Document:

Exhibit
4.1

NEITHER THESE SECURITIES
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THESE SECURITIES AND THE
SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

XENOMICS, INC.

WARRANT

Warrant No. [  ]                                                                                                                      Original
Issue Date: ___ __, 2006

Xenomics, Inc., a Florida
corporation (the “Company”), hereby certifies that,
for value received, [      ] or its
registered assigns (the “Holder”), is
entitled to purchase from the Company up to a total of [            ] shares of Common Stock (each such
share, a “Warrant Share” and all such shares,
the “Warrant Shares”), at any time and from
time to time from and after the Original Issue Date and through and including
___ __, 2008 (the “Expiration Date”),
and subject to the following terms and conditions:

1.             Definitions. 
As used in this Warrant, the following terms shall have the respective
definitions set forth in this Section 1. 
Capitalized terms that are used and not defined in this Warrant that are
defined in the Purchase Agreement (as defined below) shall have the respective
definitions set forth in the Purchase Agreement.

“Business Day” means any day
except Saturday, Sunday and any day that is a federal legal holiday in the
United States or a day on which banking institutions in the State of New York
are authorized or required by law or other government action to close.

“Common Stock” means the common
stock of the Company, par value $0.0001 per share, and any securities into
which such common stock may hereafter be reclassified.

“Exercise Price” means $2.00,
subject to adjustment in accordance with Section 9.

 

 

“Fundamental Transaction” means
any of the following: (1) the Company effects any merger or consolidation of
the Company with or into another Person, (2) the Company effects any sale of
all or substantially all of its assets in one or a series of related
transactions, (3) any tender offer or exchange offer (whether by the Company or
another Person) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or
property, or (4) the Company effects any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property.

“Original Issue Date” means the
Original Issue Date first set forth on the first page of this Warrant.

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

“Purchase Agreement” means the
Securities Purchase Agreement, dated July __, 2006, to which the Company and
the original Holder are parties.

“Trading Day” means (i) a day on
which the Common Stock is traded on a Trading Market, or (ii) if the Common
Stock is not quoted on any Trading Market, a day on which the Common Stock is
quoted in the over-the-counter market as reported by the Pink
Sheets, LLC (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not
listed or quoted as set forth in (i) and (ii) hereof, then Trading Day shall
mean a Business Day.

“VWAP” means on any particular
Trading Day or for any particular period, the volume weighted average trading
price per share of Common Stock on such date or for such period as reported by
the Bloomberg L.P., or by any successor performing similar functions.

2.             Registration of Warrant.  The Company shall register this Warrant upon
records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof
from time to time.  The Company may deem
and treat the registered Holder of this Warrant as the absolute owner hereof
for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

3.             Registration of Transfers.  The Company shall register the transfer of
any portion of this Warrant in the Warrant Register, upon surrender of this
Warrant, with the Form of Assignment attached hereto duly completed and signed,
to the Company at its address specified herein. 
Upon any such registration or transfer, a new Warrant to purchase Common
Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so
transferred shall be issued to the transferee and a New Warrant evidencing the
remaining portion of this Warrant not so transferred, if any, shall be issued
to the transferring Holder. The acceptance of the New Warrant by the transferee
thereof shall be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of a Warrant.

4.             Exercise and Duration of Warrants.

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(a)           This Warrant shall
be exercisable by the registered Holder at any time and from time to time on or
after the Original Issue Date through and including the Expiration Date.  At 6:30 p.m., New York City time on the
Expiration Date, the portion of this Warrant not exercised prior thereto shall
be and become void and of no value. 
Except as provided in Section 4(b) below, the Company may not call or
redeem any portion of this Warrant without the prior written consent of the
affected Holder.

(b)           Subject to the
provisions of this Section 4(b), if at any time following the  effective date of a registration statement
registering for resale the Warrant Shares (the “Effective Date”): (i) the VWAP of the Common Stock for each
of 10 consecutive Trading Days following the Effective Date is greater than
$2.90 (subject to adjustment pursuant to Section 9), (ii) the Warrant Shares
are either registered for resale pursuant to an effective registration
statement naming the Holder as a selling stockholder thereunder (and the
prospectus thereunder is available for use by the Holder as to all Warrant
Shares) or freely transferable without volume restrictions pursuant to Rule
144(k) promulgated under the Securities Act, as determined by counsel to the
Company pursuant to a written opinion letter addressed and in form and
substance reasonably acceptable to the Holder and the transfer agent for the
Common Stock, during the entire 10
Trading Day period referenced in (i) above through the expiration of the Call
Date as set forth in the Company’s notice pursuant to this Section (the “Call Condition Period”), (iii) the Company
shall have complied in all material respects with its obligations under this
Warrant and (iv) the Common Stock shall at all times be listed or quoted on a
Trading Market, then, subject to the conditions set forth in this Section, the
Company may, in its sole discretion, elect to require the exercise of all of
the then unexercised portion of this Warrant, on the date that is the fifth
Trading Day after written notice thereof (a “Call
Notice”) is received by the Holder (such fifth Trading Day shall be
known as the “Call Date”) at the
address last shown on the records of the Company for the Holder or given by the
Holder to the Company for the purpose of notice.  The Company covenants
and agrees that it will honor all Exercise Notices tendered through 6:30 p.m.
(New York City time) on the Call Date.

5.             Delivery of Warrant Shares.

(a)           To effect exercises
hereunder, the Holder shall not be required to physically surrender this
Warrant unless the aggregate Warrant Shares represented by this Warrant is
being exercised.  Upon delivery of the
Exercise Notice (in the form attached hereto) to the Company (with the attached
Warrant Shares Exercise Log) at its address for notice set forth herein and
upon payment of the Exercise Price multiplied by the number of Warrant Shares
that the Holder intends to purchase hereunder, the Company shall promptly (but
in no event later than three Trading Days after the Date of Exercise (as
defined herein)) issue and deliver to the Holder, a certificate for the Warrant
Shares issuable upon such exercise, which, unless otherwise required by the
Purchase Agreement, shall be free of restrictive legends.  The Company shall, upon request of the Holder
and subsequent to the Effective Date, use its reasonable best efforts to
deliver Warrant Shares hereunder electronically through the Depository Trust
Corporation or another established clearing corporation performing similar
functions, if available, provided, that, the Company may, but will not
be required to change its transfer agent if its current transfer agent cannot
deliver Warrant Shares electronically through the Depository Trust
Corporation.  A “Date of Exercise” means the date on which
the Holder shall have delivered to the Company: (i) the Exercise Notice (with
the Warrant Exercise Log attached to it), appropriately completed and 

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duly signed and (ii) payment of the Exercise Price for the number of
Warrant Shares so indicated by the Holder to be purchased.

(b)           The Company’s
obligations to issue and deliver Warrant Shares in accordance with the terms
hereof are absolute and unconditional, irrespective of any action or inaction
by the Holder to enforce the same, any waiver or consent with respect to any
provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other Person
of any obligation to the Company or any violation or alleged violation of law
by the Holder or any other Person, and irrespective of any other circumstance
which might otherwise limit such obligation of the Company to the Holder in
connection with the issuance of Warrant Shares. 
Nothing herein shall limit a Holder’s right to pursue any other remedies
available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing Warrant Shares
upon exercise of the Warrant as required pursuant to the terms hereof.

6.             Charges, Taxes and Expenses.  Issuance and delivery of Warrant Shares upon
exercise of this Warrant shall be made without charge to the Holder for any
issue or transfer tax, withholding tax, transfer agent fee or other incidental
tax or expense in respect of the issuance of such certificates, all of which
taxes and expenses shall be paid by the Company; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the registration of any certificates for Warrant
Shares or Warrants in a name other than that of the Holder.  The Holder shall be responsible for all other
tax liability that may arise as a result of holding or transferring this
Warrant or receiving Warrant Shares upon exercise hereof.

7.             Replacement of Warrant.  If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary
and reasonable indemnity (which shall not include a surety bond), if requested.  Applicants for a New Warrant under such
circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable third-party costs as the Company may
prescribe.  If a New Warrant is requested
as a result of a mutilation of this Warrant, then the Holder shall deliver such
mutilated Warrant to the Company as a condition precedent to the Company’s
obligation to issue the New Warrant.

8.             Reservation of Warrant Shares.  The Company covenants that it will at all
times reserve and keep available out of the aggregate of its authorized but
unissued and otherwise unreserved Common Stock, solely for the purpose of
enabling it to issue Warrant Shares upon exercise of this Warrant as herein
provided, the number of Warrant Shares which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive rights or any
other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 9). The Company
covenants that all Warrant Shares so issuable and deliverable shall, upon
issuance and the payment of the applicable Exercise Price in 

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accordance with the terms
hereof, be duly and validly authorized, issued and fully paid and
nonassessable.

9.             Certain Adjustments.  The Exercise Price and number of Warrant
Shares issuable upon exercise of this Warrant are subject to adjustment from
time to time as set forth in this Section 9.

(a)           Stock Dividends
and Splits.  If the Company, at any
time while this Warrant is outstanding, (i) pays a stock dividend on its Common
Stock or otherwise makes a distribution on any class of capital stock that is
payable in shares of Common Stock, (ii) subdivides outstanding shares of Common
Stock into a larger number of shares, or (iii) combines outstanding shares of
Common Stock into a smaller number of shares, then in each such case the
Exercise Price shall be multiplied by a fraction of which the numerator shall
be the number of shares of Common Stock outstanding immediately before such
event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event. 
Any adjustment made pursuant to clause (i) of this paragraph shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
effective immediately after the effective date of such subdivision or
combination.

(b)           Fundamental
Transactions.  If, at any time while
this Warrant is outstanding there is a Fundamental Transaction, then the Holder
shall have the right thereafter to receive, upon exercise of this Warrant, the
same amount and kind of securities, cash or property as it would have been
entitled to receive upon the occurrence of such Fundamental Transaction if it
had been, immediately prior to such Fundamental Transaction, the holder of the
number of Warrant Shares then issuable upon exercise in full of this Warrant
(the “Alternate Consideration”).  For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to
such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction.  At the Holder’s
option and request, any successor to the Company or surviving entity in such
Fundamental Transaction shall, either (1) issue to the Holder a new warrant
substantially in the form of this Warrant and consistent with the foregoing
provisions and evidencing the Holder’s right to purchase the Alternate
Consideration for the aggregate Exercise Price upon exercise thereof, or (2)
purchase the Warrant from the Holder for a purchase price, payable in cash
within five Trading Days after such request (or, if later, on the effective
date of the Fundamental Transaction), equal to the Black Scholes value of the
remaining unexercised portion of this Warrant on the date of such request.  The terms of any agreement pursuant to which
a Fundamental Transaction is effected shall include terms requiring any such
successor or surviving entity to comply with the provisions of this paragraph
(b) and insuring that the Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

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(c)           Number of Warrant
Shares.  Simultaneously with any
adjustment to the Exercise Price pursuant to this Section 9, the number of
Warrant Shares that may be purchased upon exercise of this Warrant shall be
increased or decreased proportionately, so that after such adjustment the
aggregate Exercise Price payable hereunder for the adjusted number of Warrant
Shares shall be the same as the aggregate Exercise Price in effect immediately
prior to such adjustment.

(d)           Calculations.  All calculations under this Section 9
shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.  The number of shares of Common Stock
outstanding at any given time shall not include shares owned or held by or for
the account of the Company, and the disposition of any such shares shall be
considered an issue or sale of Common Stock.

(e)           Notice of
Adjustments.  Upon the occurrence of
each adjustment pursuant to this Section 9, the Company at its expense
will promptly compute such adjustment in accordance with the terms of this
Warrant and prepare a certificate setting forth such adjustment, including a
statement of the adjusted Exercise Price and adjusted number or type of Warrant
Shares or other securities issuable upon exercise of this Warrant (as
applicable), describing the transactions giving rise to such adjustments and
showing in detail the facts upon which such adjustment is based.  Upon written request, the Company will
promptly deliver a copy of each such certificate to the Holder and to the
Company’s Transfer Agent.

(f)            Notice of
Corporate Events.  If the Company (i)
declares a dividend or any other distribution of cash, securities or other
property in respect of its Common Stock, including without limitation any
granting of rights or warrants to subscribe for or purchase any capital stock
of the Company or any Subsidiary, (ii) authorizes or approves, enters into any
agreement contemplating or solicits stockholder approval for any Fundamental
Transaction or (iii) authorizes the voluntary dissolution, liquidation or
winding up of the affairs of the Company, then the Company shall deliver to the
Holder a notice describing the material terms and conditions of such transaction
(but only to the extent such disclosure would not result in the dissemination
of material, non-public information to the Holder) at least 10 calendar days
prior to the applicable record or effective date on which a Person would need
to hold Common Stock in order to participate in or vote with respect to such
transaction, and the Company will take all steps reasonably necessary in order
to insure that the Holder is given the practical opportunity to exercise this
Warrant prior to such time so as to participate in or vote with respect to such
transaction; provided, however, that the failure to deliver such notice or any
defect therein shall not affect the validity of the corporate action required
to be described in such notice.

10.           Payment of Exercise Price.
This Warrant may be exercised by the Holder as to the whole or any lesser
number of the Warrant Shares covered hereby, upon surrender of this Warrant to
the Company at its principal executive office together with the Notice of
Exercise attached hereto as Exhibit A, duly completed and executed by the
Holder, and payment to the Company of the aggregate Exercise Price for the
Warrant Shares to be purchased in the form of (i) a check made payable to
the Company, (ii) wire transfer according to the Company’s instructions or
(iii) any combination of (i) and (ii).

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11.           No Fractional Shares.  No fractional shares of Warrant Shares will
be issued in connection with any exercise of this Warrant.  In lieu of any fractional shares which would,
otherwise be issuable, the Company shall pay cash equal to the product of such
fraction multiplied by the closing price of one Warrant Share as reported by
the applicable Trading Market on the date of exercise.

12.           Notices.  Any and all notices or other communications
or deliveries hereunder (including, without limitation, any Exercise Notice)
shall be in writing and shall be deemed given and effective on the earliest of
(i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 6:30 p.m.
(New York City time) on a Trading Day, (ii) the next Trading Day after the date
of transmission, if such notice or communication is delivered via facsimile at
the facsimile number specified in this Section on a day that is not a Trading
Day or later than 6:30 p.m. (New York City time) on any Trading Day, (iii) the
Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom
such notice is required to be given.  The
addresses for such communications shall be: 
(i) if to the Company, to 420 Lexington Avenue, Suite 1701, New York,
New York 10170, Attn: Chief Executive Officer, or to facsimile no.:  (212) 297-0808 (or
such other address as the Company shall indicate in writing in accordance with
this Section), or (ii) if to the Holder, to the address or facsimile
number appearing on the Warrant Register or such other address or facsimile
number as the Holder may provide to the Company in accordance with this
Section.

13.           Warrant Agent.  The Company shall serve as warrant agent
under this Warrant.  Upon 10 calendar
days’ notice to the Holder, the Company may appoint a new warrant agent.  Any corporation into which the Company or any
new warrant agent may be merged or any corporation resulting from any
consolidation to which the Company or any new warrant agent shall be a party or
any corporation to which the Company or any new warrant agent transfers
substantially all of its corporate trust or shareholders services business
shall be a successor warrant agent under this Warrant without any further
act.  Any such successor warrant agent
shall promptly cause notice of its succession as warrant agent to be mailed (by
first class mail, postage prepaid) to the Holder at the Holder’s last address
as shown on the Warrant Register.

14.           Miscellaneous.

(a)           This
Warrant shall be binding on and inure to the benefit of the parties hereto and
their respective successors and assigns. 
Subject to the preceding sentence, nothing in this Warrant shall be
construed to give to any Person other than the Company and the Holder any legal
or equitable right, remedy or cause of action under this Warrant.  This Warrant may be amended only in writing
signed by the Company and the Holder and their successors and assigns.

(b)           All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York (except for matters governed by
corporate law in the State of Delaware), without regard to the principles of
conflicts of law thereof.  Each party
agrees that all legal proceedings concerning the interpretations, enforcement
and defense of this Warrant and the transactions herein contemplated (“Proceedings”) (whether brought against a 

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party hereto or its respective Affiliates,
employees or agents) shall be commenced exclusively in the New York
Courts.  Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the New York Courts for
the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any Proceeding, any claim that it is not
personally subject to the jurisdiction of any New York Court, or that such
Proceeding has been commenced in an improper or inconvenient forum. Each party
hereto hereby irrevocably waives personal service of process and consents to
process being served in any such Proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Warrant and
agrees that such service shall constitute good and sufficient service of
process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.  Each
party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Warrant or the transactions contemplated
hereby.  If either party shall commence a
Proceeding to enforce any provisions of this Warrant, then the prevailing party
in such Proceeding shall be reimbursed by the other party for its attorney’s
fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such Proceeding.

(c)           The headings herein
are for convenience only, do not constitute a part of this Warrant and shall
not be deemed to limit or affect any of the provisions hereof.

(d)           In case any one or
more of the provisions of this Warrant shall be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Warrant shall not in any way be affected or impaired thereby and the
parties will attempt in good faith to agree upon a valid and enforceable
provision which shall be a commercially reasonable substitute therefor, and
upon so agreeing, shall incorporate such substitute provision in this Warrant.

(e)           Prior to exercise of
this Warrant, the Holder hereof shall not, by reason of being a Holder, be
entitled to any rights of a stockholder with respect to the Warrant Shares.

IN WITNESS WHEREOF, the Company has caused this
Warrant to be duly executed by its authorized officer as of the date first
indicated above.

	
   

  	
  XENOMICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

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EXERCISE NOTICE

XENOMICS, INC.

WARRANT DATED ___ __, 2006

The undersigned Holder hereby irrevocably elects to
purchase  _____________ shares of Common
Stock pursuant to the above referenced Warrant. 
Capitalized terms used herein and not otherwise defined have the
respective meanings set forth in the Warrant.

(1)           The undersigned Holder hereby
exercises its right to purchase _________________ Warrant Shares pursuant to
the Warrant.

(2)           Pursuant to this Exercise Notice, the
Company shall deliver to the holder _______________ Warrant Shares in
accordance with the terms of the Warrant.

Dated:    _______________, ____

	
  

  	
  Name of Holder:

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  

 

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Warrant Shares Exercise Log

	
  Date

  	
   

  	
  Number of Warrant 

  Shares Available to be

  Exercised

  	
   

  	
  Number of Warrant

  Shares Exercised

  	
   

  	
  Number of Warrant

  Shares Remaining

  to be Exercised

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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XENOMICS, INC.

WARRANT ORIGINALLY ISSUED ___ __, 2006

WARRANT NO. ___

FORM OF
ASSIGNMENT

[To be completed and signed only upon transfer of
Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto ________________________________ the right
represented by the above-captioned Warrant to purchase  ____________ shares of Common Stock to which
such Warrant relates and appoints ________________ attorney to transfer said
right on the books of the Company with full power of substitution in the
premises.

Dated:    _______________,
____

	
  

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address of
  Transferee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  In the presence
  of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 11Exhibit
10.1

SECURITIES PURCHASE
AGREEMENT

This Securities Purchase Agreement (this “Agreement”)
is made as of ____, 2006 between Xenomics, Inc., a Florida corporation (the “Company”),
and the investors listed on Exhibit A hereto, each of which is herein referred
to as an “Investor” and collectively, the “Investors”.

RECITALS:

WHEREAS, the Investors desire to purchase from the
Company, and the Company desires to sell to the Investors, up to approximately
9,600,000 shares of the Company’s common stock, par value $0.0001 per share
(the “Common Stock”) and up to approximately 4,800,000 warrants to purchase
shares of the Common Stock (the “Warrants”), upon the terms and subject to the
conditions set forth herein;

NOW, THEREFORE, in
consideration of the premises and mutual covenants contained herein, the
parties hereto agree as follows:

1.             PURCHASE AND SALE OF SECURITIES.

1.1           Purchase and Sale of Securities.  Upon the terms and subject to the conditions
of this Agreement, at the Closing (as defined below), the Company agrees to
sell to the Investors, and each Investor agrees to purchase from the Company
the number of shares of the Company’s Common Stock and Warrants set forth
opposite such Investor’s name on Exhibit A hereto (collectively, the “Securities”)
at the per share purchase price of $1.25 (“Purchase Price”).  The Warrants shall be exercisable at $2.00
per share for a period of 3 years from the date of issuance.

1.2           Closing.  The closing of the purchase and sale of the
Securities (the “Closing”) shall take place at the offices of the Company at
5:00 p.m., Eastern time on ___, 2006, or such other location, time or date as
the parties shall mutually agree, but only after the satisfaction or waiver of
each of the conditions set forth in Sections 6 and 7 (the “Closing Date”).

1.3           Deliveries.  At the Closing, the Company shall deliver to
each Investor at the address set forth on such Investor’s signature page
hereto, a certificate or certificates, registered in the name of the applicable
Investor, representing the shares of Common Stock and Warrants purchased by
such Investor, and each Investor shall deliver to the Company the aggregate
Purchase Price, by wire transfer of immediately available funds to the
following account:

	
   

  	
  HSBC Bank USA

  
	
   

  	
  950 Third Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
   

  
	
   

  	
  A/C of Sichenzia Ross Friedman Ference LLP, IOLA

  
	
   

  	
  A/C# 629034125

  
	
   

  	
  ABA# 021001088

  

 

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REMARK:  XENOMICS

2.                                       REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

For purposes of this Section, all references to “Company”
in Sections 2.1, 2.4 (with the exception of subsection (a) thereof), 2.7, 2.9
through 2.12, and 2.14 through 2.20 shall be deemed to be a reference to the
Company and all of its direct and indirect subsidiaries.  The Company hereby represents and warrants to
each Investor that, except as set forth on a Schedule of Exceptions (the “Company
Schedule of Exceptions”) attached hereto as Schedule A, which exceptions
shall be deemed to be representations and warranties as if made hereunder:

2.1           Corporate Organization.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of its state of
incorporation, and has the requisite corporate power and authority to own or
lease its properties and to carry on its business as now being conducted.  The Company is duly qualified as a foreign
corporation to do business and is in good standing in every jurisdiction in
which the property owned or leased by it or the nature of the business
conducted by it makes such qualification necessary, except to the extent that
the failure to be so qualified or in good standing would not have, individually
or in the aggregate, a Material Adverse Effect. 
For purposes of this Agreement, “Material Adverse Effect” shall mean, as
to any entity, any material adverse effect on the business, operations,
conditions (financial or otherwise), assets or results of operations of that
entity individually or of the Company and its subsidiaries as a whole.

2.2           Capitalization; Organizational
Documents.

(a)           The authorized capital stock of the
Company will consist immediately prior to the Closing of 100,000,000 shares of
Common Stock, of which as of the date hereof, 19,247,367 shares are issued and
outstanding, and 20,000,000 shares of preferred stock of the Company, of which,
as of the date hereof, 134,840 shares of Series Convertible Preferred Stock are
issued and outstanding.  All of the
issued and outstanding shares have been duly and validly issued and are fully
paid and nonassessable and have been issued in accordance with all applicable
federal and state securities laws.  No
shares of Common Stock are subject to preemptive rights or any other similar
rights or any liens suffered or permitted by the Company.  There are no preemptive rights or rights of
first refusal or similar rights which are binding on the Company permitting any
person to subscribe for or purchase from the Company shares of its capital
stock pursuant to any provision of applicable law, the Certificate of
Incorporation (as defined below) or the Company’s By-laws.  There are no securities or instruments
containing anti-dilution or similar provisions that will be triggered by the
issuance of the Securities, except for the anti-dilution provisions set forth
in the Articles of Amendment Designating the Series A Convertible Preferred
Stock of the Company.  The Company has
made available to each Investor true and correct copies of the Company’s
Articles of Incorporation, as amended and as in effect on the date hereof (the “Articles
of Incorporation”), and the Company’s By-laws, as in effect on the date hereof
(the “By-laws”).

(b)           Upon issuance of the Securities and
payment of the Purchase Price therefor in accordance with the terms of this
Agreement, the Securities will be duly authorized, validly issued, fully paid
and nonassessable, and free and clear of any restrictions on transfer and

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any taxes, claims, liens, pledges, options, security
interests, purchase rights, preemptive rights, trusts, encumbrances or other
rights or interests of any other person (other than any restrictions under the
Securities Act of 1933, as amended (the “Securities Act”).

2.3           Authorization; Enforcement.  (a) The Company has the requisite corporate
power and authority to enter into and perform its obligations under this
Agreement and to issue, sell and perform its obligations with respect to the
Securities in accordance with the terms hereof, (b) the execution and delivery
of this Agreement by the Company and the consummation by it of the transactions
contemplated hereby have been duly authorized by the Company’s Board of
Directors and its stockholders and no further consent or authorization is
required by the Company, its Board of Directors or its stockholders, except as
disclosed on the Company Schedule of Exceptions and (c) this Agreement has been
duly executed and delivered by the Company. 
This Agreement, when executed and delivered by the Company, constitutes
a valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors’ rights and remedies.

2.4           No Conflicts.  The execution, delivery and performance of
this Agreement by the Company, and the consummation by the Company of the
transactions contemplated hereby, will not (a) result in a violation of the
Articles of Incorporation or By-laws of the Company, or (b) violate or
conflict with, or result in a breach of, any provision of, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, or result in the creation of any lien on or against any of
the material properties of the Company, any material note, bond, mortgage,
agreement, license, indenture or instrument to which the Company is a party, or
result in a violation of any statute, law, rule, regulation, writ, injunction,
order, judgment or decree applicable to the Company or by which any property or
asset of the Company is bound or affected, except where such violation,
conflict, breach or other consequence would not have a Material Adverse
Effect.   Except as specifically
contemplated by this Agreement and applicable blue sky laws, the Company is not
required to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental or regulatory or self-regulatory
agency in order for it to execute, deliver or perform any of its obligations
under or contemplated by this Agreement in accordance with the terms
hereof.  All consents, authorizations,
orders, filings and registrations that the Company is required to obtain
pursuant to the preceding sentence have been obtained or effected on or prior
to the date hereof, except for those required pursuant to blue sky laws.

2.5           SEC Documents; Financial
Statements.  The Company has filed
all reports, schedules, forms, statements and other documents required to be
filed by it with the Securities and Exchange Commission (the “SEC”) pursuant to
the reporting requirements of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) (all of the foregoing, and all other documents and
registration statements heretofore filed by the Company with the SEC being
hereinafter referred to as the “SEC Documents”).  The Common Stock is currently traded on the
Over the Counter Bulletin Board.  The
Company has delivered or made available to each Investor true and complete
copies of the SEC Documents.  As of their
respective dates, the SEC Documents complied in all material respects with the
requirements of the Securities Act, and the

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Exchange Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC
Documents, at the time they were filed with the SEC (except those SEC Documents
that were subsequently amended), contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.  Except as disclosed in the Company Schedule
of Exceptions, as of their respective dates, the financial statements of the
Company and its subsidiaries included (or incorporated by reference) in the SEC
Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC or
other applicable rules and regulations with respect thereto.  Such financial statements have been prepared
in accordance with generally accepted accounting principles applied on a
consistent basis during the periods involved (except (a) as may be otherwise
indicated in such financial statements or the notes thereto, or (b) in the case
of unaudited interim statements, to the extent they may exclude footnotes or
may be condensed or summary statements) and fairly present the financial
position of the Company and its subsidiaries as of the dates thereof and the
results of its operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments).

2.6           Securities Law Exemption.  Assuming the truth and accuracy of each
Investor’s representations set forth in this Agreement, the offer, sale and
issuance of the Securities as contemplated by this Agreement are exempt from
the registration requirements of the Securities Act and applicable state
securities laws, and neither the Company nor any authorized agent acting on its
behalf has taken or will take any action hereafter that would cause the loss of
such exemption.

2.7           Litigation.  All actions, suits, arbitrations or other
proceedings or, to the Company’s knowledge, investigations pending or
threatened against the Company that would have a Material Adverse Effect on the
Company, are disclosed in the SEC Documents. 
There is no action, suit, proceeding or, to the Company’s knowledge,
investigation that questions this Agreement or the right of the Company to
execute, deliver and perform under same.

2.8           Use of Proceeds.  The net proceeds from the sale of the
Securities shall be used solely for general corporate and working capital
purposes.

2.9           Intellectual Property.  The Company owns, or has the contractual
right to use, sell or license all intellectual property necessary or required
for the conduct of its business as presently conducted and as proposed to be
conducted, including, without limitation, all trade secrets, processes, source
code, licenses, trademarks, service marks, trade names, logos, brands,
copyrights, patents, franchises, domain names and permits.  The Company has not received any communications
alleging that the Company has violated or, by conducting its business presently
conducted violates or will violate any intellectual property rights of any
other person or entity.

2.10         Title to Property and Assets.  The Company has good and marketable title to
or, in the case of leases and licenses, has valid and subsisting leasehold
interests or licenses in, all of its properties and assets (whether real or
personal, tangible or intangible) free and clear of any liens or other
encumbrances, except for liens or other encumbrances that do not, individually
or in the aggregate, have a Material Adverse Effect.  With respect to property leased by the

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Company, the Company has a valid leasehold interest in
such property pursuant to leases which are in full force and effect, and the
Company is in compliance in all material respects with the provisions of such
leases.

2.11         Compliance with Laws.  The Company is in compliance with all laws,
rules, regulations, orders, judgments or decrees that are applicable to the
Company, the conduct of its business as presently conducted, and the ownership
of its property and assets (including, without limitation, all Environmental
Laws (as defined below) and laws related to occupational safety, health, wage
and hour, and employment discrimination). 
All required reports and filings with governmental authorities have been
properly made as and when required, except where the failure to report or file
would not, individually or in the aggregate, have a Material Adverse Effect.  “Environmental Laws” means all federal,
state, local and foreign laws, ordinances, treaties, rules, regulations,
guidelines and permit conditions relating to contamination or pollution of the
environment (including ambient air, surface water, ground water, land surface
or subsurface strata) or the protection of human health and worker safety,
including, without limitation, laws and regulations relating to transportation,
storage, use, manufacture, disposal or release of, or exposure of employees or
others to, Hazardous Materials (as defined below) or emissions, discharges,
releases or threatened releases of Hazardous Materials.  “Hazardous Materials” means any substance
that has been designated by any governmental entity or by applicable
Environmental Laws to be radioactive, toxic, hazardous or otherwise a danger to
health or the environment, including, without limitation, PCBs, asbestos,
petroleum, urea formaldehyde and all substances listed as hazardous substances
pursuant to the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, or defined as a hazardous waste pursuant to
the Resource Conservation and Recovery Act of 1976, as amended, and the
regulations promulgated pursuant to Environmental Laws, but excluding office
and janitorial supplies maintained in accordance with Environmental Laws.

2.12         Licenses and Permits.  The Company has obtained and maintains all
material federal, state, local and foreign licenses, permits, consents,
approvals, registrations, memberships, authorizations and qualifications
required to be maintained in connection with the operations of the Company as
presently conducted, the lack of which could have a Material Adverse
Effect.  The Company is not in default in
any material respect under any of such licenses, permits, consents, approvals,
registrations, memberships, authorizations and qualifications.

2.13         Related Entities.  Except for the Subsidiaries set forth on the
Company Schedule of Exceptions, the Company does not presently own or control,
directly or indirectly, any interest in any other subsidiary, corporation,
association or other business entity. 
Except for SpaXen Italia, S.R.L., the Company is not a party to any
joint venture, partnership or similar arrangement.

2.14         Changes.  Except as disclosed on the Company Schedule
of Exceptions and in the SEC Documents, since January 31, 2006, the Company has
operated its business diligently and in the ordinary course of business and, to
the knowledge of the Company, there has not been, or the Company has not (as
the case may be):

(a)           any Material Adverse Effect;

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(b)           any damage, destruction or loss,
whether or not covered by insurance, which would have a Material Adverse
Effect;

(c)           any waiver or compromise by the
Company of a valuable right or of a material debt owed it;

(d)           sold, encumbered, assigned or
transferred any material assets or properties of the Company, other than in the
ordinary course of business;

(e)           incurred any liability, whether
accrued, absolute, contingent or otherwise, and whether due or to become due,
other than (i) in the ordinary course of business or (ii) liabilities that are
not, individually or in the aggregate, material to the business, operations,
condition (financial or otherwise), assets or results of operations of the
Company;

(f)            created, incurred, assumed or
guaranteed any indebtedness or subjected any of its assets to any lien or
encumbrance, except for indebtedness, liens or encumbrances that are not,
individually or in the aggregate, material to the business, operations,
condition (financial or otherwise), assets or results of operations of the
Company;

(g)           directly or indirectly redeemed,
purchased or otherwise acquired any shares of capital stock of the Company;

(h)           declared, set aside or paid any
dividends or made any other distributions in cash or property on the Company’s
capital stock;

(i)            except in the ordinary course of
business of the Company, materially increased the compensation payable or to
become payable by the Company to any of its officers, employees or directors or
materially increased any bonus, insurance, pension or other employee benefit
plan, payment or arrangement made by the Company for or with any such officers,
employees or directors;

(j)            made any direct or indirect loan to
any stockholder, employee, officer or director of the Company, other than
advances made in the ordinary course of business;

(k)           changed any agreement to which the
Company is a party which would have a Material Adverse Effect; or

(l)            entered into any agreement or commitment
to do any of the things described in this Section 2.14.

2.15         Employee Benefit Plans.  All “employee benefit plans,” as such term is
defined in the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
to which the Company has any liability or obligation, contingent or otherwise,
comply in all material respects and have been maintained and administered in
material compliance with

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ERISA, the Internal Revenue Code of 1986, as amended
(the “Code”), and all other statutes, orders and governmental rules and
regulations applicable to such employee benefit plans.

2.16         Insurance.  The Company has in full force and effect
fire, casualty and liability insurance policies sufficient in amount (subject
to reasonable deductibles) to allow the Company to replace any of its
properties that might be damaged or destroyed to the extent and in the manner
customary for companies in similar business similarly situated.

2.17         Employees.  The Company does not have any collective
bargaining agreements with any of its employees.  There is no labor union organizing activity
pending or, to the Company’s knowledge, threatened with respect to the Company.

2.18         Material Contracts.  All contracts, agreements, instruments,
leases, licenses, arrangements, understandings or other documents filed with or
required to be filed as exhibits to the SEC Documents to which the Company
therein is a party or by which it may be bound have been so filed (the “Material
Contracts”).  The Material Contracts that
have been filed as exhibits are complete and correct copies of the contracts,
agreements, instruments, leases, licenses, arrangement, understanding or other
documents of which they purport to be copies. 
The Material Contracts are valid and in full force and effect as to the
Company, and, to the Company’s knowledge, to the other parties thereto.

2.21         Brokers
and Finders.  Except as disclosed in
the Schedule of Exceptions, the Company has not employed any broker, finder,
consultant or intermediary in connection with the transactions contemplated by
this Agreement that would be entitled to a broker’s, finder’s or similar fee or
commission in connection herewith and therewith.

2.22         Disclosure.  This Agreement, Schedules and Exhibits hereto
and all other documents delivered to the Investors in connection herewith or
therewith at the Closing, do not contain any untrue statement of a material
fact, or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.  There are no facts that, individually or in
the aggregate, would have a Material Adverse Effect that have not been
disclosed to each Investor in this Agreement (including the Schedules and
Exhibits hereto), the SEC Documents or any other documents delivered to each
Investor in connection herewith or therewith at the Closing.

3.             REPRESENTATIONS
AND WARRANTIES OF INVESTOR.

Each of the Investors, severally and not jointly,
hereby represents and warrants to the Company as to itself and not as to any other
Investor, that:

3.1           Organization.  The Investor represents and warrants to, and
covenants with, the Company that the Investor has full right, power, authority
and capacity to enter into this Agreement and to consummate the transactions
contemplated hereby.

3.2           Authorization; Enforcement.  (a) The Investor has the requisite power and
authority to enter into and perform its obligations under this Agreement, (b)
the execution and delivery of this Agreement by the Investor and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of

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the Investor, and (c) this Agreement has been duly
executed and delivered by the Investor. 
To the knowledge of the Investor, no other proceedings on the part of
the Investor are necessary to approve and authorize the execution and delivery
of this Agreement.  This Agreement, when
executed and delivered, constitutes a valid and binding obligation of the
Investor, enforceable against the Investor in accordance with its terms, except
as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors’
rights and remedies.

3.3           No Conflicts.  The execution, delivery and performance of
this Agreement by the Investor, and the consummation by the Investor of the
transactions contemplated hereby will not (a) result in a violation of the
organizational documents of the Investor, or (b) result in a violation of
any statute, law, rule, regulation, writ, injunction, order, judgment or decree
applicable to the Investor, except where such violation, conflict, breach or
other consequence would not have a Material Adverse Effect.  The Investor is not required to obtain any
consent, authorization or order of, or make any filing or registration with,
any court or governmental or regulatory or self-regulatory agency in order for
it to execute, deliver or perform any of its obligations under or contemplated
by this Agreement in accordance with the terms hereof.

3.4           Investment
Representations.

(a)           The Investor is an “accredited
investor”, as defined in Regulation D promulgated under the Securities Act, and
has such knowledge, sophistication and experience in financial and business
matters that the Investor is capable of evaluating the merits and risks of the
investment in the Securities.

(b)           The Investor (i) has adequate means
of providing for its current financial needs and possible contingencies, and
has no need for liquidity of investment in the Company, (ii) can afford to hold
unregistered Securities for an indefinite period of time and sustain a complete
loss of the entire amount of the subscription, and (iii) has not made an
overall commitment to investments which are not readily marketable that is so
disproportionate as to cause such overall commitment to become excessive.

(c)           The Investor agrees and understands
that the Securities are being offered and sold to the Investor in reliance upon
specific exemptions from the registration requirements of the Securities Act
and the rules and regulations promulgated thereunder and that, in order to
determine the availability of such exemptions and the eligibility of the Investor
to acquire the Securities, the Company is relying upon the truth and accuracy
of the Investor’s representations and warranties, and compliance with the
Investor’s covenants and agreements, set forth in this Agreement.  The Investor further agrees with the Company
that (i) no Securities were offered or sold to the Investor by means of any
form of general solicitation or general advertising, and in connection
therewith, the Investor did not (1) receive or review any advertisement,
article, notice or other communication published in a newspaper or magazine or
similar media or broadcast over television or radio, whether closed circuit or
generally available; or (2) attend any seminar meeting or industry investor
conference whose attendees were invited by any general solicitation or general
advertising.  The Investor hereby
acknowledges that the offering of the Securities has not been reviewed by the
SEC or any state regulatory authority

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since the offering of the Securities is intended to be
exempt from the registration requirements of Section 5 of the Securities Act
pursuant to Regulation S promulgated thereunder.  The Investor understands that the Securities
have not been registered under the Securities Act and agrees not to sell or
otherwise transfer the Securities unless they are registered under the
Securities Act or unless an exemption from such registration is available.

(d)           The Investor is not acquiring the
Securities for the account or benefit of, directly or indirectly, any U.S.
Person.  The Investor is not a U.S.
Person. The Investor is acquiring the Securities for investment only and not
with a view to resale or distribution and, in particular, it has no intention
to distribute either directly or indirectly any of the Securities in the United
States or to U.S. Persons.  The Investor
acknowledges that the Investor has not acquired the Securities as a result of,
and will not itself engage in, any “directed selling efforts” (as defined in
Regulation S under the 1933 Act) in the United States in respect of the
Securities which would include any activities undertaken for the purpose of, or
that could reasonably be expected to have the effect of, conditioning the
market in the United States for the resale of the Securities; provided,
however, that the Investor may sell or otherwise dispose of the Securities
pursuant to registration of the Securities pursuant to the 1933 Act and any
applicable state and provincial securities laws or under an exemption from such
registration requirements and as otherwise provided herein.

(e)           The Investor has had access to the
Company’s SEC Documents and other public filings.

(f)            With respect to corporate tax and
other economic considerations involved in an investment in the Securities, the
Investor is not relying on the Company. 
The Investor has carefully considered and has, to the extent the
Investor believes such discussion necessary, discussed with its professional
legal, tax, accounting and financial advisors the suitability of an investment
in the Securities for its particular tax and financial situation and has
determined that the Securities are a suitable investment for the Investor.

(g)           The Company has made available to the
Investor all documents and information that the Investor has requested relating
to an investment in the Securities.

(h)           Subject to the Company’s disclosures
in this Agreement and the SEC Documents, the Investor recognizes that the
Company has generated no revenues to date, is not expected to have any products
commercially available for a number of years, if at all, and that investment in
the Company involves substantial risks, including loss of the entire amount of
such investment and has taken full cognizance of and understands all of the
risk factors relating to the purchase of the Securities.

(i)            The Investor has not been formed for
the specific purpose of acquiring the Securities.

4.             COVENANTS.

4.1           Confidentiality.  Each Investor hereby acknowledges that
unauthorized disclosure of information regarding the offering of the Securities
pursuant to this Agreement may cause the Company to violate Regulation FD and
each Investor agrees to keep such information

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confidential. The Company shall not publicly disclose
the name of any Investor, or include the name of any Investor in any filing
with the Commission or any regulatory agency or trading market, without the
prior written consent of such Investor, except (i) as required by the federal
securities laws and in connection with the registration statement contemplated
by this Agreement and (ii) to the extent such disclosure is required by law or
trading market regulations.

4.2           Restrictions
on Transfer.

(a)           Each Investor hereby agrees,
severally and not jointly, that, except in accordance with a registration
statement filed pursuant to Section 5.2 of this Agreement, it will not dispose
of any of such Investor’s Securities (other than pursuant to Rule 144
promulgated under the Securities Act (“Rule 144”) or pursuant to a registration
statement filed with the SEC pursuant to the Securities Act) unless and until such
Investor shall have (A) notified the Company of the proposed disposition
and shall have furnished the Company with a statement of the circumstances
surrounding the proposed disposition and (B) if requested by the Company,
furnished the Company with an opinion of counsel, reasonably satisfactory in
form and substance to the Company and the Company’s counsel, to the effect that
such disposition will not require registration under the Securities Act.  The restrictions on transfer imposed by this
Section 4.2 shall cease and terminate as to the Securities held by an Investor
when:  (x) such Securities shall have
been effectively registered under the Securities Act and sold by the holder
thereof in accordance with such registration, or (y) on delivery of an opinion
of the kind described in the preceding sentence with respect to such
Securities.  Each certificate evidencing
the Securities shall bear an appropriate restrictive legend as set forth in
Section 4.2(b), except that such legend shall not be required after a transfer
is made in compliance with Rule 144 or pursuant to a registration statement or
if the opinion of counsel referred to above is issued and provides that such
legend is not required in order to establish compliance with any provisions of
the Securities Act.  The Company agrees
that pursuant to the prior sentence, it will, no later than five Business Days
(“Business Day” shall mean any day banks are open for business in New York, New
York) following (a) receipt by the Company’s transfer agent of a certificate
representing Securities issued with a restrictive legend, accompanied by a
certification of the Investor in form suitable for processing by the Company
that a prospectus has been delivered (in the case of sale pursuant to
prospectus, a “Prospectus Letter”) or customary supporting documentation,
including legal opinion if required pursuant to Clause (B) above, “Supporting
Documentation”) and (b) receipt by the Company of notice of such delivery to
the transfer agent and Prospectus Letter or Supporting Documentation, as the
case may be (such notice to be sent by facsimile to the attention of the
Company’s president and CEO at the fax number set forth in Section 8.6 hereof)
deliver or cause to be delivered (evidence of deposit for next day delivery
with a nationally recognized overnight delivery service shall be deemed
delivery) to such Investor a certificate representing such Securities that is
free from all restrictive and other legends. 
The Company may not make any notation on its records or give
instructions to any transfer agent of the Company that enlarge the restrictions
on transfer set forth in this Section. 
In the event the Prospectus Letter or Supporting Documentation is not in
form suitable for processing by to the Company, the five Business Days shall
toll until the Company receives a Prospectus Letter or Supporting Documentation
that is in form suitable for processing.

(b)           Notwithstanding the provisions of
Section 4.2(a), no registration statement or opinion of counsel shall be necessary
for a transfer by an Investor of the Securities

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to a subsidiary, member, partner, stockholder or
affiliate of that Investor, if the transferee agrees in writing to be subject
to the terms hereof to the same extent as if such transferee were an Investor
hereunder.

(c)           It is understood that, subject to
Sections 4.2(a) and 4.2(b), the certificates evidencing the Securities will
bear the following legends:

(i)            THESE SECURITIES HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR UNDER
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AVAILABLE EXEMPTIONS FROM SUCH REGISTRATION,
PROVIDED THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF COUNSEL (WHICH
OPINION IS REASONABLY SATISFACTORY TO THE COMPANY) CONFIRMING THE AVAILABILITY
OF SUCH EXEMPTION.

(ii)           Any legend required by the laws of
any other applicable jurisdiction.

4.3           Securities Compliance.  The Company shall take all action necessary
to comply with any federal or state securities laws applicable to the
transactions contemplated hereunder.

5.             REGISTRATION
RIGHTS.

5.1           Registrable Shares.  As used herein the term “Registrable Security”
means (a) each of the Shares, (b) the shares of Common Stock of the Company
issuable upon exercise of the Warrants and (c) any Common Stock of the Company
issued as (or issuable on the conversion or exercise of any warrant, right or
other security that is issued as) a dividend or other distribution with respect
to, or in exchange for, or in replacement of, the shares referenced in clause
(a) above; provided, however, that with respect to
any particular Registrable Security held by an Investor, such security shall
cease to be a Registrable Security when, as of the date of determination,
(a) it has been effectively registered under the Securities Act and
disposed of pursuant thereto, or (b) registration under the Securities Act
is no longer required for the immediate public distribution of any particular
Registrable Shares held by that Investor and its affiliates.  In the event of any merger, reorganization,
consolidation, recapitalization or other change in corporate structure
affecting the Common Stock, such adjustment shall be made in the definition of “Registrable
Security” as is appropriate in order to prevent any dilution or enlargement of
the rights granted pursuant to this Section 5.

5.2           Mandatory
Registration.

(a)           On or before 90 days following the Closing
Date, the Company shall prepare and file with the Commission the Registration
Statement covering the resale of all of the Registrable Shares for an offering
to be made on a continuous basis pursuant to Rule 415 (the “Required Filing
Date”).  The Registration Statement
required hereunder shall be on Form SB-2 (except if the Company is not then
eligible to register for resale the Registrable Shares on Form

 11
 

 

SB-2, in which case the Registration Statement shall
be on another appropriate form in accordance herewith).  The Company shall use its commercially
reasonable efforts to cause the Registration Statement to be declared effective
under the Securities Act as promptly as possible after the filing thereof, but
in any event not later than the 120th day after the Closing Date, if no review by
the SEC or the 150th day if reviewed by the SEC (the “Effectiveness
Date”), and shall use its commercially reasonable efforts to keep the
Registration Statement continuously effective under the Securities Act until
the earlier of the date when all Registrable Shares covered by the Registration
Statement (a) have been sold pursuant to the Registration Statement or an
exemption from the registration requirements of the Securities Act or (b) may
be sold without volume restrictions pursuant to Rule 144(k) as determined by
the counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the affected
Investors or (c) the second anniversary of the date on which the Registration
Statement is declared effective (the “Effectiveness Period”) or such
longer time as the Company may determine.

(b)  If: (i) the Registration Statement is not
filed on or prior to its Required Filing Date or (ii) the Company fails to file
with the Commission a request for acceleration in accordance with Rule 461
promulgated under the Securities Act, within five business days of the date
that the Company is notified (orally or in writing, whichever is earlier) by
the Commission that a Registration Statement will not be “reviewed”, or not
subject to further review, or (iii) a Registration Statement filed or required
to be filed hereunder is not declared effective by the Commission on or before
the required Effectiveness Date, or (iv) after a Registration Statement is
first declared effective by the Commission, it ceases for any reason to remain
continuously effective as to all Registrable Securities for which it is
required to be effective, or the Investors are not permitted to utilize the
Prospectus therein to resell such Registrable Securities, for in any such cases
75 business days (which need not be consecutive days) in the aggregate during
any 12-month period (any such failure or breach being referred to as an “Event”)
and for purposes of clause (i) or (iii) the date on which such Event occurs, or
for purposes of clause (ii) the date on which such five business day period is
exceeded, or for purposes of clause (iv) the date on which such 75 business day
period is exceeded, being referred to as “Event Date”, then in addition
to any other rights the Investors may have hereunder or under applicable law
the Company shall pay to each Investor an amount in cash, as liquidated damages
and not as a penalty, equal to 1% of the aggregate purchase price paid by such
Investor pursuant to this Agreement for any Registrable Securities then held by
such Investor on each monthly anniversary of each such Event Date (if the
applicable Event shall not have been cured by such date) until the applicable Event
is cured.  The liquidated damages
pursuant to the terms hereof shall apply on a pro-rata basis for any portion of
a month prior to the cure of an Event and shall not exceed an aggregate of 8%
of the aggregate purchase price paid by the Investors pursuant to this
Agreement.

 12
 

 

(c)           Notwithstanding the foregoing, if the
Company shall furnish to the Investors a certificate signed by the Chief
Executive Officer of the Company stating that in the good faith judgment of the
Board of Directors of the Company it would not be in the best interest of the
Company for such registration statement to be filed, the Company shall have the
right to defer taking such action with respect to such filing for a period of
not more than seventy-five (75) days after the date of such certificate; provided,
however, that the Company shall not defer its obligation in this manner
more than once in any twelve (12) month period.

(d)           In the event, the Investor fails to
provide the Company with any information that is required to be provided in the
Registration Statement with respect to such Investor pursuant to Section 5.3(k)
within ten (10) days of receiving a request for such information from the
Company, the Company shall send an additional request to the Investor (the “Additional
Request”) and in the event the Investor fails to respond to the Company within
five (5) days of receipt of the Additional Request, the Company shall be
entitled to exclude such Investor’s Registrable Shares from the Registration
Statement.

5.3           Covenants
of the Company With Respect to Registration.

The Company covenants and agrees as follows:

(a)           Not less than five business days
prior to the filing of the Registration Statement or any related Prospectus or
any amendment or supplement thereto, furnish to the Investors copies of all
such documents proposed to be filed (including documents incorporated or deemed
incorporated by reference to the extent requested by such person), which
documents will be subject to the review of such Investors within such five
business days. The Company shall not file the Registration Statement or any
such Prospectus or any amendments or supplements thereto to which the holders
of a majority of the Registrable Shares shall reasonably object in good faith
based on the advice of counsel and the Company shall make reasonable efforts to
address the objections raised.  In the
event the holders of a majority of the Registrable Shares object to any such
filing pursuant to the previous sentence, then the Required Filing Date or
Effectiveness Date, as the case may be, shall be extended by the number of days
that elapse between the date the Company is notified of the objection until the
day following the date the Company has been notified that such objection no
longer exists.

(b)           Following
the effective date of the Registration Statement under Section 5.2, the Company
shall, upon the request of the Investors, forthwith supply such reasonable
number of copies of the Registration Statement, preliminary prospectus and
prospectus meeting the requirements of the Securities Act, and other documents
necessary or incidental to the public offering of the Registrable Shares, as
shall be reasonably requested by the Investors to permit the Investors to make
a public distribution of the Registrable Shares registered in connection with
the Registration Statement.

(c)           The
Company shall prepare and file with the SEC such amendments and supplements to
such Registration Statement and the prospectus used in connection with such
Registration Statement as may be necessary to comply with the Securities Act
with respect to the disposition of all Shares covered by such Registration
Statement during the period of time such Registration Statement remains
effective;

 

 13

 

 

(d)         The
Company shall use its commercially reasonable efforts to register and qualify
the Shares covered by such Registration Statement under such other securities
or Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Investors; provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such states or jurisdictions;

(e)          During
the period of time such Registration Statement remains effective, the Company
shall notify each Investor of Registrable Shares covered by such registration
statement at any time when a prospectus relating thereto is required to be
delivered under the Securities Act or the happening of any event as a result of
which the prospectus included in such Registration Statement, 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;

(f)          The
Company shall use its commercially reasonable efforts to cause all such
Registrable Shares registered hereunder to be listed on each securities
exchange on which securities of the same class issued by the Company are then
listed;

(g)         The
Company shall provide a transfer agent and registrar for all Registrable Shares
registered hereunder and a CUSIP number for all such Registrable Shares, in
each case not later than the effective date of such registration; and

(k)          The
obligations of the Company hereunder with respect to the Registrable Shares are
subject to the Investors’ furnishing to the Company such information concerning
the Investors, the Registrable Shares and the terms of the Investors’ offering
of such Registrable Shares as are required to be included in the Registration
Statement by Commission regulations or pursuant to a specific Commission
comment on the Registration Statement.

5.4           Expenses.  All expenses incurred in effecting a
registration pursuant to this Agreement (including, without limitation, all
registration, qualification and filing fees, printing expenses, fees and
disbursements of counsel for the Company, blue sky fees and expenses) shall be
borne by the Company.  All transfer
taxes, underwriting discounts and selling commissions applicable to the sale of
the Registrable Shares shall be borne by the Investors thereof.

5.5           Indemnification.  In the event any Registrable Shares are
included in a Registration Statement under this Section 5:

(a)           To the extent permitted by law, the
Company will indemnify and hold harmless each Investor, the partners, officers,
directors, stockholders, members and managers of such Investor, each person, if
any, who controls such Investor within the meaning of the Securities Act or the
Exchange Act, against any losses, claims, damages, or liabilities (joint or
several) to which they may become subject under the Securities Act, the
Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations (each, a “Violation”):
(i) any untrue statement or alleged untrue statement of a material fact contained
in such Registration Statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the
omission 

 14
 

 

 

or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements therein not
misleading, or (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any state securities law or any rule or
regulation promulgated under the Securities Act, the Exchange Act or any state
securities law; and the Company will pay to each such Investor, underwriter or
controlling person, as incurred, any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim,
damage, liability, or action; provided, however,
that the indemnity agreement contained in this Section 5.5(a) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability, or
action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld or delayed), nor shall the Company
be liable to any Investor, underwriter or controlling person for any such loss,
claim, damage, liability, or action to the extent that it arises out of or is
based upon a Violation which occurs in reliance upon and in conformity with
written information furnished expressly for use in connection with such
registration by any such Investor, underwriter or controlling person.

(b)           To the extent permitted by law, each
selling Investor will indemnify and hold harmless the Company, each of its
directors, each of its officers who has signed the Registration Statement, each
person, if any, who controls the Company 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, the Exchange Act or other federal or state law, insofar as such losses,
claims, damages, or liabilities (or actions in respect thereto) arise out of or
are based upon any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by such Investor expressly for use in connection
with such registration; and each such Investor will pay, as incurred, any legal
or other expenses reasonably incurred by any person indemnified pursuant to
this Section 5.5(b), in connection with investigating or defending any such loss,
claim, damage, liability, or action; provided, however, that
the indemnity agreement contained in this Section 5.5(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of the Investor (which
consent shall not be unreasonably withheld or delayed); provided
further that in no event shall any indemnity under this Section
5.5(b) exceed the net proceeds from the offering received by such Investor.

(c)           Promptly after receipt by an
indemnified party under this Section 5.5 of notice of the commencement of any
action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this
Section 5.5, deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party (together with all other
indemnified parties which may be represented without conflict by one counsel)
shall have the right to retain one separate counsel, with the reasonable fees
and expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such
proceeding. The failure to deliver written notice to the 

 15
 

 

 

indemnifying party within a reasonable time after
receipt of notice of the commencement of any such action, if prejudicial to its
ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section 5.5, but the omission so
to deliver written notice to the indemnifying party will not relieve it of any
liability that it may have to any indemnified party otherwise than under this
Section 5.5.

(d)           If the indemnification provided for
in this Section 5.5 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any loss, liability, claim,
damage or expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability,
claim, damage, or expense in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the statements or omissions that resulted
in such loss, liability, claim, damage or expense as well as any other relevant
equitable considerations; provided that
in no event shall any contribution by an Investor under this Section 5.5(d)
exceed the net proceeds from the offering received by such Investor.  The relative fault of the indemnifying party
and of the indemnified party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative
intent, knowledge, access to information, and opportunity to correct or prevent
such statement or omission.

(e)           Notwithstanding the foregoing, to the
extent that the provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with the underwritten public
offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

(f)            The obligations of the Company and
Investors under this Section 5.5 shall survive the completion of any offering
of Registrable Shares in a registration statement and the termination of this
Agreement.

5.6           Suspension of Sales.

(a)           With respect to the Registration
Statement filed pursuant to Section 5.2, subject to the payment of any
liquidated damages which may accrue pursuant to Section 5.2(b)(iv), the Company
may suspend sales of Registrable Shares under such Registration Statement for a
period of not more than seventy-five (75) days in any twelve (12) month period
with respect to such Registration Statement if, at any time the Company is
engaged in confidential negotiations or other confidential business activities,
the disclosure of which would be required if such sales were not suspended and
the Board of Directors of the Company determines in good faith that such
suspension would be in the Company’s best interest at such time; provided,
that the Company shall not be permitted to suspend such sales for more than
seventy-five (75) days in any twelve (12) month period.  In order to suspend sales pursuant to this
Section 5.6(a), the Company shall promptly (but in any event within five (5)
business days), upon determining to seek such suspension, deliver to each
holder of Registrable Shares a certificate signed by an executive officer of
the Company stating that the Company is suspending such filing pursuant to this
Section 5.6(a). Each holder of Registrable Shares hereby agrees to 

 16
 

 

 

keep confidential any information disclosed to it in
any such certificate (including the fact that a certificate was delivered).

(b)           If the Company suspends such
Registration Statement pursuant to Section 5.6(a) above, the Company shall, as
promptly as practicable following the termination of the circumstances which
entitled the Company to do so but in no event more than fifteen (15) days
thereafter, take such actions as may be necessary to file or reinstate the
effectiveness of such Registration Statement and/or give written notice to the
selling Investors authorizing them to resume sales pursuant to such
Registration Statement.  If, as a result
thereof, the prospectus included in such Registration Statement has been
amended to comply with the requirements of the Securities Act, the Company
shall enclose such revised prospectus with the notice to the selling Investors
given pursuant to this Section 5.6(b), and the selling Investors shall make no
offers or sales of Shares pursuant to such Registration Statement other than by
means of such revised prospectus.

5.7           Transfer or Assignment of
Registration Rights.  The rights to
cause the Company to register Registrable Shares granted to an Investor by the
Company under this Section 5 may be transferred or assigned by an Investor to a
transferee or assignee of such Registrable Shares that (i) is a subsidiary,
parent, current or former partner, current or former limited partner, current
or former member, current or former manager or stockholder of an Investor, (ii)
is an entity controlling, controlled by or under common control, or under
common investment management, with an Investor, including without limitation a
corporation, partnership or limited liability company that is a direct or
indirect parent or subsidiary of the Investor, or (iii) is a transferee or
assignee of not less than 50,000 shares of Registrable Shares (as presently
constituted and subject to subsequent adjustments for stock splits, stock
dividends, reverse stock splits and the like), provided that
the Company is given written notice at the time of or within a reasonable time
after said transfer or assignment, stating the name and address of said
transferee or assignee and identifying the Securities with respect to which
such registration rights are being transferred or assigned, and provided further that the transferee or assignee of such
rights assumes the obligations of such Investor under this Section 5.

5.8           Reports Under Exchange Act.  With a view to making available to the
Investors the benefits of Rule 144 promulgated under the Securities Act and any
other rule or regulation of the SEC that may at any time permit an Investor to
sell Securities of the Company to the public without registration, the Company
agrees to:

(a)           Make and keep public information
available, as those terms are used in SEC Rule 144, at all times;

(b)           File with the SEC in a timely manner
all reports and other documents required of the Company under the Securities
Act and the Exchange Act;

(c)           Furnish to any Investor, so long as
the Investor owns any Registrable Shares, forthwith on request, (i) a written
statement by the Company that it has complied with the reporting requirements
of SEC Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the
most recent annual or quarterly report of the Company and such other reports
and documents so filed by the Company, and (iii) such other information as may
be 

 17
 

 

 

reasonably requested in availing any Investor of any
rule or regulation of the SEC that permits the selling of any such securities
without registration; and

(d)           Undertake any additional actions
reasonably necessary to maintain the availability of the use of Rule 144.

5.9           Delay of Registration.  No Investor shall have any right to obtain or
seek an injunction restraining or otherwise delaying any registration as the
result of any controversy that might arise with respect to the interpretation
or implementation of this Section 5.

6.             CONDITIONS
TO INVESTOR OBLIGATIONS AT CLOSING.

The obligations of the
Investors to purchase the Securities at the Closing are subject to the
fulfillment on or prior to the Closing of each of the following conditions:

6.1           Representations and Warranties.  The representations and warranties of the
Company contained in Section 2 shall be true in all material respects on and as
of the Closing Date with the same effect as though such representations and
warranties had been made on and as of the Closing Date, except that any
representations and warranties stated as being true and correct as of a date
other than the date hereof shall be true and correct as of such other date.

6.2           Performance.  The Company shall have performed and complied
with all agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before the
Closing.

6.3           Qualifications.  All authorizations, approvals, or permits, if
any, of any governmental authority or regulatory body of the United States or
of any state of the United States that are required in connection with the
lawful issuance and sale of the Securities to the Investors pursuant to this
Agreement shall have been duly obtained and shall be effective on and as of the
Closing.

6.4           Proceedings and Documents.  All corporate and other proceedings undertaken
in connection with the transactions contemplated at the Closing and all
documents incident thereto shall be reasonably satisfactory in form and
substance to each Investor, and they shall have received all such counterpart
original and certified or other copies of such documents as they may reasonably
request.

6.5           Absence of Litigation.  No proceeding challenging this Agreement or
the transactions contemplated hereby or thereby, or seeking to prohibit, alter,
prevent or delay the Closing, shall have been instituted against the Company
before any court, arbitrator or governmental body, agency or official and shall
be pending.

6.6           Compliance Certificate.  The Company shall deliver to the Investors at
the Closing, relating to the Investors’ purchase of Securities, a certificate
signed by the Chief Executive Officer of the Company stating that the Company
has complied with or satisfied each of the conditions to the Investors’
obligation to consummate the Closing set forth in Sections 6.1 through 6.5,
unless waived in writing by the Investors.

 18
 

 

 

 

6.7           Legal Prohibition.  The purchase of the Securities by the
Investors shall not be prohibited by any law or governmental order or
regulation.

7.             CONDITIONS
TO THE COMPANY’S OBLIGATIONS AT CLOSING.

The obligations of the Company under Section 1 of this
Agreement are subject to the fulfillment on or before the Closing of each of
the following conditions:

7.1           Representations and Warranties.  The representations and warranties of each
Investor contained in Section 3 shall be true in all respects on and as of the
Closing Date with the same effect as though such representations and warranties
had been made on and as of the Closing Date, except that any representations
and warranties stated as being true and correct as of a date other than the
date hereof shall be true and correct as of such other date.

7.2           Performance.  Each Investor shall have performed and
complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing.

7.3           Qualifications.  All authorizations, approvals, or permits, if
any, of any governmental authority or regulatory body of the United States or
of any state of the United States that are required in connection with the
lawful issuance and sale of the Securities to the Investors pursuant to this
Agreement shall have been duly obtained and shall be effective on and as of the
Closing.

7.4           Proceedings and Documents.  All corporate and other proceedings undertaken
in connection with the transactions contemplated by this Agreement and all
documents incident thereto shall be reasonably satisfactory in form and
substance to the Company and its counsel, and they shall have received all such
counterpart original and certified or other copies of such documents as they
may reasonably request.

8.             MISCELLANEOUS.

8.1           Survival of Warranties.  The warranties, representations, agreements,
covenants and undertakings of the Company or the Investors contained in or made
pursuant to this Agreement shall survive the execution and delivery of this
Agreement and the Closing and shall in no way be affected by any investigation
of the subject matter thereof made by or on behalf of the Investors or the
Company.

8.2           Incorporation by Reference.  All Exhibits and Schedules appended to this
Agreement are herein incorporated by reference and made a part hereof.

8.3           Successor and Assignees.  All terms, covenants, agreements,
representations, warranties and undertakings in this Agreement made by and on
behalf of any of the parties hereto shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto (including transferees
of any Securities) whether so expressed or not, subject to Section 5.7.

 19
 

 

 

8.4           Amendments and Waivers.  Neither this Agreement nor any provision
hereof shall be waived, modified, changed, discharged, terminated, revoked or
canceled except by an instrument in writing signed by the party against whom
any change, discharge or termination is sought. 
Failure of either party to exercise any right or remedy under this
Agreement or any other agreement between the Company and the Investors, or
otherwise, or delay by the Company or the Investors in exercising such right or
remedy, will not operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. 
The rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by law.

8.5           Governing Law.  This Agreement shall be deemed a contract
made under the laws of the State of New York, without giving effect to the
conflicts of law principles thereof.

8.6           Notices.  All notices, requests, consents, demands,
notice or other communication required or permitted under this Agreement shall
be in writing and shall be deemed duly given and received when delivered
personally or transmitted by facsimile, or one business day after being
deposited for next-day delivery with a nationally recognized overnight delivery
service, or three days after being deposited as first class mail with the
United States Postal Services, all charges or postage prepaid, and properly
addressed:

to the Company at:

Xenomics,
Inc.

420 Lexington Avenue, Suite 1701

New York, New York 10170

Tel:  (212) 297-0808

Fax:  (212) 297-1888

Attention:  Chief Executive Officer

with a copy (which shall not constitute notice) to:

Sichenzia
Ross Friedman Ference LLP

1065 Avenue of the Americas

New York, New York 10018

Fax: (212) 930-9725

Attention: Jeffrey J. Fessler

or to the Investors at the address set forth opposite
each Investor’s name on Exhibit A hereto

or such other address as
may be furnished in writing by a party hereto.

8.7           Counterparts. This Agreement
may be executed in counterparts, all of which together shall constitute one and
the same instrument.

8.8           Effect of Headings.  The section and paragraph headings herein are
included for convenience only and shall not affect the construction hereof.

 20
 

 

 

8.9           Entire Agreement.  This Agreement and the Exhibits and Schedules
hereto and thereto constitute the entire agreement among the Company and the
Investors with respect to the subject matter hereof.  There are no representations, warranties,
covenants or undertakings with respect to the subject matter hereof other than
those expressly set forth herein.  This
Agreement supersedes all prior agreements between the parties with respect to
the Securities purchased hereunder and the subject matter hereof.

8.10         Publicity.  Neither party shall originate any publicity,
news release or other public announcement, written or oral, whether relating to
the performance under this Agreement or the existence of any arrangement
between the parties, without the prior written consent of the other party
(which consent shall not be unreasonably withheld or delayed), except where
such publicity, news release or other public announcement is required by law or
by Section 4.1; provided that, in such event,
each such party shall (a) promptly consult the other party in connection with
any such publicity, news release or other public announcement prior to its
release; (b) promptly provide the other party a copy thereof; and (c) use
commercially reasonable efforts to ensure that such portions of such
information as may reasonably be designated by the other party are accorded
confidential treatment by the applicable governmental entity.

8.11         Severability.  If any provision of this Agreement is held by
a court of competent jurisdiction to be unenforceable under applicable law,
such provision shall be replaced with a provision that accomplishes, to the
extent possible, the original business purpose of such provision in a valid and
enforceable manner, and the balance of the Agreement shall be interpreted as if
such provision were so modified and shall be enforceable in accordance with its
terms.

8.12         Interpretation.  This Agreement shall be construed according
to its fair language.  The rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement.

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

8.14         Independent Nature of Investors’
Obligations and Rights. The obligations of each Investor under this
Agreement are several and not joint with the obligations of any other Investor,
and no Investor shall be responsible in any way for the performance of the
obligations of any other Investor under this Agreement. The decision of each
Investor to purchase Securities pursuant to this Agreement has been made by
such Investor independently of any other Investor and independently of any
information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company which may have been made
or given by any other Investor or by any agent or employee of any other
Investor, and no Investor or any of its agents or employees shall have any
liability to any other Investor (or any other person) relating to or arising from
any such information, materials, statements or opinions.  Nothing contained herein, and no action taken
by any Investor pursuant thereto, shall be deemed to constitute the Investors
as a partnership, an association, a joint venture or any other kind of entity,
or create a 

 21
 

 

 

presumption that the
Investors are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by this Agreement. Each Investor
acknowledges that no other Investor has acted as agent for such Investor in
connection with making its investment hereunder and that no other Investor will
be acting as agent of such Investor in connection with monitoring its
investment hereunder.  Each Investor
shall be entitled to independently protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not
be necessary for any other Investor to be joined as an additional party in any
proceeding for such purpose. The Company has elected to provide all Investors
with the same terms and form of this Agreement for the convenience of the
Company and not because it was required or requested to do so by the Investors.

 22
 

 

 

IN WITNESS WHEREOF, this Agreement has been executed
as of the date first above written, by the duly authorized representatives of
the parties hereto.

	
  

  	
   

  	
  XENOMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INVESTOR

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

 23
 

 

 

Schedule A

COMPANY SCHEDULE
OF EXCEPTIONS

Exhibit A

	
   

  	
  Investor Name and

  Notice Address

  	
   

  	
   

  	
  Cash Investment

  Amount

  	
   

  	
  Number of

  Shares

  	
   

  	
  Number of

  Warrants

  (1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)             A
number of warrants as equals 50% of the Shares subscribed for by each Investor

 

 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]