Document:

Unassociated Document

    Exhibit
10.1

     

    SECURITIES PURCHASE
AGREEMENT

     

    This
Securities Purchase Agreement (the “Agreement”) is dated as of March 27, 2008,
by and among Osteologix, Inc., a Delaware corporation (the “Company”), and the
purchasers named on the signature page hereto (each a “Purchaser” and
collectively, the “Purchasers”).

     

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

     

    1.   Purchase and
Sale.  On the Closing Date, in accordance with and subject to
the terms and conditions described in this Agreement relating to the offering
(the “Offering”) by the Company of an aggregate of 2,015,151.5 units (the
“Units”), each consisting of two shares of the Company’s common stock, $.0001
par value per share (the “Common Stock”), and one common stock purchase warrant
(a “Warrant”), for an aggregate purchase price equal to $5,320,000 (the
“Aggregate Subscription Amount”), the Company agrees to sell to each of the
Purchasers, and each of the Purchasers agrees to purchase from the Company, the
number of Units set forth next to such Purchaser’s name on Exhibit A hereto for
a purchase price of $2.64 per Unit.  The 4,030,303 shares of Common
Stock underlying the Units shall be referred to herein as the
“Shares”.  The 2,015,151 Common Stock purchase warrants underlying the
Units shall be referred to herein as the “Warrants”.  The Warrants
shall be substantially in the form attached hereto as Exhibit
B.  Each Warrant shall entitle the holder thereof the right to
purchase one share of Common Stock (a “Warrant Share”) at an exercise price
equal to $1.32 per share.  The Warrants shall expire on September 30,
2009.

     

    Capitalized
terms used but not otherwise defined herein shall have the respective meanings
set forth in Section 7 hereof.

     

    2.   Closing, Deliverables and
Escrow.

     

    (a)  Closing.  On
the Closing Date, each Purchaser shall purchase from the Company, and the
Company shall issue and sell to each Purchaser, the number of Units set forth
next to such Purchaser’s name on Exhibit A hereto, and
such Purchaser shall pay to the Company in consideration for the such Units, the
aggregate purchase price (equal to $2.64 per Unit) set forth next to such
Purchaser’s name on Exhibit A hereto
(such amount shall be referred to herein as such Purchaser’s “Subscription
Amount”).  On the Closing Date, the Closing shall occur at the offices
of Morrison & Foerster LLP, 1290 Avenue of the Americas, New York, New York
10104, or such other time and location as the parties shall mutually
agree.

     

    (b)  Deliveries.

     

    (1)  On or
prior to the Closing Date, the Company shall deliver or cause to be delivered to
each of the Purchasers the following:

     

    
      	
              (i) 
        

            	
              this
      Agreement and the Registration Rights Agreement duly executed by the
      Company;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (ii)
        

            	
              a
      certificate evidencing the Shares registered in the name of each of the
      Purchasers;

            

    

     

    
      	
              (iii)  

            	
              the
      Warrants duly executed by the Company;
and

            

    

     

    
      	
              (iv)  

            	
              the
      Opinion of Company counsel substantially in the form of Exhibit C,
      attached hereto.

            

    

     

    (2)  On or
prior to the Closing Date, each of the Purchasers shall deliver or cause to be
delivered to the Company the following:

     

    
      	
              (i)  
       

            	
              this
      Agreement and, the Registration Rights Agreement duly executed by such
      Purchaser;

            

    

     

    
      	
              (ii) 
       

            	
              such
      Purchaser’s Subscription Amount by wire transfer of immediately available
      funds to an account designated in writing by the Company;
    and

            

    

     

    
      	
              (iii)  

            	
              the
      Stock Certificate Questionnaire and Registration Statement Questionnaire
      in the form of Appendix I
      attached hereto, completed by the
Purchaser.

            

    

     

    (c) Closing
Conditions.

     

    (1)  The
obligations of the Company hereunder in connection with the Closing are subject
to the following conditions being met:

     

    
      	
              (i) 
        

            	
              the
      accuracy in all material respects on the Closing Date of the
      representations and warranties of each of the Purchasers contained
      herein;

            

    

     

    
      	
              (ii) 
       

            	
              all
      obligations, covenants and agreements of each of the Purchasers required
      to be performed at or prior to the Closing Date shall have been
      performed;

            

    

     

    
      	
              (iii)  

            	
              the
      delivery by the each of the Purchasers of the items set forth in Section
      2(b)(2) of this Agreement; and

            

    

     

    
      	
              (iv)  

            	
              the
      delivery by each of the Purchasers of a certificate, executed by an
      authorized officer of such Purchaser dated as of the Closing Date,
      certifying on behalf of such Purchaser that such Purchaser has satisfied
      the conditions specified in Sections 2(c)(1)(i) and
  (ii).

            

    

     

    (2)  The
obligations of each of the Purchasers in connection with the Closing are subject
to the following conditions being met:

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              (i)  
       

            	
              the
      accuracy in all material respects on the Closing Date of the
      representations and warranties of the Company contained
      herein;

            

    

     

    
      	
              (ii) 
       

            	
              all
      obligations, covenants and agreements of the Company required to be
      performed at or prior to the Closing Date shall have been
      performed;

            

    

     

    
      	
              (iii)  

            	
              the
      delivery by the Company of the items set forth in Section 2(b)(1) of this
      Agreement;

            

    

     

    
      	
              (iv)  

            	
              there
      shall have been no Material Adverse Effect with respect to the Company
      since the date hereof; and

            

    

     

    
      	
              (v) 
       

            	
              the
      delivery by the Company of a certificate, executed by the President of the
      Company dated as of the Closing Date, certifying on behalf of the Company
      that the Company has satisfied the conditions specified in Sections
      2(c)(2)(i), (ii), (iv) and (vi).

            

    

     

    3.           Acceptance of
Subscription.  The Company shall have no obligation hereunder
until the Company shall execute and deliver to each of the Purchasers an
executed copy of this Agreement.  If this subscription is rejected or
the Offering is terminated, in each case, prior to execution and delivery of
this Agreement by the Company, this Agreement and all other documents executed
by each of the Purchasers shall thereafter be of no further force or
effect.

     

    4.           Purchaser Representations and
Warranties.  Each of the Purchasers hereby severally, and not
jointly with any other Purchaser, represents, warrants, acknowledges and agrees
as of the date hereof and as of the Closing Date to the Company as
follows:

     

    (a)  Neither
the Units, the Shares, the Warrants or the Warrant Shares are registered under
the Securities Act of 1933, as amended (the “Securities Act”), or any state
securities laws and, except as set forth in the Registration Rights Agreement,
the Company has no present or future obligation to register the Units, the
Shares, the Warrants or the Warrant Shares under the Securities Act or any state
securities laws.  Such Purchaser understands that the offering and
sale of the Units, the Shares, the Warrants and the Warrant Shares is intended
to be exempt from registration under the Securities Act, by virtue of Section
4(2) thereof and the provisions of Regulation D promulgated thereunder, or not
subject to such requirement, by virtue of Regulation S promulgated under the
Securities Act, based, in part, upon the representations, warranties and
agreements of such Purchaser contained in this Agreement.

     

    (b)  Such
Purchaser has had access to the SEC Reports (as defined below) and has received
all other documents requested by such Purchaser.  Such Purchaser has
carefully reviewed the SEC Reports and all such other documents and understands
the information contained therein.

     

    (c)  All
documents, records and books pertaining to the investment in the Units, the
Shares, the Warrants and the Warrant Shares have been made available for
inspection by such Purchaser and its representatives.  Such Purchaser
hereby acknowledges that all such information is confidential and such Purchaser
shall not disclose any such confidential information to any third party other
than as may be required by law.

     

     

    
      
        
        

      

      
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    (d)  Such
Purchaser has had a reasonable opportunity to ask questions of and receive
answers from a person or persons acting on behalf of the Company concerning the
offering of the Units, the Shares, the Warrants and the Warrant Shares and the
business, financial condition, results of operations and prospects of the
Company, and all such questions have been answered to the full satisfaction of
such Purchaser.  Neither such inquiries nor any other investigation
conducted by or on behalf of such Purchaser or its representatives or counsel
shall modify, amend or affect such Purchaser’s right to rely on the truth,
accuracy and completeness of the Company’s representations and warranties
contained in this Agreement.

     

    (e)  In
evaluating the suitability of an investment in the Company, such Purchaser has
not relied upon any representation or other information (oral or written) other
than as stated in this Agreement.

     

    (f)  Such
Purchaser is unaware of, is in no way relying on, and did not become aware of
the Offering through or as a result of, any form of general solicitation or
general advertising as those terms are used in Regulation D under the Securities
Act, including, without limitation, any article, notice, advertisement or other
communication published in any newspaper, magazine or similar media or broadcast
over television or radio, in connection with the Offering and is not subscribing
for Units and did not become aware of the Offering through or as a result of any
seminar or meeting to which such Purchaser was invited by, or any solicitation
of a subscription by, a person not previously known to such
Purchaser.

     

    (g)  Such
Purchaser has taken no action which would give rise to any claim by any person
for brokerage commissions, finders’ fees or the like relating to this Agreement
or the transactions contemplated hereby.

     

    (h)  Such
Purchaser has such knowledge and experience in financial, tax and business
matters, and, in particular, investments in securities similar to the Units, the
Shares, the Warrants and the Warrant Shares so as to enable such Purchaser to
utilize the information made available to it in connection with the Offering to
evaluate the merits and risks of an investment in the Units, the Shares, the
Warrants and the Warrant Shares and the Company and to make an informed
investment decision with respect thereto.

     

    (i)  Such
Purchaser is not relying on the Company or any of its employees, officers or
agents with respect to the legal, tax, economic and related considerations as to
an investment in the Units, the Shares, the Warrants and the Warrant Shares and
such Purchaser has relied on the advice of, or has consulted with, only his own
advisors.

     

    (j)  Such
Purchaser is acquiring the Units, the Shares, the Warrants and the Warrant
Shares solely for such Purchaser’s own account for investment and not with a
view to resale, assignment or distribution thereof, in whole or in part in
violation of the Securities Act or any applicable state securities
laws.  Such Purchaser has no agreement or arrangement, formal or
informal, with any person to sell or transfer all or any part of the Units, the
Shares, the Warrants or the Warrant Shares in violation of the Securities Act or
any state securities laws and such Purchaser has no plans to enter into any such
agreement or arrangement.  Such Purchaser will not engage in hedging
transactions with respect to the Units, the Shares, the Warrants or the Warrant
Shares unless in compliance with the registration requirements of the Securities
Act.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (k)  Such
Purchaser must bear the substantial economic risks of the investment in the
Units, the Shares, the Warrants and the Warrant Shares indefinitely because none
of the Units, the Shares, the Warrants and the Warrant Shares may be sold,
hypothecated or otherwise disposed of unless subsequently registered under the
Securities Act and applicable state securities laws or an exemption from such
registration is available.  Subject to the terms hereunder, legends
shall be placed on the Units, the Shares, the Warrants and the Warrant Shares to
the effect that they have not been registered under the Securities Act or
applicable state securities laws and appropriate notations thereof will be made
in the Company’s stock books.

     

    (l)       
Such
Purchaser has adequate means of providing for its current financial needs and
foreseeable contingencies and has no need for liquidity of the investment in the
Units, the Shares, the Warrants and the Warrant Shares for an indefinite period
of time.

     

    (m)  Such
Purchaser (i) meets the requirements of the suitability standards for an
“accredited investor” because such Purchaser is a corporation, partnership,
limited liability company, limited liability partnership, other entity or
similar business trust, not formed for the specific purpose of acquiring the
Units, with total assets excess of $5,000,000 or (ii) is a “non-US Person” that
is a “qualified investor” as defined in the European Union Prospective
Directive.  Such Purchaser further represents and warrants that it
will notify and supply corrective information to the Company immediately upon
the occurrence of any change occurring prior to the Company’s issuance of the
Units, the Shares, the Warrants and the Warrant Shares that renders the
representation made in the immediately preceding sentence.  Such
Purchaser represents to the Company that any information which the undersigned
has heretofore furnished under this Section 4(m) or furnishes to the Company
pursuant to this Section 4(m) is complete and accurate and may be relied upon by
the Company in determining the availability of an exemption from registration
under Federal and state securities laws in connection with the
Offering.

     

    (n)  Such
Purchaser represents that it is a corporation, partnership, limited liability
company or partnership, association, joint stock company, trust, unincorporated
organization or other entity, and that (A) such Purchaser was not formed for the
specific purpose of acquiring the Units, (B) such Purchaser is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (C) the consummation of the transactions contemplated hereby is
authorized by, and will not result in a violation of law or the charter or other
organizational documents of such Purchaser, (D) such Purchaser has full power
and authority to execute and deliver this Agreement and all other related
agreements or certificates and to carry out the provisions hereof and thereof
and to purchase and hold the Units, the Shares, the Warrants and the Warrant
Shares, (E) the execution and delivery of this Agreement has been duly
authorized by all necessary action of such Purchaser, (F) this Agreement has
been duly executed and delivered on behalf of such Purchaser and constitutes a
legal, valid and binding obligation of such Purchaser, enforceable against such
Purchaser in accordance with its terms subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally and general principles of
equity and (G) the execution and delivery of this Agreement by such Purchaser
will not violate or be in conflict with any order, judgment, injunction,
agreement or controlling document to which such Purchaser is a party or by which
such Purchaser is bound.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (o)  Such
Purchaser is able to bear the economic risk of an investment in the Units, the
Shares, the Warrants and the Warrant Shares and, at the present time, has a
sufficient net worth to sustain a complete loss of such investment in the
Company in the event such a loss should occur.  Such Purchaser’s
overall commitment to investments which are not readily marketable is not
excessive in view of its net worth and financial circumstances and the purchase
of the Units will not cause such commitment to become excessive.

     

    (p)  THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF CERTAIN STATES AND ARE BEING OFFERED
AND SOLD IN RELIANCE ON EXEMPTIONS FROM, OR IN TRANSACTIONS NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS.  THE SECURITIES
OFFERED HEREBY MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE
SECURITIES ACT OF 1933 AS AMENDED AND SUCH LAWS PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM.  THE SECURITIES OFFERED HEREBY HAVE NOT BEEN
APPROVED OR DISAPPROVED BY THE COMMISSION, ANY STATE SECURITIES COMMISSION OR
ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED
UPON OR ENDORSED THE MERITS OF THIS OFFERING.  ANY REPRESENTATION TO
THE CONTRARY IS UNLAWFUL.

     

    (q)  Such Purchaser should check the
Office of Foreign Assets Control (“OFAC”) website at
<http://www.treas.gov/ofac> before making the following
representations.  Such Purchaser represents that the amounts
invested by it in the Company in the Offering were not and are not directly or
indirectly derived from activities that contravene federal, state or
international laws and regulations, including anti-money laundering laws and
regulations.  Federal regulations and Executive Orders administered by
OFAC prohibit, among other things, the engagement in transactions with, and the
provision of services to, certain foreign countries, territories, entities and
individuals.  The lists of OFAC prohibited countries, territories,
persons and entities can be found on the OFAC website at
<http://www.treas.gov/ofac>.  In addition, the programs
administered by OFAC (the “OFAC Programs”) prohibit dealing with
individuals1 or
entities in certain countries regardless of whether such individuals or entities
appear on the OFAC lists.

     

    (r)  To such
Purchaser’s knowledge, none of:  (1) such Purchaser, (2) any person
controlling or controlled by such Purchaser, (3) if such Purchaser is a
privately-held entity, any person having a beneficial interest in such Purchaser
or (4) any person for whom such Purchaser is acting as agent or nominee in
connection with this investment is a country, territory, individual or entity
named on an OFAC list, or a person or entity prohibited under the OFAC
Programs.  Please be advised that the Company may not accept any
amounts from a prospective investor if such prospective investor cannot make the
representation set forth in the preceding paragraph.  Such Purchaser
agrees to promptly notify the Company should such Purchaser become aware of any
change in the information set forth in Sections 4(r) - (t) of these
representations.  Such Purchaser understands and acknowledges that, by
law, the Company may be obligated to “freeze the account” of such Purchaser,
either by prohibiting additional subscriptions from such Purchaser, declining
any redemption requests and/or segregating the assets in the account in
compliance with governmental regulations.  Such Purchaser further
acknowledges that the Company may, by written notice to such Purchaser, suspend
the redemption rights, if any, of such Purchaser if the Company reasonably deems
it necessary to do so to comply with anti-money laundering regulations
applicable to the Company or any of the Company’s other service
providers.  These individuals include specially designated nationals,
specially designated narcotics traffickers and other parties subject to OFAC
sanctions and embargo programs.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (s)  To such
Purchaser’s knowledge, none of: (1) such Purchaser, (2) any person controlling
or controlled by such Purchaser, (3) if such Purchaser is a privately-held
entity, any person having a beneficial interest in such Purchaser or (4) any
person for whom such Purchaser is acting as agent or nominee in connection with
this investment is a senior foreign political figure2, or any immediate
family3 member or
close associate4 of a
senior foreign political figure, as such terms are defined in the footnotes
below.

     

    (t)  If such
Purchaser is affiliated with a non-U.S. banking institution (a “Foreign Bank”),
or if such Purchaser receives deposits from, makes payments on behalf of, or
handles other financial transactions related to a Foreign Bank, such Purchaser
represents and warrants to the Company that:  (1) the Foreign Bank has
a fixed address, other than solely an electronic address, in a country in which
the Foreign Bank is authorized to conduct banking activities, (2) the Foreign
Bank maintains operating records related to its banking activities, (3) the
Foreign Bank is subject to inspection by the banking authority that licensed the
Foreign Bank to conduct banking activities, and (4) the Foreign Bank does not
provide banking services to any other Foreign Bank that does not have a physical
presence in any country and that is not a regulated affiliate.

     

    (u)           Prior
to the date hereof, the Purchaser has not taken, and prior to the public
announcement of the transaction after the Closing the Purchaser shall not take,
any action that has caused or will cause the Purchaser to have, directly or
indirectly, sold or agreed to sell any shares of Common Stock, effected any
short sale, whether or not against the box, established any “put equivalent
position” (as defined in Rule 16a-1(h) under the Exchange Act with respect to
the Common Stock, granted any other right (including, without limitation, any
put or call option) with respect to the Common Stock or with respect to any
security that includes, relates to or derived any significant part of its value
from the Common Stock.

     

    5.   Company Representations and
Warranties.  The Company hereby represents, warrants,
acknowledges and agrees as of the date hereof and as of the Closing Date to such
Purchaser as follows:

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (a)  Subsidiaries.  Except
as disclosed in the SEC Reports, the Company has no direct or indirect
subsidiaries.

     

    (b)  Organization and
Qualification.  The Company is an entity duly incorporated or
otherwise organized, validly existing and in good standing under the laws of the
State of Delaware, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.  The Company is not in violation of any of the provisions
of its Certificate of Incorporation or By-Laws.

     

    (c)  Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the Offering.  The execution
and delivery of this Agreement, the Registration Rights Agreement and the
Warrants by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
action on the part of the Company and no further consent or action is required
by the Company, other than the Required Approvals (as defined
below).  This Agreement, the Registration Rights Agreement and the
Warrants, when executed and delivered in accordance with the terms hereof, will
each constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors’ rights and remedies generally
and general principles of equity.

     

    (d)  No
Conflicts.  The execution, delivery and performance of this
Agreement, the Registration Rights Agreement and the Warrants by the Company and
the consummation by the Company of the transactions contemplated hereby and
thereby do not and will not:  (i) conflict with or violate any
provision of the Company’s Certificate of Incorporation or By-Laws, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice or
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 material property or asset of the
Company is bound or affected, or (iii) subject to obtaining the Required
Approvals (as defined below), result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any
court or governmental authority as currently in effect to which the Company is
subject (including federal and state securities laws and regulations), or by
which any material 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 (a) adversely affect the legality, validity or
enforceability of the Offering, (b) have or result in a material adverse effect
on the results of operations, assets, prospects, business or condition
(financial or otherwise) of the Company, taken as a whole, or (c) adversely
impair the Company’s ability to perform fully on a timely basis its obligations
under this Agreement (any of (a), (b) or (c), a “Material Adverse Effect”);
provided, however, that,
notwithstanding the foregoing, the parties agree that no change in the market
price of the Company’s Common Stock shall be deemed to be a Material Adverse
Effect for purposes of this Agreement.

     

    (e)  Filings, Consents and
Approvals.  The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of this Agreement, the Registration
Rights Agreement and the Warrants other than (i) the filing with the SEC of the
registration statement required to be filed by the Company pursuant to the
Registration Rights Agreement, (ii) the filing with the SEC of a Form D pursuant
to Regulation D under the Securities Act and (iii) applicable Blue Sky filings
(collectively, the “Required Approvals”).

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    (f)  Issuance of the
Shares.  The Shares are duly authorized and, when issued and
paid for in accordance with this Agreement, will be duly and validly issued,
fully paid and nonassessable, free and clear of all Liens.  The
Warrant Shares are duly authorized and, when issued and paid for in accordance
with the terms of the Warrants, will be duly and validly issued, fully paid and
nonassessable, free and clear of all Liens.  Assuming the accuracy of
the Purchasers’ representations and warranties set forth in Section 4, no
registration under the Securities Act is required for the offer and sale of the
Units, the Shares, the Warrants and the Warrant Shares by the Company to each of
the Purchasers as contemplated hereby.  No shareholder approval is
required for the Company to fulfill its obligations pursuant to this Agreement,
the Registration Rights Agreement or the Warrants.  As of the Closing,
the Company will have reserved from its duly authorized capital stock the
maximum number of shares of Common Stock issuable pursuant to this Agreement and
the Warrants.

     

    (g)  Capitalization.  The
number of shares of Common Stock and type of all authorized, issued and
outstanding capital stock of the Company is as set forth in the SEC
Reports.  No Person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the
Offering.  Except as a result of the purchase and sale of the Units
which may be issued in connection with this Offering and, except as described in
the SEC Reports, there are no outstanding options, warrants, script rights to
subscribe to, calls or commitments of any character whatsoever relating to
shares of Common Stock, or, rights or obligations convertible into or
exchangeable for, or giving any Person any right to subscribe for or acquire,
any shares of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company is or may become bound to issue additional
shares of Common Stock or rights convertible or exchangeable into shares of
Common Stock.  The issuance and sale of the Units will not obligate
the Company to issue shares of Common Stock, or Units to any Person (other than
the Purchasers) and will not result in a right of any holder of Company equity
to adjust the exercise, conversion, exchange or reset price under any
outstanding securities.  All of the outstanding shares of capital
stock of the Company issued on and after May 24, 2006 are validly issued, fully
paid and non-assessable, have been issued in compliance with federal and state
securities laws, and none of such outstanding shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase
securities.

     

    (h)  SEC Reports; Financial
Statements.  The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by it under the
Securities Act and the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), including pursuant to Section 13(a) or 15(d) thereof, since
January 1, 2007 (the foregoing materials, including the exhibits thereto
and documents incorporated by reference therein, being collectively referred to
herein as the “SEC Reports”) on a timely basis.  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 SEC 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 the light of the circumstances under which they were
made, not misleading.  The financial statements of the Company
included in the SEC Reports have been prepared in accordance with United States
generally accepted accounting principles 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 as of and for the dates thereof
and the results of operations and cash flows for the periods then
ended.

     

     

    
      
        
        

      

      
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    (i)  Material
Changes.  Except for the proposed Offering or as otherwise
described in the SEC Reports, since the date of the latest financial statements
included in the SEC Reports:  (i) there has been no event, occurrence
or development that has had or could reasonably be expected to result in a
Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice, and
(B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with the
SEC, (iii) the Company has not altered its method of accounting or the identity
of its auditors, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders except in the
ordinary course of business consistent with prior practice, or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock except consistent with prior practice or pursuant to existing Company
stock option or similar plans, and (v) the Company has not issued any equity
shares to any officer, director or affiliate, except pursuant to existing
Company stock option, director compensation or similar plans.

     

    (j)  Litigation.  Except
as disclosed in the SEC Reports, there is no action, suit, inquiry, notice of
violation, Proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company or its properties before or
by any court, arbitrator, governmental or administrative agency or regulatory
authority (federal, state, county, local or foreign) (collectively, an “Action”) which: (i)
adversely affects or challenges the legality, validity or enforceability of this
Agreement, the Registration Rights Agreement, the Warrants or the Offering or
(ii) could, if there were an unfavorable decision, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse
Effect.  The Company is not nor has it ever been the subject of any
Action involving a claim of violation of or liability under federal or state
securities laws.  There has not been, and to the knowledge of the
Company, there is not pending or contemplated, any investigation by the SEC
involving the Company.  The SEC has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by the
Company under the Exchange Act or the Securities Act.

     

    (k)  Compliance.  Except
as disclosed in the SEC Reports, the Company: (i) is not in default under
or in violation of (and no event has occurred that has not been waived that,
with notice or lapse of time or both, would result in a default by the Company
under), nor has the Company received notice of a claim that it is in default
under or that it is in violation of, any material indenture, loan or credit
agreement or any other material agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or
violation has been waived), which default or violation would have, or would
reasonably be expected to result in, a Material Adverse Effect, (ii) is not in
violation of any order of any court, arbitrator or governmental body, and (iii)
is not and has not been in violation of any statute, rule or regulation of any
governmental authority, except in each case as, individually or in the
aggregate, would not have and would not reasonably be expected to result in, a
Material Adverse Effect.

     

     

    
      
        
        

      

      
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    (l)  Regulatory
Permits.  Except as otherwise described in the SEC Reports, the
Company possesses or has applied for all certificates, authorizations and
permits issued by the appropriate federal, state, local or foreign regulatory
authorities necessary to conduct its business as described in the SEC Reports,
except where the failure to possess such permits would not, individually or in
the aggregate, have a Material Adverse Effect (“Material Permits”), and the
Company has not received any notice of Proceedings relating to the revocation or
modification of any Material Permit.

     

    (m)  Title to
Assets.  The Company and its subsidiaries have title in fee
simple to all real property owned by them that is material to the business of
the Company and its subsidiaries and title in all personal property owned by
them that is material to the business of the Company and its subsidiaries, in
each case free and clear of all Liens, except for Liens as do not materially
affect the value of such property and do not materially interfere with the use
made and proposed to be made of such property by the Company and its
subsidiaries and Liens for the payment of federal, state or other taxes, and
other statutory liens, the payment of which is neither delinquent nor subject to
penalties.  Any real property and facilities held under lease by the
Company or its subsidiaries is held by them under valid leases of which the
Company and its subsidiaries are in compliance, except as would not have a
Material Adverse Effect.

     

    (n)  Patents and
Trademarks.  The Company and its subsidiaries either own, or
have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses and other similar
rights that are necessary or material for use in connection with their
respective businesses as described in the SEC Reports and which the failure to
so have or could reasonably be expected to result in a Material Adverse Effect
(collectively, the “Intellectual Property Rights”).  The Company and
its subsidiaries have not (i) received a written notice that the Intellectual
Property Rights owned or used by the Company or its subsidiaries violates or
infringes upon the rights of any Person, or (ii) received a written invitation
to license any intellectual property rights of any Person in order to avoid such
a violation or infringement.  To the knowledge of the Company, there
is no existing infringement of any of the Intellectual Property Rights by any
Person.

     

    (o)  Insurance.  The
Company and its subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks, including, without limitation,
products liability, and in such amounts as are prudent and customary in the
businesses in which the Company and its subsidiaries are
engaged.  Neither the Company nor any of its subsidiaries has any
reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business on terms
consistent with market for the Company’s and each of its subsidiary’s respective
lines of business.

     

     

    
      
        
        

      

      
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    (p)  Sarbanes-Oxley; Internal
Accounting Controls.  The Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to
it.  The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any
differences.  The Company has established disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company is made known to the certifying
officers by others within those entities, particularly during the period in
which the Company’s most recently filed periodic report under the Exchange Act,
as the case may be, is being prepared.  The Company presented in its
most recent periodic report filed with the SEC, the conclusions of the
certifying officers about the effectiveness of the disclosure controls and
procedures.

     

    (q)  Lack of
Publicity.  None of the Company, its subsidiaries or any person
acting on its or their behalf have engaged or will engage in any form of general
solicitation or general advertising as those terms are used in Regulation D
under the Securities Act in the United States with respect to the Units, the
Shares, the Warrants or the Warrant Shares, including, without limitation, any
article, notice, advertisement or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio,
regarding the offering, nor did any such person sponsor any seminar or meeting
to which potential investors were invited by, or any solicitation of a
subscription by, a person not previously known to such investor in connection
with investments in the Units, the Shares, the Warrants or the Warrant Shares
generally.  None of the Company, its subsidiaries or any person acting
on its or their behalf have engaged or will engage in any form of directed
selling efforts (as that term is used in Regulation S under the Securities Act)
with respect to the Units, the Shares, the Warrants or the Warrant
Shares.

     

    (r)  Certain
Fees.  No brokerage commissions, finder’s fees or the like are
or will be payable by the Company to any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by this Agreement other than
pursuant to the Engagement Letter Agreement dated February 20, 2008, issued by
Punk, Ziegel & Company, L.P., to the Company.

     

     

    
      
        
        

      

      
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    (s)  Registration
Rights.  Other than pursuant to (i) the Registration Rights
Agreement, (ii) the Registration Rights Agreement dated as of June 4, 2007 by
and among the Company and the holders signatory thereto and (iii) the
Registration Rights Agreement dated as of May 24, 2006 by and among the Company
and the purchasers signatory thereto, and other than the Purchasers, no Person
has any right to cause the Company to effect the registration under the
Securities Act of any securities of the Company.

     

    (t)  Solvency.  Based
on the financial condition of the Company as of the Closing Date after giving
effect to the receipt by the Company of the proceeds from the sale of the Shares
hereunder, (i) the Company’s fair saleable value of its assets exceeds the
amount that will be required to be paid on or in respect of the Company’s
existing debts and other liabilities (including known contingent liabilities) as
they mature; (ii) the Company’s assets do not constitute unreasonably small
capital to carry on its business for the current fiscal year as now conducted
and as proposed to be conducted including its capital needs taking into account
the particular capital requirements of the business conducted by the Company,
and projected capital requirements and capital availability thereof; and (iii)
the current cash flow of the Company, together with the proceeds the Company
would receive, were it to liquidate all of its assets, after taking into account
all anticipated uses of the cash, would be sufficient to pay all amounts on or
in respect of its debt when such amounts are required to be paid.  The
Company does not intend to incur debts beyond its ability to pay such debts as
they mature (taking into account the timing and amounts of cash to be payable on
or in respect of its debt).  The Company has no knowledge of any facts
or circumstances which lead it to believe that it will file for reorganization
or liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date.  The SEC Reports set forth as
of the dates thereof all outstanding secured and unsecured Indebtedness of the
Company or any of its subsidiaries, or for which the Company or any of its
subsidiaries has commitments.  For the purposes of this Agreement,
“Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed
in excess of $50,000 (other than trade accounts payable incurred in the ordinary
course of business), (b) all guaranties, endorsements and other contingent
obligations in respect of Indebtedness of others, whether or not the same are or
should be reflected in the Company’s balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business; and (c)
the present value of any lease payments in excess of $50,000 due under leases
required to be capitalized in accordance with GAAP.  Neither the
Company nor any of its subsidiaries is in default with respect to any
Indebtedness.

     

    (u)  Tax
Status.  Except for matters that would not, individually or in
the aggregate, have or reasonably be expected to result in a Material Adverse
Effect, the Company and each of its subsidiaries have filed all necessary
federal, state and foreign income and franchise tax returns or have timely filed
for valid extensions to the filing deadlines applicable to them with respect to
such taxes and has paid or accrued all taxes shown as due thereon, and the
Company has no knowledge of a tax deficiency which has been asserted or
threatened against the Company or any of its subsidiaries.

     

     

    
      
        
        

      

      
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    (v)  Foreign Corrupt
Practices.  Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has
(i) directly or indirectly, used any funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of
which the Company is aware) which is in violation of law, or (iv) violated in
any material respect any provision of the Foreign Corrupt Practices Act of 1977,
as amended.

     

    (w)  Shareholders Rights Plan;
Investment Company Act.  No claim will be made or enforced by
the Company that any of the Purchasers is an “Acquiring Person” under any
shareholders rights plan or similar plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the
provisions of any such plan or arrangement, by virtue of receiving Units,
Shares, Warrants or Warrant Shares.  The Company is not, and is not an
Affiliate of, and immediately after receipt of payment for the Units, will not
be or be an Affiliate of, an “investment company” within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company
Act”).

     

    (x)  Disclosure.  The
disclosure provided to each of the Purchasers regarding the Company, its
business and the transactions contemplated hereby, furnished by or on behalf of
the Company, including the SEC Reports, does not contain any untrue statement of
a material fact or omit to state any material fact necessary in order to make
the statements made therein, in light of the circumstances under which they were
made, not misleading.

     

    6.   Covenants of the Purchasers and the
Company.

     

    (a)  Transfer
Restrictions.

     

    (1)  The Units,
the Shares, the Warrants and the Warrant Shares may only be disposed of in
compliance with state and federal securities laws.  In connection with
any transfer of such securities (or hedging activities involving such
securities) other than pursuant to an effective registration statement or Rule
144, to the Company or to an affiliate of any Purchaser or in connection with a
pledge as contemplated below, the Company may require the transferor thereof to
provide to the Company an opinion of counsel selected by the transferor and
reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred securities under the
Securities Act.  As a condition of transfer, any such transferee shall
agree in writing to be bound by the terms of this Agreement and shall have the
rights of a Purchaser under this Agreement.

     

    (2)  Each of
the Purchasers agrees to the imprinting, so long as is required by this Section
6(a), of a legend on any of the Units, the Shares, the Warrants and the Warrant
Shares in the following form:

     

     

    
      
        
        

      

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

     

    (3)  Certificates
evidencing Shares, Warrants and Warrant Shares shall not contain any legend
(including the legend set forth in Section
6(a)(2)):  (i) following the resale of the Units or such Shares,
Warrants and/or Warrant Shares pursuant to an effective registration statement
under the Securities Act covering the resale of such Shares, or (ii) following
any resale of the Units or such Shares, Warrants or Warrant Shares pursuant to
Rule 144, or (iii) if the Units or such Shares, Warrants or Warrant Shares are
eligible for resale under Rule 144(b) without volume limitations, or (iv) if
such legend is not required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the Staff of
the SEC).  The Company agrees that following the time when a legend is
no longer required under this Section 6(a)(3), it will, no later than five (5)
trading days following the delivery by a Purchaser to the Company or the
Company’s transfer agent of a certificate representing Shares, Warrants or
Warrant Shares issued with a restrictive legend (such date, the “Legend Removal
Date”), deliver or cause to be delivered to such Purchaser or such Purchaser’s
transferee, as applicable, a certificate representing such Shares, Warrants or
Warrant Shares that is free from all restrictive and other
legends.  The Company may not make any notation on its records or give
instructions to any transfer agent of the Company that enlarge the restrictions
on transfer set forth in this Section.  Notwithstanding anything to
the contrary contained herein, the Company shall not be required to effect a
removal of a restrictive legend to the extent such legend is required under
applicable requirements of the Securities Act, including any rule of the SEC
promulgated thereunder, and judicial interpretations thereof.

     

     

    
      
        
        

      

      
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    (4)  Each of
the Purchasers agrees that the removal of the restrictive legend from
certificates representing Shares, Warrants and Warrant Shares as set forth in
this Section 6(a)(3)(i) or (ii) is predicated upon the Company’s reliance that
such Purchaser will sell any Units, Shares, Warrants and Warrant Shares pursuant
to either the registration requirements of the Securities Act, including any
applicable prospectus delivery requirements, or an exemption
therefrom.

     

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

     

    (c)  Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Shares, in a manner
that would require the registration under the Securities Act of the sale of the
Units, the Shares, the Warrants or the Warrant Shares to the
Purchasers.  The Company shall conduct its business in a manner so
that it will not become subject to registration under the Investment Company
Act.

     

    (d)  Disclosure;
Publicity.  No Purchaser shall issue any press release or
otherwise make any such public statement with respect to the transactions
contemplated hereby without the prior consent of the Company, except if such
disclosure is required by law, in which case such Purchaser shall promptly
provide the Company with prior written notice of such public statement or
communication.  The Company shall not publicly disclose the name of
any Purchaser, or include the name of such Purchaser in any filing with the SEC
or any regulatory agency or Trading Market, without the prior written consent of
such Purchaser, except (i) as required by federal securities law in connection
with the registration statement contemplated by the Registration Rights
Agreement and (ii) to the extent such disclosure is required by law or Trading
Market regulations, in which case the Company shall provide such Purchaser with
prior notice of such disclosure permitted under sub clause (i) or
(ii).

     

    (e)  Indemnification of
Purchasers.  Subject to the provisions of this Section 6(e),
the Company will indemnify and hold each Purchaser and its respective directors,
officers, shareholders, partners, members, employees and agents (each, a
“Purchaser Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to (i) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or
(ii) any action instituted against any Purchasers, Purchaser Party or their
respective Affiliates, by any stockholder of the Company or other person who is
not an Affiliate of any such Purchaser, with respect to any of the transactions
contemplated by this Agreement (unless such action is based upon a breach of
such Purchaser’s representation, warranties or covenants under this Agreement or
any agreements or understandings such Purchaser may have with any such
stockholder or any violations by such Purchaser of state or federal securities
laws).  If any action shall be brought against any Purchaser Party in
respect of which indemnity may be sought pursuant to this Agreement, such
Purchaser Party shall promptly notify the Company in writing, and the Company
shall have the right to assume the defense thereof with counsel of its own
choosing.  Any Purchaser Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Purchaser Party
except to the extent that (A) the employment thereof has been specifically
authorized by the Company in writing; (B) the Company has failed after a
reasonable period of time to assume such defense and to employ counsel
reasonably acceptable to such Purchaser Party or (C) in such action there is, in
the reasonable opinion of such separate counsel, a material conflict on any
material issue between the position of the Company and the position of such
Purchaser Party.  The Company will not be liable to any Purchaser
Party under this Agreement (I) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably
withheld, conditioned or delayed; or (II) to the extent, but only to the extent
that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made
by such Purchaser in this Agreement.

     

     

    
      
        
        

      

      
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    (f)  Indemnification of
Company.  Subject to the provisions of this Section 6(f), each
Purchaser, will indemnify and hold the Company and its directors, officers,
shareholders, partners, members, employees and agents (each, a “Company Party”)
harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Company Party may suffer or incur as a result of or
relating to (i) any breach of any of the representations, warranties, covenants
or agreements made by such Purchaser in this Agreement or (ii) any action
instituted against the Company, or any Company Party or their respective
Affiliates, by any stockholder of the Company or other person, with respect to
any of the transactions contemplated by this Agreement if such action is based
upon a breach of the representation, warranties or covenants of such Purchaser
under this Agreement or any violation by such Purchaser of state or federal
securities laws.  If any action shall be brought against any Company
Party in respect of which indemnity may be sought pursuant to this Agreement,
such Company Party shall promptly notify the applicable Purchaser in writing,
and such Purchaser shall have the right to assume the defense thereof with
counsel of its own choosing.  Any Company Party shall have the right
to employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Company Party except to the extent that (A) the employment thereof has been
specifically authorized by such Purchaser in writing; (B) such Purchaser has
failed after a reasonable period of time to assume such defense and to employ
counsel reasonably acceptable to such Company Party or (C) in such action there
is, in the reasonable opinion of such separate counsel, a material conflict on
any material issue between the position of such Purchaser and the position of
such Company Party.  No Purchaser will be liable to any Company Party
under this Agreement (I) for any settlement by a Company Party effected without
such Purchaser’s prior written consent, which shall not be unreasonably
withheld, conditioned or delayed; or (II) to the extent, but only to the extent
that a loss, claim, damage or liability is attributable to any Company Party’s
breach of any of the representations, warranties, covenants or agreements made
by the Company in this Agreement.

     

    7.   Definitions.  In
addition to the terms defined elsewhere in this Agreement, the following terms
have the meanings indicated in this Section 7:

     

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

     

     

    
      
        
        

      

      
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    (b)  “Business
Day” means any day except Saturday, Sunday and any day which shall be a Federal
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.

     

    (c)  “Closing
Date” means April 17, 2008, or such later Trading Day when this Agreement and
the Warrants have been executed and delivered by the applicable parties thereto,
and all conditions precedent to (i) the Purchasers’ respective obligations to
pay their respective Subscription Amounts have been satisfied or waived and
(ii) the Company’s obligations to deliver the Units have been satisfied or
waived.

     

    (d)  “Liens”
means a lien, charge, security interest, encumbrance, right of first refusal,
preemptive right or other restriction.

     

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

     

    (f)  “Proceeding”
means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a
deposition).

     

    (g)  “Registration
Rights Agreement” shall mean that certain Registration Rights Agreement dated as
of March 27, 2008, by and among the Company and certain of the Purchasers who
are parties thereto.

     

    (h)  “Registrable
Securities” shall have the meaning set forth in the Registration Rights
Agreement.

     

    (i)  “SEC”
means the Securities and Exchange Commission.

     

    (j)  “Subscription
Amount” shall mean, with respect to each Purchaser, the amount set forth next to
such Purchaser’s name on Exhibit A
hereto.

     

    (k)  “Trading
Market” means the following markets or exchanges on which the Common Stock is
listed or quoted for trading on the date in question: the American Stock
Exchange, the New York Stock Exchange, the Nasdaq Global Market, the Nasdaq
Global Select Market, the Nasdaq Capital Market or the OTC Bulletin
Board.

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    8.   Successors and
Assigns.  Each of the Purchasers hereby acknowledges and agrees
that this Agreement shall be binding upon and inure to the benefit of the
parties and their heirs, executors, administrators, successors, legal
representatives and permitted assigns.

     

    9.   Modification.  This
Agreement shall not be modified or waived except by an instrument in writing
signed by the party against whom any such modification or waiver is
sought.

     

    10.        
Notices.  Any notice
or other communication required or permitted to be given hereunder shall be in
writing and shall be mailed by certified mail, return receipt requested, sent by
nationwide overnight courier or delivered against receipt to the party to whom
it is to be given (a) if to Company, at the address set forth above, or (b) if
to any of the Purchasers, at the respective addresses set forth on the signature
page hereof (or, in either case, to such other address as the party shall have
furnished in writing in accordance with the provisions of this
Section).  Any notice or other communication given by certified mail
shall be deemed given at the time that it is signed for by the recipient except
for a notice changing a party’s address which shall be deemed given at the time
of receipt thereof.  Any notice or other communication given by
nationwide overnight courier shall be deemed given the next business day
following being deposited with such courier.

     

    11.        
Assignability.  Except
as otherwise provided in this Agreement, this Agreement and the rights,
interests and obligations hereunder are not transferable or assignable by any
Purchaser.  This Agreement and the rights, interests and obligations
hereunder are not transferable or assignable by the Company.

     

    12.        
Applicable Law. All questions concerning
the construction, validity, enforcement and interpretation of this Agreement and
the Warrants 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, except to the extent that the application of the
General Corporation Law of the State of Delaware is mandatorily
applicable.  Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York,
borough of Manhattan for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of this Agreement and the
Warrants), and hereby irrevocably waives, and agrees not to assert in any suit,
action or Proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or Proceeding is improper
or inconvenient venue for such Proceeding.  Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or 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.  The parties hereby waive to the fullest extent permitted by
applicable law, all rights to a trial by jury in any legal proceeding arising
out of or relating to this Agreement or the transactions contemplated
hereby.  If either party shall commence an action or Proceeding to
enforce any provisions of this Agreement and/or the Warrants, then the
prevailing party in such action or Proceeding shall be reimbursed by the other
party for its attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or
Proceeding.

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

       

    

    13.        
Use of
Pronouns.  All pronouns and any variations thereof used herein
shall be deemed to refer to the masculine, feminine, neuter, singular or plural
as the identity of the person or persons referred to may require.

     

    14.        
Miscellaneous.

     

    (a)  This
Agreement shall terminate if the Closing has not been consummated on or before
April 27, 2008.

     

    (b)  This
Agreement and its exhibits and schedules constitutes the entire agreement
between the Purchasers and the Company with respect to the subject matter hereof
and supersedes all prior oral or written agreements and understandings, if any,
relating to the subject matter hereof.  The terms and provisions of
this Agreement may be waived, or consent for the departure therefrom granted,
only by a written document executed by the party entitled to the benefits of
such terms or provisions.

     

    (c)  The
respective covenants, agreements, representations and warranties made in this
Agreement by each of the Purchasers and the Company shall survive the execution
and delivery hereof and delivery of the Units, the Shares, the Warrants and the
Warrant Shares.

     

    (d)  At the
Closing, the Company shall reimburse Nordic Biotech Opportunity Fund K/S up to
$25,000 for its actual, out-of-pocket legal fees and expenses related to the
transactions contemplated by this Agreement.  Except as expressly set
forth in this Agreement to the contrary, each of the parties hereto shall pay
its own fees and expenses (including the fees of any attorneys, accountants,
appraisers or others engaged by such party) in connection with this Agreement
and the transactions contemplated hereby whether or not the transactions
contemplated hereby are consummated.  The Company shall pay all
transfer agent fees, stamp taxes and other taxes and duties levied in connection
with the delivery of any Units, Shares, Warrants or Warrant Shares.

     

    (e)  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which shall together constitute one and the same
instrument.

     

    (f)  Each
provision of this Agreement shall be considered separable and, if for any reason
any provision or provisions hereof are determined to be invalid or contrary to
applicable law, such invalidity or illegality shall not impair the operation of
or affect the remaining portions of this Agreement.

     

    (g)  Section
titles are for descriptive purposes only and shall not control or alter the
meaning of this Agreement as set forth in the text.

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

       

    

    (h)  The
Company acknowledges that the obligations of each Purchaser under this Agreement
are several and not joint with the obligations of any other Purchaser, and no
Purchaser shall be responsible in any way for the performance of the obligations
of any other Purchaser under this Agreement.  The decision of each
Purchaser to enter into this Agreement has been made by such Purchaser
independently of any other Purchaser.  The Company further
acknowledges that nothing contained in this Agreement, and no action taken by
any Purchaser pursuant hereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture of any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated
hereby.  Each Purchaser shall be entitled to independently protect and
enforce its rights, including without limitation, the rights arising out of this
Agreement, and it shall not be necessary for any other Purchaser to be joined as
an additional party in any proceeding for such purpose.  Each
Purchaser has been represented by its own separate legal counsel in their review
and negotiation of this Agreement and with respect to the transactions
contemplated hereby.  The Company has elected to provide all
Purchasers with the same terms and Agreement for the convenience of the Company
and not because it was required or requested to do so by the
Purchasers.  The Company acknowledges that such procedure with respect
to this Agreement in no way creates a presumption that the Purchasers are in any
way acting in concert or as a group with respect to this Agreement or the
transactions contemplated hereby or thereby.

     

    

      

    

      
      1           These
individuals include specially designated nationals, specially designated
narcotics traffickers and other parties subject to OFAC sanctions and embargo
programs.

    

      
      2           A
“senior foreign political figure” is defined as a senior official in the
executive, legislative, administrative, military or judicial branches of a
foreign government (whether elected or not), a senior official of a major
foreign political party, or a senior executive of a foreign government-owned
corporation.  In addition, a “senior foreign political figure”
includes any corporation, business or other entity that has been formed by, or
for the benefit of, a senior foreign political figure.

    

      
      3           “Immediate
family” of a senior foreign political figure typically includes the figure’s
parents, siblings, spouse, children and in-laws.

    

      
      4           A
“close associate” of a senior foreign political figure is a person who is widely
and publicly known to maintain an unusually close relationship with the senior
foreign political figure, and includes a person who is in a position to conduct
substantial domestic and international financial transactions on behalf of the
senior foreign political figure.

    

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

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

     

     

    
      	OSTEOLOGIX,
      INC.	 
	 	 	 
	By:	 	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    
    

    

    Signature Page
to Purchase Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	PURCHASERS:	 	
                ADDRESS
      FOR NOTICE:

              
	 
	 
	
                NORDIC
      BIOTECH OPPORTUNITY

                FUND
      K/S

              	 	
                c/o
      Nordic Biotech Advisors

                Ostergade
      5, 3rd Floor

              
	 	 
      	 	
                DK-1100
      Copenhagen K

              
	By:	
                 

              	 	
                Denmark

              
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 

      

    

    

    Signature Page
to Purchase Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 
      	
              ADDRESS
      FOR NOTICE:

            
	BURLINGAME
      EQUITY INVESTORS LP	 
      	 
      
	 	 
      	 
      	 
      
	By:	 	 	 
	 	Name:	 
      	 
      
	 	Title:	 	 

    

     

    Signature Page
to Purchase Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 
      	
              ADDRESS
      FOR NOTICE:

            
	BURLINGAME
      EQUITY INVESTORS (OFFSHORE) LTD.	 
      	 
      
	 	 
      	 
      	 
      
	

              By: 

            	
               

            	 
      	 
      
	 	Name:	 	 
	 	Title:	 
      	 
      

    

     

    Signature Page
to Purchase Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 
      	
              ADDRESS
      FOR NOTICE:

            
	BURLINGAME
      EQUITY INVESTORS II LP	 
      	 
      
	 	 
      	 
      	 
      
	By:	
               

            	 
      	 
      
	 	Name:	 	 
	 	Title:	 
      	 
      

    

     

    Signature Page
to Purchase Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      Exhibit
A

    

     

    Purchasers

     

    
      	
              Name

            	
              Subscription

              Amount

            	
              Number
      of Shares

            	
              Number
      of Warrants

               

            
	
              Nordic
      Biotech Opportunity Fund K/S

            	
              $4,000,000.00

            	
              3,030,303

            	
              1,515,151

            
	
              Burlingame
      Equity Investors LP

            	
              $892,409.76

            	
              676,068

            	
              338,034

            
	
              Burlingame
      Equity Investors (Offshore) Ltd.

            	
              $308,808.72

            	
              233,946

            	
              116,973

            
	
              Burlingame
      Equity Investors II LP

            	
              $118,781.52

            	
              89,986

            	
              44,993Unassociated Document

    Exhibit
10.2

    
       

      REGISTRATION RIGHTS
AGREEMENT

       

      This
Registration Rights Agreement (the “Agreement”) is made and entered into as of
this 27th day of March, 2008, by and among Osteologix, Inc., a Delaware
corporation (the “Company”), and the “Holders” executing this Agreement and
named in that certain Purchase Agreement by and among the Company and the
Holders dated the date hereof (the “Purchase Agreement”).

       

      The
parties hereby agree as follows:

       

      1.   Certain
Definitions.

       

      As used in
this Agreement, the following terms shall have the following
meanings:

       

      “Affiliate”
means, with respect to any person, any other person which directly or indirectly
controls, is controlled by, or is under common control with, such
person.

       

      “Affiliated
Holder” shall mean Nordic Biotech Opportunity Fund K/S, and any successor and
assigns or permitted transferee of the Affiliated Holder who is a subsequent
holder of any Registrable Securities transferred by the Affiliated
Holder.

       

      “Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York
City and San Francisco, California are open for the general transaction of
business.

       

      “Common
Stock” shall mean the Company’s common stock, par value $0.0001 per share, and
any securities into which such shares may hereinafter be
reclassified.

       

      “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

       

      “Holders”
shall mean collectively, the Purchasers and the Affiliated Holder.

       

      “Major
Purchaser” shall mean any Holder (other than the Affiliated Holder) that
purchased 500,000 Units, or more, pursuant to the Purchase
Agreement.  For purposes of this Agreement, the Shares purchased by a
Holder shall include the Shares of all of its related persons that have also
purchased Shares under the Purchase Agreement.

       

      “Purchasers”
shall mean the Purchasers identified in the Purchase Agreement (other than the
Affiliated Holder) and any successor and assigns or permitted transferee of any
Purchaser who is a subsequent holder of any Registrable Securities.

       

      “Prospectus”
shall mean the prospectus included in any Registration Statement (including,
without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement
in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such
Registration Statement and by 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.

       

       

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

         

      

      “Register,”
“registered” and “registration” refer to a registration made by preparing and
filing a Registration Statement or similar document in compliance with the
Securities Act (as defined below), and the declaration or ordering of
effectiveness of such Registration Statement or document.

       

      “Registrable
Securities” shall mean (i) the Shares, and (ii) any other securities issued or
issuable with respect to or in exchange for the Shares; provided, that a
security held by Holder shall cease to be a Registrable Security upon (A) a sale
by such Holder pursuant to a Registration Statement or Rule 144 under the
Securities Act or (B) such security becoming eligible for sale by such Holder
pursuant to Rule 144(b) without volume limitations.

       

      “Registration
Statement” shall mean any registration statement or statements of the Company
filed under the Securities Act and (in each case) the Prospectus that covers the
resale of any of the Registrable Securities pursuant to the provisions of this
Agreement (including each of the Registration Statements referred to in Section
2), amendments and supplements to each such Registration Statement and
Prospectus, including pre- and post-effective amendments, all exhibits and all
material filed and incorporated by reference or deemed to be incorporated by
reference in each such Registration Statement.

       

      “Required
Holders” means the Holders holding a majority of the Registrable
Securities.

       

      “Required
Purchasers” mean the Purchasers holding a majority of the Registrable Securities
then owned by the Purchasers.

       

      “Rule 416”
and “Rule 429” mean “Rule 416” and “Rule 429”, respectively, each as promulgated
by the SEC pursuant to the Securities Act, as either such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
SEC having substantially the same effect as such Rule.

       

      “SEC”
means the U.S. Securities and Exchange Commission.

       

      “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

       

      “Shares”
means the shares of Common Stock issued to the Holders pursuant to the Purchase
Agreement or issued or issuable to the Holders upon the exercise, conversion or
exchange of any securities issued pursuant to the Purchase Agreement including
any Warrant Shares issued or issuable to the Holders pursuant to the exercise of
the Warrants (as well as any shares of Common Stock issued or issuable to the
Holders upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing).

       

      “Warrant”
means any one of the Warrants to purchase Common Stock issued to the Holders
pursuant to the Purchase Agreement and any amendments thereof.

       

      “Warrant
Shares” means the shares issued or issuable pursuant to the
Warrants.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      2.   Registration.

       

      (a)  Initial Registration
Statement.  Promptly following the closing of the purchase and
sale of the securities contemplated by the Purchase Agreement (the “Closing
Date”) but no later than thirty (30) days after the Closing Date (the “Filing
Deadline”), the Company shall prepare and file with the SEC a Registration
Statement covering the resale by the Purchasers of all Registrable Securities
then held by the Purchasers.  Such Registration Statement shall be on
Form S-1 or Form S-3, as available (the “Registration Statement”), or other
appropriate form in accordance herewith and shall include the plan of
distribution attached hereto as Exhibit A (except as
otherwise directed by the Purchasers).  Such Registration Statement
also shall cover, to the extent allowable under the Securities Act (including
Rule 416), such indeterminate number of additional shares of Common Stock
resulting from stock splits, stock dividends or similar transactions with
respect to the Registrable Securities.  Such Registration Statement
shall not include any shares of Common Stock or other securities for the account
of any holder without the prior written consent of the Required Purchasers,
except for shares of Common Stock held by the Company’s stockholders (other than
the Affiliated Holder) having “piggyback” registration rights expressly set
forth in registration rights agreements entered into by the Company prior to the
date hereof.  A copy of the initial filing of the Registration
Statement (and each pre-effective amendment thereto) shall be provided to the
Purchasers and their counsel at least three (3) Business Days prior to
filing.  If the Registration Statement covering the Registrable
Securities is not filed with the SEC on or prior to the Filing Deadline (or if
it is filed without giving the Purchasers the opportunity to review and comment
on the same as required above, the Company shall not be deemed to have satisfied
such filing requirement), then in addition to any other rights each Purchaser
may have hereunder or under applicable law, the Company will pay (i) an amount
in cash to each Purchaser other than the Affiliated Holder, as partial
liquidated damages and not as a penalty, equal to 1.0% of the aggregate purchase
price paid for Registrable Securities by such Purchaser pursuant to the Purchase
Agreement up to a maximum amount of all liquidated damages payable under this
Agreement to any Purchaser of 10% of the purchase price paid for Registrable
Securities by such Purchaser pursuant to the Purchase Agreement and (ii) for
each thirty- (30) day period or pro rata for any portion thereof following the
Filing Deadline for which the Registration Statement has not been filed or
reviewed pursuant to the terms hereof, an amount in cash to each Purchaser other
than the Affiliated Holder, as partial liquidated damages and not as a penalty,
equal to 1.0% of the aggregate purchase price paid for Registrable Securities by
such Purchaser pursuant to the Purchase Agreement up to a maximum amount of all
liquidated damages payable under this Agreement to any Purchaser of 10% of the
purchase price paid for Registrable Securities by such Purchaser pursuant to the
Purchase Agreement.  The amounts payable as partial liquidated damages
pursuant to this paragraph shall be paid within three (3) Business Days of the
Filing Deadline and monthly thereafter within three (3) Business Days of the
last day of each month following the commencement of the Filing Deadline until
the Registration Statement has been reviewed by the Purchasers and filed with
the SEC as required herein.  If the Company fails to pay any partial
liquidated damages pursuant to this section in full within seven (7) calendar
days after the date payable, the Company will pay interest thereon at a rate of
12% per annum (or such lesser amount that is permitted to be paid by applicable
law) to the Purchaser, accruing daily from the date such payments are due until
such amounts, plus all such interest thereon, are paid in
full.  Payments to be made pursuant to this Section 2(a)(i) shall
apply on a daily pro-rata basis for any portion of a month prior to the review
and filing of the Registration Statement required herein.  All
payments shall be in immediately available cash funds.  In all cases,
regardless of whether a Registration Statement has been declared effective, no
liquidated damages shall accrue or be payable with respect to securities that
are eligible for sale under Rule 144(b) without volume limitations.

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      (b)  Registration by the
Affiliated Holder.  At any time after the earlier of the date
that is six (6) months after the Closing Date and thirty (30) days after the
date of effectiveness of the Registration Statement filed in accordance with
Section 2(a) herein, each Affiliated Holder may request, no more than one time,
that the Company shall prepare and file with the SEC, a Registration Statement
covering the resale by such Affiliated Holder of all Registrable Securities
(including all Warrant Shares) then held by such Affiliated
Holder.  Promptly following any such request but no later than thirty
(30) Business Days after such request, the Company shall prepare and file with
the SEC a Registration Statement covering the resale by such Affiliated
Purchaser of all Registrable Securities then held by such Affiliated Purchaser;
provided, that
the Company shall not be required to file any Registration Statement under this
Section 2(b) if the filing of such Registration Statement would cause the
Company to file financial statements in advance of the date that the Company
would have otherwise been required to file such financial statements under the
Exchange Act.  Such Registration Statement shall be on Form S-1 or
Form S-3, as available, or other appropriate form in accordance herewith and
shall include the plan of distribution attached hereto as Exhibit A (except as
otherwise directed by such Affiliated Holder).  Such Registration
Statement also shall cover, to the extent allowable under the Securities Act
(including Rule 416), such indeterminate number of additional shares of Common
Stock resulting from stock splits, stock dividends or similar transactions with
respect to the Registrable Securities.  Such Registration Statement
shall not include any shares of Common Stock or other securities for the account
of any holder without the prior written consent of the Affiliated Purchaser that
requested such Registration Statement under this Section 2(b).  A copy
of the initial filing of the Registration Statement (and each pre-effective
amendment thereto) shall be provided to the Affiliated Purchaser and their
counsel at least three (3) Business Days prior to
filing.  Notwithstanding the foregoing, (i) if the board of directors
of the Company determines in good faith that any such registration would be
materially detrimental to the Company, the Company may defer such registration
for no more than ninety (90) days in any twelve (12) month
period.  Further, notwithstanding any other agreement between an
Affiliated Holder and the Company, each Affiliated Holder agrees that it will
not elect to cause the Company to register any other securities held by such
Affiliated Holder for resale prior to the date set forth in this
Section 2(b).

       

      (c)  Expenses.  The
Company will pay all expenses associated with each registration, including
filing and printing fees, the Company’s counsel and accounting fees and
expenses, costs associated with clearing the Registrable Securities for sale
under applicable state securities laws, listing fees, reasonable out-of-pocket
fees and expenses of one counsel to all Major Purchasers (which fees and
expenses shall not exceed $15,000) and the Major Purchasers’ reasonable
out-of-pocket expenses in connection with the registration, but excluding
discounts, commissions, fees of underwriters, selling brokers, dealer managers
or similar securities industry professionals with respect to the Registrable
Securities being sold.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      (d)  Additional Registration
Statements.  If at any time the SEC takes the position that the
offering of some or all of the Registrable Securities in a Registration
Statement is not eligible to be made on a delayed or continuous basis under the
provisions of Rule 415 or requires any Purchaser in connection with a
Registration Statement filed under Section 2(a) or the Affiliated Holder in
connection with a Registration Statement filed under Section 2(b) to be named as
an “underwriter”, the Company shall use its commercially reasonable efforts to
persuade the SEC that the offering contemplated by the Registration Statement is
a valid secondary offering and not an offering “by or on behalf of the issuer”
as defined in Rule 415 and that none of the Purchasers or the Affiliated Holder,
as the case may be, is an “underwriter”.  The Purchasers or the
Affiliated Holder, as applicable, shall have the right to participate or have
their counsel participate in any meetings or discussions with the SEC regarding
the SEC’s position and to comment or have their counsel comment on any written
submission made to the SEC with respect thereto.  No such written
submission shall be made to the SEC to which the Purchasers’ or Affiliated
Holder’s counsel, as applicable, reasonably objects, which determination shall
be made in the sole discretion of the Company and its counsel.  In the
event that, despite the Company’s commercially reasonable efforts and compliance
with the terms of this Section 2(d), the SEC refuses to alter its position, the
Company shall remove from the Registration Statement such portion of the
Registrable Securities (the “Cut Back Shares”) and/or agree to such restrictions
and limitations on the registration and resale of the Registrable Securities as
the SEC may require to assure the Company’s compliance with the requirements of
Rule 415; provided, however, that the
Company shall not agree to name any Purchaser or the Affiliated Holder as an
“underwriter” in such Registration Statement without the prior written consent
of such Purchaser or the Affiliated Holder (collectively, the “SEC
Restrictions”).  Any cut-back imposed on the Purchasers or the
Affiliated Holder pursuant to this Section 2(d) shall, unless the SEC
Restrictions otherwise require or provide and unless otherwise directed in
writing by a Purchaser or the Affiliated Holder as to its Registrable
Securities, will be applied as follows: (i) first to Registrable Securities
represented by the Shares, other than Warrant Shares, held by the Affiliated
Holder (applied, in the case that some of such shares of Common Stock may be
registered, to the Affiliated Holder(s) on a pro rata basis based on the total
number of unregistered Shares, other than Warrant Shares, held by any Affiliated
Holder)1; second to
the Warrant Shares held by the Affiliated Holder (applied, in the case that some
Warrant Shares may be registered, to the Affiliated Holder(s) on a pro rata
basis based on the total number of unregistered Warrant Shares held by any
Affiliated Holder)2;
third to Registrable Securities represented by the Shares, other than Warrant
Shares, held by Purchasers (applied, in the case that some of such shares of
Common Stock may be registered, to the Purchasers on a pro rata basis based on
the total number of unregistered Shares, other than Warrant Shares, held by any
Purchaser); and fourth to the Warrant Shares held by Purchasers (applied, in the
case that some Warrant Shares may be registered, to the Purchasers on a pro rata
basis based on the total number of unregistered Warrant Shares held by any
Purchaser).  No liquidated damages shall accrue on or as to any Cut
Back Shares until such time as the Company is able to effect the registration of
the Cut Back Shares in accordance with any SEC Restrictions (such date, the
“Restriction Termination Date”).  From and after the Restriction
Termination Date, all of the provisions of this Section 2 (including the
liquidated damages provisions) shall again be applicable to the Cut Back Shares;
provided, however, that for
such purposes, the Filing Deadline with respect to any such Cut Back Shares
shall be the 45th day
following the Restriction Termination Date.

       

      (e)  Effectiveness.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      (i)  The
Company shall use commercially reasonable efforts to cause the Registration
Statement(s) to be declared effective by the SEC as soon as practicable
(including filing with the SEC a request for acceleration of its effectiveness
in accordance with Rule 461 within five (5) Business Days of the date that the
Company is notified (orally or in writing, whichever is earlier) by the staff of
the SEC that a Registration Statement will not be reviewed, or not be subject to
further review), with respect to the initial Registration Statement(s) filed
pursuant to Sections 2(a) and 2(b) hereof, but in any event no later than one
hundred and twenty (120) days after filing.  The Company shall notify
the Purchasers or the applicable Affiliated Holder by facsimile or e-mail as
promptly as practicable, and in any event, within twenty-four (24) hours, after
any Registration Statement is declared effective and shall simultaneously
provide the Purchasers or the applicable Affiliated Holder with copies of any
related Prospectus to be used in connection with the sale or other disposition
of the securities covered thereby.  If (A)(i) the Registration
Statement is not declared effective by the SEC prior to the earlier of five (5)
Business Days after the staff of the SEC shall have informed the Company (orally
or in writing, whichever is earlier) that such Registration Statement will not
be reviewed by the staff of the SEC or not be subject to further review or (ii)
one hundred and twenty (120) days after filing, other than as a result of
limitations imposed by the SEC or (B) after a Registration Statement has been
declared effective by the SEC, sales cannot be made pursuant to such
Registration Statement for any reason (including without limitation by reason of
a stop order, or the Company’s failure to update the Registration Statement),
but excluding the inability of any Purchaser to sell the Registrable Securities
covered thereby due to market conditions and except as excused pursuant to
Section 2(e)(ii) below, then, until the shares are eligible for resale under
Rule 144, in addition to any other rights each Purchaser may have hereunder or
under applicable law, the Company will pay (i) an amount in cash to each
Purchaser other than the Affiliated Holder, as partial liquidated damages and
not as a penalty, equal to 1.0% of the aggregate purchase price paid for
Registrable Securities by such Purchaser pursuant to the Purchase Agreement up
to a maximum amount of all liquidated damages payable under this Agreement to
any Purchaser of 10% of the purchase price paid for Registrable Securities by
such Purchaser pursuant to the Purchase Agreement and (ii) for each thirty- (30)
day period or pro rata for any portion thereof following the occurrence of an
event set forth in any of (A) or (B) above an amount in cash to each Purchaser
other than the Affiliated Holder, as partial liquidated damages and not as a
penalty, equal to 1.0% of the aggregate purchase price paid for Registrable
Securities by such Purchaser pursuant to the Purchase Agreement up to a maximum
amount of all liquidated damages payable under this Agreement to any Purchaser
of 10% of the purchase price paid for Registrable Securities by such Purchaser
pursuant to the Purchase Agreement.  The amounts payable as partial
liquidated damages pursuant to this paragraph shall be paid within three (3)
Business Days of the occurrence of an event set forth in any of (A) or (B) above
and monthly thereafter within three (3) Business Days of the last day of each
month following the occurrence of an event set forth in any of (A) or (B) above
until such events are cured.  The amounts payable as partial
liquidated damages pursuant to this paragraph shall be paid within three (3)
Business Days of the occurrence of an event set forth in any of (A) or (B) above
and monthly thereafter within three (3) Business Days of the last day of each
month following the occurrence of an event set forth in any of (A) or (B) above
until such occurrence has been cured.  If the Company fails to pay any
partial liquidated damages pursuant to this section in full within seven (7)
days after the date payable, the Company will pay interest thereon at a rate of
12% per annum (or such lesser amount that is permitted to be paid by applicable
law) to the Purchaser, accruing daily from the date such payments are due until
such amounts, plus all such interest thereon, are paid in full.  Such
payments shall be made to each Purchaser in immediately available cash
funds.  For purposes of the obligations of the Company under this
Agreement, except in the case of any Purchasers who elect in writing not to have
its Registrable Securities included in the Registration Statement, no
Registration Statement shall be considered “effective” with respect to any
Registrable Securities unless such Registration Statement lists the Purchasers
of such Registrable Securities as “Selling Stockholders” and includes such other
information as is required to be disclosed with respect to such Purchasers to
permit them to sell all of their Registrable Securities pursuant to such
Registration Statement.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      (ii)  The
Holders hereby acknowledge that there may occasionally be times when the Company
must suspend the use of the Prospectus until such time as an amendment to the
Registration Statement has been filed by the Company and declared effective by
the SEC or until the Company has amended or supplemented such
Prospectus.  Each Holder hereby covenants that it will not sell any
securities pursuant to the Prospectus during the period commencing at the time
at which the Company gives such Holder notice of the suspension of the use of
the Prospectus and ending at the time the Company gives such Holder notice that
such Holder may thereafter effect sales pursuant to the
Prospectus.  Notwithstanding anything herein to the contrary, the
Company shall not suspend use of the Registration Statement by any Holder unless
in the good faith determination of the Company such suspension is required by
the federal securities laws, including without limitation, the rules and
regulations promulgated thereunder; provided, however, that
(i) except as otherwise provided by clause (ii) below, in the event
that such suspension is required by the need for an amendment or supplement to
the Registration Statement or the Prospectus, the Company shall promptly file
such required amendments or supplements as shall be necessary for the
disposition of the Registrable Securities to recommence and (ii) if the Board of
Directors has determined in good faith that offers and sales pursuant to the
Prospectus should not be made by reason of the presence of material undisclosed
circumstances or developments with respect to which the disclosure that would be
required in the Registration Statement would be premature or would have a
material adverse effect on the Company and its business, the Company may suspend
the use of the Prospectus and defer the filing of any required amendment or
supplement for the minimum period of time necessary to avoid such material
adverse effect (an “Allowed Delay”); provided, further, that in the
case of clause (ii) above, the Company shall not be entitled to exercise
its right to block such sales or suspend use of the Prospectus more than three
times (not to exceed thirty (30) days each) during the effectiveness of the
Registration Statement nor more than a total of thirty (30) days in any twelve
(12)-month period.

       

      3.   Company
Obligations.  The Company will use all reasonable efforts
to effect the registration of the Registrable Securities in accordance with the
terms hereof, and pursuant thereto the Company will, as expeditiously as
possible (but subject to Section 2(e)(ii)):

       

      (a)  use all
reasonable efforts to cause such Registration Statement to become effective and,
to remain continuously effective for a period that will terminate upon the
earlier of (i) the date on which all Registrable Securities covered by such
Registration Statement as amended from time to time, have been sold, and (ii)
the date on which all Registrable Securities covered by such Registration
Statement may be sold without volume limitations pursuant to Rule 144(b) (the
“Effectiveness Period”) and advise the Purchasers in writing when the
Effectiveness Period has expired;

       

      (b)  (i) prepare
and file with the SEC such amendments and post-effective amendments to such
Registration Statement and the Prospectus as may be necessary to keep such
Registration Statement effective for the Effectiveness Period; (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 practicable to any comments received
from the SEC with respect to such Registration Statement or any amendment
thereto and, as promptly as reasonably practicable, upon request, provide the
Purchasers true and complete copies of all correspondence from and to the SEC
relating to such Registration Statement; and (iv) comply with the provisions of
the Securities Act and the Exchange Act with respect to the distribution of all
of the Registrable Securities covered by such Registration
Statement;

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

      (c)  Use all
reasonable efforts to (i) prevent the issuance of any stop order or other
suspension of effectiveness and, (ii) if such order is issued, obtain the
withdrawal of any such order at the earliest possible moment;

       

      (d)  prior to
any resale of Registrable Securities, use all reasonable efforts to
register or qualify or cooperate with the Holders and their counsel in
connection with the registration or qualification of such Registrable Securities
for offer and sale under the securities or blue sky laws of such jurisdictions
requested by the Holders and do any and all other commercially reasonable acts
or things necessary or advisable to enable the distribution in such
jurisdictions of the Registrable Securities covered by the Registration
Statement; provided, however, that the
Company shall not be required in connection therewith or as a condition thereto
to (i) qualify to do business in any jurisdiction where it would not otherwise
be required to qualify but for this Section 3(d), (ii) subject itself to general
taxation in any jurisdiction where it would not otherwise be so subject but for
this Section 3(d) or (iii) file a general consent to service of process in any
such jurisdiction;

       

      (e)  use all
reasonable efforts to cause all Registrable Securities covered by a Registration
Statement to be listed on each securities exchange, interdealer quotation system
or other market (including the OTC-BB) on which similar securities issued by the
Company are then listed or traded;

       

      (f)  promptly
notify the Purchasers and/or the applicable Affiliated Holder, at any time when
a Prospectus relating to Registrable Securities is required to be delivered
under the Securities Act (including during any period when the Company is in
compliance with Rule 172), upon discovery that, or upon the happening of any
event as a result of which, the Prospectus included in a Registration Statement,
as then in effect, includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing,
and at the request of any such holder, promptly prepare, file with the SEC
pursuant to Rule 172 and furnish to such holder a supplement to or an amendment
of such Prospectus as may be necessary so that such Prospectus shall not include
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 not misleading
in light of the circumstances then existing;

       

      (g)  promptly
notify the Purchasers and/or the applicable Affiliated Holder (i) of any request
by the SEC or any other Federal or state governmental authority during the
period of effectiveness of each Registration Statement for amendments or
supplements to such Registration Statement or Prospectus or for additional
information; (ii) of the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of the
Registration Statement covering any or all of the Registrable Securities or the
initiation of any proceedings for that purpose; (iii) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction, or the initiation or threatening of any proceeding for such
purpose; and (iv) of the occurrence of any event or passage of time that makes
the financial statements included in such Registration Statement ineligible for
inclusion therein;

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      (h)  with a
view to making available to the Purchasers and the Affiliated Holder the
benefits of Rule 144 (or its successor rule) and any other rule or regulation of
the SEC that may at any time permit the Purchasers or the Affiliated Holder to
sell shares of Common Stock to the public without registration, the Company
covenants and agrees to: (i) make and keep public information available, as
those terms are understood and defined in Rule 144, until the earlier of (A) six
months after such date as all of the Registrable Securities may be resold
pursuant to Rule 144(b) or any other rule of similar effect or (B) such date as
all of the Registrable Securities shall have been resold; (ii) file with the SEC
in a timely manner all reports and other documents required of the Company under
the Exchange Act (whether or not such reports and other documents are required
to be filed under the Exchange Act); and (iii) furnish to each Purchaser and
Affiliated Holder upon request, as long as such Purchaser or Affiliated Holder
owns any Registrable Securities, (A) a written statement by the Company that it
has complied with the reporting requirements of the Exchange Act and (B) such
other information as may be reasonably requested in order to avail such
Purchaser or Affiliated Holder of any rule or regulation of the SEC that permits
the selling of any such Registrable Securities without registration;
and

       

      (i)  the
Company represents and warrants that (A) since December 31, 2007 through the
date of this Agreement, it has filed with the SEC in a timely manner all reports
and other documents required of the Company under the Exchange Act and (B)
neither the Company nor any of its consolidated or unconsolidated subsidiaries
have, since the end of the last fiscal year for which certified financial
statements of the Company and its consolidated subsidiary were included in a
report filed pursuant to Section 13(a) or 15(d) of the Exchange Act through the
date of this Agreement: (1) failed to pay any dividend or sinking fund
installment on preferred stock; or (2) defaulted (x) on any installment or
installments on indebtedness for borrowed money, or (y) on any rental on one or
more long term leases, which defaults in the aggregate are material to the
financial position of the Company and its consolidated and unconsolidated
subsidiaries, taken as a whole.

       

      4.   Information.  The
Company shall not disclose material nonpublic information to the Purchasers, or
to advisors to or representatives of the Purchasers, unless prior to disclosure
of such information the Company identifies such information as being material
nonpublic information and provides the Purchasers, such advisors and
representatives with the opportunity to accept or refuse to accept such material
nonpublic information for review and any Purchaser wishing to obtain such
information enters into an appropriate confidentiality agreement with the
Company with respect thereto.  The Purchasers and the Affiliated
Holder agree and acknowledge that their access to documents in connection with
any review by the SEC of a Registration Statement, and their participation in
any related meetings or discussion with the Company or the SEC in connection
therewith in accordance with Section 2(d) may expose them to material nonpublic
information and that the Company will request the execution of appropriate
confidentiality agreements as a condition to providing any such access to any
Purchaser or Affiliated Holder.

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

      

      5.   Obligations of the
Holders.

       

      (a)  Each
Holder shall promptly furnish in writing to the Company such information
regarding itself, the Registrable Securities held by it and the intended method
of disposition of the Registrable Securities held by it, as shall be reasonably
required to effect the registration of such Registrable Securities and shall
execute such documents in connection with such registration as the Company may
reasonably request.  At least three (3) Business Days prior to the
first anticipated filing date of any Registration Statement, the Company shall
notify each Holder of the information the Company requires from such Holder if
such Holder elects to have any of the Registrable Securities included in the
Registration Statement.  A Holder shall provide such information to
the Company at least three (3) Business Days prior to the first anticipated
filing date of such Registration Statement if such Holder elects to have any of
the Registrable Securities included in the Registration Statement.

       

      (b)  Each
Holder, by its 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 a Registration Statement hereunder, unless such Holder
has notified the Company in writing of its election to exclude all of its
Registrable Securities from such Registration Statement.

       

      (c)  Each
Holder agrees that, upon receipt of any notice from the Company of either (i)
the commencement of an Allowed Delay pursuant to Section 2(e)(ii) or (ii) the
happening of an event pursuant to Section 3(f) hereof, such Holder will
immediately discontinue disposition of Registrable Securities pursuant to the
Registration Statement covering such Registrable Securities, until the Holder is
advised by the Company that a supplemented or amended prospectus has been filed
with the SEC and until any related post-effective amendment is declared
effective and, if so directed by the Company, the Holder shall deliver to the
Company or destroy (and deliver to the Company a certificate of destruction) all
copies in the Holder’s possession of the Prospectus covering the Registrable
Securities current at the time of receipt of such notice.

       

      6.   Indemnification.

       

      (a)  Indemnification by the
Company.  The Company will indemnify and hold harmless each
Holder and its officers, directors, members, partners, employees, attorneys and
agents, successors and assigns, and each other person, if any, who controls such
Holder within the meaning of the Securities Act, against any losses, claims,
damages or liabilities, joint or several, to which they may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of any material fact contained
in any Registration Statement, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereof; (ii) the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading; (iii) any violation
or alleged violation by the Company of the Securities Act, Exchange Act or any
state securities law, or any rule or regulation thereunder, in connection with
the performance of its obligations under this Agreement; or (iv) any
failure to register or qualify the Registrable Securities included in any such
Registration in any state where the Company or its agents has affirmatively
undertaken or agreed in writing that the Company will undertake such
registration or qualification on a Holder’s behalf and will reimburse such
Holder, and each such officer, director or member and each such controlling
person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage or liability (or
action in respect thereof); provided, however, that the
Company will not be liable for amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the
consent of the Company, which consent shall not be unreasonably withheld, and
the Company will not be liable in any such case to the extent that any such
loss, claim, damage, liability or expense arises out of or is based upon
(i) an untrue statement or alleged untrue statement or omission or alleged
omission made in the Registration Statement, the Prospectus or any amendment or
supplement thereto in reliance upon and in conformity with written information
furnished to the Company by or on behalf of the Holder expressly for use
therein, or (ii) the failure of the Holder to comply with the covenants and
agreements contained in Section 5 hereof and Section 6(a) of the
Purchase Agreement respecting the sale of the Shares, or (iii) the
inaccuracy of any representation or warranty made by the Holder herein; or (iv)
the use by such Holder of an outdated or defective Prospectus after the Company
has notified such Holder that the Prospectus is outdated or
defective.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b)  Indemnification by the
Holders.  Each Holder agrees, severally but not jointly, to
indemnify and hold harmless, to the fullest extent permitted by law, the
Company, its directors, officers, employees, stockholders and each person who
controls the Company (within the meaning of the Securities Act) against any
losses, claims, damages, liabilities and expense (including reasonable attorney
fees) resulting from any untrue statement of a material fact or any omission of
a material fact required to be stated in the Registration Statement or
Prospectus or preliminary prospectus or amendment or supplement thereto or
necessary to make the statements therein not misleading, to the extent, but only
to the extent that such untrue statement or omission is contained in any
information furnished in writing by such Holder to the Company specifically for
inclusion in such Registration Statement or Prospectus or amendment or
supplement thereto and will reimburse the Company, its directors, officers,
employees, stockholders and each person who controls the Company (within the
meaning of the Securities Act) for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage or liability (or action in respect thereof).  In no
event shall the liability of a Holder be greater in amount than the dollar
amount of the proceeds (net of all expense paid by such Holder in connection
with any claim relating to this Section 6) received by such Holder upon the sale
of the Registrable Securities included in the Registration Statement giving rise
to such indemnification obligation.

       

      (c)  Conduct of Indemnification
Proceedings.  Any person entitled to indemnification hereunder
shall (i) give prompt notice to the indemnifying party of any claim with respect
to which it seeks indemnification and (ii) permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party; provided, that any
person entitled to indemnification hereunder shall have the right to employ
separate counsel and to participate in the defense of such claim, but the fees
and expenses of such counsel shall be at the expense of such person unless (a)
the indemnifying party has agreed to pay such fees or expenses, (b) the
indemnifying party shall have failed to assume the defense of such claim and
employ counsel reasonably satisfactory to such person or (c) in the reasonable
judgment of any such person, based upon written legal opinion of its counsel
satisfactory to the indemnifying party, a conflict of interest exists between
such person and the indemnifying party with respect to such claims (in which
case, if the person notifies the indemnifying party in writing that such person
elects to employ separate counsel at the expense of the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such claim
on behalf of such person); and provided, further, that the
failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations hereunder, except to the
extent that such failure to give notice shall materially adversely affect the
indemnifying party in the defense of any such claim or litigation.  It
is understood that the indemnifying party shall not, in connection with any
proceeding in the same jurisdiction, be liable for fees or expenses of more than
one separate firm of attorneys at any time for all such indemnified
parties.  No indemnifying party will, except with the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement
that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation.

       

       

      
        
          
          

        

        
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      (d)  Contribution.  If
for any reason the indemnification provided for in the preceding paragraphs (a)
and (b) is unavailable to an indemnified party or insufficient to hold it
harmless, other than as expressly specified therein, then the indemnifying party
shall contribute to the amount paid or payable by the indemnified party as a
result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnified party and the
indemnifying party, as well as any other relevant equitable
considerations.  No person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the Securities Act shall be entitled to
contribution from any person not guilty of such fraudulent
misrepresentation.  In no event shall the contribution obligation of a
holder of Registrable Securities be greater in amount than the dollar amount of
the proceeds (net of all expenses paid by such Holder in connection with any
claim relating to this Section 6 and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission) received by it upon the sale of the
Registrable Securities giving rise to such contribution obligation.

       

      7.   Miscellaneous.

       

      (a)  Amendments and
Waivers.  This Agreement may be amended, modified or waived
only by a writing signed by the Company, the Major Purchasers and the Affiliated
Purchasers.

       

      (b)  Notices.  All
notices and other communications provided for or permitted hereunder shall be
made as set forth in Section 10 of the Purchase Agreement.

       

      (c)  Assignments and Transfers by
Holders.  The provisions of this Agreement shall be binding
upon and inure to the benefit of the Holders and their respective successors and
assigns.  A Holder may transfer or assign, in whole or from time to
time in part, to one or more persons its rights hereunder in connection with the
transfer of Registrable Securities by such Holder to such person; provided, that (i)
such Holder complies with all laws applicable thereto and provides written
notice of assignment to the Company promptly after such assignment is effected
and (ii) the transferee agrees in writing to be bound by this Agreement as if it
were a party hereto.

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

      

      (d)  Assignments and Transfers by
the Company.  This Agreement may not be assigned by the Company
(whether by operation of law or otherwise) without the prior written consent of
the Required Holders; provided, however, that the
Company may assign its rights and delegate its duties hereunder to any surviving
or successor corporation in connection with a merger or consolidation of the
Company with another corporation, or a sale, transfer or other disposition of
all or substantially all of the Company’s assets to another corporation, without
the prior written consent of the Required Holders and the Affiliated Holder,
after notice duly given by the Company to each Holder.

       

      (e)  Benefits of the
Agreement.  The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective permitted successors
and assigns of the parties.  Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

       

      (f)  Counterparts;
Faxes.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.  This Agreement
may also be executed via facsimile, which shall be deemed an
original.

       

      (g)  Titles and
Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

       

      (h)  Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof but shall be interpreted as if it were written so as to be
enforceable to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.  To the
extent permitted by applicable law, the parties hereby waive any provision of
law which renders any provisions hereof prohibited or unenforceable in any
respect.

       

      (i)  Further
Assurances.  The parties shall execute and deliver all such
further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to
evidence the fulfillment of the agreements herein contained.

       

      (j)  Entire
Agreement.  This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein.  This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

       

       

      
        
          
          

        

        
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      (k)  Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial.  This Agreement shall be
governed by, and construed in accordance with, the internal laws of the State of
New York without regard to the choice of law principles thereof.  Each
of the parties hereto irrevocably submits to the exclusive jurisdiction of the
courts of the State of New York located in New York County and the United States
District Court for the Southern District of New York for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this
Agreement and the transactions contemplated hereby.  Service of
process in connection with any such suit, action or proceeding may be served on
each party hereto anywhere in the world by the same methods as are specified for
the giving of notices under this Agreement.  Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such
court.  Each party hereto irrevocably waives any objection to the
laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient
forum.  EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

       

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

       

      Each
Holder has been represented by its own separate legal counsel in their review
and negotiation of this Agreement and with respect to the transactions
contemplated hereby.  The Company has elected to provide all Holders
with the same terms and Agreement for the convenience of the Company and not
because it was required or requested to do so by the Holders.  The
Company acknowledges that such procedure with respect to this Agreement in no
way creates a presumption that the Holders are in any way acting in concert or
as a group with respect to this Agreement or the transactions contemplated
hereby or thereby.

       

      

       

      [Signature
pages follow]

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      IN WITNESS
WHEREOF, the parties have executed this Agreement or caused their duly
authorized officers to execute this Agreement as of the date first above
written.

      
         

         

        
          	OSTEOLOGIX,
      INC.	 
	 	 	 
	By:	 	 
	 	
                  Name:

                	 
	 	
                  Title:

                	 

        

        
        

        

        Signature Page
to Registration Rights Agreement

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

          
            	PURCHASERS:	
                     

                  
	 
	 
	
                    NORDIC
      BIOTECH OPPORTUNITY

                    FUND
      K/S

                  	
                     

                  
	 	 
      	
                     

                  
	By:	
                     

                  	
                     

                  
	 	Name:	 
	 	Title:	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

          

        

         

        Signature Page
to Registration Rights Agreement

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	 	
                   

                
	BURLINGAME
      EQUITY INVESTORS LP	 
      
	 	 
      	 
      
	By:	 	 
	 	Name:	 
      
	 	Title:	 

        

         

        Signature Page
to Registration Rights Agreement

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	 	
                   

                
	BURLINGAME
      EQUITY INVESTORS (OFFSHORE) LTD.	 
      
	 	 
      	 
      
	

                  By: 

                	
                   

                	 
      
	 	Name:	 
	 	Title:	 
      

        

         

        Signature Page
to Registration Rights Agreement

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	 	
                   

                
	BURLINGAME
      EQUITY INVESTORS II LP	 
      
	 	 
      	 
      
	By:	
                   

                	 
      
	 	Name:	 
	 	Title:	 
      

        

        
           

          
            Signature Page
to Registration Rights Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]