Document:

EXHIBIT
          10.8

        

        ESCROW
          AGREEMENT

         

        THIS
          ESCROW AGREEMENT
          (this
“Agreement”)
          is
          made and entered into as of August 12, 2005 by and among IQ
          MEDICAL CORP., a
          Colorado corporation (the “Company”);
          the
          Buyer(s) listed on the Securities Purchase Agreement, dated the date
          hereof (also referred to as the “Investor(s)”),
          and
DAVID
          GONZALEZ, ESQ.,
          as
          Escrow Agent hereunder (the “Escrow
          Agent”).

         

         

        BACKGROUND

         

        WHEREAS,
          the
          Company and the Investor(s) have entered into a Securities Purchase Agreement
          (the “Securities
          Purchase Agreement”),
          dated
          as of the date hereof, pursuant to which the Company proposes to sell secured
          convertible debentures (the “Convertible
          Debentures”)
          which
          shall be convertible into the Company’s Common Stock, par value $0.0001 per
          share (the “Common
          Stock”),
          for a
          total purchase price of up to Five Hundred Thousand Dollars ($500,000).
          The
          Securities Purchase Agreement provides that the Investor(s) shall deposit
          the
          purchase amount in a segregated escrow account to be held by Escrow Agent
          in
          order to effectuate a disbursement to the Company at a closing to be held
          as set
          forth in the Securities Purchase Agreement (the “Closing”).

         

        WHEREAS,
          the
          Company intends to sell Convertible Securities (the “Offering”).

         

        WHEREAS,
          Escrow
          Agent has agreed to accept, hold, and disburse the funds deposited with
          it in
          accordance with the terms of this Agreement.

         

        WHEREAS,
          in
          order to establish the escrow of funds and to effect the provisions of
          the
          Securities Purchase Agreement, the parties hereto have entered into this
          Agreement.

         

        NOW
          THEREFORE,
          in
          consideration of the foregoing, it is hereby agreed as follows:

         

        1.          Definitions.
          The
          following terms shall have the following meanings when used herein:

         

        a.          “Escrow
          Funds”
shall
          mean the funds deposited with Escrow Agent pursuant to this
          Agreement.

         

        b.          “Joint
          Written Direction” shall
          mean a written direction
          executed by the Investor(s) and the Company directing Escrow Agent to disburse
          all or a portion of the Escrow Funds or to take or refrain from taking
          any
          action pursuant to this Agreement.

         

        c.          “Escrow
          Period”
shall
          begin with the commencement of the Offering and shall terminate upon the
          earlier
          to occur of the following dates:

         

        (i)          The
          date upon which Escrow Agent confirms that it has received in the Escrow
          Account
          all of the proceeds of the sale of the Convertible Debentures; 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        (ii)          The
          expiration of twenty (20) days from the date of commencement of the Offering
          (unless extended by mutual written agreement between the Company and the
          Investor(s) with a copy of such extension to Escrow Agent); or

         

        (iii)          The
          date upon which a determination is made by the Company and the Investor(s)
          to
          terminate the Offering prior to the sale of all the Convertible
          Debentures.

         

        During
          the Escrow Period, the Company and the Investor(s) are aware that they
          are not
          entitled to any funds received into escrow and no amounts deposited in
          the
          Escrow Account shall become the property of the Company or the Investor(s)
          or
          any other entity, or be subject to the debts of the Company or the Investor(s)
          or any other entity.

         

        2.          Appointment
          of and Acceptance by Escrow Agent.
          The
          Investor(s) and the Company hereby appoint Escrow Agent to serve as Escrow
          Agent
          hereunder. Escrow Agent hereby accepts such appointment and, upon receipt
          by
          wire transfer of the Escrow Funds in accordance with Section 3 below, agrees
          to
          hold, invest and disburse the Escrow Funds in accordance with this
          Agreement.

         

        a.          The
          Company hereby acknowledges that the Escrow Agent is general counsel to
          the
          Investor(s), a partner in the general partner of the Investor(s), and counsel
          to
          the Investor(s) in connection with the transactions contemplated and referred
          herein. The Company agrees that in the event of any dispute arising in
          connection with this Escrow Agreement or otherwise in connection with any
          transaction or agreement contemplated and referred herein, the Escrow Agent
          shall be permitted to continue to represent the Investor(s) and the Company
          will
          not seek to disqualify such counsel. 

         

        3.          Creation
          of Escrow Funds.
          On or
          prior to the date of the commencement of the Offering, the parties shall
          establish an escrow account with the Escrow Agent, which escrow account
          shall be
          entitled as follows: IQ Medical Corp./Cornell Capital Partners, LP Escrow
          Account for the deposit of the Escrow Funds. The Investor(s) will instruct
          subscribers to wire funds to the account of the Escrow Agent as
          follows:

         

        
          	
                  Bank:

                	
                  Wachovia,
                    N.A. of New Jersey

                
	
                  Routing
                    #:

                	
                  031201467

                
	
                  Account
                    #:

                	
                  2000014931134

                
	
                  Name
                    on Account:

                	
                  David
                    Gonzalez Attorney Trust Account

                
	
                  Name
                    on Sub-Account:

                	
                  IQ
                    Medical Corp./Cornell Capital Partners, LP Escrow
                    Account

                

        

         

        4.          Deposits
          into the Escrow Account.
          The
          Investor(s) agrees that they shall promptly deliver funds for the payment
          of the
          Convertible Debentures to Escrow Agent for deposit in the Escrow
          Account.

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        5.          Disbursements
          from the Escrow Account.

         

        a.          The
          Escrow Agent will continue to hold such funds until Cornell Capital Partners,
          LP
          on behalf of the Investor(s) and Company execute a Joint Written Direction
          directing the Escrow Agent to disburse the Escrow Funds pursuant to Joint
          Written Direction signed by the Company and the Investor(s). In disbursing
          such
          funds, Escrow Agent is authorized to rely upon such Joint Written Direction
          from
          the Company and the Investor(s) and may accept any signatory from the Company
          listed on the signature page to this Agreement and any signature from the
          Investor(s) that the Escrow Agent already has on file.

         

        b.          In
          the event Escrow Agent does not receive the amount of the Escrow Funds
          from the
          Investor(s), Escrow Agent shall notify the Company and the Investor(s).
          Upon
          receipt of payment instructions from the Company, Escrow Agent shall refund
          to
          each subscriber without interest the amount received from each Investor(s),
          without deduction, penalty, or expense to the subscriber. The purchase
          money
          returned to each subscriber shall be free and clear of any and all claims
          of the
          Company, the Investor(s) or any of their creditors.

         

        c.          In
          the event Escrow Agent does receive the amount of the Escrow Funds prior
          to
          expiration of the Escrow Period, in no event will the Escrow Funds be released
          to the Company until such amount is received by Escrow Agent in collected
          funds.
          For purposes of this Agreement, the term “collected funds” shall mean all funds
          received by Escrow Agent which have cleared normal banking channels and
          are in
          the form of cash.

         

        6.          Collection
          Procedure.
          Escrow
          Agent is hereby authorized to deposit the proceeds of each wire in the
          Escrow
          Account.

         

        7.          Suspension
          of Performance: Disbursement Into Court.
          If at
          any time, there shall exist any dispute between the Company and the Investor(s)
          with respect to holding or disposition of any portion of the Escrow Funds
          or any
          other obligations of Escrow Agent hereunder, or if at any time Escrow Agent
          is
          unable to determine, to Escrow Agent’s sole satisfaction, the proper disposition
          of any portion of the Escrow Funds or Escrow Agent’s proper actions with respect
          to its obligations hereunder, or if the parties have not within thirty
          (30) days
          of the furnishing by Escrow Agent of a notice of resignation pursuant to
          Section
          9 hereof, appointed a successor Escrow Agent to act hereunder, then Escrow
          Agent
          may, in its sole discretion, take either or both of the following
          actions:

         

        a.          suspend
          the performance of any of its obligations (including without limitation
          any
          disbursement obligations) under this Escrow Agreement until such dispute
          or
          uncertainty shall be resolved to the sole satisfaction of Escrow Agent
          or until
          a successor Escrow Agent shall be appointed (as the case may be); provided
          however, Escrow Agent shall continue to invest the Escrow Funds in accordance
          with Section 8 hereof; and/or

         

        b.          petition
          (by means of an interpleader action or any other appropriate method) any
          court
          of competent jurisdiction in any venue convenient to Escrow Agent, for
          instructions with respect to such dispute or uncertainty, and to the extent
          required by law, pay into such court, for holding and disposition in accordance
          with the instructions of such court, all funds held by it in the Escrow
          Funds,
          after deduction and payment to Escrow Agent of all fees and expenses (including
          court costs and attorneys’ fees) payable to, incurred by, or expected to be
          incurred by Escrow Agent in connection with performance of its duties and
          the
          exercise of its rights hereunder.

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        c.          Escrow
          Agent shall have no liability to the Company, the Investor(s), or any person
          with respect to any such suspension of performance or disbursement into
          court,
          specifically including any liability or claimed liability that may arise,
          or be
          alleged to have arisen, out of or as a result of any delay in the disbursement
          of funds held in the Escrow Funds or any delay in with respect to any other
          action required or requested of Escrow Agent.

         

        8.          Investment
          of Escrow Funds.
          Escrow
          Agent shall deposit the Escrow Funds in a non-interest bearing account.
          

         

        If
          Escrow
          Agent has not received a Joint Written Direction at any time that an investment
          decision must be made, Escrow Agent shall maintain the Escrow Funds, or
          such
          portion thereof, as to which no Joint Written Direction has been received,
          in a
          non-interest bearing account. 

         

        9.          Resignation
          and Removal of Escrow Agent.
          Escrow
          Agent may resign from the performance of its duties hereunder at any time
          by
          giving thirty (30) days’ prior written notice to the parties or may be removed,
          with or without cause, by the parties, acting jointly, by furnishing a
          Joint
          Written Direction to Escrow Agent, at any time by the giving of ten (10)
          days’
prior written notice to Escrow Agent as provided herein below. Upon any
          such
          notice of resignation or removal, the representatives of the Investor(s)
          and the
          Company identified in Sections 13a.(iv) and 13b.(iv), below, jointly shall
          appoint a successor Escrow Agent hereunder, which shall be a commercial
          bank,
          trust company or other financial institution with a combined capital and
          surplus
          in excess of $10,000,000.00. Upon the acceptance in writing of any appointment
          of Escrow Agent hereunder by a successor Escrow Agent, such successor Escrow
          Agent shall thereupon succeed to and become vested with all the rights,
          powers,
          privileges and duties of the retiring Escrow Agent, and the retiring Escrow
          Agent shall be discharged from its duties and obligations under this Escrow
          Agreement, but shall not be discharged from any liability for actions taken
          as
          Escrow Agent hereunder prior to such succession. After any retiring Escrow
          Agent’s resignation or removal, the provisions of this Escrow Agreement shall
          inure to its benefit as to any actions taken or omitted to be taken by
          it while
          it was Escrow Agent under this Escrow Agreement. The retiring Escrow Agent
          shall
          transmit all records pertaining to the Escrow Funds and shall pay all funds
          held
          by it in the Escrow Funds to the successor Escrow Agent, after making copies
          of
          such records as the retiring Escrow Agent deems advisable and after deduction
          and payment to the retiring Escrow Agent of all fees and expenses (including
          court costs and attorneys’ fees) payable to, incurred by, or expected to be
          incurred by the retiring Escrow Agent in connection with the performance
          of its
          duties and the exercise of its rights hereunder.

         

        10.          Liability
          of Escrow Agent.

         

        a.          Escrow
          Agent shall have no liability or obligation with respect to the Escrow
          Funds
          except for Escrow Agent’s willful misconduct or gross negligence. Escrow Agent’s
          sole responsibility shall be for the safekeeping, investment, and disbursement
          of the Escrow Funds in accordance with the terms of this Agreement. Escrow
          Agent
          shall have no implied duties or obligations and shall not be charged with
          knowledge or notice or any fact or circumstance not specifically set forth
          herein. Escrow Agent may rely upon any instrument, not only as to its due
          execution, validity and effectiveness, but also as to the truth and accuracy
          of
          any information contained herein, which Escrow Agent shall in good faith
          believe
          to be genuine, to have been signed or presented by the person or parties
          purporting to sign the same and conform to the provisions of this Agreement.
          In
          no event shall Escrow Agent be liable for incidental, indirect, special,
          and
          consequential or punitive damages. Escrow Agent shall not be obligated
          to take
          any legal action or commence any proceeding in connection with the Escrow
          Funds,
          any account in which Escrow Funds are deposited, this Agreement or the
          Purchase
          Agreement, or to appear in, prosecute or defend any such legal action or
          proceeding. Escrow Agent may consult legal counsel selected by it in any
          event
          of any dispute or question as to construction of any of the provisions
          hereof or
          of any other agreement or its duties hereunder, or relating to any dispute
          involving any party hereto, and shall incur no liability and shall be fully
          indemnified from any liability whatsoever in acting in accordance with
          the
          opinion or instructions of such counsel. The Company and the Investor(s)
          jointly
          and severally shall promptly pay, upon demand, the reasonable fees and
          expenses
          of any such counsel.

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        b.          Escrow
          Agent is hereby authorized, in its sole discretion, to comply with orders
          issued
          or process entered by any court with respect to the Escrow Funds, without
          determination by Escrow Agent of such court’s jurisdiction in the matter. If any
          portion of the Escrow Funds is at any time attached, garnished or levied
          upon
          under any court order, or in case the payment, assignment, transfer, conveyance
          or delivery of any such property shall be stayed or enjoined by any court
          order,
          or in any case any order judgment or decree shall be made or entered by
          any
          court affecting such property or any part thereof, then and in any such
          event,
          Escrow Agent is authorized, in its sole discretion, to rely upon and comply
          with
          any such order, writ judgment or decree which it is advised by legal counsel
          selected by it, binding upon it, without the need for appeal or other action;
          and if Escrow Agent complies with any such order, writ, judgment or decree,
          it
          shall not be liable to any of the parties hereto or to any other person
          or
          entity by reason of such compliance even though such order, writ judgment
          or
          decree may be subsequently reversed, modified, annulled, set aside or
          vacated.

         

        11.          Indemnification
          of Escrow Agent.
          From and
          at all times after the date of this Agreement, the parties jointly and
          severally, shall, to the fullest extent permitted by law and to the extent
          provided herein, indemnify and hold harmless Escrow Agent and each director,
          officer, employee, attorney, agent and affiliate of Escrow Agent (collectively,
          the “Indemnified
          Parties”)
          against any and all actions, claims (whether or not valid), losses, damages,
          liabilities, costs and expenses of any kind or nature whatsoever (including
          without limitation reasonable attorney’s fees, costs and expenses) incurred by
          or asserted against any of the Indemnified Parties from and after the date
          hereof, whether direct, indirect or consequential, as a result of or arising
          from or in any way relating to any claim, demand, suit, action, or proceeding
          (including any inquiry or investigation) by any person, including without
          limitation the parties to this Agreement, whether threatened or initiated,
          asserting a claim for any legal or equitable remedy against any person
          under any
          statute or regulation, including, but not limited to, any federal or state
          securities laws, or under any common law or equitable cause or otherwise,
          arising from or in connection with the negotiation, preparation, execution,
          performance or failure of performance of this Agreement or any transaction
          contemplated herein, whether or not any such Indemnified Party is a party
          to any
          such action or proceeding, suit or the target of any such inquiry or
          investigation; provided, however, that no Indemnified Party shall have
          the right
          to be indemnified hereunder for liability finally determined by a court
          of
          competent jurisdiction, subject to no further appeal, to have resulted
          from the
          gross negligence or willful misconduct of such Indemnified Party. If any
          such
          action or claim shall be brought or asserted against any Indemnified Party,
          such
          Indemnified Party shall promptly notify the Company and the Investor(s)
          hereunder in writing, and the Investor(s) and the Company shall assume
          the
          defense thereof, including the employment of counsel and the payment of
          all
          expenses. Such Indemnified Party shall, in its sole discretion, have the
          right
          to employ separate counsel (who may be selected by such Indemnified Party
          in its
          sole discretion) in any such action and to participate and to participate
          in the
          defense thereof, and the fees and expenses of such counsel shall be paid
          by such
          Indemnified Party, except that the Investor(s) and/or the Company shall
          be
          required to pay such fees and expense if (a) the Investor(s) or the Company
          agree to pay such fees and expenses, or (b) the Investor(s) and/or the
          Company
          shall fail to assume the defense of such action or proceeding or shall
          fail, in
          the sole discretion of such Indemnified Party, to employ counsel reasonably
          satisfactory to the Indemnified Party in any such action or proceeding,
          (c) the
          Investor(s) and the Company are the plaintiff in any such action or proceeding
          or (d) the named or potential parties to any such action or proceeding
          (including any potentially impleaded parties) include both the Indemnified
          Party, the Company and/or the Investor(s) and the Indemnified Party shall
          have
          been advised by counsel that there may be one or more legal defenses available
          to it which are different from or additional to those available to the
          Company
          or the Investor(s). The Investor(s) and the Company shall be jointly and
          severally liable to pay fees and expenses of counsel pursuant to the preceding
          sentence, except that any obligation to pay under clause (a) shall apply
          only to
          the party so agreeing. All such fees and expenses payable by the Company
          and/or
          the Investor(s) pursuant to the foregoing sentence shall be paid from time
          to
          time as incurred, both in advance of and after the final disposition of
          such
          action or claim. The obligations of the parties under this section shall
          survive
          any termination of this Agreement, and resignation or removal of the Escrow
          Agent shall be independent of any obligation of Escrow Agent.

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        The
          parties agree that neither payment by the Company or the Investor(s) of
          any
          claim by Escrow Agent for indemnification hereunder shall impair, limit,
          modify,
          or affect, as between the Investor(s) and the Company, the respective rights
          and
          obligations of Investor(s), on the one hand, and the Company, on the other
          hand.

         

        12.          Expenses
          of Escrow Agent.
          Except
          as set forth in Section 11 the Company shall reimburse Escrow Agent for
          all of
          its reasonable out-of-pocket expenses, including attorneys’ fees, travel
          expenses, telephone and facsimile transmission costs, postage (including
          express
          mail and overnight delivery charges), copying charges and the like. All
          of the
          compensation and reimbursement obligations set forth in this Section shall
          be
          payable by the Company, upon demand by Escrow Agent. The obligations of
          the
          Company under this Section shall survive any termination of this Agreement
          and
          the resignation or removal of Escrow Agent.

         

        13.          Warranties.

         

        a.          The
          Investor(s) makes the following representations and warranties to Escrow
          Agent:

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        (i)          The
          Investor(s) has full power and authority to execute and deliver this Agreement
          and to perform its obligations hereunder.

         

        (ii)          This
          Agreement has been duly approved by all necessary action of the Investor(s),
          including any necessary approval of the limited partner of the Investor(s)
          or
          necessary corporate approval, as applicable, has been executed by duly
          authorized officers of the Investor(s), enforceable in accordance with
          its
          terms.

         

        (iii)          The
          execution, delivery, and performance of the Investor(s) of this Agreement
          will
          not violate, conflict with, or cause a default under any agreement of limited
          partnership of Investor(s) or the articles of incorporation or bylaws of
          the
          Investor(s) (as applicable), any applicable law or regulation, any court
          order or administrative ruling or degree to which the Investor(s) is a
          party or
          any of its property is subject, or any agreement, contract, indenture,
          or other
          binding arrangement.

         

        (iv)          Mark
          Angelo has been duly appointed to act as the representative of the Investor(s)
          hereunder and has full power and authority to execute, deliver, and perform
          this
          Escrow Agreement, to execute and deliver any Joint Written Direction, to
          amend,
          modify, or waive any provision of this Agreement, and to take any and all
          other
          actions as the Investor(s)’s representative under this Agreement, all without
          further consent or direction form, or notice to, the Investor(s) or any
          other
          party.

         

        (v)          No
          party other than the parties hereto and the Investor(s)s have, or shall
          have,
          any lien, claim or security interest in the Escrow Funds or any part thereof.
          No
          financing statement under the Uniform Commercial Code is on file in any
          jurisdiction claiming a security interest in or describing (whether specifically
          or generally) the Escrow Funds or any part thereof.

         

        (vi)          All
          of the representations and warranties of the Investor(s) contained herein
          are
          true and complete as of the date hereof and will be true and complete at
          the
          time of any disbursement from the Escrow Funds.

         

        b.          The
          Company makes the following representations and warranties to the Escrow
          Agent:

         

        (i)          The
          Company is
          a
          corporation duly organized, validly existing, and in good standing under
          the
          laws of the State of Colorado and has full power and authority to execute
          and
          deliver this Agreement and to perform its obligations hereunder.

         

        (ii)          This
          Agreement has been duly approved by all necessary corporate action of the
          Company, including any necessary shareholder approval, has been executed
          by duly
          authorized officers of the Company, enforceable in accordance with its
          terms.

         

        (iii)          The
          execution, delivery, and performance by the Company of this Agreement is
          in
          accordance with the Securities Purchase Agreement and will not violate,
          conflict
          with, or cause a default under the certificate of incorporation or bylaws
          of the
          Company, any applicable law or regulation, any court order or administrative
          ruling or decree to which the Company is a party or any of its property
          is
          subject, or any agreement, contract, indenture, or other binding arrangement,
          including without limitation to the Securities Purchase Agreement, to which
          the
          Company is a party.

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        (iv)          Robert
          V. Rudman has been duly appointed to act as the representative of the Company
          hereunder and has full power and authority to execute, deliver, and perform
          this
          Agreement, to execute and deliver any Joint Written Direction, to amend,
          modify
          or waive any provision of this Agreement and to take all other actions
          as the
          Company’s Representative under this Agreement, all without further consent or
          direction from, or notice to, the Company or any other party.

         

        (v)          No
          party other than the parties hereto and the Investor(s)s have, or shall
          have,
          any lien, claim or security interest in the Escrow Funds or any part thereof.
          No
          financing statement under the Uniform Commercial Code is on file in any
          jurisdiction claiming a security interest in or describing (whether specifically
          or generally) the Escrow Funds or any part thereof.

         

        (vi)          All
          of the representations and warranties of the Company contained herein are
          true
          and complete as of the date hereof and will be true and complete at the
          time of
          any disbursement from the Escrow Funds.

         

        14.          Consent
          to Jurisdiction and Venue.
          In the
          event that any party hereto commences a lawsuit or other proceeding relating
          to
          or arising from this Agreement, the parties hereto agree that the United
          States
          District Court for the District of New Jersey shall have the sole and exclusive
          jurisdiction over any such proceeding. If all such courts lack federal
          subject
          matter jurisdiction, the parties agree that the Superior Court Division
          of New
          Jersey, Chancery Division of Hudson County shall have sole and exclusive
          jurisdiction. Any of these courts shall be proper venue for any such lawsuit
          or
          judicial proceeding and the parties hereto waive any objection to such
          venue.
          The parties hereto consent to and agree to submit to the jurisdiction of
          any of
          the courts specified herein and agree to accept the service of process
          to vest
          personal jurisdiction over them in any of these courts.

         

        15.          Notice.
          All
          notices and other communications hereunder shall be in writing and shall
          be
          deemed to have been validly served, given or delivered five (5) days after
          deposit in the United States mails, by certified mail with return receipt
          requested and postage prepaid, when delivered personally, one (1) day delivered
          to any overnight courier, or when transmitted by facsimile transmission
          and upon
          confirmation of receipt and addressed to the party to be notified as
          follows:

         

        
          	
                  If
                    to Investor(s), to:

                	
                  Cornell
                    Capital Partners, LP

                
	 	
                  101
                    Hudson Street - Suite 3700

                
	 	
                  Jersey
                    City, NJ 07302

                
	 	
                  Attention:    
                    Mark Angelo

                
	 	
                  Portfolio
                    Manager

                
	 	
                  Telephone:    (201)
                    985-8300

                
	 	
                  Facsimile:       (201)
                    985-8266

                

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        
          	
                  If
                    to Escrow Agent, to:

                	
                  Troy
                    Rillo, Esq.

                
	 	
                  101
                    Hudson Street - Suite 3700

                
	 	
                  Jersey
                    City, NJ 07302

                
	 	
                  Telephone:        (201)
                    985-8300

                
	 	
                  Facsimile:          (201)
                    985-8266

                
	 	 
	
                  If
                    to the Company, to:

                	
                  IQ
                    Medical Corp.

                
	 	
                  500
                    Australian Avenue South - Suite 700

                
	 	
                  West
                    Palm Beach, Florida 33401

                
	 	
                  Attention:          Robert
                    V. Rudman

                
	 	
                  Telephone:        (561)
                    514-0018

                
	 	
                  Facsimile:          (561)
                    514-0195

                
	 	 
	
                  With
                    a copy to:

                	
                  Gunster
                    Yoakley & Stewart, P.A.

                
	 	
                  Broward
                    Financial Centre - Suite 1400

                  500
                    East Broward Blvd.

                
	 	
                  Fort
                    Lauderdale, Florida 33394

                
	 	
                  Attention:          Robert
                    C. White, Jr. Esq.

                
	 	
                  Telephone:        (954)
                    468-1360

                
	 	
                  Facsimile:          (954)
                    888-2037

                

        

         

        Or
          to
          such other address as each party may designate for itself by like
          notice.

         

        16.          Amendments
          or Waiver.
          This
          Agreement may be changed, waived, discharged or terminated only by a writing
          signed by the parties hereto. No delay or omission by any party in exercising
          any right with respect hereto shall operate as waiver. A waiver on any
          one
          occasion shall not be construed as a bar to, or waiver of, any right or
          remedy
          on any future occasion.

         

        17.          Severability.
          To the
          extent any provision of this Agreement is prohibited by or invalid under
          applicable law, such provision shall be ineffective to the extent of such
          prohibition, or invalidity, without invalidating the remainder of such
          provision
          or the remaining provisions of this Agreement.

         

        18.          Governing
          Law.
          This
          Agreement shall be construed and interpreted in accordance with the internal
          laws of the State of New Jersey without giving effect to the conflict of
          laws
          principles thereof.

         

        19.          Entire
          Agreement.
          This
          Agreement constitutes the entire Agreement between the parties relating
          to the
          holding, investment, and disbursement of the Escrow Funds and sets forth
          in
          their entirety the obligations and duties of the Escrow Agent with respect
          to
          the Escrow Funds.

         

        20.          Binding
          Effect.
          All of
          the terms of this Agreement, as amended from time to time, shall be binding
          upon, inure to the benefit of and be enforceable by the respective heirs,
          successors and assigns of the Investor(s), the Company, or the Escrow
          Agent.

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        21.          Execution
          of Counterparts.
          This
          Agreement and any Joint Written Direction may be executed in counter parts,
          which when so executed shall constitute one and same agreement or
          direction.

         

        22.          Termination.
          Upon the
          first to occur of the disbursement of all amounts in the Escrow Funds pursuant
          to Joint Written Directions or the disbursement of all amounts in the Escrow
          Funds into court pursuant to Section 7 hereof, this Agreement shall terminate
          and Escrow Agent shall have no further obligation or liability whatsoever
          with
          respect to this Agreement or the Escrow Funds.

         

        [REMAINDER
          OF PAGE INTENTIONALLY LEFT BLANK]

        

        

        

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        IN
          WITNESS WHEREOF
          the
          parties have hereunto set their hands and seals the day and year above
          set
          forth.

         

        
          	 	
                  IQ
                    Medical Corp.

                
	 	 
	 	
                  By:          /s/
                    Robert V.
                    Rudman                              

                
	 	
                  Name:          Robert
                    V. Rudman

                
	 	
                  Title:          CFO

                
	 	 
	 	 
	 	 
	 	
                  Cornell
                    Capital Partners, LP

                
	 	 
	 	
                  By:          Yorkville
                    Advisors, LLC

                
	 	
                  Its:          General
                    Partner

                
	 	 
	 	
                  By:          /s/
                    Mark
                    Angelo                              

                
	 	
                  Name:          Mark
                    Angelo

                
	 	
                  Title:          Portfolio
                    Manager

                
	 	 
	 	 
	 	
                  Escrow
                    Agent

                
	 	 
	 	
                  By:          /s/
                    David
                    Gonzalez                              

                
	 	
                  Name:          David
                    Gonzalez, Esq.

                

        

        

        
          
            
            

          

            11EXHIBIT
      10.9

     

    INVESTOR
      REGISTRATION RIGHTS AGREEMENT

     

    THIS
      REGISTRATION RIGHTS AGREEMENT
      (this
“Agreement”),
      dated
      as of August 12, 2005, by and among IQ
      MEDICAL CORP.,
      a
      Colorado corporation (the “Company”),
      and
      the undersigned investors listed on Schedule I attached hereto (each, an
“Investor”
and
      collectively, the “Investors”).

     

    WHEREAS:

     

    A.          In
      connection with the Securities Purchase Agreement by and among the parties
      hereto of even date herewith (the “Securities
      Purchase Agreement”),
      the
      Company has agreed, upon the terms and subject to the conditions of the
      Securities Purchase Agreement, to issue and sell to the Investors secured
      convertible debentures (the “Convertible
      Debentures”)
      which
      shall be convertible into that number of shares of the Company’s common stock,
      par value $0.0001 per share (the “Common
      Stock”),
      pursuant to the terms of the Securities Purchase Agreement for an aggregate
      purchase price of up to Five Hundred Thousand Dollars ($500,000).
      Capitalized terms not defined herein shall have the meaning ascribed to them
      in
      the Securities Purchase Agreement.

     

    B.          To
      induce the Investors to execute and deliver the Securities Purchase Agreement,
      the Company has agreed to provide certain registration rights under the
      Securities Act of 1933, as amended, and the rules and regulations there under,
      or any similar successor statute (collectively, the “Securities
      Act”),
      and
      applicable state securities laws.

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and the Investors hereby agree as
      follows:

     

    1.          DEFINITIONS.

     

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

     

    (a)          “Person”
means
      a
      corporation, a limited liability company, an association, a partnership, an
      organization, a business, an individual, a governmental or political subdivision
      thereof or a governmental agency.

     

    (b)          “Register,”
      “registered,”
and
      “registration”
refer
      to a registration effected by preparing and filing one or more Registration
      Statements (as defined below) in compliance with the Securities Act and pursuant
      to Rule 415 under the Securities Act or any successor rule providing for
      offering securities on a continuous or delayed basis (“Rule
      415”),
      and
      the declaration or ordering of effectiveness of such Registration Statement(s)
      by the United States Securities and Exchange Commission (the “SEC”).

     

    (c)          “Registrable
      Securities”
means
      the shares of Common Stock issuable to the Investors upon conversion of the
      Convertible Debentures pursuant to the Securities Purchase Agreement and the
      Warrant Shares, as this term is defined in the Securities Purchase Agreement
      dated the date hereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)          “Registration
      Statement”
means
      a
      registration statement under the Securities Act which covers the Registrable
      Securities.

     

    2.          REGISTRATION.

     

    (a)          Subject
      to the terms and conditions of this Agreement, the Company shall prepare and
      file, within ten (10) days from obtaining a listing on the NASD OTC Bulletin
      Board but no later than by March 25, 2006 (the “Scheduled
      Filing Deadline”),
      with
      the SEC a registration statement on Form S-1 or SB-2 (or, if the Company is
      then
      eligible, on Form S-3) under the Securities Act (the “Initial
      Registration Statement”)
      for
      the resale by the Investors of the Registrable Securities, which includes at
      least 9,800,000 shares of Common Stock to be issued upon conversion of the
      Convertible Debentures and 100,000 shares of Common Stock underlying the Warrant
      of even date herewith. The Company shall cause the Registration Statement to
      remain effective until all of the Registrable Securities have been sold. Prior
      to the filing of the Registration Statement with the SEC, the Company shall
      furnish a copy of the Initial Registration Statement to the Investors for their
      review and comment. The Investors shall furnish comments on the Initial
      Registration Statement to the Company within twenty-four (24) hours of the
      receipt thereof from the Company.

     

    (b)          Effectiveness
      of the Initial Registration Statement.
      The
      Company shall use its best efforts (i) to have the Initial Registration
      Statement declared effective by the SEC no later one hundred twenty (120) days
      after the date filed (the “Scheduled
      Effective Deadline”)
      and
      (ii) to insure that the Initial Registration Statement and any subsequent
      Registration Statement remains in effect until all of the Registrable Securities
      have been sold, subject to the terms and conditions of this Agreement. It shall
      be an event of default hereunder if the Initial Registration Statement is not
      filed by the Scheduled Filing Deadline or declared effective by the Scheduled
      Effective Deadline.

     

    (c)          Failure
      to File or Obtain Effectiveness of the Registration Statement.
      In the
      event the Registration Statement is not filed by the Scheduled Filing Deadline
      or is not declared effective by the SEC on or before the Scheduled Effective
      Date, or if after the Registration Statement has been declared effective by
      the
      SEC, sales cannot be made pursuant to the Registration Statement (whether
      because of a failure to keep the Registration Statement effective, failure
      to
      disclose such information as is necessary for sales to be made pursuant to
      the
      Registration Statement, failure to register sufficient shares of Common Stock
      or
      otherwise then as partial relief for the damages to any holder of Registrable
      Securities by reason of any such delay in or reduction of its ability to sell
      the underlying shares of Common Stock (which remedy shall not be exclusive
      of
      any other remedies at law or in equity), the Company will pay as liquidated
      damages (the “Liquidated
      Damages”)
      to the
      holder, at the holder’s option, either a cash amount or shares of the Company’s
      Common Stock within three (3) business days, after demand therefore, equal
      to
      two percent (2%) of the liquidated value of the Convertible Debentures
      outstanding as Liquidated Damages for each thirty (30) day period after the
      Scheduled Filing Deadline or the Scheduled Effective Date as the case may
      be.

     

    (d)          Liquidated
      Damages.
      The
      Company and the Investor hereto acknowledge and agree that the sums payable
      under subsection 2(c) above shall constitute liquidated damages and not
      penalties and are in addition to all other rights of the Investor, including
      the
      right to call a default. The parties further acknowledge that (i) the amount
      of
      loss or damages likely to be incurred is incapable or is difficult to precisely
      estimate, (ii) the amounts specified in such subsections bear a reasonable
      relationship to, and are not plainly or grossly disproportionate to, the
      probable loss likely to be incurred in connection with any failure by the
      Company to obtain or maintain the effectiveness of a Registration Statement,
      (iii) one of the reasons for the Company and the Investor reaching an agreement
      as to such amounts was the uncertainty and cost of litigation regarding the
      question of actual damages, and (iv) the Company and the Investor are
      sophisticated business parties and have been represented by sophisticated and
      able legal counsel and negotiated this Agreement at arm’s length. 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.          RELATED
      OBLIGATIONS.

     

    (a)          The
      Company shall keep the Registration Statement effective pursuant to
      Rule 415 at all times until the date on which the Investor shall have sold
      all the Registrable Securities covered by such Registration Statement (the
      “Registration
      Period”),
      which
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall not contain any 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 in
      which
      they were made, not misleading.

     

    (b)          The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      the
      prospectus used in connection with such Registration Statement, which prospectus
      is to be filed pursuant to Rule 424 promulgated under the Securities Act, as
      may
      be necessary to keep such Registration Statement effective at all times during
      the Registration Period, and, during such period, comply with the provisions
      of
      the Securities Act with respect to the disposition of all Registrable Securities
      of the Company covered by such Registration Statement until such time as all
      of
      such Registrable Securities shall have been disposed of in accordance with
      the
      intended methods of disposition by the seller or sellers thereof as set forth
      in
      such Registration Statement. In the case of amendments and supplements to a
      Registration Statement which are required to be filed pursuant to this Agreement
      (including pursuant to this Section 3(b)) by reason of the Company’s filing a
      report on Form 10-KSB, Form 10-QSB or Form 8-K or any analogous report under
      the
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      the
      Company shall incorporate such report by reference into the Registration
      Statement, if applicable, or shall file such amendments or supplements with
      the
      SEC on the same day on which the Exchange Act report is filed which created
      the
      requirement for the Company to amend or supplement the Registration Statement.
      

     

    (c)          The
      Company shall furnish to each Investor whose Registrable Securities are included
      in any Registration Statement, without charge, (i) at least one (1) copy of
      such
      Registration Statement as declared effective by the SEC and any amendment(s)
      thereto, including financial statements and schedules, all documents
      incorporated therein by reference, all exhibits and each preliminary prospectus,
      (ii) ten (10) copies of the final prospectus included in such Registration
      Statement and all amendments and supplements thereto (or such other number
      of
      copies as such Investor may reasonably request) and (iii) such other documents
      as such Investor may reasonably request from time to time in order to facilitate
      the disposition of the Registrable Securities owned by such
      Investor.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

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

     

    (e)          As
      promptly as practicable after becoming aware of such event or development,
      the
      Company shall notify each Investor in writing of the happening of any event
      as a
      result of which the prospectus included in a Registration Statement, as then
      in
      effect, includes an untrue statement of a material fact or omission 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 (provided that in no event shall such notice contain any material,
      nonpublic information), and promptly prepare a supplement or amendment to such
      Registration Statement to correct such untrue statement or omission, and deliver
      ten (10) copies of such supplement or amendment to each Investor. The Company
      shall also promptly notify each Investor in writing (i) when a prospectus or
      any
      prospectus supplement or post-effective amendment has been filed, and when
      a
      Registration Statement or any post-effective amendment has become effective
      (notification of such effectiveness shall be delivered to each Investor by
      facsimile on the same day of such effectiveness), (ii) of any request by the
      SEC
      for amendments or supplements to a Registration Statement or related prospectus
      or related information, and (iii) of the Company’s reasonable determination
      that a post-effective amendment to a Registration Statement would be
      appropriate.

     

    (f)          The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of a Registration Statement, or the suspension
      of the qualification of any of the Registrable Securities for sale in any
      jurisdiction within the United States of America and, if such an order or
      suspension is issued, to obtain the withdrawal of such order or suspension
      at
      the earliest possible moment and to notify each Investor who holds Registrable
      Securities being sold of the issuance of such order and the resolution thereof
      or its receipt of actual notice of the initiation or threat of any proceeding
      for such purpose.

     

    (g)          At
      the reasonable request of any Investor, the Company shall furnish to such
      Investor, on the date of the effectiveness of the Registration Statement and
      thereafter from time to time on such dates as an Investor may reasonably request
      (i) a letter, dated such date, from the Company’s independent certified public
      accountants in form and substance as is customarily given by independent
      certified public accountants to underwriters in an underwritten public offering,
      and (ii) an opinion, dated as of such date, of counsel representing the Company
      for purposes of such Registration Statement, in form, scope and substance as
      is
      customarily given in an underwritten public offering, addressed to the
      Investors.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (h)          The
      Company shall make available for inspection by (i) any Investor and
      (ii) one (1) firm of accountants or other agents retained by the Investors
      (collectively, the “Inspectors”)
      all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company (collectively, the “Records”),
      as
      shall be reasonably deemed necessary by each Inspector, and cause the Company’s
      officers, directors and employees to supply all information which any Inspector
      may reasonably request; provided, however, that each Inspector shall agree,
      and
      each Investor hereby agrees, to hold in strict confidence and shall not make
      any
      disclosure (except to an Investor) or use any Record or other information which
      the Company determines in good faith to be confidential, and of which
      determination the Inspectors are so notified, unless (a) the disclosure of
      such
      Records is necessary to avoid or correct a misstatement or omission in any
      Registration Statement or is otherwise required under the Securities Act, (b)
      the release of such Records is ordered pursuant to a final, non-appealable
      subpoena or order from a court or government body of competent jurisdiction,
      or
      (c) the information in such Records has been made generally available to the
      public other than by disclosure in violation of this or any other agreement
      of
      which the Inspector and the Investor has knowledge. Each Investor agrees that
      it
      shall, upon learning that disclosure of such Records is sought in or by a court
      or governmental body of competent jurisdiction or through other means, give
      prompt notice to the Company and allow the Company, at its expense, to undertake
      appropriate action to prevent disclosure of, or to obtain a protective order
      for, the Records deemed confidential.

     

    (i)          The
      Company shall hold in confidence and not make any disclosure of information
      concerning an Investor provided to the Company unless (i) disclosure of such
      information is necessary to comply with federal or state securities laws, (ii)
      the disclosure of such information is necessary to avoid or correct a
      misstatement or omission in any Registration Statement, (iii) the release of
      such information is ordered pursuant to a subpoena or other final,
      non-appealable order from a court or governmental body of competent
      jurisdiction, or (iv) such information has been made generally available to
      the
      public other than by disclosure in violation of this Agreement or any other
      agreement. The Company agrees that it shall, upon learning that disclosure
      of
      such information concerning an Investor is sought in or by a court or
      governmental body of competent jurisdiction or through other means, give prompt
      written notice to such Investor and allow such Investor, at the Investor’s
      expense, to undertake appropriate action to prevent disclosure of, or to obtain
      a protective order for, such information.

     

    (j)          The
      Company shall use its best efforts either to cause all the Registrable
      Securities covered by a Registration Statement (i) to be listed on each
      securities exchange on which securities of the same class or series issued
      by
      the Company are then listed, if any, if the listing of such Registrable
      Securities is then permitted under the rules of such exchange or (ii) the
      inclusion for quotation on the National Association of Securities Dealers,
      Inc.
      OTC Bulletin Board for such Registrable Securities. The Company shall pay all
      fees and expenses in connection with satisfying its obligation under this
      Section 3(j).

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (k)          The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and, to the extent applicable, to facilitate the timely preparation
      and
      delivery of certificates (not bearing any restrictive legend) representing
      the
      Registrable Securities to be offered pursuant to a Registration Statement and
      enable such certificates to be in such denominations or amounts, as the case
      may
      be, as the Investors may reasonably request and registered in such names as
      the
      Investors may request.

     

    (l)          The
      Company shall use its best efforts to cause the Registrable Securities covered
      by the applicable Registration Statement to be registered with or approved
      by
      such other governmental agencies or authorities as may be necessary to
      consummate the disposition of such Registrable Securities.

     

    (m)          The
      Company shall make generally available to its security holders as soon as
      practical, but not later than ninety (90) days after the close of the period
      covered thereby, an earnings statement (in form complying with the provisions
      of
      Rule 158 under the Securities Act) covering a twelve (12) month period beginning
      not later than the first day of the Company’s fiscal quarter next following the
      effective date of the Registration Statement.

     

    (n)          The
      Company shall otherwise use its best efforts to comply with all applicable
      rules
      and regulations of the SEC in connection with any registration
      hereunder.

     

    (o)          Within
      two (2) business days after a Registration Statement which covers Registrable
      Securities is declared effective by the SEC, the Company shall deliver, and
      shall cause legal counsel for the Company to deliver, to the transfer agent
      for
      such Registrable Securities (with copies to the Investors whose Registrable
      Securities are included in such Registration Statement) confirmation that such
      Registration Statement has been declared effective by the SEC in the form
      attached hereto as Exhibit
      A.

     

    (p)          The
      Company shall take all other reasonable actions necessary to expedite and
      facilitate disposition by the Investors of Registrable Securities pursuant
      to a
      Registration Statement.

     

    4.          OBLIGATIONS
      OF THE INVESTORS.

     

    Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(f) or the first
      sentence of 3(e), such Investor will immediately discontinue disposition of
      Registrable Securities pursuant to any Registration Statement(s) covering such
      Registrable Securities until such Investor’s receipt of the copies of the
      supplemented or amended prospectus contemplated by Section 3(e) or receipt
      of
      notice that no supplement or amendment is required. Notwithstanding anything
      to
      the contrary, the Company shall cause its transfer agent to deliver unlegended
      certificates for shares of Common Stock to a transferee of an Investor in
      accordance with the terms of the Securities Purchase Agreement in connection
      with any sale of Registrable Securities with respect to which an Investor has
      entered into a contract for sale prior to the Investor’s receipt of a notice
      from the Company of the happening of any event of the kind described in Section
      3(f) or the first sentence of 3(e) and for which the Investor has not yet
      settled.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    5.          EXPENSES
      OF REGISTRATION.

     

    All
      expenses incurred in connection with registrations, filings or qualifications
      pursuant to Sections 2 and 3, including, without limitation, all registration,
      listing and qualifications fees, printers, legal and accounting fees shall
      be
      paid by the Company. 

     

    6.          INDEMNIFICATION.

     

    With
      respect to Registrable Securities which are included in a Registration Statement
      under this Agreement:

     

    (a)          To
      the fullest extent permitted by law, the Company will, and hereby does,
      indemnify, hold harmless and defend each Investor, the directors, officers,
      partners, employees, agents, representatives of, and each Person, if any, who
      controls any Investor within the meaning of the Securities Act or the Exchange
      Act (each, an “Indemnified
      Person”),
      against any losses, claims, damages, liabilities, judgments, fines, penalties,
      charges, costs, reasonable attorneys’ fees, amounts paid in settlement or
      expenses, joint or several (collectively, “Claims”)
      incurred in investigating, preparing or defending any action, claim, suit,
      inquiry, proceeding, investigation or appeal taken from the foregoing by or
      before any court or governmental, administrative or other regulatory agency,
      body or the SEC, whether pending or threatened, whether or not an indemnified
      party is or may be a party thereto (“Indemnified
      Damages”),
      to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon: (i) any untrue statement or alleged untrue statement of
      a
      material fact in a Registration Statement or any post-effective amendment
      thereto or in any filing made in connection with the qualification of the
      offering under the securities or other “blue sky” laws of any jurisdiction in
      which Registrable Securities are offered (“Blue
      Sky Filing”),
      or
      the omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading; (ii) any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      final prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading; or (iii) any violation or alleged violation by the Company
      of the Securities Act, the Exchange Act, any other law, including, without
      limitation, any state securities law, or any rule or regulation there under
      relating to the offer or sale of the Registrable Securities pursuant to a
      Registration Statement (the matters in the foregoing clauses (i) through (iii)
      being, collectively, “Violations”).
      The
      Company shall reimburse the Investors and each such controlling person promptly
      as such expenses are incurred and are due and payable, for any legal fees or
      disbursements or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 6(a): (x) shall not apply to a Claim by an Indemnified Person arising
      out of or based upon a Violation which occurs in reliance upon and in conformity
      with information furnished in writing to the Company by such Indemnified Person
      expressly for use in connection with the preparation of the Registration
      Statement or any such amendment thereof or supplement thereto; (y) shall not
      be
      available to the extent such Claim is based on a failure of the Investor to
      deliver or to cause to be delivered the prospectus made available by the
      Company, if such prospectus was timely made available by the Company pursuant
      to
      Section 3(c); and (z) shall not apply to amounts paid in settlement of any
      Claim if such settlement is effected without the prior written consent of the
      Company, which consent shall not be unreasonably withheld. Such indemnity shall
      remain in full force and effect regardless of any investigation made by or
      on
      behalf of the Indemnified Person and shall survive the transfer of the
      Registrable Securities by the Investors pursuant to Section 9
      hereof.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b)          In
      connection with a Registration Statement, each Investor agrees to severally
      and
      not jointly indemnify, hold harmless and defend, to the same extent and in
      the
      same manner as is set forth in Section 6(a), the Company, each of its directors,
      each of its officers, employees, representatives, or agents and each Person,
      if
      any, who controls the Company within the meaning of the Securities Act or the
      Exchange Act (each an “Indemnified
      Party”),
      against any Claim or Indemnified Damages to which any of them may become
      subject, under the Securities Act, the Exchange Act or otherwise, insofar as
      such Claim or Indemnified Damages arise out of or is based upon any Violation,
      in each case to the extent, and only to the extent, that such Violation occurs
      in reliance upon and in conformity with written information furnished to the
      Company by such Investor expressly for use in connection with such Registration
      Statement; and, subject to Section 6(d), such Investor will reimburse any legal
      or other expenses reasonably incurred by them in connection with investigating
      or defending any such Claim; provided, however, that the indemnity agreement
      contained in this Section 6(b) and the agreement with respect to contribution
      contained in Section 7 shall not apply to amounts paid in settlement of any
      Claim if such settlement is effected without the prior written consent of such
      Investor, which consent shall not be unreasonably withheld; provided, further,
      however, that the Investor shall be liable under this Section 6(b) for only
      that
      amount of a Claim or Indemnified Damages as does not exceed the net proceeds
      to
      such Investor as a result of the sale of Registrable Securities pursuant to
      such
      Registration Statement. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such Indemnified Party
      and shall survive the transfer of the Registrable Securities by the Investors
      pursuant to Section 9. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(b) with
      respect to any prospectus shall not inure to the benefit of any Indemnified
      Party if the untrue statement or omission of material fact contained in the
      prospectus was corrected and such new prospectus was delivered to each Investor
      prior to such Investor’s use of the prospectus to which the Claim
      relates.

     

    (c)          Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, such Indemnified Person
      or
      Indemnified Party shall, if a Claim in respect thereof is to be made against
      any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Person or the Indemnified Party, as
      the
      case may be; provided, however, that an Indemnified Person or Indemnified Party
      shall have the right to retain its own counsel with the fees and expenses of
      not
      more than one (1) counsel for such Indemnified Person or Indemnified Party
      to be
      paid by the indemnifying party, if, in the reasonable opinion of counsel
      retained by the indemnifying party, the representation by such counsel of the
      Indemnified Person or Indemnified Party and the indemnifying party would be
      inappropriate due to actual or potential differing interests between such
      Indemnified Person or Indemnified Party and any other party represented by
      such
      counsel in such proceeding. The Indemnified Party or Indemnified Person shall
      cooperate fully with the indemnifying party in connection with any negotiation
      or defense of any such action or claim by the indemnifying party and shall
      furnish to the indemnifying party all information reasonably available to the
      Indemnified Party or Indemnified Person which relates to such action or claim.
      The indemnifying party shall keep the Indemnified Party or Indemnified Person
      fully apprised at all times as to the status of the defense or any settlement
      negotiations with respect thereto. No indemnifying party shall be liable for
      any
      settlement of any action, claim or proceeding effected without its prior written
      consent; provided, however, that the indemnifying party shall not unreasonably
      withhold, delay or condition its consent. No indemnifying party shall, without
      the prior written consent of the Indemnified Party or Indemnified Person,
      consent to entry of any judgment or enter into any settlement or other
      compromise which does not include as an unconditional term thereof the giving
      by
      the claimant or plaintiff to such Indemnified Party or Indemnified Person of
      a
      release from all liability in respect to such claim or litigation. Following
      indemnification as provided for hereunder, the indemnifying party shall be
      subrogated to all rights of the Indemnified Party or Indemnified Person with
      respect to all third parties, firms or corporations relating to the matter
      for
      which indemnification has been made. The failure to deliver written notice
      to
      the indemnifying party within a reasonable time of the commencement of any
      such
      action shall not relieve such indemnifying party of any liability to the
      Indemnified Person or Indemnified Party under this Section 6, except to the
      extent that the indemnifying party is prejudiced in its ability to defend such
      action.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d)          The
      indemnification required by this Section 6 shall be made by periodic payments
      of
      the amount thereof during the course of the investigation or defense, as and
      when bills are received or Indemnified Damages are incurred.

     

    (e)          The
      indemnity agreements contained herein shall be in addition to (i) any cause
      of action or similar right of the Indemnified Party or Indemnified Person
      against the indemnifying party or others, and (ii) any liabilities the
      indemnifying party may be subject to pursuant to the law.

     

    7.          CONTRIBUTION.

     

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided, however, that: (i) no seller of
      Registrable Securities guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the Securities Act) shall be entitled to
      contribution from any seller of Registrable Securities who was not guilty of
      fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
      Securities shall be limited in amount to the net amount of proceeds received
      by
      such seller from the sale of such Registrable Securities.

     

    8.          REPORTS
      UNDER THE EXHANGE ACT.

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the Securities Act or any similar rule or regulation of the SEC that
      may
      at any time permit the Investors to sell securities of the Company to the public
      without registration (“Rule
      144”)
      the
      Company agrees to:

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (a)          make
      and keep public information available, as those terms are understood and defined
      in Rule 144;

     

    (b)          commencing
      at the time the Company becomes obligated to make filings under the Exchange
      Act, file with the SEC in a timely manner all reports and other documents
      required of the Company under the Securities Act and the Exchange Act so long
      as
      the Company remains subject to such requirements (it being understood that
      nothing herein shall limit the Company’s obligations under Section 4(c) of the
      Securities Purchase Agreement) and the filing of such reports and other
      documents as are required by the applicable provisions of Rule 144;
      and

     

    (c)          furnish
      to each Investor so long as such Investor owns Registrable Securities, promptly
      upon request, (i) a written statement by the Company that it has complied with
      the reporting requirements of Rule 144, the Securities Act and the Exchange
      Act,
      (ii) a copy of the most recent annual or quarterly report of the Company and
      such other reports and documents so filed by the Company, and (iii) such other
      information as may be reasonably requested to permit the Investors to sell
      such
      securities pursuant to Rule 144 without registration.

     

    9.          AMENDMENT
      OF REGISTRATION RIGHTS.

     

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with the written consent of the Company and Investors
      who
      then hold at least two-thirds (2/3) of the Registrable Securities. Any amendment
      or waiver effected in accordance with this Section 9 shall be binding upon
      each Investor and the Company. No such amendment shall be effective to the
      extent that it applies to fewer than all of the holders of the Registrable
      Securities. No consideration shall be offered or paid to any Person to amend
      or
      consent to a waiver or modification of any provision of any of this Agreement
      unless the same consideration also is offered to all of the parties to this
      Agreement.

     

    10.          MISCELLANEOUS.

     

    (a)          A
      Person is deemed to be a holder of Registrable Securities whenever such Person
      owns or is deemed to own of record such Registrable Securities. If the Company
      receives conflicting instructions, notices or elections from two (2) or more
      Persons with respect to the same Registrable Securities, the Company shall
      act
      upon the basis of instructions, notice or election received from the registered
      owner of such Registrable Securities.

     

    (b)          Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one (1) business day after deposit with a nationally recognized
      overnight delivery service, in each case properly addressed to the party to
      receive the same. The addresses and facsimile numbers for such communications
      shall be:

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to the Company, to:

            	
              IQ
                Medical Corp.

            
	 	
              500
                Australian Avenue South - Suite 700

            
	 	
              West
                Palm Beach, Florida 33401

            
	 	
              Attention:    
                Robert V. Rudman

            
	 	
              Telephone:   
                (561) 514-0018

            
	 	
              Facsimile:      
                (561) 514-0195

            
	 	 
	
              With
                Copy to:

            	
              Gunster
                Yoakley & Stewart, P.A.

            
	 	
              Broward
                Financial Centre - Suite 1400

              500
                East Broward Blvd.

            
	 	
              Fort
                Lauderdale, Florida 33394

            
	 	
              Attention:    
                Robert C. White, Jr. Esq.

            
	 	
              Telephone:  
                (954) 468-1360

            
	 	
              Facsimile:     
                (954) 888-2037

            
	 	 

    

    If
      to an
      Investor, to its address and facsimile number on the Schedule of Investors
      attached hereto, with copies to such Investor’s representatives as set forth on
      the Schedule of Investors or to such other address and/or facsimile number
      and/or to the attention of such other person as the recipient party has
      specified by written notice given to each other party five (5) days prior to
      the
      effectiveness of such change. Written confirmation of receipt (A) given by
      the
      recipient of such notice, consent, waiver or other communication, (B)
      mechanically or electronically generated by the sender’s facsimile machine
      containing the time, date, recipient facsimile number and an image of the first
      page of such transmission or (C) provided by a courier or overnight courier
      service shall be rebuttable evidence of personal service, receipt by facsimile
      or receipt from a nationally recognized overnight delivery service in accordance
      with clause (i), (ii) or (iii) above, respectively.

     

    (c)          Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    (d)          The
      laws of the State of New Jersey shall govern all issues concerning the relative
      rights of the Company and the Investors as its stockholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of New Jersey,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of New Jersey or any other jurisdiction) that would cause
      the application of the laws of any jurisdiction other than the State of New
      Jersey. Each party hereby irrevocably submits to the non-exclusive jurisdiction
      of the Superior Courts of the State of New Jersey, sitting in Hudson County,
      New
      Jersey and federal courts for the District of New Jersey sitting Newark, New
      Jersey, 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 suit, action or proceeding,
      any claim that it is not personally subject to the jurisdiction of any such
      court, that such suit, action or proceeding is brought in an inconvenient forum
      or that the venue of such suit, action or proceeding is improper. Each party
      hereby irrevocably waives personal service of process and consents to process
      being served in any such suit, action or proceeding by mailing a copy thereof
      to
      such party at the address for such 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. If any provision of
      this
      Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
      or unenforceability shall not affect the validity or enforceability of the
      remainder of this Agreement in that jurisdiction or the validity or
      enforceability of any provision of this Agreement in any other jurisdiction.
      EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
      TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (e)          This
      Agreement, the Irrevocable Transfer Agent Instructions, the Securities Purchase
      Agreement and related documents including the Convertible Debenture and the
      Escrow Agreement dated the date hereof by and among the Company, the Investors
      set forth on the Schedule of Investors attached hereto, and David Gonzalez,
      Esq.
      (the “Escrow
      Agreement”)
      and
      the Security Agreement dated the date hereof (the “Security
      Agreement”)
      constitute the entire agreement among the parties hereto with respect to the
      subject matter hereof and thereof. There are no restrictions, promises,
      warranties or undertakings, other than those set forth or referred to herein
      and
      therein. This Agreement, the Irrevocable Transfer Agent Instructions, the
      Securities Purchase Agreement and related documents including the Convertible
      Debenture, the Escrow Agreement and the Security Agreement supersede all prior
      agreements and understandings among the parties hereto with respect to the
      subject matter hereof and thereof.

     

    (f)          This
      Agreement shall inure to the benefit of and be binding upon the permitted
      successors and assigns of each of the parties hereto.

     

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

     

    (h)          This
      Agreement may be executed in identical counterparts, each of which shall be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by facsimile transmission of a copy of this Agreement bearing the
      signature of the party so delivering this Agreement.

     

    (i)          Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent and no rules of strict construction
      will
      be applied against any party.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (j)          This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

     

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Investor Registration Rights Agreement to be duly
      executed as of day and year first above written.

     

    
      	 	
              COMPANY:

            
	 	
              IQ
                MEDICAL CORP.

            
	 	 
	 	
              By:          /s/
                Robert V.
                Rudman                              

            
	 	
              Name: 
                Robert V. Rudman

            
	 	
              Title:    
                CFO

            
	 	 

    

    

    

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      I

     

    SCHEDULE
      OF INVESTORS

     

    
      	
              Name

            	 	
              Signature

            	 	
              Address/Facsimile
                

              Number
                of Investors

            
	 	 	 	 	 
	
              Cornell
                Capital Partners, LP

            	 	
              By:          Yorkville
                Advisors, LLC

            	 	
              101
                Hudson Street - Suite 3700

            
	 	 	
              Its:          General
                Partner

            	 	
              Jersey
                City, NJ 07303

            
	 	 	 	 	
              Facsimile: (201)
                985-8266

            
	 	 	 	 	 
	 	 	
              By:          /s/
                Mark
                Angelo                              

            	 	 
	 	 	
              Name:    Mark
                Angelo

            	 	 
	 	 	
              Its:          Portfolio
                Manager

            	 	 
	 	 	 	 	 
	
              With
                a copy to: 

            	 	
              Troy
                Rillo, Esq.

            	 	
              101
                Hudson Street - Suite 3700

            
	 	 	 	 	
              Jersey
                City, NJ 07302

            
	 	 	 	 	
              Facsimile:
                (201) 985-8266

            
	 	 	 	 	 

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF NOTICE OF EFFECTIVENESS

    OF
      REGISTRATION STATEMENT

     

    Attention:          

    

    Re:          IQ
      MEDICAL CORP.

    

    Ladies
      and Gentlemen:

    

    We
      are
      counsel to IQ Medical Corp., a ______ corporation (the “Company”),
      and
      have represented the Company in connection with that certain Securities Purchase
      Agreement (the “Securities
      Purchase Agreement”)
      entered into by and among the Company and the investors named therein
      (collectively, the “Investors”)
      pursuant to which the Company issued to the Investors shares of its Common
      Stock, par value $____ per share (the “Common
      Stock”).
      Pursuant to the Purchase Agreement, the Company also has entered into a
      Registration Rights Agreement with the Investors (the “Investor
      Registration Rights Agreement”)
      pursuant to which the Company agreed, among other things, to register the
      Registrable Securities (as defined in the Registration Rights Agreement) under
      the Securities Act of 1933, as amended (the “Securities
      Act”).
      In
      connection with the Company’s obligations under the Registration Rights
      Agreement, on ____________ ____, the Company filed a Registration Statement
      on
      Form ________ (File No. 333-_____________) (the “Registration
      Statement”)
      with
      the Securities and Exchange SEC (the “SEC”)
      relating to the Registrable Securities which names each of the Investors as
      a
      selling stockholder there under.

     

    In
      connection with the foregoing, we advise you that a member of the SEC’s staff
      has advised us by telephone that the SEC has entered an order declaring the
      Registration Statement effective under the Securities Act at [ENTER
      TIME OF EFFECTIVENESS]
      on
[ENTER
      DATE OF EFFECTIVENESS]
      and we
      have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that
      any stop order suspending its effectiveness has been issued or that any
      proceedings for that purpose are pending before, or threatened by, the SEC
      and
      the Registrable Securities are available for resale under the Securities Act
      pursuant to the Registration Statement.

     

    Very
      truly yours,

    

    [Law
      Firm]

    

    By:                                                            

    

    cc:          [LIST
      NAMES OF INVESTORS]

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