Document:

Unassociated Document

EXHIBIT
4.1

 

FORM
OF REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this "Agreement") is made
and entered into as of November 17, 2004, by and among The Bluebook
International Holding Company, a Delaware corporation (the "Company"), and
the investors signatory hereto (each a "Investor" and
collectively, the "Investors").

 

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

 

The
Company and the Investors hereby agree as follows: 

 

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

 

“Advice”
has the
meaning set forth in Section 6(d).

 

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

 

“Effectiveness
Date” means
(a) with respect to the initial Registration Statement required to be filed
under Section 2(a), the earlier of: (a)(i) the 120th day
following the Closing Date; provided, that,
if the Commission reviews and has written comments to the filed Registration
Statement that would require the filing of a pre-effective amendment thereto
with the Commission, then the Effectiveness Date under this clause (a)(i) shall
be the 150th day
following the Closing Date, and (ii) the fifth Trading Day following the date on
which the Company is notified by the Commission that the initial Registration
Statement will not be reviewed or is no longer subject to further review and
comments; and (b) with respect to any additional Registration Statements that
may be required pursuant to Section 2(b), the earlier of (i) the 120th day
following (x) if such Registration Statement is required because the Commission
shall have notified the Company in writing that certain Registrable Securities
were not eligible for inclusion on a previously filed Registration Statement,
the date or time on which the Commission shall indicate as being the first date
or time that such Registrable Securities may then be included in a Registration
Statement, or (y) if such Registration Statement is required for a reason other
than as described in (x) above, the date on which the Company first knows, or
reasonably should have known, that such additional Registration Statement(s) is
required; provided, that,
if the Commission reviews and has written comments to a Registration Statement
filed under Section 2(b) that would require the filing of a pre-effective
amendment thereto with the Commission, then the Effectiveness Date under this
clause (b)(i) for such Registration Statement shall be the 150th day
following the date that the Company first knows, or reasonably should have
known, that such additional Registration Statement is required under such
Section, and (ii) the fifth Trading Day following the date on which the Company
is notified by the Commission that such additional Registration Statement will
not be reviewed or is no longer subject to further review and comments; and (c)
with respect to a Registration Statement required to be filed under Section
2(c), the earlier of: (c)(i) the 90th day
following the date on which the Company becomes eligible to utilize Form S-3 to
register the resale of Common Stock; provided, that,
if the Commission reviews and has written comments to such filed Registration
Statement that would require the filing of a pre-effective amendment thereto
with the Commission, then the Effectiveness Date under this clause (c)(i) shall
be the 120th day
following the date on which the Company becomes eligible to utilize Form S-3 to
register the resale of Common Stock, and (ii) the fifth Trading Day following
the date on which the Company is notified by the Commission that the initial
Registration Statement will not be reviewed or is no longer subject to further
review and comments

 

"Effectiveness
Period" has the
meaning set forth in Section 2(a).

 

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

 

"Filing
Date" means
(a) with respect to the initial Registration Statement required to be filed
under Section 2(a), the 45th day
following the Closing Date; and (b) with respect to any additional Registration
Statements that may be required pursuant to Section 2(b), the 45th day
following (x) if such Registration Statement is required because the Commission
shall have notified the Company in writing that certain Registrable Securities
were not eligible for inclusion on a previously filed Registration Statement,
the date or time on which the Commission shall indicate as being the first date
or time that such Registrable Securities may then be included in a Registration
Statement, or (y) if such Registration Statement is required for a reason other
than as described in (x) above, the date on which the Company first knows, or
reasonably should have known, that such additional Registration Statement(s) is
required; and (c) with respect to a Registration Statement required to be filed
under Section 2(c), the 30th day
following the date on which the Company becomes eligible to utilize Form S-3 to
register the resale of Common Stock.

 

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

 

“Indemnified
Party” has the
meaning set forth in Section 5(c).

 

“Indemnifying
Party” has the
meaning set forth in Section 5(c).

 

“Losses” has the
meaning set forth in Section 5(a).

 

“New
York Courts” means
the state and federal courts sitting in the City of New York, Borough of
Manhattan.

 

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

 

2

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

 

“Registrable
Securities” means:
(i) the Shares, (ii) the Warrant Shares and (iii) any securities issued or
issuable upon any stock split, dividend or other distribution, recapitalization
or similar event, or any conversion price adjustment with respect to any of the
securities referenced in (i) or (ii) above.

 

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

 

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

 

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

 

"Rule
424" means
Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

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

 

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

 

“Warrants”
means the
Common Stock purchase warrants issued or issuable to the Investors pursuant to
the Purchase Agreement and to any placement agent identified in Schedule
3.1(u) to the
Purchase Agreement in accordance with the terms of the engagement or similar
agreements between the Company and any such agents.

 

"Warrant
Shares" means the
shares of Common Stock issued or issuable upon exercise of the
Warrants.

 

3

 

2.  Registration.

 

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

 

(b)  If for
any reason the Commission does not permit all of the Registrable Securities to
be included in the Registration Statement filed pursuant to Section 2(a), or for
any other reason any outstanding Registrable Securities are not then covered by
an effective Registration Statement, then the Company shall prepare and file by
the Filing Date for such Registration Statement, an additional Registration
Statement covering the resale of all Registrable Securities not already covered
by an existing and effective Registration Statement for an offering to be made
on a continuous basis pursuant to Rule 415, on Form SB-2 (or on such other form
appropriate for such purpose). Each such Registration Statement shall contain
(except if otherwise required pursuant to written comments received from the
Commission upon a review of such Registration Statement) the "Plan of
Distribution" attached hereto as Annex
A. The
Company shall cause each such Registration Statement to be declared effective
under the Securities Act as soon as possible but, in any event, by its
Effectiveness Date, and shall use its reasonable best efforts to keep such
Registration Statement continuously effective under the Securities Act during
the entire Effectiveness Period. 

 

(c)  Promptly
following any date on which the Company becomes eligible to use a registration
statement on Form S-3 to register the Registrable Securities for resale, the
Company shall file a registration statement on Form S-3 covering the Registrable
Securities (or a post-effective amendment on Form S-3 to the then effective
Registration Statement) and shall cause such Registration Statement to be
declared effective as soon as possible thereafter, but in any event prior to the
Effectiveness Date therefor. Such Registration Statement shall contain (except
if otherwise required pursuant to written comments received from the Commission
upon a review of such Registration Statement) the "Plan of Distribution"
attached hereto as Annex
A. The
Company shall cause such Registration Statement to be declared effective under
the Securities Act as soon as possible but, in any event, by its Effectiveness
Date, and shall use its reasonable best efforts to keep such Registration
Statement continuously effective under the Securities Act during the entire
Effectiveness Period. 

 

4

(d)   If:
(i) a Registration Statement is not filed on or prior to its Filing Date (if the
Company files a Registration Statement without affording the Holders the
opportunity to review and comment on the same as required by Section 3(a)
hereof, the Company shall not be deemed to have satisfied this clause (i)), or
(ii) a Registration Statement is not declared effective by the Commission on or
prior to its required Effectiveness Date, or (iii) after its Effective Date,
without regard for the reason thereunder or efforts therefore, such Registration
Statement ceases for any reason to be effective and available to the Holders as
to all Registrable Securities to which it is required to cover at any time prior
to the expiration of its Effectiveness Period for more than an aggregate of 30
Trading Days (which need not be consecutive) (any such failure or breach being
referred to as an "Event," and for
purposes of clauses (i) or (ii) the date on which such Event occurs, or for
purposes of clause (iii) the date which such 30 Trading Day-period is exceeded,
being referred to as "Event
Date"), then
in addition to any other rights the Holders may have hereunder or under
applicable law: (x) on each such Event Date the Company shall pay to each Holder
an amount in cash, as partial liquidated damages and not as a penalty, equal to
1.0% of the aggregate Investment Amount paid by such Holder for Shares pursuant
to the Purchase Agreement; and (y) on each monthly anniversary of each such
Event Date (if the applicable Event shall not have been cured by such date)
until the applicable Event is cured, the Company shall pay to each Holder an
amount in cash, as partial liquidated damages and not as a penalty, equal to
2.0% of the aggregate Investment Amount paid by such Holder for Shares pursuant
to the Purchase Agreement. The parties agree that the Company will not be liable
for liquidated damages under this Section in respect of the Warrants. If the
Company fails to pay any partial liquidated damages pursuant to this Section in
full within seven days after the date payable, the Company will pay interest
thereon at a rate of 10% per annum (or such lesser maximum amount that is
permitted to be paid by applicable law) to the Holder, accruing daily from the
date such partial liquidated damages are due until such amounts, plus all such
interest thereon, are paid in full. The partial liquidated damages pursuant to
the terms hereof shall apply on a daily pro-rata basis for any portion of a
month prior to the cure of an Event, except in the case of the first Event
Date.

 

(e)  Each
Holder agrees to furnish to the Company a completed Questionnaire in the form
attached to this Agreement as Annex
B (a
“Selling
Holder Questionnaire”). The
Company shall not be required to include the Registrable Securities of a Holder
in a Registration Statement and shall not be required to pay any liquidated or
other damages under Section 2(d) to any Holder who fails to furnish to the
Company a fully completed Selling Holder Questionnaire at least two Trading Days
prior to the Filing Date (subject to the requirements set forth in Section
3(a)).

 

3.  Registration
Procedures.

 

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

 

(a)  Not less
than four Trading Days prior to the filing of a Registration Statement or any
related Prospectus or any amendment or supplement thereto, the Company shall
furnish to each Holder copies of the “Selling Stockholders” section of such
document, the “Plan of Distribution” and any risk factor contained in such
document that addresses specifically this transaction or the Selling
Stockholders, as proposed to be filed which documents will be subject to the
review of such Holder. The Company shall not file a Registration Statement, any
Prospectus or any amendments or supplements thereto in which the “Selling
Stockholder” section thereof differs from the disclosure received from a Holder
in its Selling Holder Questionnaire (as amended or supplemented).

 

5

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

 

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

 

6

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

 

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

 

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

 

(g)  Prior to
any public offering of Registrable Securities, to register or qualify or
cooperate with the selling Holders in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of all jurisdictions within the United States, to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period
and to do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Registrable Securities covered by the
Registration Statements.

 

(h)  Cooperate
with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be delivered to a transferee
pursuant to the Registration Statements, which certificates shall be free, to
the extent permitted by the Purchase Agreement, of all restrictive legends, and
to enable such Registrable Securities to be in such denominations and registered
in such names as any such Holders may request.

 

(i)  Upon the
occurrence of any event contemplated by Section 3(c)(v), as promptly as
reasonably possible, prepare a supplement or amendment, including a
post-effective amendment, to the affected Registration Statements or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, no Registration Statement nor any Prospectus will
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading.

 

7

4.  Registration
Expenses. All
fees and expenses incident to the performance of or compliance with this
Agreement by the Company shall be borne by the Company whether or not any
Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with any
Trading Market on which the Common Stock is then listed for trading, and (B) in
compliance with applicable state securities or Blue Sky laws), (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance, if the Company so desires such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.

 

5.  Indemnification.

 

(a)  Indemnification
by the Company. The
Company shall, notwithstanding any termination of this Agreement, indemnify and
hold harmless each Holder, the officers, directors, agents, investment advisors,
partners, members and employees of each of them, each Person who controls any
such Holder (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) and the officers, directors, agents and employees of
each such controlling Person, to the fullest extent permitted by applicable law,
from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable costs of preparation and reasonable
attorneys' fees) and expenses (collectively, "Losses"), as
incurred, arising out of or relating to any untrue or alleged untrue statement
of a material fact contained in any Registration Statement, any Prospectus or
any form of prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading, except to the extent, but only to the extent, that (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder's proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose) or (2) in the case of an occurrence of
an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
of an outdated or defective Prospectus after the Company has notified such
Holder in writing that the Prospectus is outdated or defective and prior to the
receipt by such Holder of an Advice or an amended or supplemented Prospectus,
but only if and to the extent that following the receipt of the Advice or the
amended or supplemented Prospectus the misstatement or omission giving rise to
such Loss would have been corrected. The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding of which the
Company is aware in connection with the transactions contemplated by this
Agreement.

 

8

(b)  Indemnification
by Holders. Each
Holder shall, severally and not jointly, indemnify and hold harmless the
Company, its directors, officers, agents and employees, each Person who controls
the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of
such controlling Persons, to the fullest extent permitted by applicable law,
from and against all Losses, as incurred, arising solely out of or based solely
upon: (x) such Holder's failure to comply with the prospectus delivery
requirements of the Securities Act or (y) any untrue statement of a material
fact contained in any Registration Statement, any Prospectus, or any form of
prospectus, or in any amendment or supplement thereto, or arising solely out of
or based solely upon any omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading to the
extent, but only to the extent that, (1) such untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement (it
being understood that the Holder has approved Annex A hereto for this purpose),
such Prospectus or such form of Prospectus or in any amendment or supplement
thereto or (2) in the case of an occurrence of an event of the type specified in
Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of
an Advice or an amended or supplemented Prospectus, but only if and to the
extent that following the receipt of the Advice or the amended or supplemented
Prospectus the misstatement or omission giving rise to such Loss would have been
corrected. In no event shall the liability of any selling Holder hereunder be
greater in amount than the dollar amount of the net proceeds received by such
Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

 

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

 

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

 

9

All fees
and expenses of the Indemnified Party (including reasonable fees and expenses to
the extent incurred in connection with investigating or preparing to defend such
Proceeding in a manner not inconsistent with this Section) shall be paid to the
Indemnified Party, as incurred, within ten Trading Days of written notice
thereof to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification
hereunder; provided, that the Indemnifying Party may require such Indemnified
Party to undertake to reimburse all such fees and expenses to the extent it is
finally judicially determined that such Indemnified Party is not entitled to
indemnification hereunder).

 

(d)  Contribution. If a
claim for indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses
incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms.

 

The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

 

10

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

 

6.  Miscellaneous.

 

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

 

(b)  No
Piggyback on Registrations. Except
as and to the extent specified in Schedule 3.1(v) to the Purchase Agreement,
neither the Company nor any of its security holders (other than the Holders in
such capacity pursuant hereto) may include securities of the Company in a
Registration Statement other than the Registrable Securities.

 

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

 

(d)  Discontinued
Disposition. Each
Holder agrees by its acquisition of such Registrable Securities that, upon
receipt of a notice from the Company of the occurrence of any event of the kind
described in Section 3(c), such Holder will forthwith discontinue disposition of
such Registrable Securities under the Registration Statement until such Holder's
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement or until it is advised in writing (the "Advice") by the
Company that the use of the applicable Prospectus may be resumed, and, in either
case, has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement. The Company may provide appropriate stop orders to
enforce the provisions of this paragraph.

 

(e)  Piggy-Back
Registrations. If at
any time during the Effectiveness Period there is not an effective Registration
Statement covering all of the Registrable Securities and the Company shall
determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the
Securities Act of any of its equity securities, other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, then the Company
shall send to each Holder written notice of such determination and, if within
fifteen days after receipt of such notice, any such Holder shall so request in
writing, the Company shall include in such registration statement all or any
part of such Registrable Securities such holder requests to be registered,
subject to customary underwriter cutbacks applicable to all holders of
registration rights.

 

11

(f)  Amendments
and Waivers. The
provisions of this Agreement, including the provisions of this Section 6(f), may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in writing
and signed by the Company and the Holders of no less than a majority in interest
of the then outstanding Registrable Securities. 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 certain 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.

 

(g)  Notices. Any and
all notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or communication
is delivered via facsimile (provided the sender receives a machine-generated
confirmation of successful transmission) at the facsimile number specified in
this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b) the
next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in this Section on
a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on
any Trading Day, (c) the Trading Day following the date of mailing, if sent by
U.S. nationally recognized overnight courier service, or (d) upon actual receipt
by the party to whom such notice is required to be given. The address for such
notices and communications shall be as follows:

 

If to the
Company:     21098
Bake Parkway

Suite
100

Lake
Forest, CA 92630-2163

Attention:
Chief Financial Officer

Facsimile
No.: (949) 470-9420

With a
copy to:      Rein
Evans & Sestanovich LLP

1925
Century Park East, 16th Floor

Los
Angeles, CA 90067

Facsimile
No.: (310) 551-0238

Attn:
Douglas K. Simpson, Esq.

 

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

 

12

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

 

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

 

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

 

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

 

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

 

(j)  Governing
Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all Proceedings
concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement (whether brought against a party hereto or its
respective Affiliates, employees or agents) will be commenced in the New York
Courts. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any Proceeding, any claim that it is not personally subject to the jurisdiction
of any New York Court, or that such Proceeding has been commenced in an improper
or inconvenient forum. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such Proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner
permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any
Proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby. If either party shall commence a Proceeding to enforce any
provisions of this Agreement, then the prevailing party in such Proceeding shall
be reimbursed by the other party for its attorney’s fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
Proceeding.

 

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

 

13

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

 

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

 

(n)  Independent
Nature of Investors' Obligations and Rights. The
obligations of each Investor under this Agreement are several and not joint with
the obligations of each other Investor, and no Investor shall be responsible in
any way for the performance of the obligations of any other Investor under this
Agreement. 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 this Agreement or any other Transaction Document. Each Investor
acknowledges that no other Investor will be acting as agent of such Investor in
enforcing its rights under this Agreement. Each Investor shall be entitled to
independently protect and enforce its rights, including without limitation the
rights arising out of this Agreement, and it shall not be necessary for any
other 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 Registration Rights Agreement for the purpose of closing a
transaction with multiple Investors and not because it was required or requested
to do so by any Investor.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGES TO FOLLOW]

 

14

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

 

THE
BLUEBOOK INTERNATIONAL HOLDING COMPANY

By:_________________________________ 

Name:

Title:

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE
PAGES OF INVESTORS TO FOLLOW]

 

15

 

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

 

NAME
OF INVESTING ENTITY

By:
________________________________________  

Name:

Title:

ADDRESS
FOR NOTICE

c/o:
________________________________________ 

Street:
______________________________________ 

City/State/Zip:
________________________________ 

Attention:
___________________________________ 

Tel:_________________________________________

Fax:_________________________________________  

Email:________________________________________  

 

16

Annex
A

 

Plan of
Distribution

 

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

 

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

 

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

 

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

 

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

 

	·  	
      privately
      negotiated transactions;

 

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

 

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

 

	·  	
      a
      combination of any such methods of sale; and

 

	·  	
      any
      other method permitted pursuant to applicable
law.

 

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

 

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

 

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

 

17

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

 

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

 

The
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be "underwriters" within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Discounts, concessions, commissions and
similar selling expenses, if any, that can be attributed to the sale of
Securities will be paid by the Selling Stockholder and/or the purchasers. Each
Selling Stockholder has represented and warranted to the Company that it
acquired the securities subject to this registration statement in the ordinary
course of such Selling Stockholder’s business and, at the time of its purchase
of such securities such Selling Stockholder had no agreements or understandings,
directly or indirectly, with any person to distribute any such securities.

 

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

 

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

 

18

Annex
B

 

THE
BLUEBOOK HOLDING COMPANY

 

Selling
Securityholder Questionnaire

 

The
undersigned beneficial owner of common stock (the “Common
Stock”) of The
Bluebook International Holding Company (the “Company”)
understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”) a
Registration Statement for the registration and resale of the Registrable
Securities, in accordance with the terms of the Registration Rights Agreement,
dated as of ___, 2004 (the “Registration
Rights Agreement”), among
the Company and the Investors named therein. A copy of the Registration Rights
Agreement is available from the Company upon request at the address set forth
below. All capitalized terms used and not otherwise defined herein shall have
the meanings ascribed thereto in the Registration Rights Agreement.

 

The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

1. Name.

 

	
      
	
      (a)
	
      Full
      Legal Name of Selling
      Securityholder

_______________________________________________________________________________

 

	
      
	
      (b)
	
      Full
      Legal Name of Registered Holder (if not the same as (a) above) through
      which Registrable Securities Listed in Item 3 below are
      held:

_______________________________________________________________________________

 

	
      
	
      (c)
	
      Full
      Legal Name of Natural Control Person (which means a natural person who
      directly or indirectly alone or with others has power to vote or dispose
      of the securities covered by the
      questionnaire):

_______________________________________________________________________________

2.
Address for Notices to Selling Securityholder:

 

	 
_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________
	
      Telephone:___________________________________________________________________________________

	
      Fax:_________________________________________________________________________________________

	
      Contact
      Person:________________________________________________________________________________

19

3.
Beneficial Ownership of Registrable Securities:

 

	
      
	
      
	
      Type
      and Principal Amount of Registrable Securities beneficially
      owned:

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

 

4.
Broker-Dealer Status:

 

	
      
	
      (a)
	
      Are
      you a broker-dealer?

 

Yes o  No o 

 

	
      
	
      Note:
	
      If
      yes, the Commission’s staff has indicated that you should be identified as
      an underwriter in the Registration
Statement.

 

	
      
	
      (b)
	
      Are
      you an affiliate of a broker-dealer?

 

Yes o No o 

 

	
      
	
      (c)
	
      If
      you are an affiliate of a broker-dealer, do you certify that you bought
      the Registrable Securities in the ordinary course of business, and at the
      time of the purchase of the Registrable Securities to be resold, you had
      no agreements or understandings, directly or indirectly, with any person
      to distribute the Registrable Securities?

 

Yes o No o 

 

	
      
	
      Note:
	
      If
      no, the Commission’s staff has indicated that you should be identified as
      an underwriter in the Registration
Statement.

 

5.
Beneficial Ownership of Other Securities of the Company Owned by the Selling
Securityholder.

 

Except
as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3.

 

	
      
	
      
	
      Type
      and Amount of Other Securities beneficially owned by the Selling
      Securityholder:

_______________________________________________________________________________

 

 

20

6.
Relationships with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any
other material relationship with the Company (or its predecessors or affiliates)
during the past three years.

 

State any
exceptions here:

       
____________________________________________________________________________________

               
____________________________________________________________________________________

 

The
undersigned agrees to promptly notify the Company of any inaccuracies or changes
in the information provided herein that may occur subsequent to the date hereof
and prior to the Effective Date for the Registration Statement.

 

By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 6 and the inclusion of such
information in the Registration Statement and the related prospectus. The
undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of the Registration Statement
and the related prospectus.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
and Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

 

Dated:
___________________                  Beneficial
Owner:____________________________  

        
By:_______________________________________  

              
Name:

              
Title: 

PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
THE ORIGINAL BY OVERNIGHT MAIL, TO:

Rein
Evans & Sestanovich LLP

1925
Century Park East, 16th Floor

Los
Angeles, CA 90067

Facsimile
No.: (310) 551-0238

Attn:
Douglas K. Simpson, Esq.

 

21

SCHEDULE
TO FORM OF REGISTRATION RIGHTS AGREEMENT

The
following investors are signatory to the Form of Registration Rights
Agreement:

	1.  	
      Roaring
      Fork Capital SBIC, L.P.

	2.  	
      MicroCapital
      Fund LP

	3.  	
      MicroCapital
      Fund Ltd.

	4.  	
      Presidio
      Partners

	5.  	
      Geary
      Partners L.P.

	6.  	
      Brady
      Retirement Fund L.P.

	7.  	
      BTG
      Investments, LLC

	8.  	
      Margaret
      M. Bathgate

	9.  	
      Banc
      of America Securities 

	10.  	
      F/B/O
      Stephen J. Hutsko IRA

	11.  	
      Joseph
      Paul Schimmelpfennig

	12.  	
      Gordan
      J. Roth

	13.  	
      John
      J. Weber

	14.  	
      Jeffrey
      M. Ng

22Exhibit 10.8

                                EXCLUSIVE LICENSE

      This License Agreement (the "License Agreement") is made the 4th day of
April, 2003 between Vincent C. Giampapa, an individual with an address at c/o
Plastic Surgery Center, 89 Valley Road, Montclair, New Jersey 07042, New Jersey
("Giampapa") and Kronogen Sciences Inc. a corporation of the state of Delaware
having a place of business at 750 Lexington Avenue, 20th Floor, New York, New
York 10022 (hereinafter "KRONOGEN SCIENCES").

                                    RECITALS:

      KRONOGEN SCIENCES is in the anti-aging/age management business (the
"Business") and is developing products and programs in connection therewith; and

      Giampapa is the owner of certain patents and processes some of which
relate to the Business; and

      Giampapa has transferred to KRONOGEN SCIENCES all of his intellectual
property related to the Business under or in connection with an Asset Transfer
Agreement dated as of April __, 2003 by and among, KRONOGEN SCIENCES, Giampapa
and The Giampapa Institute For Anti-Aging Medical Therapy ("Transfer
Agreement"), except that patents related to the Business shall be subject to the
terms hereof; and

      KRONOGEN SCIENCES desires to license from Giampapa, and Giampapa desires
to license to KRONOGEN SCIENCES, Giampapa's patents related to the Business
under the terms and conditions of this License Agreement.

      In consideration of the mutual covenants, representations, warranties, and
promises of the parties hereto, the receipt and legal sufficiency of which is
hereby acknowledged, and intending to be legally bound hereby, the parties
hereto represent, warrant, covenant and agree as follows:

1.    Incorporation of Recitals. The above recitals are incorporated herein as
      if fully set forth below.

2.    License Grant. Giampapa grants to KRONOGEN SCIENCES under the Licensed
      Patents (defined below), and for the life of the Licensed Patents, an
      exclusive, irrevocable, worldwide, transferable license, with the right to
      sublicense, to practice the methods and to make, have made, use, offer to
      sell, sell, import, export, and sell for export in connection with
      KRONOGEN SCIENCES' business the inventions described or claimed in the
      Licensed Patents.

      (a)   "Licensed Patents" means all patents, reissues of and reexamined
            patents, and patent applications, whenever filed and wherever
            issued, including without limitation, continuations,
            continuations-in-part, substitutes, and divisions of such
            applications and all priority rights resulting from such
            applications, owned by Giampapa or for which Giampapa has the right
            to grant licenses of the scope of the licensed granted in this
            License Agreement that are related to the Business, including
            without limitation, the patents identified in Schedule 2(a).
            Licensed Patents also includes without limitation, any discovery,
            idea, design, or invention that (a) the unlicensed making, having
            made, use, offering to sell, selling, importing, exporting, or
            selling for export of which would infringe one or more of the
            Licensed Patents; (b) performs the same function as a product or
            service that is subject to any of the Licensed Patents; (c) is
            useful or necessary to KRONOGEN SCIENCES' exercise of its rights
            under this License Agreement; or (d) uses, incorporates, is derived
            from, or is based on the inventions described or claimed in the
            Licensed Patents or that could not be conceived, developed, or
            reduced to practice but for the use of the inventions described or
            claimed in the Licensed Patents.

<PAGE>

3.    Royalties.

      (a)   Certain Definitions.

            (i)   "Net Sales Price" means the amount actually received by
                  KRONOGEN SCIENCES for the sale of any Units, less (i) any
                  amounts received for freight or taxes, (ii) unreimbursed
                  delivery or shipping costs, (iii) amounts paid for
                  commissions, (iv) refunds for returns and rejections and (v)
                  any cash and trade discounts and other credits and allowances.

            (ii)  "Units" means products manufactured by or on behalf of
                  KRONOGEN SCIENCES which include as a component thereof
                  anything fabricated using the Licensed Patents, in such
                  minimum quantities as are packaged and sold at retail.

      (b)   Royalties on Sales. KRONOGEN SCIENCES will pay to Giampapa royalties
            as follows:

            (i)   KRONOGEN SCIENCES shall pay Giampapa a royalty of 6% of the
                  Net Sales Price of Units sold by KRONOGEN SCIENCES that are
                  developed by Giampapa for KRONOGEN SCIENCES ("Royalties").

            (ii)  Royalties shall be due and payable to Giampapa based on each
                  Unit actually sold by KRONOGEN SCIENCES, less any returns and
                  allowances. No Royalty will be due and payable on any Units
                  shipped as promotional product where KRONOGEN SCIENCES does
                  not receive any payment; KRONOGEN SCIENCES will endeavor to
                  use good business judgment in regard to these Units, it being
                  acknowledged that the parties' intention in connection
                  therewith is to generate additional sales of Units and/or
                  goodwill.

            (iii) Royalties due and payable hereunder shall be paid on a
                  quarterly basis within 45 days after the close of each
                  calendar quarter and, shall be accompanied by a written
                  statement setting forth sales information in respect of Units
                  sold during such quarter.

            (iv)  Giampapa or his authorized certified public accountant shall
                  have the right to examine the books, accounts and records of
                  KRONOGEN SCIENCES, from time to time up to two times per year,
                  at mutually agreed upon times and dates, to ensure that the
                  Royalty statements are complete, current and accurate in all
                  material respects and that any Royalties due hereunder have
                  been paid to Giampapa as required by this License Agreement.

4.    Obligations, Agreements and Acknowledgements of Giampapa. Giampapa
      covenants and agrees:

      (a)   Giampapa shall have no obligation or responsibility under this
            License Agreement for the conduct of KRONOGEN SCIENCES' business,
            except as expressly set forth in this License Agreement, it being
            acknowledged that Giampapa has other obligations in respect of
            KRONOGEN SCIENCES pursuant to the Transfer Agreement and the other
            agreements referred to therein and contemplated thereby;

      (b)   to permit KRONOGEN SCIENCES to use his photograph or likeness in
            marketing the Units;

      (c)   to provide KRONOGEN SCIENCES with Patent Numbers, where applicable,
            on all products licensed to KRONOGEN SCIENCES;

      (d)   to fully disclose to KRONOGEN SCIENCES, and to otherwise hold in
            strict confidence, any discovery, idea, design, invention, work of
            authorship, or trademark, service mark, trade name, trade dress, or
            other indicia of origin, related to the Business, whether or not
            patentable and whether or not completed or reduced to practice, that
            is conceived, developed or made by Giampapa, alone or jointly with
            others during the term of this License Agreement, and any component
            of any such thing (collectively "Work Product");

                                  Page 2 of 8
<PAGE>

      (e)   for the one year period following the disclosure in accordance with
            Section 4(d) of Work Product related to the Licensed Patents (the
            "Exclusive Period"), to grant rights to such Work Product equal to
            the rights granted for Licensed Patents by this License Agreement to
            KRONOGEN SCIENCES on such terms as the parties may mutually agree
            and, for the one year period commencing immediately upon expiration
            of the Exclusive Period, grant to KRONOGEN SCIENCES a right of first
            refusal to acquire rights in such Work Product on terms no less
            favorable than is offered to Giampapa by a bona fide third party;

      (f)   to not assert against KRONOGEN SCIENCES, or its vendees, mediate or
            immediate, any claims for infringement of any patent based on the
            manufacture, use, sale, offer for sale, or import of any apparatus
            made or sold by KRONOGEN SCIENCES under the license granted in this
            License Agreement;

      (g)   KRONOGEN SCIENCES shall have the right to sell any Units under
            whatever trademarks, trade names, trade dress, service marks and the
            like it shall deem appropriate or advisable, and all trademarks,
            trade names, trade dress, service marks and the like under which
            Units are sold shall remain the sole and exclusive property of
            KRONOGEN SCIENCES;

      (h)   KRONOGEN SCIENCES, if it so elects, may apply for patents,
            copyrights and/or trademarks relating to the Units, at its sole cost
            and expense; and

      (i)   to use Giampapa's best efforts to maintain the strict
            confidentiality of all information relating to KRONOGEN SCIENCES'
            businesses and affairs not otherwise available to the general
            public, including, but not limited to, KRONOGEN SCIENCES'
            development, manufacture and sale of any of the Units and to refrain
            from disclosing the same to any person, without the prior written
            consent to KRONOGEN SCIENCES, except as may be required by law,
            government regulation or pursuant to governmental process; provided
            that, prior to any such disclosure, Giampapa shall provide KRONOGEN
            SCIENCES with reasonable notice thereof, as well as reasonable
            opportunity to take appropriate steps to preserve the
            confidentiality of such information.

5.    Right to Terminate

      (a)   Giampapa shall have the right to terminate his obligations under
            this License Agreement and this license, by written notice to
            KRONOGEN SCIENCES, upon the occurrence of any one of the following
            events:

            (i)   the breach of any material term, covenant, condition,
                  representation or warranty hereof by KRONOGEN SCIENCES that
                  has not been corrected within sixty (60) days after written
                  notice thereof has been provided by Giampapa to KRONOGEN
                  SCIENCES; provided, however, if the breach is not curable
                  within such sixty (60) day period, this license shall not
                  terminate hereunder if, during such period, KRONOGEN SCIENCES
                  commences (and thereafter takes reasonable steps to endeavor)
                  to cure such breach.

            (ii)  a voluntary petition is commenced by KRONOGEN SCIENCES under
                  the Bankruptcy Code, as amended, 11 U.S.C. ss. 101 et seq, or
                  any other law for the relief of debtors or protection of
                  creditors; KRONOGEN SCIENCES has an involuntary petition
                  commenced against it under such law and such petition is not
                  dismissed within 120 days after filing; KRONOGEN SCIENCES
                  becomes insolvent; or any substantial part of KRONOGEN
                  SCIENCES' property becomes subject to any levy, seizure,
                  assignment, application, or sale for or by any creditor or
                  governmental agency; or liquidates or otherwise discontinues
                  all or a significant part of its business operations.

                                  Page 3 of 8
<PAGE>

      (b)   KRONOGEN SCIENCES can terminate this License Agreement upon thirty
            (30) days written notice to Giampapa.

      (c)   Unless earlier terminated, this License Agreement shall terminate
            upon expiration of the last-expiring Licensed Patent (including any
            patents that may be granted on any patent applications included in
            the Licensed Patents).

      (d)   In the event of termination of this License Agreement, KRONOGEN
            SCIENCES may manufacture into finished goods any raw materials,
            including raw materials on order from its supplier, and to sell its
            inventory of Units but will otherwise immediately cease utilizing
            the rights granted under Section 2 of this License Agreement and
            shall otherwise immediately cease selling and offering for sale, any
            Units.

6.    KRONOGEN SCIENCES Representations and Warranties. KRONOGEN SCIENCES hereby
      represents and warrants to Giampapa as follows:

      (a)   that it is duly organized and validly existing under the laws of the
            jurisdiction in which it was formed and has all power and all
            material governmental licenses, authorizations, permits, consents,
            and approvals required to carry on its business as now conducted;

      (b)   that the execution, delivery, and performance by KRONOGEN SCIENCES
            of this License Agreement are within its powers and have been duly
            authorized by all necessary action by KRONOGEN SCIENCES and that
            this License Agreement constitutes a valid and binding agreement of
            KRONOGEN SCIENCES enforceable against KRONOGEN SCIENCES in
            accordance with its terms except as such enforceability may be
            limited by applicable bankruptcy, insolvency, reorganization, or
            other similar laws affecting creditors' rights generally and by
            general equitable principles (regardless of whether enforcement is
            sought in equity or at law); and

      (c)   that the execution, delivery, and performance by KRONOGEN SCIENCES
            of this License Agreement require no action by or in respect of, or
            filing with, any governmental body, agency, or official.

7.    Giampapa Representations and Warranties. Giampapa hereby represents and
      warrants to KRONOGEN SCIENCES as follows:

      (a)   that the execution, delivery, and performance by Giampapa of this
            License Agreement are within his powers and that this License
            Agreement constitutes a valid and binding agreement of Giampapa
            enforceable against Giampapa in accordance with its terms except as
            such enforceability may be limited by applicable bankruptcy,
            insolvency, reorganization, or other similar laws affecting
            creditors' rights generally and by general equitable principles
            (regardless of whether enforcement is sought in equity or at law);

      (b)   that the execution, delivery, and performance by Giampapa of this
            License Agreement require no action by or in respect of, or filing
            with, any governmental body, agency, or official.

      (c)   that he has the full legal right to grant to KRONOGEN SCIENCES the
            licenses granted under this License Agreement;

                                  Page 4 of 8
<PAGE>

      (d)   that prior to the date of this License Agreement, no license,
            covenant not to sue, or any other right under any Licensed Patent
            has been granted to any third party.

8.    Protection of Licensed Patents.

      (a)   KRONOGEN SCIENCES will at all times recognize the ownership of
            Giampapa of the Licensed Patents and will not at any time do or
            suffer to be done any act or thing which will in any way impair the
            rights of Giampapa in the Licensed Patents. KRONOGEN SCIENCES hereby
            expressly covenants that during the life of this License Agreement
            and upon and after the termination thereof, KRONOGEN SCIENCES will
            not claim that its use of the Licensed Patents has created any title
            in KRONOGEN SCIENCES in any country.

      (b)   During the term of this Agreement, KRONOGEN will pay the fees, if
            any, associated with the filing, maintenance and prosecution, with
            the United States Patent and Trademark Office, of the Licensed
            Patents; provided, however, that Giampapa shall cooperate with
            KRONOGEN in connection therewith, and provided further, that it is
            acknowledged and agreed that KRONOGEN shall not be responsible for
            any fees or other costs or payments associated with any claim or
            suit relating to the Licensed Patents.

      (c)   In the event of infringement of the Licensed Patents, the parties
            will jointly cooperate in terminating such infringement.

9.    Indemnification.

      (a)   KRONOGEN SCIENCES hereby indemnifies Giampapa and shall hold him
            harmless from any loss, liability, damage, cost or expense,
            including reasonable attorneys' fees, arising out of any claims or
            suits which may be brought against Giampapa relating to KRONOGEN
            SCIENCES' manufacture, sale or distribution of the Units, except as
            such claims or suits relate to the grant of rights, covenants,
            warranties or representations of Giampapa set forth herein, provided
            that Giampapa shall give prompt written notice, cooperation and
            assistance to KRONOGEN SCIENCES relative to any such claim or suit,
            and provided that KRONOGEN SCIENCES shall have the option to
            undertake and conduct the defense of any suit so brought.

      (b)   Giampapa hereby indemnifies KRONOGEN SCIENCES and its officers,
            directors, shareholders, employees and agents (collectively, the
            "KRONOGEN Indemnified Parties"), and shall hold each KRONOGEN
            Indemnified Party harmless from any loss, liability, damage, cost or
            expense, including reasonable attorneys' fees, arising out of any
            claims or suits which may be brought or made against such KRONOGEN
            Indemnified Party by reason of Giampapa's grant of rights,
            covenants, warranties or representations set forth herein, provided
            that KRONOGEN SCIENCES shall give prompt written notice, cooperation
            and assistance to Giampapa relative to any such claim or suit.

10.   Miscellaneous

      (a)   Notices. Any notice or other communication required or permitted
            hereunder must be in writing and must be transmitted by personal
            delivery, reputable overnight courier service, certified mail
            (postage pre-paid, receipt requested) or telecopy, as follows:

      If to KRONOGEN SCIENCES:            Kronogen Sciences Inc.
                                          750 Lexington Avenue, 20th Floor
                                          New York, NY 10022
                                          Attention: Richard Serbin, President
                                          Facsimile: (212) 905-0208

                                  Page 5 of 8
<PAGE>

      with a copy to:                     Blank Rome LLP
                                          405 Lexington Avenue
                                          New York, NY  10174
                                          Attention: Robert J. Mittman, Esq.
                                          Facsimile: (212) 885-5001

      if to GIAMPAPA:                     Vincent C. Giampapa, M.D.
                                          89 Valley Road
                                          Montclair, NJ  07042
                                          Facsimile: (973) 746-4385

      with a copy to:
                                          --------------------------------------

                                          --------------------------------------

                                          --------------------------------------

                                          --------------------------------------

                                          Attention:
                                                   -----------------------------

or at such other address as the party shall designate in a written notice to the
other party hereto, given in accordance with this Section 10. All notices and
other communications shall be effective (i) if delivered in person, when
delivered; (ii) if sent by overnight courier, the next business day following
the delivery thereof to such courier (or such later date as is demonstrated by a
bona fide receipt therefor); (iii) if sent by certified mail, three days after
deposit in the mail; or (iv) if sent by telecopier with receipt acknowledged,
when sent.

      (b)   No Waiver; Cumulative Remedies. No failure to exercise and no delay
            in exercising, on the part of Giampapa, any right, remedy, power or
            privilege hereunder shall operate as a waiver thereof; nor shall any
            single or partial exercise of any right, remedy, power or privilege
            hereunder preclude any other or further exercise thereof or the
            exercise of any other right, remedy, power or privilege. The rights,
            remedies, powers and privileges herein provided are cumulative and
            not exclusive of any rights, remedies, powers and privileges
            provided by law.

      (c)   Severability. Any provision of this License Agreement which 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, and any such prohibition or unenforceability in any
            jurisdiction shall not invalidate or render unenforceable said
            provision in any other jurisdiction.

      (d)   Integration. This License Agreement represents the agreement of the
            Giampapa and KRONOGEN SCIENCES with respect to the subject matter
            hereof, and there are no promises or representations by either party
            relative to the subject matter hereof not reflected herein or
            therein.

      (e)   Governing Law. This License Agreement and the rights and obligations
            of the parties under this License Agreement shall be governed by,
            and construed and interpreted in accordance with, the laws of the
            State of New Jersey applicable to contracts entered into and wholly
            performed in the State of New Jersey.

      (f)   No Assignment. This License Agreement shall be binding upon the
            parties hereto, their successors and permitted assigns. Neither this
            License Agreement nor any of the rights, duties or obligations
            thereunder may be assigned, sold, conveyed, transferred, or
            delegated by either party without the express written consent of the
            other party hereto. Notwithstanding the foregoing, KRONOGEN SCIENCES
            may assign this License Agreement, and all rights and obligations
            under this License Agreement, pursuant to the acquisition, merger,
            corporate reorganization, or refinancing of KRONOGEN SCIENCES. Any
            attempted assignment in violation of this Section 10(f) shall be
            void.

                                  Page 6 of 8
<PAGE>

      (g)   Substitute Corporate Party. Giampapa reserves the right at any time
            to substitute a corporate party owned by Giampapa in place of
            himself as a party to this License Agreement provided such
            substitute corporate party has the ability to furnish the same
            personal services, and grant the same rights to KRONOGEN SCIENCES as
            presently provided by Giampapa as an individual party to this
            License Agreement.

11.   Counterparts. This Agreement may be executed in original or facsimile
      counterparts, each of which shall be deemed an original, but both of which
      when taken together shall constitute one and the same instrument.

      The parties have executed this License Agreement on the date first above
written.

                  /s/ Vincent C. Giampapa
                  -----------------------------------
                  Vincent C. Giampapa

                  KRONOGEN SCIENCES INC.

                  /s/ Richard Serbin
                  -----------------------------------
                  By: Richard Serbin
                  President & Chief Executive Officer

                                  Page 7 of 8
<PAGE>

                                                                   SCHEDULE 2(a)

<TABLE>
<CAPTION>
PATENT                   PUB. DATE                 TITLE
------                   ---------                 -----
<S>                      <C>                       <C>
US5895652                04/20/1999                Method of metabolic adjuvanation and cellular repair

US5580569                12/03/1996                Article for tissue-specific delivery of therapeutic agents

US5494677                02/27/1996                Tissue-specific implantable therapeutic agent delivery system

US5443508                08/22/1995                Subcutaneous implantable multiple agent delivery system

US5391164                02/21/1995                Subcutaneous implantable multiple-agent delivery system

US5326568                07/05/1994                Method of tissue-specific delivery

US5201728                04/13/1993                Subcutaneous implantable multiple-agent delivery system

Application                                        The C-MED Multi Daily Nutritional System

Application                                        The Bio-Marker Matrix Software
</TABLE>

                                  Page 8 of 8

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