Document:

Exhibit 10.1

                          FIRST AMENDMENT TO THE TRUST
                         AGREEMENT FOR THE DEFERRAL PLAN
                          FOR SENIOR EXECUTIVE OFFICERS
                            OF TRIARC COMPANIES, INC.

     WHEREAS,  Triarc Companies,  Inc., a Delaware  Corporation (the "Company"),
has adopted the Deferral Plan for Senior Executive Officers of Triarc Companies,
Inc., effective December 14, 2000 (the "Plan");

     WHEREAS,  the Company and  Wilmington  Trust  Company,  a Delaware bank and
trust company (the  "Trustee"),  entered into a Trust Agreement for the Deferral
Plan for Senior Executive Officers of Triarc Companies,  Inc., as of January 23,
2001 (the  "Trust  Agreement"),  under the Plan in order to provide a source for
the payment of benefits  under the Plan to Nelson Peltz,  a  participant  in the
Plan;

     WHEREAS,  Company has  determined  that it is  desirable to amend the Trust
Agreement to identify in the name of the Trust  Agreement  that the trust formed
pursuant to the Trust Agreement is in respect of Nelson Peltz;

     WHEREAS,  Section  12(a) of the  Trust  Agreement  provides  that the Trust
Agreement may be amended by a written instrument executed by the Trustee and the
Company; and

     WHEREAS,  the  Trustee  and the  Company  each  desire  to amend  the Trust
Agreement as set forth below.

     NOW,  THEREFORE,  the Trustee and the Company  hereby  agree that the Trust
Agreement shall be amended, effective as of April 6, 2001, as follows:

     1. The title of the Trust Agreement is hereby amended to read as follows:

        TRUST AGREEMENT FOR THE DEFERRAL PLAN FOR SENIOR EXECUTIVE OFFICERS OF
        TRIARC COMPANIES, INC. (PARTICIPANT NELSON PELTZ)

     2. The third  WHEREAS  clause of the Trust  Agreement is hereby  amended to
read as follows:

     WHEREAS,  Company wishes to establish a trust,  which shall be known as the
"Triarc  Companies,  Inc. Deferral Plan Trust  (Participant  Nelson Peltz)" (the
"Trust"),  and to  contribute  to the Trust  assets that shall be held  therein,
subject  to the  claims  of  Company's  creditors  in  the  event  of  Company's
"Insolvency,"  as  herein  defined,   until  paid  to  the  Participant  or  his
beneficiary(ies),  as the  case  may be,  in such  manner  and at such  times as
specified in the Plan;

          EXECUTED as of the 6th day of April, 2001.

                                                TRIARC COMPANIES, INC.

                                                By: /s/ Brian L. Schorr
                                                    ---------------------------
                                                    Brian L. Schorr
                                                    Executive Vice President

                                                WILMINGTON TRUST COMPANY

                                                By: /s/ Virginia E. Machamer
                                                    --------------------------
                                                    Virginia E. Machamer
                                                    Assistant Vice PresidentExhibit 10.2

                          FIRST AMENDMENT TO THE TRUST
                         AGREEMENT FOR THE DEFERRAL PLAN
                          FOR SENIOR EXECUTIVE OFFICERS
                            OF TRIARC COMPANIES, INC.

     WHEREAS,  Triarc Companies,  Inc., a Delaware  Corporation (the "Company"),
has adopted the Deferral Plan for Senior Executive Officers of Triarc Companies,
Inc., effective December 14, 2000 (the "Plan");

     WHEREAS,  the Company and  Wilmington  Trust  Company,  a Delaware bank and
trust company (the  "Trustee"),  entered into a Trust Agreement for the Deferral
Plan for Senior Executive Officers of Triarc Companies,  Inc., as of January 23,
2001 (the  "Trust  Agreement"),  under the Plan in order to provide a source for
the payment of benefits under the Plan to Peter May, a participant in the Plan;

     WHEREAS,  Company has  determined  that it is  desirable to amend the Trust
Agreement to identify in the name of the Trust  Agreement  that the trust formed
pursuant to the Trust Agreement is in respect of Peter May;

     WHEREAS,  Section  12(a) of the  Trust  Agreement  provides  that the Trust
Agreement may be amended by a written instrument executed by the Trustee and the
Company; and

     WHEREAS,  the  Trustee  and the  Company  each  desire  to amend  the Trust
Agreement as set forth below.

     NOW,  THEREFORE,  the Trustee and the Company  hereby  agree that the Trust
Agreement shall be amended, effective as of April 6, 2001, as follows:

     1. The title of the Trust Agreement is hereby amended to read as follows:

            TRUST AGREEMENT FOR THE DEFERRAL PLAN FOR SENIOR EXECUTIVE
            OFFICERS OF TRIARC COMPANIES, INC. (PARTICIPANT PETER MAY)

     2. The third  WHEREAS  clause of the Trust  Agreement is hereby  amended to
read as follows:

     WHEREAS,  Company wishes to establish a trust,  which shall be known as the
"Triarc  Companies,  Inc.  Deferral  Plan Trust  (Participant  Peter  May)" (the
"Trust"),  and to  contribute  to the Trust  assets that shall be held  therein,
subject  to the  claims  of  Company's  creditors  in  the  event  of  Company's
"Insolvency,"  as  herein  defined,   until  paid  to  the  Participant  or  his
beneficiary(ies),  as the  case  may be,  in such  manner  and at such  times as
specified in the Plan;

            EXECUTED as of the 6th day of April, 2001.

                                         TRIARC COMPANIES, INC.

                                         By: /s/ Brian L. Schorr
                                             -----------------------------
                                             Brian L. Schorr
                                             Executive Vice President

                                         WILMINGTON TRUST COMPANY

                                         By: /s/ Virginia E. Machamer
                                             ---------------------------
                                             Virginia E. Machamer
                                             Assistant Vice PresidentDGI BIOTECHNOLOGIES, INC.
                       AMENDED AND RESTATED STOCKHOLDERS'
                                    AGREEMENT

                                  JUNE 15, 2001

<PAGE>

                                TABLE OF CONTENTS
                                                                            PAGE
                                                                            ----

SECTION 1.     Definitions                                                     1
               -----------
SECTION 2.     Certain Covenants of the Corporation.                           4
               ------------------------------------
2.1     Meetings  of  the  Board  of  Directors                                4
        ---------------------------------------
2.2     Reservation  of  Shares  of  Class A Common Stock and Series B Preferred
        ------------------------------------------------------------------------
        Stock,  Etc.                                                           5
        ---------
2.3     Preemptive  Rights.                                                    5
        ------------------
2.4     Access  to  Records                                                    6
        -------------------
2.5     Financial  Reports                                                     6
        ------------------
2.6     Budget  and  Operating  Forecast                                       7
        --------------------------------
2.7     System  of  Accounting                                                 8
        ----------------------
2.8     Restriction  on  Transfer  Rights;  Confidentiality                    8
        ---------------------------------------------------
2.9     Duration  of  Section.                                                 8
        ---------------------
SECTION 3.     Transfer of Securities.                                         9
               ----------------------
3.1     Restriction  on  Transfer.                                             9
        -------------------------
3.2     Restrictive  Legend                                                    9
        -------------------
3.3     Notice  of  Transfer                                                  10
        --------------------
3.4     Required  Registration                                                11
        ----------------------
3.5     Piggyback  Registration.                                              12
        -----------------------
3.6     Registrations  on  Form  S-2  and  S-3                                13
        --------------------------------------
3.7     Preparation  and  Filing                                              13
        ------------------------
3.8     Expenses                                                              15
        --------
3.9     Rule  144  Reporting                                                  16
        --------------------
3.10     Indemnification.                                                     16
         ---------------
3.11     "Market  Stand-Off"  Agreement                                       18
         ------------------------------
3.12     Removal  of  Legends,  Etc.                                          19
         ---------------------------
3.13     Tag-Along  Rights                                                    19
         -----------------
3.14     Drag-Along  Rights.                                                  20
         ------------------
SECTION 4.     Securities Act Registration Statements                         21
               --------------------------------------
SECTION 5.     Election of Directors.                                         21
               ---------------------
5.1     Voting  for  Directors                                                21
        ----------------------
5.2     Cooperation  of  the  Corporation                                     22
        ---------------------------------
5.3     Notices                                                               22
        -------
5.4     Board  of  Directors'  Committees                                     22
        ---------------------------------
5.5     Removal                                                               22
        -------
5.6     Duration  of  Section                                                 23
        ---------------------
SECTION 6.     Remedies                                                       23
               --------
SECTION 7.     Successors and Assigns                                         23
               ----------------------
SECTION 8.     Duration of Agreement                                          24
               ---------------------
SECTION 9.     Entire Agreement                                               24
               ----------------
SECTION 10.     Each Party the Drafter; Construction                          24
                ------------------------------------
SECTION 11.     Notices                                                       24
                -------
SECTION 12.     Amendments and Waivers                                        25
                ----------------------
SECTION 13.     Counterparts                                                  26
                ------------
SECTION 14.     Headings                                                      26
                --------
SECTION 15.     Nouns and Pronouns                                            26
                ------------------
SECTION 16.     Severability                                                  26
                ------------
SECTION 17.     Governing Law                                                 26
                -------------
SECTION 18.     Titles and Subtitles                                          26
                --------------------
SECTION 19.     Restrictions on Public Disclosure                             26
                ---------------------------------

<PAGE>

                  AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT
     AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT dated as of June 15, 2001 (the
"Agreement"), is entered into by and among DGI BIOTECHNOLOGIES, INC., a Delaware
corporation  (the  "Corporation"),  NEW  BRUNSWICK  SCIENTIFIC  CO., INC., a New
Jersey corporation (hereinafter referred to as the "Existing Investor"), each of
the  holders  of  the  Corporation's  Class  A Common Stock listed on Schedule I
attached  hereto  (the "Founders"), BankInvest Biomedical Venture Fund III ps, a
Danish  venture  fund  with  limited  liability  ("BankInvest"), and each of the
investors  who  sign  counterpart  signature  pages to this Agreement, and whose
names  are  included on Schedule II hereto, from time to time as contemplated in
Section  1.03 of the Series B Convertible Preferred Stock Purchase Agreement, of
even  date herewith (together with BankInvest, the "New Investors," and together
with  the Existing Investor, the "Investors").  In connection with the foregoing
sentence,  the  parties  hereto agree and acknowledge that the Corporation shall
amend Schedule II from time to time to include one or more New Investors without
the  additional  consent  of  any  of  the  parties  hereto.
     WHEREAS,  the  Corporation,  the  Existing  Investor  and  the Founders are
parties  to  a  Stockholders'  Agreement  dated  May  5,  2000  (the  "Original
Stockholders'  Agreement");
WHEREAS,  the  Corporation  and  the  New Investors are entering into a Series B
Convertible  Preferred  Stock  Purchase  Agreement,  of  even date herewith (the
"Series  B  Purchase  Agreement");
WHEREAS,  the  Original  Stockholders'  Agreement may not be amended without the
written  consent  of  the  Corporation  and  the  Existing  Investor;  and
WHEREAS,  in order to induce the Corporation to enter into the Series B Purchase
Agreement  and  to  induce  the New Investors to invest funds in the Corporation
pursuant  to  the  Series  B  Purchase  Agreement, the Existing Investor and the
Founders  hereby  agree  to  waive their rights under and terminate the Original
Stockholders  Agreement,  and  the  Corporation,  the Founders and the Investors
hereby  agree  that  this  Agreement shall govern the rights of the parties with
regard  to  the  subject  matter  contained  herein.
NOW,  THEREFORE,  in  consideration  of  the  foregoing  and  of  the respective
covenants  and  undertakings of the Corporation, the Investors, and the Founders
hereunder,  the  parties  hereto  do  hereby  agree  as  follows:
SECTION  1.     Definitions
                -----------
 .  As  used  herein,  the  following  terms  shall have the following respective
meanings:
     Affiliate  of  any  Person  shall  mean  any  Person directly or indirectly
     ---------
controlling,  controlled  by  or  under  common  control  with  such  Person.
     -
Board  shall  mean  the  Board  of  Directors  of  the  Corporation.
-----
                                        1
<PAGE>

Budget  shall  have  the  meaning  set  forth  in  Section  2.7  hereof.
------
Certificate  shall mean the Amended and Restated Certificate of Incorporation of
-----------
the  Corporation.
Class  A  Common  Stock shall mean the Class A Common Stock, par value $.001, of
-----------------------
the  Corporation.
--
Class  B  Common  Stock shall mean the Class B Nonvoting Common Stock, par value
-----------------------
$.001,  of  the  Corporation.
--
Commission  shall  mean  the  U.S.  Securities  and  Exchange  Commission.
----------
Common  Stock  shall mean either Class A Common Stock or Class B Common Stock of
-------------
the  Corporation.
Equity  Percentage  shall  mean, as to an Investor, that percentage figure which
------------------
expresses  the  ratio  that  (a)  the number of shares of issued and outstanding
--
Common  Stock  then  owned by such Investor bears to (b) the aggregate number of
--
shares  of issued and outstanding Common Stock then owned by all stockholders on
--
a  fully  diluted  basis.  For  purposes  solely of the computation set forth in
clauses  (a)  and  (b)  above,  all issued and outstanding securities held by an
Investor  that are convertible into or exercisable or exchangeable for shares of
Common  Stock  (including  any issued and issuable shares of Preferred Stock) or
for  any  such  convertible,  exercisable  or  exchangeable securities, shall be
treated as having been so converted, exercised or exchanged at the rate or price
at which such securities are convertible, exercisable or exchangeable for shares
of  Common  Stock  in  effect  at  the  time in question (which, for purposes of
Section  2.3  of  this  Agreement,  shall  be  at  the  time  of delivery by the
Corporation  of the notice of the Offer contemplated by Section 2.3(b)), whether
or  not such securities are at such time immediately convertible, exercisable or
exchangeable.
Exchange  Act  shall  mean  the  Securities  Exchange  Act  of 1934, as amended.
-------------
Excluded  Forms  shall  have  the meaning given such term in Section 3.5 hereof.
---------------
Excluded  Securities  shall  mean,  collectively:
--------------------
     (i)  the  Reserved  Shares;
(ii)  Common  Stock issued or issuable to officers, directors or employees of or
consultants  or  independent  contractors  to  the  Corporation, pursuant to any
written  agreement, plan or arrangement to purchase, or rights to subscribe for,
such Common Stock, including Class B Common Stock issued pursuant to any options
granted  under  the  Corporation's  Stock Option Plan, and which, as a condition
precedent  to  the  issuance  of  such  shares, provides for the vesting of such
shares and subjects such shares to restrictions on transfers and rights of first
offer in favor of the Corporation; provided, however, that the maximum number of
                                   --------  -------
shares  of Class B Common Stock heretofore or hereafter issuable pursuant to the
                                        2
<PAGE>

Corporation's  Stock Option Plan and all such agreements, plans and arrangements
shall  not  exceed  994,020  shares (subject to adjustment as required to comply
with  any  anti-dilution  rights  set  forth  in  any  such  agreement,  plan or
arrangement);
(iii)  Common  Stock  issued  as  a  stock  dividend payable in shares of Common
Stock,  or  capital  stock  of  any  class  issuable  upon  any  subdivision,
recombination,  split-up or reverse stock split of all the outstanding shares of
such  class  of  capital  stock  of  the  Corporation;
(iv)  any  securities  issued  pursuant to the acquisition by the Corporation of
any  other corporation, partnership, joint venture, trust or other entity by any
merger,  stock acquisition, reorganization, purchase of substantially all assets
or otherwise in which the Corporation, or its stockholders of record immediately
prior  to the effective date of such transaction, directly or indirectly, own at
least  a  majority  of  the voting power of the acquired entity or the resulting
entity  after  such  transaction;
(v)  shares  of  Preferred  Stock  or  Common  Stock  issued  upon  exercise  of
outstanding  warrants issued to Morgan & Finnegan, L.L.P., Privateq Advisors AG,
Summercloud  Bay,  Inc.,  and  shares  of  Common  Stock issued upon exercise of
outstanding  warrants  issued  to  Richard Kouri, Robert Wurtzberger, Dr. Sidney
Udenfriend,  Dr.  Sidney  Spector,  and  John  Prendergast;  and
(vi)  shares  of  Preferred  Stock  or  Common  Stock  issued  upon  exercise or
conversion of warrants, options or other rights to purchase securities issued to
persons  or  entities with whom the Company has business relationships, provided
that  such  issuances are for other than primarily equity financing purposes and
are  approved  by  the  Board.
     Notice  of  Acceptance  shall  have the meaning set forth in Section 2.3(c)
     ----------------------
hereof.
Offer  shall  have  the  meaning  set  forth  in  Section  2.3(b)  hereof.
-----
Offered Securities shall mean, except for Excluded Securities, (i) any shares of
------------------
Common  Stock,  Preferred Stock or any other equity security of the Corporation,
(ii) any debt security or capitalized lease with any equity feature with respect
to  the  Corporation,  or  (iii) any option, warrant or other right to subscribe
for,  purchase  or  otherwise acquire any such equity security, debt security or
capitalized  lease.
Other  Shares  shall  have  the  meaning  set  forth  in  Section 3.5(e) hereof.
-------------
Person  means  and includes an individual corporation, partnership, association,
------
limited  liability  company,  trust,  estate  or  other  entity.
Preferred  Directors  shall  have  the  meaning set forth in Section 5.1 hereof.
--------------------
                                        3
<PAGE>

Preferred  Stock  shall  mean  shares  of  Series A Preferred Stock and Series B
----------------
Preferred  Stock.
-----
Preferred  Stockholders  shall  mean,  collectively,  all  holders  of shares of
-----------------------
Preferred  Stock  of  the  Corporation.
------
Qualified  Public  Offering  shall  have  the  meaning given it in Section 2.10.
---------------------------
Refused  Securities  shall  have the meaning set forth in Section 2.3(e) hereof.
-------------------
Reserved  Shares  shall  mean the shares of Class A Common Stock reserved by the
----------------
Corporation  for  issuance  upon  the  conversion  of  the  Preferred  Stock.
--
Restricted  Securities  shall  mean  any  of  the  Preferred  Stock  held by the
----------------------
Investors  or  any of their permitted transferees, and any of the Class A Common
--------
Stock issued or issuable upon the conversion of such Preferred Stock, all shares
of  Class  A  Common Stock issued or issuable in respect thereof by way of stock
splits,  stock  dividends,  stock  combinations,  recapitalizations  or  like
occurrences, and any other shares of Class A Common Stock or other securities of
the  Corporation  which  may  be  issued  hereafter  to  the  Investors or their
permitted  transferees  which  are convertible into or exercisable for shares of
Class  A Common Stock (including, without limitation, other classes or series of
preferred  stock,  warrants,  options or other rights to purchase Class A Common
Stock  or  convertible  debentures or other convertible debt securities) and the
Class A Common Stock issued or issuable upon such conversion or exercise of such
other  securities,  which have not been sold (a) in connection with an effective
registration  statement filed pursuant to the Securities Act, or (b) pursuant to
Rule  144  or  Rule 144A promulgated by the Commission under the Securities Act.
Securities  Act  shall  mean  the  Securities  Act  of  1933,  as  amended.
---------------
Series A Preferred Stock shall mean any series, or all collectively, of Series A
------------------------
Preferred  Stock,  Series  A-1 Preferred Stock or Series A-2  Preferred Stock of
the  Corporation.
Series B Preferred Stock shall mean Series B Preferred Stock of the Corporation.
------------------------
Stockholders  shall  mean  all  holders  of  capital  stock  of the Corporation.
------------
Target  Month  shall  have  the  meaning  set  forth  in  Section 2.6(a) hereof.
-------------
Transfer  shall  include  any disposition of any Restricted Securities or of any
--------
interest therein which would constitute a sale thereof within the meaning of the
--
Securities  Act.
SECTION  2.     Certain  Covenants  of  the  Corporation.
                ----------------------------------------
2.1     Meetings  of  the  Board  of  Directors
        ---------------------------------------
 .  The  Corporation  shall  call,  and  use  its  best  efforts to have, regular
meetings  of the Board not less often than quarterly.  The Corporation shall pay
all  reasonable  and  appropriately  documented  travel  expenses  and  other
out-of-pocket  expenses  incurred  by  directors  who  are  not  employed by the
Corporation  in  connection with attendance at meetings to transact the business
                                        4
<PAGE>

of  the  Corporation  or  attendance  at  meetings of the Board or any committee
thereof.
2.2     Reservation  of  Shares  of  Class A Common Stock and Series B Preferred
        ------------------------------------------------------------------------
Stock,  Etc.
   ---------
  The  Corporation  shall  at  all times have authorized and reserved out of its
authorized  but  unissued shares of Class A Common Stock, a sufficient number of
shares  of  Class  A  Common Stock to provide for the conversion of the Series A
Preferred  Stock  and Series B Preferred Stock and a sufficient number of shares
of  Series  B  Preferred Stock to provide for the purchase of Series B Preferred
Stock  by  the  New  Investors.  Neither  the issuance of the Series B Preferred
Stock nor the shares of Class A Common Stock issuable upon the conversion of the
Series  A  Preferred  Stock  or  Series  B Preferred Stock shall be subject to a
preemptive  right  of  any  other Stockholder, except for rights of the Existing
Investor  under  the  Original  Stockholders' Agreement, all of which are hereby
waived.
2.3     Preemptive  Rights.
        ------------------
(a)     The  Corporation shall not issue, sell or exchange, agree to issue, sell
or exchange, or reserve or set aside for issuance, sale or exchange, any Offered
     Securities  unless in each case the Corporation shall have first offered to
sell  to each Investor an amount of such Offered Securities equal to that amount
of Offered Securities which such Investor would be entitled to purchase based on
such Investor's Equity Percentage, on the terms set forth herein.  Each Investor
may  delegate  its  rights  and obligations with respect to such Offer to one or
more  Affiliates,  which  Affiliates  shall  thereafter also be deemed to be the
"Investor"  for  the  purpose  of  applying  this  Section  2.3  to  such Offer.
(b)     The  Corporation  shall  deliver  to each Investor written notice of the
offer  to  sell  the  Offered  Securities,  specifying  the  price and terms and
conditions of the offer (the "Offer").  The Offer by its terms shall remain open
and irrevocable for a period of twenty (20 days from the date of its delivery to
such  Investor  (the  "20-Day  Period").
(c)     Each Investor shall evidence its intention to accept the Offer, in whole
or  in  part, by delivering a written notice signed by an Investor setting forth
the  number  of  shares  of  the Offered Securities that such Investor elects to
purchase  (the  "Notice  of  Acceptance").  The  Notice  of  Acceptance  must be
delivered  to  the  Corporation  prior  to  the  end  of  the  20-Day  Period.
(d)     If  an Investor tenders its Notice of Acceptance prior to the end of the
20-Day  Period  indicating its intention to purchase the Offered Securities, the
Corporation  shall  schedule  a  closing of the sale of such Offered Securities.
Upon  the  closing  of  the sale of the Offered Securities to be purchased by an
Investor,  such Investor shall (i) purchase from the Corporation that portion of
the  Offered  Securities  for  which it tendered a Notice of Acceptance upon the
terms  specified in the Offer, and (ii) execute and deliver an agreement further
restricting  transfer  of  such Offered Securities substantially as set forth in
Section  3.1,  3.2  and 3.3 of this Agreement.  In addition, with respect to the
Offered  Securities  being  purchased  by  an  Affiliate  of  an  Investor,  the
Corporation  shall  provide the Affiliate with the rights and benefits set forth
in  this  Agreement,  and  such  Affiliate  shall  become  a  party hereto.  The
obligation  of  an  Investor  to  purchase  such  Offered  Securities is further
                                        5
<PAGE>

conditioned  upon  the  preparation  by  the Corporation of a purchase agreement
embodying the terms of the Offer, which shall be reasonably satisfactory in form
and  substance  to  such  Investor  and  the  Investor's  counsel.
(e)     The  Corporation  shall  have  one  hundred  eighty  (180) days from the
expiration  of  the 20-Day Period, to sell the Offered Securities refused by any
of  the Investors (the "Refused Securities") to any other person or persons, but
only  upon  terms  and conditions which are in all material respects (including,
without  limitation,  price  and  interest rate) no more favorable to such other
person  or  persons,  and  no  less favorable to the Corporation, than those set
forth  in  the  Offer.
(f)     In  each  case,  any  Offered  Securities  not  purchased  either by the
Investors  or by any other person in accordance with this Section 2.3 may not be
sold  or  otherwise  disposed  of  until they are again offered to the Investors
under  the  procedures  specified  in  this  Section  2.3.
(g)     An  Investor  may, by prior written consent, waive its rights under this
Section  2.3.  Such  a  waiver  shall  be deemed a limited waiver and shall only
apply  to  the  extent  specifically  set  forth  in the written consent of such
Investor.
(h)     Notwithstanding  the  foregoing,  the  Corporation  may  issue shares of
Series  B Preferred Stock to New Investors in one or more Subsequent Closings as
contemplated  in  Section  1.03 of the Series B Purchase Agreement without being
subject  to  the  preemptive  rights  set  forth  in  this  Section  2.3.
2.4     Access  to  Records
        -------------------
 .  The  Corporation shall afford to each Investor and such Investor's employees,
counsel  and  other  authorized  representatives, on reasonable notice, free and
full  access,  at all reasonable times and for reasonable periods of time during
normal  business  hours,  to  all  of  the  books, records and properties of the
Corporation  and  to  all  officers  and  employees  of  the  Corporation.
2.5     Financial  Reports
        ------------------
 .  Until  such  time  that  the Corporation has a class of its equity securities
registered  under  the  Exchange  Act and is required to file reports thereunder
pursuant to Sections 13 or 15(d) of the Exchange Act, except with respect to the
obligation  set  forth  in  Section 2.5(e)(i) hereunder which shall survive such
time, the Corporation shall furnish each Investor with the financial information
described  below:
(a)     Within 20 days after the last day of each month (the "Target Month") (or
     such  other  calendar  period  as  is  approved  by  the  Board), financial
statements,  including a balance sheet as of the last date of such Target Month,
a  statement  of income (or monthly operating expenses) for such month, together
with  a cumulative statement of income from the first day of the current year to
the  last  day  of such month, which statements shall be prepared from the books
and  records  of the Corporation, a cash flow analysis, together with cumulative
cash  flow  analyses  from  the first day of the current year to the last day of
such  month,  and a comparison between the actual monthly operating expenses and
the  projected  figures  for such month and the comparable figures for the prior
                                        6
<PAGE>

year,  subject  to  the  provisions  of  Section  2.7  hereof.
(b)     Within  40  days  after  the  end  of  such quarterly accounting period,
unaudited  financial  statements for such quarterly accounting period, certified
by  the  Chief  Financial  Officer  or  the  Treasurer of the Corporation (or an
equivalent  position),  as presenting fairly the financial condition and results
of  operations  of  the  Corporation  and  as  having  been  prepared on a basis
consistent  with the accounting principles reflected in the Corporation's annual
audited  financial  statements,  accompanied  by  a  report, signed by the Chief
Financial  Officer  or  the  Treasurer  of  the  Corporation  (or  an equivalent
position), summarizing the operating and financial highlights of the Corporation
for  such  quarterly  accounting  period,  which  report  shall  include  (a)  a
comparison  between  the  actual  quarterly operating and financial results, the
Budget  (as  defined  in  Section  2.6  hereof)  and  the results of the similar
quarterly  accounting  period  for  the  prior  fiscal  year of the Corporation,
together  with  an  explanation  of  material variances from the Budget and such
similar  quarterly  accounting  period,  as the case may be, and (b) a narrative
analysis of operations and trends in the business of the Corporation during such
quarterly  accounting  period.
(c)     Within  85  days  after  the end of each fiscal year of the Corporation,
audited  financial  statements of the Corporation, which shall include an income
statement  and a statement of cash flow for such fiscal year and a balance sheet
as  of the last day thereof, each prepared in accordance with generally accepted
accounting  principles  consistently  applied,  and accompanied by the report of
such independent certified public accountants as shall have been approved by the
Board.
(d)     If  for  any  period  the  Corporation  shall  have  any  subsidiary  or
subsidiaries whose accounts are consolidated with those of the Corporation, then
the  financial  statements delivered for such period pursuant to paragraphs (a),
(b)  and  (c)  of  this  Section 2.5 shall be the consolidated and consolidating
financial  statements of the Corporation for all such consolidated subsidiaries.
(e)     Promptly  upon  becoming  available:
(i)     copies  of  all  financial statements, reports, press releases, notices,
proxy statements and other documents sent by the Corporation to its Stockholders
     or  released  to the public and copies of all regular and periodic reports,
if  any, filed by the Corporation with the Commission or any securities exchange
or  self-regulatory  organization;  and
(ii)     any other financial or other information available to management of the
Corporation  that  the  Investor shall have reasonably requested in writing on a
timely  basis.
2.6     Budget  and  Operating  Forecast
        --------------------------------
 .  The  Corporation  shall  prepare and submit to the Board and each Investor an
operating  plan  with  monthly  and quarterly breakdowns (the "Budget") for each
fiscal  year  by November 15th of the prior fiscal year of the Corporation.  The
Budget  shall be deemed accepted as the Budget for such fiscal year only when it
                                        7
<PAGE>

has been approved by the Board.  The Budget shall be reviewed by the Corporation
periodically  and  all  changes  therein, and all material deviations therefrom,
shall  be  reviewed  by  the  Board  on  at  least  a  quarterly  basis.
2.7     System  of  Accounting
        ----------------------
 .  The  Corporation shall maintain, and cause each of its subsidiaries, when and
if  any  shall  exist,  to  maintain, its books of accounts, related records and
system  of  accounting  in accordance with good business practices and generally
accepted accounting principles, and shall cause the matters contained therein to
be  appropriately and accurately reflected in the financial reports (which shall
be  prepared  in  accordance  with  generally  accepted  accounting  principles)
furnished  pursuant  to  this  Agreement.
2.8     Restriction  on  Transfer  Rights;  Confidentiality
        ---------------------------------------------------
 .  The  rights  granted  to  the  Investors pursuant to Sections 2.4 through 2.6
hereof  shall  not  be  transferred or assigned by an Investor to, and shall not
inure to the benefit of, any successor, transferee or assignee of such Investor,
which  is  engaged  in  any  business directly competitive with the Corporation.
Each  Investor  agrees  to  use,  and to use its best efforts to insure that its
authorized  representatives use, the same degree of care as the Investor uses to
protect  its  own  confidential information to keep confidential any information
furnished  to  it  (so  long  as  such information is not in the public domain),
except  that  an  Investor  may  disclose  such  proprietary  or  confidential
information  to an Affiliate for the purpose of evaluating its investment in the
Corporation  as  long  as  such  Affiliate  is  advised  of  the confidentiality
provisions  of  this  Section  2.8.
2.9     Duration  of  Section.
        ---------------------
(a)     Sections  2.4,  2.5 (other than 2.5(e)), 2.6, and 2.8 and the rights and
obligations of the parties thereunder shall automatically terminate on the first
     to  occur of: (a) the consummation of a firm commitment underwritten public
offering of Class A Common Stock registered under the Securities Act pursuant to
which  (i)  Class A Common Stock is offered to the public at a price of at least
$5.00  per  share of Common Stock (subject to adjustment for stock splits, stock
dividends,  stock combinations, recapitalizations and like occurrences) and (ii)
the  offering  size  is at least $10 million (a "Qualified Public Offering"), or
(b)(X) with respect to the Existing Investor, that date on which ninety (90%) of
the Series A Preferred Stock held by the Existing Investor on the date hereof is
no  longer  outstanding, and (Y) with respect to the New Investors, that date on
which  ninety (90%) of the Series B Preferred Stock issued to the New Investors,
is  no  longer  outstanding.  Prior  to  any  such  termination,  the rights and
obligations  of  an Investor under such sections set forth above shall terminate
upon  the  date  on  which  such  Investor  no  longer owns any Preferred Stock.
(b)     Section  2.3  and  the  rights and obligations of the parties thereunder
shall  automatically terminate on the first to occur of: (a) the consummation of
a  Qualified  Public Offering, or (b) (X) with respect to the Existing Investor,
that  date  on  which  fifty  (50%)  of the Series A Preferred Stock held by the
Existing  Investor,  is  no  longer outstanding, and (Y) with respect to the New
Investors, that date on which fifty (50%) of the Series B Preferred Stock issued
to  the New Investors, is no longer outstanding.  Prior to any such termination,
the rights and obligations of an Investor under such Section 2.3 shall terminate
upon  the  date  on  which  such  Investor  no  longer owns any Preferred Stock.
                                        8
<PAGE>

SECTION  3.     Transfer  of  Securities.
                ------------------------
3.1     Restriction  on  Transfer.
        -------------------------
(a)     The  Restricted  Securities  shall  not be transferable, except upon the
conditions  specified in this Section 3, which conditions are intended solely to
ensure  compliance  with the provisions of this Agreement and the Securities Act
in  respect  of  the  Transfer  thereof.
(b)     No  Founder shall Transfer any of his shares of Common Stock without the
express  written consent of a majority of the holders of Preferred Stock and the
other  Founders,  other  than:  (i)  to  a Founder's spouse, (ii) to a Founder's
issue,  (iii) to a trust for the benefit of a Founder's spouse or issue, (iv) if
the  Founder  is  a trust or estate, to the beneficiary of such trust or estate,
(v)  in  the  event of a Founder's death, in accordance with such Founder's last
will  and testament, provided the Transfer is to a Person described in (i), (ii)
or  (iii)  above,  or  (vi)  a  transfer  ordered  in  the  event of a Founder's
incompetency,  as  determined  by  a  court  of  competent  jurisdiction.
3.2     Restrictive  Legend
        -------------------
 .  Each  certificate  evidencing  any Restricted Securities and each certificate
evidencing  any  such  securities  issued  to  subsequent  transferees  of  any
Restricted  Securities  and  any  shares of Common Stock shall (unless otherwise
permitted  by  the  provisions  of  Section  3.3  or  3.10 hereof) be stamped or
otherwise  imprinted  with  a  legend  in  substantially  the  following  form:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND  HAVE  NOT  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES LAW.  THE SECURITIES MAY NOT BE PLEDGED, HYPOTHECATED, SOLD
OR  TRANSFERRED  IN  THE  ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES  UNDER  THE SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES
LAW  OR AN EXEMPTION THEREFROM UNDER SUCH ACT OR LAW. ADDITIONALLY, THE TRANSFER
OF  THESE  SECURITIES  IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE AMENDED AND
RESTATED STOCKHOLDERS' AGREEMENT DATED JUNE 15, 2001, AMONG DGI BIOTECHNOLOGIES,
INC.  AND  CERTAIN OTHER SIGNATORIES THERETO, AND NO TRANSFER OF SUCH SECURITIES
SHALL  BE  VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED.  COPIES
OF  SUCH  AGREEMENT  MAY  BE  OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE
HOLDER  OF  RECORD  OF THIS CERTIFICATE TO THE SECRETARY OF DGI BIOTECHNOLOGIES,
INC.
                                        9
<PAGE>

3.3     Notice  of  Transfer
        --------------------
 .  By acceptance of any Restricted Securities, the holder thereof agrees to give
prior written notice to the Corporation of such holder's intention to effect any
Transfer and to comply in all other respects with the provisions of this Section
3.3.  Each  such  notice  shall  describe  the  manner  and circumstances of the
proposed  Transfer  and  shall  be  accompanied  by:  (a) the written opinion of
counsel  for  the  holder  of  such  Restricted Securities, or, at such holder's
option,  a  representation  letter  of such holder, addressed to the Corporation
(which  opinion and counsel, or representation letter, as the case may be, shall
be  reasonably  acceptable  to  the  Corporation,  such  acceptance  not  to  be
unreasonably  withheld, conditioned or delayed), as to whether, in the case of a
written opinion, in the opinion of such counsel, such proposed Transfer involves
a  transaction  requiring  registration  of such Restricted Securities under the
Securities  Act  and applicable state securities laws or an exemption thereunder
is available, or, in the case of a representation letter, such letter sets forth
a  factual  basis  for  concluding  that  such  proposed  transfer  involves  a
transaction  requiring  registration  of  such  Restricted  Securities under the
Securities  Act  and  applicable  State  Securities  laws  or  that an exemption
thereunder  is  available,  or  (b)  if such registration is required and if the
provisions  of Section 3.4 hereof are applicable, a written request addressed to
the  Corporation  by  the  holder  of  such Restricted Securities, describing in
detail  the  proposed  method  of  disposition and requesting the Corporation to
effect  the registration of such Restricted Securities pursuant to the terms and
provisions  of  Section  3.4  hereof;  provided,  however, that in the case of a
                                       --------   -------
Transfer  by  a  holder  to  an  Affiliate,  no  such  opinion  of  counsel  or
representation  letter  of  the  holder  shall  be  necessary, provided that the
transferee  agrees  in  writing to be subject to Sections 3.1, 3.2, 3.3 and 3.12
hereof  to  the same extent as if such transferee were originally a signatory to
this  Agreement.  If  in such opinion of counsel or as reasonably concluded from
the  facts  set  forth in the representation letter of the holder (which opinion
and  counsel,  or representation letter, as the case may be, shall be reasonably
acceptable  to  the  Corporation), the proposed Transfer may be effected without
registration  under  the Securities Act and any applicable state securities laws
or  "blue sky" laws, then the holder of Restricted Securities shall thereupon be
entitled  to  effect  such  Transfer  in accordance with the terms of the notice
delivered  by  it  to  the  Corporation.  Each  certificate  or other instrument
evidencing  the  securities  issued  upon such Transfer (and each certificate or
other  instrument evidencing any such securities not Transferred) shall bear the
legend  set  forth  in  Section  3.2  hereof unless: (a) in such opinion of such
counsel  or  as  can  be concluded from the representation letter of such holder
(which  opinion  and  counsel  or  representation  letter  shall  be  reasonably
acceptable  to  the  Corporation)  the  registration  of future Transfers is not
required by the applicable provisions of the Securities Act and state securities
laws,  or  (b) the Corporation shall have waived the requirement of such legend;
provided,  however, that such legend shall not be required on any certificate or
 -------   -------
other  instrument  evidencing  the  securities  issued upon such Transfer in the
event  such  Transfer  shall be made in compliance with the requirements of Rule
144  (as amended from time to time or any similar or successor rule) promulgated
under  the Securities Act.  The holder of Restricted Securities shall not effect
any  Transfer  until  such  opinion  of counsel or representation letter of such
holder  has  been given to and accepted by the Corporation (unless waived by the
Corporation)  or until registration of the Restricted Securities involved in the
above-mentioned  request  has become effective under the Securities Act.  In the
event  that an opinion of counsel is required by the registrar or transfer agent
of  the Corporation to effect a transfer of Restricted Securities in the future,
the  Corporation  shall  seek  and obtain such opinion from its counsel, and the
holder of such Restricted Securities shall provide such reasonable assistance as
                                       10
<PAGE>

is  requested  by  the  Corporation  (other than the furnishing of an opinion of
counsel)  to  satisfy  the  requirements  of  the registrar or transfer agent to
effectuate  such  transfer.
3.4     Required  Registration
        ----------------------
 .  At  any  time  after  180  days  following  completion  of a Qualified Public
Offering  by  the  Corporation,  if the Corporation shall be requested by one or
more holders of at least 50% of the outstanding shares of the Series A Preferred
Stock  (a  "Series  A  Demand") or by one or more holders of at least 50% of the
outstanding  shares  of  the  Series B Preferred Stock (a "Series B Demand") (in
either case based on the underlying Class A Common Stock for which the shares of
Preferred Stock are convertible or exercisable) to effect the registration under
the Securities Act of Restricted Securities having a proposed aggregate offering
price  equal  to or greater than $5,000,000, then the Corporation shall promptly
give  written  notice of such proposed registration to all holders of Restricted
Securities, and thereupon the Corporation shall promptly use its best efforts to
effect  the  registration  under the Securities Act of the Restricted Securities
that the Corporation has been requested to register for disposition as described
in  the  request  of  such  holders  of  Restricted  Securities (the "Initiating
Holders")  and  in  any  response received from any of the holders of Restricted
Securities  within  30  days  after  the  giving  of  the  written notice by the
Corporation;  provided,  however, that the Corporation shall not be obligated to
              --------   -------
effect  any  registration under the Securities Act except in accordance with the
following provisions and Section 3.7 and provided, further, that the Corporation
                                         --------  -------
shall  not  be obligated to effect more than one registration under this Section
3.4  pursuant  to  a Series A Demand and one registration under this Section 3.4
pursuant  to  a  Series  B  Demand:
(a)     Subject  to  Section 3.6, the Corporation shall not be obligated to file
and cause to become effective more than one (1) registration statement on behalf
     of  the  holders  of  each  of  the  Series  A Preferred Stock and Series B
Preferred  Stock  pursuant  to  this  Section  3.4.
(b)     Notwithstanding  the foregoing, the Corporation may include in each such
registration  requested pursuant to this Section 3.4 any authorized but unissued
shares  of  Class A Common Stock (or authorized treasury shares) for sale by the
Corporation  or  any  issued  and outstanding shares of Class A Common Stock for
sale  by  the  Founders  or by others; provided, however, that, if the number of
                                       --------  -------
shares  of  Class A Common Stock so included pursuant to this clause (b) exceeds
the  number  of  Restricted  Securities  requested  by the holders of Restricted
Securities  requesting such registration, then such registration shall be deemed
to  be  a  registration  in  accordance  with  and  pursuant to Section 3.5; and
provided  further, however, that the inclusion of such previously authorized but
       ----------  -------
unissued  shares  by the Corporation or issued and outstanding shares of Class A
Common  Stock  by  others in such registration does not adversely affect, in the
sole  opinion  of  the  holders  of  Restricted  Securities  requesting  such
registration,  the  ability  of  the holders of Restricted Securities requesting
such registration to market the entire number of Restricted Securities requested
by  them.
(c)     Notwithstanding the foregoing, if at the time of any request to register
securities  pursuant  to  this  Section 3.4 the Corporation is engaged in or has
plans  to  engage  in  a  registered  public offering or is engaged in any other
activity which, in the good faith determination of the Board would be materially
adversely  affected  by  the requested registration, then the Corporation may at
its  option  direct  that such request be delayed for a period not to exceed 180
                                       11
<PAGE>

days  from  the  date  of  such  request,  such  right  to  be  exercised by the
Corporation  not  more  than  once  in any consecutive twelve (12) month period.
3.5     Piggyback  Registration.
        -----------------------
(a)     Each  time  that the Corporation proposes for any reason to register any
of  its  securities  under  the  Securities  Act,  other  than pursuant to (i) a
registration  statement  on  Form  S-4 or Form S-8 or similar or successor forms
(collectively,  "Excluded  Forms")  or (ii) in connection with the Corporation's
initial  public  offering, the Corporation shall promptly give written notice of
such  proposed registration to all holders of Restricted Securities, which shall
offer  such  holders the right to request inclusion of any Restricted Securities
in  the  proposed  registration.
(b)     Each holder of Restricted Securities shall have 30 days from the receipt
of  such  notice  to deliver to the Corporation a written request specifying the
number  of  Restricted  Securities  such holder intends to sell and the holder's
intended  method  of  disposition.
(c)     In  the  event  that the proposed registration by the Corporation is, in
whole  or  in  part,  an  underwritten  public  offering  of  securities  of the
Corporation,  any  request  under Section 3.5(b) may specify that the Restricted
Securities  be included in the underwriting (i) on the same terms and conditions
as  the  shares  of  Class  A Common Stock, if any, otherwise being sold through
underwriters under such registration, or (ii) on terms and conditions comparable
to  those normally applicable to offerings of common stock in reasonably similar
circumstances in the event that no shares of Class A Common Stock are being sold
through  underwriters  under  such  registration.
(d)     Upon  receipt  of  a  written  request  pursuant  to Section 3.5(b), the
Corporation  shall  promptly  use  its best efforts to cause all such Restricted
Securities  to be registered under the Securities Act, to the extent required to
permit  sale  or  disposition  as  set  forth  in  the  written  request.
(e)     Notwithstanding  the  foregoing, if the managing underwriter of any such
proposed  registration  determines  and advises in writing that the inclusion of
all  Restricted  Securities  proposed  to be included in the underwritten public
offering,  together  with  any  other  issued  and outstanding shares of Class A
Common  Stock  proposed to be included therein by holders other than the holders
of  Restricted  Securities (such other holders hereinafter collectively referred
to as the "Other Holders"), would interfere with the successful marketing of the
Corporation's  securities,  then the total number of such securities proposed to
be  included in such underwritten public offering shall be reduced, (i) first by
the  shares  requested to be included in such registration by Other Holders, and
(ii)  second, if necessary, by the Restricted Securities proposed to be included
in such registration by the holders thereof, on a pro rata basis, based upon the
                                                  --- ----
number  of  Restricted  Securities  sought to be registered by each such holder.
The  shares  of  Class  A  Common  Stock that are excluded from the underwritten
public  offering  pursuant  to the preceding sentence shall be withheld from the
market  by  the  holders  thereof  for a period, not to exceed 180 days from the
closing  of  such  underwritten  public  offering, that the managing underwriter
                                       12
<PAGE>

reasonably  determines  as necessary in order to effect such underwritten public
offering.
(f)     The  rights  of  the holders of Restricted Securities under this Section
3.5  shall  terminate  once  the  Corporation has effected two (2) registrations
under  this  Section  3.5.
3.6     Registrations  on  Form  S-2  and  S-3
        --------------------------------------
 .  In  addition  to the rights provided in Sections 3.4 and 3.5, at such time as
the Corporation shall have qualified for the use of Form S-2 or Form S-3 (or any
successor  form  promulgated  under  the Securities Act), the Initiating Holders
shall  have  the right to request in writing up to two (2) registrations on Form
S-2 or Form S-3.  Each such request by the Initiating Holders shall: (a) specify
the  number of Restricted Securities which the Initiating Holders intend to sell
or  dispose  of,  (b)  state the intended method by which the Initiating Holders
intend  to  sell  or  dispose  of  such  Restricted  Securities, and (c) request
registration of Restricted Securities having a proposed aggregate offering price
of  at  least  $5,000,000  (unless  such request covers all remaining Restricted
Securities  held  by  the  Investors  in  which event this restriction shall not
apply).  Upon receipt of a request pursuant to this Section 3.6, the Corporation
shall  use its best efforts to effect such registration or registrations on Form
S-2  or  Form  S-3.  Notwithstanding  the  foregoing,  the Corporation may delay
filing a registration statement on Form S-2 or Form S-3 and may withhold efforts
to  cause the registration statement to become or remain effective, if the Board
determines  in  good  faith  that  such registration might (i) interfere with or
affect  the  negotiation  or  completion  of  any  transaction  that  is  being
contemplated  by the Corporation at the time the right to delay is exercised, or
(ii)  involve  initial or continuing disclosure obligations that might not be in
the  best  interest  of  the  Corporation's  shareholders.  Notwithstanding  the
foregoing,  the Corporation shall not be entitled to exercise its right to defer
filing or effectiveness of or to update a registration pursuant to a Form S-2 or
Form S-3 registration request for more than one hundred eighty (180) consecutive
days.
3.7     Preparation  and  Filing
        ------------------------
 .  If  and  whenever  the  Corporation  is  under  an obligation pursuant to the
provision  of  this Section 3 to use its best efforts to effect the registration
of  any  Restricted  Securities,  the  Corporation  shall,  as  expeditiously as
practicable:
(a)     prepare  and  file  with  the  Commission  a registration statement with
respect  to  such securities and use its best efforts to cause such registration
statement  to  become  and  remain  effective  in accordance with Section 3.7(b)
hereof;
(b)     prepare  and file with the Commission such amendments and supplements to
such  registration  statement and the prospectus used in connection therewith as
may be necessary to keep such registration statement effective until the earlier
of  (i)  the  sale  of  all  Restricted  Securities covered thereby or (ii) nine
months,  and to comply with the provisions of the Securities Act with respect to
the  sale  or  other  disposition  of  all Restricted Securities covered by such
registration  statement;
(c)     furnish  to each holder whose Restricted Securities are being registered
pursuant  to  this  Section 3 such number of copies of any summary prospectus or
other  prospectus,  including  a  preliminary prospectus, in conformity with the
                                       13
<PAGE>

requirements  of the Securities Act, and such other documents as such holder may
reasonably  request  in order to facilitate the public sale or other disposition
of  such  Restricted  Securities;
(d)     use  its  best  efforts to register or qualify the Restricted Securities
covered  by such registration statement under the securities or blue sky laws of
such  jurisdictions  as  each  holder  whose  Restricted  Securities  are  being
registered  pursuant  to  this Section 3 shall reasonably request and do any and
all  other  acts  or  things  which may be necessary or advisable to enable such
holder  to consummate the public sale or other disposition in such jurisdictions
of such Restricted Securities; provided, however, that the Corporation shall not
                               --------  -------
be  required  to  consent  to general service of process for all purposes in any
jurisdiction  where it is not then subject to process, qualify to do business as
a  foreign  corporation  where  it would not be otherwise required to qualify or
submit  to  liability  for state or local taxes where it is not otherwise liable
for  such  taxes;
(e)     at any time when a prospectus covered by such registration statement and
relating thereto is required to be delivered under the Securities Act within the
appropriate  period mentioned in Section 3.7(b) hereof, notify each holder whose
Restricted  Securities  are  being  registered pursuant to this Section 3 of the
happening  of  any  event  as  a result of which the prospectus included in such
registration, as then in effect, includes an untrue statement of a material fact
or  omits to state a material fact required to be stated therein or necessary to
make  the  statements  therein  not misleading in the light of the circumstances
then  existing  and, at the request of such holder, prepare, file and furnish to
such  holder a reasonable number of copies of a supplement to or an amendment of
such  prospectus  as  may  be  necessary so that, as thereafter delivered to the
purchasers of such shares, such prospectus shall not include an untrue statement
of  a  material  fact  or  omit  to  state a material fact required to be stated
therein  or necessary to make the statements therein not misleading in the light
of  the  circumstances  then  existing;
(f)     if  the  Corporation  has delivered preliminary or final prospectuses to
the  holders of Restricted Securities that are being registered pursuant to this
Section  3 and after having done so the prospectus is amended to comply with the
requirements  of  the Securities Act, the Corporation shall promptly notify such
holders and, if requested, such holders shall immediately cease making offers of
Restricted  Securities  and  return  all  prospectuses  to the Corporation.  The
Corporation  shall  promptly provide such holders with revised prospectuses and,
following  receipt  of  the  revised prospectuses, such holders shall be free to
resume  making  offers  of  the  Restricted  Securities;
(g)     furnish,  at  the  request of any holder whose Restricted Securities are
being  registered  pursuant  to this Section 3, on the date that such Restricted
Securities  are  delivered  to  the  underwriters  for sale in connection with a
registration  pursuant  to  this  Section  3,  if such securities are being sold
through  underwriters,  or,  on  the  date  that the registration statement with
respect  to  such securities becomes effective, if such securities are not being
sold  through  underwriters,  (i)  an  opinion,  dated such date, of the counsel
representing  the Corporation for the purposes of such registration, in form and
substance  as  is  customarily  given  to underwriters in an underwritten public
offering,  addressed  to  the underwriters, if any, and to the holder or holders
making  such  request,  and  (ii) a letter dated such date, from the independent
                                       14
<PAGE>

certified  public  accountants  of  the Corporation, in form and substance as is
customarily given by independent certified public accountants to underwriters in
an  underwritten  public offering, addressed to the underwriters, if any, and to
the  holder  or  holders  making  such  request;
(h)     permit any holder of Restricted Securities which holder, in the sole and
exclusive  judgment, exercised in good faith, of such holder, might be deemed to
be  a controlling person of the Corporation, to participate in good faith in the
preparation  of  such  registration  and  to  require  the  insertion thereof of
material,  furnished  to  the  Corporation  in  writing, which in the reasonable
judgment  of  such  holder  and  its  counsel  should  be  included;
(i)     promptly  notify  the holders of Restricted Securities (or, in the event
of  an  underwritten offering, the managing underwriters) of the issuance by the
Commission  of  any  stop  order  or  other  suspension  of effectiveness of the
registration  statement,  and  make  every  reasonable  effort  to  obtain  the
withdrawal  of  any  order  suspending  the  effectiveness  of  the registration
statement  at  the  earliest  possible  time;
(j)     provide  a  transfer  agent  and registrar for all Restricted Securities
registered  pursuant  to  this  Section  3;
(k)     use  its  best efforts to list the Restricted Securities covered by such
registration  statement with any securities exchange on which similar securities
issued  by  the  Corporation  are  then  listed or, if none of the Corporation's
securities  are  so  listed,  have  the  Restricted  Securities  included  on an
interdealer  quotation  system;
(l)     make available for inspection by each holder whose Restricted Securities
are  being  registered  pursuant  to  this  Section  3  reasonable access to all
financial and other records, pertinent corporate documents and properties of the
Corporation, as such parties may reasonably request, and cause the Corporation's
officers, directors and employees to supply all information reasonably requested
by  any  such  holder  in  connection  with  such  registration;
(m)     cooperate  with  the  holders  whose  Restricted  Securities  are  being
registered  pursuant  to this Section 3 and the managing underwriter, if any, to
facilitate  the  timely  preparation  and  delivery of certificates representing
Restricted  Securities to be sold, such certificates to be in such denominations
and  registered  in  such  names as such holders or the managing underwriter may
request  at  least  two  (2)  business  days  prior  to  any  sale of Restricted
Securities;  and
(n)     comply  with  all  applicable rules and regulations under the Securities
Act  and  Exchange  Act.
3.8     Expenses
        --------
 .  The  Corporation  shall  pay  all  expenses  incurred  by  the Corporation in
complying  with  this Section 3, including, without limitation, all registration
and  filing  fees  (including  all expenses incident to filing with the National
Association  of  Securities  Dealers, Inc.), fees and expenses of complying with
the  securities  and  blue  sky  laws  of  all  such  jurisdictions in which the
Restricted Securities are proposed to be offered and sold, printing expenses and
fees  and  disbursements of counsel (including with respect to each registration
                                       15
<PAGE>

effected  pursuant  to  Sections  3.4,  3.5  and  3.6,  the  reasonable fees and
disbursements of counsel for the holders of Restricted Securities that are being
registered pursuant to this Section 3); provided, however, that all underwriting
                                        --------  -------
discounts  and  selling  commissions  applicable  to  the  Restricted Securities
covered  by  registrations  effected  pursuant to Section 3.4, 3.5 or 3.6 hereof
shall  be borne by the seller or sellers thereof, in proportion to the number of
Restricted  Securities  sold  by  each  such  seller  or  sellers.
3.9     Rule  144  Reporting
        --------------------
 .  With a view to making available the benefits of certain rules and regulations
of  the  Commission  which  may  at  any  time permit the sale of the Restricted
Securities  to  the  public without registration, at all times after ninety (90)
days  after  the  effective  date  of  the  Corporation's  initial  registration
statement  filed  under  the  Securities  Act,  the  Corporation  agrees  to:
(a)     make  and  keep  public  information  available,  as  those  terms  are
understood  and  defined  in Rule 144 under the Securities Act (or any successor
rule);
(b)     use  its best efforts to file with the Commission in a timely manner all
reports and other documents required of the Corporation under the Securities Act
and  the  Exchange  Act;  and
(c)     furnish to each holder of Restricted Securities forthwith upon request a
written  statement  by  the  Corporation as to its compliance with the reporting
requirements  of  Rule 144 (or any successor rule) and, at any time after it has
become  subject  to  such  reporting requirements, of the Securities Act and the
Exchange  Act,  a  copy  of  the  most  recent annual or quarterly report of the
Corporation, and such other reports and documents so filed by the Corporation as
such  holder may reasonably request in availing itself of any rule or regulation
of the Commission allowing such holder to sell any Restricted Securities without
registration.
3.10     Indemnification.
         ---------------
(a)     In  the event of any registration of any Restricted Securities under the
Securities  Act  pursuant  to this Section 3 or registration or qualification of
any  Restricted  Securities  pursuant  to Section 3.7(d) hereof, the Corporation
shall indemnify and hold harmless the seller of such shares, each underwriter of
     such  shares,  if  any, each broker or any other person acting on behalf of
such  seller  and  each  other person, if any, who controls any of the foregoing
persons,  within  the meaning of the Securities Act, against any losses, claims,
damages  or liabilities, joint or several, to which any of the foregoing persons
may  become  subject  under  the  Securities  Act  or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of  or  are  based  upon  an  untrue  statement or alleged untrue statement of a
material  fact  contained  in  any  registration  statement  under  which  such
Restricted  Securities were registered under the Securities Act, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereto,  or  any  document  incident  to  registration  or qualification of any
Restricted  Securities pursuant to Section 3.7(d) hereof, or arise out of or are
based  upon  the  omission  or alleged omission to state therein a material fact
required  to  be  stated therein or necessary to make the statements therein not
misleading  or, with respect to any prospectus, necessary to make the statements
therein,  in  light  of  the  circumstances  under  which  they  were  made, not
                                       16
<PAGE>

misleading,  or  any  violation  by the Corporation of the Securities Act or any
state  securities  or  blue sky laws applicable to the Corporation in connection
with  such  registration or qualification under the Securities Act or such state
securities  or  blue  sky  laws.  The Corporation shall reimburse on demand such
seller,  underwriter, broker or other person acting on behalf of such seller and
each  such  controlling  person  for  any legal or any other expenses reasonably
incurred  by  any of them in connection with investigating or defending any such
loss,  claim,  damage,  liability  or  action;  provided,  however,  that  the
                                                --------   -------
Corporation  shall  not  be  liable in any such case to the extent that any such
loss,  claim,  damage  or  liability  arises  out  of or is based upon an untrue
statement  or  alleged  untrue statement or omission or alleged omission made in
said  registration  statement,  preliminary  or final prospectus or amendment or
supplement  thereto or any document incident to registration or qualification of
any  Restricted  Securities  pursuant to Section 3.7(d) hereof, in reliance upon
and  in conformity with written information furnished to the Corporation by such
seller, underwriter, broker, other person or controlling person specifically for
use  in  the  preparation  thereof.
(b)     Before  Restricted  Securities  held  by any prospective seller shall be
included in any registration pursuant to this Section 3, such prospective seller
and any underwriter acting on its behalf shall have agreed to indemnify and hold
harmless severally and not jointly (in the same manner and to the same extent as
set  forth  in paragraph (a)) the Corporation, each director of the Corporation,
each  officer  of  the Corporation who signs such registration statement and any
person  who  controls  the Corporation within the meaning of the Securities Act,
with  respect  to  any  untrue  statement  or  omission  from  such registration
statement,  any preliminary prospectus or final prospectus contained therein, or
any  amendment  or  supplement thereto, if such untrue statement or omission was
made  in  reliance  upon and in conformity with written information furnished to
the  Corporation  through  an  instrument  duly  executed by such seller or such
underwriter  specifically  for  use  in  the  preparation  of  such registration
statement,  preliminary prospectus, final prospectus or amendment or supplement;
provided,  however,  that  the  maximum  amount  of liability in respect of such
--------   -------
indemnification  shall be limited, in the case of each prospective seller, to an
-----
amount  equal  to  the net proceeds actually received by such prospective seller
from  the  sale of Restricted Securities effected pursuant to such registration.
(c)     Promptly  after  receipt  by  an  indemnified  party  of  notice  of the
commencement  of  any action involving a claim referred to in Section 3.10(a) or
(b)  hereof, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 3.10, give written notice
to  the  latter  of the commencement of such action.  In case any such action is
brought against an indemnified party, the indemnifying party will be entitled to
participate  in  and  to  assume  the  defense  thereof,  jointly with any other
indemnifying  party  similarly  notified  to  the  extent that it may wish, with
counsel  reasonably satisfactory to such indemnified party, and, after notice to
such indemnified party from the indemnifying party of its election to assume the
defense  thereof,  the  indemnifying party shall be responsible for any legal or
other  expenses  subsequently  incurred  by  the  latter  in connection with the
defense  thereof;  provided,  however, that, if any indemnified party shall have
                   --------   -------
reasonably  concluded  that there may be one or more legal defenses available to
such indemnified party which are different from or additional to those available
to  the  indemnifying  party, or that such claim or litigation involves or could
have an effect upon matters beyond the scope of the indemnity agreement provided
in  this Section 3.10, the indemnifying party shall not have the right to assume
the  defense  of  such  action  on  behalf  of  such indemnified party, and such
indemnifying  party  shall  reimburse  such  indemnified  party  and  any person
controlling such indemnified party for the fees and expenses of counsel retained
by  the indemnified party which are reasonably related to the matters covered by
the  indemnity  agreement provided in this Section 3.10.  The indemnifying party
                                       17
<PAGE>

shall  not  make  any  settlement  of  any  claims indemnified against hereunder
without  the  written  consent  of  the indemnified party or parties unless such
settlement  includes  as  an  unconditional  term  thereof  a  release  of  any
indemnified party or parties who have not consented thereto from all liabilities
and  obligations  in  respect  of  such  claim  or  litigation.
(d)     In  order  to  provide  for  just  and  equitable  contribution to joint
liability under the Securities Act in any case in which either (i) any holder of
Restricted Securities exercising rights under this Agreement, or any controlling
person  of  any  such holder, makes a claim for indemnification pursuant to this
Section  3.10, but it is judicially determined (by the entry of a final judgment
or  decree  by  a  court of competent jurisdiction and the expiration of time to
appeal  or the denial of the last right of appeal) that such indemnification may
not  be  enforced  in  such case notwithstanding the fact that this Section 3.10
provides  for  indemnification  in  such  case,  or  (ii) contribution under the
Securities  Act  may  be  required  on  the  part of any such holder or any such
controlling  person in circumstances for which indemnification is provided under
this Section 3.10; then, in each such case, the Corporation and such holder will
contribute to the aggregate losses, claims, damages or liabilities to which they
may  be  subject  as  is  appropriate  to  reflect  the  relative  fault  of the
Corporation and such holder in connection with the statements or omissions which
resulted  in  such  losses,  claims, damages or liabilities, it being understood
that  the  parties acknowledge that the overriding equitable consideration to be
given  effect  in  connection with this provision is the ability of one party or
the  other  to  correct the statement or omission which resulted in such losses,
claims,  damages  or liabilities, and that it would not be just and equitable if
contribution  pursuant hereto were to be determined by pro rata allocation or by
                                                       --------
any  other  method  of  allocation  which  does  not take into consideration the
foregoing  equitable considerations.  Notwithstanding the foregoing, (i) no such
holder  will  be required to contribute any amount in excess of the net proceeds
(after  commissions, discounts, etc.) to it of all Restricted Securities sold by
it  pursuant to such registration statement, and (ii) no person or entity guilty
of  fraudulent  misrepresentation,  within  the  meaning of Section 11(f) of the
Securities  Act, shall be entitled to contribution from any person or entity who
is  not  guilty  of  such  fraudulent  misrepresentation.
(e)     Notwithstanding  any  of  the  foregoing,  if,  in  connection  with  an
underwritten  public offering of any Restricted Securities, the Corporation, the
holders  of  such  Restricted  Securities  and  the  underwriters  enter into an
underwriting  or  purchase  agreement  relating  to such offering which contains
provisions  covering indemnification among the parties, then the indemnification
provision  of this Section 3.10 shall be deemed inoperative for purposes of such
offering,  but  only to the extent that the indemnification provisions contained
in  such  underwriting  or  purchase  agreement  are  not inconsistent herewith.
3.11     "Market  Stand-Off"  Agreement
         ------------------------------
 .  Each  Investor  hereby  agrees  that,  during the period of duration (up to a
maximum  of 180 days) specified by the Corporation and an underwriter of Class A
Common  Stock  or  other  securities of the Corporation, following the effective
                                       18
<PAGE>

date  of  the Corporation's initial public offering, it shall not, to the extent
requested  by the Corporation and such underwriter, directly or indirectly sell,
offer to sell, contract to sell (including, without limitation, any short sale),
grant  any option to purchase or otherwise transfer or dispose of (other than to
donees  who  agree to be similarly bound) any securities of the Corporation held
by  it  at any time during such period, except Restricted Securities included in
such  registration.
3.12     Removal  of  Legends,  Etc.
         ---------------------------
  Notwithstanding  the  foregoing provisions of this Section 3, the restrictions
imposed  by this Section 3 upon the transferability of any Restricted Securities
shall  cease  and  terminate when (a) any such Restricted Securities are sold or
otherwise  disposed  of in accordance with the intended method of disposition by
the  seller  or  sellers  thereof  set forth in a registration statement or such
other  method  contemplated by Section 3.3 hereof that does not require that the
securities  transferred  bear  the  legend  set  forth  in  Section  3.2 hereof,
including  a  Transfer  pursuant  to  Rule  144  or a successor rule thereof (as
amended  from  time to time), or (b) the holder of Restricted Securities has met
the  requirements  for  transfer  of  such  Restricted  Securities  pursuant  to
subparagraph  (k)  of Rule 144 or a successor rule thereof (as amended from time
to  time)  promulgated by the Commission under the Securities Act.  Whenever the
restrictions  imposed  by  this  Section  3  have  terminated,  a  holder  of  a
certificate  for Restricted Securities and Class A Common Stock as to which such
restrictions  have terminated shall be entitled to receive from the Corporation,
without  expense, a new certificate not bearing the restrictive legend set forth
in Section 3.2 hereof and not containing any other reference to the restrictions
imposed  by  this  Section  3.
3.13     Tag-Along  Rights
         -----------------
(a)     Each  Founder  shall  be  entitled  to  unlimited  and  proportionate
"tag-along"  rights  in  the  event of a sale or other disposition of Restricted
Securities  by  an  Investor  to  a  party  other  than  the  Corporation  (the
"Purchaser") in a transaction or series of related transactions resulting in the
     Purchaser  or  the Purchaser and its affiliates (as such term is defined in
Rule  12B-2 of the 1934 Act) in the aggregate and for the first time controlling
more than seventy-five percent (75%) of the then issued Restricted Securities (a
"Tag  Along  Sale").  As  a  condition to any Tag Along Sale, each Founder shall
have  the  right  to  sell to the Purchaser, as a condition to such sale by such
Investor,  at the same price per share of Class A Common Stock (calculated as if
Investor's  Series  A  Preferred Stock were converted into Class A Common Stock)
and  on  the same terms and conditions as involved in such sale by the Investor,
the  same  percentage  of  the Class A Common Stock owned by such Founder as the
percentage  to  be sold by the Investor to the Purchaser represents with respect
to the Restricted Securities owned by the Investor immediately prior to the sale
of  any  of  his  Restricted  Securities  to  the  Purchaser.
(b)     If  a  Founder  wishes  to so participate in any sale under this Section
3.13, it shall notify the Investor in writing within fifteen (15) days after the
date  the  Founder  received  notice  of  an  intended  sale  by  that Investor.
(c)     An  Investor  and, if any of them so elect, such Founders, shall sell to
the  Purchaser  all,  or at the option of the Purchaser, any part, of the shares
proposed  to be sold by them at not less than the price and upon other terms and
                                       19
<PAGE>

conditions,  if  any,  not more favorable to the Purchaser than those offered to
that  Investor;  provided,  however  that  any purchase of less than all of such
                 --------   -------
shares by the Purchaser shall be made from an Investor and the Founders pro rata
based upon the relative amount of the shares that that Investor and the Founders
are  otherwise  entitled  to  sell  pursuant  to  Section  3.13(a).
(d)     The  Founders'  right  to  participate in sales pursuant to this Section
3.13  shall not apply with respect to sales, transfers or exchanges of Preferred
Stock  or  Common  Stock  by  an  Investor (i) to the Corporation, and (ii) in a
Qualified  Public  Offering.
(e)     Unless  otherwise  consented  to or permitted under Section 3.1(b), each
Investor  that  holds at least 5% of the Preferred Stock issued to such Investor
as  of  the  date  hereof  shall  be  entitled  to  unlimited  and proportionate
"tag-along"  rights,  in accordance with terms and procedures analogous to those
set  forth above for the benefit of the Founders in Section 3.13(a) through (d),
in the event of a sale or other disposition of Class A Common Stock by a Founder
or  other  Investor.
3.14     Drag-Along  Rights.
         ------------------
(a)     If  at  any time prior to a Qualified Public Offering the Corporation or
any  of its Stockholders shall have received an offer from a third party that is
not  an  Affiliate  of the Corporation to purchase a controlling interest of the
Corporation's  outstanding  capital  stock  or  all  or substantially all of the
Corporation's  assets  determined  on  a  consolidated basis (whether by merger,
recapitalization, consolidation, reorganization, combination or otherwise), such
     offer  is approved by the Board of Directors, and the holders of two-thirds
or  more  of  the outstanding Class A Common Stock held by the Investors and the
Founders,  assuming  full  conversion  of  any  then  outstanding  convertible
securities  (giving  effect  to  anti-dilution  provisions  set  forth  in  the
Certificate,  if  applicable)  ("Requesting  Holders")  shall have given written
                                 -------------------
notice  to  the  Corporation  that  they wish to accept such offer (an "Approved
                                                                        --------
Sale"),  then the Corporation shall deliver written notice to the same effect to
the  other  Investors  and Founders and all of them shall accept the third-party
purchase  offer  and  sell  their  shares  in  accordance  with  its  terms  (if
applicable).  The Corporation shall use its reasonable best efforts to cause any
stockholders  of  the  Corporation  not  party  to  this Agreement to accept the
third-party  purchase  offer  and sell their shares in accordance with its terms
(if  applicable).
(b)     If  the  Approved  Sale is structured as a merger or consolidation, then
the  Investors  and  the  Founders shall waive any dissenters' rights, appraisal
rights  or  similar  rights in connection with such merger or consolidation.  If
the  Approved  Sale is structured as a transfer of stock, then each Investor and
Founder  shall  sell  all (or the applicable portion) of its stock and rights to
acquire  stock  on  the  terms  and  conditions  of  the  Approved  Sale.
(c)     The  obligations  of  the  Investors and the Founders with respect to an
Approved  Sale are subject to the satisfaction of the following conditions:  (i)
with  respect  to the Approved Sale, each Investor and Founder shall receive the
same  form  of consideration and the same portion of the aggregate consideration
such Investor or Founder would have received if such aggregate consideration had
been  distributed  by  the  Corporation  in complete liquidation pursuant to the
rights and preferences set forth in the Certificate (as may be amended from time
                                       20
<PAGE>

to  time, including any certificate of designations relating to any future class
or  series  of capital stock) in effect immediately prior to the consummation of
the Approved Sale (and, if less than all of the outstanding capital stock of the
Corporation  is  included  in  the  Approved Sale, then the form and portions of
aggregate  consideration  shall  be  determined  as if the stock included in the
Approved  Sale  were  all  of  the  outstanding  stock  of  the Corporation then
outstanding); (ii) if any of the Investors or Founders are given an option as to
the  form  and  amount of consideration to be received, each Investor or Founder
holding  the  same  class or type of stock shall be given the same option; (iii)
each  Investor  or  Founder holding then currently exercisable rights to acquire
stock  shall  be given a reasonable opportunity to exercise such rights prior to
the consummation of the Approved Sale and participate in such Approved Sale as a
stockholder;  and (iv) each Investor and Founder will bear its respective shares
of  the  costs  of any actual or proposed Approved Sale to the extent such costs
are  incurred  for the benefit of all stockholders and are not otherwise paid by
the  Corporation  or the acquiring party.  An Investor's or Founder's "share" of
any  such  costs shall be the amount by which the portion of the proceeds of the
Approved  Sale  payable  to such stockholder as provided in this Section 3.14(c)
would  have  been  reduced  had the aggregate consideration in the Approved Sale
been  reduced  by  the full amount of such costs prior to the allocation of such
consideration  pursuant to this Section 3.14(c).  Costs incurred by any Investor
of  Founder on its own behalf will not be considered costs of the Approved Sale.
SECTION  4.     Securities  Act  Registration  Statements
                -----------------------------------------
 .  Except  for  securities  of the Corporation registered on Excluded Forms, the
Corporation  shall  not file any registration statement under the Securities Act
covering  any  securities  unless  it  shall  first  have  given  each holder of
Restricted Securities written notice thereof.  The Corporation further covenants
that each holder of Restricted Securities shall have the right, at any time when
it  may  be  deemed  to  be  a controlling person of the Corporation, within the
meaning  of  the  Securities  Act,  to  participate  in  the preparation of such
registration  statement  and  to  request  the  insertion  therein  of  material
furnished  to  the Corporation in writing which in such holder's judgment should
be included.   In connection with any registration statement referred to in this
Section 4, the Corporation shall indemnify, to the extent permitted by law, each
holder  of  Restricted Securities, its officers, partners and directors and each
person,  if  any,  who  controls  any  such  holder  within  the  meaning of the
Securities  Act  in the same manner and to the same extent as the Corporation is
required  to  indemnify a seller of Restricted Securities in Section 3.9 hereof.
If, in connection with any such registration statement, any holder of Restricted
Securities  shall  furnish  written information to the Corporation expressly for
use  in  the  registration  statement,  then  such  holder  shall  indemnify the
Corporation,  each  director of the Corporation, each officer of the Corporation
who  signs such registration statement and each person, if any, who controls the
Corporation  within  the  meaning  of the Securities Act to the same extent as a
seller of Restricted Securities is required to indemnify such persons in Section
3.10  hereof.
SECTION  5.     Election  of  Directors.
                -----------------------
5.1     Voting  for  Directors
        ----------------------
 .  At  each  annual  meeting  of the stockholders of the Corporation and at each
special  meeting  of the stockholders of the Corporation called for the purposes
of  electing directors of the Corporation, and at any time at which stockholders
of the Corporation shall have the right to, or shall, vote for or consent to the
election  of  directors,  then, in each such event, each Investor shall vote all
shares  of  Preferred  Stock  and  any  other  shares  of  voting  stock  of the
                                       21
<PAGE>

Corporation  then  owned  (or  controlled as to voting rights) by it, whether by
purchase, exercise of rights, warrants or options, stock dividends or otherwise,
and  each  Founder  shall  vote all shares of Class A Common Stock and any other
shares of voting stock of the Corporation then owned (or controlled as to voting
rights)  by  him  or  it,  whether  by purchase, exercise of rights, warrants or
options,  stock  dividends  or  otherwise  as  follows:
(a)     to fix and maintain the number of directors on the Board of Directors of
     the  Corporation  at  seven  (7);
(b)     to  elect  to  the  Board  three  (3)  directors  designated  by the New
Investors,  one  of  whom  initially  shall  be  as  of  the  date hereof Thomas
Tscherning  (the  "NI  Directors");
(c)     to  elect  to  the  Board  one  (1)  director designated by the Existing
Investor,  who initially shall be as of the date hereof Lee Eppstein, Ph.D. (the
"EI  Director",  and together with the NI Directors, the "Preferred Directors");
(d)     to  elect  to  the Board the Chief Executive Officer of the Corporation,
who  initially  shall  be  as  of  the  date  hereof  Arthur  J.  Blume,  Ph.D.;
(e)     to  elect  to the Board the Chief Scientific Officer of the Corporation;
and
(f)     to  elect  to the Board one (1) director designated by the Investors and
Founders,  voting  together,  who  initially shall be as of the date hereof John
Prendergast,  Ph.D.,  and  who  initially  shall  be  Chairman  of  the  Board.
5.2     Cooperation  of  the  Corporation
        ---------------------------------
 .  The Corporation shall use its best efforts to effectuate the purposes of this
Section  5,  including  promoting the adoption of any necessary amendment of the
By-laws  and  the  Certificate  of  Incorporation  of  the  Corporation.
5.3     Notices
        -------
 .  The Corporation shall provide the Investors and Founders with at least twenty
(20)  days'  prior  notice  in  writing of any intended mailing of notice to the
Investors of the Corporation for a meeting at which directors are to be elected,
and  such  notice  shall  include  the  names  of  the persons designated by the
Corporation pursuant to this Section 5.  The Investors and Founders shall notify
the  Corporation in writing at least three (3) days prior to such mailing of the
persons  designated by it pursuant to Section 5.1 above as nominees for election
to  the Board.  In the absence of any notice from the Investors or Founders, the
director(s)  then  serving  and  previously designated by the Investors shall be
renominated.
5.4     Board  of  Directors'  Committees
        ---------------------------------
  At least one of the NI Directors shall serve on each committee of the Board of
Directors.
5.5     Removal
        -------
 .  Except  as otherwise provided in this Section 5, no Investor or Founder shall
vote  to  remove a Preferred Director unless the party or parties who designated
such  director (the "Designating Party") shall so vote or otherwise consent.  In
addition,  each  Investor  agrees  to vote all shares of Preferred Stock and any
                                       22
<PAGE>

other  shares of voting stock of the Corporation then owned (or controlled as to
voting  rights)  by  it,  whether  by  purchase, exercise of rights, warrants or
options, stock dividends or otherwise, and each Founder shall vote all shares of
Class  A  Common  Stock  and any other shares of voting stock of the Corporation
then  owned  (or  controlled  as  to  voting  rights)  by  him or it, whether by
purchase, exercise of rights, warrants or options, stock dividends or otherwise,
such  that  any  vacancy  on  the  Board  created  by  the resignation, removal,
incapacity  or  death of any person designated under the foregoing provisions of
this  Section  5  shall  be  filled by another person designated by the original
Designating  Party.
5.6     Duration  of  Section
        ---------------------
 .  This  Section 5 and the rights and obligations of the parties hereunder shall
automatically terminate on the consummation of a Qualified Public Offering.  The
obligation  of  the  parties hereto to vote for an EI Director designated by the
Existing  Investor  shall  automatically  terminate  on the date on which ninety
percent  (90%) of the Series A Preferred Stock originally issued to the Existing
Investor  is  no longer outstanding, and the obligation of the parties hereto to
vote  for  any  NI Directors designated by the New Investors shall automatically
terminate  on  the  date  on  which ninety (90%) of the Series B Preferred Stock
issued  to  the  New  Investors  is  no  longer  outstanding.
SECTION  6.     Remedies
                --------
 .  In  case any one or more of the covenants and/or agreements set forth in this
Agreement  shall  have  been  breached by any party hereto, the party or parties
entitled  to  the benefit of such covenants or agreements may proceed to protect
and  enforce its or their rights, either by suit in equity and/or action at law,
including,  but  not  limited  to, an action for damages as a result of any such
breach  and/or  an  action  for  specific  performance  of  any such covenant or
agreement  contained  in this Agreement.  The rights, powers and remedies of the
parties  under  this  Agreement  are  cumulative  and not exclusive of any other
right,  power or remedy which such parties may have under any other agreement or
law.  No  single  or partial assertion or exercise of any right, power or remedy
of  a  party hereunder shall preclude any other or further assertion or exercise
thereof.
SECTION  7.     Successors  and  Assigns
                ------------------------
 .  Except  as otherwise expressly provided herein, this Agreement shall bind and
inure  to the benefit of the Corporation, the Investors and the Founders and the
respective  successors  and  assigns  of  the Corporation, the Investors and the
Founders.  Subject  to  the requirements of Section 3 hereof, this Agreement and
the  rights  and duties of the Investor set forth herein may be freely assigned,
in whole or in part, by an Investor to any Affiliate of such Investors or to any
other  person  or  entity  acquiring at least $500,000 of Restricted Securities.
Any  transferee  (other  than  an  Investor)  to whom rights under Section 3 are
transferred shall, as a condition to such transfer, deliver to the Corporation a
written  instrument  by  which  such  transferee  identifies  itself,  gives the
Corporation  notice of the transfer of such rights, identifies the securities of
the  Corporation  owned  or  acquired  by  it  and  agrees  to  be  bound by the
obligations  imposed  hereunder to the same extent as if such transferee were an
Investor  hereunder.  A  transferee  to  whom rights are transferred pursuant to
this  Section  7  will be thereafter deemed to be an Investor for the purpose of
the  execution of such transferred rights and may not again transfer such rights
to  any  other  person  or  entity,  other  than  as provided in this Section 7.
Neither  this  Agreement  nor any of the rights or duties of the Corporation set
forth  herein shall be assigned by the Corporation, in whole or in part, without
having first received the written consent of the majority of the voting power of
the  Preferred  Stock  issued and outstanding, with each such holder entitled to
                                       23
<PAGE>

the  number of votes for each such share of Preferred Stock as equals the number
of  shares of Class A Common Stock (including fractional shares) into which each
such  share  of  Preferred  Stock is then convertible, rounded up to the nearest
one-tenth  of  a  share.
SECTION  8.     Duration  of  Agreement
                -----------------------
 .  The  rights  and obligations of the Corporation and each Investor and Founder
set  forth  herein  shall  survive  indefinitely,  unless  and  until,  by their
respective  terms,  they  are  no  longer  applicable.
SECTION  9.     Entire  Agreement
                -----------------
 .  This  Agreement,  together  with  the  other  writings  referred to herein or
delivered  pursuant  hereto  which  form  a  part  hereof,  contains  the entire
agreement  among  the  parties  with  respect  to  the subject matter hereof and
amends,  restates  and  supersedes all prior and contemporaneous arrangements or
understandings with respect thereto, including, without limitation, the Original
Stockholders  Agreement.
SECTION  10.     Each  Party  the  Drafter;  Construction
                 ----------------------------------------
 .  This  Agreement and the provisions contained in it shall not be construed for
or against any party to this Agreement because that party drafted or caused that
party's legal representative to draft any of its provisions.  This Agreement and
the  provisions  contained in it shall not be construed for or against any party
to  this  Agreement  because  that  party  drafted  or caused that party's legal
representative  to  draft  any  of  its  provisions.
SECTION  11.     Notices
                 -------
 .  All  notices,  requests,  consents  and other communications hereunder to any
party  shall  be  deemed  to  be sufficient if contained in a written instrument
delivered  in  person  or  duly  sent  by  first  class registered, certified or
overnight  mail,  postage  prepaid,  or  telecopied  with a confirmation copy by
regular  mail, addressed or telecopied, as the case may be, to such party at the
address  or telecopier number, as the case may be, set forth below or such other
address or telecopier number, as the case may be, as may hereafter be designated
in  writing  by  the  addressee  to  the  addressor  listing  all  parties:
(i)     If  to  the  Corporation,  to:
     DGI  BioTechnologies,  Inc.
40  Talmadge  Road
P.O.  Box  424
Edison,  New  Jersey  08818-0424
Attention:  Arthur  J.  Blume,  Ph.D.
Telecopier:
with  a  copy  to:

Mintz,  Levin,  Cohn,  Ferris,  Glovsky
     and  Popeo,  P.C.
666  Third  Avenue
New  York,  New  York  10017-4011
Attention:  Faith  Charles,  Esq.
Telecopier:  (212)  983-3115
                                       24
<PAGE>

(ii)     If  to  the  Existing  Investor:
New  Brunswick  Scientific  Co.,  Inc.
44  Talmadge  Road
P.O.  Box  4005
Edison,  New  Jersey  08818-4005
with  a  copy  to:
Norris,  McLaughlin  &  Marcus,  P.A.
721  Route  202-206
Somerville,  New  Jersey  08876
Attn:  Peter  D.  Hutcheon,  Esq.
Telecopier:  908-722-0755
(iii)     If  to  BankInvest:
BankInvest  Biomedical  Venture  Fund  III  ps
Toldbodgade  33
DK-1253  Copenhagen
Denmark
Attn:  Thomas  Tscherning
Telecopier:  0114533419082

with  a  copy  to:

Satterlee  Stephens  Burke  &  Burke  LLP
230  Park  Avenue
New  York,  New  York  10169-0079
Attn:  Howard  A.  Neuman,  Esq.
Telecopier:  (212)  818-9606

(iv)     If  to  any  other New Investor, to the address set forth opposite such
New  Investor's  name  on  the  signature  page  signed  by  such  New Investor.
All  such notices, requests, consents and communications shall be deemed to have
been  received  (a)  in  the  case  of  personal  delivery,  on the date of such
delivery,  (b)  in  the case of mailing, on the third business day following the
date  of  such mailing, (c) in the case of overnight mail, on the first business
day  following  the  date  of  such  mailing,  and  (d) in the case of facsimile
transmission,  when  confirmed  by  facsimile  machine  report.
SECTION  12.     Amendments  and  Waivers
                 ------------------------
 .  This  Agreement  may  be  amended  or  modified, and provisions hereof may be
waived,  with the written consent of the Corporation and the Investors holding a
majority  of  the  outstanding shares of Class A Common Stock issued or issuable
upon  conversion  of  the  Preferred Stock.  Any such amendment, modification or
                                       25
<PAGE>

waiver  shall  be  binding  on  all  parties,  including  those not signing such
amendment, modification or waiver, and such consent may be given or withheld for
any  reason  or  for  no  reason.
SECTION  13.     Counterparts
                 ------------
 .  This  Agreement  may be executed in any number of counterparts, and each such
counterpart  shall  be  deemed  to  be  an  original  instrument,  but  all such
counterparts  together  shall  constitute  but  one  agreement.
SECTION  14.     Headings
                 --------
 .  The headings of the various sections of this Agreement have been inserted for
convenience  of  reference  only  and  shall  not be deemed to be a part of this
Agreement.
SECTION  15.     Nouns  and  Pronouns
                 --------------------
 .  Whenever  the context may require, any pronouns used herein shall include the
corresponding  masculine,  feminine  or  neuter  forms, and the singular form of
names  and  pronouns  shall  include  the  plural  and  vice-versa.
SECTION  16.     Severability
                 ------------
 .  Any  provision  of  this Agreement that is prohibited or unenforceable in any
jurisdiction  shall,  as  to  such jurisdiction, be ineffective to the extent of
such  prohibition  or  unenforceability  without  invalidating  the  remaining
provisions  hereof,  and  any  such  prohibition  or  unenforceability  in  any
jurisdiction  shall not invalidate or render unenforceable such provision in any
other  jurisdiction.
SECTION  17.     Governing  Law
                 --------------
 .  This Agreement shall be governed by and construed in accordance with the laws
of  the  State  of  Delaware,  excluding  choice  of  law  rules  thereof.
SECTION  18.     Titles  and  Subtitles
                 ----------------------
 .  The  titles and subtitles used in this Agreement are for convenience only and
are  not to be considered in construing or interpreting any term or provision of
this  Agreement.
SECTION  19.     Restrictions  on  Public  Disclosure
                 ------------------------------------
 .  The  parties  hereto  agree  than  any  public  announcement  related to this
Agreement  shall  be made only with the prior consent of the Corporation and the
Investors,  which  consent  shall  not  be  unreasonably  withheld  or  delayed.
Nonetheless  the  Corporation  and  each  Investor  is  authorized  to  make any
disclosures  as may be required by law, in which event such party shall take all
reasonable  measures  to  minimize the amount of such disclosure, and to provide
the Corporation and the other Investors with a reasonable opportunity to comment
on  such  disclosure.  In  that  regard, the parties hereto acknowledge that the
Existing  Investor  is  a reporting company under the Securities Exchange Act of
1934,  as  amended, and that both the investment of the Existing Investor in the
Corporation  and  the operations of the Corporation are material to the Existing
Investor.  Accordingly,  the  Corporation  and each Investor further acknowledge
that  the  Existing  Investor may be required by law to make disclosures without
regard  to  the  limitations  on  the  Corporation  under  this  Section.
                                       26
<PAGE>

     IN  WITNESS  WHEREOF the parties hereto have executed this Agreement on the
date  first  above  written.
DGI  BIOTECHNOLOGIES,  INC.
By:  ____________________________
Name:     Arthur  J.  Blume,  Ph.D.
Title:     President
NEW  BRUNSWICK  SCIENTIFIC  CO.,  INC.
By:  ____________________________
Name:     Samuel  Eichenbaum
Title:     Vice  President,  Finance
BANKINVEST  BIOMEDICAL  VENTURE  FUND  III  ps:
_______________________________
By:____________________________
FOUNDERS:
By:  ____________________________
Name:     Richard  J.  Murphy
By:  ____________________________
Name:     Arthur  J.  Blume
By:  ____________________________
Name:     Bill  Kavanagh
By:  ____________________________
Name:     Manus  O'Donnell
THE  ESTATE  OF  BERNARD  LEON
By:  ____________________________
Name:  Muriel  Leon
Title:
         Signature Page for Amended and Restated Stockholders' Agreement

<PAGE>

                                   SCHEDULE I
<TABLE>
<CAPTION>

FOUNDERS                              SHARES OF CLASS A COMMON STOCK
----------------------------------  ----------------------------------
<S>                                 <C>
Richard J. Murphy                                              125,253
Arthur J. Blume, Ph.D.                                         222,672
Bill Kavanagh                                                  222,672
Manus O'Donnell                                                125,253
Estate of
Bernard Leon                                                    28,994
TOTAL:                                                         724,844
EXISTING INVESTOR                   SHARES OF SERIES A PREFERRED STOCK
----------------------------------  ----------------------------------
New Brunswick Scientific Co., Inc.                           3,511,144 Series A
                                                               552,655 Series A-1
                                                               550,741 Series A-2
</TABLE>

<PAGE>

                                   SCHEDULE II
<TABLE>
<CAPTION>

NEW INVESTORS  SHARES OF SERIES B PREFERRED STOCK
-------------  ----------------------------------
<S>            <C>
BankInvest                              5,000,000

TOTAL:                                  5,000,000
</TABLE>

<PAGE>

                           COUNTERPART SIGNATURE PAGE
     Reference is hereby made to that certain Amended and Restated Stockholders'
Agreement dated as of June 15, 2001 (the "Stockholders' Agreement") by and among
DGI  Biotechnologies,  Inc.,  a  Delaware  corporation  (the "Corporation"), New
Brunswick  Scientific  Co.,  Inc., a Delaware Corporation, BankInvest Biomedical
Venture  Fund  III ps, and the holders of the Corporation's Class A Common Stock
listed  on  Schedule  I  attached  thereto.

By  execution of this Counterpart Signature Page to the Stockholders' Agreement,
the  undersigned  hereby (i) acknowledges receipt of a copy of the Stockholders'
Agreement,  and  all  attachments  thereto,  and  (ii) agrees to be bound by and
obtain  the  benefits  of  the  Stockholders'  Agreement.

IN WITNESS WHEREOF, the undersigned has executed this Counterpart Signature Page
as  of  the  15  day  of  June,  2001.

NEW  INVESTOR:
--------------

_______________________________
[Print  Name]

     By:_________________________________
     Name:
      Title:

Address:
<PAGE>

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