Document:

ex4-12.htm

    Exhibit
4.12

     

    
      As
Amended

      2/12/98
and 4/27/99

      

      THE
BLACK & DECKER CORPORATION

      

      1995
STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS

      

      

      Attracting and retaining qualified
individuals to serve as non-employee directors is vital to the continued success
of The Black & Decker Corporation.  To that end and to bind the
interests of those individuals to the interests of the Corporation and its
stockholders, this stock option plan offers them an attractive opportunity to
acquire a proprietary interest in the Corporation.

      

      ARTICLE
1:00

      

      Definitions

      

      

      
        	
                1:01

              	
                The
      term “Board of Directors” shall mean the Board of Directors of the
      Corporation.

              

      

      

      
        	
                1:02

              	
                The
      term “Change in Control” shall have the meaning provided in Section 7:02
      of the Plan.

              

      

      

      
        	
                1:03

              	
                The
      term “Code” shall mean the Internal Revenue Code of 1986, as amended, and
      any regulations promulgated
thereunder.

              

      

      

      
        	
                1:04

              	
                The
      term “Common Stock” shall mean the shares of common stock, par value $.50
      per share, of the Corporation.

              

      

      

      
        	
                1:05

              	
                The
      term “Corporation” shall mean The Black & Decker
      Corporation.

              

      

      

      
        	
                1:06

              	
                The
      term “Exchange Act” shall mean the Securities Exchange Act of 1934, as
      amended.

              

      

      

      
        	
                1:07

              	
                The
      term “Fair Market Value of a share of Common Stock” shall mean the average
      of the high and low sale price per share of Common Stock as finally
      reported in the New York Stock Exchange Composite Transactions for the New
      York Stock Exchange, or if shares of Common Stock are not sold on such
      date, the average of the high & low sole price per share of Common
      Stock as finally reported in the New York Stock Exchange Composite
      Transactions for the New York Stock Exchange for the most recent prior
      date on which shares of Common Stock were
sold.

              

      

      

      
        	
                1:08

              	
                The
      term “Limited Stock Appreciation Right” shall mean a limited tandem stock
      appreciation right that entitles the holder to receive cash upon a Change
      in Control pursuant to Article 7:00 of the
Plan.

              

      

      

      
        	
                1:09

              	
                The
      term “Option” or “Stock Option” shall mean a right granted pursuant to the
      Plan to purchase shares of Common
Stock.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                1:10

              	
                The
      term “Option Agreement” shall mean the written agreement representing
      Options granted pursuant to the Plan as contemplated by Article 5:00 of
      the Plan.

              

      

      

      
        	
                1:11

              	
                The
      term “Plan” shall mean The Black & Decker 1995 Stock Option Plan for
      Non-Employee Directors as approved by the Board of Directors on December
      8, 1994, and adopted by the stockholders of the Corporation at the 1995
      Annual Meeting of Stockholders, as the same may be amended from time to
      time.

              

      

      

      
        	
                 
      

              	
                ARTICLE
      2:00

              

      

      

      
        	
                 
      

              	
                Effective
      Date of the Plan

              

      

      

      
        	
                2:01

              	
                The
      Plan shall become effective upon stockholder approval, provided that such
      approval is received on or before May 31,
1995.

              

      

      

      
        	
                 
      

              	
                ARTICLE
      3:00

              

      

      

      
        	
                 
      

              	
                Participation
      in the Plan

              

      

      

      
        	
                3:01

              	
                Participation
      in the Plan shall be limited to individuals who are directors of the
      Corporation but not full-time employees of the Corporation on the date of
      grant of an Option.

              

      

      

      
        	
                3:02

              	
                No
      member of the Board of Directors who is a full-time employee shall be
      eligible to participate in the Plan.  No director who owns
      beneficially more than 10% of the total combined voting power of all
      classes of stock of the Corporation shall be eligible to participate in
      the Plan.

              

      

      

      
        	
                3:03

              	
                Upon
      initial election to the Board of Directors and upon each successive
      reelection to the Board, a director who on the date of election or
      reelection is not a full-time employee of the Corporation shall
      automatically receive an Option to purchase 2,500 shares of Common Stock,
      provided, however, that if the initial election occurs at other than an
      annual meeting of stockholders, the number of shares shall be prorated
      based on the number of months, rounded up to whole months, in the
      twelve-month period ending at the next annual meeting of
      stockholders.

              

      

      

      
        	
                 
      

              	
                ARTICLE
      4:00

              

      

      

      
        	
                 
      

              	
                Stock
      Subject to the Plan

              

      

      

      
        	
                4:01

              	
                There
      shall be reserved for the granting of Option pursuant to the Plan and for
      issuance and sale pursuant to such Options 150,000 shares of Common
      Stock.  To determine the number of shares of Common Stock
      available at any time for the granting of Options, there shall be deducted
      from the total number of reserved shares of Common Stock the number of
      shares of Common Stock in respect of which Options have been granted
      pursuant to the Plan that are still outstanding or have been
      exercised.  The shares of Common Stock to be issued upon the
      exercise of Options granted pursuant to the Plan shall be made available
      from the authorized and unissued shares of Common Stock.  If for
      any reason shares of Common Stock as to which an Option has been granted
      cease to be subject to purchase thereunder, then such shares of Common
      Stock again shall be available for issuance pursuant to the
      Plan.  Except as provided in Section 4:03, however, the
      aggregate number of shares of Common Stock that may be issued upon the
      exercise of Options pursuant to the Plan shall not exceed 150,000
      shares.

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
 

      
        	
                4:02

              	
                Proceeds
      from the purchase of shares of Common Stock upon the exercise of Options
      granted pursuant to the Plan shall be used for the general business
      purposes of the Corporation.

              

      

      

      
        	
                4:03

              	
                Subject
      to the provisions of Section 7:02, in the event of reorganization,
      recapitalization, stock split, stock dividend, combination of shares of
      Common Stock, merger, consolidation, share exchange, acquisition of
      property or stock, or any change in the capital structure of the
      Corporation, the number and kind of shares reserved for the granting of
      Options and the number, kind and price of shares covered by Options
      granted pursuant to the Plan but not then exercised shall be adjusted
      appropriately by resolution of the
Board.

              

      

      

      
        	
                 
      

              	
                ARTICLE
      5:00

              

      

      

      
        	
                 
      

              	
                Terms
      and Conditions of Options

              

      

      

      
        	
                5:01

              	
                Each
      Option granted pursuant to the Plan shall be evidenced by an Option
      Agreement in such form as the Board of Directors from time to time may
      determine.

              

      

      

      
        	
                5:02

              	
                The
      exercise price per share for Options shall be equal to the Fair Market
      Value of a share of Common Stock on the date of grant of the
      Options.

              

      

      

      
        	
                5:03

              	
                Subject
      to the other limitations set forth in the Plan, the term of the Option
      shall be 10 years from the date on which it is
  granted.

              

      

      

      
        	
                5:04

              	
                Each
      Option shall become exercisable eleven months after the date the Option
      was granted.  If an Option holder does not purchase the full
      number of shares of Common Stock that he or she at any time has become
      entitled to purchase, he or she may purchase all or any part of those
      shares of Common Stock at any subsequent time during the term of the
      Option.

              

      

      

      
        	
                5:05

              	
                Options
      shall be nontransferable and nonassignable, except that Options may be
      transferred by testamentary instrument or by the laws of descent and
      distribution and may be transferred pursuant to a qualified domestic
      relations order as defined by the Internal Revenue Code of 1986, as
      amended, or Title I of the Employee Retirement Income Security
      Act.

              

      

      

      
        	
                5:06

              	
                If
      an Option holder ceases to be a director of the Corporation, his or her
      Option and all rights thereunder shall terminate effective at the close of
      business on the date the Option holder ceases to be a director of the
      Corporation, except (i) to the extent previously exercised, (ii) as
      provided in Section 5:07 and 5:08 and (iii) for a period of 30 days after
      he or she ceases to be a director of the Corporation, the Option holder
      shall be entitled to exercise any Option that was exercisable at the close
      of business on the date the Option holder ceased to be a director of the
      Corporation.

              

      

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
 

      
        	
                5:07

              	
                If
      an Option holder dies during the term of his or her Option without having
      fully exercised the Option, the executor or administrator of his or her
      estate or the person who inherits the right to exercise the Option by
      bequest or inheritance shall have the right within three years of the
      Option holder’s death to purchase the number of shares of Common Stock
      that the deceased Option holder was entitled to purchase at the date of
      his or her death, after  which the Option shall lapse, provided
      that in no event may any Option be exercised after the expiration of the
      term of the Option.

              

      

      

      
        	
                5:08

              	
                If
      an Option holder ceases to be a director of the Corporation without having
      fully exercised his or her Option and (i) the Option holder is 65 years of
      age or older, or (ii) the Option holder has been a director of the
      Corporation or any of its subsidiaries for at least 5 years, then the
      Option holder shall have the right within three years of the Option
      holder’s termination as a director to purchase the number of shares of
      Common Stock that the Option holder was entitled to purchase at the date
      of termination, after which the Option shall lapse, provided that in no
      event may any Option be exercised after the expiration of the term of the
      Option.

              

      

      

      
        	
                5:09

              	
                The
      granting of an Option pursuant to the Plan shall not constitute or be
      evidence of any agreement or understanding, express or implied, on the
      part of the Corporation to continue the Option holder as a director for
      any specified period.

              

      

      

      
        	
                 
      

              	
                ARTICLE
      6:00

              

      

      

      
        	
                 
      

              	
                Methods
      of Exercise of Options

              

      

      

      
        	
                6:01

              	
                An
      Option holder (or other person or persons, if any, entitled to exercise an
      Option hereunder) desiring to exercise an Option granted pursuant to the
      Plan as to all or part of the shares of Common Stock covered by the Option
      shall (i) notify the Corporation in writing at is principal office at 701
      East Joppa Road, Towson, Maryland  21286, to that effect,
      specifying the number of shares of Common Stock to be purchased and the
      method of payment therefor, and (ii) make payment or provision for payment
      for the shares of Common Stock so purchased in accordance with this
      Article 6:00.  Such written notice may be given by means of a
      facsimile transmission.  If a facsimile transmission is used,
      the Option holder should mail the original executed copy of the written
      notice to the Corporation promptly
thereafter.

              

      

      

      
        	
                6:02

              	
                Payment
      or provision for payment shall be made as
  follows:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                The
      Option holder shall deliver to the Corporation at the address set forth in
      Section 6:01 United States currency in an amount equal to the aggregate
      purchase price of the shares of Common Stock as to which such exercise
      relates; or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      Option holder shall tender to the Corporation shares of Common Stock
      already owned by the Option holder that, together with any cash tendered
      therewith, have an aggregate fair market value (determined based on the
      Fair Market Value of a share of Common Stock on the date the notice set
      forth in Section 6:01 is received by the Corporation) equal to the
      aggregate purchase price of the shares of Common Stock as to which such
      exercise relates; or

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (c)

              	
                The
      Option holder shall deliver to the Corporation an exercise notice together
      with irrevocable instructions to a broker to deliver promptly to the
      Corporation the amount of sale or loan proceeds necessary to pay the
      aggregate purchase price of the shares of Common Stock as to which such
      exercise relates and to sell the shares of Common Stock to be issued upon
      exercise of the Option and deliver the cash proceeds less commissions and
      brokerage fees to the Option holder or to deliver the remaining shares of
      Common Stock to the Option holder.

              

      

      

      Notwithstanding
the foregoing provisions, the Board of Directors may limit the methods in which
an Option may be exercised by any person and, in processing any purported
exercise of an Option granted pursuant to the Plan, may refuse to recognize the
method of exercise selected by the Option holder (other than the method of
exercise set forth in Section 6:02(a)) if, in the opinion of counsel to the
Corporation, (i) the Option holder is or within the six months preceding such
exercise was subject to reporting under Section 16(a) of the Exchange Act and
(ii) there is a substantial likelihood that the method of exercise selected by
the Option holder would subject the Option holder to a substantial risk of
liability under Section 16 of the Exchange Act.

      

      
        	
                6:03

              	
                In
      addition to the alternative methods of exercise set forth in Section 6:02,
      the Option holder shall be entitled, at or prior to the time the written
      notice provided for in Section 6:01 is delivered to the Corporation, to
      elect to have the Corporation withhold from the shares of Common Stock to
      be delivered upon exercise of the Option that number of shares of Common
      Stock (determined based on the Fair Market Value of a share of Common
      Stock on the date the notice set forth in Section 6:01 is received by the
      Corporation) necessary to satisfy any withholding taxes attributable to
      the exercise of the Option.  Alternatively the holder may elect
      to deliver previously owned shares of Common Stock upon exercise of the
      Stock Option to satisfy any withholding taxes attributable to the exercise
      of the Stock Option.  The maximum amount that an Option holder
      may elect to have withheld from the shares of Common Stock otherwise
      deliverable upon exercise or the maximum number of previously owned shares
      an Option holder may deliver shall be equal to his or her federal and
      state withholding.  Notwithstanding the foregoing provisions,
      the Board of Directors may include in the Option Agreement relating to any
      such Option provisions limiting or eliminating the Option holder’s ability
      to pay his or her withholding tax obligation with shares of Common Stock
      or, if no such provisions are included in the Option Agreement but in the
      opinion of the Board of Directors such withholding would have an adverse
      tax or accounting effect to the Corporation, at or prior to exercise of
      the Option, the Board of Directors may so limit or eliminate the Option
      holder’s ability to pay withholding tax obligations with shares of Common
      Stock.  Notwithstanding the foregoing provisions, a holder of an
      Option may not elect any of the methods of satisfying his or her
      withholding tax obligation in respect of any exercise if, in the opinion
      of counsel to the Corporation, (i) the holder of the Stock Option is or
      within the six months preceding such exercise was subject to reporting
      under Section 16(a) of the Exchange Act and (ii) there is a substantial
      likelihood that the election or timing of the election would subject the
      holder to a substantial risk of liability under Section 16 of the Exchange
      Act.

              

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      
        	
                6:04

              	
                An
      Option holder at any time may elect in writing to abandon an Option in
      respect of all or part of the number of shares of Common Stock as to which
      the Option shall not have been
exercised.

              

      

      

      
        	
                6:05

              	
                An
      Option holder shall have none of the rights of a stockholder of the
      Corporation until the shares of Common Stock covered by the Option are
      issued upon exercise of the Option.

              

      

      

      
        	
                 
      

              	
                ARTICLE
      7:00

              

      

      

      
        	
                 
      

              	
                Limited
      Stock Appreciation Rights

              

      

      

      
        	
                7:01

              	
                Option
      holders shall have Limited Stock Appreciation Rights entitling Option
      holders to receive, in connection with a Change in Control (as defined in
      Section 7:02), a cash payment in cancellation of all of their Options that
      are outstanding on the date the Change in Control occurs (whether or not
      such Options are then presently exercisable if they have been held for a
      period of at least six months from the date of acquisition to the date of
      cash settlement), which payment shall be equal to the number of shares
      covered by the cancelled Options multiplied by the excess over the
      exercise price of the Options of the higher of (i) the Fair Market Value
      of a share of Common Stock on the date of the Change in Control or (ii)
      the highest per share price paid for the shares of Common Stock in
      connection with the Change in Control (with the value of any noncash
      consideration paid in connection with the Change in Control to be
      determined by the  Board of Directors in its sole and absolute
      discretion).  For purposes of this Section 7:01 as well as the
      other provisions of this Plan, once an Option or portion of an Option has
      terminated, lapsed or expired, or has been abandoned, in accordance with
      the provisions of the Plan, the Option (or the portion of the Option) that
      has terminated, lapsed or expired, or has been abandoned, shall cease to
      be outstanding, Limited Stock Appreciation Rights shall not be exercisable
      at the discretion of the holder but shall automatically be exercised upon
      a Change in Control.

              

      

      

      
        	
                7:02

              	
                For
      purposes of Section 7:01, a “Change in Control” shall mean a change in
      control of the Corporation of a nature that would be required to be
      reported in response to Item 6(e) of Schedule 14A of Regulation 14A
      promulgated under the Exchange Act, whether or not the Corporation is in
      fact required to comply therewith, provided that, without limitation, such
      a Change in Control shall be deemed to have occurred if (A) any “person”
      (as such term is used in Sections 13(d) and 14(d) of the Exchange Act),
      other than a trustee or other fiduciary holding securities under an
      employee benefit plan of the Corporation or any of its subsidiaries, or a
      corporation owned, directly or indirectly, by the stockholders of the
      Corporation, is or becomes the “beneficial owner” (as defined in Rule
      13d-3 under the Exchange Act), directly or indirectly, of securities of
      the Corporation representing 20% or more of the combined voting power of
      the Corporation’s then outstanding securities; or (B) during any period of
      two consecutive years, individuals who at the beginning of such period
      constitute the Board of Directors and any new director (other than a
      director designated by a person who has entered into an agreement with the
      Corporation to effect a transaction described in clauses (A) or (C) of
      this Section 7:02) whose election by the Board of Directors or nomination
      for election by the Corporation’s stockholders was approved by a vote of
      at least two-thirds of the directors then still in office who either were
      directors at the beginning of the period or whose election or nomination
      for election was previously so approved, cease for any reason to
      constitute a majority thereof; or (C) the stockholders of the Corporation
      approve a merger, share exchange or consolidation of the Corporation with
      any other corporation, other than a merger, share exchange or
      consolidation which would result in the voting securities of the
      Corporation outstanding immediately prior thereto continuing to represent
      (either by remaining outstanding or by being converted into voting
      securities of the surviving entity) at least 60% of the combined voting
      power of the voting securities of the Corporation or such surviving entity
      outstanding immediately after such merger, share exchange or
      consolidation, or the stockholders of the Corporation approve a plan of
      complete liquidation of the Corporation or an agreement for the sale or
      disposition by the Corporation of all or substantially all the
      Corporation’s assets.

              

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                ARTICLE
      8:00

              

      

      

      
        	
                 
      

              	
                Amendments
      and Discontinuance of the Plan

              

      

      

      
        	
                8:01

              	
                The
      Board of Directors shall have the right at any time and from time to time
      to amend, modify, or discontinue the Plan provided that, except as
      provided in Section 4:03, no such amendment, modification, or
      discontinuance of the Plan shall (i) revoke or alter the terms of any
      valid Option or Limited Stock Appreciation right previously granted
      pursuant to the Plan, (ii) increase the number of shares of Common Stock
      to be reserved for issuance and sale pursuant to Options or Stock
      Appreciation Rights granted pursuant to the Plan, (iii) decrease the price
      determined pursuant to the provisions of Section 5:02 or increase the
      amount of cash that a holder of a Limited Stock Appreciation Right is
      entitled to receive upon exercise of a Limited Stock Appreciation Right,
      (iv) change the class of individuals to whom Options or Limited Stock
      Appreciation Rights may be granted pursuant to the Plan, or (v) provide
      for Options or Limited Stock Appreciation Rights exercisable more than 10
      years after the date granted.  Notwithstanding the foregoing,
      the provisions of the Plan that determine the amount, price or timing of
      benefits or the grant of exercise of Options as Limited Stock Appreciation
      Rights shall not be amended more than once every six months, unless the
      amendment would be consistent with the provisions of Rule 16b-3(c)(2)(ii)
      promulgated under the Exchange Act (or any successor provision
      thereto).

              

      

      

      
        	
                 
      

              	
                ARTICLE
      9:00

              

      

      

      
        	
                 
      

              	
                Plan
      Subject to Governmental Laws and
Regulations

              

      

      

      
        	
                9:01

              	
                The
      Plan and the grant and exercise of Options and Limited Stock Appreciation
      Rights pursuant to the Plan shall be subject to all applicable
      governmental laws and regulations.  Notwithstanding any other
      provision of the Plan to the contrary, the Board of Directors may in its
      sole and absolute discretion make such changes in the Plan as may be
      required to conform the Plan to such laws and
  regulations.

              

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                ARTICLE
      10:00

              

      

      

      
        	
                 
      

              	
                Duration
      of the Plan

              

      

      

      

      
        	
                10:01

              	
                No
      Option or Limited Stock Appreciation Right shall be granted pursuant to
      the Plan after the close of business on April 30,
  2005.

              

      

      
 

      8exhibit10_1.htm

    Exhibit 10.1

      SECURITIES PURCHASE
AGREEMENT

      

      THIS SECURITIES PURCHASE AGREEMENT
(“Agreement”) is made as March __, 2010 by and among PROVECTUS PHARMACEUTICALS,
INC., a Nevada corporation (the “Company”), and the Investors set forth on the
signature pages affixed hereto (each an “Investor” and collectively the
“Investors”).

      

      R
E C I T A L S

      

      A.           The
Company and the Investors are executing and delivering this Agreement in
reliance upon the exemption from securities registration afforded by the
provisions of Regulation D (“Regulation D”), as promulgated by the U.S.
Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933,
as amended;

      

      B.           The
Investors wish to purchase from the Company, and the Company wishes to sell and
issue to the Investors, upon the terms and conditions stated in this Agreement,
(i) an aggregate of up to $10,000,000 of units (the “Units”), each Unit
consisting of one share of the Company’s 8% Convertible Preferred Stock, par
value $.001 per share (the “Preferred Stock”), and (ii) a warrant to purchase
one-half a share of the Company’s common stock, par value $.001 per share (the
“Common Stock”) (subject to adjustment) at an exercise price of $1.00 per whole
share (subject to adjustment) in the form attached hereto as Exhibit A (the
“Warrants”); and

      

      C.           The
purchase price per Unit is $0.75;

      

      D.           Contemporaneous
with the sale of the Preferred Stock and Warrants, the parties hereto will
execute and deliver a Registration Rights Agreement, in the form attached hereto
as Exhibit B
(the “Registration Rights Agreement”), pursuant to which the Company will agree
to provide certain registration rights under the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder, and applicable
state securities laws; and

      

      E.           The
Company has engaged Maxim Group LLC as its exclusive placement agent (the
“Placement Agent”) for the offering of the Preferred Stock and the Warrants on a
“best efforts” basis.

      

      NOW, THEREFORE, in consideration of the
mutual promises made in this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the
parties to this Agreement agree as follows:

      

      1. Definitions. In
addition to those terms defined above and elsewhere in this Agreement, for the
purposes of this Agreement, the following terms shall have the meanings set
forth below:

       

      “Affiliate” means,
with respect to any Person, any other Person which directly or indirectly
through one or more intermediaries Controls, is controlled by, or is under
common control with, such Person.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

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

      

      “Certificate of
Designation” means the Certificate of Designation in the form attached to
this Agreement as Exhibit
C.

      

      “Certificate of
Incorporation” means the Restated Articles of Incorporation of the
Company as filed with the Nevada Secretary of State on June 27, 2003, as amended
by the Certificate of Amendment filed with the Nevada Secretary of State on
January 8, 2010, as they may be amended from time to time.

      

      “Company’s Knowledge”
means the actual knowledge of the executive officers (as defined in Rule 405
under the 1933 Act) of the Company, after due inquiry.

      

      “Confidential
Information” means trade secrets, confidential information and know-how
(including but not limited to ideas, formulae, compositions, processes,
procedures and techniques, research and development information, computer
program code, performance specifications, support documentation, drawings,
specifications, designs, business and marketing plans, and customer and supplier
lists and related information).

      

      “Control” (including
the terms “controlling”, “controlled by” or “under common control with”) means
the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

      

      “Conversion Shares”
means the shares of Common Stock issuable upon conversion of the Preferred Stock
as set forth in the Certificate of Designation.

      

      “Dividend Shares”
means the shares of Common Stock that may be distributed as a dividend on the
Shares in lieu of a cash dividend as set forth in the Certificate of
Designation.

      

      “Intellectual
Property” means all of the following: (i) patents, patent applications,
patent disclosures and inventions (whether or not patentable and whether or not
reduced to practice); (ii) trademarks, service marks, trade dress, trade names,
corporate names, logos, slogans and Internet domain names, together with all
goodwill associated with each of the foregoing; (iii) copyrights and
copyrightable works; (iv) registrations, applications and renewals for any of
the foregoing; and (v) proprietary computer software (including but not limited
to data, data bases and documentation).

      

      “Material Adverse
Effect” means a material adverse effect on (i) the assets, liabilities,
results of operations, condition (financial or otherwise), business, or
prospects of the Company and its Subsidiaries taken as a whole, or (ii) the
ability of the Company to perform its obligations under the Transaction
Documents.

      

      “Person” means an
individual, corporation, partnership, limited liability company, trust, business
trust, association, joint stock company, joint venture, sole proprietorship,
unincorporated organization, governmental authority or any other form of entity
not specifically listed herein.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Private Placement
Memorandum” means the Confidential Private Placement Memorandum of the
Company dated January 20, 2010.

      

      “Purchase Price” means
the aggregate amount set forth opposite the Investors’ names on the signature
pages attached hereto, which shall represent the amount which is $0.75
multiplied by the aggregate number of Units set forth opposite the Investors’
names on the signature pages attached to this Agreement.

      

      “Registration
Statement” has the meaning set forth in the Registration Rights
Agreement.

      

      “SEC Filings” has the
meaning set forth in Section 4.6.

      

      “Securities” means the
Shares, the Conversion Shares, the Dividend Shares, the Warrants and the Warrant
Shares.

      

      “Shares” means the
shares of Preferred Stock being purchased by the Investors hereunder having the
rights, privileges, preferences and restrictions set forth in the Certificate of
Designation.

      

      “Subsidiary” of any
Person means another Person, an amount of the voting securities, other voting
ownership or voting partnership interests of which is sufficient to elect at
least a majority of its Board of Directors or other governing body (or, if there
are no such voting interests, 50% or more of the equity interests of which) is
owned directly or indirectly by such first Person.

      

      “Transaction
Documents” means this Agreement, the Warrants and the Registration Rights
Agreement.

      

      “Warrant Shares” means
the shares of Common Stock issuable upon the exercise of the
Warrants.

      

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

      

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

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      2. Purchase and Sale of the
Shares and Warrants. Subject to the terms and conditions of this
Agreement, on the Closing Date, each of the Investors shall severally, and not
jointly, purchase, and the Company shall sell and issue to the Investors, the
Shares and Warrants in the respective amounts set forth opposite the Investors’
names on the signature pages attached to this Agreement in exchange for the
Purchase Price as specified in Section 3 below.

       

      3. Closing. Upon
confirmation that the other conditions to closing specified herein have been
satisfied or duly waived by the Investors, the Company shall deliver to
Lowenstein Sandler PC, in trust, a certificate or certificates, registered in
such name or names as the Investors may designate, representing the Shares and
Warrants, with instructions that such certificates are to be held for release to
the Investors only upon release of by the American Stock Transfer and Trust
Company (the “Escrow Agent”) of the Purchase Price in full to the Company. Upon
such receipt by Lowenstein Sandler PC of the certificates, each Investor shall
promptly, but no more than one Business Day thereafter, cause to be sent a check
or wire transfer in same day funds payable to “Provectus Pharmaceuticals, Inc.
Escrow Account” in an amount representing such Investor’s pro rata portion of
the Purchase Price as set forth on the signature pages to this Agreement. On the
date, (the “Closing Date”) the Company receives the Purchase Price from the
Escrow Agent, the certificates evidencing the Shares and Warrants shall be
released to the Investors (the “Closing”); provided, however, that the Closing
shall occur on or before March 11, 2010. The Closing of the purchase and sale of
the Shares and Warrants shall take place at the offices of Lowenstein Sandler
PC, 1251 Avenue of the Americas, 18th Floor, New York, New York 10020, or at
such other location and on such other date as the Company and the Investors
shall mutually agree.

       

      4. Representations and
Warranties of the Company. The Company hereby represents and warrants to
the Investors and the Placement Agent that, except as set forth in the schedules
delivered herewith (collectively, the “Disclosure Schedules”) and except as set
forth in the Private Placement Memorandum (including the Company’s Annual Report
on 10-K for the Year Ended December 31, 2008, the Company’s Quarterly Report on
10-Q for the Quarter Ended March 31, 2009, the Company’s Quarterly Report on
10-Q for the Quarter Ended June 30, 2009, the Company’s Quarterly Report on 10-Q
for the Quarter Ended September 30, 2009, the Proxy Statement to Stockholders
for the Annual Meeting of Stockholders dated April 30, 2009, and the Proxy
Statement to Stockholders for the Special Meeting of Stockholders dated December
1, 2009, which are delivered as a part of and incorporated into the Private
Placement Memorandum):

       

      4.1 Organization, Good Standing
and Qualification. Each of the Company and its Subsidiaries is a
corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation and has all requisite corporate power
and authority to carry on its business as now conducted and to own its
properties. Each of the Company and its Subsidiaries is duly qualified to do
business as a foreign corporation and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of property
makes such qualification or leasing necessary unless the failure to so qualify
has not had and could not reasonably be expected to have a Material Adverse
Effect.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      4.2  Authorization.
The Company has full power and authority and has taken all requisite action on
the part of the Company, its officers, directors and stockholders necessary for
(i) the authorization, execution and delivery of the Transaction Documents, (ii)
the authorization of the performance of all obligations of the Company hereunder
or thereunder, and (iii) the authorization, issuance (or reservation for
issuance) and delivery of the Securities. The Transaction Documents constitute
the legal, valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights generally and to
general equitable principles.

       

      4.3 Capitalization. Schedule 4.3 sets
forth (a) as of the date hereof, the authorized capital stock of the Company;
(b) as of the date hereof, the number of shares of capital stock issued and
outstanding; (c) as of September 30, 2009, the number of shares of capital stock
issuable pursuant to the Company’s stock plans; and (d) as of September 30,
2009, the number of shares of capital stock issuable and reserved for issuance
pursuant to securities (other than the Shares, Conversion Shares, Dividend
Shares, Warrants and Warrant Shares) exercisable for, or convertible into or
exchangeable for any shares of capital stock of the Company. All of the issued
and outstanding shares of the Company’s capital stock have been duly authorized
and validly issued and are fully paid, nonassessable and free of pre-emptive
rights and were issued in compliance with applicable state and federal
securities law and any rights of third parties. All of the issued and
outstanding shares of capital stock of each Subsidiary have been duly authorized
and validly issued and are fully paid, nonassessable and free of pre-emptive
rights, were issued in compliance with applicable state and federal securities
law and any rights of third parties and are owned by the Company, beneficially
and of record, subject to no lien, encumbrance or other adverse claim. Except as
described on Schedule
4.3, no Person is entitled to pre-emptive or similar statutory or
contractual rights with respect to any securities of the Company. Except as
described on Schedule
4.3, there are no outstanding warrants, options, convertible securities
or other rights, agreements or arrangements of any character under which the
Company or any of its Subsidiaries is or may be obligated to issue any equity
securities of any kind and except as contemplated by this Agreement, neither the
Company nor any of its Subsidiaries is currently in negotiations for the
issuance of any equity securities of any kind. Except as described on Schedule 4.3 and
except for the Registration Rights Agreement, there are no voting agreements,
buy-sell agreements, or option or right of first purchase agreements among the
Company and any of the security holders of the Company relating to the
securities of the Company held by them. Except as described on Schedule 4.3 and
except as provided in the Registration Rights Agreement, no Person has the right
to require the Company to register any securities of the Company under the 1933
Act, whether on a demand basis or in connection with the registration of
securities of the Company for its own account or for the account of any other
Person.

       

      Except as described on Schedule 4.3, the
issuance and sale of the Securities hereunder will not obligate the Company to
issue shares of Common Stock or other securities to any other Person (other than
the Investors) and will not result in the adjustment of the exercise,
conversion, exchange or reset price of any outstanding security.

      

      Except as described on Schedule 4.3, the
Company does not have outstanding stockholder purchase rights or “poison pill”
or any similar arrangement in effect giving any Person the right to purchase any
equity interest in the Company upon the occurrence of certain
events.

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      4.4 Valid Issuance. Upon
filing the Certificate of Designation, the Shares will have been duly and
validly authorized and, when issued and paid for pursuant to this Agreement,
will be validly issued, fully paid and nonassessable, and shall be free and
clear of all encumbrances and restrictions (other than those created by the
Investors), except for restrictions on transfer set forth in the Transaction
Documents or imposed by applicable securities laws. The Warrants have been duly
and validly authorized. Upon the conversion of the Shares, distribution of the
Dividend Shares by the Company, and due exercise of the Warrants, the Conversion
Shares, Dividend Shares, and Warrant Shares, respectively, will be validly
issued, fully paid and non-assessable free and clear of all encumbrances and
restrictions, except for restrictions on transfer set forth in the Transaction
Documents or imposed by applicable securities laws and except for those created
by the Investors. The Company has reserved a sufficient number of shares of
Common Stock for issuance of the Conversion Shares upon conversion of the
Shares, for the issuance of the Dividend Shares upon distribution of a dividend
on the Shares by the Company, and for issuance of the Warrant Shares upon the
exercise of the Warrants, free and clear of all encumbrances and restrictions,
except for restrictions on transfer set forth in the Transaction Documents or
imposed by applicable securities laws and except for those created by the
Investors.

       

      4.5 Consents. Except for
the filing of the Certificate of Designation, which will have been filed with
the Nevada Secretary of State on or before the Closing, the execution, delivery
and performance by the Company of the Transaction Documents and the offer,
issuance and sale of the Securities require no consent of, action by or in
respect of, or filing with, any Person, governmental body, agency, or official
other than filings that have been made pursuant to applicable state securities
laws and post-sale filings pursuant to applicable state and federal securities
laws which the Company undertakes to file within the applicable time periods.
Subject to the accuracy of the representations and warranties of each Investor
set forth in Section 5 hereof, the Company has taken all action necessary to
exempt (i) the issuance and sale of the Securities, (ii) the issuance of the
Conversion Shares upon conversion of the Shares, (iii) the issuance of the
Dividend Shares upon distribution of a dividend on the Shares by the Company,
(iv) the issuance of the Warrant Shares upon due exercise of the Warrants, and
(v) the other transactions contemplated by the Transaction Documents from the
provisions of any stockholder rights plan or other “poison pill” arrangement,
any anti-takeover, business combination or control share law or statute binding
on the Company or to which the Company or any of its assets and properties may
be subject and any provision of the Company’s Certificate of Incorporation or
Bylaws that is or could reasonably be expected to become applicable to the
Investors as a result of the transactions contemplated hereby, including without
limitation, the issuance of the Securities and the ownership, disposition or
voting of the Securities by the Investors or the exercise of any right granted
to the Investors pursuant to this Agreement or the other Transaction
Documents.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      4.6 Delivery of SEC Filings;
Business. The Company has made available to the Investors through the
EDGAR system, true and complete copies of the Company’s most recent Annual
Report on Form 10-K for the fiscal year ended December 31, 2008 (the “10-K”),
and all other reports filed by the Company pursuant to the 1934 Act since the
filing of the 10-K and prior to the date hereof (collectively, the “SEC
Filings”). The SEC Filings are the only filings required of the Company pursuant
to the 1934 Act for such period. The Company and its Subsidiaries are engaged in
all material respects only in the business described in the SEC Filings and the
SEC Filings contain a complete and accurate description in all material respects
of the business of the Company and its Subsidiaries, taken as a
whole.

       

      4.7 Use of Proceeds. The
net proceeds of the sale of the Shares and the Warrants hereunder shall be used
by the Company for working capital, FDA trials, securing licensing partnerships,
and general corporate purposes.

       

      4.8 No Material Adverse
Change. Since December 31, 2008, except as described on Schedule 4.8, there
has not been:

       

      (a) any
change in the consolidated assets, liabilities, financial condition or operating
results of the Company from that reflected in the financial statements included
in the Company’s SEC Filings, except for changes in the ordinary course of
business which have not had and could not reasonably be expected to have a
Material Adverse Effect, individually or in the aggregate;

       

      (b) any
declaration or payment of any dividend, or any authorization or payment of any
distribution, on any of the capital stock of the Company, or any redemption or
repurchase of any securities of the Company;

       

      (c) any
material damage, destruction or loss, whether or not covered by insurance to any
assets or properties of the Company or its Subsidiaries;

       

      (d) any
waiver, not in the ordinary course of business, by the Company or any Subsidiary
of a material right or of a material debt owed to it;

       

      (e) any
satisfaction or discharge of any lien, claim or encumbrance or payment of any
obligation by the Company or a Subsidiary, except in the ordinary course of
business and which is not material to the assets, properties, financial
condition, operating results or business of the Company and its Subsidiaries
taken as a whole (as such business is presently conducted and as it is proposed
to be conducted);

       

      (f) any
change or amendment to the Company’s Certificate of Incorporation (other than
the Certificate of Amendment filed with the Nevada Secretary of State on January
8, 2010) or Bylaws, or material change to any material contract or arrangement
by which the Company or any Subsidiary is bound or to which any of their
respective assets or properties is subject;

       

      (g) any
material labor difficulties or labor union organizing activities with respect to
employees of the Company or any Subsidiary;

       

      (h) any
material transaction entered into by the Company or a Subsidiary other than in
the ordinary course of business;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (i) the loss
of the services of any key employee, or material change in the composition or
duties of the senior management of the Company or any Subsidiary;

       

      (j) the loss
or threatened loss of any customer which has had or could reasonably be expected
to have a Material Adverse Effect; or

       

      (k) any other
event or condition of any character that has had or could reasonably be expected
to have a Material Adverse Effect.

       

      4.9 SEC
Filings.

       

      (a) At the
time of filing thereof, the SEC Filings complied as to form in all material
respects with the requirements of the 1934 Act and did 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 the light of the circumstances
under which they were made, not misleading.

       

      (b) Each
registration statement and any amendment thereto filed by the Company since
August 1, 2007 pursuant to the 1933 Act and the rules and regulations
thereunder, as of the date such statement or amendment became effective,
complied as to form in all material respects with the 1933 Act and did not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements
made therein not misleading; and each prospectus filed pursuant to Rule 424(b)
under the 1933 Act, as of its issue date and as of the closing of any sale of
securities pursuant thereto did not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading.

       

      4.10 No Conflict, Breach,
Violation or Default. The execution, delivery and performance of the
Transaction Documents by the Company and the issuance and sale of the Securities
will not conflict with or result in a breach or violation of any of the terms
and provisions of, or constitute a default under (i) the Company’s Certificate
of Incorporation, including the Certificate of Designation, or the Company’s
Bylaws, both as in effect on the date hereof (true and complete copies of which
have been made available to the Investors through the EDGAR system), or (ii)(a)
any statute, rule, regulation or order of any governmental agency or body or any
court, domestic or foreign, having jurisdiction over the Company, any Subsidiary
or any of their respective assets or properties, or (b) any agreement or
instrument to which the Company or any Subsidiary is a party or by which the
Company or a Subsidiary is bound or to which any of their respective assets or
properties is subject.

       

      4.11 Tax Matters. The
Company and each Subsidiary have timely prepared and filed all tax returns
required to have been filed by the Company or such Subsidiary with all
appropriate governmental agencies and timely paid all taxes shown thereon or
otherwise owed by it. The charges, accruals and reserves on the books of the
Company in respect of taxes for all fiscal periods are adequate in all material
respects, and there are no material unpaid assessments against the Company or
any Subsidiary nor, to the Company’s Knowledge, any basis for the assessment of
any additional taxes, penalties or interest for any fiscal period or audits by
any federal, state or local taxing authority except for any assessment which is
not material to the Company and its Subsidiaries, taken as a whole. All taxes
and other assessments and levies that the Company or any Subsidiary is required
to withhold or to collect for payment have been duly withheld and collected and
paid to the proper governmental entity or third party when due. There are no tax
liens or claims pending or, to the Company’s Knowledge, threatened against the
Company or any Subsidiary or any of their respective assets or property. There
are no outstanding tax sharing agreements or other such arrangements between the
Company and any Subsidiary or other corporation or entity.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      4.12 Title to Properties.
The Company and each Subsidiary have good and marketable title to all real
properties and all other properties and assets owned by it, in each case free
from liens, encumbrances and defects that would materially affect the value
thereof or materially interfere with the use made or currently planned to be
made thereof by them; and the Company and each Subsidiary hold any leased real
or personal property under valid and enforceable leases with no exceptions that
would materially interfere with the use made or currently planned to be made
thereof by them.

       

      4.13 Certificates, Authorities
and Permits. The Company and each Subsidiary possess adequate
certificates, authorities or permits issued by appropriate governmental agencies
or bodies necessary to conduct the business now operated by it, and neither the
Company nor any Subsidiary has received any notice of proceedings relating to
the revocation or modification of any such certificate, authority or permit
that, if determined adversely to the Company or such Subsidiary, could
reasonably be expected to have a Material Adverse Effect, individually or in the
aggregate.

       

      4.14 Labor
Matters.

       

      (a) The
Company is not a party to or bound by any collective bargaining agreements or
other agreements with labor organizations. The Company has not violated in any
material respect any laws, regulations, orders or contract terms, affecting the
collective bargaining rights of employees, labor organizations or any laws,
regulations or orders affecting employment discrimination, equal opportunity
employment, or employees’ health, safety, welfare, wages and hours.

       

      (b) (i) There
are no labor disputes existing, or to the Company’s Knowledge, threatened,
involving strikes, slow-downs, work stoppages, job actions, disputes, lockouts
or any other disruptions of or by the Company’s employees, (ii) there are no
unfair labor practices or petitions for election pending or, to the Company’s
Knowledge, threatened before the National Labor Relations Board or any other
federal, state or local labor commission relating to the Company’s employees,
(iii) no demand for recognition or certification heretofore made by any labor
organization or group of employees is pending with respect to the Company and
(iv) to the Company’s Knowledge, the Company enjoys good labor and employee
relations with its employees and labor organizations.

       

      (c) The
Company is, and at all times has been, in compliance in all material respects
with all applicable laws respecting employment (including laws relating to
classification of employees and independent contractors) and employment
practices, terms and conditions of employment, wages and hours, and immigration
and naturalization. There are no claims pending against the Company before the
Equal Employment Opportunity Commission or any other administrative body or in
any court asserting any violation of Title VII of the Civil Rights Act of 1964,
the Age Discrimination Act of 1967, 42 U.S.C. §§ 1981 or 1983 or any other
federal, state or local Law, statute or ordinance barring discrimination in
employment.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (d) Except as
described on Schedule
4.14, the Company is not a party to, or bound by, any employment or other
contract or agreement that contains any severance, termination pay or change of
control liability or obligation, including, without limitation, any “excess
parachute payment,” as defined in Section 280G(b) of the Internal Revenue
Code.

       

      (e) Each of
the Company’s employees is a Person who is either a United States citizen or a
permanent resident entitled to work in the United States. To the Company’s
Knowledge, the Company has no liability for the improper classification by the
Company of such employees as independent contractors or leased employees prior
to the Closing.

       

      4.15 Intellectual
Property.

       

      (a) All
Intellectual Property of the Company and its Subsidiaries is currently in
compliance with all legal requirements (including timely filings, proofs and
payments of fees) and is valid and enforceable. No Intellectual Property of the
Company or its Subsidiaries which is necessary for the conduct of Company’s and
each of its Subsidiaries’ respective businesses as currently conducted or as
currently proposed to be conducted has been or is now involved in any
cancellation, dispute or litigation, and, to the Company’s Knowledge, no such
action is threatened. To the Company’s Knowledge, no patent of the Company or
its Subsidiaries has been or is now involved in any interference, reissue,
re-examination or opposition proceeding.

       

      (b) All of
the licenses and sublicenses and consent, royalty or other agreements concerning
Intellectual Property which are necessary for the conduct of the Company’s and
each of its Subsidiaries’ respective businesses as currently conducted or as
currently proposed to be conducted to which the Company or any Subsidiary is a
party or by which any of their assets are bound (other than  generally
commercially available, non-custom, off-the-shelf software application programs
having a retail acquisition price of less than $10,000 per license)
(collectively, “License Agreements”) are valid and binding obligations of the
Company or its Subsidiaries that are parties thereto and, to the Company’s
Knowledge, the other parties thereto, enforceable in accordance with their
terms, except to the extent that enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
other similar laws affecting the enforcement of creditors’ rights generally, and
to the Company’s Knowledge, there exists no event or condition which will result
in a material violation or breach of or constitute (with or without due notice
or lapse of time or both) a default by the Company or any of its Subsidiaries
under any such License Agreement.

       

      (c) The
Company and its Subsidiaries own or have the valid right to use all of the
Intellectual Property that is necessary for the conduct of the Company’s and
each of its Subsidiaries’ respective businesses as currently conducted or as
currently proposed to be conducted and for the ownership, maintenance and
operation of the Company’s and its Subsidiaries’ properties and assets, free and
clear of all liens, encumbrances, adverse claims or obligations to license all
such owned Intellectual Property and Confidential Information, other than
licenses entered into in the ordinary course of the Company’s and its
Subsidiaries’ businesses. To the Company’s Knowledge, the Company and its
Subsidiaries have a valid and enforceable right to use all third party
Intellectual Property and Confidential Information used or held for use in the
respective businesses of the Company and its Subsidiaries.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (d) To the
Company’s Knowledge, the conduct of the Company’s and its Subsidiaries’
businesses as currently conducted does not infringe or otherwise impair or
conflict with (collectively, “Infringe”) any Intellectual Property rights of any
third party or any confidentiality obligation owed to a third party, and, to the
Company’s Knowledge, the Intellectual Property and Confidential Information of
the Company and its Subsidiaries which are necessary for the conduct of
Company’s and each of its Subsidiaries’ respective businesses as currently
conducted or as currently proposed to be conducted are not being Infringed by
any third party. There is no litigation or order pending or outstanding or, to
the Company’s Knowledge, threatened or imminent, that seeks to limit or
challenge or that concerns the ownership, use, validity or enforceability of any
Intellectual Property or Confidential Information of the Company and its
Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual
Property or Confidential Information owned by a third party, and, to the
Company’s Knowledge, there is no valid basis for the same.

       

      (e) The
consummation of the transactions contemplated hereby and by the other
Transaction Documents will not result in the alteration, loss, impairment of or
restriction on the Company’s or any of its Subsidiaries’ ownership or right to
use any of the Intellectual Property or Confidential Information which is
necessary for the conduct of Company’s and each of its Subsidiaries’ respective
businesses as currently conducted or as currently proposed to be
conducted.

       

      (f) The
Company and its Subsidiaries have taken reasonable steps to protect the
Company’s and its Subsidiaries’ rights in their Intellectual Property and
Confidential Information. Each employee, consultant and contractor who has had
access to Confidential Information which is necessary for the conduct of
Company’s and each of its Subsidiaries’ respective businesses as currently
conducted or as currently proposed to be conducted has executed an agreement to
maintain the confidentiality of such Confidential Information and has executed
appropriate agreements that are substantially consistent with the Company’s
standard forms thereof. Except under confidentiality obligations, there has been
no material disclosure of any of the Company’s or its Subsidiaries’ Confidential
Information to any third party.

       

      4.16 Environmental
Matters. Neither the Company nor any Subsidiary is in violation of any
statute, rule, regulation, decision or order of any governmental agency or body
or any court, domestic or foreign, relating to the use, disposal or release of
hazardous or toxic substances or relating to the protection or restoration of
the environment or human exposure to hazardous or toxic substances
(collectively, “Environmental Laws”), owns or operates any real property
contaminated with any substance that is subject to any Environmental Laws, is
liable for any off-site disposal or contamination pursuant to any Environmental
Laws, or is subject to any claim relating to any Environmental Laws, which
violation, contamination, liability or claim has had or could reasonably be
expected to have a Material Adverse Effect, individually or in the aggregate;
and there is no pending or, to the Company’s Knowledge, threatened investigation
that might lead to such a claim.

       

      4.17 Litigation. There are
no pending actions, suits or proceedings against or affecting the Company, its
Subsidiaries or any of its or their properties; and to the Company’s Knowledge,
no such actions, suits or proceedings are threatened or contemplated. Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or since
December 31, 2008 has been the subject of any action involving a claim of
violation of or liability under federal or state securities laws or a claim of
breach of fiduciary duty. There has not been, and to the Company’s Knowledge,
there is not pending or contemplated, any investigation by the SEC involving the
Company or any current or former director or officer of the Company. The SEC has
not issued any stop order or other order suspending the effectiveness of any
registration statement filed by the Company or any Subsidiary under the 1933 Act
or the 1934 Act.

       

      4.18 Financial Statements.
The financial statements included in each SEC Filing present fairly, in all
material respects, the consolidated financial position of the Company as of the
dates shown and its consolidated results of operations and cash flows for the
periods shown, and such financial statements have been prepared in conformity
with United States generally accepted accounting principles applied on a
consistent basis (“GAAP”) (except as may be disclosed therein or in the notes
thereto, and, in the case of quarterly financial statements, as permitted by
Form 10-Q under the 1934 Act) and comply as to form in all material respects
with all applicable accounting requirements and the published rules and
regulations of the SEC. Except as set forth in the financial statements of the
Company included in the SEC Filings filed prior to the date hereof or as
described on Schedule
4.18, neither the Company nor any of its Subsidiaries has incurred any
liabilities, contingent or otherwise, except those incurred in the ordinary
course of business, consistent (as to amount and nature) with past practices
since the date of such financial statements, none of which, individually or in
the aggregate, have had or could reasonably be expected to have a Material
Adverse Effect.

       

      4.19 Insurance Coverage.
The Company and each Subsidiary maintain in full force and effect insurance
coverage that is customary for comparably situated companies for the business
being conducted and properties owned or leased by the Company and each
Subsidiary, and the Company reasonably believes such insurance coverage to be
adequate against all liabilities, claims and risks against which it is customary
for comparably situated companies to insure.

       

      4.20 Brokers and Finders.
No Person will have, as a result of the transactions contemplated by the
Transaction Documents, any valid right, interest or claim against or upon the
Company, any Subsidiary or an Investor for any commission, fee or other
compensation pursuant to any agreement, arrangement or understanding entered
into by or on behalf of the Company, other than as described in Schedule
4.20.

       

      
        
          
          

        

        
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      4.21 No Directed Selling Efforts
or General Solicitation. Neither the Company nor any Person acting on its
behalf has conducted any general solicitation or general advertising (as those
terms are used in Regulation D) in connection with the offer or sale of any of
the Securities.

       

      4.22 No Integrated
Offering. Neither the Company nor any of its Affiliates, nor any Person
acting on its or their behalf has, directly or indirectly, made any offers or
sales of any Company security or solicited any offers to buy any security, under
circumstances that would adversely affect reliance by the Company on Section
4(2) for the exemption from registration for the transactions contemplated
hereby or would require registration of the Securities under the 1933
Act.

       

      4.23 Private Placement.
Assuming the accuracy of the Investment Representations (as defined in Section
6.2(a) of this Agreement), the offer and sale of the Securities to the Investors
as contemplated hereby is exempt from the registration requirements of the 1933
Act.

       

      4.24 Questionable
Payments. Neither
the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of
their respective current or former directors, officers, employees, agents or
other Persons acting on behalf of the Company or any Subsidiary, has on behalf
of the Company or any Subsidiary or in connection with their respective
businesses: (a) used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity; (b)
made any direct or indirect unlawful payments to any governmental officials or
employees from corporate funds; (c) established or maintained any unlawful or
unrecorded fund of corporate monies or other assets; (d) made any false or
fictitious entries on the books and records of the Company or any Subsidiary; or
(e) made any unlawful bribe, rebate, payoff, influence payment, kickback or
other unlawful payment of any nature.

       

      4.25 Transactions with
Affiliates. Except as disclosed on Schedule 4.26, none
of the officers or directors of the Company and, to the Company’s Knowledge,
none of the employees of the Company is presently a party to any transaction
with the Company or any Subsidiary (other than as holders of stock options
and/or warrants, and for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the Company’s Knowledge, any entity in which
any officer, director, or any such employee has a substantial interest or is an
officer, director, trustee or partner.

       

      4.26 Internal Controls.
The Company is in material compliance with the provisions of the Sarbanes-Oxley
Act of 2002 currently applicable to the Company. 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 1934 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, including the Subsidiaries, 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 1934 Act, as the case may be, is being prepared. The
Company’s certifying officers have evaluated the effectiveness of the Company’s
controls and procedures as of the end of the period covered by the most recently
filed periodic report under the 1934 Act (such date, the “Evaluation Date”). The
Company presented in its most recently filed periodic report under the 1934 Act
the conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the
Evaluation Date. Since the Evaluation Date, there have been no significant
changes in the Company’s internal controls (as such term is defined in Item 308
of Regulation S-K), to the Company’s Knowledge, in other factors that could
significantly affect the Company’s internal controls. The Company maintains and
will continue to maintain a standard system of accounting established and
administered in accordance with GAAP and the applicable requirements of the 1934
Act.

       

      4.27 Disclosures. Neither
the Company nor any Person acting on its behalf has provided the Investors or
their agents or counsel with any information that constitutes or might
constitute material, non-public information, other than the terms of the
transactions contemplated hereby. The written materials delivered to the
Investors in connection with the transactions contemplated by the Transaction
Documents do not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements contained
therein, in light of the circumstances under which they were made, not
misleading.

       

      5. Representations and
Warranties of the Investors. Each of the Investors hereby severally, and
not jointly, represents and warrants to the Company that:

       

      5.1 Organization and
Existence. Such Investor, if other than an individual, is a validly
existing corporation, limited partnership or limited liability company and has
all requisite corporate, partnership or limited liability company power and
authority to invest in the Securities pursuant to this Agreement.

       

      5.2 Authorization. The
execution, delivery and performance by such Investor of the Transaction
Documents to which such Investor is a party have been duly authorized and each
will constitute the valid and legally binding obligation of such Investor,
enforceable against such Investor in accordance with their respective terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability, relating to or affecting
creditors’ rights generally.  No consent, approval, authorization,
order, filing, registration or qualification of or with any court, government
authority or third person is required to be obtained by such Investor in
connection with the execution and delivery of the Transaction Documents to which
such Investor is a party or the performance of such Investor's obligations
hereunder or thereunder.

       

      5.3 Purchase Entirely for Own
Account. The Securities to be received by such Investor hereunder will be
acquired for such Investor’s own account and not for the account of others or as
nominee or agent, and not with a view to, or for, resale, distribution,
syndication, or fractionalization thereof, and such Investor has no present
intention of selling, granting any participation in, or otherwise distributing
the same in violation of the 1933 Act without prejudice, however, to such
Investor’s right at all times to sell or otherwise dispose of all or any part of
such Securities in compliance with applicable federal and state securities
laws. Nothing contained
herein shall be deemed a representation or warranty by such Investor to hold the
Securities for any period of time. Such Investor is not a broker-dealer
registered with the SEC under the 1934 Act or an entity engaged in a business
that would require it to be so registered.

       

      
        
          
          

        

        
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      5.4 Investment
Experience. Each Investor understands that such Investor's investment in
the Securities being purchased by such Investor from the Company involves a high
degree of risk.  Such Investor understands that no United States
federal or state agency or any other government or governmental agency has
passed or made any recommendation or endorsement of the Securities being
purchased by the Investor from the Company.  Such Investor
acknowledges that it can bear the economic risk and complete loss of its
investment in the Securities and has such knowledge and experience in financial
or business matters that it is capable of evaluating the merits and risks of the
investment contemplated hereby.

       

      5.5 Disclosure of
Information. Such Investor has had an opportunity to receive all
information related to the Company requested by it and to ask questions of and
receive answers from the Company regarding the Company, its business and the
terms and conditions of the offering of the Securities. Such Investor
acknowledges receipt of copies of the SEC Filings. Neither such inquiries nor
any other due diligence investigation conducted by such Investor shall modify,
limit or otherwise affect such Investor’s right to rely on the Company’s
representations and warranties contained in this Agreement.

       

      5.6 Restricted
Securities. Such Investor understands that the Securities are
characterized as “restricted securities” under the U.S. federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the 1933 Act only in
certain limited circumstances.

       

      5.7 No Public Market.
Such Investor understands that no public market exists for the Shares or
Warrants, and that the Company has made no assurances that a public market will
ever exist for the Shares or Warrants.

       

      5.8 Legends. It is
understood that, except as provided below, certificates evidencing the
Securities may bear the following or any similar legend:

       

      (a) “THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR
SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR
AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.”

       

      (b) If
required by the authorities of any state in connection with the issuance of sale
of the Securities, the legend required by such state authority.

       

      5.9 Accredited Investor.
Such Investor is an accredited investor as defined in Rule 501(a) of Regulation
D, as amended, under the 1933 Act.

       

      5.10 No General
Solicitation. Such Investor did not learn of the investment in the
Securities as a result of any general solicitation or general
advertising.

       

      
        
          
          

        

        
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      5.11 Brokers and Finders.
No Person will have (other than the Placement Agent), as a result of the
transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company, any Subsidiary or an Investor for
any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of such Investor.

       

      5.12 Prohibited
Transactions. Since the earlier of (a) such time as such Investor was
first contacted by the Company or any other Person acting on behalf of the
Company regarding the transactions contemplated hereby or (b) thirty (30) days
prior to the date hereof, neither such Investor nor any Affiliate of such
Investor which (x) had knowledge of the transactions contemplated hereby, (y)
has or shares discretion relating to such Investor’s investments or trading or
information concerning such Investor’s investments, including in respect of the
Securities, or (z) is subject to such Investor’s review or input concerning such
Affiliate’s investments or trading (collectively, “Trading Affiliates”) has,
directly or indirectly, effected or agreed to effect any short sale, whether or
not against the box, established any “put equivalent position” (as defined in
Rule 16a-1(h) under the 1934 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 or otherwise
sought to hedge its position in the Securities (each, a “Prohibited
Transaction”). Notwithstanding the foregoing, in the case of an Investor that is
a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Investor’s assets and the portfolio managers have no
direct knowledge of the investment decisions made by the portfolio managers
managing other portions of such Investor’s assets, the representation set forth
above shall only apply with respect to the portion of assets managed by the
portfolio manager that made the investment decision to purchase the Securities
covered by this Agreement. Other than to other Persons party to this Agreement,
such Investor has maintained the confidentiality of all disclosures made to it
in connection with the Contemplated Transactions (including the existence and
terms of the Contemplated Transaction). Notwithstanding the foregoing, for
avoidance of doubt, nothing contained herein shall constitute a representation
or warranty, or preclude any actions, with respect to the identification of the
availability of, or securing of, available shares to borrow in order to effect
any short sales or similar transactions in the future. Such Investor
acknowledges that the representations, warranties and covenants contained in
this Section 5.12 are being made for the benefit of the Investors as well as the
Company and that each of the other Investors shall have an independent right to
assert any claims against such Investor arising out of any breach or violation
of the provisions of this Section 5.12.

       

      5.13 Limitation on
Ownership.  Investor understands that except as expressly
provided in the Certificate of Designation and the Warrants, the Investor shall
not be entitled to convert the Preferred Stock or exercise Warrants for Common
Stock if such conversion or exercise would result in the Investor (together with
the Investor’s affiliates) beneficially owning more than 4.99% of the
outstanding Common Stock after giving effect to such conversion or exercise. The
Investor may increase the ownership limitation percentage to 9.99% effective the
61st day after providing notice of such increase to the Company in writing. For
the purposes of this Agreement, beneficial ownership shall be determined in
accordance with Section 13(d) of the 1934 Act, and Regulation 13d-3
thereunder.

       

      
        
          
          

        

        
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      6. Conditions to
Closing.

       

      6.1 Conditions to the Investors’
Obligations. The obligation of each Investor to purchase the Shares and
the Warrants at the Closing is subject to the fulfillment to such Investor’s
satisfaction, on or prior to the Closing Date, of the following conditions, any
of which may be waived by such Investor (as to itself only):

       

      (a) The
representations and warranties made by the Company in Section 4 hereof qualified
as to materiality shall be true and correct at all times prior to and on the
Closing Date, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty
shall be true and correct as of such earlier date, and, the representations and
warranties made by the Company in Section 4 hereof not qualified as to
materiality shall be true and correct in all material respects at all times
prior to and on the Closing Date, except to the extent any such representation
or warranty expressly speaks as of an earlier date, in which case such
representation or warranty shall be true and correct in all material respects as
of such earlier date. The Company shall have performed in all material respects
all obligations and covenants herein required to be performed by it on or prior
to the Closing Date.

       

      (b) The
Company shall have obtained any and all consents, permits, approvals,
registrations and waivers necessary or appropriate for consummation of the
purchase and sale of the Securities and the consummation of the other
transactions contemplated by the Transaction Documents, all of which shall be in
full force and effect.

       

      (c) The
Company shall have filed the Certificate of Designation with the Nevada
Secretary of State.

       

      (d) The
Company shall have executed and delivered the Registration Rights
Agreement.

       

      (e) No
judgment, writ, order, injunction, award or decree of or by any court, or judge,
justice or magistrate, including any bankruptcy court or judge, or any order of
or by any governmental authority, shall have been issued, and no action or
proceeding shall have been instituted by any governmental authority, enjoining
or preventing the consummation of the transactions contemplated hereby or in the
other Transaction Documents.

       

      (f) The
Company shall have delivered a Certificate, executed on behalf of the Company by
its Chief Executive Officer or its Chief Financial Officer, dated as of the
Closing Date, certifying to the fulfillment of the conditions specified in
subsections (a), (b), (c) and (e) of this Section 6.1.

       

      (g) The
Company shall have delivered a Certificate, executed on behalf of the Company by
its Secretary, dated as of the Closing Date, certifying the resolutions adopted
by the Board of Directors of the Company approving the transactions contemplated
by this Agreement and the other Transaction Documents and the issuance of the
Securities, certifying the current versions of the Certificate of Incorporation
and Bylaws of the Company and certifying as to the signatures and authority of
persons signing the Transaction Documents and related documents on behalf of the
Company.

       

      
        
          
          

        

        
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      (h) The
Investors and the Placement Agent shall have received an opinion from counsel to
the Company, dated as of the Closing Date, in form and substance reasonable
acceptable to the Investors and addressing such legal matters as the Investors
may reasonably request.

       

      (i) No stop
order or suspension of trading shall have been imposed by the OTC Bulletin
Board, the SEC or any other governmental or regulatory body with respect to
public trading in the Common Stock.

       

      6.2 Conditions to Obligations of
the Company. The Company’s obligation to sell and issue the Shares and
the Warrants at the Closing is subject to the fulfillment to the satisfaction of
the Company on or prior to the Closing Date of the following conditions, any of
which may be waived by the Company:

       

      (a) The
representations and warranties made by the Investors in Section 5 hereof, other
than the representations and warranties contained in Sections 5.3 through 5.10,
Section 5.12, and Section 5.13 (the “Investment Representations”), shall be true
and correct in all material respects when made, and shall be true and correct in
all material respects on the Closing Date with the same force and effect as if
they had been made on and as of said date. The Investment Representations shall
be true and correct in all respects when made, and shall be true and correct in
all respects on the Closing Date with the same force and effect as if they had
been made on and as of said date. The Investors shall have performed in all
material respects all obligations and covenants herein required to be performed
by them on or prior to the Closing Date.

       

      (b) The
Investors shall have executed and delivered the Registration Rights
Agreement.

       

      (c) The
Investors shall have delivered the Purchase Price to the Company.

       

      6.3 Termination of Obligations
to Effect Closing; Effects.

       

      (a) The
obligations of the Company, on the one hand, and the Investors, on the other
hand, to effect the Closing shall terminate as follows:

       

      (i) Upon the
mutual written consent of the Company and the Investors;

       

      (ii) By the
Company if any of the conditions set forth in Section 6.2 shall have become
incapable of fulfillment, and shall not have been waived by the

      Company;

       

      (iii) By an
Investor (with respect to itself only) if any of the conditions set forth in
Section 6.1 shall have become incapable of fulfillment, and shall
not

      have been
waived by the Investor; or

       

      
        
          
          

        

        
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      (iv) By either
the Company or any Investor (with respect to itself only) if the Closing has not
occurred on or prior to the date thirty days after the date

      hereof;

       

      provided,
however, that, except in the case of clause (i) above, the party seeking to
terminate its obligation to effect the Closing shall not then be in breach of
any of its representations, warranties, covenants or agreements contained in
this Agreement or the other Transaction Documents if such breach has resulted in
the circumstances giving rise to such party’s seeking to terminate its
obligation to effect the Closing.

      

      7. Covenants and Agreements of
the Company.

       

      7.1 Reservation of Common
Stock. The Company shall at all times reserve and keep available out of
its authorized but unissued shares of Common Stock a sufficient number of shares
of Common Stock for issuance of the Conversion Shares upon conversion of the
Shares, for issuance of the Dividend Shares upon distribution of a dividend on
the Shares by the Company, and for issuance of the Warrant Shares upon the
exercise of the Warrants, free and clear of all encumbrances and restrictions,
except for restrictions on transfer set forth in the Transaction Documents or
imposed by applicable securities laws and except for those created by the
Investors.

       

      7.2 Reports. The Company
will furnish to the Investors and/or their assignees such information relating
to the Company and its Subsidiaries as from time to time may reasonably be
requested by the Investors and/or their assignees; provided, however, that the
Company shall not disclose material nonpublic information to the Investors, or
to advisors to or representatives of the Investors, unless prior to disclosure
of such information the Company identifies such information as being material
nonpublic information and provides the Investors, such advisors and
representatives with the opportunity to accept or refuse to accept such material
nonpublic information for review and any Investor wishing to obtain such
information enters into an appropriate confidentiality agreement with the
Company with respect thereto.

       

      7.3 No Conflicting
Agreements. The Company will not take any action, enter into any
agreement or make any commitment that would conflict or interfere in any
material respect with the Company’s obligations to the Investors under the
Transaction Documents.

       

      7.4 Insurance. The
Company shall not materially reduce the insurance coverages described in Section
4.19.

       

      7.5 Compliance with Laws.
The Company will comply in all material respects with all applicable laws,
rules, regulations, orders and decrees of all governmental
authorities.

       

      7.6 Termination of
Covenants. The provisions of Sections 7.2 through 7.5 shall terminate and
be of no further force and effect on the date on which the Company’s obligations
under the Registration Rights Agreement to register or maintain the
effectiveness of any registration covering the Registrable Securities (as such
term is defined in the Registration Rights Agreement) shall
terminate.

       

      
        
          
          

        

        
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      7.7 Removal of Legends.
In connection with any sale or disposition of the Securities by an Investor
pursuant to Rule 144 or pursuant to any other exemption under the 1933 Act such
that the purchaser acquires freely tradable shares and upon compliance by the
Investor with the requirements of this Agreement, the Company shall or, in the
case of Common Stock, shall cause the transfer agent for the Common Stock (the
“Transfer Agent”) to issue replacement certificates representing the Securities
sold or disposed of without restrictive legends. Upon the earlier of (i)
registration for resale pursuant to the Registration Rights Agreement or (ii)
the Shares becoming freely tradable by a non-affiliate pursuant to Rule 144, the
Company shall (A) deliver to the Transfer Agent irrevocable instructions that
the Transfer Agent shall reissue a certificate representing shares of the
Preferred Stock without legends upon receipt by such Transfer Agent of the
legended certificates for such shares, together with either (1) a customary
representation by the Investor that Rule 144 applies to the shares of Preferred
Stock represented thereby or (2) a statement by the Investor that such Investor
has sold the shares of Preferred Stock represented thereby in accordance with
the Plan of Distribution contained in the Registration Statement, and (B) cause
its counsel to deliver to the Transfer Agent one or more blanket opinions to the
effect that the removal of such legends in such circumstances may be effected
under the 1933 Act. From and after the earlier of such dates, upon an Investor’s
written request, the Company shall promptly cause certificates evidencing the
Investor’s Securities to be replaced with certificates which do not bear such
restrictive legends, and Common Stock subsequently issued upon conversion of the
Preferred Stock, upon payment of a dividend on the Shares, or upon exercise of
the Warrant Shares shall not bear such restrictive legends provided the
provisions of either clause (i) or clause (ii) above, as applicable, are
satisfied with respect to such Common Stock.  The Company shall pay
(i) expenses and fees incurred in connection with the reissuance of certificates
without restrictive legends upon the satisfaction of Rule 144, (ii) all fees and
disbursements of Company's counsel incurred in rendering the blanket opinion(s)
as provided in this Section 7.7, and (iii) all registration expenses for which
the Company is responsible pursuant to the Registration Rights
Agreement.

       

      8. Survival and
Indemnification.

       

      8.1 Survival. The
representations, warranties, covenants and agreements contained in this
Agreement shall survive the Closing of the transactions contemplated by this
Agreement.

       

      8.2 Indemnification. The
Company agrees to indemnify and hold harmless each Investor and its Affiliates
and the Placement Agent and their respective directors, officers, employees and
agents from and against any and all losses, claims, damages, liabilities and
expenses (including without limitation reasonable attorney fees and
disbursements and other expenses incurred in connection with investigating,
preparing or defending any action, claim or proceeding, pending or threatened
and the costs of enforcement thereof) (collectively, “Losses”) to which such
Person may become subject as a result of any breach of representation, warranty,
covenant or agreement made by or to be performed on the part of the Company
under the Transaction Documents, and will reimburse any such Person for all such
amounts as they are incurred by such Person; provided, however, that such
indemnifiable Losses shall not exceed the amount representing such Investor’s
pro rata portion of the Purchase Price as set forth on the signature pages to
this Agreement.

       

      8.3 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, or (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 advice of its counsel, 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.

       

      9. Miscellaneous.

       

      9.1 Successors and
Assigns. This Agreement may not be assigned by a party hereto without the
prior written consent of the Company or the Investors, as applicable; provided,
however, that an Investor may assign its rights and delegate its duties
hereunder in whole or in part to an Affiliate or to a third party acquiring some
or all of the Securities in a transaction complying with applicable securities
laws without the prior written consent of the Company or the other Investors.
The provisions 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.

       

      9.2 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.

       

      9.3 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.

       

      
        
          
          

        

        
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      9.4 Notices. Unless
otherwise provided, any notice required or permitted under this Agreement shall
be given in writing and shall be deemed effectively given as hereinafter
described (i) if given by personal delivery, then such notice shall be deemed
given upon such delivery, (ii) if given by telex or telecopier, then such notice
shall be deemed given upon receipt of confirmation of complete transmittal,
(iii) if given by mail, then such notice shall be deemed given upon the earlier
of (A) receipt of such notice by the recipient or (B) three days after such
notice is deposited in first class mail, postage prepaid, and (iv) if given by
an internationally recognized overnight air courier, then such notice shall be
deemed given one Business Day after delivery to such carrier. All notices shall
be addressed to the party to be notified at the address as follows, or at such
other address as such party may designate by ten days’ advance written notice to
the other party:

       

      If to the Company:

      

      PROVECTUS
PHARMACEUTICALS, INC.

      7327 Oak
Ridge Highway, Suite A

      Knoxville,
TN 37931

      Attention:
Peter R. Culpepper

      Telephone
No.: (865) 769-4011

      Telecopier
No.: (865) 769-4013

      

      with a
copy to:

      

      Linda
Crouch

      Baker,
Donelson, Bearman, Caldwell & Berkowitz, PC

      100 Med
Tech Parkway

      Suite
200

      Johnson
City, Tennessee 37604

      Telephone
No.: (423) 928-0181

      Telecopier
No.: (423) 928-5694

      

      If to the Investors:

      

      to the
addresses set forth on the signature pages hereto.

      

      9.5 Expenses. The parties
to this Agreement shall pay their own costs and expenses in connection herewith,
except that the Company shall pay the reasonable fees and expense of Lowenstein
Sandler, PC, counsel to the Placement Agent, not to exceed $20,000, regardless
of whether the transactions contemplated hereby are consummated; it being
understood that Lowenstein Sandler PC has only rendered legal advice to the
Placement Agent and not to the Company or any Investor in connection with the
transactions contemplated hereby, and that each of the Company and each Investor
has relied for such matters on the advice of its own respective counsel.
Notwithstanding the foregoing, the Company shall not be obligated to pay such
fees and expense of Lowenstein Sandler PC that exceed $20,000 in the aggregate
for all sales of the Units, Shares, or Warrants pursuant to the Private
Placement Memorandum, whether pursuant to this Agreement or multiple agreements
for the sale of such Units, Shares, and Warrants.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      9.6 Amendments and
Waivers. Any term of this Agreement may be amended and the observance of
any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of the Company and the Investors. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon each holder of any
Securities purchased under this Agreement at the time outstanding, each future
holder of all such Securities, and the Company.

       

      9.7 Publicity. If the
sales of Securities under this Agreement would require the Company to report
sales of unregistered securities under Item 3.02 of Form 8-K,  then
the Company shall (i) no later than the first trading day following the Closing
that triggers such filing requirement the Company issue a press release
disclosing the consummation of the transactions contemplated by this Agreement
and (ii) by the applicable time for filing reports contained in Form 8-K, file a
Current Report on Form 8-K attaching the press release as well as copies of the
Transaction Documents. The Company will make such other filings and notices in
the manner and time required by the SEC. Each Investor, severally and not
jointly with the other Investors, covenants that neither it nor any Affiliate
acting on its behalf or pursuant to any understanding with it will execute any
purchases or sales, including short sales of any of the Company’s securities
during the period commencing with the execution of this Agreement and ending at
such time that the transactions contemplated by this Agreement are first
publicly announced pursuant to the initial press release as described in this
Section 9.7.  Each Investor, severally and not jointly with the other
Investors, covenants that until such time as the Contemplated Transactions are
publicly disclosed by the Company pursuant to the initial press release as
described in this Section 9.7, such Investor will maintain the confidentiality
of the existence and terms of this transaction and the information included in
the Company Disclosure Schedule. Notwithstanding the foregoing and
notwithstanding anything contained in this Agreement to the contrary, the
Company expressly acknowledges and agrees that (i) no Investor makes any
representation, warranty or covenant hereby that it will not engage in effecting
transactions in any securities of the Company after the time that the
transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in this Section 9.7 and (ii)
no Investor shall have any duty of confidentiality to the Company after the
issuance of the initial press release as described in this Section 9.7.
Notwithstanding the foregoing, in the case of an Investor that is a
multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Investor’s assets and the portfolio managers have no
direct knowledge of the investment decisions made by the portfolio managers
managing other portions of such Investor’s assets, the covenant set forth above
shall only apply with respect to the portion of assets managed by the portfolio
manager that made the investment decision to purchase the Securities covered by
this Agreement.

       

      9.8 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 provision hereof prohibited or unenforceable in any
respect.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      9.9 Entire Agreement.
This Agreement, including the Exhibits and the Disclosure Schedules, and the
other Transaction Documents constitute the entire agreement among the parties
hereof with respect to the subject matter hereof and thereof and supersede all
prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter hereof and thereof.

       

      9.10 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.

       

      9.11 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.

       

      9.12 Independent Nature of
Investors’ Obligations and Rights. The obligations of each Investor under
any Transaction Document are several and not joint with the obligations of any
other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under any Transaction
Document. The decision of each Investor to purchase Securities pursuant to the
Transaction Documents has been made by such Investor independently of any other
Investor. Nothing contained herein or in any Transaction Document, and no action
taken by any Investor pursuant thereto, shall be deemed to constitute the
Investors as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Investors are in any way acting in
concert or as a group with respect to such obligations or the transactions
contemplated by the Transaction Documents. Each Investor acknowledges that no
other Investor has acted as agent for such Investor in connection with making
its investment hereunder and that no Investor will be acting as agent of such
Investor in connection with monitoring its investment in the Securities or
enforcing its rights under the Transaction Documents. Each Investor shall be
entitled to independently protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other Investor to
be joined as an additional party in any proceeding for such purpose. The Company
acknowledges that each of the Investors has been provided with the same
Transaction Documents for the purpose of closing a transaction with multiple
Investors and not because it was required or requested to do so by any
Investor.

       

      [signature
pages follow]

      
        
          
             

          

           

        

        
          21

          
            

          

        

        
           

        

      

      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.

      

      The
Company:                                                    
PROVECTUS PHARMACEUTICALS, INC.

      

      

      

      By:                                           
                                                                

      Name:  Peter R.
Culpepper

      Title:  Chief Financial
Officer

      

      

      

      
        
          
            Signature
Page to Securities Purchase Agreement

          

           

        

        
          
          

          
            

          

        

        
           

        

      

       

       

      
        	The
      Investors: 	 	 
	 	 	 
	 	
              	By:_______________________________________
	 	
              	Name:
	 	 	Title:
	 	 	 
	Aggregate Purchase
      Price: 	 	$_________________________________________ 
	Number of
      Shares: 	 	__________________________________________ 
	Number of
      Warrants: 	 	__________________________________________ 
	 	 	 
	Address for
      Notice:   	 	__________________________________________ 
	 	 	__________________________________________ 
	 	 	__________________________________________ 
	 	 	__________________________________________ 

      

      

         

       

      
 

      

      

      

      

      
        
          
            Signature
Page to Securities Purchase Agreement

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
A –WARRANT

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
B – REGISTRATION RIGHTS AGREEMENT

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
C – CERTIFICATE OF DESIGNATION

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