Document:

____________________

            	 	
              ____________________

            
	
              Name
                of Purchaser

            	 	
              Agreement
                No.

            

    

    

    

    

    SECURITIES
      PURCHASE AGREEMENT

    

    

     

    NANOSENSORS,
      INC.

     

    Up
      to $1,500,000 of Units

     

    Each
      Unit consisting of one share of Common Stock and one Common Stock

    Purchase
      Warrant, each entitling the holder to purchase one share of Common
      Stock.

    

    Maximum
      of 150,000,000 shares of Common Stock and 150,000,000 Warrants

    

    Offering
      Price - $0.01 per Unit, Minimum Investment $50,000

    (Common
      Stock, Par Value $.001 per share)

    

     

     In
      the event you decide not to participate in this offering please return this
      Securities Purchase Agreement to the principal office of the Company as set
      forth below.

    

    

    

    

    

    

    

    

    

    

    

    

    NANOSENSORS,
      INC.

    1800
      Wyatt Drive, Suite #2

    Santa
      Clara, CA 95054

    Telephone:
      (408) 855-0051

    

    

    Dated:
      May 11, 2006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CONFIDENTIAL
      SECURITIES PURCHASE AGREEMENT 

    

    

    INSTRUCTIONS:

    

    Items
      to
      be delivered by all Purchasers:

    

    
      	 	
              a.

            	
              One
                (1) completed and executed Securities Purchase Agreement, including
                the
                Investor Questionnaire.

            

    

    

    
      	 	
              b.

            	
              One
                (1) completed and executed Registration Rights Agreement, including
                the
                Selling Security Holder Questionnaire annexed
                thereto.

            

    

    

    
      	 	
              c.

            	
              Payment
                in the amount of subscription, by wire transfer of funds or check.
                All
                checks should be made payable to “Signature Bank as Escrow Agent For
                NanoSensors, Inc.” in the total amount of the Units subscribed
                for.

            

    

    

    
      	 	
              d.

            	
              Wired
                funds should be made according to directions from the Company or
                the
                Selling Agents.

            

    

    

     

    THE
      PURCHASER IS RESPONSIBLE FOR ALL WIRE TRANSFER FEES IMPOSED BY THE
      PURCHASER’S  BANK.    

    

    

    The
      following exhibits constitute a part of this Agreement:

    

    EXHIBIT
      A:  INVESTOR
      QUESTIONNAIRE

    

    EXHIBIT
      B:  FORM
      OF WARRANT

    

    EXHIBIT
      C:  REGISTRATION
      RIGHTS AGREEMENT

    

    EXHIBIT
      D: ANNUAL REPORT ON FORM 10-KSB FOR THE FISCAL YEAR ENDED NOVEMBER 30,
      2005

    

    EXHIBIT
      E:  QUARTERLY
      REPORT ON FORM 10-QSB FOR THE FISCAL QUARTER ENDED FEBRUARY 28,
      2006

    

    EXHIBIT
      F:  CURRENT
      REPORT ON FORM 8-K DATED MAY 8, 2006

    

    

    

    ALL
      DOCUMENTS SHOULD BE RETURNED TO THE SELLING AGENT FROM WHOM THE PURCHASER
      INITIALLY RECEIVED SUCH DOCUMENTS

    

    
      
        ii

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SECURITIES
      PURCHASE AGREEMENT

    

    THIS
      SECURITIES PURCHASE AGREEMENT
      (the
“Agreement”), is made by and among those purchasers indicated on the signature
      page to this Agreement (referred to collectively as the “Purchasers”), and
NANOSENSORS,
      INC., a
      Nevada
      corporation (the “Company”). For each Purchaser, this Agreement shall be deemed
      made as of the later of the date that it is executed by such Purchaser and
      the
      Company.

    

    Article
      I

    SALE
      OF UNITS

    

    1.1
       Sale
      of Units.
      The
      Company has authorized the sale of the up to an aggregate of $1,000,000 of
      Units
      of the Company’s securities and an additional $500,000 of Units as an
      oversubscription amount for a per Unit purchase price of $50,000 (the “Purchase
      Price”). Each $50,000 Unit consists of 5,000,000 shares of the Company’s Common
      Stock (the “Shares”) and warrants to purchase an additional 5,000,000 shares of
      the Company’s Common Stock (the “Warrants” and the shares of Common Stock
      issuable upon exercise of the Warrants are the “Warrant Shares”). 

    

    1.2
       Purchase
      Price.
      Subject
      to the terms and conditions hereof and on the basis of the representations
      and
      warranties hereinafter set forth, the Company hereby agrees to issue and sell
      to
      each Purchaser, and each Purchaser agrees to purchase from the Company, upon
      the
      Closing (as defined in Section 1.4 hereof), the number of Units as described
      herein for the applicable Purchase Price as set forth on the signature page
      of
      this Agreement executed by such Purchaser. The number of Units purchased
      hereunder by a Purchaser (and the corresponding Purchase Price payable by such
      Purchaser for the Units being purchased by it) shall be as specified on the
      signature page of this Agreement executed by such Purchaser. The Company may
      reject any subscription in whole or in part and the Company may agree to issue
      fractional Units hereunder. This offer is only being made to “accredited
      investors” (as defined in Rule 501 under the Securities Act of 1933, as amended
      (the “Securities Act”)) in reliance upon an exemption from registration under
      Section 4(2) of the Securities Act and/or Regulation D promulgated thereunder,
      and on similar exemptions under applicable state laws. The Company and Selling
      Agents (defined below) may accept subscriptions for less than a whole Unit
      in
      their sole discretion.

    

    1.3
       Offering
      Period. The
      Units
      are being offering (the “Offering”) during the offering period commencing on May
      11, 2006 and terminating on the earlier of (a) June 11, 2006 or (b) the date
      on
      which all Units authorized for sale (including the oversubscription amount)
      have
      been sold, unless extended by the Company and the selling agents for up to
      an
      additional 30 days (the “Offering Period”).

    

    1.4 No
      Minimum; Multiple Closings.
      The
      Purchaser acknowledges and agrees that all subscription amounts will be
      deposited in an escrow account maintained by the Company and that there is
      no
      minimum Offering amount necessary for the funds to be released to the Company.
      Subject to the escrow conditions discussed below, funds may be released to
      the
      Company and closings held, from time to time, as determined by the Company
      at
      any time during the Offering Period. The final Closing shall be either the
      date
      of which this Offering is fully subscribed or the last date during the Offering
      Period on which the Company accepts a subscription, whichever is latest. Each
      closing of the transactions contemplated hereunder (the “Closing”) shall be
      deemed to occur at the offices of Goldstein & DiGioia, LLP, 45 Broadway,
      11th
      Floor,
      New York, New York 10006, or at such other place as shall be mutually agreeable
      to the parties, at 11:00 a.m., New York Time, on such other date as be mutually
      agreeable to the parties.

    

    1.5
       Closing
      Matters.
      At each
      Closing the following actions shall be taken:

    

    (a)
       Each
      Purchaser shall deliver its Purchase Price in immediately available United
      States funds to the escrow account established for the Offering; and
 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)
       Subject
      to the provisions of Section 1.7 hereof, the Company shall deliver certificates
      representing the Shares and Warrants comprising the amount of Units subscribed
      for to each Purchaser.

    

    (c) The
      Company intends to use the proceeds derived from this sale to satisfy its
      working capital requirements, however an amount of up to $90,000 may be used
      for
      payments of accrued compensation. Management reserves the right to utilize
      the
      net proceeds of the sale in a manner in the best interests of the Company.
      The
      amount of the net proceeds that will be invested in particular areas of the
      Company’s business will depend upon future economic conditions and business
      opportunities. To the extent that the Company continues to incur losses from
      operations, such losses will be funded from its general funds, including the
      net
      proceeds of this sale.

     

    1.6 Description
      of Warrants. The
      following discussion is subject to the terms and conditions of the Warrants,
      a
      copy of which is annexed hereto as Exhibit
      B,
      and
      Purchasers are referred to the form of the Warrant for more detailed
      information.

    

     (a) Each
      Warrant will entitle the holder to purchase one share of Common Stock (“Warrant
      Shares”) at an initial exercise price of $0.04 per share, subject to adjustments
      in the event we (A) declare a dividend or make a distribution on our common
      stock in shares of our common stock, (B) subdivide or reclassify the outstanding
      shares of common stock into a greater number of shares, (C) combine or
      reclassify the outstanding common stock into a smaller number of shares or
      (D)
      issue shares of Common Stock or other securities at a price below the per share
      Purchase Price. The Warrants may be exercised in whole or in part at any time
      during the five year period commencing on the date of issuance. The Warrants
      may
      be exercised on a cashless basis in the event the registration statement
      contemplated by the Registration Rights Agreement (defined below) is not
      declared effective within six months of the final Closing, or such registration
      statement is not maintained effective for the period specified in the
      Registration Rights Agreement.

    

    (b) Commencing
      twelve months after the effective date of the registration statement
      contemplated by the Registration Rights Agreement (attached hereto as
Exhibit
      C
      and
      referred to herein as the “Registration Rights Agreement”), the Company, at its
      option, may redeem some or all of the Warrants upon not less than thirty (30)
      days nor more than sixty (60) days prior written notice to the Warrant Holder
      at
      a redemption price of $0.01 per Warrant only in the event that the closing
      bid
      price of our Common Stock is at least 300% of the exercise price for twenty
      (20)
      consecutive trading days prior to the date of the notice of redemption and
      the
      Warrant Shares are covered by a registration statement declared effective by
      the
      Securities and Exchange Commission. A Warrant holder may exercise the Warrants
      during the period from the date of notice of redemption until 5:00 Eastern
      Time
      on the business day immediately preceding the redemption date. 

    

    1.7 Escrow
      of Funds; Holdback; Appointment. (a)
      All
      proceeds received by from Purchasers as consideration for the purchase of the
      Units will be deposited in an escrow account. Closings will be held from time
      to
      time as agreed upon by the Company and the Selling Agents. An amount equal
      to
      60% of the aggregate Purchase Price paid shall be retained in the escrow account
      (the “Escrowed Funds”) until the occurrence of (i) the registration statement
      contemplated by the Registration Rights Agreement entered into among the Company
      and the Purchasers is declared effective by the U.S. Securities and Exchange
      Commission and (ii) the Company has (A) obtained the approval of the requisite
      number of its stockholders necessary to amend its Certificate of Incorporation
      to increase the number of authorized shares of Common Stock to 950,000,000
      shares of Common Stock, (B) complied with its obligations under the rules and
      regulations established by the U.S. Securities and Exchange Commission for
      obtaining such shareholder approval; and (C) filed an Amendment to its
      Certificate of Incorporation and such certificate shall have been accepted
      for
      filing by the Secretary of State for the State of Nevada. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b)
       Until
      such time as the Company has satisfied its obligations as described in Section
      1.7(a), the Company shall not be required to issue certificates representing
      the
      number of Shares and Warrants allocable to the Escrowed Funds until such time
      as
      the funds are released to the Company from escrow. The Shares and Warrants
      representing the Escrowed Funds may be referred to as the “Holdback
      Securities”.

    

    (c) Upon
      the
      Company’s satisfaction of these conditions, the Company shall be authorized to
      execute and deliver instructions to the escrow agent for the release to the
      Company of such Escrowed Funds; provided, however, that Meyers Associates,
      L.P.,
      as the agent for the Purchasers, countersigns such instructions. Each Purchaser
      hereby designates Meyers Associates, L.P., a Selling Agent, as its
      representative and agent for the purpose of verifying the Company’s compliance
      with its obligations under this Section 1.7 and countersigning such escrow
      release instructions. Immediately following the Company’s delivery of
      countersigned escrow release instructions to the escrow agent pursuant to this
      Section 1.7(c), the Company shall cause the Holdback Securities to be delivered
      to the Purchasers.

    

    (d) In
      the
      event the Company is unable to (i) have the U.S. Securities and Exchange
      Commission declare the registration statement contemplated by the Registration
      Rights Agreement effective within six months of the final Closing Date, or
      (ii)
      rightfully cause its Certificate of Incorporation to be amended to increase
      the
      number of shares of authorized Common Stock to 950,000,000 shares, then each
      Purchaser shall have the right to demand the Company to instruct the escrow
      agent to return the Escrowed Funds to each Purchaser. In the event a Purchaser
      delivers such a demand to the Company, the Company shall promptly instruct
      the
      escrow agent to release and return the Escrowed Funds allocable to such
      Purchaser. Upon the return of such Purchaser’s Escrowed Funds, such Purchaser’s
      subscription for Units shall be deemed modified in order to cancel its
      subscription for the amount of Escrowed Funds returned. Upon the Company’s
      authorization to the escrow agent to return such Escrowed Funds, the Company
      shall have no further liability to issue and deliver the Holdback Securities,
      which securities shall be deemed cancelled. 

    

    (e)
       Notwithstanding
      the foregoing, a particular Purchaser may consent to the release of some or
      all
      of its Purchase Price that has been designated as Escrowed Funds to the Company
      regardless of the Company’s satisfaction of its obligations as described in this
      Section 1.7 by furnishing the Company and Meyers Associates with written notice
      of such election. Upon its receipt of such an election, the Company shall be
      entitled to submit a release instruction to the escrow agent for such Escrowed
      Funds, which such instruction must be countersigned by Meyers Associates, and
      upon its delivery to the escrow agent of such a duly executed instruction
      letter, the Company shall cause the certificates representing the Holdback
      Securities to be delivered to such Purchaser.

    

    1.8 Certain
      Reports Filed Under the Securities Exchange Act of 1934. Annexed
      to this Agreement are the Company’s (i) Annual Report on Form 10-KSB for the
      fiscal year ended November 30, 2005 (the “Annual Report”), (ii) Quarterly Report
      on Form 10-QSB for the fiscal quarter ended February 28, 2006 (the “Quarterly
      Report”) and (iii) Current Report on Form 8-K dated May 8, 2006 concerning the
      Company’s intention to undertake this Offering (the “Current Report”). The
      foregoing reports comprise an integral part of this Agreement and each Purchaser
      is urged to read each such report in its entirety. The Annual Report, Quarterly
      Report and Current Report may be collectively referred to herein as the “SEC
      Reports”.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    

    Article
      II

    REPRESENTATIONS
      AND WARRANTIES OF COMPANY

    

    The
      Company hereby represents and warrants to the Purchasers as of the date of
      this
      Agreement as follows:

    

       (A) The
      Company is duly organized, validly existing and in good standing under the
      laws
      of its state of incorporation, with all requisite power and authority to own,
      lease, license, and use its properties and assets and to carry out the business
      in which it is engaged, except where the failure to have or be any of the
      foregoing may not be expected to have a material adverse effect on the Company’s
      presently conducted businesses. The Company is not in violation of any of the
      provisions of its certificate of incorporation, bylaws or other organizational
      or charter documents. The Company is duly qualified to transact the business
      in
      which it is engaged and is in good standing as a foreign corporation in every
      jurisdiction in which its ownership, leasing, licensing or use of property
      or
      assets or the conduct of its business make such qualification necessary, except
      where the failure to be so qualified or in good standing, as the case may be,
      could not, individually or in the aggregate, have or reasonably be expected
      to
      result in (i) a material and adverse effect on the legality, validity or
      enforceability of this Agreement, (ii) a material and adverse effect on the
      results of operations, assets, prospects, business or condition (financial
      or
      otherwise) of the Company, taken as a whole, or (iii) an adverse impairment
      to
      the Company’s ability to perform on a timely basis its obligations hereunder
      (any of (i), (ii) or (iii), a “Material Adverse Effect”).

    

    (B) The
      Company is authorized to issue 500,000,000 shares of Common Stock, $.001 par
      value per share and 20,000,000 shares of Preferred Stock, $.001 par value per
      share. No securities of the Company are entitled to preemptive or similar
      rights, and no entity or person has any right of first refusal, preemptive
      right, right of participation, or any similar right to participate in the
      transactions contemplated by this Agreement unless any such rights have been
      waived. Except as (i) a result of the purchase and sale of the Units, (ii)
      as
      disclosed in the Company’s SEC Reports and (iii) as described in Section II(J)
      below, there are no outstanding options, warrants, scrip 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 entity
      or person any right to subscribe for or acquire, any shares of Common Stock,
      or
      contracts, commitments, understandings or arrangements by which the Company
      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 Units will not (except pursuant to their terms thereunder),
      immediately or with the passage of time, obligate the Company to issue shares
      of
      Common Stock or other securities to any entity or person 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.

    

    (C) The
      Company has the requisite corporate power and authority to enter into, deliver
      and consummate the transactions contemplated by this Agreement, to issue and
      sell the Units and deliver the Shares and Warrants, and otherwise to carry
      out
      its obligations hereunder. The execution and delivery of this Agreement and
      the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by the Company and no further action is required by the Company
      in
      connection therewith, other than the Company’s obligations in connection with
      increasing its authorized capital stock, as described in Section 5.6(d) below.
      When executed and delivered by the Company, this Agreement will constitute
      the
      legal, valid and binding obligation of the Company, enforceable as to the
      Company in accordance with its terms, except as enforcement may be limited
      by
      bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance
      or
      transfer, moratorium or other laws or court decisions, now or hereinafter in
      effect, relating to or affecting the rights of creditors generally and as may
      be
      limited by general principles of equity and the discretion of the court having
      jurisdiction in an enforcement action (regardless of whether such enforceability
      is considered in a proceeding in equity or at law).

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (D) Other
      than the Company’s obligations in connection with increasing its authorized
      capital stock, as described in Section 5.6(d) below, no consent, authorization,
      approval, order, license, certificate or permit of or from, or declaration
      or
      filing with, any federal, state, local or other governmental authority or any
      court or any other tribunal is required by the Company for the execution,
      delivery or performance by the Company of this Agreement or the execution,
      issuance, sale or delivery of the Units.

    

    (E) 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
      or
      entity in connection with the execution, delivery and performance by the Company
      of this Agreement or the issuance, sale or delivery of the Units other than
      (i)
      any filings required by state securities laws, (ii) the filing of a Notice
      of a
      Sale of Securities on Form D with the Commission under Regulation D of the
      Securities Act, (iii) those that have been made or obtained prior to or
      contemporaneously with the date of this Agreement and (iv) the approval of
      the
      Company’s stockholders for the Company to amend its Certificate of Incorporation
      in order to increase its authorized capital stock. 

    

    (F) Other
      than the Company’s obligations in connection with increasing its authorized
      capital stock, as described in Section 5.6(d) below, the execution, delivery
      and
      performance of this Agreement by the Company and the consummation by the Company
      of the transactions contemplated hereby do not and will not: (i) conflict with
      or violate any provision of the Company’s certificate or articles of
      incorporation, bylaws or other organizational or charter documents, or (ii)
      violate, conflict with, or constitute a default or breach (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 debt or otherwise) or other
      understanding to which the Company is a party or by which any property or asset
      of the Company 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 is subject (including
      federal and state securities laws and regulations), or by which any property
      or
      asset of the Company is bound or affected; except in the case of each of clauses
      (ii) and (iii), such as could not, individually or in the aggregate, have or
      reasonably be expected to result in a Material Adverse Effect.

    

    (G) The
      Shares and Warrants comprising the Units have been duly authorized and, when
      issued and paid for in accordance with this Agreement, will be duly and validly
      issued, fully paid and nonassessable, will not be issued in violation of any
      preemptive or other rights of stockholders, and will be issued free and clear
      of
      all liens and encumbrances, other than restrictions on transfer under applicable
      securities laws. Effective upon the Company’s amendment of its Certificate of
      Incorporation to increase the amount of its authorized capital stock, the
      Company will reserve all of the Shares and Warrant Shares from its duly
      authorized capital stock. 

    

    (H) Since
      December 30, 2005, the Company has filed all reports required to be filed by
      it
      under the Securities Act of 1933, as amended (the “Securities Act”), and the
      Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to
      Section 13(a) or 15(d) thereof, for the period from December 30, 2005 and ending
      as of the date hereof (or such shorter period as the Company was required by
      law
      to file such reports) on a timely basis or has timely filed a valid extension
      of
      such time of filing and has filed any such SEC Reports prior to the expiration
      of any such extension. As of their respective dates, the SEC Reports complied
      in
      all material respects with the requirements of the Securities Act and the
      Exchange Act and the rules and regulations of the Commission promulgated
      thereunder, and none of the SEC Reports, when filed, 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. The financial
      statements of the Company included in the SEC Reports comply in all material
      respects with applicable accounting requirements and the rules and regulations
      of the Commission with respect thereto as in effect at the time of filing.
      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 fairly present in all material
      respects the financial position of the Company and its consolidated Subsidiaries
      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,
      immaterial, year-end audit adjustments. 

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (I) Litigation. 
      Except as disclosed in the SEC Reports, there is no pending or, to the best
      knowledge of the Company, threatened action, suit, proceeding or investigation
      before any court, governmental agency or body, or arbitrator having jurisdiction
      over the Company, or any of its affiliates that would affect the execution
      by
      the Company or the performance by the Company of its obligations under this
      Agreement, and all other agreements entered into by the Company relating
      hereto.  Except as disclosed in the SEC Reports, there is no pending or, to
      the best knowledge of the Company, threatened action, suit, proceeding or
      investigation before any court, governmental agency or body, or arbitrator
      having jurisdiction over the Company, or any of its affiliates which litigation
      if adversely determined could have a material adverse effect on the
      Company.

    

    (J) No
      Undisclosed Liabilities. 
      Except for the Company’s obligation to issue warrants to an investor arising out
      of the Company’s failure to file a registration statement pursuant to a certain
      Subscription Agreement entered into as of November 10, 2005, the Company has
      no
      liabilities or obligations which are material, individually or in the aggregate,
      which are not disclosed in the SEC Reports, other than those incurred in the
      ordinary course of the Company’s businesses since April 19, 2006 and which,
      individually or in the aggregate, would not reasonably be expected to have
      a
      material adverse effect on the Company’s financial condition. 

    

    (K) No
      Undisclosed Events or Circumstances. 
      Since April 19, 2006, no event or circumstance has occurred or exists with
      respect to the Company or its businesses, properties, operations or financial
      condition, that, under applicable law, rule or regulation, requires public
      disclosure or announcement prior to the date hereof by the Company but which
      has
      not been so publicly announced or disclosed in the SEC Reports.

    

    (L) Dilution. 
      The Company’s executive officers and directors have studied and fully understand
      the nature of the Units being sold hereby and recognize that they have a
      potential dilutive effect on the interests of other holders of the Company’s
      securities.  The board of directors of the Company has concluded, in its
      good faith business judgment, that such issuance is in the best interests of
      the
      Company.

    

    Article
      III

    REPRESENTATIONS
      AND WARRANTIES OF PURCHASERS

    

    By
      signing this Agreement, each undersigned Purchaser hereby represents and
      warrants to the Company as follows as an inducement to the Company to accept
      the
      subscription of the Purchaser:

    

    (A) The
      Purchaser acknowledges and agrees that (i) the offering and sale of the Units
      are intended to be exempt from registration under the Securities Act by virtue
      of Section 4(2) of the Securities Act and/or Regulation D promulgated
      thereunder, (ii) the Units have not been registered under the Securities Act
      and
      (iii) that the Company has represented to the Purchaser (assuming the veracity
      of the representations of the Purchaser made herein and in the Questionnaire
      annexed hereto at Exhibit
      A)
      that
      the Units, Shares, Warrants and Warrant Shares (collectively, the “Securities”)
      have been offered and sold by the Company in reliance upon an exemption from
      registration provided in Section 4(2) of the Securities Act and Regulation
      D
      thereunder. In accordance therewith and in furtherance thereof, the Purchaser
      represents and warrants to and agrees with the Company that it is an accredited
      investor (as defined in Rule 501 promulgated under the Securities Act) because
      the purchaser is [Please
      check statements applicable to the Purchaser]:

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	o 	a bank as defined in Section 3(a)(2) of the Securities
              Act;

      	 	 	 

      	 	
              o 

            	
              a
                savings and loan association or other institution as defined in Section
                3(a)(5)(A) of the Act;

            

    

    

    
      	 	
              o 

            	
              a
                broker or dealer registered pursuant to Section 15 of the Exchange
                Act;

            

    

     

    
      	 	o 	an insurance company as defined in Section 2(13)
              of the
              Securities Act;

      	 	 	 

      	 	
              o 

            	
              an
                investment company registered under the Investment Company Act of
                1940, as
                amended or a business development company as defined in Section 2(a)(48)
                of such act;

            

    

    

    
      	 	
              o 

            	
              a
                Small Business Investment Company licensed by the U.S. Small Business
                Administration under Section 301(c) or (d) of the Small Business
                Investment Act of 1958;

            

    

    

    
      	 	
              o 

            	
              an
                employee benefit plan within the meaning of Title I of the Employee
                Retirement Income Security Act of 1974, as amended, if the investment
                decision is made by a plan fiduciary, as defined in Section 3(21)
                of such
                Act, which is either a bank, savings and loan association, insurance
                company, or registered investment adviser, or if the employee benefit
                plan
                has total assets in excess of $5,000,000 or, if a self-directed plan,
                with
                investment decisions made solely by persons that are accredited
                investors;

            

    

    

    
      	 	
              o

            	
              a
                private business development company as defined in Section 202(a)(22)
                of
                the Investment Advisers Act of 1940, as
                amended;

            

    

    

    
      	 	
              o 

            	
              an
                organization described in Section 501(c)(3) of the Internal Revenue
                Code,
                a corporation, Massachusetts or similar business trust, or partnership,
                not formed for the specific purpose of acquiring the securities offered,
                with total assets in excess of
                $5,000,000;

            

    

    

    
      	 	
              o 

            	
              a
                natural person whose individual net worth or joint net worth with
                that
                person's spouse, at the time of his purchase exceeds
                $l,000,000;

            

    

    

    
      	 	
              o 

            	
              a
                natural person who had an individual income in excess of $200,000
                in each
                of the two most recent years or joint income with that person's spouse
                in
                excess of $300,000 in each of those years and has a reasonable expectation
                of reaching the same income level in the current
                year;

            

    

    

    
      	 	
              o 

            	
              a
                trust, with total assets in excess of $5,000,000, not formed for
                the
                specific purpose of acquiring the securities offered, whose purchase
                is
                directed by a sophisticated person as described in Rule 506(b)(2)(ii)
                of
                the Exchange Act; or

            

    

    

    
      	 	
              o 

            	
              an
                entity in which all of the equity owners are accredited investors.
                (If
                this alternative is checked, the Purchaser must identify each equity
                owner
                and provide statements signed by each demonstrating how each qualifies
                as
                an accredited investor.)

            

    

    

    
      	 	
              o 

            	
              a
                plan established and maintained by a state, its political subdivisions,
                or
                any agency or instrumentality thereof, for the benefit of its employees,
                if such plan has total assets in excess of
                $5,000,000

            

      	 	 	 

      	 	o  	a director or officer of the
              Company.

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (B) The
      Purchaser hereby represents and warrants that the Purchaser is acquiring the
      Units hereunder for its own account for investment and not with a view to
      distribution, and with no present intention of distributing the Units or selling
      the Units for distribution. The Purchaser understands that the Units are being
      sold to the Purchaser in a transaction which is exempt from the registration
      requirements of the Securities Act. Accordingly, the Purchaser acknowledges
      that
      it has been advised that the Units have not been registered under the Securities
      Act and are being sold by the Company in reliance upon the veracity of the
      Purchaser’s representations contained herein and upon the exemption from the
      registration requirements provided by the Securities Act and the securities
      laws
      of all applicable states. The Purchaser's acquisition of the Units shall
      constitute a confirmation of the foregoing representation and warranty and
      understanding thereof.

    

    (C) The
      Purchaser (or its “Purchaser Representative” if any) has such knowledge and
      experience in financial and business matters as is required for evaluating
      the
      merits and risks of making this investment, and the Purchaser or its Purchaser
      Representative(s) has received such information requested by the Purchaser
      concerning the business, management and financial affairs of the Company in
      order to evaluate the merits and risks of making this investment. Further,
      the
      Purchaser acknowledges that the Purchaser has had the opportunity to ask
      questions of, and receive answers from, the officers of the Company concerning
      the terms and conditions of this investment and to obtain information relating
      to the organization, operation and business of the Company and of the Company's
      contracts, agreements and obligations or needed to verify the accuracy of any
      information contained herein or any other information about the Company. Except
      as set forth in this Agreement, no representation or warranty is made by the
      Company to induce the Purchaser to make this investment, and any representation
      or warranty not made herein or therein is specifically disclaimed and no
      information furnished to the Purchaser or the Purchaser's advisor(s) in
      connection with the sale were in any way inconsistent with the information
      stated herein. The Purchaser further understands and acknowledges that no person
      has been authorized by the Company to make any representations or warranties
      concerning the Company, including as to the accuracy or completeness of the
      information contained in this Agreement.

    

    (D) The
      Purchaser is making the foregoing representations and warranties with the intent
      that they may be relied upon by the Company in determining the suitability
      of
      the sale of the Units to the Purchaser for purposes of federal and state
      securities laws. Accordingly, each Purchaser represents and warrants that the
      information stated herein is true, accurate and complete, and agrees to notify
      and supply corrective information promptly to the Company as provided above
      if
      any of such information becomes inaccurate or incomplete. The Purchaser has
      completed this Agreement and Questionnaire, has delivered it herewith and
      represents and warrants that it is accurate and true in all respects and that
      it
      accurately and completely sets forth the financial condition of the Purchaser
      on
      the date hereof. The Purchaser has no reason to expect there will be any
      material adverse change in its financial condition and will advise the Company
      of any such changes occurring prior to the closing or termination of the
      Offering.

    

    (E) The
      Purchaser is not subscribing for any of the Units as a result of or subsequent
      to any advertisement, article, notice or other communication published in any
      newspaper, magazine or similar media or broadcast over television or radio,
      any
      seminar or meeting, or any solicitation of a subscription by a person not
      previously known to the Purchaser in connection with investments in Units
      generally.

    

    (F) The
      Purchaser has received certain information regarding the Company, including
      this
      Agreement, and other accompanying documents of the Company receipt of which
      is
      hereby acknowledged. The Purchaser has carefully reviewed all information
      provided to it and has carefully evaluated and understands the risks described
      therein related to the Company and an investment in the Company, and understands
      and has relied only on the information provided to it in writing by the Company
      relating to this investment. No agent prepared any of the information to be
      delivered to prospective investors in connection with this transaction.
      Prospective investors are advised to conduct their own review of the business,
      properties and affairs of the Company before subscribing to purchase the
      Units.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (G) The
      Purchaser also understands and agrees that, although the Company will use its
      best efforts to keep the information provided in this Agreement strictly
      confidential, the Company or its counsel may present this Agreement and the
      information provided in answer to it to such parties as they may deem advisable
      if called upon to establish the availability under any federal or state
      securities laws of an exemption from registration of the private placement
      or if
      the contents thereof are relevant to any issue in any action, suit or proceeding
      to which the Company or its affiliates is a party, or by which they are or
      may
      be bound or as otherwise required by law or regulatory authority.

    

    (H) The
      individual signing below on behalf of any entity hereby warrants and represents
      that he/she is authorized to execute this Agreement on behalf of such entity.
      If
      an individual, the Purchaser has reached the age of majority in the state in
      which the Purchaser resides. The execution and delivery of this Agreement and
      the consummation of the transactions contemplated hereby have been duly
      authorized by all requisite action, if any, in respect thereof on the part
      of
      Purchasers and no other proceedings on the part of Purchasers are necessary
      to
      consummate the transactions contemplated hereby. This Agreement has been duly
      and validly executed and delivered by Purchasers and constitutes a valid and
      binding obligation of Purchasers, enforceable against Purchasers in accordance
      with its terms (subject to applicable bankruptcy, insolvency and similar laws
      affecting creditors’ rights generally and subject, as to enforceability, to
      general principles of equity (whether applied in a proceeding in equity or
      at
      law)).

    

    (I) The
      Purchaser is aware that the offering of the Units involves securities for which
      only a limited trading market exists, thereby requiring any investment to be
      maintained for an indefinite period of time. The purchase of the Units involves
      risks which the Purchaser has evaluated, and the Purchaser is able to bear
      the
      economic risk of the purchase of such Units and the loss of its entire
      investment. The undersigned is able to bear the substantial economic risk of
      the
      investment for an indefinite period of time, has no need for liquidity in such
      investment and can afford a complete loss of such investment. The Purchaser's
      overall commitment to investments that are not readily marketable is not, and
      his acquisition of the Units will not cause such overall commitment to become,
      disproportionate to his net worth and the Purchaser has adequate means of
      providing for its current needs and contingencies.

    

    (J) The
      Purchaser acknowledges and agrees that there is no “minimum” offering amount for
      the Units and that subject to the terms of the escrow arrangement discussed
      above, funds may be immediately released to the Company. 

     

    (K) In
      entering into this Agreement and in purchasing the Units, the Purchaser further
      acknowledges that:

    

    (i)
      The
      Company has informed the Purchaser that the Units have not been offered for
      sale
      by means of general advertising or solicitation and the Purchaser acknowledges
      that it has either a pre-existing personal or business relationship with either
      the Company or any of its officers, directors or controlling person, of a nature
      and duration such as would enable a reasonable prudent investor to be aware
      of
      the character, business acumen, and general business and financial circumstances
      of the Company and an investment in the Units.

    

    (ii)
      Neither the Units nor any interest therein may be resold by the Purchaser in
      the
      absence of a registration under the Securities Act or an exemption from
      registration. In particular, the Purchaser is aware that all of the foregoing
      described Units will be “restricted securities”, as such term is defined in Rule
      144 promulgated under the Securities Act (“Rule 144”), and they may not be sold
      pursuant to Rule 144, unless the conditions thereof are met. Other than set
      forth in this Agreement, the Company has no obligation to register any
      securities purchased or issuable hereunder.

     

    (iii)
      The
      following legends (or similar language) shall be placed on the certificate(s)
      or
      other instruments evidencing the Shares, Warrants and Warrant
      Shares:

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER
      SUCH NOTES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
      OR
      OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO
      IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2)
      THE
      COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH NOTES, WHICH
      COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH NOTES
      MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER
      CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
      APPLICABLE STATE SECURITIES LAWS.

    

    (iv)
      The
      Company may at any time place a stop transfer order on its transfer books
      against the Units. Such stop order will be removed, and further transfer of
      the
      Units will be permitted, upon an effective registration of the respective Units,
      or the receipt by the Company of an opinion of counsel satisfactory to the
      Company that such further transfer may be effected pursuant to an applicable
      exemption from registration.

    

    (L) The
      Company has employed its own legal counsel in connection with the Offering.
      The
      Purchasers have not been represented by independent counsel in connection with
      the preparation of this Agreement or the terms of this Offering and no
      investigation of the merits or fairness of the Offering has been conducted
      on
      behalf of the Purchasers. Prospective Purchasers should consult with their
      own
      legal, tax and financial advisors with respect to the Offering made pursuant
      to
      this Agreement.

    

    (M)  ______________
      (insert
      name of Purchaser Representative: if
      none leave blank)
      has
      acted
      as the Purchaser’s Purchaser Representative for purposes of the private
      placement exemption under the Act. If the Purchaser has appointed a Purchaser
      Representative (which term is used herein with the same meaning as given in
      Rule
      501(h) of Regulation D), the Purchaser has been advised by his Purchaser
      Representative as to the merits and risks of an investment in the Company in
      general and the suitability of an investment in the Units for the Purchaser
      in
      particular. 

    

    (N) The
      undersigned hereby acknowledges that officers, affiliates, employees and
      directors of the Company and/or the Selling Agents may purchase Units in the
      Offering.

    

    (O) It
      never
      has been represented, guaranteed or warranted by any Selling Agent, the Company,
      any of the officers, directors, stockholders, partners, employees or agents
      of
      the Company, or any other persons, whether expressly or by implication, that:
      (i) the Company or the Purchasers will realize any given percentage of profits
      and/or amount or type of consideration, profit or loss as a result of the
      Company’s activities or the Purchaser’s investment in the Company; or (ii) the
      past performance or experience of the management of the Company, or of any
      other
      person, will in any way indicate the predictable results of the ownership of
      the
      Units or of the Company's activities.

    

    (P) The
      Purchaser acknowledges that any delivery to it of this Agreement relating to
      the
      Units prior to the determination by the Company of its suitability as a
      Purchaser shall not constitute an offer of the Units until such determination
      of
      suitability shall be made, and the Purchaser hereby agrees that it shall
      promptly return this Agreement and the other Offering documents to the Company
      upon request. The Purchaser understands that the Company shall have the right
      to
      accept or reject this subscription in whole or in part. Unless this subscription
      is accepted in whole or in part by the Company, this subscription shall be
      deemed rejected in whole.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Article
      IV

    INDEMNIFICATION

    

    4.1  Indemnification
      by the Company.
      The
      Company agrees to defend, indemnify and hold harmless the Purchasers and shall
      reimburse Purchasers for, from and against each claim, loss, liability, cost
      and
      expense (including without limitation, interest, penalties, costs of preparation
      and investigation, and the reasonable fees, disbursements and expenses of
      attorneys, accountants and other professional advisors) (collectively, “Losses”)
      directly or indirectly relating to, resulting from or arising out of any untrue
      representation, misrepresentation, breach of warranty or non-fulfillment of
      any
      covenant, agreement or other obligation by or of the Company contained herein
      or
      in any certificate, document, or instrument delivered to Purchasers pursuant
      hereto.

    

    4.2
        Indemnification
      by Purchasers.
      Purchasers agrees to defend, indemnify and hold harmless the Company and shall
      reimburse The Company for, from and against all Losses directly or indirectly
      relating to, resulting from or arising out of any untrue representation,
      misrepresentation, breach of warranty or non-fulfillment of any covenant,
      agreement or other obligation of the Purchasers contained herein or in any
      certificate, document or instrument delivered to the Company pursuant
      hereto.

    

    4.3
       Procedure.
      The
      indemnified party shall promptly notify the indemnifying party of any claim,
      demand, action or proceeding for which indemnification will be sought under
      Sections 4.1 or 4.2 of this Agreement, and, if such claim, demand, action or
      proceeding is a third party claim, demand, action or proceeding, the
      indemnifying party will have the right at its expense to assume the defense
      thereof using counsel reasonably acceptable to the indemnified party. The
      indemnified party shall have the right to participate, at its own expense,
      with
      respect to any such third party claim, demand, action or proceeding. In
      connection with any such third party claim, demand, action or proceeding,
      Purchasers and the Company shall cooperate with each other and provide each
      other with access to relevant books and records in their possession. No such
      third party claim, demand, action or proceeding shall be settled without the
      prior written consent of the indemnified party, which shall not be unreasonably
      withheld. If a firm written offer is made to settle any such third party claim,
      demand, action or proceeding and the indemnifying party proposes to accept
      such
      settlement and the indemnified party refuses to consent to such settlement,
      then: (i) the indemnifying party shall be excused from, and the indemnified
      party shall be solely responsible for, all further defense of such third party
      claim, demand, action or proceeding; and (ii) the maximum liability of the
      indemnifying party relating to such third party claim, demand, action or
      proceeding shall be the amount of the proposed settlement if the amount
      thereafter recovered from the indemnified party on such third party claim,
      demand, action or proceeding is greater than the amount of the proposed
      settlement.

    

    

    ARTICLE
      V

    OTHER
      AGREEMENTS

    

    5.1   Selling
      Agent Compensation.
      The
      Company intends to engage registered broker-dealers to serve as selling agents
      (the “Selling Agents”), for the sale of the Units and pay commissions and other
      compensation to the Selling Agents who procure purchasers of the Units. We
      will
      pay and issue to each Selling Agent (i) a fee of 10% of the gross proceeds
      of
      the sale of the Units to Purchasers procured by such Selling Agent; (ii) a
      non-accountable expense allowance equal to 3% of the gross proceeds of the
      sale
      of Units to such Purchasers; and (iii) a warrant (the “Agent Warrants”) to
      purchase such number of Shares and Warrants as equals 20% of the total number
      of
      Units sold in the Offering to Purchasers procured by each Selling Agent. Each
      Selling Agent shall also receive a warrant solicitation fee of 10% of the cash
      proceeds from the exercise of the Warrants by those purchasers procured by
      such
      Selling Agent in this Offering that exercised such Warrants and for whom such
      Selling Agent was properly designated as the soliciting broker. Agent Warrants
      shall be exercisable at the per share Purchase Price for a period of five years
      from the date of issuance. Each Selling Agent has also been granted the right,
      on a pro-rata
      basis,
      of first refusal for a period of 24 months from the final Closing Date to serve
      as the Company’s agent on any subsequent financing transaction, including public
      or private offerings of equity or debt securities, excluding commercial bank
      financing arrangements and grants from federal, state or local government
      entities. 

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    5.2 Anti-Dilution
      Protection. (a)
       If
      during
      the
      period commencing on the final Closing and ending upon the date which is 180
      days from the effective date of the registration statement required to be filed
      by the Company pursuant to the Registration Rights Agreement, the Company sells
      additional shares of Common Stock in a capital raising transaction, or
      securities convertible into or exercisable for shares of common stock (or agrees
      to modify any such securities which are outstanding prior to Closing)
      (collectively, the “New Shares”) for a purchase price or conversion or exercise
      price that is less than the Purchase Price without the consent of the
      Purchasers, then the Company shall issue, for each such occasion, subject to
      the
      exceptions set forth below, such number of additional shares of Common Stock
      so
      that per share Purchase Price of the Shares issued hereunder to a Purchaser
      (of
      only the Shares, Warrants or Warrant Shares still owned by the Purchaser) is
      equal to such other lower price per share. In addition, in such an event, the
      terms of the Warrants shall be similarly adjusted in accordance with the terms
      and conditions thereof. The
      number of additional Shares issued to each Purchaser pursuant to this
      anti-dilution protection will be rounded down to the nearest whole share and
      no
      fractional shares will be issued.

    

    (b)
       Notwithstanding
      the foregoing, the following issuances and transactions by the Company shall
      not
      result in any issuance of additional shares of Common Stock (or in any
      adjustment to the Warrants) to Purchasers
      in the
      Offering: (i) upon the exercise or conversion of any warrants, options or
      convertible securities issued and outstanding as of the date hereof or issued
      hereafter under the Company’s Employee Stock Option Plan (as
      adjusted for any stock dividends, combinations, splits, recapitalizations and
      the like, and net of any repurchases of such Units or cancellations or
      exemptions of such options, warrants or other rights); (ii) shares of Common
      Stock issued hereunder or issuable upon exercise of warrants issued in
      connection with the Offering to either a Purchaser or to Selling Agents; (iii)
      shares of Common Stock (or securities convertible into or exercisable for shares
      of Common Stock) which may be issued to consultants, vendors, or distributors
      to
      the Company as consideration for services provided to the Company or to third
      parties in connection with a joint venture, strategic alliance or other
      commercial relationship with such third party relating to the operation of
      the
      Company’s business, the primary purpose of which is not to raise equity capital;
      (iv) the reduction in the exercise price of the common stock purchase warrants
      issued and outstanding prior to the commencement of the Offering as contemplated
      in Section 5.7 of this Agreement; and (v) shares of Common Stock or other
      securities issued in connection with any stock split, stock dividend or
      recapitalization of the Company. 

    

    (c)
       Within
      15
      days following any transaction by the Company which would result in the
      Purchasers
      in the
      Offering being entitled to additional shares of Common Stock hereunder, the
      Company shall provide written notice of such transaction to each Purchaser
      of the
      terms of such transaction and shall, within 30 days of consummation of such
      transaction, deliver share certificates to the Purchasers representing any
      additional Shares. Any
      such
      additional Shares shall be included in the term “Registrable Securities” as
      defined in the Registration Rights Agreement between the Company and the
      Purchaser.

    

    5.3 Conditions
      Precedent to the Obligations of the Purchasers to Purchase
      Units.
      The
      obligation of each Purchaser to acquire Units at the Closing is subject to
      the
      satisfaction or waiver by such Purchaser, at or before the Closing, of each
      of
      the following conditions:

    

    (a) the
      representations and warranties of the Company contained herein shall be true
      and
      correct in all material respects as of the date when made and as of the Closing
      Date as though made on and as of such date; 

    

    (b) the
      Company shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by this Agreement, the
      Registration Rights Agreement and any other agreement or instrument executed
      in
      connection with the Offering (collectively, the “Transaction Documents”) to be
      performed, satisfied or complied with by it at or prior to the Closing;

    

    (c) no
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by any Transaction Document; 

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (d)
       since
      the
      date of execution of this Agreement, no event or series of events shall have
      occurred that reasonably would be expected to have or result in a (i) an adverse
      effect on the legality, validity or enforceability of any Transaction Document,
      or (ii) a material and adverse effect on the results of operations, assets,
      business or condition (financial or otherwise) of the Company; 

    

    (e) the
      Company and the Purchasers shall execute and deliver a Registration Rights
      Agreement substantially in the form of
      Exhibit C;
      and

    

    (f)
       the
      Company shall have obtained such agreements and documents as are reasonably
      required to lock-up the Shares and Warrants issued to those Purchasers that
      were
      referred to a Selling Agent by the Company’s management for a period of time
      commencing on the Closing Date and until six months from the date that such
      Shares or Warrant Shares may be sold publicly pursuant to the registration
      statement contemplated by the Registration Rights Agreement or under Rule 144,
      promulgated by the Securities and Exchange Commission.

    

    5.4 Conditions
      Precedent to the Obligations of the Company to sell Units.
      The
      obligation of the Company to sell Units at the Closing is subject to the
      satisfaction or waiver by the Company, at or before the Closing, of each of
      the
      following conditions:

    

    (a) the
      representations and warranties of each Purchaser contained herein shall be
      true
      and correct in all material respects as of the date when made and as of the
      Closing Date as though made on and as of such date;

    

    (b) each
      Purchaser shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by such Investor at or
      prior to the Closing;

    

    (c) No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents;

    

    (d) the
      Company and the Purchasers shall execute and deliver a Registration Rights
      Agreement substantially in the form of Exhibit
      C;
      and

    

    (e) the
      Company shall have obtained such agreements and documents as are reasonably
      required to lock-up the Shares and Warrants issued to those Purchasers that
      were
      referred to a Selling Agent by the Company’s management for a period of time
      commencing on the Closing Date and until six months from the date that such
      Shares or Warrant Shares may be sold publicly pursuant to the registration
      statement contemplated by the Registration Rights Agreement or under Rule 144,
      promulgated by the Securities and Exchange Commission.

    

    5.5 Right
      of Participation.

    

    (a) Offered
      Securities.
      For a
      period of twelve (12) months from the Effective Date of the Registration
      Statement, the Company will not, directly or indirectly, effect a subsequent
      financing of its securities (whether structured as debt or equity), unless
      in
      each such case the Company shall have first offered to sell to the Purchasers
      in
      this Offering an amount of the securities offered in such subsequent financing
      equal to either (a) 100% of the securities offered in such subsequent financing
      if the subsequent financing is for an amount no greater than the total amount
      of
      Units sold in this Offering or (b) 50% of the securities offered in such
      subsequent financing if the subsequent financing is for an amount in excess
      of
      the total amount of Units sold in this Offering (the securities to be offered
      to
      Purchasers pursuant to this Section being referred to herein in the
“Offered
      Securities”).
      The
      Company shall offer to sell to each Purchaser (A) such Purchaser’s pro
      rata
      share of
      the Offered Securities (the “Basic
      Amount”),
      and
      (B) such additional portion of the Offered Securities as such Purchaser shall
      indicate it will purchase should the other Purchasers subscribe for less than
      their Basic Amounts (the “Undersubscription
      Amount”),
      at a
      price and on such other terms as shall have been specified by the Company in
      writing delivered to such Purchaser (the “Offer”),
      which
      Offer by its terms shall remain open and irrevocable for a period of not less
      than five (5) business days from such Purchaser’s receipt of the terms of the
      Offer in writing (the “Offer
      Period”).
      

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (b) Notice
      of Acceptance.
      Each
      Purchaser that wishes to accept the Offer shall deliver written notice thereof
      (a “Notice
      of Acceptance”)
      to the
      Company prior to the expiration of the Offer Period, specifying the amount
      of
      such Purchaser’s Basic Amount that the Purchaser elects to purchase and, if such
      Purchaser elects to purchase all of its Basic Amount, the Undersubscription
      Amount that Purchaser elects to purchase. If the aggregate of the Basic Amounts
      subscribed for by all Purchasers is less than the total Offered Securities,
      each
      Purchaser who has indicated in its Notice of Acceptance that it wishes to
      purchase Undersubscription Amounts shall be entitled to purchase all
      Undersubscription Amounts it has subscribed for; provided,
      however,
      that if
      the aggregate of the Undersubscription Amounts subscribed for exceed the
      difference between the Offered Securities and the Basic Amounts subscribed
      for
      (the “Available
      Undersubscription Amount”),
      each
      Purchaser who has subscribed for any Undersubscription Amount shall be entitled
      to purchase only that portion of the Available Undersubscription Amount as
      the
      Undersubscription Amount subscribed for by such Purchaser bears to the total
      Undersubscription Amounts subscribed for by all Purchasers, subject to rounding
      by the Board of Directors to the extent it deems reasonably
      necessary.

    

       (c) Permitted
      Sales of Refused Securities.
      In the
      event that Notices of Acceptance are not timely delivered by the Purchasers
      in
      respect of some or all of the Offered Securities, the Company shall have sixty
      (60) days from the expiration of the Offer Period to close the sale of all
      or
      any part of such Offered Securities as to which a Notice of Acceptance has
      not
      been given by an Purchaser (the “Refused
      Securities”)
      to the
      persons or entities specified in the Offer, but only upon terms and conditions,
      including, without limitation, unit price and interest rates (if applicable),
      which are, in the aggregate, no more favorable to such other persons or entities
      or less favorable to the Company than those set forth in the Offer.

    

       (d) Reduction
      in Amount of Offered Securities.
      In the
      event that the Company proposes to sell less than all the Refused Securities
      (any such sale to be in the manner and on the terms specified in paragraph
      (c)
      above), then each Purchaser may, at its option and in its sole and absolute
      discretion, reduce the number or other units of the Offered Securities specified
      in its Notice of Acceptance to an amount which shall be not less than the amount
      of the Offered Securities which such Purchaser elected to purchase pursuant
      to
      paragraph (b) above multiplied by a fraction, (A) the numerator of which shall
      be the amount of Offered Securities which the Company actually proposes to
      sell,
      and (B) the denominator of which shall be the amount of all Offered Securities.
      In the event that any Purchaser so elects to reduce the number or amount of
      Offered Securities specified in its Notice of Acceptance, the Company may not
      sell or otherwise dispose of more than the reduced amount of the Offered
      Securities until such securities have been offered to the Purchasers in
      accordance herewith.

    

    (e) Closing.
      Upon
      each closing of the purchase and sale of Offered Securities, the Purchaser
      shall
      purchase from the Company, and the Company shall sell to the Purchaser the
      number of Offered Securities specified in the Notices of Acceptance, as reduced
      pursuant to paragraph (d) above if the Purchasers have so elected, upon the
      terms and conditions specified in the Offer. The purchase by the Purchasers
      of
      any Offered Securities is subject in all cases to the preparation, execution
      and
      delivery by the Company and the Purchasers of a purchase agreement relating
      to
      such Offered Securities on the same terms and conditions applicable to other
      persons or entities purchasing the Offered Securities.

    

       (f) Further
      Sale.
      In each
      case, any Offered Securities not purchased by the Purchasers or other persons
      or
      entities in accordance herewith may not be sold or otherwise disposed of by
      the
      Company until they are again offered to the Purchasers under the procedures
      specified herein.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    5.6 Post-Closing
      Covenants.

    

    (a) Board
      of Directors.
      The
      Company shall agree to take all necessary action to increase the number of
      individuals serving on its board of directors such that the Company’s board of
      directors shall be comprised of a majority of independent directors, as the
      term
“independence” is defined in the Marketplace Rules of the Nasdaq Stock Market.
      As soon as possible after the final Closing, the Company shall appoint to its
      board of directors at least one independent director nominated for election
      by
      the Purchasers of a majority of Units subscribed for. After such initial
      appointment, the Company shall seek to nominate such individual for reelection
      to the board for at least two subsequent years.

    

    (b) Securities
      Laws Disclosure.
      By 4:30
      p.m. (New York City time) on the trading day immediately following each Closing,
      the Company will issue a press release or Current Report on Form 8-K disclosing
      the execution of this Agreement, the material terms of the transactions
      contemplated hereby and the closing of the transactions contemplated hereby.
      In
      addition, the Company will make such other filings and notices in the manner
      and
      time required by the Commission. 

    

    (c)
       Reporting
      Requirements.
      The
      Company agrees that it will, during the period beginning on the initial Closing
      date and ending on the date on which the Shares and Warrant Shares may be
      publicly sold without limitation pursuant to Rule 144(k) of the Securities
      Act
      (i) cause its Common Stock to continue to be registered under Section 12(b)
      or
      12(g) of the Exchange Act, (ii) comply in all respects with its reporting and
      filing obligations under the Exchange Act, and (iii) use commercially reasonable
      efforts to cause its quarterly reports to be filed under the Exchange Act
      without the need of filing a notice of extension for such filing. 

    

    (d)
       Increase
      of Authorized Capital.
      The
      Company shall, as soon as possible after Closing, but in any event prior to
      the
      effective date of the Registration Statement contemplated by the Registration
      Rights Agreement, (A) obtain the approval of the requisite number of its
      stockholders necessary to amend its Certificate of Incorporation to increase
      the
      number of authorized shares of Common Stock to 950,000,000 shares of Common
      Stock, (B) comply with its obligations under the rules and regulations
      established by the U.S. Securities and Exchange Commission for obtaining such
      shareholder approval; and (C) file an Amendment to its Certificate of
      Incorporation and have such certificate accepted for filing by the Secretary
      of
      State for the State of Nevada. 

    

    5.7 Other
      Transactions.  The
      Company intends to offer to the holders of all of the Company’s currently
      outstanding Class A Common Stock Purchase Warrants, an opportunity to exercise
      such warrants at a reduced exercise price equal to $.01 per share, provided
      such
      warrant holders determine to exercise such warrants with the thirty-day period
      immediately following the Company’s making of such offer. At the conclusion of
      such thirty-day period, the exercise price of all unexercised Class A Warrants
      will be reset to its current price of $.03 per share and will continue to be
      exercisable in accordance with its terms for its stated duration. 

    

    ARTICLE
      VI

    MISCELLANEOUS

    

    6.1  Survival.
      The
      representations and warranties set forth in Articles II and III hereof shall
      survive the Closing. No investigation made by or on behalf of either party
      shall
      affect the representations and warranties made pursuant to this Agreement.
      No
      party makes any additional or implied representations other than those set
      forth
      herein.

    

    6.2  Expenses.
      Each
      party hereto shall bear and pay all costs and expenses incurred by it in
      connection with the transactions contemplated hereby, including fees and
      expenses of its own brokers, finders, financial consultants, accountants and
      counsel. 

    

    6.3
        Entire
      Agreement.
      This
      Agreement, including the Exhibits, contains the entire agreement and
      understanding of the parties with respect to its subject matter. This Agreement
      supersedes all prior arrangements and understandings between the parties, either
      written or oral, with respect to its subject matter.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    6.4  Binding
      Effect of Subscription.
      The
      Purchaser hereby acknowledges and agrees, subject to any applicable state
      securities laws that the subscription and application hereunder are irrevocable,
      that the Purchaser is not entitled to cancel, terminate or revoke this Agreement
      and that this Agreement shall survive the death or disability of the Purchaser
      and shall be binding upon and inure to the benefit of the Purchaser and his
      heirs, executors, administrators, successors, legal representatives, and
      assigns. If the Purchaser is more than one person, the obligations of the
      Purchaser hereunder shall be joint and several, and the agreements,
      representations, warranties, and acknowledgments herein contained shall be
      deemed to be made by and be binding upon each such person and his heirs,
      executors, administrators, successors, legal representatives, and
      assigns.

    

    6.5  Captions.
      The
      table of contents and captions contained in this Agreement are for reference
      purposes only and are not part of this Agreement.

    

    6.6 Amendments;
      Waivers.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed, in the case of an amendment, by the Company and the
      Purchasers holding a majority of the Units subscribed for in the Offering or,
      in
      the case of a waiver, by the party against whom enforcement of any such waiver
      is sought
      (in the
      case of the Purchasers, such waiver shall be in writing and approved by a
      majority of the Purchasers).
      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 either party to
      exercise any right hereunder in any manner impair the exercise of any such
      right. 

    

    6.7 Notices.
      Any
      notice, demand or other communication which any party hereto may be required,
      or
      may elect, to give to anyone interested hereunder shall be sufficiently given
      if
      (a) deposited, postage prepaid, in a United States mail box, stamped, registered
      or certified mail, return receipt requested, addressed to such address as may
      be
      listed on the books of the Company, or, if to the Company, the Company’s
      executive office, or (b) delivered personally at such address.

    

    6.8 Execution.
      This
      Agreement may be executed through the use of separate signature pages or in
      any
      number of counterparts, and each of such counterparts shall, or all purposes,
      constitute one agreement binding on all parties, notwithstanding that all
      parties are not signatories to the same counterpart.

    

    6.9 Severability.
      Each
      provision of this Agreement is intended to be severable from every other
      provisions, and the invalidity or illegality of any portion hereof, shall not
      affect the validity or legality of the remainder hereof.

    

    6.10 Non-Assignment.
      This
      Agreement is not transferable or assignable by the Purchaser except as may
      be
      provided herein.

    

    6.11 Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement 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. Each party agrees that all proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement (whether brought against a party hereto or its
      respective Affiliates, employees or agents) shall be commenced exclusively
      in
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan (the “New
      York Courts”).
      Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      New
      York Courts for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein, and
      hereby irrevocably waives, and agrees not to assert in any proceeding, any
      claim
      that it is not personally subject to the jurisdiction of any New York Court,
      or
      that such proceeding has been commenced in an improper or inconvenient forum.
      Each party hereto hereby irrevocably waives personal

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    service
      of process and consents to process being served in any such proceeding by
      mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) 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 contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto hereby irrevocably waives, to the fullest
      extent permitted by applicable law, any and all right to trial by jury in any
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If either party shall commence a proceeding to enforce
      any
      provisions of this Agreement, then the prevailing party in such proceeding
      shall
      be reimbursed by the other party for its reasonable attorney’s fees and other
      reasonable costs and expenses incurred with the investigation, preparation
      and
      prosecution of such Proceeding.

    

    6.12  Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the Company, the
      Purchasers and their respective successors and permitted assigns. 

    

    

    Signature
      page to Securities Purchase Agreement Follows

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    SIGNATURE
      PAGE TO SECURITIES PURCHASE AGREEMENT

    

    IN
      WITNESS WHEREOF, the parties hereto have executed or caused this Agreement
      to be
      executed by their signature as natural persons or by individuals by their duly
      authorized officers as of the __ day of _______, 2006.

    

    THE
      COMPANY:

    

    NANOSENSORS,
      INC.:

    

    

    _______________________

    By:
      Ted
      Wong

    Chief
      Executive Officer 

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
 

    EXECUTION
      BY AN INDIVIDUAL

    (Not
      applicable to entities)

    

    

    IF
      YOU
      ARE PURCHASING SECURITIES WITH YOUR SPOUSE, YOU MUST BOTH SIGN THIS SIGNATURE
      PAGE.

    

     PLEASE
      INDICATE DESIRED TYPE OF OWNERSHIP OF SECURITIES:

    

    

    [  ] 
Individual

    

    [  ] 
Joint
      Tenants (rights of survivorship)

    

    [  ] 
Tenants
      in Common (no rights of survivorship)

    

    I
      represent that the foregoing information is true and correct.

    

    IN
      WITNESS WHEREOF, the undersigned has duly executed this Securities Purchase
      Agreement and agrees to the terms hereof. 

    

    Dated:
      __________________ _____2006

    

    Subscription
      Amount: $_____________

    

    Number
      of
      Shares of Common Stock to be purchased: _______________ 

    

    Number
      of
      Warrants to be purchased: ___________

    

    

    

    _____________________________________________

    (Name
      of
      Investor - Please Print)

    

    

    _____________________________________________

    (Signature)

    

    

    _____________________________________________

    (Name
      of
      co-Investor - Please Print)

    

    

    _____________________________________________

    (Signature
      of Co-Investor)

    

     

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
 

    PARTNERSHIP
      SIGNATURE PAGE

    

    

    The
      undersigned PARTNERSHIP hereby represents and warrants that the person signing
      this Securities
      Purchase
      Agreement on behalf of the PARTNERSHIP is a general partner of the PARTNERSHIP,
      has been duly authorized by the PARTNERSHIP to acquire the Units and sign this
      Securities
      Purchase
      Agreement on behalf of the PARTNERSHIP and, further, that the undersigned
      PARTNERSHIP has all requisite authority to purchase such Units and enter into
      the Securities
      Purchase
      Agreement.

    

    IN
      WITNESS WHEREOF, the undersigned has duly executed this Securities Purchase
      Agreement and agrees to the terms hereof. 

    

    Dated:
      __________________ _____2006

    

    Subscription
      Amount: $_____________

    

    Number
      of
      Shares of Common Stock to be purchased: _______________ 

    

    Number
      of
      Warrants to be purchased: ___________

     

     

    
 

    
      	 	
              _____________________________________________

            
	 	
              Name
                of Partnership

            
	 	
              (Please
                Type or Print)

            
	 	 
	 	
              By: 
                ________________________________________________

            
	 	
              (Signature)

            
	 	 
	 	
              Name:
                ______________________________________________

            
	 	
              (Please
                Type or Print)

            
	 	 
	 	
              Title: 
                ______________________________________________

            
	 	
              (Please
                Type or Print)

            

    

    

    

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
 

    CORPORATION/LIMITED
      LIABILITY COMPANY SIGNATURE PAGE

    

    

    The
      undersigned CORPORATION or LIMITED LIABILITY COMPANY hereby represents and
      warrants that the person signing this Securities
      Purchase
      Agreement on behalf of the CORPORATION or LIMITED LIABILITY COMPANY has been
      duly authorized by all requisite action on the part of the CORPORATION or
      LIMITED LIABILITY COMPANY to acquire the Units and sign this Securities
      Purchase
      Agreement on behalf of the CORPORATION or LIMITED LIABILITY COMPANY and,
      further, that the undersigned CORPORATION or LIMITED LIABILITY COMPANY has
      all
      requisite authority to purchase the Units and enter into this Securities
      Purchase
      Agreement.

    

    IN
      WITNESS WHEREOF, the undersigned has duly executed this Securities Purchase
      Agreement and agrees to the terms hereof. 

    

    Dated:
      __________________ _____2006

    

    Subscription
      Amount: $_____________

    

    Number
      of
      Shares of Common Stock to be purchased: _______________ 

    

    Number
      of
      Warrants to be purchased: ___________

     

     

    
 

    
      	 	_____________________________________________ 
	 	
              Name
                of Corporation

            
	 	
              Or
                Limited Liability Company

            
	 	
              (Please
                Type or Print)

            
	 	 
	 	
              By: 
                ________________________________________________

            
	 	
              Signature

            
	 	 
	 	
              Name: 
                ______________________________________________

            
	 	
              (Please
                Type or Print)

            
	 	 
	 	
              Title: 
                _______________________________________________

            
	 	
              (Please
                Type or Print)

            

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    TRUST/RETIREMENT
      PLAN SIGNATURE PAGE

    

    

    The
      undersigned TRUST or RETIREMENT PLAN hereby represents and warrants that the
      persons signing this Securities
      Purchase
      Agreement on behalf of the TRUST or RETIREMENT PLAN are duly authorized to
      acquire the Units and sign this Securities
      Purchase
      Agreement on behalf of the TRUST or RETIREMENT PLAN and, further, that the
      undersigned TRUST or RETIREMENT PLAN has all requisite authority to purchase
      such Units and enter into the Securities
      Purchase
      Agreement.

    

    

    IN
      WITNESS WHEREOF, the undersigned has duly executed this Securities Purchase
      Agreement and agrees to the terms hereof. 

    

    Dated:
      __________________ _____2006

    

    Subscription
      Amount: $_____________

    

    Number
      of
      Shares of Common Stock to be purchased: _______________ 

    

    Number
      of
      Warrants to be purchased: ___________

    

    

    
      	 	_____________________________________________ 
	 	
              Title
                of Trust or Retirement Plan

            
	 	
              (Please
                Type or Print)

            
	 	 
	 	
              By: 
                ________________________________________________

            
	 	
              Signature
                of Trustee or 

            
	 	
              Authorized
                Signatory

            
	 	 
	 	
              Name
                of Trustee: 
______________________________________

            
	 	
              (Please
                Type or Print)

            
	 	 
	 	
              By: 
                ________________________________________________

            
	 	
              Signature
                of Co-Trustee if applicable

            
	 	 
	 	
              Name
                of Co-Trustee: 
___________________________________

            
	 	
              (Please
                Type or Print)

            

    

    

    

     

    
      
        
        

      

      
        22EXHIBIT
      C

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    

    This
      Registration Rights Agreement (this “Agreement”)
      is made
      and entered into as of ___________, 2006, by and among Nanosensors, Inc., a
      Nevanda corporation (the “Company”),
      and
      the investors signatory hereto (each an “Investor”
      and
      collectively, the “Investors”).

    

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof among the Company and the Investors (the “Purchase
      Agreement”).

    

    The
      Company and the Investors hereby agree as follows: 

    

    1. 
Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement shall have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms shall have the
      respective meanings set forth in this Section 1:

    

    “Effective
      Date”
      means
      the date that the Registration Statement filed pursuant to Section 2(a) is
      first
      declared effective by the Commission.

    

    “Effectiveness
      Date”
      means:
      with respect to the Registration Statement required to be filed pursuant to
      Section 2(a) to cover the resale by the Holders of the Registrable Securities,
      the earlier of: (a)(i) the 100th
      calendar
      day following the Filing Date; provided,
      that,
      if the Commission reviews and has written comments to the filed Registration
      Statement that would require the filing of a pre-effective amendment thereto
      with the Commission, then the Effectiveness Date under this clause (a)(i) shall
      be the 120th
      calendar
      day following the Filing Date, and (ii) the fifth Trading Day following the
      date
      on which the Company is notified by the Commission that the initial Registration
      Statement will not be reviewed or is no longer subject to further review and
      comments.

    

    “Effectiveness
      Period” shall
      have the meaning set forth in Section 2(a).

    

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended.

    

    “Filing
      Date”
      means
      with respect to the Registration Statement required to be filed pursuant to
      Section 2(a) to cover the resale by the Holders of the Registrable Securities,
      the 40th
      calendar
      day following the final Closing Date.

    

    “Holder”
      or
“Holders”
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

    

    “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).

    

    “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 a 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 or deemed
      to be incorporated by reference in such Prospectus.

    

    “Registrable
      Securities”
      means
      (i) the shares of Common Stock issued to an Investor pursuant to the Purchase
      Agreement; (ii) the shares of Common Stock issuable upon exercise of the
      Warrants issued to a Investor pursuant to the Purchase Agreement; (iii) shares
      of Common Stock which may be issued from time to time by the Company to the
      Investors pursuant to the anti-dilution provisions of the of the Purchaser
      Agreement and the Warrants; and (iv) shares of Common Stock which may be issued
      from time to time by the Company (with any adjustments) in replacement of,
      in
      exchange for or otherwise in respect of the Shares or the Warrant
      Shares.

    

    “Registration
      Statement”
      means
      the initial registration statement required to be filed in accordance with
      Section 2(a) and any additional registration statement(s) required to be filed
      under Section 2(b), including (in each case) the Prospectus, amendments and
      supplements to such registration statements or Prospectus, including pre- and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference or deemed to be incorporated by reference in such registration
      statements.

    

    “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
      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.

    

    “Rule
      424”
      means
      Rule 424 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.

    

    “Selling
      Holder Questionnaire” shall
      have the meaning set forth in Section 2(g).

    

    “Shares”
      means
      the shares of Common Stock issued or issuable to the Investors pursuant to
      the
      Purchase Agreement.

    

    “Trading
      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.

    

    “Warrants”
      means
      the Common Stock Purchase Warrants issued to the Investors pursuant to the
      Purchase Agreement.

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    

    2. 
Registration.

    

    (a) Required
      Registration.
      On or
      prior to the Filing Date, the Company shall prepare and file with the Commission
      a Registration Statement covering the resale of all Registrable Securities
      not
      already covered by an existing and effective Registration Statement for an
      offering to be made on a continuous basis pursuant to Rule 415. The Registration
      Statement shall be on Form SB-2 (or on another appropriate form for such
      purpose) and shall contain (except if otherwise required pursuant to written
      comments received from the Commission upon a review of such Registration
      Statement) the “Plan of Distribution” attached hereto as Annex
      A.
      The
      Company shall cause the Registration Statement to be declared effective under
      the Securities Act as soon as possible but, in any event, no later than the
      Effectiveness Date, and shall use its best efforts to keep the Registration
      Statement continuously effective under the Securities Act until the date which
      is the earlier of (i) two years after the Effective Date, (ii) at such time
      as
      all of the Registrable Securities have been publicly sold by the Holders, or
      (iii) at such time as all of the Registrable Securities may be sold pursuant
      to
      Rule 144(k) (the “Effectiveness
      Period”).
      

    

    (b) Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and 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, then the Company
      shall send to each Holder written notice of such determination and, if within
      fifteen days after receipt of such notice, any such Holder shall so request
      in
      writing, the Company shall include in such registration statement all or any
      part of such Registrable Securities such holder requests to be registered,
      subject to customary underwriter cutbacks applicable to all holders of
      registration rights as described herein. If an offering in connection with
      which
      a Holder is entitled to registration under this Section 2(b) is an underwritten
      offering, then each Holder whose Registrable Securities are included in such
      Registration Statement shall, unless otherwise agreed to by the Company, offer
      and sell such Registrable Securities in an underwritten offering using the
      same
      underwriter or underwriters and, subject to the provisions of this Agreement,
      on
      the same terms and conditions as other shares of Common Stock included in such
      underwritten offering. If a registration pursuant to this Section 2(b) is to
      be
      an underwritten public offering and the managing underwriter(s) advise the
      Company in writing that, in their reasonable good faith opinion, marketing
      or
      other factors dictate that a limitation on the number of shares of Common Stock
      which may be included in the Registration Statement is necessary to facilitate
      and not adversely affect the proposed offering, then the Company shall include
      in such registration: (1) first, all securities the Company proposes to sell
      for
      its own account, (2) second, up to the full number of securities proposed to
      be
      registered for the account of the holders of securities entitled to inclusion
      of
      their securities in the Registration Statement by reason of demand registration
      rights, and (3) third, the securities requested to be registered by the Holders
      and other holders of securities entitled to participate in the registration,
      as
      of the date hereof, drawn from them pro
      rata
      based on
      the number each has requested to be included in such registration.

    

    (c) If:
      (i)
      the Registration Statement required by Section 2(a) is not filed on or prior
      to
      its Filing Date, or (ii) the Registration Statement required by Section 2(a)
      is
      not declared effective by the Commission on or prior to its required
      Effectiveness Date, or (iii) after its Effective Date, without regard for the
      reason thereunder or efforts therefore, such Registration Statement ceases
      for
      any reason to be effective and available to the Holders as to all Registrable
      Securities to which it is required to cover at any time prior to the expiration
      of its Effectiveness Period for an aggregate of more than an aggregate of 20
      Trading Days during any twelve month period (which need not be consecutive)
      (any
      such failure or breach being referred to as an “Event,”
      and for
      purposes of clauses (i) or (ii) the date on which such Event occurs, or for
      purposes of clause (iii) the date which such 20 Trading Day-period is exceeded,
      being referred to as “Event
      Date”),
      then,
      in addition to any other rights available to the Holders under the Transaction
      Documents or under applicable law: within five (5) calendar days from the end
      of
      each month in which an Event occurs or continues, the Company shall pay to
      each
      Holder an amount in cash, as liquidated damages and not as a penalty, equal
      to
      2% of purchase price paid by each Investor for each full month in which an
      Event
      occurred or continued and pro-rata
      for any
      partial month in which an Event occurred or continued, until the applicable
      Event is cured, but in no event for a period of time greater than six (6)
      consecutive months, for any Event. In the event the Registration Statement
      required to be filed pursuant to Section 2(a) is not declared effective by
      the
      Commission within 180 days from the final Closing, each Holder shall have the
      right to demand the return of its Escrowed Amount (as such term is defined
      in
      the Purchase Agreement) in accordance with the terms and conditions set forth
      in
      the Purchase Agreement and in such event the number of Registrable Securities
      held by a Holder demanding a return of funds shall be reduced in proportion
      to
      the amount of Escrowed Funds returned to such Holder. 

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (d) At
      the
      option of the Company, the Company may, in lieu of making the cash payments
      referred to in the immediately preceding paragraph, issue to each Holder upon
      any Event and monthly anniversary thereof, an amount in shares common stock
      (an
“Event
      Issuance”)
      equal
      to 2% of the purchase price paid by such Holder pursuant to the Purchase
      Agreement, subject to the limitations set forth in the immediately preceding
      paragraph, based on the five-day average of the closing bid price of the
      Company’s common stock as reported on the principal trading market for the
      Company’s Common Stock for the five Trading Days immediately preceding the date
      of the Event or applicable monthly anniversary thereof. In the event shares
      of
      Common Stock are issued to the Holders pursuant to this provision, such shares
      shall also be deemed Registrable Securities covered by the terms of this
      Registration Rights Agreement. Notwithstanding the foregoing, however, the
      Company shall be obliged to pay the liquidated damages amounts to the Holders
      in
      cash in the event that any one of the following events or conditions exists:
      (i)
      the payment to be made in Common Stock causes the number of shares of Common
      Stock beneficially owned by any Holder to exceed 4.99% of the total number
      of
      shares of Common Stock then outstanding; (ii) the Registration Statement shall
      have been declared effective and is subject to a stop order or such other
      suspension imposed by the Commission; and (iii) the Common Stock is not listed
      for trading on either of the OTC Bulletin Board, Nasdaq National Market, the
      Nasdaq SmallCap Market, the American Stock Exchange or the New York Stock
      Exchange or trading in the Common Stock on such market or exchange has been
      suspended. 

    

    (e) No
      Event
      shall be deemed to occur or continue in the event such Event is caused by delays
      which are solely attributable to (i) changes required by the Holders in the
      Registration Statement with respect to information relating to the Holders,
      (ii)
      the failure of the Holders to conduct their review of the Registration
      Statement, or (iii) the resolution of comments from the SEC pertaining to the
      Selling Agents or Holders.

    

    (f) Each
      Holder acknowledges and agrees that the Company intends to include in any such
      Registration Statement filed pursuant to this Registration Statement, (i) the
      shares of Common Stock issuable to the Selling Agents upon the exercise of
      the
      Agent Warrants, as set forth in the Purchase Agreement; and (ii) the shares
      of
      Common Stock and Warrants which were previously registered by the Company on
      a
      registration statement on Form SB-2 which was initially declared effective
      on
      January 12, 2005 and which registration statement is no longer current; (iii)
      shares of Common Stock and shares issuable upon exercise of warrants issued
      and
      which may be issued by the Company in a private transaction in November 2005;
      and (iv) an additional 2,325,000 shares underlying other warrants issued by
      the
      Company.

    

    (g) Each
      Holder agrees to furnish to the Company a completed Questionnaire in the form
      attached to this Agreement as Annex
      B
      (a
“Selling
      Holder Questionnaire”).
      The
      Company shall not be required to include the Registrable Securities of a Holder
      in a Registration Statement and shall not be required to pay any liquidated
      or
      other damages hereunder to such Holder who fails to furnish to the Company
      a
      fully completed Selling Holder Questionnaire at least one Trading Day prior
      to
      the Filing Date (subject to the requirements set forth in Section
      3(a)).

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    3. 
Registration
      Procedures

    

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

    

    (a) Not
      less
      than four Trading Days prior to the filing of a Registration Statement or any
      related Prospectus or any amendment or supplement thereto, the Company shall
      furnish to the Holders copies of the “Selling Stockholders” section of such
      document, the “Plan of Distribution” and any risk factor contained in such
      document that addresses specifically this transaction or the Selling
      Stockholders, as proposed to be filed which documents will be subject to the
      review of such Holders. Except as provided under Section 2(g), the Company
      shall
      not file a Registration Statement or any such Prospectus or any amendments
      or
      supplements thereto that does not contain the disclosure listing such Holder
      as
      a “Selling Stockholder” as provided to the Company by such Holder in accordance
      with Section 2(g).

    

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to each Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep such Registration Statement continuously
      effective as to the applicable Registrable Securities for its Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement, and as so supplemented
      or
      amended to be filed pursuant to Rule 424; (iii) respond as promptly as
      reasonably possible to any comments received from the Commission with respect
      to
      each Registration Statement or any amendment thereto and, as promptly as
      reasonably possible provide the Holders true and complete copies of all
      correspondence from and to the Commission relating to such Registration
      Statement that would not result in the disclosure to the Holders of material
      and
      non-public information concerning the Company; and (iv) comply in all material
      respects with the provisions of the Securities Act and the Exchange Act with
      respect to the Registration Statements and the disposition of all Registrable
      Securities covered by each Registration Statement.

    

    (c) Notify
      the Holders as promptly as reasonably possible (and, in the case of (i)(A)
      below, not less than three Trading Days prior to such filing) and (if requested
      by any such Person) confirm such notice in writing no later than one Trading
      Day
      following the day (i)(A) when a Prospectus or any Prospectus supplement or
      post-effective amendment to a Registration Statement is proposed to be filed;
      (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 (the Company shall provide true and complete copies
      thereof and all written responses thereto to each of the Holders that pertain
      to
      the Holders as a Selling Stockholder or to the Plan of Distribution, but not
      information which the Company believes would constitute material and non-public
      information); and (C) with respect to each Registration Statement or any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental authority
      for amendments or supplements to a Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission of any stop
      order suspending the effectiveness of a Registration Statement covering any
      or
      all of the Registrable Securities or the initiation of any Proceedings for
      that
      purpose; (iv) of the receipt by the Company of any notification with respect
      to
      the suspension of the qualification or exemption from qualification of any
      of
      the Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threatening of any Proceeding for such purpose; and (v) of the occurrence of
      any
      event or passage of time that makes the financial statements included in a
      Registration Statement ineligible for inclusion therein or any statement made
      in
      such 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 such Registration Statement, Prospectus or other
      documents so that, in the case of such 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 light of the circumstances under which they
      were
      made, not misleading.

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    (d) Use
      commercially reasonable efforts to avoid the issuance of, or, if issued, obtain
      the withdrawal of (i) any order suspending the effectiveness of a 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 moment.

    

    (e) Furnish
      to each Holder, upon request, without charge, at least one conformed copy of
      each Registration Statement and each amendment thereto and all exhibits to
      the
      extent requested by such Person (including those previously furnished) promptly
      after the filing of such documents with the Commission.

    

       (f)
       Promptly
      deliver to each Holder, without charge, as many copies of each Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request. 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. 

    

      (g) The
      Company shall use commercially reasonable efforts to (i) register and qualify
      the Registrable Securities covered by a Registration Statement under such other
      securities or “blue sky” laws of such jurisdictions in the United States as any
      Holder reasonably requests to enable such Holder to consummate the public sale
      or other disposition of the Registrable Securities in such jurisdictions, (ii)
      prepare and file in those jurisdictions such amendments (including
      post-effective amendments) and supplements to such registrations and
      qualifications as may be necessary to maintain the effectiveness thereof during
      the Registration Period, (iii) take such other actions as may be necessary
      to
      maintain such registrations and qualifications in effect at all times during
      the
      Registration Period, and (iv) take all other actions reasonably necessary or
      advisable to qualify the Registrable Securities for sale in such jurisdictions;
      provided, however, that the Company shall not be required in connection
      therewith or as a condition thereto to (x) qualify to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      Section 3(g), (y) subject itself to general taxation in any such jurisdiction,
      or (z) file a general consent to service of process in any such jurisdiction.
      The Company shall promptly notify each Holder who holds Registrable Securities
      of the receipt by the Company of any notification with respect to the suspension
      of the registration or qualification of any of the Registrable Securities for
      sale under the securities or “blue sky” laws of any jurisdiction in the United
      States or its receipt of actual notice of the initiation or threatening of
      any
      proceeding for such purpose.

    

    (h) Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be delivered to a transferee
      pursuant to the Registration Statements, which certificates shall be free,
      to
      the extent permitted by 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 such Holders may request.

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    (i) Upon
      the
      occurrence of any event contemplated by Section 3(c)(v), as promptly as
      reasonably possible, prepare a supplement or amendment, including a
      post-effective amendment, to the affected Registration Statements 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, no Registration Statement nor any 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
      light of the circumstances under which they were made, not
      misleading.

    

    4. 
Obligations
      of the Holders.
      In
      addition to its obligation to accurately and completely complete and return
      the
      Selling Securityholder Questionnaire in accordance with Section 2(g) of this
      Registration Rights Agreement, each Holder shall comply with the obligations
      described herein:

     

      (a) Each
      Holder by such Holder’s acceptance of the Registrable Securities agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of any Registration Statement hereunder, unless
      such Holder has notified the Company in writing of such Holder’s election to
      exclude all of such Holder’s Registrable Securities from such Registration
      Statement.

    

    (b) Each
      Holder agrees that, upon receipt of any notice from the Company of the happening
      of any event of the kind described in Section 3(c)(iii)-(v), such Holder will
      immediately discontinue disposition of Registrable Securities pursuant to any
      Registration Statement(s) covering such Registrable Securities until such
      Holder’s receipt of the copies of the supplemented or amended Prospectus
      contemplated by such Section or such other notice from the Company that the
      Holders may continue disposing of Registrable Securities pursuant to the
      Registration Statement.

     

       (c) Each
      Holder agrees not to take any action to cause such Holder to become a registered
      broker-dealer, as defined under the Exchange Act.

    

    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, investment advisors,
      partners, members 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, reasonable 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 in any 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
      supplement thereto, in light of the circumstances under which they were made)
      not misleading, except to the extent, but only to the extent, that (1) such
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder's proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in
      the Registration Statement, such Prospectus or such form of Prospectus or in
      any
      amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose) or (2) in the case of an occurrence
      of
      an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
      of an outdated or defective Prospectus after the Company has notified such
      Holder in writing that the Prospectus is outdated or defective and prior to
      the
      receipt by such Holder of an Advice (as defined in Section 6(d) below) or an
      amended or supplemented Prospectus, but only if and to the extent that following
      the receipt of the Advice or the amended or supplemented Prospectus the
      misstatement or omission giving rise to such Loss would have been corrected.
      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.

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    (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 or 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: (x) such Holder's failure to comply with the prospectus delivery
      requirements of the Securities Act or (y) any untrue statement of a material
      fact contained in any 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 not misleading to the
      extent, but only to the extent that, (1) such untrue statements or omissions
      are
      based solely upon information regarding such Holder furnished in writing to
      the
      Company by such Holder expressly for use therein, or to the extent that such
      information relates to such Holder or such Holder's proposed method of
      distribution of Registrable Securities and was reviewed and expressly approved
      in writing by such Holder expressly for use in the Registration Statement (it
      being understood that the Holder has approved Annex A hereto for this purpose),
      such Prospectus or such form of Prospectus or in any amendment or supplement
      thereto or (2) in the case of an occurrence of an event of the type specified
      in
      Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder in writing that the
      Prospectus is outdated or defective and prior to the receipt by such Holder
      of
      an Advice or an amended or supplemented Prospectus, but only if and to the
      extent that following the receipt of the Advice or the amended or supplemented
      Prospectus the misstatement or omission giving rise to such Loss would have
      been
      corrected.

    

    (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 shall promptly notify the Person from whom indemnity is sought
      (the "Indemnifying
      Party")
      in
      writing, and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to the Indemnified Party
      and
      the payment of all fees and expenses incurred in connection with defense
      thereof; 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; (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
      by counsel that a conflict of interest is likely to exist if the same counsel
      were to represent such Indemnified Party and the Indemnifying Party (in which
      case, if such Indemnified Party notifies the Indemnifying Party in writing
      that
      it elects to employ separate counsel at the expense of the Indemnifying Party,
      the Indemnifying Party shall not have the right to assume the defense thereof
      and such counsel shall be at the expense of the Indemnifying Party). 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.

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    All
      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 Trading Days of written notice
      thereof to the Indemnifying Party (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).

    

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party (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.

    

    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.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

    6. 
Miscellaneous

    

    (a) 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 any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including,

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

     without
      limitation, fees and expenses (A) with respect to filings required to be made
      with any trading market on which the Common Stock is then listed for trading,
      and (B) in compliance with applicable state securities or Blue Sky laws), (ii)
      printing expenses (including, without limitation, expenses of printing
      certificates for Registrable Securities and of printing prospectuses if the
      printing of prospectuses is reasonably requested by the holders of a majority
      of
      the Registrable Securities included in the Registration Statement), (iii)
      messenger, telephone and delivery expenses, (iv) fees and disbursements of
      counsel for the Company, (v) Securities Act liability insurance, if the Company
      so desires such insurance, and (vi) fees and expenses of all other Persons
      retained by the Company in connection with the consummation of the transactions
      contemplated by this Agreement. In addition, the Company shall be responsible
      for all of its internal expenses incurred in connection with the consummation
      of
      the transactions contemplated by this Agreement (including, without limitation,
      all salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder.

    

    (b) 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.

    

    (c) Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

    

    (d) Discontinued
      Disposition.
      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), 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 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. The Company may provide appropriate stop orders to
      enforce the provisions of this paragraph.

    

    (e) Amendments
      and Waivers.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company and the Investors holding a majority of the
      Registrable Securities. 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 either party to exercise any right hereunder in any manner impair
      the exercise of any such right.

    

    (f) 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 (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile telephone number specified in this
      Section prior to 5:30 p.m. (New York City time) on a Trading Day, (ii) the
      Trading Day after the date of transmission, if such notice or communication
      is

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    delivered
      via facsimile at the facsimile telephone number specified in this Agreement
      later than 5:30 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 Trading Day following the
      date
      of mailing, if sent by nationally recognized overnight courier service, or
      (iv)
      upon actual receipt by the party to whom such notice is required to be given.
      The address for such notices and communications shall be as
      follows:

     

    

      
        	 	
                If
                  to the Company:

              	
                Nanosensors,
                  Inc.

              
	 	 	
                1800
                  Wyatt Drive, Suite #2

              
	 	 	
                Santa
                  Clara, CA 95054 

              
	 	 	
                Facsimile
                  No.: (408) 855-0079 

              
	 	 	
                Telephone:
                  (408) 855-0051

              
	 	 	
                Attn:
                  President 

              
	 	 	 
	 	
                With
                  a copy to:

              	
                Goldstein
                  & Digioia, LLP

              
	 	 	
                45
                  Broadway, 11th Floor

              
	 	 	
                New
                  York, NY 10006

              
	 	 	
                Facsimile
                  No.: (212) 557-0295

              
	 	 	
                Attn:
                  Victor DiGioia, Esq.

              
	 	 	 
	 	
                If
                  to a Investor:

              	
                To
                  the address set forth under such Investor's name on the signature
                  pages
                  hereto.

              
	 	 	 
	 	
                If
                  to any other Person who is then the registered Holder:

              
	 	 	 
	 	 	
                To
                  the address of such Holder as it appears in the stock transfer
                  books of
                  the Company

              

      

    

    
 

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

    

    (g) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of each Holder. Each Holder may assign its respective
      rights hereunder in the manner and to the Persons as permitted under the
      Purchase Agreement.

    

    (h) Execution
      and Counterparts.
      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 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.

    

    (i) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement 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. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement (whether brought against a party hereto or its
      respective Affiliates, employees or agents) shall be commenced exclusively
      in
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan (the “New
      York Courts”).
      Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      New
      York Courts for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed 

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    herein,
      and hereby irrevocably waives, and agrees not to assert in any Proceeding,
      any
      claim that it is not personally subject to the jurisdiction of any New York
      Court, or that such Proceeding has been commenced in an improper or inconvenient
      forum. Each party hereto hereby irrevocably waives personal service of process
      and consents to process being served in any such Proceeding by mailing a copy
      thereof via registered or certified mail or overnight delivery (with evidence
      of
      delivery) 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 contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by law.
      Each party hereto hereby irrevocably waives, to the fullest extent permitted
      by
      applicable law, any and all right to trial by jury in any Proceeding arising
      out
      of or relating to this Agreement or the transactions contemplated hereby. If
      either party shall commence a Proceeding to enforce any provisions of this
      Agreement, then the prevailing party in such Proceeding shall be reimbursed
      by
      the other party for its attorney’s fees and other costs and expenses incurred
      with the investigation, preparation and prosecution of such
      Proceeding.

    

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

    

    (k) 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, 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 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.

    

    (l) Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    (m) Independent
      Nature of Investors' Obligations and Rights.
      The
      obligations of each Investor hereunder is several and not joint with the
      obligations of any other Investor hereunder, and no Investor shall be
      responsible in any way for the performance of the obligations of any other
      Investor hereunder. The decision of each Investor to purchase Securities
      pursuant to the Transaction Documents has been made independently of any other
      Investor. Nothing contained herein or in any other agreement or document
      delivered at any closing, and no action taken by any Investor pursuant hereto
      or
      thereto, shall be deemed to constitute the Investors as a partnership, an
      association, a joint venture or any other kind of entity, or create a
      presumption that the Investors are in any way acting in concert with respect
      to
      such obligations or the transactions contemplated by this Agreement. Each
      Investor acknowledges that no other Investor has acted as agent for such
      Investor in connection with making its investment hereunder and that no Investor
      will be acting as agent of such Investor in connection with monitoring its
      investment in the Securities or enforcing its rights under the Transaction
      Documents. Each Investor shall be entitled to protect and enforce its rights,
      including without limitation the rights arising out of this Agreement, and
      it
      shall not be necessary for any other Investor to be joined as an additional
      party in any Proceeding for such purpose.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES TO FOLLOW]

    

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    

    

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

    

    NANOSENSORS,
      INC.

    

    

    By:_________________________________ 

    Name:
      Ted
      Wong 

    Title:
      Chief Executive Officer

    

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES OF INVESTOR TO FOLLOW]

    

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    
 

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

    

    [INVESTOR]

    

    

    By:_____________________________________

    Name:

    Title:

    

    Address
      for Notice:

    

    

    Facsimile
      No.: 

    Attn:
      

    

    Telephone:
      

    e-mail:
      

     

    

     

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    

    Annex
      A

    

    Plan
      of Distribution

    

    The
      Selling Stockholders and any of their pledgees, donees, assignees and
      successors-in-interest may, from time to time, sell any or all of their shares
      of Common Stock on any stock exchange, market or trading facility on which
      the
      shares are traded or in private transactions. These sales may be at fixed or
      negotiated prices. The Selling Stockholders may use any one or more of the
      following methods when selling shares:

    

    
      	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

    

    
      	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

    

    
      	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

    

    
      	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

    

    
      	
              ·

            	
              privately
                negotiated transactions;

            

    

    

    
      	
              ·

            	
              to
                cover short sales made after the date that this Registration Statement
                is
                declared effective by the Securities and Exchange
                Commission;

            

    

    

    
      	
              ·

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

    

    
      	
              ·

            	
              a
                combination of any such methods of sale;
                and

            

    

    

    
      	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

    

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus.

    

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. The
      Selling Stockholders do not expect these commissions and discounts to exceed
      what is customary in the types of transactions involved.

    

    The
      Selling Stockholders may from time to time pledge or grant a security interest
      in some or all of the Shares owned by them and, if they default in the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell shares of Common Stock from time to time under this prospectus,
      or under an amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933 amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

     

    Upon
      the
      Company being notified in writing by a Selling Stockholder that any material
      arrangement has been entered into with a broker-dealer for the sale of Common
      Stock through a block trade, special offering, exchange distribution or
      secondary distribution or a purchase by a broker or dealer, 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    a
      supplement to this prospectus will be filed, if required, pursuant to Rule
      424(b) under the Securities Act, disclosing (i) the name of each such Selling
      Stockholder and of the participating broker-dealer(s), (ii) the number of shares
      involved, (iii) the price at which such the shares of Common Stock were sold,
      (iv) the commissions paid or discounts or concessions allowed to such
      broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not
      conduct any investigation to verify the information set out or incorporated
      by
      reference in this prospectus, and (vi) other facts material to the transaction.
      In addition, upon the Company being notified in writing by a Selling Stockholder
      that a donee or pledge intends to sell more than 500 shares of Common Stock,
      a
      supplement to this prospectus will be filed if then required in accordance
      with
      applicable securities law.

    

    The
      Selling Stockholders also may transfer the shares of Common Stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this
      prospectus.

    

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be "underwriters" within the meaning of
      the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Discounts, concessions, commissions and
      similar selling expenses, if any, that can be attributed to the sale of
      Securities will be paid by the Selling Stockholder and/or the purchasers.

    

    Each
      Selling Stockholder has represented and warranted to the Company that it does
      not have any agreement or understanding, directly or indirectly, with any person
      to distribute the Common Stock. The Company has advised each Selling Stockholder
      that it may not use shares registered on this Registration Statement to cover
      short sales of Common Stock prior to the date on which this Registration
      Statement shall have been declared effective by the Securities and Exchange
      Commission. If a Selling Stockholder use this prospectus for any sale of the
      Common Stock, it will be subject to the prospectus delivery requirements of
      the
      Securities Act. The Selling Stockholders will be responsible to comply with
      the
      applicable provisions of the Securities Act and Securities Exchange Act of
      1934,
      as amended, and the rules and regulations thereunder promulgated, including
      without limitation, Regulation M, as applicable to such Selling Stockholders
      in
      connection with resales of their respective shares under this Registration
      Statement.

    

    The
      Company is required to pay all fees and expenses incident to the registration
      of
      the shares, but the Company will not receive any proceeds from the sale of
      the
      Common Stock. The Company has agreed to indemnify the Selling Stockholders
      against certain losses, claims, damages and liabilities, including liabilities
      under the Securities Act.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]