Each
        Transaction Document has been (or upon delivery will have been) duly executed
        by
        the Company and, when delivered in accordance with the terms hereof, will
        constitute the valid and binding obligation of the Company enforceable against
        the Company in accordance with its terms, subject to laws of general application
        relating to bankruptcy, insolvency, reorganization, moratorium or other similar
        laws affecting creditors' rights generally and rules of law governing specific
        performance, injunctive relief, or other equitable remedies.

       

      (d) No
        Conflicts.
        The
        execution, delivery and performance of the Transaction Documents by the Company
        and the consummation by the Company of the transactions contemplated thereby
        do
        not and will not (i) conflict with or violate any provision of the Company's
        or
        any Subsidiary's certificate or articles of incorporation, bylaws or other
        organizational or charter documents, or (ii) conflict with, or constitute
        a
        default (or an event that with notice or lapse of time or both would become
        a
        default) under, or give to others any rights of termination, amendment,
        acceleration or cancellation (with or without notice, lapse of time or both)
        of,
        any agreement, credit facility, debt or other instrument (evidencing a Company
        or Subsidiary debt or otherwise) or other understanding to which the Company
        or
        any Subsidiary is a party or by which any property or asset of the Company
        or
        any Subsidiary is bound or affected, or (iii) result in a violation of any
        law,
        rule, regulation, order, judgment, injunction, decree or other restriction
        of
        any court or governmental authority to which the Company or a Subsidiary
        is
        subject (including federal and state securities laws and regulations), or
        by
        which any property or asset of the Company or a Subsidiary is bound or affected,
        except, in the cases of clause (ii), where such conflict, default or violation
        would not have or result in a Material Adverse Effect or where such conflict,
        default or violation has been waived.

       

      (e) Filings,
        Consents and Approvals.
        The
        Company is not required to obtain any consent, waiver, authorization or order
        of, give any notice to, or make any filing or registration with, any court
        or
        other federal, state, local or other governmental authority or other Person
        in
        connection with the execution, delivery and performance by the Company of
        the
        Transaction Documents, other than (a) the filing with the Commission of the
        Registration Statement, the application(s) to each Trading Market for the
        listing of the Shares for trading thereon in the time and manner required
        thereby, Form D and applicable Blue Sky filings and (b) such as have already
        been obtained or such exemptive filings as are required to be made under
        applicable securities laws.

       

      (f) Issuance
        of the Shares.
        The
        Shares are duly authorized and, when issued and paid for in accordance with
        the
        terms hereof, will be duly and validly issued, fully paid and nonassessable,
        free and clear of all Liens.

       

      
        
          -
            -

          

          
          

        

        
          -
            7
            -

          
            

          

        

        
          
          

        

      

      (g) Capitalization.
        

       

      (i) The
        authorized and outstanding capitalization of the Company is as described
        in the
        Company's most recent periodic report filed with the Commission. All shares
        of
        the Company's issued and outstanding capital stock issued after October 12,
        2005
        have been duly authorized, are validly issued and outstanding, and are fully
        paid and nonassessable. No such shares were issued in violation of any statutory
        or common law preemptive rights. There are no dividends on such shares which
        have accrued or been declared but are unpaid on the capital stock of the
        Company. All taxes required to be paid by the Company in connection with
        the
        issuance and any transfers of such shares have been paid. All outstanding
        securities of the Company issued
        after October 12, 2005 have
        been
        issued in all material respects in accordance with the provisions of all
        applicable securities and other laws.

       

      (ii) No
        Person
        has any right of first refusal, preemptive right, right of participation,
        or any
        similar right to participate in the transactions contemplated by the Transaction
        Documents which has not been waived. Except as a result of the purchase and
        sale
        of the Shares and except for employee and director stock options under the
        Company's equity compensation plans (other than warrants to purchase 1,933,333
        and 4,191,667 shares
        of
        Common Stock owned by Cornell Capital Partners, LLC and Prenox, LLC,
        respectively), there are no outstanding options, warrants, rights to subscribe
        to, calls or commitments of any character whatsoever relating to, or securities,
        rights or obligations convertible into or exchangeable for, or giving any
        Person
        any right to subscribe for or acquire, any shares of Common Stock, or contracts,
        commitments, understandings or arrangements by which the Company or any
        Subsidiary is or may become bound to issue additional shares of Common Stock,
        or
        securities or rights convertible or exchangeable into shares of Common Stock.
        The issue and sale of the Shares will not obligate the Company to issue shares
        of Common Stock or other securities to any Person (other than the Purchasers)
        and will not result in a right of any holder of Company securities to adjust
        the
        exercise, conversion, exchange or reset price under such
        securities.

       

      (h) SEC
        Reports; Financial Statements; Liabilities.
        

       

      (i) The
        Company has filed all reports required to be filed by it under the Securities
        Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) of
        the
        Exchange Act, for the 12 months preceding the date hereof (or such shorter
        period as the Company was required by law to file such material) (the foregoing
        materials, including the exhibits thereto, being collectively referred to
        herein
        as the "SEC
        Reports").
        As of
        their respective filing dates, the SEC Reports complied in all material respects
        with the requirements of the Securities Act and the Exchange Act, as the
        case
        may be, and the rules and regulations of the Commission promulgated thereunder,
        as applicable, and none of the SEC Reports, as of their respective filing
        dates,
        contained any untrue statement of a material fact or omitted to state a material
        fact required to be stated therein or necessary in order to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading.

       

      
        
          -
            -

          

          
          

        

        
          -
            8
            -

          
            

          

        

        
          
          

        

      

      

       

      (ii) The
        Company's (A) audited financial statements for the fiscal years ended December
        31, 2005 and 2004 included in the Company's annual reports on Form 10-KSB
        filed
        with the Commission and (B) the financial statements included in the Company's
        quarterly reports on Form 10-QSB (and any amendments thereto) filed with
        the
        Commission for the periods ended March 31, 2006, June 30, 2006 and September
        30,
        2006 comply with applicable accounting requirements and the rules and
        regulations of the Commission with respect thereto as in effect at the time
        of
        filing of such reports. Such financial statements have been prepared in
        accordance with generally accepted accounting principles in the United States,
        applied on a consistent basis during the periods involved ("GAAP"),
        except as may be otherwise specified in such financial statements or the
        notes
        thereto and except that unaudited financial statements may not contain all
        footnotes required by GAAP, subject to normal year-end audit adjustments.
        Such
        financial statements fairly present in all material respects the financial
        position of the Company and its consolidated subsidiaries, if any, as of
        and for
        the dates thereof and the results of operations and cash flows for the periods
        then ended, subject, in the case of unaudited statements, to normal year-end
        audit adjustments.

       

      (iii) Except
        as
        set forth in the SEC Reports, and except for liabilities and obligations
        incurred since September 30, 2006 in the ordinary course of business, consistent
        with past practice: (i) the Company and its Subsidiaries do not have any
        material liabilities or obligations (absolute, accrued, contingent or otherwise)
        and (ii) there has not been any aspect of the prior or current conduct of
        the
        business of the Company or its Subsidiaries which may form the basis for
        any
        material claim by any third party which if asserted could result in a Material
        Adverse Effect.

       

      (i) Material
        Changes.
        Since
        September 30, 2006, the Company has conducted its business only in the ordinary
        course, consistent with past practice, and since such date there has not
        occurred:

       

      (i) any
        event, occurrence or development that has had or that could reasonably be
        expected to result in a Material Adverse Effect;

       

      (ii) any
        amendments or changes in the charter documents of the Company and its
        Subsidiaries;

       

      (iii) any:

       

      (A)
        incurrence, assumption or guarantee by the Company or its Subsidiaries of
        any
        debt for borrowed money other than (i) equipment leases made in the ordinary
        course of business, consistent with past practice and (ii) any such incurrence,
        assumption or guarantee with respect to an amount of $25,000 or less that
        has
        been disclosed in the SEC Reports; 

       

      (B)
        issuance or sale of any securities convertible into or exchangeable for
        securities of the Company other than to directors, employees and consultants
        pursuant to existing equity compensation or stock purchase plans of the Company;
        

       

      
        
          -
            -

          

          
          

        

        
          -
            9
            -

          
            

          

        

        
          
          

        

      

      

       

      (C)
        issuance or sale of options or other rights to acquire from the Company or
        its
        Subsidiaries, directly or indirectly, securities of the Company or any
        securities convertible into or exchangeable for any such securities, other
        than
        options issued to directors, employees and consultants in the ordinary course
        of
        business, consistent with past practice; 

       

      (D)
        issuance or sale of any stock, bond or other corporate security other than
        to
        directors, employees and consultants pursuant to existing equity compensation
        or
        stock purchase plans of the Company;

       

      (E)
        discharge or satisfaction of any material Lien; 

       

      (F)
        declaration or making any payment or distribution to stockholders or purchase
        or
        redemption of any share of its capital stock or other security other than
        to
        directors, officers and employees of the Company or its Subsidiaries as
        compensation for services rendered to the Company or its Subsidiary (as
        applicable) or for reimbursement of expenses incurred on behalf of the Company
        or its Subsidiary (as applicable); 

       

      (G)
        sale,
        assignment or transfer of any of its intangible assets except in the ordinary
        course of business, consistent with past practice, or cancellation of any
        debt
        or claim except in the ordinary course of business, consistent with past
        practice;

       

      (H)
        waiver of any right of substantial value whether or not in the ordinary course
        of business;

       

      (I)
        material change in officer compensation, except in the ordinary course of
        business and consistent with past practice; or 

       

      (J)
        other
        commitment (contingent or otherwise) to do any of the foregoing.

       

      (iv) any
        creation, sufferance or assumption by the Company or any of its Subsidiaries
        of
        any Lien on any asset or any making of any loan, advance or capital contribution
        to or investment in any Person, in an aggregate amount which exceeds $25,000
        outstanding at any time;

       

      (v) any
        entry
        into, amendment of, relinquishment, termination or non-renewal by the Company
        or
        its Subsidiaries of any material contract, license, lease, transaction,
        commitment or other right or obligation, other than in the ordinary course
        of
        business, consistent with past practice; or

       

      (vi) any
        transfer or grant of a right with respect to the patents, trademarks, trade
        names, service marks, trade secrets, copyrights or other intellectual property
        rights owned or licensed by the Company or its Subsidiaries, except as among
        the
        Company and its Subsidiaries.

       

      
        
          -
            -

          

          
          

        

        
          -
            10
            -

          
            

          

        

        
          
          

        

      

      

       

      (j) Litigation.
        There
        is no action, suit, inquiry, notice of violation, proceeding or, to the
        knowledge of the Company, investigation pending nor, to the knowledge of
        the
        Company, is any of the above threatened against the Company, any Subsidiary
        or
        any of their respective properties before or by any court, arbitrator,
        governmental or administrative agency or regulatory authority (federal, state,
        county, local or foreign) (collectively, an "Action")
        which
        (i) adversely affects or challenges the legality, validity or enforceability
        of
        any of the Transaction Documents or the Shares or (ii) could, if there were
        an
        unfavorable decision, have or result in a Material Adverse Effect. Neither
        the
        Company nor any Subsidiary, nor, to the knowledge of the Company, any director
        or officer thereof, is or has been the subject of any Action involving a
        claim
        of violation of or liability under federal or state securities laws or a
        claim
        of breach of fiduciary duty within the past twelve (12) months. To the knowledge
        of the Company, there has not been and there is not pending or contemplated,
        any
        investigation by the Commission involving the Company or any current or former
        director or officer of the Company. The Commission has not issued any stop
        order
        or other order suspending the effectiveness of any registration statement
        filed
        by the Company or any Subsidiary under the Exchange Act or the Securities
        Act
        within the past twelve (12) months

       

      (k) Labor
        Relations.
        No
        material labor dispute exists or, to the knowledge of the Company, is imminent
        with respect to any of the employees of the Company which could have or result
        in a Material Adverse Effect.

       

      (l) Compliance.
        Neither
        the Company nor any Subsidiary (i) is in default under or in violation of
        (and
        no event has occurred that has not been waived that, with notice or lapse
        of
        time or both, would result in a default by the Company or any Subsidiary
        under),
        nor has the Company or any Subsidiary received notice of a claim that it
        is in
        default under or that it is in violation of, any indenture, loan or credit
        agreement or any other agreement or instrument to which it is a party or
        by
        which it or any of its properties is bound, (ii) is in violation of any order
        of
        any court, arbitrator or governmental body, or (iii) is or has been in violation
        of any statute, rule or regulation of any governmental authority, including
        without limitation all foreign, federal, state and local laws applicable
        to its
        business, except in the case of clauses (i) and (iii) as would not have or
        reasonably be expected to result in a Material Adverse Effect.

       

      (m) Licenses;
        Compliance With FDA and Other Regulatory Requirements.

       

      (i) The
        Company holds all material authorizations, consents, approvals, franchises,
        licenses and permits required under applicable law or regulation for the
        operation of the business of the Company and its Subsidiaries as presently
        operated (the "Governmental
        Authorizations").
        All
        the Governmental Authorizations have been duly issued or obtained and are
        in
        full force and effect, and the Company and its Subsidiaries are in material
        compliance with the terms of all the Governmental Authorizations. The Company
        and its Subsidiaries have not engaged in any activity that, to their knowledge,
        would cause revocation or suspension of any such Governmental Authorizations.
        Neither the execution, delivery nor performance of this Agreement shall
        adversely affect the status of any of the Governmental
        Authorizations.

       

      
        
          -
            -

          

          
          

        

        
          -
            11
            -

          
            

          

        

        
          
          

        

      

      

       

      (ii) Without
        limiting the generality of the representations and warranties made in
        sub-paragraph (i) above, the Company represents and warrants that (i) the
        Company and each of its Subsidiaries is in material compliance with all
        applicable provisions of the United States Federal Food, Drug, and Cosmetic
        Act
        and the rules and regulations promulgated thereunder (the "FDC
        Act")
        and
        equivalent laws, rules and regulations in jurisdictions outside the United
        States in which the Company or its Subsidiaries do business, (ii) its products
        and those of each of its Subsidiaries that are in the Company's control are
        not
        adulterated or misbranded and are in lawful distribution, (iii) all of the
        products marketed by and within the control of the Company comply in all
        material respects with any conditions of approval and the terms of the
        application by the Company to the appropriate Regulatory Authorities, (iv)
        no
        Regulatory Authority has initiated legal action with respect to the
        manufacturing of the Company's products, such as seizures or required recalls,
        and the Company is in compliance with applicable good manufacturing practice
        regulations, (v) its products are labeled and promoted by the Company and
        its
        representatives in substantial compliance with the applicable terms of the
        marketing applications submitted by the Company to the Regulatory Authorities
        and the provisions of the FDC Act and foreign equivalents, (vi) all adverse
        events that were known to and required to be reported by Company to the
        Regulatory Authorities have been reported to the Regulatory Authorities in
        a
        timely manner, (vii) neither the Company nor any of its Subsidiaries is,
        to
        their knowledge, employing or utilizing the services of any individual who
        has
        been debarred under the FDC Act or foreign equivalents, (viii) all stability
        studies required to be performed for products distributed by the Company
        or any
        of its Subsidiaries have been completed or are ongoing in material compliance
        with the applicable Regulatory Authority requirements, (ix) any products
        exported by the Company or any of its Subsidiaries have been exported in
        compliance with the FDC Act and (x) the Company and its Subsidiaries are
        in
        compliance in all material respects with all applicable provisions of the
        Controlled Substances Act. For purposes of this Section 3.1(m), "Regulatory
        Authority"
        means
        any governmental authority in a country or region that regulates the manufacture
        or sale of Company's products, including, but not limited to, the United
        States
        Food and Drug Administration.

       

      (n) Title
        to Assets.
        The
        Company and the Subsidiaries do not own any real property, and have good
        and
        marketable title to all personal property owned by them that is material
        to the
        business of the Company and the Subsidiaries, taken as a whole, in each case
        free and clear of all Liens, except those, if any, reflected in the Company's
        financial statements or incurred in the ordinary course of business consistent
        with past practice or which would not cause a Material Adverse Effect. Any
        real
        property and facilities held under lease by the Company and the Subsidiaries
        are
        held by them under valid, subsisting and enforceable leases (subject to laws
        of
        general application relating to bankruptcy, insolvency, reorganization,
        moratorium or other similar laws affecting creditors' rights generally and
        rules
        of law governing specific performance, injunctive relief, or other equitable
        remedies) with which the Company and the Subsidiaries are in material
        compliance.

       

      
        
          -
            -

          

          
          

        

        
          -
            12
            -

          
            

          

        

        
          
          

        

      

      

       

      (o) Intellectual
        Property. 

       

      (i) The
        Company or a Subsidiary thereof has the right to use or is the sole and
        exclusive owner of all right, title and interest in and to all material foreign
        and domestic patents, patent rights, trademarks, service marks, trade names,
        brands and copyrights (whether or not registered and, if applicable, including
        pending applications for registration) owned, used or controlled by the Company
        and its Subsidiaries (collectively, the "Rights")
        and in
        and to each material invention, software, trade secret, technology, product,
        composition, formula and method of process used by the Company or its
        Subsidiaries (the Rights and such other items, the "Intellectual
        Property"),
        and,
        to the Company's knowledge, has the right to use the same, free and clear
        of any
        claim or conflict with the rights of others (subject to the provisions of
        any
        applicable license agreement) except as would not cause a Material Adverse
        Effect; 

       

      (ii) other
        than as set forth in the SEC Reports and except as in the ordinary course
        of
        business, no royalties or fees (license or otherwise) are payable by the
        Company
        or its Subsidiaries to any Person by reason of the ownership or use of any
        of
        the Intellectual Property; 

       

      (iii) there
        have been no written claims made against the Company or its Subsidiaries
        asserting the invalidity, abuse, misuse, or unenforceability of any of the
        Intellectual Property, and, to the best of the Company's knowledge, there
        are no
        reasonable grounds for any such claims which would cause a Material Adverse
        Effect; 

       

      (iv) neither
        the Company nor its Subsidiaries have made any claim of any violation or
        infringement by others of its rights in the Intellectual Property, and to
        the
        best of the Company's knowledge, no reasonable grounds for such claims exist;
        and 

       

      (v) neither
        the Company nor its Subsidiaries have received written notice that it is
        in
        conflict with or infringing upon the asserted rights of others in connection
        with the Intellectual Property which would cause a Material Adverse
        Effect.

       

      (p) Insurance.
        The
        Company and the Subsidiaries are insured by insurers of recognized financial
        responsibility against such losses and risks and in such amounts as are prudent
        and customary in the businesses in which the Company and the Subsidiaries
        are
        engaged. All of the insurance policies of the Company and its Subsidiaries
        are
        in full force and effect and are valid and enforceable in accordance with
        their
        terms, and the Company and its Subsidiaries have complied with all material
        terms and conditions thereof. Neither the Company nor any Subsidiary has
        any
        reason to believe that it will not be able to renew its existing insurance
        coverage as and when such coverage expires or to obtain similar coverage
        from
        similar insurers as may be necessary to continue its business without a
        significant increase in cost.

       

      
        
          -
            -

          

          
          

        

        
          -
            13
            -

          
            

          

        

        
          
          

        

      

      

       

      (q) Transactions
        With Affiliates and Employees.
        Except
        as provided in the SEC Reports, none of the officers or directors of the
        Company
        and, to the knowledge of the Company, none of the employees of the Company
        is
        presently a party to any transaction with the Company or any Subsidiary (other
        than for services as employees, officers and directors), including any contract,
        agreement or other arrangement providing for the furnishing of services to
        or
        by, providing for rental of real or personal property to or from, or otherwise
        requiring payments to or from any officer, director or such employee or,
        to the
        knowledge of the Company, any entity in which any officer, director, or any
        such
        employee has a substantial interest or is an officer, director, trustee or
        partner, other than (a) for payment of salary or consulting fees for services
        rendered, (b) reimbursement for expenses incurred on behalf of the Company
        and
        (c) for other employee benefits, including stock option agreements and other
        stock awards under any equity compensation plan of the Company.

       

      (r) Internal
        Accounting Controls.
        The
        Company and each of the Subsidiaries maintains a system of internal accounting
        controls sufficient in the judgment of the Company's management to provide
        reasonable assurance that (i) transactions are executed in accordance with
        management's general or specific authorizations, (ii) transactions are recorded
        as necessary to permit preparation of financial statements in conformity
        with
        GAAP and to maintain asset accountability, (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 the existing assets
        at
        reasonable intervals and appropriate action is taken with respect to any
        differences. The Company has established disclosure controls and procedures
        (as
        defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and
        designed such disclosure controls and procedures to ensure that the Company
        is
        able to collect the information that it is required to disclose in the reports
        it files with the Commission and to process, summarize and disclose this
        information in the time periods specified in the Commission's rules. The
        Company's certifying officers have evaluated the effectiveness of the Company's
        controls and procedures as of September 30, 2006. The Company presented in
        its
        Form 10-QSB for the quarter ended September 30, 2006 the conclusions of the
        certifying officers about the effectiveness of the disclosure controls and
        procedures based on their evaluations as of September 30, 2006. Since September
        30, 2006, there have been no significant changes in the Company's internal
        controls (as such term is defined in Item 307(b) of Regulation S-K under
        the
        Exchange Act) or, to the Company's knowledge, in other factors that could
        significantly affect the Company's internal controls.

       

      (s) Certain
        Fees.
        Except
        for fees payable to each of Blue Alternative Asset Management LLC and McFarland
        Dewey Securities Co. L.P. and its designees, no brokerage or finder's fees
        or
        commissions are or will be payable by the Company to any broker, financial
        advisor or consultant, finder, placement agent, investment banker, bank or
        other
        Person with respect to the transactions contemplated by this Agreement. The
        Purchasers shall have no obligation with respect to any fees or with respect
        to
        any claims made by or on behalf of other Persons for fees of a type contemplated
        in this Section that may be due in connection with the transactions contemplated
        by this Agreement.

       

      
        
          -
            -

          

          
          

        

        
          -
            14
            -

          
            

          

        

        
          
          

        

      

      

       

      (t) Private
        Placement; Integrated Offering.
        Assuming the accuracy of the Purchasers representations and warranties set
        forth
        in Section 3.2, no registration under the Securities Act is required for
        the
        offer and sale of the Shares by the Company to the Purchasers as contemplated
        hereby. The issuance and sale of the Shares hereunder does not contravene
        the
        rules and regulations of the Trading Market. Neither the Company, nor any
        of its
        Affiliates, nor any Person acting on its or their behalf has, directly or
        indirectly, made any offers or sales of any security or solicited any offers
        to
        buy any security, under circumstances that would cause this offering of the
        Shares to be integrated with prior offerings by the Company for purposes
        of the
        Securities Act and would as a result require registration under the Securities
        Act or trigger any applicable shareholder approval provisions, including,
        without limitation, under the rules and regulations of any exchange or automated
        quotation system on which any of the securities of the Company are listed
        or
        designated.

       

      (u) Registration
        Rights.
        Except
        as set forth in the Investor Rights Agreement and with respect to the shares
        of
        Common Stock issuable upon exercise of warrants held by McFarland Dewey
        Securities Co. L.P., no Person has any right to cause the Company to effect
        the
        registration under the Securities Act of any securities of the
        Company.

       

      (v) Listing
        and Maintenance Requirements.
        The
        Company has not, in the 12 months preceding the date hereof, received notice
        from any Trading Market on which the Common Stock is or has been listed or
        quoted to the effect that the Company is not in compliance with the listing
        or
        maintenance requirements of such Trading Market. The Company is, and has
        no
        reason to believe that it will not in the foreseeable future continue to
        be, in
        compliance with all such listing and maintenance requirements.

       

      (w) Taxes.
        All
        tax
        returns and tax reports required to be filed with respect to the income,
        operations, business or assets of the Company and its Subsidiaries have been
        timely filed (or appropriate extensions have been obtained) with the appropriate
        governmental agencies in all jurisdictions in which such returns and reports
        are
        required to be filed, and all of the foregoing as filed are, in all material
        respects, correct and complete and, in all material respects, reflect accurately
        all liability for taxes of the Company and its Subsidiaries for the periods
        to
        which such returns relate, and all amounts shown as owing thereon have been
        paid. All income, profits, franchise, sales, use, value added, occupancy,
        property, excise, payroll, withholding, FICA, FUTA and other taxes (including
        interest and penalties), if any, collectible or payable by the Company and
        its
        Subsidiaries or relating to or chargeable against any of its material assets,
        revenues or income or relating to any employee, independent contractor,
        creditor, stockholder or other third party through the Closing Date, were
        fully
        collected and paid by such date if due by such date or provided for by adequate
        reserves in the financial statements contained in the SEC Reports as of and
        for
        the periods ended September 30, 2006 (other than taxes accruing after such
        date)
        and all similar items due through the Closing Date will have been fully paid
        by
        that date or provided for by adequate reserves, whether or not any such taxes
        were reported or reflected in any tax returns or filings.

       

      
        
          -
            -

          

          
          

        

        
          -
            15
            -

          
            

          

        

        
          
          

        

      

      No
        taxation authority has sought to audit the records of the Company or any
        of its
        Subsidiaries for the purpose of verifying or disputing any tax returns, reports
        or related information and disclosures provided to such taxation authority,
        or
        for the Company's or any of its Subsidiaries' alleged failure to provide
        any
        such tax returns, reports or related information and disclosure. No material
        claims or deficiencies have been asserted against or inquiries raised with
        the
        Company or any of its Subsidiaries with respect to any taxes or other
        governmental charges or levies which have not been paid or otherwise satisfied,
        including claims that, or inquiries whether, the Company or any of its
        Subsidiaries has not filed a tax return that it was required to file, and,
        to
        the best of the Company's knowledge, there exists no reasonable basis for
        the
        making of any such claims or inquiries. Neither the Company nor any of its
        Subsidiaries has waived any restrictions on assessment or collection of taxes
        or
        consented to the extension of any statute of limitations relating to
        taxation.

       

      (x) Environmental
        Matters. None
        of
        the premises or any properties owned, occupied or leased by the Company or
        its
        Subsidiaries (the "Premises")
        has
        been used by the Company or the Subsidiaries or, to the Company's knowledge,
        by
        any other Person, to manufacture, treat, store, or dispose of any substance
        that
        has been designated to be a "hazardous substance" under applicable Environmental
        Laws (hereinafter defined) ("Hazardous
        Substances")
        in
        violation of any applicable Environmental Laws. To its knowledge, the Company
        has not disposed of, discharged, emitted or released any Hazardous Substances
        which would require, under applicable Environmental Laws, remediation,
        investigation or similar response activity. No Hazardous Substances are present
        as a result of the actions of the Company or, to the Company's knowledge,
        any
        other Person, in, on or under the Premises which would give rise to any
        liability or clean-up obligations of the Company under applicable Environmental
        Laws. The Company and, to the Company's knowledge, any other Person for whose
        conduct it may be responsible pursuant to an agreement or by operation of
        law,
        are in compliance with all laws, regulations and other federal, state or
        local
        governmental requirements, and all applicable judgments, orders, writs, notices,
        decrees, permits, licenses, approvals, consents or injunctions in effect
        on the
        date of this Agreement relating to the generation, management, handling,
        transportation, treatment, disposal, storage, delivery, discharge, release
        or
        emission of any Hazardous Substance (the "Environmental
        Laws").
        Neither the Company nor, to the Company's knowledge, any other Person for
        whose
        conduct it may be responsible pursuant to an agreement or by operation of
        law
        has received any written complaint, notice, order, or citation of any actual,
        threatened or alleged noncompliance with any of the Environmental Laws, and
        there is no proceeding, suit or investigation pending or, to the Company's
        knowledge, threatened against the Company or, to the Company's knowledge,
        any
        such Person with respect to any violation or alleged violation of the
        Environmental Laws, and, to the knowledge of the Company, there is no basis
        for
        the institution of any such proceeding, suit or investigation. 

       

      (y) Financial
        Projections.
        The
        financial projections of the Company, dated November 2006, delivered to the
        Purchasers on or prior to the Closing were prepared by Company management
        in
        good faith, subject to all of the assumptions and factors relied upon by
        the
        Company in connection with the preparation thereof, and present a reasonable
        estimate of the Company's future financial performance. 

       

      
        
          -
            -

          

          
          

        

        
          -
            16
            -

          
            

          

        

        
          
          

        

      

      (z) Disclosure.
        The
        Company understands and confirms that the Purchasers will rely on the foregoing
        representations and covenants in effecting transactions in securities of
        the
        Company. All disclosure provided to the Purchasers regarding the Company,
        its
        business and the transactions contemplated hereby furnished by or on behalf
        of
        the Company are true and correct and do not contain any untrue statement
        of a
        material fact or omit to state any material fact necessary in order to make
        the
        statements made therein, in light of the circumstances under which they were
        made, not misleading.

       

      Each
        Purchaser acknowledges and agrees that the Company does not make and has
        not
        made any representations or warranties with respect to the transactions
        contemplated hereby other than those specifically set forth in this Section
        3.1
        or in any Transaction Document.

       

      3.2 Representations
        and Warranties of the Purchasers.
        

       

      Each
        Purchaser hereby, for itself and for no other Purchaser, represents and warrants
        as of the date hereof and as of the Closing Date to the Company as
        follows:

       

      (a) Organization;
        Authority; Enforceability.
        Such
        Purchaser (other than individuals) is an entity duly organized, validly existing
        and in good standing under the laws of the jurisdiction of its organization
        with
        full power and authority to enter into and to consummate the transactions
        contemplated by the Transaction Documents and otherwise to carry out its
        obligations thereunder. The execution, delivery and performance by such
        Purchaser of the transactions contemplated by this Agreement has been duly
        authorized by all necessary corporate or similar action on the part of such
        Purchaser. Each Transaction Document to which it is a party has been duly
        executed by such Purchaser, and when delivered by such Purchaser in accordance
        with the terms hereof, will constitute the valid and legally binding obligation
        of such Purchaser, enforceable against it in accordance with its terms, subject
        to laws of general application relating to bankruptcy, insolvency,
        reorganization, moratorium or other similar laws affecting creditors' rights
        generally and rules of law governing specific performance, injunctive relief,
        or
        other equitable remedies.

       

      (b)
         General
        Solicitation.
        Such
        Purchaser is not purchasing the Shares as a result of any advertisement,
        article, notice or other communication regarding the Shares published in
        any
        newspaper, magazine or similar media or broadcast over television or radio
        or
        presented at any seminar or any other general solicitation or general
        advertisement.

       

      (c) No
        Public Sale or Distribution.
        Such
        Purchaser is (i) acquiring the Shares for its own account and not with a
        view
        towards, or for resale in connection with, the public sale or distribution
        thereof; provided,
        however,
        that by
        making the representations herein, such Purchaser does not agree to hold
        any
        Shares for any minimum or other specific term and reserves the right to dispose
        of the Shares at any time in accordance with or pursuant to a registration
        statement or an exemption under the Securities Act. Such Purchaser is acquiring
        the Shares hereunder in the ordinary course of its business. Such Purchaser
        does
        not have any agreement or understanding, directly or indirectly, with any
        Person
        to distribute any of the Shares.

       

      
        
          -
            -

          

          
          

        

        
          -
            17
            -

          
            

          

        

        
          
          

        

      

      (d) Accredited
        Investor Status.
        Such
        Purchaser is an "accredited investor" as that term is defined in Rule 501(a)
        of
        Regulation D.

       

      (e) Residency. Such
        Purchaser is a resident of the jurisdiction set forth below such Purchaser's
        name on Schedule
        1
        hereto.

       

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

       

      (g)
         Information.
        Such
        Purchaser and its advisors, if any, have been furnished with all publicly
        available materials (or such materials have been made available to such
        Purchaser) relating to the business, finances and operations of the Company
        and
        such other publicly available materials relating to the offer and sale of
        the
        Shares as have been requested by such Purchaser, including, without limitation,
        the Company's Form 10-KSB for the fiscal year ended December 31, 2005 and
        Forms 10-QSB (and any amendments thereto) for the periods ended March 31,
        2006, June 30, 2006 and September 30, 2006. Such Purchaser acknowledges that
        it
        has read and understands the risk factors set forth in such Form 10-KSB.
        Such
        Purchaser and its advisors, if any, have been afforded the opportunity to
        ask
        questions of the Company. Neither such inquiries nor any other due diligence
        investigations conducted by such Purchaser or its advisors, if any, or its
        representatives, or the risk factors set forth in the Company's Form 10-KSB
        for
        the fiscal year ended December 31, 2005, shall modify, amend or affect such
        Purchaser's right to rely on the Company's representations and warranties
        contained herein. Such Purchaser understands that its investment in the Shares
        involves a high degree of risk.

       

      (h)
         No
        Governmental Review.
        Such
        Purchaser understands that no United States federal or state agency or any
        other
        government or governmental agency has passed on or made any recommendation
        or
        endorsement of the Shares or the fairness or suitability of the investment
        in
        the Shares, nor have such authorities passed upon or endorsed the merits
        of the
        offering of the Shares.

       

      (i)
         Experience
        of Such Purchaser.
        Such
        Purchaser, either alone or together with its representatives, has such
        knowledge, sophistication and experience in business and financial matters,
        including investing in companies engaged in the business in which the Company
        is
        engaged, so as to be capable of evaluating the merits and risks of the
        prospective investment in the Shares, and has so evaluated the merits and
        risks
        of such investment. Such Purchaser is able to bear the economic risk of an
        investment in the Shares and, at the present time, is able to afford a complete
        loss of such investment.

       

      The
        Company acknowledges and agrees that each Purchaser does not make or has
        not
        made any representations or warranties with respect to the transactions
        contemplated hereby other than those specifically set forth in this Section
        3.2.

       

      
        
          -
            -

          

          
          

        

        
          -
            18
            -

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        IV

       

      OTHER
        AGREEMENTS OF THE PARTIES

       

      4.1 Transfer
        Restrictions.

       

      (a) The
        Shares may only be disposed of in compliance with state and federal securities
        laws. In connection with any transfer of Shares, other than pursuant to an
        effective registration statement, to the Company, to an Affiliate of a Purchaser
        (who is an "accredited investor" as defined in Rule 501 under the Securities
        Act
        and executes a customary representation letter) or in connection with a pledge
        as contemplated in Section 4.1(b), the Company may require the transferor
        thereof to provide to the Company an opinion of counsel selected by the
        transferor and reasonably satisfactory to the Company, the form and substance
        of
        which opinion shall be reasonably satisfactory to the Company, to the effect
        that such transfer does not require registration of such transferred Shares
        under the Securities Act,
        provided, however,
        that in
        the case of a transfer pursuant to Rule 144, no opinion shall be required
        if the
        transferor provides the Company with a customary seller's representation
        letter,
        and if such sale is not pursuant to subsection (k) of Rule 144, a customary
        broker's representation letter and a Form 144. 
        Any such
        transferee that agrees in writing to be bound by the terms of this Agreement
        and
        the Investor Rights Agreement shall have the rights of a Purchaser under
        this
        Agreement and the Investor Rights Agreement. Except as required by federal
        securities laws and the securities law of any state or other jurisdiction
        within
        the United States, the Shares may be transferred, in whole or in part, by
        any of
        the Purchasers at any time. The Company shall reissue certificates evidencing
        the Shares upon surrender of certificates evidencing the Shares being
        transferred in accordance with this Section 4.1(a).

       

      (b) The
        Purchasers agree to the imprinting, so long as is required by this
        Section 4.1(b), of a legend on any of the Shares in substantially the
        following form:

       

      THESE
        SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
        OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
        REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
        ACT"),
        AND,
        ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
        REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
        EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
        REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
        SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
        TO
        SUCH EFFECT, SUCH COUNSEL AND THE SUBSTANCE OF SUCH OPINION SHALL BE REASONABLY
        ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION
        WITH A
        BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH
        A
        FINANCIAL INSTITUTION THAT IS AN "ACCREDITED
        INVESTOR"
        AS
        DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 

       

      
        
          -
            -

          

          
          

        

        
          -
            19
            -

          
            

          

        

        
          
          

        

      

      

       

      The
        Company acknowledges and agrees that a Purchaser may from time to time pledge
        pursuant to a bona fide margin agreement with a registered broker-dealer
        or
        grant a security interest in some or all of the Shares to a financial
        institution that is an "accredited investor" as defined in Rule 501(a) under
        the
        Securities Act and, if required under the terms of such arrangement, such
        Purchaser may transfer pledged or secured Shares to the pledgees or secured
        parties. Such a pledge or transfer would not be subject to approval of the
        Company and no legal opinion of legal counsel of the pledgee, secured party
        or
        pledgor shall be required in connection therewith; provided,
        however,
        that
        such Purchaser shall provide the Company with such documentation as is
        reasonably requested by the Company to ensure that the pledge is pursuant
        to a
        bona fide margin agreement with a registered broker-dealer or a security
        interest in some or all of the Shares to a financial institution that is
        an
        "accredited investor" as defined in Rule 501(a) under the Securities Act.
        The
        Company will execute and deliver such documentation as a pledgee or secured
        party of Shares may reasonably request in connection with a pledge or transfer
        of the Shares, including the preparation and filing of any required prospectus
        supplement under Rule 424(b)(3) under the Securities Act or other applicable
        provision of the Securities Act to appropriately amend the list of selling
        stockholders thereunder.

       

      (c) Certificates
        evidencing the Shares shall not contain any legend (including the legend
        set
        forth in Section 4.1(b)), (i) following any sale of such Shares pursuant
        to Rule
        144, or (ii) if such Shares are eligible for sale under Rule 144(k) (and
        the
        holder of such Shares has submitted a written request for removal of the
        legend
        indicating that the holder has complied with the applicable provisions of
        Rule
        144), or (iii) if such legend is not required under applicable requirements
        of
        the Securities Act (including judicial interpretations and pronouncements
        issued
        by the Staff of the Commission) (and the holder of such Shares has submitted
        a
        written request for removal of the legend indicating that the holder has
        complied with the applicable provisions of Rule 144). The Company shall cause
        its counsel to issue a legal opinion to the Company's transfer agent promptly
        upon the occurrence of any of the events in clauses (i), (ii) or (iii) above
        to
        effect the removal of the legend hereunder and shall also cause its counsel
        to
        issue a "blanket" legal opinion to the Company's transfer agent promptly
        after
        the Effective Date, if required by the Company's transfer agent, to allow
        sales
        pursuant to an effective Registration Statement. The Company agrees that
        at such
        time as such legend is no longer required under this Section 4.1(c), it will,
        no
        later than three Trading Days following the delivery by a Purchaser to the
        Company or the Company's transfer agent of a certificate representing Shares
        with a restrictive legend, deliver or cause to be delivered to such Purchaser
        a
        certificate representing such Shares that is free from all restrictive and
        other
        legends; provided that, if a Purchaser is selling Shares pursuant to Rule
        144,
        the holder of such Shares has submitted a written request for removal of
        the
        legend indicating that the holder has complied with the applicable provisions
        of
        Rule 144. The Company may not make any notation on its records or give
        instructions to any transfer agent of the Company that enlarge the restrictions
        on transfer set forth in this Section.

       

      
        
          -
            -

          

          
          

        

        
          -
            20
            -

          
            

          

        

        
          
          

        

      

      

       

      (d) Each
        Purchaser, severally and not jointly, agrees that the removal of the restrictive
        legend from certificates representing Shares as set forth in this Section
        4.1 is
        predicated upon the Company's reliance on, and such Purchaser's agreement
        that,
        and each Purchaser hereby agrees that, such Purchaser will not sell any Shares
        except pursuant to either the registration requirements of the Securities
        Act,
        including any applicable prospectus delivery requirements, or an exemption
        therefrom.

       

      4.2
         Furnishing
        of Information.
        

       

      As
        long
        as any Purchaser owns Shares, the Company covenants to timely file (or obtain
        extensions in respect thereof and file within the applicable grace period)
        all
        reports required to be filed by the Company after the date hereof pursuant
        to
        the Exchange Act. As long as any Purchaser owns Shares, if the Company is
        not
        required to file reports pursuant to the Exchange Act, it will prepare and
        furnish to the Purchasers and make publicly available in accordance with
        Rule
        144(c), such information as is required for the Purchasers to sell the Shares
        under Rule 144. The Company further covenants that it will take such further
        action as any holder of Shares may reasonably request, all to the extent
        required from time to time to enable such Person to sell such Shares without
        registration under the Securities Act within the limitation of the exemptions
        provided by Rule 144.

       

      4.3 Integration.

       

      The
        Company shall not sell, offer for sale or solicit offers to buy or otherwise
        negotiate in respect of any security (as defined in Section 2 of the Securities
        Act) that would be integrated with the offer or sale of the Shares in a manner
        that would require the registration under the Securities Act of the sale
        of the
        Shares to the Purchasers or that would be integrated with the offer or sale
        of
        the Shares for purposes of the rules and regulations of any Trading Market.
        

       

      4.4 Form
        8-K; Publicity.
        

       

      The
        Company shall, within four Business Days following the date hereof, file
        a
        Current Report on Form 8-K, disclosing the transactions contemplated hereby
        and
        make such other filings and notices in the manner and time required by the
        Commission. No Purchaser shall issue any press release with respect to the
        transactions contemplated hereby or otherwise make any such public statement
        without the prior consent of the Company, except if such disclosure is required
        by applicable law, rule or regulation, in which case such Purchaser shall
        promptly provide the Company with prior notice of such public statement or
        communication. The Company shall not publicly disclose the name of any
        Purchaser, or include the name of any Purchaser in any filing made with the
        Commission (other than the Registration Statement and any exhibits to filings
        made in respect of the transactions contemplated hereby in accordance with
        the
        periodic filing and reporting requirements under the Exchange Act) or any
        regulatory agency, securities exchange or Trading Market, without the prior
        written consent of such Purchaser. 

       

      
        
          -
            -

          

          
          

        

        
          -
            21
            -

          
            

          

        

        
          
          

        

      

      Notwithstanding
        the foregoing, the Company shall be permitted to make any such disclosure
        to the
        extent such disclosure is required by law or applicable Trading Market
        regulations, in which case the Company shall provide such Purchaser with
        prior
        notice of such disclosure.

       

      4.5 Non-Public
        Information.

       

      The
        Company covenants and agrees that neither it nor any other Person acting
        on its
        behalf will provide any Purchaser or its agents or counsel with any information
        that the Company believes constitutes material non-public information, unless
        prior thereto such Purchaser shall have executed a written agreement regarding
        the confidentiality and use of such information. The Company understands
        and
        confirms that each Purchaser shall be relying on the foregoing representations
        in effecting transactions in securities of the Company.

       

      4.6 Use
        of Proceeds.

       

      The
        Company covenants and agrees that the proceeds from the sale of the Shares
        shall
        be used by the Company for repayment of outstanding debt and working capital
        and
        general corporate purposes; under no circumstances shall any portion of the
        proceeds be applied to:

       

      (i) the
        payment of dividends or other distributions on any capital stock of the Company;
        

       

      (ii) the
        purchase of debt or equity securities of any Person for cash, including the
        Company and its Subsidiaries, except in connection with investment of excess
        cash in high quality (A1/P1 or better) money market instruments having
        maturities of one year or less; 

       

      (iii) any
        expenditure not directly related to the business of the Company; or

       

      (iv) the
        redemption of any Company equity or equity-equivalent securities other than
        $13
        million of convertible debt securities outstanding as of the date of this
        Agreement.

       

      4.7 Reservation
        of Common Stock.

       

      The
        Company has reserved a sufficient number of shares of Common Stock for the
        purpose of enabling the Company to issue the Shares pursuant to this
        Agreement.

       

      4.8 Listing
        of Common Stock.
        

       

      The
        Company hereby agrees to use commercially reasonable efforts to maintain
        the
        listing of the Common Stock on a Trading Market or the OTC Bulletin Board,
        and,
        if required, as soon as reasonably practicable following the Closing to list
        the
        applicable Shares on such Trading Market or the OTC Bulletin Board.

       

      
        
          -
            -

          

          
          

        

        
          -
            22
            -

          
            

          

        

        
          
          

        

      

      

       

      4.10 Securities
        Law Compliance.

       

      (a) Securities
        Act.
        The
        Company shall timely prepare and file with the Securities and Exchange
        Commission the form of notice of the sale of securities pursuant to the
        requirements of Regulation D regarding the sale of the Shares under this
        Agreement.

       

      (b) State
        Securities Law Compliance.
        The
        Company shall timely prepare and file such applications, consents to service
        of
        process (but not including a general consent to service of process) and similar
        documents and take such other steps and perform such further acts as shall
        be
        required by the state securities law requirements of each jurisdiction where
        a
        Purchaser resides, as indicated on Schedule
        1
        hereto,
        with respect to the sale of the Shares under this Agreement. 

       

      ARTICLE
        V

       

      INDEMNIFICATION,
        TERMINATION AND DAMAGES

       

      5.1 Survival
        of Representations. 

       

      Except
        as
        otherwise provided herein, the representations and warranties of the Company
        and
        the Purchasers contained in or made pursuant to this Agreement shall survive
        the
        execution and delivery of this Agreement and the Closing Date and shall continue
        in full force and effect for a period of three (3) years from the Closing
        Date.
        The Company's and the Purchasers' warranties and representations shall in
        no way
        be affected or diminished in any way by any investigation of (or failure
        to
        investigate) the subject matter thereof made by or on behalf of the Company
        or
        the Purchasers.

       

      5.2 Indemnification.
         

       

      The
        Company agrees to indemnify and hold harmless the Purchasers, their Affiliates,
        each of their officers, directors, employees and agents and their respective
        successors and assigns, from and against any losses, damages, or expenses
        which
        are caused by or arise out of (i) any breach or default in the performance
        by
        the Company of any covenant or agreement made by the Company in the Transaction
        Documents; (ii) any breach of warranty or representation made by the Company
        in
        the Transaction Documents; and/or (iii) any and all third party actions,
        suits,
        proceedings, claims, demands, judgments, costs and expenses (including
        reasonable legal fees and expenses) incident to any of the
        foregoing.

       

      5.3 Indemnity
        Procedure. 

       

      A
        party
        or parties hereto agreeing to be responsible for or to indemnify against
        any
        matter pursuant to this Agreement is referred to herein as the "Indemnifying
        Party"
        and the
        other party or parties claiming indemnity is referred to as the "Indemnified
        Party".
        

       

      
        
          -
            -

          

          
          

        

        
          -
            23
            -

          
            

          

        

        
          
          

        

      

      An
        Indemnified Party under this Agreement shall, with respect to claims asserted
        against such party by any third party, give written notice to the Indemnifying
        Party of any liability which might give rise to a claim for indemnity under
        this
        Agreement within sixty (60) Business Days of the receipt of any written claim
        from any such third party, but not later than twenty (20) days prior to the
        date
        any answer or responsive pleading is due, and with respect to other matters
        for
        which the Indemnified Party may seek indemnification, give prompt written
        notice
        to the Indemnifying Party of any liability which might give rise to a claim
        for
        indemnity; provided,
        however,
        that
        any failure to give such notice will not waive any rights of the Indemnified
        Party except to the extent the rights of the Indemnifying Party are materially
        prejudiced.

       

      The
        Indemnifying Party shall have the right, at its election, to take over the
        defense or settlement of such claim by giving written notice to the Indemnified
        Party at least fifteen (15) days prior to the time when an answer or other
        responsive pleading or notice with respect thereto is required. If the
        Indemnifying Party makes such election, it may conduct the defense of such
        claim
        through counsel of its choosing (subject to the Indemnified Party's approval
        of
        such counsel, which approval shall not be unreasonably withheld or delayed),
        shall be solely responsible for the expenses of such defense and shall be
        bound
        by the results of its defense or settlement of the claim. The Indemnifying
        Party
        shall not settle any such claim without prior notice to and consultation
        with
        the Indemnified Party, and no such settlement involving any equitable relief
        or
        which might have an adverse effect on the Indemnified Party may be agreed
        to
        without the written consent of the Indemnified Party (which consent shall
        not be
        unreasonably withheld or delayed). So long as the Indemnifying Party is
        diligently contesting any such claim in good faith, the Indemnified Party
        may
        pay or settle such claim only at its own expense and the Indemnifying Party
        will
        not be responsible for the fees of separate legal counsel to the Indemnified
        Party, unless the named parties to any proceeding include both parties or
        representation of both parties by the same counsel would be inappropriate
        in the
        reasonable opinion of counsel to the Indemnified Party, due to conflicts
        of
        interest or otherwise. If the Indemnifying Party does not make such election,
        or
        having made such election does not, in the reasonable opinion of the Indemnified
        Party proceed diligently to defend such claim, then the Indemnified Party
        may
        (after written notice to the Indemnifying Party), at the expense of the
        Indemnifying Party, elect to take over the defense of and proceed to handle
        such
        claim in its discretion and the Indemnifying Party shall be bound by any
        defense
        or settlement that the Indemnified Party may make in good faith with respect
        to
        such claim. In connection therewith, the Indemnifying Party will fully cooperate
        with the Indemnified Party should the Indemnified Party elect to take over
        the
        defense of any such claim. The parties hereto agree to cooperate in defending
        such third party claims and the Indemnified Party shall provide such cooperation
        and such access to its books, records and properties (subject to the execution
        of appropriate non-disclosure agreements) as the Indemnifying Party shall
        reasonably request with respect to any matter for which indemnification is
        sought hereunder; and the parties hereto agree to cooperate with each other
        in
        order to ensure the proper and adequate defense thereof.

       

      
        
          -
            -

          

          
          

        

        
          -
            24
            -

          
            

          

        

        
          
          

        

      

      With
        regard to claims of third parties for which indemnification is payable
        hereunder, such indemnification shall be paid by the Indemnifying Party upon
        the
        earlier to occur of: (i) the entry of a judgment against the Indemnified
        Party
        and the expiration of any applicable appeal period, or if earlier, five (5)
        days
        prior to the date that the judgment creditor has the right to execute the
        judgment; (ii) the entry of an unappealable judgment or final appellate decision
        against the Indemnified Party; or (iii) a settlement of the claim.
        Notwithstanding the foregoing, the reasonable expenses of counsel to the
        Indemnified Party shall be reimbursed on a current basis by the Indemnifying
        Party. With regard to other claims for which indemnification is payable
        hereunder, such indemnification shall be paid promptly by the Indemnifying
        Party
        upon demand by the Indemnified Party.

       

      ARTICLE
        VI

       

      MISCELLANEOUS

       

      6.1 Entire
        Agreement.

       

      The
        Transaction Documents, together with the exhibits and schedules thereto,
        contain
        the entire understanding of the parties hereto with respect to the subject
        matter hereof and supersede all prior agreements and understandings, oral
        or
        written, with respect to such matters, which the parties hereto acknowledge
        have
        been merged into such documents, exhibits and schedules.

       

      6.2 Notices.

       

      Any
        and
        all notices or other communications or deliveries required or permitted to
        be
        provided hereunder shall be in writing and shall be deemed given and effective
        on the earliest of (a) the date of transmission, if such notice or communication
        is delivered via facsimile at the facsimile number specified on the signature
        pages attached hereto prior to 5:00 p.m. (New York City time) on a Trading
        Day,
        (b) the next Trading Day after the date of transmission, if such notice or
        communication is delivered via facsimile at the facsimile number on the
        signature pages attached hereto on a day that is not a Trading Day or later
        than
        5:00 p.m. (New York City time) on any Trading Day, (c) the Trading Day following
        the date of mailing, if sent by U.S. nationally recognized overnight courier
        service, or (d) upon actual receipt by the party hereto to whom such notice
        is
        required to be given. The address for such notices and communications shall
        be
        as follows:

       

      If
        to the
        Purchasers, at each Purchaser's address set forth under its name on Schedule
        1
        attached
        hereto, or with respect to the Company, addressed to: 

       

      ULURU
        Inc.

      4452
        Beltway Drive

      Addison,
        Texas 75001

      Attention:
        Kerry P. Gray

      Facsimile
        No.: (214) 905-5130

      
        
          -
            -

          

          
          

        

        
          -
            25
            -

          
            

          

        

        
          
          

        

      

      

      or
        to
        such other address or addresses or facsimile number or numbers as any such
        party
        hereto may most recently have designated in writing to the other parties
        hereto
        by such notice. Copies of notices to the Company shall be sent to:

       

      Bingham
        McCutchen LLP

      150
        Federal Street

      Boston,
        Massachusetts 02110

      Attention:
        John J. Concannon, III

      Facsimile
        No.: (617) 951-8736

      

      Copies
        of
        notices to any Purchaser shall be sent to the addresses, if any, listed on
        Schedule
        1
        attached
        hereto.

       

      6.3 Amendments;
        Waivers.
        

       

      No
        provision of this Agreement may be amended except in a written instrument
        signed
        by the Company and the Purchasers purchasing at least a majority of the Shares
        purchased under this Agreement (subject to proportionate adjustment for any
        stock dividend, stock split, combination of shares, reorganization,
        recapitalization, reclassification or other similar event affecting the Common
        Stock, occurring after the date hereof), provided that (i) any amendment
        that
        affects the rights hereunder of any Purchaser in an adverse manner different
        from the rights of the other Purchasers shall require the prior written consent
        of such Purchaser, and (ii) the Company may not pay any consideration to
        any
        Purchaser in connection with any such amendment unless it contemporaneously
        pays
        the same amount and type of consideration to all Purchasers. No provision
        of
        this Agreement may be waived except by the party hereto against whom enforcement
        of any such waiver is sought. No waiver of any default with respect to any
        provision, condition or requirement of this Agreement shall be deemed to
        be a
        continuing waiver in the future or a waiver of any subsequent default or
        a
        waiver of any other provision, condition or requirement hereof, nor shall
        any
        delay or omission of any party hereto to exercise any right hereunder in
        any
        manner impair the exercise of any such right.

       

      6.4 Construction.

       

      The
        headings herein are for convenience only, do not constitute a part of this
        Agreement and shall not be deemed to limit or affect any of the provisions
        hereof. The language used in this Agreement will be deemed to be the language
        chosen by the parties hereto to express their mutual intent, and no rules
        of
        strict construction will be applied against any party hereto.

       

      
        
          -
            -

          

          
          

        

        
          -
            26
            -

          
            

          

        

        
          
          

        

      

      

       

      6.5 Successors
        and Assigns.

       

      This
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their successors and permitted assigns. The Company may not assign this
        Agreement or any rights or obligations hereunder without the prior written
        consent of each Purchaser. Any Purchaser may assign any or all of its rights
        under this Agreement to any Person in accordance with the terms hereof, provided
        such transferee agrees in writing to be bound, with respect to the transferred
        Shares, by the provisions hereof that apply to the Purchasers. 

       

      6.6 No
        Third-Party Beneficiaries.

       

      This
        Agreement is intended for the benefit of the parties hereto and their respective
        successors and permitted assigns and is not for the benefit of, nor may any
        provision hereof be enforced by, any other Person, except as otherwise set
        forth
        in Article V. 

       

      6.7 Governing
        Law.

       

      All
        questions concerning the construction, validity, enforcement and interpretation
        of the Transaction Documents shall be governed by and construed and enforced
        in
        accordance with the internal laws of the State of New York, without regard
        to
        the principles of conflicts of law thereof. 

       

      6.8
         Jurisdiction;
        Venue; Service of Process.

       

      This
        Agreement shall be subject to the exclusive jurisdiction of the Federal District
        Court, Southern District of New York, and if such court does not have proper
        jurisdiction, the State Courts of New York County, New York. The parties
        hereto
        agree that any breach of any term or condition of this Agreement shall be
        deemed
        to be a breach occurring in the State of New York by virtue of a failure
        to
        perform an act required to be performed in the State of New York and irrevocably
        and expressly agree to submit to the jurisdiction of the Federal District
        Court,
        Southern District of New York, and if such court does not have proper
        jurisdiction, the State Courts of New York County, New York, for the purpose
        of
        resolving any disputes among the parties hereto relating to this Agreement
        or
        the transactions contemplated hereby. The parties hereto irrevocably waive,
        to
        the fullest extent permitted by law, any objection which they may now or
        hereafter have to the laying of venue of any suit, action or proceeding arising
        out of or relating to this Agreement, or any judgment entered by any court
        in
        respect hereof brought in New York County, New York, and further irrevocably
        waive any claim that any suit, action or proceeding brought in Federal District
        Court, Southern District of New York, and if such court does not have proper
        jurisdiction, the State Courts of New York County, New York, has been brought
        in
        an inconvenient forum. Each of the parties hereto consents to process being
        served in any such suit, action or proceeding, by mailing a copy thereof
        to such
        party at the address in effect for notices to it under this Agreement and
        agrees
        that such service shall constitute good and sufficient service of process
        and
        notice thereof. Nothing in this Section 6.8 shall affect or limit any right
        to
        serve process in any other manner permitted by law.

       

      
        
          -
            -

          

          
          

        

        
          -
            27
            -

          
            

          

        

        
          
          

        

      

      

       

      6.9
         Execution.

       

      This
        Agreement may be executed in counterparts, all of which when taken together
        shall be considered one and the same agreement and shall become effective
        when
        counterparts have been signed by each party hereto and delivered to the other
        parties hereto, it being understood that the parties hereto need not sign
        the
        same counterpart. In the event that any signature is delivered by facsimile
        transmission, such signature shall create a valid and binding obligation
        of the
        party executing (or on whose behalf such signature is executed) with the
        same
        force and effect as if such facsimile signature page were an original
        thereof.

       

      6.10 Severability.

       

      If
        any
        provision of this Agreement is held to be invalid or unenforceable in any
        respect, the validity and enforceability of the remaining terms and provisions
        of this Agreement shall not in any way be affected or impaired thereby and
        the
        parties hereto will attempt to agree upon a valid and enforceable provision
        that
        is a reasonable substitute therefor, and upon so agreeing, shall incorporate
        such substitute provision in this Agreement.

       

      6.11 Replacement
        of Share Certificates.

       

      If
        any
        certificate or instrument evidencing any Shares is mutilated, lost, stolen
        or
        destroyed, the Company shall issue or cause to be issued in exchange and
        substitution for and upon cancellation thereof, or in lieu of and substitution
        therefor, a new certificate or instrument, but only upon receipt of evidence
        reasonably satisfactory to the Company of such loss, theft or destruction
        and
        customary and reasonable indemnity, if requested by the Company.

       

      6.12 Remedies.

       

      In
        addition to being entitled to exercise all rights provided herein or granted
        by
        law, including recovery of damages, each of the Purchasers and the Company
        will
        be entitled to specific performance under the Transaction Documents. The
        parties
        hereto agree that monetary damages may not be adequate compensation for any
        loss
        incurred by reason of any breach of obligations described in the foregoing
        sentence and hereby agrees to waive in any action for specific performance
        of
        any such obligation the defense that a remedy at law would be
        adequate.

       

      
        
          -
            -

          

          
          

        

        
          -
            28
            -

          
            

          

        

        
          
          

        

      

      6.13 Payment
        Set Aside.

       

      To
        the
        extent that the Company makes a payment or payments to any Purchaser pursuant
        to
        any Transaction Document or a Purchaser enforces or exercises its rights
        thereunder, and such payment or payments or the proceeds of such enforcement
        or
        exercise or any part thereof are subsequently invalidated, declared to be
        fraudulent or preferential, set aside, recovered from, disgorged by or are
        required to be refunded, repaid or otherwise restored to the Company, a trustee,
        receiver or any other person under any law (including, without limitation,
        any
        bankruptcy law, state or federal law, common law or equitable cause of action),
        then to the extent of any such restoration the obligation or part thereof
        originally intended to be satisfied shall, to the extent permissible under
        applicable law, be revived and continued in full force and effect as if such
        payment had not been made or such enforcement or setoff had not
        occurred.

       

      6.14 Independent
        Nature of Purchasers' Obligations and Rights.
        

       

      The
        obligations of each Purchaser under any Transaction Document are several
        and not
        joint with the obligations of any other Purchaser, and no Purchaser shall
        be
        responsible in any way for the performance of the obligations of any other
        Purchaser under any Transaction Document. Nothing contained herein or in
        any
        Transaction Document, and no action taken by any Purchaser pursuant thereto,
        shall be deemed to constitute the Purchasers as a partnership, an association,
        a
        joint venture or any other kind of entity, or create a presumption that the
        Purchasers are in any way acting in concert or as a group with respect to
        such
        obligations or the transactions contemplated by the Transaction Documents.
        Each
        Purchaser shall be entitled to independently protect and enforce its rights,
        including, without limitation, the rights arising out of the Transaction
        Documents, and it shall not be necessary for any other Purchaser to be joined
        as
        an additional party in any proceeding for such purpose. 

       

      6.15 Waiver
        of Trial by Jury. 

       

      THE
        PARTIES HERETO IRREVOCABLY WAIVE TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING
        RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

       

      6.16 Further
        Assurances. 

       

      Each
        party hereto agrees to cooperate fully with the other parties hereto and
        to
        execute such further instruments, documents and agreements and to give such
        further written assurances as may be reasonably requested by any other party
        hereto to better evidence and reflect the transactions described herein and
        contemplated hereby and to carry into effect the intents and purposes of
        this
        Agreement, and further agrees to take promptly, or cause to be taken, all
        actions, and to do promptly, or cause to be done, all things necessary, proper
        or advisable under applicable law to consummate and make effective the
        transactions contemplated hereby, to obtain all necessary waivers, consents
        and
        approvals, to effect all necessary registrations and filings, and to remove
        any
        injunctions or other impediments or delays, legal or otherwise, in order
        to
        consummate and make effective the transactions contemplated by this Agreement
        for the purpose of securing to the parties hereto the benefits contemplated
        by
        this Agreement.

       

      

       

      

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        date
        first above written.

       

      COMPANY:

       

      ULURU
        INC.

      

      

      By:
        /s/
        Kerry P. Gray 

      Name:
        Kerry P. Gray

      Title:
        President & Chief Executive Officer

      

      PURCHASERS:

      

      

      [Purchasers'
        signatures appear on following pages]

      

      

      

      
        
          
            

          

          
          

        

        
          -
            29
            -

          
            

          

        

        
          
          

          
          

        

      

      PURCHASERS:

      

      BRENCOURT
        ADVISORS LLC

      

      

      By:_/s/
        Michael Palm  ________________________

      Name:
        Michael Palm

      Title:
        CFO

      

      

      CHILTON
        PRIVATE EQUITY PARTNERS I, LLC

      By:
        CHILTON
        INVESTMENT COMPANY, LLC

      General
        Partner

      

      By:_/s/
        Patricia Mallon   _____________

      Name:
        Patricia Mallon

      Title:
        Executive Vice President

      

      

      CHILTON
        SMALL CAP PARTNERS, LP

      By:
        CHILTON
        INVESTMENT COMPANY, LLC

      General
        Partner

      

      By:_/s/
        Patricia Mallon   _____________

      Name:
        Patricia Mallon

      Title:
        Executive Vice President

      

      

      CHILTON
        SMALL CAP INTERNATIONAL, LP

      By:
        CHILTON
        INVESTMENT COMPANY, LLC

      General
        Partner

      

      By:_/s/
        Patricia Mallon   _____________

      Name:
        Patricia Mallon

      Title:
        Executive Vice President

      

      

      CORNELL
        CAPITAL PARTNERS, LP

      By:
        Yorkville Advisors, LLC, its General Partner

      

      

      By:_/s/
        Mark Angelo  ________________________

      Name:
        Mark Angelo

      Title:
        Portfolio Manager

      

      

      

      INVUS
        PUBLIC EQUITIES L.P.

      

      

      By:_/s/
        Khalil Barrage  ________________________

      Name:
        Khalil Barrage

      Title:
        Vice President

      

      

      JANA
        PIRANHA MASTER FUND, LTD.

      By:
        JANA
        Partners LLC, its investment advisor

      

      

      By:_/s/
        Mark Lehmann ________________________

      Name:
        Mark Lehmann

      Title:
        Partner

      

      

      OSCAR
        S. SCHAFER & PARTNERS I, LP

      

      

      By:_/s/
        Oscar S. Schafer ________________________

      Name:
        Oscar S. Schafer

      Title:
        Senior Managing Member of OSS Advisors LLC, General Partner

      

      

      OSCAR
        S. SCHAFER & PARTNERS II, LP

      

      

      By:_/s/
        Oscar S. Schafer ________________________

      Name:
        Oscar S. Schafer

      Title:
        Senior Managing Member of OSS Advisors LLC, General Partner

      

      

      OSS
        OVERSEAS LTD

      

      

      By:_/s/
        Oscar S. Schafer ________________________

      Name:
        Oscar S. Schafer

      Title:
        Senior Managing Member of Schafer Brothers LLC, General Partner 

      of
        OSS
        Capital Management LP Investment Manager

      

      

      

      

      

      

      

      PEQUOT
        HEALTHCARE FUND, L.P.

      By:
        PEQUOT
        CAPITAL MANAGEMENT, INC

      Investment
        Manager

      

      By:_/s/
        Daniel Fishbone ________________________

      Name:
        Daniel Fishbone

      Title:
        CFO

      

      

      PEQUOT
        HEALTHCARE OFFSHORE FUND, INC.

      By:
        PEQUOT
        CAPITAL MANAGEMENT, INC

      Investment
        Manager

      

      By:_/s/
        Daniel Fishbone ________________________

      Name:
        Daniel Fishbone

      Title:
        CFO

      

      

      PEQUOT
        DIVERSIFIED MASTER FUND, LTD

      By:
        PEQUOT
        CAPITAL MANAGEMENT, INC

      Investment
        Manager

      

      By:_/s/
        Daniel Fishbone ________________________

      Name:
        Daniel Fishbone

      Title:
        CFO

      

      

      PEQUOT
        HEALTHCARE INSTITUTIONAL FUND, L.P.

      By:
        PEQUOT
        CAPITAL MANAGEMENT, INC

      Investment
        Manager

      

      By:_/s/
        Daniel Fishbone ________________________

      Name:
        Daniel Fishbone

      Title:
        CFO

      

      

      PREMIUM
        SERIES PCC LIMITED -CELL 32

      

      

      By:_/s/
        Chris T. Mueller ________________________

      Name:
        Chris T. Mueller

      Title:
        Attorney in Fact

      

      

      

      

      

      PRENOX,
        LLC

      By:
        Prentice Capital Management, LP, as Manager

      

      

      By:__/s/
        Matthew Hoffman________________________

      Name:
        Matthew Hoffman

      Title:
        General Counsel

      

      

      WITCHES
        ROCK PORTFOLIO LTD

      By:
        Tudor
        Investment Corporation, Investment Advisor

      

      

      By:_/s/
        Stephen N. Waldman________________________

      Name:
        Stephen N. Waldman

      Title:
        Managing Director

      

      THE
        TUDOR BVI GLOBAL PORTFOLIO LTD.

      By:
        Tudor
        Investment Corporation, Trading Advisor

      

      

      By:_/s/
        Stephen N. Waldman________________________

      Name:
        Stephen N. Waldman

      Title:
        Managing Director

      

      

      TUDOR
        PROPRIETARY TRADING, L.L.C.

      

      

      By:_/s/
        Stephen N. Waldman________________________

      Name:
        Stephen N. Waldman

      Title:
        Managing Director

      

      

      
        
          
            

          

          
          

        

        
          -
            30
            -

          
            

          

        

        
          
          

          
          

        

      

      

      Schedule
        1

       

      Purchasers
        and Shares

       

      
        	
                Name,
                  Address and Facsimile Number

                of
                  Purchaser

                 

              	
                Shares

                 

              	
                Subscription
                  Amount

                 

              
	
                Brencourt
                  Advisors LLC

                600
                  Lexington Avenue

                New
                  York, NY 10022

                Attention:
                  William Collins and Seth   Yellin

                Facsimile:
                  212-313-9781

              	
                7,894,736

                 

              	
                $7,499,999.20

                 

              
	
                Chilton
                  Private Equity Partners I, LLC

                Chilton
                  Small Cap International, L.P.

                Chilton
                  Small Cap Partners, L.P.

                c/o
                  Chilton Investment Company, LLC

                1266
                  East Main Street, 7th Floor

                Stamford,
                  CT 06902

                Attention:
                  Evelyn Dametta

                Facsimile:
                  203-352-4035

              	
                526,316

                1,357,797

                1,273,782

              	
                $500,000.20

                $1,289,907.15

                $1,210,092.90

              
	
                Cornell
                  Capital Partners, LP

                101
                  Hudson Street, Suite 3700

                Jersey
                  City, NJ 07302

                Attention:
                  David Fine

                Facsimile:
                  201-985-8266 

              	
                1,263,157

              	
                $1,200,000.00

              
	
                Invus
                  Public Equities L.P.

                750
                  Lexington Avenue, 30th Floor

                New
                  York, NY 10022

                Attention:
                  Jessica Bennett

                Facsimile:
                  212-317-7530

              	
                1,052,631

                 

              	
                $999,999.55

                 

              
	
                JANA
                  Piranha Master Fund, Ltd.

                c/o
                  JANA Partners LLC

                200
                  Park Avenue, Suite 3300

                New
                  York, NY 10166

                Attention:
                  General Counsel

                Facsimile:
                  212-692-7695

              	
                7,368,421

              	
                $6,999,999.95

              
	
                Oscar
                  S. Schafer & Partners I, LP

                Oscar
                  S. Schafer & Partners II, LP

                OSS
                  Overseas LTD

                598
                  Madison Avenue, 10th Floor

                New
                  York, NY 10022

                Attention:
                  Oscar S. Schafer

                Facsimile:
                  212-756-8701

              	
                414,782

                4,533,603

                5,577,930

              	
                $394,042.90

                $4,306,922.85

                $5,299,033.50

              
	
                Pequot
                  Healthcare Fund, L.P.

                Pequot
                  Healthcare Offshore Fund, Inc.

                Pequot
                  Diversified Master Fund, Ltd.

                Pequot
                  Healthcare Institutional Fund, L.P.

                Premium
                  Series PCC Limited -- Cell 32

                c/o
                  Pequot Capital Management, Inc.

                500
                  Nyala Farm Road

                Westport,
                  CT 06880

                Attention:
                  Amber Tencic

                Facsimile:
                  203-557-5551

              	
                3,243,625

                2,502,587

                447,315

                601,698

                573,196

              	
                $3,081,443.75

                $2,377,457.65

                $424,949.25

                $571,613.10

                $544,536.20

              
	
                Prenox,
                  LLC

                623
                  Fifth Avenue, 32nd Floor

                New
                  York, NY 10022

                Attention:
                  Matthew Hoffman

                Facsimile:
                  212-756-1480

              	
                5,263,157

                 

              	
                $5,000,000.00

                 

              
	
                Witches
                  Rock Portfolio Ltd.

                The
                  Tudor BVI Global Portfolio Ltd.

                Tudor
                  Proprietary Trading, L.L.C.

                c/o
                  Tudor Investment Corporation

                50
                  Rowes Wharf, 6th Floor

                Boston,
                  MA 02110

                Attention:
                  William T. Flaherty

                Facsimile:
                  617-737-9280

              	
                2,529,022

                408,768

                220,105

              	
                $2,402,570.90

                $388,329.60

                $209,099.75

              
	
                 

                Total:

              	
                47,052,628

                 

              	
                $44,699,998.40

                 

              

      

      

       

      

      
        
          
            

          

          
          

        

        
          -
            31
            -

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        A

      

      Escrow
        Agreement

      

      

      
        
          
            

          

          
          

        

        
          -
            32
            -

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        B

      

      Investor
        Rights Agreement

      

      

      
        
          
            

          

          
          

        

        
          -
            33
            -

          
            

          

        

        
          
          

          
          

        

      

      Exhibit
        C

      

      Legal
        Opinion

       

      
        
          
          

        

        
          -
            34
            -Investor Rights Agreement

     

    
      

      

    

     

    Exhibit
      10.24

    

    INVESTOR
      RIGHTS AGREEMENT

     

     

    This
      Investor Rights Agreement (this "Agreement") is made and entered into as of
      December 6, 2006, by and among ULURU Inc., a Nevada corporation (the "Company"),
      and each of the purchasers executing this Agreement and listed on Schedule
      1
      attached
      hereto (collectively, the "Purchasers"). 

     

    This
      Agreement is being entered into pursuant to the Common Stock Purchase Agreement,
      dated as of the date hereof, by and among the Company and the Purchasers (the
      "Purchase Agreement").

     

    The
      Company and the Purchasers hereby agree as follows: 

     

    1. Definitions.

     

    Capitalized
      terms used and not otherwise defined herein shall have the meanings given such
      terms in the Purchase Agreement. As used in this Agreement, the following terms
      shall have the following meanings: 

     

    "Advice"
      shall
      have the meaning set forth in Section 3(m). 

     

    "Affiliate"
      means,
      with respect to any Person, any other Person that directly or indirectly
      controls or is controlled by or under common control with such Person. For
      the
      purposes of this definition, "control," when used with respect to any Person,
      means the possession, direct or indirect, of the power to direct or cause the
      direction of the management and policies of such Person, whether through the
      ownership of voting securities, by contract or otherwise; and the terms of
      "affiliated," "controlling" and "controlled" have meanings correlative to the
      foregoing.

     

    "Blackout
      Period"
      shall
      have the meaning set forth in Section 3(n).

     

    "Board"
      shall
      have the meaning set forth in Section 3(n). 

     

    "Business
      Day"
      means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or a
      day on which banking institutions in the State of New York generally are
      authorized or required by law or other government actions to close.

     

    "Commission"
      means
      the Securities and Exchange Commission. 

     

    "Common
      Stock"
      means
      the Company's Common Stock, par value $0.001 per share.

     

    "Effectiveness
      Deadline"
      means
      the date that is one hundred eighty (180) days after the Closing
      Date.

     

    "Effectiveness
      Period"
      shall
      have the meaning set forth in Section 2.

     

    "Event"
      shall
      have the meaning set forth in Section 7(e). 

     

    
      
         

      

      
        -
          1
          -

        
          

        

      

      
         

      

    

    

     

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

     

    "Filing
      Date"
      means
      the 10th day following the Closing Date.

     

    "Holder"
      or
      "Holders"
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities, including without limitation the Purchasers and their assignees.
      

     

    "Indemnified
      Party"
      shall
      have the meaning set forth in Section 5(c).

     

    "Indemnifying
      Party"
      shall
      have the meaning set forth in Section 5(c).

     

    "Losses"
      shall
      have the meaning set forth in Section 5(a). 

     

    "Person"
      means
      an individual or a corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, limited liability company, joint
      stock company, government (or an agency or political subdivision thereof) or
      other entity of any kind.

     

    "Proceeding"
      means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened. 

     

    "Prospectus"
      means
      the prospectus included in any Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by any prospectus supplement, with respect to the terms of the offering of
      any
      portion of the Registrable Securities covered by such Registration Statement,
      and all other amendments and supplements to the Prospectus, including
      post-effective amendments, and all material incorporated by reference in such
      Prospectus.

     

    "Purchased
      Shares"
      means
      the shares of Common Stock purchased by the Purchasers pursuant to the Purchase
      Agreement.

     

    
      
         

      

      
        -
          2
          -

        
          

        

      

      
         

      

    

    "Registrable
      Securities"
      means
      (a) the Purchased Shares (without regard to any limitations on beneficial
      ownership contained in the Purchase Agreement) or other securities issued or
      issuable to each Purchaser or its transferee or designee (i) upon any
      distribution with respect to, any exchange for or any replacement of such
      Purchased Shares or (ii) upon any conversion, exercise or exchange of any
      securities issued in connection with any such distribution, exchange or
      replacement; (b) securities issued or issuable upon any stock split, stock
      dividend, recapitalization or similar event with respect to the foregoing;
      (c)
      shares of Common Stock issuable upon exercisable of any warrants to purchase
      Common Stock held by the Purchasers as of the date hereof; and (d) any other
      security issued as a dividend or other distribution with respect to, in exchange
      for, in replacement or redemption of, or in reduction of the liquidation value
      of, any of the securities referred to in the preceding clauses; provided,
      however, that such securities shall cease to be Registrable Securities when
      such
      securities have been sold to or through a broker or dealer or underwriter in
      a
      public distribution or a public securities transaction or when such securities
      may be sold without any restriction pursuant to Rule 144(k) as determined by
      the
      counsel to the Company pursuant to a written opinion letter, addressed to the
      Company's transfer agent to such effect as described in Section 2 of this
      Agreement.

     

    "Registration
      Statement"
      means
      the registration statements and any additional registration statements
      contemplated by Section 2, including (in each case) the Prospectus, amendments
      and supplements to such registration statement or Prospectus, including pre-
      and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference in such registration statement.

     

    "Rule
      144"
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Rule
      158"
      means
      Rule 158 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended. 

     

    
      
         

      

      
        -
          3
          -

        
          

        

      

      
         

      

    

    2. Registration.
      On or
      prior to the Filing Date, the Company shall prepare and file with the Commission
      a "shelf" Registration Statement covering all Registrable Securities for a
      secondary or resale offering to be made on a continuous basis pursuant to Rule
      415. The Registration Statement shall be on Form SB-2 (or if such form is not
      available to the Company on another form appropriate for such registration
      in
      accordance herewith). The Company shall use its commercially reasonable efforts
      to cause the Registration Statement to be declared effective under the
      Securities Act not later than the Effectiveness Deadline (including filing
      with
      the Commission a request for acceleration of effectiveness in accordance with
      Rule 461 promulgated under the Securities Act within five (5) Business Days
      of
      the date that the Company is notified (orally or in writing, whichever is
      earlier) by the Commission that a Registration Statement will not be "reviewed,"
      or not be subject to further review) and to keep such Registration Statement
      continuously effective under the Securities Act until such date as is the
      earlier of (x) the date when all Registrable Securities covered by such
      Registration Statement have been sold or (y) with respect to each such Holder,
      such time as all Registrable Securities held by such Holder may be sold without
      any restriction pursuant to Rule 144(k) as determined by the counsel to the
      Company pursuant to a written opinion letter, addressed to the Company's
      transfer agent to such effect (the "Effectiveness Period"). Such Registration
      Statement also shall cover, to the extent allowable under the Securities Act
      and
      the Rules promulgated thereunder (including Securities Act Rule 416), such
      indeterminate number of additional shares of Common Stock resulting from stock
      splits, stock dividends or similar transactions with respect to the Registrable
      Securities.

     

    3. Registration
      Procedures.

     

    In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     

    (a) Prepare
      and file with the Commission on or prior to the Filing Date, a Registration
      Statement on Form SB-2 (or if such form is not available to the Company on
      another form appropriate for such registration in accordance herewith) (which
      shall include a Plan of Distribution substantially in the form of Exhibit
      A
      attached
      hereto), and cause the Registration Statement to become effective and remain
      effective as provided herein; provided, however, that not less than three (3)
      Business Days prior to the filing of the Registration Statement or any related
      Prospectus or any amendment or supplement thereto, the Company shall (i) furnish
      to counsel selected by Holders of at least a majority of the then outstanding
      Registrable Securities held by the Holders copies of all such documents proposed
      to be filed, and (ii) at the request of any Holder cause its officers and
      directors, counsel and independent certified public accountants to respond
      to
      such inquiries as shall be necessary, in the reasonable opinion of such counsel,
      to conduct a reasonable investigation within the meaning of the Securities
      Act.
      The Company shall not file the Registration Statement or any such Prospectus
      or
      any amendments or supplements thereto to which the Holders of at least a
      majority of the then outstanding Registrable Securities held by the Holders
      or
      counsel selected by Holders of at least a majority of the then outstanding
      Registrable Securities held by the Holders shall reasonably object within three
      (3) Business Days after their receipt thereof. In the event of any such
      objection, the Holders shall provide the Company with any requested revisions
      to
      such Prospectus or amendment or supplement within two (2) Business Days of
      such
      objection.

    
      
         

      

       

      
        -
          4
          -

        
          

        

      

      
         

      

    

     

     

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement as may be necessary to keep the
      Registration Statement continuously effective as to the applicable Registrable
      Securities for the Effectiveness Period and to the extent any Registrable
      Securities are not included in such Registration Statement for reasons other
      than the failure of the Holder to comply with Section 3(m) hereof, shall prepare
      and file with the Commission such amendments to the Registration Statement
      or
      such additional Registration Statements in order to register for resale under
      the Securities Act all Registrable Securities; (ii) cause the related Prospectus
      to be amended or supplemented by any required Prospectus supplement, and as
      so
      supplemented or amended to be filed pursuant to Rule 424 (or any similar
      provisions then in force) promulgated under the Securities Act; (iii) respond
      as
      promptly as reasonably practicable to any comments received from the Commission
      with respect to the Registration Statement or any amendment thereto and as
      promptly as reasonably practicable provide the Holders true and complete copies
      of all correspondence from and to the Commission relating to the Registration
      Statement; and (iv) comply in all material respects with the provisions of
      the
      Securities Act and the Exchange Act with respect to the disposition of all
      Registrable Securities covered by the Registration Statement during the
      applicable period in accordance with the intended methods of disposition by
      the
      Holders thereof set forth in the Registration Statement as so amended or in
      such
      Prospectus as so supplemented.

     

    (c) Notify
      Holders of Registrable Securities to be sold as promptly as reasonably
      practicable (A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to the Registration Statement is proposed to be filed (but in no
      event
      in the case of this subparagraph (A), less than three (3) Business Days prior
      to
      date of such filing); (B) when the Commission notifies the Company whether
      there
      will be a "review" of such Registration Statement and whenever the Commission
      comments in writing on such Registration Statement; and (C) with respect to
      the
      Registration Statement or any post-effective amendment, when the same has become
      effective, and after the effectiveness thereof: (i) of any request by the
      Commission or any other Federal or state governmental authority for amendments
      or supplements to the Registration Statement or Prospectus or for additional
      information; (ii) of the issuance by the Commission of any stop order suspending
      the effectiveness of the Registration Statement covering any or all of the
      Registrable Securities or the initiation of any Proceedings for that purpose;
      (iii) of the receipt by the Company of any notification with respect to the
      suspension of the qualification or exemption from qualification of any of the
      Registrable Securities for sale in any jurisdiction, or the initiation or
      threatening of any Proceeding for such purpose; and (iv) if the financial
      statements included in the Registration Statement become ineligible for
      inclusion therein or of the occurrence of any event that makes any statement
      made in the Registration Statement or Prospectus or any document incorporated
      or
      deemed to be incorporated therein by reference untrue in any material respect
      or
      that requires any revisions to the Registration Statement, Prospectus or other
      documents so that, in the case of the Registration Statement or the Prospectus,
      as the case may be, it will not contain any untrue statement of a material
      fact
      or omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading. Without limitation to any remedies to which the
      Holders may be entitled under this Agreement, if any of the events described
      in
      Section 3(c)(C)(i), 3(c)(C)(ii) and 3(c)(C)(iii) occur, the Company shall use
      its commercially reasonable efforts to respond to and correct the
      event.

     

    (d) Use
      its
      commercially reasonable efforts to avoid the issuance of, or, if issued, use
      commercially reasonable efforts to obtain the withdrawal of, (i) any order
      suspending the effectiveness of the Registration Statement or (ii) any
      suspension of the qualification (or exemption from qualification) of any of
      the
      Registrable Securities for sale in any jurisdiction, at the earliest practicable
      time. 

     

    (e) If
      requested by any Holder of Registrable Securities, (i) promptly incorporate
      in a
      Prospectus supplement or post-effective amendment to the Registration Statement
      such information as the Company reasonably agrees should be included therein
      and
      (ii) make all required filings of such Prospectus supplement or such
      post-effective amendment as soon as reasonably practicable after the Company
      has
      received notification of the matters to be incorporated in such Prospectus
      supplement or post-effective amendment.

     

    (f) Furnish
      to each Holder, without charge, at least one conformed copy of each Registration
      Statement and each amendment thereto, including financial statements and
      schedules, and all exhibits to the extent requested by such Person (including
      those previously furnished or incorporated by reference) promptly after the
      filing of such documents with the Commission.

     

    (g) Promptly
      deliver to each Holder, without charge, as many copies of the Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request; and the Company
      hereby consents to the use of such Prospectus and each amendment or supplement
      thereto by each of the selling Holders in connection with the offering and
      sale
      of the Registrable Securities covered by such Prospectus and any amendment
      or
      supplement thereto. 

     

    (h) Prior
      to
      any public offering of Registrable Securities, use its commercially reasonable
      efforts to register or qualify or cooperate with the selling Holders in
      connection with the registration or qualification (or exemption from such
      registration or qualification) of such Registrable Securities for offer and
      sale
      under the securities or Blue Sky laws of such jurisdictions within the United
      States as any Holder requests in writing, to keep each such registration or
      qualification (or exemption therefrom) effective during the Effectiveness Period
      and to do any and all other acts or things necessary or advisable to enable
      the
      disposition in such jurisdictions of the Registrable Securities covered by
      a
      Registration Statement; provided, however, that the Company shall not be
      required to qualify generally to do business in any jurisdiction where it is
      not
      then so qualified or to take any action that would subject it to general service
      of process in any jurisdiction where it is not then so subject or subject the
      Company to any material tax in any such jurisdiction where it is not then so
      subject.

     

    
      
         

      

      
        -
          5
          -

        
          

        

      

      
         

      

    

    

     

    (i) Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be sold pursuant to the
      Registration Statement, which certificates shall be free, to the extent
      permitted by applicable law and the Purchase Agreement, of all restrictive
      legends, and to enable such Registrable Securities to be in such denominations
      and registered in such names as any Holder may request at least five (5)
      Business Days prior to any sale of Registrable Securities. In connection
      therewith, the Company shall promptly after the effectiveness of the
      Registration Statement cause an opinion of counsel to be delivered to and
      maintained with its transfer agent, together with any other authorizations,
      certificates and directions required by the transfer agent, which authorize
      and
      direct the transfer agent to issue such Registrable Securities without legend
      upon sale by the Holder of such shares of Registrable Securities under the
      Registration Statement.

     

    (j) Following
      the occurrence of any event contemplated by Section 3(c)(C)(iv), as promptly
      as
      possible, prepare a supplement or amendment, including a post-effective
      amendment, to the Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference, and file any other required document so that, as thereafter
      delivered, neither the Registration Statement nor such Prospectus will contain
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading. 

     

    (k) Cause
      all
      Registrable Securities relating to the Registration Statement to be listed
      on
      any United States securities exchange, quotation system, market or
      over-the-counter bulletin board on which similar securities issued by the
      Company are then listed. 

     

    (l) Comply
      in
      all material respects with all applicable rules and regulations of the
      Commission and make generally available to its security holders earnings
      statements satisfying the provisions of Section 11(a) of the Securities Act
      and
      Rule 158 not later than 45 days after the end of any 3-month period (or 90
      days
      after the end of any 12-month period if such period is a fiscal year) commencing
      on the first day of the first fiscal quarter of the Company after the effective
      date of the Registration Statement, which statement shall conform to the
      requirements of Rule 158.

     

    (m) Request
      each selling Holder to furnish to the Company information regarding such Holder
      and the distribution of such Registrable Securities as is required by law or
      the
      Commission to be disclosed in the Registration Statement, and the Company may
      exclude from such registration the Registrable Securities of any such Holder
      who
      fails to furnish such information to the extent that such information is so
      requested within a reasonable time prior to (but in no event less than 3
      Business Days prior to) the filing of each Registration Statement, supplemented
      Prospectus and/or amended Registration Statement.

     

    
      
         

      

      
        -
          6
          -

        
          

        

      

      
         

      

    

     

    If
      the
      Registration Statement refers to any Holder by name or otherwise as the holder
      of any securities of the Company, then such Holder shall have the right to
      require (if such reference to such Holder by name or otherwise is not required
      by the Securities Act or any similar federal statute then in force) the deletion
      of the reference to such Holder in any amendment or supplement to the
      Registration Statement filed or prepared subsequent to the time that such
      reference ceases to be required.

     

    (n) Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c)(C)(i), 3(c)(C)(ii), 3(c)(C)(iii), 3(c)(C)(iv), or
      3(o), such Holder will forthwith discontinue disposition of such Registrable
      Securities under the Registration Statement until such Holder's receipt of
      the
      copies of the supplemented Prospectus and/or amended Registration Statement
      contemplated by Section 3(j), or until it is advised in writing (the "Advice")
      by the Company that the use of the applicable Prospectus may be resumed, and,
      in
      either case, has received copies of any additional or supplemental filings
      that
      are incorporated or deemed to be incorporated by reference in such Prospectus
      or
      Registration Statement; provided, that, notwithstanding the foregoing provisions
      of this Section 3(n), the Holders shall not be prohibited from selling
      Registrable Securities under the Registration Statement as a result of any
      event
      of the kind described in this Section 3(n) for more than an aggregate of 90
      days
      in any 12-month period.

     

    (o) If
      (i)
      there is material non-public information regarding the Company which the
      Company's Board of Directors (the "Board") reasonably determines not to be
      in
      the Company's best interest to disclose and which the Company is not otherwise
      required to disclose, or (ii) there is a significant business opportunity
      (including, but not limited to, the acquisition or disposition of assets (other
      than in the ordinary course of business) or any merger, consolidation, tender
      offer or other similar transaction) available to the Company which the Board
      reasonably determines not to be in the Company's best interest to disclose
      and
      which the Company would be required to disclose under the Registration
      Statement, then the Company may (i) postpone or suspend filing or effectiveness
      of a Registration Statement or (ii) notify the Holders that the Registration
      Statement may not be used in connection with any sales of the Company’s
      securities, in each case, for a period not to exceed 30 consecutive days,
      provided that the Company may not postpone or suspend its obligation under
      this
      Section 3(o) for more than 90 days in the aggregate during any 12 month period
      (each, a "Blackout Period").

     

    4. Registration
      Expenses.

     

    All
      fees
      and expenses incident to the performance of or compliance with this Agreement
      by
      the Company shall be borne by the Company whether or not the Registration
      Statement is filed or becomes effective and whether or not any Registrable
      Securities are sold pursuant to the Registration Statement. The fees and
      expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with each
      securities exchange, quotation system, market or over-the-counter bulletin
      board
      on which Registrable Securities are required hereunder to be listed, (B) with
      respect to filings required to be made with the Commission, and (C) in
      compliance with state securities or Blue Sky laws, (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities and of printing or photocopying prospectuses), (iii)
      messenger, telephone and delivery expenses, (iv) Securities Act liability
      insurance, if the Company so desires such insurance, (v) fees and expenses
      of
      all other Persons retained by the Company in connection with the consummation
      of
      the transactions contemplated by this Agreement, including, without limitation,
      the Company's independent public accountants (including, in the case of an
      underwritten offering, the expenses of any comfort letters or costs associated
      with the delivery by independent public accountants of a comfort letter or
      comfort letters) and legal counsel, and (vi) reasonable and documented fees
      and
      expenses of counsel selected by Holders of at least a majority of the then
      outstanding Registrable Securities held by the Holders in connection with any
      Registration Statement hereunder, not to exceed $5,000 in the aggregate. In
      addition, the Company shall be responsible for all of its internal expenses
      incurred in connection with the consummation of the transactions contemplated
      by
      this Agreement (including, without limitation, all salaries and expenses of
      its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit, the fees and expenses incurred in connection with the listing
      of the Registrable Securities on any securities exchange as required
      hereunder.

     

    5. Indemnification.

     

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, brokers (including
      brokers who offer and sell Registrable Securities as principal as a result
      of a
      pledge or any failure to perform under a margin call of Common Stock),
      investment advisors and employees of each of them, each Person who controls
      any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, costs of preparation and reasonable attorneys'
      fees) and expenses (collectively, "Losses"), as incurred, arising out of or
      relating to any untrue or alleged untrue statement of a material fact contained
      or incorporated by reference in the Registration Statement, any Prospectus
      or
      any form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      amendment or supplement thereto, in the light of the circumstances under which
      they were made) not misleading, except to the extent, but only to the extent,
      that (i) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished to the Company by such Holder for use therein,
      which information was reasonably relied on by the Company for use therein or
      to
      the extent that such information relates to (x) such Holder and was reviewed
      and
      approved by such Holder expressly for use in the Registration Statement, such
      Prospectus or such form of prospectus or in any amendment or supplement thereto
      or (y) such Holder's proposed method of distribution of Registrable Securities
      as set forth in Exhibit
      A
      (or as
      such Holder otherwise informs the Company in writing); or (ii) in the case
      of an
      occurrence of an event of the type described in Section 3(c)(C)(ii),
      3(c)(C)(iii), 3(c)(C)(iv) or 3(o), the use by a Holder of an outdated or
      defective Prospectus after the delivery to the Holder of written notice from
      the
      Company that the Prospectus is outdated or defective and prior to the receipt
      by
      such Holder of the amended or supplemented Prospectus or the Advice contemplated
      in Section 3(n), but only if and to the extent that following receipt of the
      amended or supplemented Prospectus or the Advice the misstatement or omission
      giving rise to such Loss would have been corrected; provided, however, that
      the
      indemnity agreement contained in this Section 5(a) shall not apply to amounts
      paid in settlement of any Losses if such settlement is effected without the
      prior written consent of the Company, which consent shall not be unreasonably
      withheld. The Company shall notify the Holders promptly of the institution,
      threat or assertion of any Proceeding of which the Company is aware in
      connection with the transactions contemplated by this Agreement. Such indemnity
      shall remain in full force and effect regardless of any investigation made
      by or
      on behalf of an Indemnified Party (as defined in Section 5(c) to this Agreement)
      and shall survive the transfer of the Registrable Securities by the
      Holders.

     

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents and employees
      of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising solely out of or based solely
      upon any untrue statement of a material fact contained in the Registration
      Statement, any Prospectus, or any form of prospectus, or in any amendment or
      supplement thereto, or arising solely out of or based solely upon any omission
      of a material fact required to be stated therein or necessary to make the
      statements therein (in the case of any Prospectus or form of prospectus or
      supplement thereto, in the light of the circumstances under which they were
      made) not misleading, to the extent, but only to the extent, that (i) such
      untrue statement or omission is contained in or omitted from any information
      so
      furnished by such Holder to the Company specifically for inclusion in the
      Registration Statement or such Prospectus and that such information was
      reasonably relied upon by the Company for use in the Registration Statement,
      such Prospectus, or in any amendment or supplement thereto, or to the extent
      that such information relates to (x) such Holder and was reviewed and approved
      by such Holder expressly for use in the Registration Statement, such Prospectus,
      or such form of prospectus or in any amendment or supplement thereto or (y)
      such
      Holder's proposed method of distribution of Registrable Securities as set forth
      in Exhibit
      A
      (or as
      such Holder otherwise informs the Company in writing), or (ii) in the case
      of an
      occurrence of an event of the type described in Section 3(c)(C)(ii),
      3(c)(C)(iii), 3(c)(C)(iv) or 3(o), the use by a Holder of an outdated or
      defective Prospectus after the delivery to the Holder of written notice from
      the
      Company that the Prospectus is outdated or defective and prior to the receipt
      by
      such Holder of the amended or supplemented Prospectus or the Advice contemplated
      in Section 3(n), but only if and to the extent that following receipt of the
      amended or supplemented Prospectus or the Advice the misstatement or omission
      giving rise to such Loss would have been corrected; provided, however, that
      the
      indemnity agreement contained in this Section 5(b) shall not apply to amounts
      paid in settlement of any Losses if such settlement is effected without the
      prior written consent of the Holder, which consent shall not be unreasonably
      withheld. Notwithstanding anything to the contrary contained herein, the Holder
      shall be liable under this Section 5(b) for only that amount as does not exceed
      the net proceeds to such Holder as a result of the sale of Registrable
      Securities pursuant to such Registration Statement giving rise to such Loss.
      

     

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified Party"), such Indemnified Party promptly shall notify
      the Person from whom indemnity is sought (the "Indemnifying Party") in writing,
      and the Indemnifying Party shall have the right to assume the defense thereof,
      including the employment of counsel reasonably satisfactory to the Indemnified
      Party and the payment of all reasonable fees and expenses incurred in connection
      with defense thereof; provided, that the failure of any Indemnified Party to
      give such notice shall not relieve the Indemnifying Party of its obligations
      or
      liabilities pursuant to this Agreement, except (and only) to the extent that
      it
      shall be finally determined by a court of competent jurisdiction (which
      determination is not subject to appeal or further review) that such failure
      shall have proximately and materially adversely prejudiced the Indemnifying
      Party. 

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; or (2) the Indemnifying Party shall have failed promptly to assume
      the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall have been advised
      in writing by counsel that a conflict of interest is likely to exist if the
      same
      counsel were to represent such Indemnified Party and the Indemnifying Party
      (in
      which case, if such Indemnified Party notifies the Indemnifying Party in writing
      that it elects to employ separate counsel at the expense of the Indemnifying
      Party, the Indemnifying Party shall not have the right to assume the defense
      thereof and such counsel shall be at the reasonable expense of the Indemnifying
      Party). The Indemnifying Party shall not be liable for any settlement of any
      such Proceeding effected without its written consent, which consent shall not
      be
      unreasonably withheld. No Indemnifying Party shall, without the prior written
      consent of the Indemnified Party, effect any settlement of any pending
      Proceeding in respect of which any Indemnified Party is a party, unless such
      settlement includes an unconditional release of such Indemnified Party from
      all
      liability on claims that are the subject matter of such Proceeding and does
      not
      impose any monetary or other obligation or restriction on the Indemnified Party.
      

     

    All
      reasonable fees and expenses of the Indemnified Party (including reasonable
      fees
      and expenses to the extent incurred in connection with investigating or
      preparing to defend such Proceeding in a manner not inconsistent with this
      Section) shall be paid to the Indemnified Party, as incurred, within ten (10)
      Business Days of written notice thereof to the Indemnifying Party, which notice
      shall be delivered no more frequently than on a monthly basis (regardless of
      whether it is ultimately determined that an Indemnified Party is not entitled
      to
      indemnification hereunder; provided, that the Indemnifying Party may require
      such Indemnified Party to undertake to reimburse all such fees and expenses
      to
      the extent it is finally judicially determined that such Indemnified Party
      is
      not entitled to indemnification hereunder).

     

    
      
         

      

      
        -
          7
          -

        
          

        

      

      
         

      

    

    

     

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party because of a failure or refusal of a governmental authority
      to
      enforce such indemnification in accordance with its terms (by reason of public
      policy or otherwise), then each Indemnifying Party, in lieu of indemnifying
      such
      Indemnified Party, shall contribute to the amount paid or payable by such
      Indemnified Party as a result of such Losses, in such proportion as is
      appropriate to reflect the relative fault of the Indemnifying Party and
      Indemnified Party in connection with the actions, statements or omissions that
      resulted in such Losses as well as any other relevant equitable considerations.
      The relative fault of such Indemnifying Party and Indemnified Party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission of a material fact, has been taken or made by, or relates
      to
      information supplied by, such Indemnifying Party or Indemnified Party, and
      the
      parties' relative intent, knowledge, access to information and opportunity
      to
      correct or prevent such action, statement or omission. The amount paid or
      payable by a party as a result of any Losses shall be deemed to include, subject
      to the limitations set forth in Section 5(c), any reasonable attorneys' or
      other
      reasonable fees or expenses incurred by such party in connection with any
      Proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for in this Section was available
      to
      such party in accordance with its terms. Notwithstanding anything to the
      contrary contained herein, a Holder shall be required to contribute under this
      Section 5(d) for only that amount as does not exceed the net proceeds to such
      Holder as a result of the sale of Registrable Securities pursuant to such
      Registration Statement giving rise to such Loss. 

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph. 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
      indemnity and contribution agreements contained in this Section 5(d) are in
      addition to any liability that the Indemnifying Parties may have to the
      Indemnified Parties. The indemnity and contribution agreements herein are in
      addition to and not in diminution or limitation of any indemnification
      provisions under the Purchase Agreement.

     

    
      
         

      

      
        -
          8
          -

        
          

        

      

      
         

      

    

    6. Rule
      144.

     

    As
      long
      as any Holder owns Registrable Securities, the Company covenants to timely
      file
      (or obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by the Company after the date hereof
      pursuant to Section 13(a) or 15(d) of the Exchange Act. As long as any Holder
      owns Registrable Securities, if the Company is not required to file reports
      pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and
      furnish to the Holders and make publicly available in accordance with Rule
      144(c) promulgated under the Securities Act annual and quarterly financial
      statements, together with a discussion and analysis of such financial statements
      in form and substance substantially similar to those that would otherwise be
      required to be included in reports required by Section 13(a) or 15(d) of the
      Exchange Act, as well as any other information required thereby, in the time
      period that such filings would have been required to have been made under the
      Exchange Act. The Company further covenants that it will take such further
      action as any Holder may reasonably request, all to the extent required from
      time to time to enable such Person to sell Purchased Shares without registration
      under the Securities Act within the limitation of the exemptions provided by
      Rule 144 promulgated under the Securities Act, including compliance with the
      provisions of the Purchase Agreement relating to the transfer of the Purchased
      Shares. Upon the request of any Holder, the Company shall deliver to such Holder
      a written certification of a duly authorized officer as to whether it has
      complied with such requirements.

     

    7. Miscellaneous.

     

    (a) Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each Holder
      agree that monetary damages would not provide adequate compensation for any
      losses incurred by reason of a breach by it of any of the provisions of this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

     

    
      
         

      

      
        -
          9
          -

        
          

        

      

      
         

      

    

    

     

    (b) No
      Inconsistent Agreements.
      Except
      as otherwise disclosed in the Purchase Agreement, neither the Company nor any
      of
      its subsidiaries is a party to an agreement currently in effect, nor shall
      the
      Company or any of its subsidiaries, on or after the date of this Agreement,
      enter into any agreement with respect to its securities that is inconsistent
      with the rights granted to the Holders in this Agreement or otherwise conflicts
      with the provisions hereof. Without limiting the generality of the foregoing,
      other than with respect to the rights of the holders of the Company’s currently
      outstanding convertible notes and the Common Stock underlying such convertible
      notes and McFarland Dewey Securities Co. L.P. with respect to the Common Stock
      underlying warrants held by (or to be issued to) it, without the written consent
      of the Holders of a majority of the then outstanding Registrable Securities
      held
      by the Holders, the Company shall not grant to any Person the right to request
      the Company to register any securities of the Company under the Securities
      Act
      unless the rights so granted are subject in all respects to the rights of the
      Holders set forth herein, and are not otherwise in conflict with the provisions
      of this Agreement.

     

    (c) Notice
      of Effectiveness.
      Within
      two (2) Business Days after the Registration Statement which includes the
      Registrable Securities is ordered effective by the Commission, the Company
      shall
      deliver, and shall cause legal counsel for the Company to deliver, to the
      transfer agent for such Registrable Securities (with copies to the Holders
      whose
      Registrable Securities are included in such Registration Statement) confirmation
      that the Registration Statement has been declared effective by the Commission
      in
      the form attached hereto as Exhibit
      B.

     

    
      
         

      

      
        -
          10
          -

        
          

        

      

      
         

      

    

    (d) Piggy-Back
      Registrations.
      If at
      any time when there is not an effective Registration Statement covering all
      of
      the Registrable Securities, the Company shall determine to prepare and file
      with
      the Commission a registration statement relating to an offering for its own
      account or the account of others under the Securities Act of any of its equity
      securities, other than on Form S-4 or Form S-8 (each as promulgated under the
      Securities Act) or their then equivalents relating to equity securities to
      be
      issued solely in connection with any acquisition of any entity or business
      or
      equity securities issuable in connection with stock option or other employee
      benefit plans and other than with respect to the rights of the holders of the
      Company’s currently outstanding convertible notes and the Common Stock
      underlying such convertible notes, the Company shall send to each Holder of
      Registrable Securities written notice of such determination and, if within
      seven
      (7) Business Days after receipt of such notice, any such Holder shall so request
      in writing (which request shall specify the Registrable Securities intended
      to
      be disposed of by the Holder), the Company will cause the registration under
      the
      Securities Act of all Registrable Securities which the Company has been so
      requested to register by the Holder, to the extent required to permit the
      disposition of the Registrable Securities so to be registered, provided that
      if
      at any time after giving written notice of its intention to register any
      securities and prior to the effective date of the registration statement filed
      in connection with such registration, the Company shall determine for any reason
      not to register or to delay registration of such securities, the Company may,
      at
      its election, give written notice of such determination to such Holder and,
      thereupon, (i) in the case of a determination not to register, shall be relieved
      of its obligation to register any Registrable Securities in connection with
      such
      registration (but not from its obligation to pay expenses in accordance with
      Section 4 hereof), and (ii) in the case of a determination to delay registering,
      shall be permitted to delay registering any Registrable Securities being
      registered pursuant to this Section 7(d) for the same period as the delay in
      registering such other securities. The Company shall include in such
      registration statement all or any part of such Registrable Securities such
      Holder requests to be registered. In the case of an underwritten public
      offering, if the managing underwriter(s) or underwriter(s) should reasonably
      object to the inclusion of the Registrable Securities in such registration
      statement, then if the Company after consultation with the managing underwriter
      should determine that the inclusion of such Registrable Securities would
      materially adversely affect the offering contemplated in such registration
      statement, and based on such determination recommends inclusion in such
      registration statement of fewer or none of the Registrable Securities of the
      Holders, then (x) the number of Registrable Securities of the Holders included
      in such registration statement shall be reduced pro-rata among such Holders
      (based upon the number of Registrable Securities requested to be included in
      the
      registration), if the Company after consultation with the underwriter(s)
      recommends the inclusion of fewer Registrable Securities, or (y) none of the
      Registrable Securities of the Holders shall be included in such registration
      statement, if the Company after consultation with the underwriter(s) recommends
      the inclusion of none of such Registrable Securities; provided, however, that
      if
      securities are being offered for the account of other Persons as well as the
      Company, such reduction shall not represent a greater fraction of the number
      of
      Registrable Securities intended to be offered by the Holders than the fraction
      of similar reductions imposed on such other Persons (other than the
      Company).

     

    
      
         

      

      
        -
          11
          -

        
          

        

      

      
         

      

    

    

     

    (e) Failure
      to File Registration Statement and Other Events.
      The
      Company and the Holders agree that the Holders will suffer damages if the
      Registration Statement is not filed on or prior to the Filing Date and
      maintained in the manner contemplated herein during the Effectiveness Period.
      The Company and the Holders further agree that it would not be feasible to
      ascertain the extent of such damages with precision. Accordingly, if (i) the
      Registration Statement is not filed on or prior to the Filing Date, or (ii)
      the
      registration Statement is not declared effective by the Commission on or prior
      to the Effectiveness Deadline, or (iii) the Company fails to file with the
      Commission a request for acceleration in accordance with Rule 461 promulgated
      under the Securities Act within five (5) Business Days of the date that the
      Company is notified (orally or in writing, whichever is earlier) by the
      Commission that a Registration Statement will not be "reviewed," or not subject
      to further review, or (iv) the Registration Statement is filed with and declared
      effective by the Commission but thereafter ceases to be effective as to all
      Registrable Securities at any time prior to the expiration of the Effectiveness
      Period, without being succeeded promptly by a subsequent Registration Statement
      filed with the Commission, except as otherwise permitted by Sections 3(n) or
      3(o); provided, that (x) such exclusion, with respect to Section 3(n), shall
      only apply for not more than an aggregate 90 days in any 12-month period as
      described in Section 3(n), and (y) such exclusion, with respect to Section
      3(o),
      shall only apply for not more than 30 consecutive days and not more than an
      aggregate of 90 days in any 12-month period as described in Section 3(o), or
      (v)
      trading in the Common Stock shall be suspended or if the Common Stock is
      delisted from each securities exchange, quotation system, market or
      over-the-counter bulletin board on which Registrable Securities are required
      hereunder to be listed (each an "Exchange"), without promptly being listed
      on
      any other Exchange, for any reason for more than five (5) Business Days, other
      than pursuant to Sections 3(n) or 3(o); provided, that (x) such exclusion,
      with
      respect to Section 3(n), shall only apply for not more than an aggregate 90
      days
      in any 12-month period as described in Section 3(n), and (y) such exclusion,
      with respect to Section 3(o), shall only apply for not more than 30 consecutive
      days and not more than an aggregate of 90 days in any 12-month period as
      described in Section 3(o) (any such failure or breach being referred to as
      an
      "Event"), the Company shall pay in cash as liquidated damages (which liquidated
      damages shall be the sole and exclusive remedy for the Holders) for such failure
      and not as a penalty to each Holder an amount equal to one percent (1%) of
      such
      Holder's pro rata share of the purchase price paid by all Holders for Purchased
      Shares purchased and then outstanding pursuant to the Purchase Agreement for
      the
      initial thirty (30) day period until the applicable Event has been cured, which
      shall be pro rated for such periods less than thirty (30) days and one percent
      (1%) of such Holder's pro rata share of the purchase price paid by all Holders
      for Purchased Shares purchased and then outstanding pursuant to the Purchase
      Agreement for each subsequent thirty (30) day period until the applicable Event
      has been cured which shall be pro rated for such periods less than thirty days,
      provided that all such cash payments hereunder shall not exceed in the aggregate
      five percent (5%) of the purchase price paid by all Holders for Purchased Shares
      pursuant to the Purchase Agreement (the "Periodic Amount"). Payments to be
      made
      pursuant to this Section 7(e) shall be due and payable immediately upon demand
      in immediately available cash funds. The parties agree that the Periodic Amount
      represents a reasonable estimate on the part of the parties, as of the date
      of
      this Agreement, of the amount of damages that may be incurred by the Holders
      if
      the Registration Statement is not filed on or prior to the Filing Date and
      maintained in the manner contemplated herein during the Effectiveness Period
      or
      if any other Event as described herein has occurred. Notwithstanding the
      foregoing, the Company shall remain obligated to cure the breach or correct
      the
      condition that caused the Event, and the Holder shall have the right to take
      any
      action necessary or desirable to enforce such obligation. 

     

    (f) Specific
      Enforcement, Consent to Jurisdiction.
      

     

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

     

    (ii) Each
      of
      the Company and the Holders (i) hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts located in New York City, New
      York
      for the purposes of any suit, action or proceeding arising out of or relating
      to
      this Agreement and (ii) hereby waives, and agrees not to assert in any such
      suit, action or proceeding, any claim that it is not personally subject to
      the
      jurisdiction of such court, that the suit, action or proceeding is brought
      in an
      inconvenient forum or that the venue of the suit, action or proceeding is
      improper. Each of the Company and the Holders consents to process being served
      in any such suit, action or proceeding by mailing a copy thereof to such party
      at the address in effect for notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing in this Section 7(f) shall affect or limit any right to serve
      process in any other manner permitted by law. 

     

    (g) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of at least a majority of the then
      outstanding Registrable Securities held by the Holders. Notwithstanding the
      foregoing, a waiver or consent to depart from the provisions hereof with respect
      to a matter that relates exclusively to the rights of Holders and that does
      not
      directly or indirectly affect the rights of other Holders may be given by
      Holders of the Registrable Securities to which such waiver or consent relates;
      provided, however, that the provisions of this sentence may not be amended,
      modified, or supplemented except in accordance with the provisions of the
      immediately preceding sentence.

     

    
      
         

      

      
        -
          12
          -

        
          

        

      

      
         

      

    

    (h) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earlier of (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile telephone number specified for
      notice prior to 5:00 p.m., New York City time, on a Business Day, (ii) the
      next
      Business Day after the date of transmission, if such notice or communication
      is
      delivered via facsimile at the facsimile number specified in this Section on
      a
      day that is not a Business Day or later than 5:00 p.m., New York City time,
      on
      any date and earlier than 11:59 p.m., New York City time, on such date, (iii)
      the Business Day following the date of mailing, if sent by nationally recognized
      overnight courier service such as Federal Express or (iv) actual receipt by
      the
      party to whom such notice is required to be given. The addresses for such
      communications shall be with respect to each Holder at its address set forth
      under its name on Schedule
      1
      attached
      hereto, or with respect to the Company, addressed to: 

     

    ULURU
      Inc.

    4452
      Beltway Drive

    Addison,
      Texas 75001

    Attention:
      Kerry P. Gray

    Facsimile
      No.: (214) 905-5130

    

    or
      to
      such other address or addresses or facsimile number or numbers as any such
      party
      may most recently have designated in writing to the other parties hereto by
      such
      notice. Copies of notices to the Company shall be sent to: 

     

    Bingham
      McCutchen LLP

    150
      Federal Street

    Boston,
      Massachusetts 02110

    Attention:
      John J. Concannon, III

    Facsimile
      No.: (617) 951-8736

    

    Copies
      of
      notices to any Holder shall be sent to the addresses, if any, listed on
Schedule
      1
      attached
      hereto. 

     

    (i) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their successors and permitted assigns and shall inure to the benefit of
      each Holder and its successors and assigns; provided, that the Company may
      not
      assign this Agreement or any of its rights or obligations hereunder without
      the
      prior written consent of Holders of at least a majority of the then outstanding
      Registrable Securities held by the Holders; and provided, further, that each
      Holder may assign its rights hereunder in the manner and to the Persons as
      permitted under the Purchase Agreement.

     

    
      
         

      

      
        -
          13
          -

        
          

        

      

      
         

      

    

    (j) Assignment
      of Registration Rights.
      The
      rights of each Holder hereunder, including the right to have the Company
      register for resale Registrable Securities in accordance with the terms of
      this
      Agreement, shall be automatically assignable by each Holder to any transferee
      of
      such Holder of all or a portion of the Registrable Securities if: (i) the Holder
      agrees in writing with the transferee or assignee to assign such rights, and
      a
      copy of such agreement is furnished to the Company within a reasonable time
      after such assignment, (ii) the Company is, within a reasonable time after
      such
      transfer or assignment, furnished with written notice of (a) the name and
      address of such transferee or assignee, and (b) the securities with respect
      to
      which such registration rights are being transferred or assigned, (iii)
      following such transfer or assignment the further disposition of such securities
      by the transferee or assignees is restricted under the Securities Act and
      applicable state securities laws, (iv) at or before the time the Company
      receives the written notice contemplated by clause (ii) of this Section 7(j),
      the transferee or assignee agrees in writing with the Company to be bound by
      all
      of the provisions of this Agreement, and (v) such transfer shall have been
      made
      in accordance with the applicable requirements of the Purchase Agreement. The
      rights to assignment shall apply to the Holders (and to subsequent) successors
      and assigns.

     

    The
      Company may require, as a condition of allowing such assignment in connection
      with a transfer of Registrable Securities (i) that the Holder or transferee
      of
      all or a portion of the Registrable Securities furnish to the Company a written
      opinion of counsel that is reasonably acceptable to the Company to the effect
      that such transfer may be made without registration under the Securities Act,
      (ii) that the Holder or transferee execute and deliver to the Company an
      investment letter in form and substance acceptable to the Company and (iii)
      that
      the transferee be an "accredited investor" as defined in Rule 501(a) promulgated
      under the Securities Act.

     

    (k) Counterparts;
      Facsimile.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by electronic means or facsimile transmission, such signature shall
      create a valid binding obligation of the party executing (or on whose behalf
      such signature is executed) the same with the same force and effect as if such
      facsimile signature were the original thereof.

     

    (l) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without regard to principles of conflicts of law
      thereof.

     

    (m) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    
      
         

      

      
        -
          14
          -

        
          

        

      

      
         

      

    

    (n) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable in any
      respect, the remainder of the terms, provisions, covenants and restrictions
      set
      forth herein shall remain in full force and effect and shall in no way be
      affected, impaired or invalidated, and the parties hereto shall use their
      reasonable efforts to find and employ an alternative means to achieve the same
      or substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties hereto that they would have executed the remaining
      terms, provisions, covenants and restrictions without including any of such
      that
      may be hereafter declared invalid, illegal, void or unenforceable.

     

    (o) Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    (p) Registrable
      Securities Held by the Company and its Affiliates.
      Whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or its Affiliates (other than any Holder or transferees or successors
      or
      assigns thereof if such Holder is deemed to be an Affiliate solely by reason
      of
      its holdings of such Registrable Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

     

    (q) Obligations
      of Purchasers.
      The
      Company acknowledges that the obligations of each Purchaser under this Agreement
      are several and not joint with the obligations of any other Purchaser, and
      no
      Purchaser shall be responsible in any way for the performance of the obligations
      of any other Purchaser under this Agreement. The decision of each Purchaser
      to
      enter into to this Agreement has been made by such Purchaser independently
      of
      any other Purchaser. The Company further acknowledges that nothing contained
      in
      this Agreement, and no action taken by any Purchaser pursuant hereto, shall
      be
      deemed to constitute the Purchasers as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Purchasers
      are in any way acting in concert or as a group with respect to such obligations
      or the transactions contemplated hereby. Each Purchaser shall be entitled to
      independently protect and enforce its rights, including without limitation,
      the
      rights arising out of this Agreement, and it shall not be necessary for any
      other Purchaser to be joined as an additional party in any proceeding for such
      purpose.

     

    [signature
      page follows]

     

    

     

    
      
         

      

      
        -
          15
          -

        
          

        

      

      
         

      

    

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Investor Rights Agreement
      to be duly executed by their respective authorized persons as of the date first
      indicated above.

     

    COMPANY:

    

    ULURU
      INC.

    

    

    By:___/s/
      Kerry P. Gray___________________

    Name:
      Kerry P. Gray

    Title:
      President & CEO

    

    

    PURCHASERS:

    

    [Purchasers’
      signatures appear on the following pages]

    

    

    PURCHASERS:

    

    BRENCOURT
      ADVISORS LLC

    

    

    By:_/s/
      Michael Palm________________________

    Name:
      Michael Palm

    Title:
      CFO

    

    

    CHILTON
      PRIVATE EQUITY PARTNERS I, LLC

    By:
      CHILTON
      INVESTMENT COMPANY, LLC

    General
      Partner

    

    By:_/s/
      Patricia Mallon_____________

    Name:
      Patricia Mallon

    Title:
      Executive Vice President

    

    

    CHILTON
      SMALL CAP PARTNERS, LP

    By:
      CHILTON
      INVESTMENT COMPANY, LLC

    General
      Partner

    

    By:_/s/
      Patricia Mallon_____________

    Name:
      Patricia Mallon

    Title:
      Executive Vice President

    

    

    CHILTON
      SMALL CAP INTERNATIONAL, LP

    By:
      CHILTON
      INVESTMENT COMPANY, LLC

    General
      Partner

    

    By:_/s/
      Patricia Mallon_____________

    Name:
      Patricia Mallon

    Title:
      Executive Vice President

    

    

    CORNELL
      CAPITAL PARTNERS, LP

    By:
      Yorkville Advisors, LLC, its General Partner

    

    

    By:_/s/
      Mark Angelo________________________

    Name:
      Mark Angelo

    Title:
      Portfolio Manager

    

    

    INVUS
      PUBLIC EQUITIES L.P.

    

    

    By:_/s/
      Khalil Barrage________________________

    Name:
      Khalil Barrage

    Title:
      Vice President

    

    

    JANA
      PIRANHA MASTER FUND, LTD.

    By:
      JANA
      Partners LLC, its investment advisor

    

    

    By:_/s/
      Mark Lehmann________________________

    Name:
      Mark Lehmann

    Title:
      Partner

    

    

    OSCAR
      S. SCHAFER & PARTNERS I, LP

    

    

    By:_/s/
      Oscar S. Schafer________________________

    Name:
      Oscar S. Schafer

    Title:
      Senior Managing Member of OSS Advisors LLC, General Partner

    

    

    OSCAR
      S. SCHAFER & PARTNERS II, LP

    

    

    By:_/s/
      Oscar S. Schafer________________________

    Name:
      Oscar S. Schafer

    Title:
      Senior Managing Member of OSS Advisors LLC, General Partner

    

    

    OSS
      OVERSEAS LTD

    

    

    By:_/s/
      Oscar S. Schafer ________________________

    Name:
      Oscar S. Schafer

    Title:
      Senior Managing Member of Schafer Brothers LLC, General Partner 

    of
      OSS
      Capital Management LP Investment Manager

    

    

    

    

    

    

    PEQUOT
      HEALTHCARE FUND, L.P.

    By:
      PEQUOT
      CAPITAL MANAGEMENT, INC

    Investment
      Manager

    

    By:_/s/
      Daniel Fishbone ________________________

    Name:
      Daniel Fishbone

    Title:
      CFO

    

    

    PEQUOT
      HEALTHCARE OFFSHORE FUND, INC.

    By:
      PEQUOT
      CAPITAL MANAGEMENT, INC

    Investment
      Manager

    

    By:_/s/
      Daniel Fishbone ________________________

    Name:
      Daniel Fishbone

    Title:
      CFO

    

    

    PEQUOT
      DIVERSIFIED MASTER FUND, LTD

    By:
      PEQUOT
      CAPITAL MANAGEMENT, INC

    Investment
      Manager

    

    By:_/s/
      Daniel Fishbone ________________________

    Name:
      Daniel Fishbone

    Title:
      CFO

    

    

    PEQUOT
      HEALTHCARE INSTITUTIONAL FUND, L.P.

    By:
      PEQUOT
      CAPITAL MANAGEMENT, INC

    Investment
      Manager

    

    By:_/s/
      Daniel Fishbone ________________________

    Name:
      Daniel Fishbone

    Title:
      CFO

    

    

    

    PREMIUM
      SERIES PCC LIMITED -CELL 32

    

    

    By:_/s/
      Chris T. Mueller ________________________

    Name:
      Chris T. Mueller

    Title:
      Attorney in Fact

    

    

    

    PRENOX,
      LLC

    By:
      Prentice Capital Management, LP, as Manager

    

    

    By:__/s/
      Matthew Hoffman________________________

    Name:
      Matthew Hoffman

    Title:
      General Counsel

    

    

    WITCHES
      ROCK PORTFOLIO LTD

    By:
      Tudor
      Investment Corporation, Investment Advisor

    

    

    By:_/s/
      Stephen N. Waldman________________________

    Name:
      Stephen N. Waldman

    Title:
      Managing Director

    

    THE
      TUDOR BVI GLOBAL PORTFOLIO LTD.

    By:
      Tudor
      Investment Corporation, Trading Advisor

    

    

    By:_/s/
      Stephen N. Waldman________________________

    Name:
      Stephen N. Waldman

    Title:
      Managing Director

    

    

    TUDOR
      PROPRIETARY TRADING, L.L.C.

    

    

    By:_/s/
      Stephen N. Waldman________________________

    Name:
      Stephen N. Waldman

    Title:
      Managing Director

    

    

    

    
      
         

      

      
        -
          16
          -

        
          

        

      

      
         

      

    

    

    

    SCHEDULE
      1

    

    PURCHASERS

    

    
      	
              Name,
                Address and Facsimile Number of Purchaser

               

            
	
              Brencourt
                Advisors LLC

              600
                Lexington Avenue

              New
                York, NY 10022

              Attention:
                William Collins and Seth Yellin

              Facsimile:
                212-313-9781

            
	
              Chilton
                Private Equity Partners I, LLC

              Chilton
                Small Cap International, L.P.

              Chilton
                Small Cap Partners, L.P.

              c/o
                Chilton Investment Company, LLC

              1266
                East Main Street, 7th Floor

              Stamford,
                CT 06902

              Attention:
                Evelyn Dametta

              Facsimile:
                203-352-4035

            
	
              Cornell
                Capital Partners, LP

              101
                Hudson Street, Suite 3700

              Jersey
                City, NJ 07302

              Attention:
                David Fine

              Facsimile:
                201-985-8266 

            
	
              Invus
                Public Equities L.P.

              750
                Lexington Avenue, 30th Floor

              New
                York, NY 10022

              Attention:
                Jessica Bennett

              Facsimile:
                212-317-7530

            
	
              JANA
                Piranha Master Fund, Ltd.

              c/o
                JANA Partners LLC

              200
                Park Avenue, Suite 3300

              New
                York, NY 10166

              Attention:
                General Counsel

              Facsimile:
                212-692-7695

            
	
              Oscar
                S. Schafer & Partners I, LP

              Oscar
                S. Schafer & Partners II, LP

              OSS
                Overseas LTD

              598
                Madison Avenue, 10th Floor

              New
                York, NY 10022

              Attention:
                Oscar S. Schafer

              Facsimile:
                212-756-8701

            
	
              Pequot
                Healthcare Fund, L.P.

              Pequot
                Healthcare Offshore Fund, Inc.

              Pequot
                Diversified Master Fund, Ltd.

              Pequot
                Healthcare Institutional Fund, L.P.

              Premium
                Series PCC Limited -- Cell 32

              c/o
                Pequot Capital Management, Inc.

              500
                Nyala Farm Road

              Westport,
                CT 06880

              Attention:
                Amber Tencic

              Facsimile:
                203-557-5551

            
	
              Prenox,
                LLC

              623
                Fifth Avenue, 32nd Floor

              New
                York, NY 10022

              Attention:
                Matthew Hoffman

              Facsimile:
                212-756-1480

            
	
              Witches
                Rock Portfolio Ltd.

              The
                Tudor BVI Global Portfolio Ltd.

              Tudor
                Proprietary Trading, L.L.C.

              c/o
                Tudor Investment Corporation

              50
                Rowes Wharf, 6th Floor

              Boston,
                MA 02110

              Attention:
                William T. Flaherty

              Facsimile:
                617-737-9280

            

    

    

    

    

    
      
        
          

        

         

      

      
        -
          17
          -

        
          

        

      

      
         

        
        

      

    

    EXHIBIT
      A

    

    PLAN
      OF
      DISTRIBUTION

    

    

    We
      are
      registering the shares of common stock on behalf of the selling security
      holders. Sales of shares may be made by selling security holders, including
      their respective donees, transferees, pledgees or other successors-in-interest
      directly to purchasers or to or through underwriters, broker-dealers or through
      agents. Sales may be made from time to time on any exchange or market upon
      which
      our shares may trade in the future, in the over-the-counter market or otherwise,
      at market prices prevailing at the time of sale, at prices related to market
      prices, or at negotiated or fixed prices. The shares may be sold by one or
      more
      of, or a combination of, the following:

     

    
      	
              -

            	
              a
                block trade in which the broker-dealer so engaged will attempt to
                sell the
                shares as agent but may position and resell a portion of the block
                as
                principal to facilitate the transaction (including crosses in which
                the
                same broker acts as agent for both sides of the
                transaction);

            

    

     

    
      	
              -

            	
              purchases
                by a broker-dealer as principal and resale by such broker-dealer,
                including resales for its account, pursuant to this
                prospectus;

            

    

     

    
      	
              -

            	
              ordinary
                brokerage transactions and transactions in which the broker solicits
                purchases;

            

    

     

    
      	
              -

            	
              through
                options, swaps or derivatives;

            

    

     

    
      	
              -

            	
              in
                privately negotiated transactions;

            

    

     

    
      	
              -

            	
              in
                making short sales or in transactions to cover short sales;
                

            

    

     

    
      	
              -

            	
              put
                or call option transactions relating to the shares;
                and

            

    

     

    
      	
              -

            	
              any
                other method permitted pursuant to applicable law.
                

            

    

     

    The
      selling security holders may effect these transactions by selling shares
      directly to purchasers or to or through broker-dealers, which may act as agents
      or principals. These broker-dealers may receive compensation in the form of
      discounts, concessions or commissions from the selling security holders and/or
      the purchasers of shares for whom such broker-dealers may act as agents or
      to
      whom they sell as principals, or both (which compensation as to a particular
      broker-dealer might be in excess of customary commissions). The selling security
      holders have advised us that they have not entered into any agreements,
      understandings or arrangements with any underwriters or broker-dealers regarding
      the sale of their securities.

     

    The
      selling security holders may enter into hedging transactions with broker-dealers
      or other financial institutions. In connection with those transactions, the
      broker-dealers or other financial institutions may engage in short sales of
      the
      shares or of securities convertible into or exchangeable for the shares in
      the
      course of hedging positions they assume with the selling security holders.
      The
      selling security holders may also enter into options or other transactions
      with
      broker-dealers or other financial institutions which require the delivery of
      shares offered by this prospectus to those broker-dealers or other financial
      institutions. The broker-dealer or other financial institution may then resell
      the shares pursuant to this prospectus (as amended or supplemented, if required
      by applicable law, to reflect those transactions).

     

    The
      selling security holders and any broker-dealers that act in connection with
      the
      sale of shares may be deemed to be "underwriters" within the meaning of Section
      2(11) of the Securities Act of 1933, and any commissions received by
      broker-dealers or any profit on the resale of the shares sold by them while
      acting as principals may be deemed to be underwriting discounts or commissions
      under the Securities Act. The selling security holders may agree to indemnify
      any agent, dealer or broker-dealer that participates in transactions involving
      sales of the shares against liabilities, including liabilities arising under
      the
      Securities Act. We have agreed to indemnify each of the selling security holders
      and each selling security holder has agreed, severally and not jointly, to
      indemnify us against some liabilities in connection with the offering of the
      shares, including liabilities arising under the Securities Act. 

     

    We
      have
      informed the selling security holders that the anti-manipulative provisions
      of
      Regulation M promulgated under the Securities Exchange Act of 1934 may apply
      to
      their sales in the market. 

     

    Selling
      security holders also may resell all or a portion of the shares in open market
      transactions in reliance upon Rule 144 under the Securities Act, provided they
      meet the criteria and conform to the requirements of Rule 144. 

     

    Upon
      being notified by a selling security holder that a material arrangement has
      been
      entered into with a broker-dealer for the sale of shares through a block trade,
      special offering, exchange distribution or secondary distribution or a purchase
      by a broker or dealer, we will file a supplement to this prospectus, if required
      pursuant to Rule 424(b) under the Securities Act, disclosing:

     

    
      	
              -

            	
              the
                name of each such selling security holder and of the participating
                broker-dealer(s);

            

    

     

    
      	
              -

            	
              the
                number of shares involved;

            

    

     

    
      	
              -

            	
              the
                initial price at which the shares were
                sold;

            

    

     

    
      	
              -

            	
              the
                commissions paid or discounts or concessions allowed to the
                broker-dealer(s), where applicable;

            

    

     

    
      	
              -

            	
              that
                such broker-dealer(s) did not conduct any investigation to verify
                the
                information set out or incorporated by reference in this prospectus;
                and

            

    

     

    
      	
              -

            	
              other
                facts material to the transactions.

            

    

     

    In
      addition, if required under applicable law or the rules or regulations of the
      Commission, we will file a supplement to this prospectus when a selling security
      holder notifies us that a donee or pledgee intends to sell more than 500 shares
      of common stock.

     

    We
      are
      paying all expenses and fees customarily paid by the issuer in connection with
      the registration of the shares. The selling security holders will bear all
      brokerage or underwriting discounts or commissions paid to broker-dealers in
      connection with the sale of the shares.

     

    

    

    

    
      
        
          

          BUSDOCS/1601989.4 

        

         

      

      
        -
          18
          -

        
          

        

      

      
         

        
        

      

    

    EXHIBIT
      B

     

    FORM
      OF
      NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

     

    

    [Name
      and
      Address of Transfer Agent]

    

    Re:
      ULURU
      Inc.

    

    Dear
      [______]:

    

    We
      are
      counsel to ULURU Inc., a Nevada corporation (the "Company"), and have
      represented the Company in connection with that certain Common Stock Purchase
      Agreement (the "Purchase Agreement") dated as of December ___, 2006 by and
      among
      the Company and the purchasers named therein (collectively, the "Holders")
      pursuant to which the Company issued to the Holders shares of its Common Stock,
      par value $0.001 per share (the "Common Stock"). Pursuant to the Purchase
      Agreement, the Company has also entered into an Investor Rights Agreement with
      the Holders (the "Investor Rights Agreement") pursuant to which the Company
      agreed, among other things, to register the shares of Common Stock issued
      pursuant to the Purchase Agreement, under the Securities Act of 1933, as amended
      (the "1933 Act"). In connection with the Company's obligations under the
      Investor Rights Agreement, on ____________ ___, 2007, the Company filed a
      Registration Statement on Form SB-__ (File No. 333-_____________) (the
      "Registration Statement") with the Securities and Exchange Commission (the
      "SEC") relating to the Registrable Securities which names each of the Holders
      as
      a selling securityholder thereunder.

     

    In
      connection with the foregoing, we advise you that a member of the SEC's staff
      has advised us by telephone that the SEC has entered an order declaring the
      Registration Statement effective under the 1933 Act at [ENTER TIME OF
      EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after
      telephonic inquiry of a member of the SEC's staff, that any stop order
      suspending its effectiveness has been issued or that any proceedings for that
      purpose are pending before, or threatened by, the SEC and the Registrable
      Securities are available for resale under the 1933 Act pursuant to the
      Registration Statement.

     

    Very
      truly yours,

    

    ULURU
      Inc.

    

    

    By:__________________________________
      

    Name:

    Title:

    

    cc:
      [LIST
      NAMES OF HOLDERS]

    
      
         

      

      
        -
          19
          -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]