Document:

Execution
Version

     

    ONCOVISTA
INNOVATIVE THERAPIES, INC.

    14785
Omicron Drive, Suite 104

    San
Antonio, Texas  78245

    

    January
15, 2009

    

    
      
        
          	
                  To
      the holders (including any successors and permitted transferees and
      assignees of such holders, the “Holders”) of warrants
      (the “Warrants”)
      to purchase up to an amount or number of the securities offered in the
      first Qualified Financing (as defined in the Warrant) (the “Offering”) consummated
      by the Company following the date hereof equal to principal amount of the
      Secured Promissory Notes due 2010 (the “Notes”)  (determined
      based on the offering price in such Qualified Financing) at a price per
      security equal to the product of (A) and (B), where (A) equals the
      offering price per security in the next Qualified Financing consummated by
      the Company and where (B) equals 0.90, or, under certain circumstances,
      shares of common stock, par value $0.001 per share (the “Common Stock”), in each
      case of OncoVista Innovative Therapies, Inc., a Delaware corporation (the
      “Company”)

                

        

      

    

    

    Ladies
and Gentlemen:

    

    Reference is made to the Subscription
Letter Agreement submitted by each of the Holders to the Company (the “Subscription
Agreements”).  This letter agreement sets forth the
registration rights referenced in the Subscription Agreement.

    

    As further inducement for Holders to
undertake the transactions contemplated by the Subscription Agreement, the
Company hereby agrees with the Holders as follows:

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    (a)          
Registration
Rights.

    

    (i)           
 (A)           On or
prior to each Filing Date (as hereinafter defined), the Company shall prepare
and file with the Securities and Exchange Commission (the “SEC”) a registration
statement (the “Registration
Statement”) covering the resale of all or such portion of the shares of
Common Stock issuable upon the exercise of the Warrants (the “Registrable Securities”) as
shall be permitted by any publicly-available written or oral guidance, comments,
requirements or requests of the SEC staff and the Securities Act of 1933, as
amended (the “Securities
Act”).  The Company agrees to use commercially reasonable
efforts to advocate with the SEC for the registration of all of the Registrable
Securities the resale of which on such Filing Date is not then registered on an
effective registration statement for an offering to be made on a continuous
basis pursuant to Rule 415 under the Securities Act.  The Registration
Statement shall be on Form S-1, or another appropriate form.  The
Company shall use its best efforts to cause a registration statement to be
declared effective under the Securities Act as promptly as practicable after the
filing thereof, and shall use its best efforts to keep such registration
statement continuously effective under the Securities Act until all Registrable
Securities covered by such Registration Statement have been sold, or may be sold
without volume restrictions pursuant to Rule 144(e).  If any SEC
guidance sets forth a limitation of the number of Registrable Securities to be
registered on a particular registration statement (and notwithstanding that the
Company used best efforts to advocate with the SEC for the registration of all
or a greater number of Registrable Securities), unless otherwise directed in
writing by a holder as to its Registrable Securities, the number of Registrable
Securities to be registered on such registration statement will be reduced on a
pro rata basis based on the total number of Registrable Securities held by such
Holders).  At least fifteen (15) days prior to the first anticipated
filing date of the Registration Statement, the Company shall notify each Holder
of any information of such Holder that is reasonably required to be included in
the Registration Statement under the Securities Act.  Any such Holder
shall provide such information to the Company at least five (5) days prior to
the first anticipated filing date of such Registration
Statement.  Notwithstanding the foregoing, the Company shall not be
required to register the resale of Registrable Securities held by any such
Holder that does not, prior to such five (5) days prior to the anticipated
filing date of such Registration Statement, provide to the Company such
information.

    

    (B)           In
the event that the Company shall not file the registration statement with the
SEC on or prior to the 45th day
following its respective Filing Date, or cause such registration statement to be
declared effective under the Securities Act on or prior to its respective
Effective Date (as hereinafter defined), the Company shall pay to each investor
in the Offering liquidated damages in the amount of 0.5% of the Offering price
of the Notes and the Warrants purchased thereby for each thirty (30) days
thereafter until such registration statement shall be filed or effective under
the Securities Act, as applicable, provided, however, that no penalty shall be
applicable with respect to (i) the Registrable Securities of any investor herein
which does not provide to the Company promptly upon request information
reasonably required to be set forth in such registration statement pursuant to
the rules and regulations of the SEC or (ii) any delay resulting from compliance
by the Company with SEC Guidance.  Further, in no event shall such
cumulative liquidated damages exceed 10% of the purchase price of the investors
in the Offering.

    

    For
purposes of this Memorandum, “Effective Date” shall mean
the 120th day
following the Filing Date.

    

    (ii)           For
purposes of this Memorandum, “Filing Date” shall mean, with
respect to the initial registration statement required hereunder, the 45th
calendar day following (1) the date of the final closing of the Offering, and,
(2) with respect to any additional Registration Statements which may be
required, the earliest practical date on which we are permitted by SEC Guidance
to file such additional registration statement related to the Registrable
Securities.

    
      
         

      

      
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    (iii)           The
Company shall use best efforts to (A) (1) prevent the issuance of any stop order
or other suspension of effectiveness and, (2) if such order is issued, obtain
the withdrawal of any such order at the earliest possible moment and (B) cause
all Registrable Securities covered by a Registration Statement to be listed on
each securities exchange, interdealer quotation system or other market on which
similar securities issued by the Company are then listed;

     

    (iv)          Notwithstanding
the foregoing, the Company shall not be obligated to prepare and to file a
post-effective amendment or supplement to the Registration Statement or the
prospectus constituting a part thereof, and no Holder may offer or sell
Registrable Securities pursuant to the Registration Statement, during the
continuance of a Blackout Event (as defined below); provided, however, that (A) the Company shall use best efforts to ensure
that no Blackout Event may be deemed to exist for more than thirty (30)
consecutive days, nor more than forty five (45) days during any 12-month period
(the period during which such Blackout Event shall continue, a “Blackout Period”), (B) the Company shall promptly (1) notify the
Holders in writing of the existence of (but in no event, without the prior
written consent of the Holder, shall the Company disclose to the Holders any of
the facts or circumstances regarding) the event giving rise to an Blackout
Event, provided that the Company shall not be required to disclose material
nonpublic information to the Holder; (2) advise the Holders in writing to cease
all sales under the Registration Statement until the end of the Blackout Period;
and (c) use commercially reasonable efforts to terminate an Blackout Period as
promptly as practicable.  A “Blackout Event” means any of
the following: (a) the reasonable belief that there is or may be in existence
material nonpublic information or events involving the Company, the failure of
which to be disclosed in the prospectus included in the Registration Statement
could result in a Violation (as defined below); or (b) any material engagement
or activity by the Company which would, in the reasonable and good faith determination of the
Chief Executive Officer (“CEO”) or the Board of
Directors of the Company (the “Board”) (as set forth in a
certificate signed by the CEO or the Chairman of the Board and delivered to the
Holders), be materially adversely affected by disclosure in a registration
statement or prospectus at such time.  A Blackout Event will be deemed
to commence when such Registration Statement ceases, for either of the reasons
set forth in clauses (a) or (b) above, to be effective and available to the
Holders as to some or all of the Registrable Securities at any time prior to the
expiration of the effectiveness period with respect to such Registration
Statement set forth herein.  Without the
express written consent of the Holders, if required to permit the continued sale of Shares or Warrant Shares
by the Holders, a post-effective amendment or supplement to Registration
Statement or the prospectus constituting a part thereof must be filed as soon as
reasonably practicable following any Blackout Event.  A “Violation” by the Company includes: (x) any untrue statement or
alleged untrue statement of a material fact contained in such Registration
Statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto, (y) the omission or alleged
omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading, or (z) any violation or
alleged violation by the Company of the Securities Act, the Securities Exchange
Act of 1934 or any state securities law in connection with the offering covered
by such registration statement.

    
      
         

      

      
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    (v)           At
least ten (10) business days prior to the filing with the SEC of the
Registration Statement (or any amendment thereto) or the prospectus forming a
part thereof (or any supplement thereto), the Company shall provide draft copies
thereof to the Holders and shall (A) incorporate into such documents such
material furnished to the Company in writing, which in the reasonable judgment
of the Holders (and its counsel) and counsel for the Company should be
incorporated therein and (B) not file any document to which such Holder’s
counsel may reasonably object based upon such counsel’s belief that such
Registration Statement is not in compliance with applicable laws, rules or
regulations or contains a material misstatement or
omission.  Notwithstanding the foregoing, no prospectus supplement,
the form of which has previously been provided to the Holders, need be delivered
in draft form to the Holders.

    

    (vi)          The
Company shall (A) promptly notify the Holders upon the occurrence of any of the
following events in respect of the Registration Statement or the prospectus
forming a part thereof: (i) receipt of any request for additional information
from the SEC or any other federal or state governmental authority during the
Registration Period, the response to which would require any amendments or
supplements to the Registration Statement or related prospectus; (ii) the
issuance by the SEC or any other federal or state governmental authority of any
stop order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose;  (iii) receipt of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; or (iv) the effectiveness of the Registration Statement within 48 hours
following such Registration Statement being declared effective and (B)
immediately notify the Holders, at any time when a prospectus relating to
Registrable Securities is required to be delivered under the Securities Act,
upon discovery that, or upon the happening of any event or the passage of time
as a result of which, the prospectus included in a Registration Statement, as
then in effect, includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing,
and at the request of any such Holder, promptly prepare and furnish to such
Holder a reasonable number of copies of a supplement to or an amendment of such
prospectus or the Registration Statement as may be necessary so that, as
thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then
existing.

    
      
         

      

      
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    (vii)         The
Company shall, as soon as reasonably practicable after the effectiveness of the
Registration Statement, at the request of any Holder, furnish such Holder with
respect to the Registrable Securities registered under the Registration
Statement such number of copies of any Registration Statement and any amendment
thereto, each preliminary prospectus and Prospectus and each amendment or
supplement thereto, and each letter written by or on behalf of the Company to
the SEC or the staff of the SEC as such Holder may reasonably request, and each
item of correspondence from the SEC or the staff of the SEC, in each case
relating to such Registration Statement (other than any portion of any thereof
which contains information for which the Company has sought confidential
treatment), and such number of copies of prospectuses and such other documents
as such Holder may reasonably request, in order to facilitate the public sale or
other disposition of all or any of the Registrable Securities by such Holder
pursuant to the Registration Statement.

    

    (viii)        The
Company shall file or cause to be filed such documents to register and qualify
the securities covered by the Registration Statement under such other securities
or “blue sky” laws of such jurisdictions as shall be in effect for so long as
such Registration Statement remains in effect; provided, however, that the
Company shall not be required to qualify to do business or consent to service of
process in any jurisdiction in which it is not now so qualified or has not so
consented.

    

    (ix)         With
a view to making available to the Holders the benefits of Rule 144, the Company
agrees, from the date of the closing of the Offering and so long as the Holders
own Registrable Securities, to use best efforts to:

     

    (A)           comply
with the provisions of paragraph (c)(1) of Rule 144;

     

    (B)           file
with the SEC in a timely manner all reports and other documents required to be
filed by the Company pursuant to Section 13, 14 or 15(d) under the Exchange Act;
and, if at any time it is not required to file such reports but in the past had
been required to or did file such reports, it will, upon the request of the
Holders, make available other information as required by, and so long as
necessary to permit sales of its Registrable Securities pursuant to, Rule 144;
and

     

    (C)           so
long as a Holder owns any Registrable Securities, furnish to such Holder
forthwith upon request:  (1) a written statement by the Company as to
its compliance with the reporting requirements of  Rule 144 and of the
Exchange Act, (2) a copy of the most recent annual or quarterly report of the
Company, and (3) such other reports and documents as a Holder may reasonably
request in availing itself of any rule or regulation of the SEC allowing it to
sell any such securities without registration.

    
      
         

      

      
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    (x)          
 The Company shall make available, during normal business hours, upon
reasonable request, for inspection and review by one counsel and accounting firm
to the Holders, all financial and other records, all filings with the SEC, and
all other documents respecting the Company, its assets, its properties or its
business (including without limitation minute books, corporate records,
financial statements, contracts, permits, licenses, approvals, technical or
engineering reports, and any title opinions or valuations which the Company has
obtained) as may be reasonably necessary for the purpose of such review, and
cause the Company’s officers, directors and employees, within a reasonable time
period, to supply all such information reasonably requested by the counsel and
accounting firm to the Holders in connection with the Registration Statement
(including, without limitation, in response to all questions and other inquiries
reasonably made or submitted by any of them) to the extent not publicly
available on EDGAR or the Company’s website, prior to and from time to time
after the filing and effectiveness of the Registration Statement for the sole
purpose of enabling the counsel and the accounting firm to the Holders to
conduct initial and ongoing due diligence with respect to the Company and the
accuracy of such Registration Statement and a reasonable investigation within
the meaning of the Securities Act.  Notwithstanding any of the
foregoing, nothing herein shall obligate the Company to provide to the Holder,
or any advisors, any material nonpublic information.    The
Company shall not disclose material nonpublic information to any Holders or such
counsel and accounting firm, unless prior to disclosure of such information the
Company identifies such information as being material nonpublic information and
provides the Holders and such advisors and representatives with the opportunity
to accept or refuse to accept such material nonpublic information for review and
receives therefrom a confidentiality agreement in form and substance reasonably
satisfactory to the Company.

     

    (xi)           The
Company shall cooperate with the Holders to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold
pursuant to a Registration Statement, which certificates shall, if required
under the terms of this letter agreement and upon the receipt by the Company of
representations of the Holders as to the intent to sell such securities, be free
of all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as the Holders may reasonably
request.

    

    (b)           Fees and
Expenses.  All expenses incurred in connection with
registrations pursuant to this letter, including, without limitation, all
registration, qualification and filing fees, fees relating to the filings with
the NASD’s CobraDesk (if required), printing expenses, escrow fees, fees and
disbursements of counsel for the Company, blue sky fees and expenses and the
expense of any special audits incident to or required by any such registration
(but excluding the fees and expenses of any counsel for any Holder or Holders)
shall be borne by the Company.  All underwriting discounts and selling
commissions applicable to the Registrable Securities, shall be borne by the
Holders.

    

    
      
        
        

      

      
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    (c)           Indemnification.

    

    (i)          
 Subject to the conditions set forth below, the Company agrees to indemnify
and hold harmless the Holders, their respective officers, directors, partners,
employees, agents, and counsel, and each person, if any, who controls any such
person within the meaning of Section 15 of the Act or Section 20(a) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and
against any and all loss, liability, charge, claim, damage, and expense
whatsoever (which shall include, for all purposes of this paragraph (c), without
limitation, reasonable attorneys' fees and reasonable expenses incurred in
investigating, preparing, or defending against any litigation, commenced or
threatened, or any claim whatsoever, and any and all amounts paid in settlement
of any claim or litigation), as and when incurred, arising out of, based upon,
or in connection with, (A) any untrue statement or alleged untrue statement of a
material fact contained in (1) any registration statement, preliminary
prospectus, or final prospectus (as from time to time amended and supplemented),
or any amendment or supplement thereto, relating to the offer and sale of any of
the Registrable Securities, or (2) any application or other document or
communication (in this paragraph (c), referred to collectively as an “application”) executed by, or
on behalf of, the Company or based upon written information furnished by, or on
behalf of, the Company filed in any jurisdiction in order to register or qualify
any of the Registrable Securities under the securities or “blue sky” laws thereof or
filed with any securities exchange; or any omission or alleged omission to state
a material fact required to be stated therein or necessary to make the
statements therein not misleading, unless such statement or omission was made in
reliance upon, and in conformity with, written information furnished to the
Company with respect to such Holder by, or on behalf of, such person expressly
for inclusion in any registration statement, preliminary prospectus or final
prospectus, or any amendment or supplement thereto, or in any application, as
the case may be, or (B) any breach of any representation, warranty, covenant, or
agreement of the Company contained in this letter agreement.  The
foregoing agreement to indemnify shall be in addition to any liability the
Company may otherwise have, including liabilities arising under this letter, the
aforementioned warrant, and the related documentation.

    

    If any action is brought against the
Holders or any of its officers, directors, partners, employees, agents, or
counsel, or any controlling persons of such person (an “indemnified party”) in
respect of which indemnity may be sought against the Company pursuant to the
foregoing paragraph, such indemnified party or parties shall promptly notify the
Company in writing of the institution of such action (but the failure so to
notify shall not relieve the Company from any liability it may have other than
pursuant to this paragraph (c)(i)) and the Company shall promptly assume the
defense of such action, including, without limitation, the employment of counsel
reasonably satisfactory to such indemnified party or parties and payment of
reasonable expenses.  Such indemnified party or parties shall have the
right to employ its or their own counsel in any such case, but the fees and
expenses of such counsel shall be at the expense of such indemnified party or
parties unless the employment of such counsel shall have been authorized in
writing by the Company in connection with the defense of such action or the
Company shall not have promptly employed counsel reasonably satisfactory to such
indemnified party or parties to have charge of the defense of such action or
such indemnified party or the Holders shall have reasonably concluded, with the
advice of counsel, that there may be one or more legal defenses available to it
or them or to other indemnified parties which are different from, or in addition
to, those available to the Company, in any of which events such reasonable fees
and expenses shall be borne by the Company, and the Company shall not have the
right to direct the defense of such action on behalf of the indemnified party or
parties.  Anything in this paragraph to the contrary notwithstanding,
(i) the Company shall not be liable for the fees and expenses of more than one
counsel to represent the Holders, and (B) the Company shall not be liable for
any settlement of any such claim or action effected without its written consent,
which consent shall not be unreasonably withheld.  The Company shall
not, without the prior written consent of each indemnified party that is not
released as described in this sentence, settle or compromise any action, or
permit a default or consent to the entry of judgment or otherwise seek to
terminate any pending or threatened action, in respect of which indemnity may be
sought hereunder (whether or not any indemnified party is a party thereto),
unless such settlement, compromise, consent, or termination includes an
unconditional release of each indemnified party from all liability in respect of
such action.  The Company agrees promptly to notify the Holders of the
commencement of any litigation or proceedings against the Company or any of its
officers or directors in connection with the sale of any Registrable Securities
or any preliminary prospectus, prospectus, registration statement, or amendment
or supplement thereto, or any application relating to any sale of any
Registrable Securities.

    
      
         

      

      
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    (ii)           the
Holders agree, severally, but not jointly, to indemnify and hold harmless the
Company, each director of the Company, each officer of the Company who shall
have signed any registration statement relating to Registrable Securities held
by the Holders, and each other person, if any, who controls the Company within
the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, to
the same extent as the foregoing indemnity from the Company to the Holders in
paragraph (c)(i)(A), but only with respect to statements or omissions, if any,
made in any registration statement, preliminary prospectus, or final prospectus
(as from time to time amended and supplemented), or any amendment or supplement
thereto, or in any application, in reliance upon, and in conformity with,
written information furnished to the Company with respect to the Holders by, or
on behalf of, the Holders expressly for inclusion in any such registration
statement, preliminary prospectus, or final prospectus, or any amendment or
supplement thereto, or in any application, as the case may be.  If any
action shall be brought against the Company or any other person so indemnified
based on any such registration statement, preliminary prospectus, or final
prospectus, or any amendment or supplement thereto, or any application, and in
respect of which indemnity may be sought against the Holders pursuant to this
paragraph (c)(ii), the Holders shall have the rights and duties given to the
Company, and the Company and each other person so indemnified shall have the
rights and duties given to the indemnified parties, by the provisions of
paragraph (c)(i)(A).  The foregoing agreement to indemnify shall be in
addition to any liability the Holders may otherwise have.

    
      
         

      

      
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    (iii)           To
provide for just and equitable contribution, if (A) an indemnified party makes a
claim for indemnification pursuant to paragraph (c)(i) or (c)(ii) (subject to
the limitations thereof), but it is found in a final judicial determination, not
subject to further appeal, that such indemnification may not be enforced in such
case, even though this letter agreement expressly provides for indemnification
in such case, or (B) any indemnified or indemnifying party seeks contribution
under the Securities Act, the Exchange Act, or otherwise, then the Company
(including for this purpose any contribution made by, or on behalf of, any
director of the Company, any officer of the Company who signed any such
registration statement, any controlling person of the Company), as one entity,
and the Holders (including for this purpose any contribution by, or on behalf
of, an indemnified party), as a second entity, shall contribute to the losses,
liabilities, claims, damages, and expenses whatsoever to which any of them may
be subject, on the basis of relevant equitable considerations such as the
relative fault of the Company and the Holders in connection with the facts which
resulted in such losses, liabilities, claims, damages, and
expenses.  The relative fault, in the case of an untrue statement,
alleged untrue statement, omission, or alleged omission, shall be determined by,
among other things, whether such statement, alleged statement, omission, or
alleged omission relates to information supplied by the Company or by the
Holders, and the parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement, alleged statement, omission,
or alleged omission.  The Company and the Holders agree that it would
be unjust and inequitable if the respective obligations of the Company and the
Holders for contribution were determined by pro rata or per capita allocation of
the aggregate losses, liabilities, claims, damages, and expenses (even if the
Holders and the other indemnified parties were treated as one entity for such
purpose) or by any other method of allocation that does not reflect the
equitable considerations referred to in this paragraph (c)(iii).  In
no case shall the Holders be responsible for a portion of the contribution
obligation imposed on all holders of Registrable Securities in excess of its pro
rata share based on the number of shares of Common Stock owned (or which would
be owned upon exercise of or conversion of other securities) by it and included
in such registration as compared to the number of shares of Common Stock owned
(or which would be owned upon exercise or conversion of all such other
securities ) by all holders of Registrable Securities and included in such
registration.  No person guilty of a fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who is not guilty of such fraudulent
misrepresentation.  For purposes of this paragraph (c)(iii), each
person, if any, who controls the Holders within the meaning of Section 15 of the
Act or Section 20(a) of the Exchange Act and each officer, director, partner,
employee, agent, and counsel of the Holders or control person shall have the
same rights to contribution as the Holders or control person and each person, if
any, who controls the Company within the meaning of Section 15 of the Act or
Section 20(a) of the Exchange Act, each officer of the Company who shall have
signed any such registration statement, each director of the Company, and its or
their respective counsel shall have the same rights to contribution as the
Company, subject in each case to the provisions of this paragraph
(c)(iii).  Anything in this paragraph (c)(iii) to the contrary
notwithstanding, no party shall be liable for contribution with respect to the
settlement of any claim or action effected without its written
consent.  This paragraph (c)(iii) is not intended to supersede any
right to contribution under the Securities Act, the Exchange Act, or
otherwise.

    

    (iv)           Survival.  The
obligations of the Company and the Holders under this paragraph (c) shall
survive completion of any offering of Registrable Securities in a Registration
Statement and the termination of this letter.

    

    (d)          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 intent of the agreements herein
contained.

    
      
         

      

      
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    (e)           Transfer and
Assignment.  The registration rights set forth herein may be
transferred by the Holders together with the transfer thereby of Registrable
Securities.  This letter agreement shall be binding upon and inure to
the benefit of the parties and their successors and permitted assigns and shall
inure to the benefit of each Holder and its successors and permitted
assigns.  The Company may not assign this letter agreement or any of
its rights or obligations hereunder without the prior written consent of the
Holder.  Each Holder may assign its rights hereunder in the manner and
to the Persons as permitted under this letter agreement.

     

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

     

    (g)           No Inconsistent
Agreements.  Except as set forth herein, the Company has not,
as of the date hereof entered into and currently in effect, nor shall the
Company, on or after the date of this letter agreement, enter into any agreement
with respect to its securities that is inconsistent with the rights granted to
the Holders in this letter agreement or otherwise conflicts with the provisions
hereof.

     

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

     

    (i)           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earlier of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified for notice prior to 5:00 p.m., EST, on a business day, (ii) the
business day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile telephone number specified for notice
later than 5:00 p.m., EST, on any date and earlier than 11:59 p.m., EST, on such
date, (iii) the business day following the date of mailing, if sent by
nationally recognized overnight courier service or (iv) actual receipt by the
party to whom such notice is required to be given.  The addresses for
such communications shall be with respect to each Holder at its address set
forth under its name on the signature page hereto, or with respect to the
Company, at the address set forth in the letterhead above.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (j)           Counterparts.  This
letter agreement may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original and, all of which taken
together shall constitute one and the same agreement.

     

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

     

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

    

    (m)         Governing law;
Jurisdiction.  The aforementioned matters shall be governed by,
and construed in accordance with, the laws of the State of New York, without
giving effect to principles of conflicts of laws.  Each of the parties
hereto irrevocably submits to the exclusive jurisdiction of the courts of the
State of New York and the United States District Court for the Southern District
of New York, in each case sitting in the Borough of Manhattan, City of New York,
for the purpose of any suit, action, proceeding or judgment relating to or
arising out of this letter agreement.  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 letter 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. 

     

    (n)          Notwithstanding
anything contained herein, (i) the Company may include in any Registration
Statement hereunder such number of registrable securities that it is required to
register under that certain Investors’ Rights Agreement dated November 27, 2007
by and among OncoVista, Inc. and OSI Pharmaceuticals, Inc, and (ii) the Holder’s
registration rights set forth in this letter agreement are subordinate to the
registration rights granted to (x) the holders pursuant to that Registration
Rights Letter (the “Registration Rights Letter”)
by and among OncoVista, Inc. and purchasers of units in the OncoVista, Inc.
private placement that closed on August 15, 2007, and (y) the Maxim Group LLC
(“Maxim”) pursuant to
that certain Letter Agreement (the “Maxim Letter”) dated July 11,
2007 by and among OncoVista, Inc. and Maxim, with respect to their registrable
securities. In the event any of the terms of this letter agreement are deemed to
conflict with the terms of the Registration Rights Letter or the Maxim Letter,
the terms of the Registration Rights Letter and the Maxim Letter shall
govern.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (o)          Specific
Performance.  The parties acknowledge that the Holders’ damages
at law would be an inadequate remedy for the breach or non-performance of any
provision of this letter by the Company, and agree in the event of such breach
that the aggrieved party obtain temporary and permanent injunctive relief
restraining the Company from such breach or compelling specific performance of
such provision, and, to the extent permissible under applicable statutes and
rules of procedure, a temporary injunction may be granted immediately upon the
commencement of any such suit without proof of any actual
harm.  Nothing contained in this letter shall be construed as
prohibiting any party from pursing other remedies available at law or equity for
such breach or non-performance.

    

    [REMAINDER
OF THIS PAGE INTENTIONALLY BLANK;

    SIGNATURES
FOLLOW]

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    Please
execute this letter agreement where indicated below to express your agreement
with the terms hereof.

    

    
      
        
          	
                  ONCOVISTA
      INNOVATIVE THERAPIES, INC.

                
	 
      	 
      
	
                  By:

                	
                   

                
	 
      	
                  Alex
      L. Weis, Ph.D.

                
	 
      	
                  Chief
      Executive Officer

                

        

      

    

    

    ACCEPTED
AND AGREED TO AS OF

    THE
DATE FIRST ABOVE-WRITTEN:

    

    WEXFORD
SPECTRUM TRADING LIMITED

    

    
      
        
          	
                  By:

                	
                   

                
	 
      	
                  Name:
      Arthur Amron

                
	 
      	
                  Titles:
      Vice President and Assistant
Secretary

                

        

      

    

    

    
      
        
          	
                   

                
	
                  John
      Wenner

                

        

      

    

    

    GLOBAL
PHARMACAL, INC.

    

    
      
        
          	
                  By:

                	
                   

                
	 
      	
                  Name:

                
	 
      	
                  Titles:

                

        

      

    

    

    BIOMARKERS,
LLC

    

    
      
        
          	
                  By:

                	
                   

                
	 
      	
                  Name:

                
	 
      	
                  Titles:

                

        

      

    

    
       

      Signature
Page – Registration Rights AgreementExecution
Version

     

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

    

    THE
TRANSFER OF THIS WARRANT IS RESTRICTED AS DESCRIBED HEREIN.

    

    ONCOVISTA
INNOVATIVE THERAPIES, INC.

    

    Warrants
for the Purchase

    of

    Securities

    

    
      	
              No.
      __________

            	
              January
      15, 2009

            

    

    

    THIS CERTIFIES that, for
consideration, the receipt and sufficiency receipt and sufficiency are hereby
acknowledged, and other value received, ________________ (the “Holder”) is entitled to
purchase from ONCOVISTA
INNOVATIVE THERAPIES, a Nevada corporation (the “Company”), upon the terms and
conditions set forth herein, at any time or from time to time after the Initial
Exercise Date (as herein after defined) until 5:00 P.M. New York City local time
on the fifth anniversary of the date hereof (the “Exercise Period”), up to an
amount or number of the securities, which shall be identical with respect to
terms, rights and types of securities as those, (“Warrant Securities”) offered
in the first Qualified Financing (as hereinafter defined) consummated by the
Company following the date hereof equal to $________ (determined based on the
offering price in such Qualified Financing) at a price per security equal to the
product of (A) and (B), where (A) equals the offering price per security in the
next Qualified Financing consummated by the Company and where (B) equals 0.90;
provided, however, that
upon the occurrence of any of the events specified in Section 6 or 7 hereof, the
rights granted by this Warrant, including the exercise price and the securities
to be received upon such exercise, shall be adjusted as therein
specified.  The term “Exercise Price” shall mean,
depending on the context, the initial exercise price (as set forth above) or the
adjusted exercise price per share.  The term “Qualified Financing” shall
mean one or more financing, whether in the form of equity securities,
Indebtedness, derivative securities, or otherwise, the aggregate gross proceeds
of which equal or exceed $5,000,000.  In the event that no Qualified
Financing shall be consummated by the Company prior to the expiration of the
Exercise Period, this Warrant shall be exercisable for up to _________ shares of
common stock, par value $0.001 per share (the “Common Stock”) at an exercise
price of $0.50 per share (subject to the aforementioned adjustments specified
herein).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    This
Warrant is the warrant or one of the warrants (collectively, including any
warrant issued upon the exercise or transfer of any such warrants in whole or in
part, the “Warrants”)
referenced in the Secured Promissory Note, dated January 15, 2009, by the
Company in favor of the Holders named therein.  As used herein, the
term “this Warrant”
shall mean and include this Warrant and any Warrant or Warrants hereafter issued
as a consequence of the exercise or transfer of this Warrant in whole or in
part.  Each Warrant Security or share of Common Stock issuable upon
the exercise hereof shall be hereinafter referred to as a “Warrant Share”.

     

    1.          
  (a)          This
Warrant may be exercised during the Exercise Period, either in whole or in part,
by delivery to the Company at its office at, OncoVista Innovative Therapies,
Inc., 14785 Omicron Drive, Suite 104, San Antonio, Texas 78245, or at such other
place as is designated in writing by the Company, of:

     

    
      (i)
this
Warrant;

    

     

    (ii)          a
completed Election to Purchase (for cash), in the form set forth in Exhibit I,
executed by the Holder exercising all or part of the purchase rights represented
by this Warrant; and

     

    (iii)         (A)
a certified or bank cashier's check payable to the order of the Company, or (B)
a wire transfer of funds to an account designated by the Company, in an amount
equal to the product of the Exercise Price and the number of Shares for which
this Warrant is being exercised.

     

    (b)          Notwithstanding
anything herein to the contrary, the Holder may, in its sole discretion,
exercise this Warrant by delivery to the Company at this offices at the address
above, in lieu of making a cash payment that would otherwise be payable in
connection with such exercise (as “Cashless Exercise”),
of:

     

    (i)           this
Warrant; and

     

    (ii)          a
completed Election to Purchase (cashless), in the form set forth in Exhibit II,
executed by the Holder exercising all or part of the exchange rights represented
by this Warrant.

     

    Upon
presentation and delivery in connection with a Cashless Exercise, the number
Warrant Shares subject to this Warrant shall be reduced by the number of Warrant
Shares specified on the Election to Purchase (cashless) form, and in exchange
for such reduction the Holder shall receive the number of Warrant Shares, as the
case may be, specified on the Election to Purchase (cashless) form (up to the
total number of Warrant Shares which are subject to this Warrant) multiplied by
a fraction, the numerator of which shall be the excess of the then Current
Market Price (as defined below) per Warrant Share over the Exercise Price, and
the denominator of which shall be the then Current Market Price per Warrant
Share.

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    2.          
 Upon each exercise of the Holder’s rights to purchase Warrant Shares, the
Holder or its designee shall be deemed to be the holder of record of the Warrant
Shares, notwithstanding that the transfer books of the Company shall then be
closed or certificates representing the Warrant Shares with respect to which
this Warrant was exercised shall not then have been actually delivered to the
Holder or its designee.  As soon as practicable after each such
exercise of this Warrant (but not later than three (3) business days following
delivery to the Company of the Election to Purchase and other deliverable
pursuant to Section 1(a) or 1(b), as applicable) the Company shall issue and
deliver to the Holder or its designee a certificate or certificates representing
the Warrant Shares issuable upon such exercise, registered in the name of the
Holder or its designee. The certificates so delivered shall be in such
denominations as may be requested by the Holder.   If this
Warrant should be exercised in part only, the Company shall, upon surrender of
this Warrant for cancellation, execute and deliver a Warrant evidencing the
right of the Holder to purchase the balance of the aggregate number of Warrant
Shares purchasable hereunder as to which this Warrant has not been exercised or
assigned.

     

    3.          
 Any Warrants issued upon the transfer or exercise in part of this Warrant
shall be numbered and shall be registered in a warrant register (the “Warrant Register”) as they
are issued. The Company shall be entitled to treat the registered holder of any
Warrant on the Warrant Register as the owner in fact thereof for all purposes,
and shall not be bound to recognize any equitable or other claim to, or interest
in, such Warrant on the part of any other person, and shall not be liable for
any registration of transfer of Warrants which are registered or to be
registered in the name of a fiduciary or the nominee of a fiduciary unless made
with the actual knowledge that a fiduciary or nominee is committing a breach of
trust in requesting such registration or transfer, or with the knowledge of such
facts that its participation therein amounts to bad faith.  This
Warrant shall be transferable on the books of the Company only upon delivery
thereof duly endorsed by the Holder or by his duly authorized attorney or
representative, or accompanied by proper evidence of succession, assignment, or
authority to transfer.  In all cases of transfer by an attorney,
executor, administrator, guardian, or other legal representative, duly
authenticated evidence of his, her, or its authority shall be
produced.  Upon any registration of transfer, the Company shall
deliver a new Warrant or Warrants to the person entitled
thereto.  This Warrant may be exchanged, at the option of the Holder
thereof, for another Warrant, or other Warrants of different denominations, of
like tenor and representing in the aggregate the right to purchase a like number
of Warrant Shares (or portions thereof), upon surrender to the Company or its
duly authorized agent.  Notwithstanding the foregoing, the Company
shall have no obligation to cause Warrants to be transferred on its books to any
person if, in the opinion of counsel to the Company, such transfer does not
comply with the provisions of the Securities Act and the rules and regulations
thereunder.

    
      
         

      

      
        - 3
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    4.         
  (a)           The
Company shall at all times reserve and keep available out of its authorized, but
unissued, securities issued in the next Qualified Financing or shares of Common
Stock, solely for the purpose of providing for the exercise of the Warrants,
such number of Warrant Securities and/or shares of Common Stock as shall, from
time to time, be sufficient therefor.  The Company represents that all
Warrant Securities and/or shares of Common Stock issuable upon exercise of this
Warrant are duly authorized and, upon receipt by the Company of the full payment
for such Warrant Shares, will be validly issued, fully paid, and nonassessable
and free from all taxes, liens and charge in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such
issue), without any personal liability attaching to the ownership thereof and
will not be issued in violation of any preemptive or similar rights of
stockholders.  The Company further covenants that its issuance of this
Warrant shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights
under this Warrant.  The Company will take all such reasonable action
as may be necessary to assure that such Warrant Share may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the trading market upon which the Warrant Securities or Common
Stock may be listed.

     

    (b)          The
transfer agent for the Warrant Securities and the Common Stock and every
subsequent transfer agent for any of the Company’s securities issuable upon the
exercise of this Warrant shall be irrevocably authorized and directed at all
times to reserve such number of authorized securities as shall be required for
such purpose.  The Company shall keep a copy of this Warrant on file
with the transfer agent for the Warrant Securities or the Common Stock and with
every subsequent transfer agent for shares of the Company’s securities issuable
upon exercise of this Warrant.  The Company shall supply such transfer
agent with duly executed certificates representing the Warrant Securities and
the Common Stock or other securities for such purpose.

     

    (c)          The
Company shall not by any action including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issues or sale of securities or any other
voluntary action, avoid or seek to avoid the observance of performance of any of
the terms of this Warrant; but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of the Holder against
impairment.  Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any shares of Warrant Securities
or Common Stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, and (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Securities or Common Stock upon the exercise of this
Warrant.

     

    5.           The
Company will (i) obtain and keep effective all permits, consents and approvals
of Federal or state governmental agencies and authorities and make all filings
under Federal and state securities laws, that are required in connection with
the issuance and delivery of this Warrant, the exercise of this Warrant, and the
issuance and delivery of the Warrant Shares issued upon exercise of this
Warrant, and (ii) is the Company hereafter lists its Common Stock on any
national securities, including NASDAQ, use its commercially reasonable efforts
to keep the Warrant Shares authorized for listing on such exchange upon notice
of issuance.

     

    
      
         

      

      
        - 4
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    6.           
(a)           The
Exercise Price for the Warrants in effect from time to time, and the number of
shares of Common Stock issuable upon exercise of the Warrants, shall be subject
to adjustment, as follows:

     

    In the
event that the Company shall at any time after the date hereof (A) declare a
dividend or otherwise make a distribution or distributions on the outstanding
Warrant Securities (following the initial consummation of the Qualified
Financing), Common Stock or other equity or equity equivalent securities payable
in shares of its capital stock, (B) subdivide the outstanding Warrant Securities
(following the initial consummation of the Qualified Financing) or Common Stock,
(C) combine the outstanding (following the initial consummation of the Qualified
Financing) Common Stock into a smaller number of securities or shares (as
applicable), or (D) issue any shares of its capital stock by reclassification of
the outstanding Warrant Securities or Common Stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then, in each case, the Exercise Price
per Warrant Share in effect at the time of the record date for the determination
of stockholders entitled to receive such dividend or distribution or of the
effective date of such subdivision, combination, or reclassification shall be
adjusted so that it shall equal the price determined by multiplying such
Exercise Price by a fraction, the numerator of which shall be the number of
shares of Warrant Securities or Common Stock outstanding (as applicable)
immediately prior to such action, and the denominator of which shall be the
number of Warrant Securities or shares of Common Stock (as applicable)
outstanding after giving effect to such action.  Such adjustment shall
be made successively whenever any event listed above shall occur and shall
become effective at the close of business on such record date or at the close of
business on the date immediately preceding such effective date, as
applicable.  Simultaneous with any such adjustment, the number of
Warrant Shares issuable upon exercise of this Warrant shall be adjusted to equal
the quotient of (A) divided by (B), where (A) equals the product of the number
of Warrant Shares issuable upon the exercise of this Warrant immediately prior
thereto multiplied by the Exercise Price per Warrant Share in effect immediately
prior thereto, and where (B) equals the Exercise Price, as
adjusted.

    
      
         

      

      
        - 5
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    (b)           The
Company shall not be required to issue fractions of Warrant Securities or shares
of Common Stock or other capital stock of the Company upon the exercise of this
Warrant.  If any fraction of a share of capital stock would be
issuable on the exercise of this Warrant (or specified portions thereof), the
Company shall purchase such fraction for an amount in cash equal to the same
fraction of the Current Market Price of such Warrant Securities or share of
Common Stock on the date of exercise of this Warrant.  For purposes of
this Warrant, the “Current
Market Price” per Warrant Security or share of Common Stock on any date
shall be deemed to be the closing price per Warrant Security or share of Common
Stock on the trading day immediately preceding the date in question on the
principal national securities exchange (including, for purposes hereof, the
Nasdaq National Market) upon which the Warrant Securities or Common Stock (as
applicable) is listed or admitted to trading. Such closing price shall be the
last reported sales price regular way or, in case no such reported sale takes
place on such day, the closing bid price regular way, in either case on the
principal national securities exchange  (including, for purposes
hereof, the Nasdaq National Market) on which the Warrant Securities or Common
Stock (as applicable) is listed or admitted to trading or, if the Warrant
Securities or Common Stock (as applicable) is not listed or admitted to trading
on any national securities exchange, the highest reported bid price for the
Warrant Securities or Common Stock (as applicable) as furnished by the National
Association of Securities Dealers, Inc. through the Nasdaq SmallCap Market or a
similar organization if the Nasdaq SmallCap Market is no longer reporting such
information.  If, on any such date, any Warrant Securities or the
Common Stock is not listed or admitted to trading on any national securities
exchange and is not quoted on the Nasdaq SmallCap Market or any similar
organization, the Current Market Price shall be deemed to be the highest
reported bid price for the Warrant Securities or Common Stock (as applicable) on
the OTC Bulletin Board.  If, on any such date, the Warrant Securities
or Common Stock (as applicable) is not listed or admitted to trading on any
national securities exchange, is not quoted on the Nasdaq SmallCap Market, the
OTC Bulletin Board, or any similar organization, the Current Market Price shall
be deemed to be the highest reported bid price for the Warrant Securities or
Common Stock (as applicable) in the “pink sheets”, as reported by the National
Quotations Bureau.  If, on any such date, the Warrant Securities or
the Common Stock (as applicable) is not listed or admitted to trading on any
national securities exchange and is not quoted on the Nasdaq SmallCap Market,
the OTC Bulletin Board, the pink sheets, or any similar organization, the
Current Market Price shall be deemed to be the Current Market Price, determined
as set forth above, on the last date upon which such price is
available.  In the event that no such price is available, the Current
Market Price shall be the fair value of a Warrant Security or a share of Common
Stock (as applicable) on such date, as determined in good faith by the Board of
Directors of the Company and the Holder; provided, however, if no such agreement
is reached within thirty (30) days of the date on which the event for which the
Current Market Price is required to be determined occurs, then the Current
Market Price shall be determined as follows: the Company and the Holder shall
each designate promptly in a written notice to the other its determination of
the fair market value of such Common Stock as of the applicable reference date,
and the Current Market Price of such Common Stock as of the applicable reference
date shall then be determined by a nationally recognized independent appraiser
(the “Independent Financial
Expert”) selected by the Holder from a group of three appraisers chosen
by the Company (with whom the Company does not have an existing business
relationship) and the Holder assuming an arm’s-length private sale between a
willing buyer and a willing seller, neither acting under
compulsion.  The determination by the Independent Financial Expert of
the Current Market Price shall be final and binding on the Company and the
Holder.  The costs and expenses of any such Independent Financial
Expert making such valuation shall be paid by the Company, except that such
expenses shall be borne solely by the Holder to the extent that the Independent
Financial Expert concludes that the valuation of such Common Stock made by the
Board of Directors of the Company is within five percent (5%) of the Current
Market Price.

     

    (c)           All
calculations under this Section 6 shall be made to the nearest cent or to the
nearest one-hundredth of a share, as the case may be.

     

    (d)           In
any case in which this Section 6 shall require that an adjustment in the number
of Warrant Shares be made effective as of a record date for a specified event,
the Company may elect to defer, until the occurrence of such event, issuing to
the Holder, if the Holder exercised this Warrant after such record date, the
Warrant Shares, if any, issuable upon such exercise over and above the number of
Warrant Shares issuable upon such exercise on the basis of the number of Warrant
Securities or shares of Common Stock outstanding or in effect prior to such
adjustment; provided, however, that the Company shall deliver to the Holder a
due bill or other appropriate instrument evidencing the Holder's right to
receive such additional Warrant Securities or shares of Common Stock upon the
occurrence of the event requiring such adjustment.

    
      
         

      

      
        - 6
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    (e)           Whenever
there shall be an adjustment as provided in this Section 6, the Company shall
within fifteen (15) days thereafter cause written notice thereof to be sent by
registered or certified mail, postage prepaid, to the Holder, at its address as
it shall appear in the Warrant Register, which notice shall be accompanied by an
officer's certificate setting forth the number of Warrant Shares issuable and
the Exercise Price thereof after such adjustment and setting forth a statement
of the facts in detail requiring such adjustment and the computation
thereof.

     

    (f)           No
adjustment in the Exercise Price per Warrant Share shall be required if such
adjustment is less than $.01; provided, however, that any
adjustments which by reason of this Section 6 are not required to be made shall
be carried forward and taken into account in any subsequent
adjustment.

     

    7.           
(a)           In case of
any capital reorganization, other than in the cases referred to in Section 6(a)
hereof, or the consolidation or merger of the Company with or into another
corporation (other than a merger or consolidation in which the Company is the
continuing corporation and which does not result in any reclassification of the
outstanding Warrant Shares or the conversion of such outstanding Warrant Shares
into shares of other stock or other securities or property), or in the case of
any sale, lease, or conveyance to another corporation of the property and assets
of any nature of the Company as an entirety or substantially as an entirety or
the case of any statutory exchange of securities with another corporation (such
actions being hereinafter collectively referred to as “Reorganizations”), there
shall thereafter be deliverable upon exercise of this Warrant (in lieu of the
number of Warrant Shares theretofore deliverable) the number of shares of stock
or other securities or property to which a holder of the respective number of
Warrant Shares which would otherwise have been deliverable upon the exercise of
this Warrant would have been entitled upon such Reorganization if this Warrant
had been exercised in full immediately prior to such
Reorganization.  In case of any Reorganization, appropriate
adjustments, shall be made in the application of the provisions herein,
including, without limitation, provisions for adjustments o the Exercise Price
and the number of Warrant Shares, set forth with respect to the rights and
interests of the Holder so that the provisions set forth herein shall thereafter
be applicable, as nearly as possible, in relation to any shares or other
property thereafter deliverable upon exercise of this Warrant.  Any
such adjustment shall be made by, and set forth in, a supplemental agreement
between the Company, or any successor thereto, and the Holder, with respect to
this Warrant, and shall for all purposes hereof conclusively be deemed to be an
appropriate adjustment.  The Company shall not effect any such
Reorganization unless, upon or prior to the consummation thereof, the successor
corporation, or, if the Company shall be the surviving corporation in any such
Reorganization and is not the issuer of the shares of stock or other securities
or property to be delivered to holders of Warrant Shares outstanding at the
effective time thereof, then such issuer, shall assume by written instrument the
obligation to deliver to the Holder such shares of stock, securities, cash, or
other property as such holder shall be entitled to purchase in accordance with
the foregoing provisions.

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

    

     

    (b)           In
case of any reclassification or change of the Warrant Shares issuable upon
exercise of this Warrant (other than a change in par value or from a specified
par value to no par value, or as a result of a subdivision or combination, but
including any change in the shares into two or more classes or series of
shares), or in case of any consolidation or merger of another corporation into
the Company in which the Company is the continuing corporation and in which
there is a reclassification or change (including a change to the right to
receive cash or other property) of the Warrant Shares (other than a change in
par value, or from no par value to a specified par value, or as a result of a
subdivision or combination, but including any change in the shares into two or
more classes or series of shares), the Holder or holders of this Warrant shall
have the right thereafter to receive upon exercise of this Warrant solely the
kind and amount of shares of stock and other securities, property, cash, or any
combination thereof  receivable upon such reclassification, change,
consolidation, or merger by a holder of the number of Warrant Shares for which
this Warrant might have been exercised immediately prior to such
reclassification, change, consolidation, or merger. Thereafter, appropriate
provision shall be made for adjustments which shall be as nearly equivalent as
practicable to the adjustments in Section 6.

     

    (c)           The
above provisions of this Section 7 shall similarly apply to successive
reclassifications and changes of shares of Common Stock and to successive
consolidations, mergers, sales, leases, or conveyances.

     

    (d)           In
case any event shall occur as to which the other provisions of Section 6(a),
7(a) or 7(b) are not strictly applicable but as to which the failure to make any
adjustment would not fairly protect the purchase rights represented by this
Warrant in accordance with the essential intent and principals of the
adjustments set forth in this Section 7 then, in each such case, the Board of
Directors shall in good faith determine the adjustment, if any, on a basis
consistent with the essential intent and principals established herein,
necessary to preserve the purchase rights represented by the
Warrant.  Upon such determination, the Company will promptly mail a
copy thereof to the Holder of this Warrant and shall make the adjustments
described therein.

     

    8.         
  In case at any time the Company shall propose:

     

    (a)           to
pay any dividend or make any distribution on Warrant Shares in shares of capital
stock of the Company or make any other distribution (other than regularly
scheduled cash dividends which are not in a greater amount per share than the
most recent such cash dividend) to all holders of Warrant Shares;
or

     

    (b)           to
issue any rights, warrants, or other securities to all holders of Warrant Shares
entitling them to purchase any additional shares of capital stock of the Company
or any other rights, warrants, or other securities; or

     

    (c)           to
effect any reclassification or change of outstanding Warrant Securities or any
consolidation, merger, sale, lease, or conveyance of property, as described in
Section 87 or

     

    (d)           to
effect any liquidation, dissolution, or winding-up of the Company;
or

    
      
         

      

      
        - 8
-

        
          

        

      

      
         

      

    

     

    (e)           to
take any other action that would cause an adjustment to the Exercise Price per
Warrant Share;

     

    then, and
in any one or more of such cases, the Company shall give written notice thereof
by registered or certified mail, postage prepaid, to the Holder at the Holder's
address as it shall appear in the Warrant Register, mailed at least fifteen (15)
days prior to (i) the date as of which the holders of record of shares of Common
Stock to be entitled to receive any such dividend, distribution, rights,
warrants, or other securities are to be determined, (ii) the date on which any
such reclassification, change of outstanding Warrant Shares, consolidation,
merger, sale, lease, conveyance of property, liquidation, dissolution, or
winding-up is expected to become effective and the date as of which it is
expected that holders of record of Warrant Shares shall be entitled to exchange
their shares for securities or other property, if any, deliverable upon such
reclassification, change of outstanding shares, consolidation, merger, sale,
lease, conveyance of property, liquidation, dissolution, or winding-up, or (iii)
the date of such action which would require an adjustment to the Exercise Price
per Warrant Share.

     

    9.           
The issuance of any shares or other securities upon the exercise of this Warrant
and the issuance and delivery of certificates or other instruments representing
such shares or other securities shall be made without charge to the Holder for
any tax or other charge in respect of such issuance, including but not limited
to all federal and state taxes (other than taxes on income of the Holder),
documentary taxes, stamp taxes, if any, and other governmental charges that may
be imposed in connection therewith.  The Company shall not, however,
be required to pay any tax which may be payable in respect of any transfer
involved in the issue and delivery of any certificate in a name other than that
of the Holder, and the Company shall not be required to issue or deliver any
such certificate unless and until the person or persons requesting the issue
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been
paid.

     

    10.           The
Warrant Shares issued on exercise of the Warrants shall be subject to a stop
transfer order and the certificate or certificates representing the Warrant
Shares shall bear the following legend:

     

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY
NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE DISPOSED OF UNLESS (1) A
REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN
OPINION OF COUNSEL TO THE HOLDER OF THIS WARRANT OR SUCH SECURITIES, WHICH
COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT THIS
WARRANT OR SUCH SECURITIES, AS APPLICABLE, MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED, OR OTHERWISE DISPOSED OF IN THE MANNER CONTEMPLATED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE
SECURITIES LAWS.

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

     

    11.           Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction,
or mutilation of any Warrant (and upon surrender of any Warrant if mutilated),
and upon receipt by the Company of reasonably satisfactory indemnification, the
Company shall execute and deliver to the Holder thereof a new Warrant of like
date, tenor, and denomination.

     

    12.           The
Holder of any Warrant shall not have, solely on account of such status, any
rights of a stockholder of the Company, either at law or in equity, or to any
notice of meetings of stockholders or of any other proceedings of the Company,
except as provided in this Warrant.

     

    13.           All
notices under this Agreement must be in writing and addressed, if to the
Company, to its manager.  Any notice or other communication in
connection with this Agreement shall be deemed to have been given (i) if
personally delivered to a party, when so delivered, (ii) (A) if by certified
mail, three business days after mailing or (B) if by Federal Express or other
recognized next day carrier timely posted for next business day delivery, the
next business day following such timely posting, to the address of such party
set forth in the preamble to this Agreement (or to such other address as the
party shall have furnished in writing in accordance with the provisions of this
Section 13), or (iii) if by facsimile, once transmitted (provided that the
appropriate answer back or telephonic confirmation is received), if to the
Company at OncoVista Innovative Therapies, Inc., 14785 Omicron Drive, Suite 104,
San Antonio, Texas 78245, and if to the Holder, at the address set forth in the
Warrant Register.  Either party may change the address or facsimile
number to which notices or other communications hereunder are to be delivered by
giving the other party notice in the manner set forth.

     

    14.           This
Warrant shall be construed in accordance with the laws of the State of New York
applicable to contracts made and performed within such State, without regard to
principles of conflicts of law.   The Holder and the Company
irrevocably consent to the jurisdiction of the courts of the State of New York
and of any federal court, in each case located in the City of New York, New
York, in connection with any action or proceeding arising out of, or relating
to, this Warrant, any document or instrument delivered pursuant to, in
connection with, or simultaneously with, this Warrant, or a breach of this
Warrant or any such document or instrument. In any such action or proceeding,
the Holder or the Company, as applicable, waives personal service of any
summons, complaint, or other process and agrees that service thereof may be made
in accordance with Section 13 of this Warrant.  Within 30 days after
such service, or such other time as may be mutually agreed upon in writing by
the attorneys for the parties to such action or proceeding, the Company shall
appear to answer such summons, complaint, or other process.  Should
the Company so served fail to appear or answer within such 30-day period or such
extended period, as the case may be, the Company shall be deemed in default and
judgment may be entered against the Company for the amount as demanded in any
summons, complaint, or other process so served.  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 such suit, action or proceeding brought in
any such court has been brought in an inconvenient forum.

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

    

     

    15.           This
Warrant may not be amended or modified in any manner nor may any of its
provisions be waived except by written amendment executed by the Company and the
Holder.  A waiver, modification or amendment by a party shall only be
effective if (a) it is in writing and signed by the parties, (b) it specifically
refers to this Warrant and (c) it specifically states that the party, as the
case may be, is waiving, modifying or amending its rights
hereunder.  Any such amendment, modification or waiver shall be
effective only in the specific instance and for the specific purpose for which
it was given.

     

    16.           The
covenants and provisions of this Warrant shall inure to the benefit of and be
binding upon the permitted successors and assigns of the parties.

     

    17.           The
descriptive headings of the several paragraphs of this Warrant are inserted for
purposes of reference only, and shall not affect the meaning or construction of
any of the provisions of this Warrant.

     

    18.           If
any one or more of the provisions contained in this Warrant is for any reason
(i) objected to, contested or challenged by any court, government authority,
agency, department, commission or instrumentality of the United States or any
state or political subdivision thereof, or any securities industry
self-regulatory organization (collectively, “Governmental Authority”), or (ii)
held to be invalid, illegal or unenforceable in any respect, the Company and the
Holder agree to negotiate in good faith to modify such objected to, contested,
challenged, invalid, illegal or unenforceable provision. It is the intention of
the Company and the Holder that there shall be substituted for such objected to,
contested, challenged, invalid, illegal or unenforceable provision a provision
as similar to such provision as may be possible and yet be acceptable to any
objecting Governmental Authority and be valid, legal and enforceable. Further,
should any provisions of this Warrant ever be reformed or rewritten by a
judicial body, those provisions as rewritten will be binding, but only in that
jurisdiction, on the Holder and the Company as if contained in the original
Warrant.  The invalidity, illegality or unenforceability of any one or
more provisions of this Warrant will not affect the validity and enforceability
of any other provisions of this Warrant.

     

    19.           This
Warrant may be executed in any number of counterparts, including by facsimile,
and each of such counterparts shall for all purposes be deemed to be an
original, and such counterparts shall together constitute but one and the same
instrument.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Company has executed this Warrant as of the date first above
written.

    

    Dated:
__________________

    

    
      
        
          
            	
                    ONCOVISTA
      INNOVATIVE THERAPIES, INC.

                  
	 
      
	
                    By:

                  	 
      
	 
      	
                    Name:
      Alexander L. Weis, Ph.D.

                  
	 
      	
                    Title:
      Chairman of the Board of

                  
	 
      	
                    Directors,
      President, and Chief

                  
	 
      	
                    Executive
      Officer

                  

          

        

      

    

    

    [Seal]

     

    _____________________________

    Secretary

    Signature
Page – Warrant

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    FORM
OF ASSIGNMENT

    

    (To be
executed by the registered holder if such holder desires to transfer the
attached Warrant.)

     

    FOR VALUE
RECEIVED, ______________________ hereby sells, assigns, and transfers unto
_________________ a Warrant to purchase __________ Warrant Shares (as defined
herein) of OncoVista Innovative Therapies, Inc., a Nevada corporation, and does
hereby irrevocably constitute and appoint ____________________________, attorney
to transfer such Warrant on the books of the Company, with full power of
substitution.

    

    Dated:
_________________

    

    Signature_______________________

    

    NOTICE

     

    The
signature on the foregoing Assignment must correspond to the name as written
upon the face of this Warrant in every particular, without alteration or
enlargement or any change whatsoever.

    
      
         

      

      
        - 13
-

        
          

        

      

      
         

      

    

    EXHIBIT
I

    ELECTION
TO EXERCISE

    

    To:          OncoVista
Innovative Therapies, Inc.

    

    The
undersigned hereby exercises its rights to purchase ___________ Warrant Shares
(as defined herein) of OncoVista Innovative Therapies, Inc., a Nevada
corporation (the “Company”), covered by the
within Warrant.  The undersigned hereby elects to exercise such rights
by tendering herewith payment herewith in the amount of $____________ in
accordance with the terms thereof,  and requests that certificates for
the securities constituting such Warrant Shares be issued in the name of, and
delivered to:

    

    (Print
Name, Address, and Social Security

    or Tax
Identification Number)

    

    and, if
such number of shares of Common Stock shall not constitute all such shares of
Common Stock covered by the within Warrant, that a new Warrant for the balance
of the shares of Common Stock covered by the within Warrant shall be registered
in the name of, and delivered to, the undersigned at the address stated
below.

    

    
      
        	
                Dated:_____________________

              	 
      	
                Name___________________________________________

              
	 
      	 
      	
                (Print)

              
	
                Address:

              	 
      	 
      
	 
      	 
      	   
      
	 
      	 
      	
                (Signature)

              

      

    

    
      
         

      

      
        - 14
-

        
          

        

      

      
         

      

    

    
      EXHIBIT
II

    

    

    ELECTION
TO PURCHASE

     

    The
undersigned hereby irrevocably elects to exercise Warrants represented by this
Warrant and to purchase the shares of Common Stock or other securities issuable
upon the exercise of said Warrants, and requests that Certificates for such
shares be issued and delivered as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                ISSUE
      TO:

                              	 
      
	 
      	
                                (Name)

                              
	 
      	 
      
	 
      	 
      
	 
      	
                                (Address,
      Including Zip Code)

                              
	 
      	 
      
	 
      	 
      
	 
      	
                                (Social
      Security or Tax Identification Number)

                              
	 
      	 
      
	
                                DELIVER TO:

                              	 
      
	 
      	
                                (Name)

                              
	 
      	 
      
	 
      	 
      
	 
      	
                                (Address,
      Including Zip
Code)

                              

                      

                    

                  

                

              

            

          

        

      

    

    

     

    In
payment of the purchase price with respect to this Warrant exercised, the
undersigned hereby elects to pay such purchase price using a cashless
exercise.  If the number of Warrant Shares hereby exercised is fewer
than all the Warrant Shares represented by this Warrant, the undersigned
requests that a new Warrant representing the number of full Warrant Shares not
exercised to be issued and delivered as set forth below:

     

    
      
        
          	
                  Name
      of Holder or Assignee:

                	 
      
	 
      	
                  (Please
      Print)

                

        

      

    

    

    
      
        
          
            	
                    Address:

                  	 
      
	 
      	 
      
	 
      	 
      

          

        

      

    

    

    Signature:
___________________________________                        
DATED: _____________________, 200__

    (Signature
must conform in all respects to name of holder as specified on the fact of this
Warrant)

     

    
      
        
          
            	
                    Signature Guaranteed:

                  	 
      

          

        

      

    

    
      
         

      

      
        - 15
-

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