Document:

Ex 10-4

Exhibit 10.4

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE 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.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

MEDITE CANCER DIAGNOSTICS, INC.

 

Warrant
Shares: 4,120,308  Issue Date: September 26,
2017

 

  Initial
Exercise Date: March 26, 2018

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, GPB DEBT HOLDINGS II, LLC, or its
successors and assigns (the “Holder”) is entitled, upon
the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time six (6) months after
the date hereof (the “Initial Exercise Date”) and on or
prior to the close of business on the five (5) year anniversary of
the Issue Date (the “Termination Date”) but not
thereafter, to subscribe for and purchase from MEDITE CANCER
DIAGNOSTICS, INC., a Delaware corporation (the
“Company”), up to Four Million One Hundred Twenty
Thousand Three Hundred and Eighty (4,120,308) shares of Common
Stock (subject to adjustment hereunder, the “Warrant
Shares”). The initial exercise price per share of the Common
Stock under this Warrant (the “Exercise Price”) shall
be equal to $0.60, subject to adjustment as provided below. The
purchase price of one Warrant Share under this Warrant shall be
equal to the Exercise Price.

 

Section
1.                      Definitions.
Capitalized terms used and not otherwise defined herein shall have
the meanings set forth in that certain Securities Purchase
Agreement (as it may be amended, restated, supplemented or
otherwise modified from time to time in accordance with its terms,
the “Purchase Agreement”), dated September 26, 2017,
among the Company and the Purchaser.

 

Section
2.                      Exercise.

 

(a)           Exercise
of the purchase rights represented by this Warrant may be made, in
whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to
the Company (or such other office or agency of the Company as it
may designate by notice in writing to the registered Holder at the
address of the Holder appearing on the books of the Company) of a
duly executed facsimile (or other electronic method) copy of the
Notice of Exercise Form annexed hereto. Within two (2) Business
Days following the date of exercise as aforesaid, the Holder shall
deliver the aggregate Exercise Price for the shares specified in
the applicable Notice of Exercise by wire transfer or
cashier’s check drawn on a United States bank unless the
cashless exercise procedure specified in Section 2(c) below is
specified in the applicable Notice of Exercise. Notwithstanding
anything herein to the contrary (although the Holder may surrender
the Warrant to, and receive a replacement Warrant from, the
Company), the Holder shall not be required to physically surrender
this Warrant to the Company until the Holder has purchased all of
the Warrant Shares available hereunder and the Warrant has been
exercised in full, in which case, the Holder shall surrender this
Warrant to the Company for cancellation within three (3) Business
Days of the date the final Notice of Exercise is delivered to the
Company. Partial exercises of this Warrant resulting in purchases
of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number
of Warrant Shares purchasable hereunder in an amount equal to the
applicable number of Warrant Shares purchased. The Holder and the
Company shall maintain records showing the number of Warrant Shares
purchased and the date of such purchases. The Company shall deliver
any objection to any Notice of Exercise Form within one (1)
Business Day of delivery of such notice. The Holder by acceptance
of this Warrant, acknowledges and agrees that, by reason of the
provisions of this paragraph, following the purchase of a portion
of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than
the amount stated on the face hereof.

 

 

 

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(b)                      Reserved.

 

(c)                      Cashless
Exercise. If at the time of any exercise of this Warrant a
registration statement is not available for the issuance of the
Warrant Shares, then this Warrant may also be exercised at the
Holder’s election, in whole or in part and in lieu of making
the cash payment otherwise contemplated to be made to the Company
upon such exercise, at such time by means of a “cashless
exercise” in which the Holder shall be entitled to receive a
number of Warrant Shares equal to the quotient obtained by dividing
[(A-B) (X)] by (A), where:

 

(A) =
the VWAP on the trading day immediately preceding the date on which
Holder elects to exercise this Warrant by means of a
“cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

(B) =
the Exercise Price of this Warrant, as adjusted hereunder;
and

 

(X) =
the number of Warrant Shares that would be issuable upon exercise
of this Warrant in accordance with the terms of this Warrant if
such exercise were by means of a cash exercise rather than a
cashless exercise.

 

For
purposes of this Section 2(c), “VWAP” means, for any
date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock is then listed or quoted on
the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market,
the Nasdaq Global Select Market, the New York Stock Exchange, the
daily volume weighted average price of the Common Stock for such
date (or the nearest preceding date) on the Trading Market on which
the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (“Bloomberg”) (based on a trading day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)
if the Common Stock is quoted on the OTCQB or OTCQX, the volume
weighted average price of the Common Stock for such date (or the
nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the
Common Stock is not then listed or quoted for trading on OTCQB or
OTCQX and if prices for the Common Stock are then reported in the
“Pink Sheets” published by OTC Markets, Inc. (or a
similar organization or agency succeeding to its functions of
reporting prices), the most recent bid price per share of the
Common Stock so reported, or (d) in all other cases, the fair
market value of a share of Common Stock, as the case may be, as
determined by an independent appraiser selected in good faith by
the Holder and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

 

 

If Warrant Shares are issued in such a cashless exercise, the
parties acknowledge and agree that in accordance with Section
3(a)(9) of the Securities Act, the Warrant Shares shall take on the
characteristics of the Warrants being exercised, and the holding
period of the Warrants being exercised may be tacked on to the
holding period of the Warrant Shares.  The Company agrees
not to take any position contrary to this Section
2(c).

 

 

 

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(d)            

Mechanics of
Exercise.

 

(i)           Delivery
of Certificates Upon Exercise. Certificates for shares
purchased hereunder shall be transmitted to the Holder by the
Transfer Agent to the Holder by crediting the account of the
Holder’s prime broker with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system
(“DWAC”) if the Company is then a participant in such
system and either (A) there is an effective registration statement
permitting the issuance of the Warrant Shares to or resale of the
Warrant Shares by the Holder or (B) this Warrant is being exercised
via cashless exercise and Rule 144 is available, and otherwise by
physical delivery to the address specified by the Holder in the
Notice of Exercise by the date that is three (3) Business Days
after the latest of (A) the delivery to the Company of the Notice
of Exercise and (B) payment of the aggregate Exercise Price as set
forth above (unless by cashless exercise, if permitted) (such date,
the “Warrant Share Delivery Date”). The Warrant Shares
shall be deemed to have been issued, and Holder or any other Person
so designated to be named therein shall be deemed to have become a
holder of record of such shares for all purposes, as of the date
the Warrant has been exercised, with payment to the Company of the
Exercise Price (or by cashless exercise, if permitted) and all
taxes required to be paid by the Holder, if any, pursuant to
Section 2(d)(vi) prior to the issuance of such shares, having been
paid. The Company understands that a
delay in the delivery of the Warrant Shares after the Warrant Share
Delivery Date (a “Delivery Failure”) could result in
economic loss to the Holder. If the Company fails for any
reason to credit Holder’s or its designees’ account
with DTC or issue and deliver to the Holder such certificate or
certificates pursuant to this Section 2(d)(i) by the Warrant Share
Delivery Date (a “Delivery Failure”), and if on or
after such Warrant Share Delivery Date the Holder purchases (in an
open market transaction or otherwise) shares of the Company’s
Common Stock to deliver in satisfaction of a sale by the Holder of
all or any portion of the number of shares of Common Stock issuable
upon such conversion that the Holder anticipated receiving from the
Company (a “Buy-In”), then, in addition to all other
remedies available to the Holder, the Company shall, within three
(3) Business Days after receipt of the Holder’s request and
in the Holder’s sole discretion, either, at the
Holder’s option (I) pay cash to the Holder in an amount equal
to the Holder’s total purchase price (including brokerage
commissions and other out-of-pocket expenses, if any) for the
shares of Common Stock so purchased (including, without limitation,
by any other Person in respect, or on behalf, of the Holder) (the
“Buy-In Price”), at which point the Company’s
obligation to so issue and deliver such certificate or credit the
balance account of the Holder or the Holder’s designee, as
applicable, with DTC for the number of shares of Common Stock to
which the Holder is entitled upon the Holder’s conversion of
the applicable Conversion Amount shall terminate, or (II) promptly
(but in no event later than five two (2) Business Days following
the request by the Holder) honor its obligation to so issue and
deliver to the Holder a certificate or certificates representing
such shares of Common Stock or credit the balance account of such
Holder or such Holder’s designee, as applicable, with DTC for
the number of shares of Common Stock to which the Holder
anticipated receiving from the Company and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over
the product of (x) such number of shares of Common Stock multiplied
by (y) the lowest closing sale price or closing bid price (as the
case may be) of the Common Stock on any Business Day during the
period commencing on the date of the applicable Conversion Notice
and ending on the date of such issuance and payout under this
clause II (the “Buy-In Payment Amount”). Nothing herein
or elsewhere shall limit the 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 shares of
Common Stock (or to timely electronically deliver such shares of
Common Stock) upon the conversion of this Note as required pursuant
to the terms hereof. In addition, as
compensation to the Holder for such loss, the Company agrees to pay
(as liquidated damages and not as a penalty) to the Holder for late
issuance of Warrant Shares upon exercise of this Warrant the
proportionate amount of $10 per Business Day (increasing to $20 per
Business Day after the fifth (5th)
Business Day) after the Warrant Share Delivery Date for each $1,000
of Exercise Price of Warrant Shares for which this Warrant is
exercised which are not timely delivered. The Company shall pay any
payments incurred under this Section 2(d)(i) in immediately
available funds upon demand. Furthermore, in addition to any other
remedies which may be available to the Holder, in the event that
the Company fails for any reason to effect delivery of the Warrant
Shares by the Warrant Share Delivery Date, the Holder may revoke
all or part of the relevant Warrant exercise by delivery of a
notice to such effect to the Company, whereupon the Company and the
Holder shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this
Warrant, except that the liquidated damages described above shall
be payable through the date notice of revocation or rescission is
given to the Company.

 

 

 

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(ii)           Delivery
of New Warrants Upon Exercise. If this Warrant shall have
been exercised in part, the Company shall, at the request of a
Holder and upon surrender of this Warrant certificate, at the time
of delivery of the certificate or certificates representing Warrant
Shares, deliver to the Holder a new Warrant evidencing the rights
of the Holder to purchase the unpurchased Warrant Shares called for
by this Warrant, which new Warrant shall in all other respects be
identical to this Warrant.

 

(iii)           Rescission
Rights. If the Company fails to deliver the Warrant Shares
cause the Transfer Agent to transmit to the Holder a certificate or
the certificates representing the Warrant Shares pursuant to
Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder
will have the right, at any time prior to issuance of such Warrant
Shares, to rescind such exercise.

 

(iv)           Reserved.

 

(v)           No
Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of
this Warrant. As to any fraction of a share which the Holder would
otherwise be entitled to purchase upon such exercise, the Company
shall, at its election, either pay a cash adjustment in respect of
such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole
share.

 

(vi)           Charges,
Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance
of such certificate including any charges of any clearing firm, all
of which taxes and expenses shall be paid by the Company, and such
certificates shall be issued in the name of the Holder or in such
name or names as may be directed by the Holder; provided, however, that in the event
certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder and the Company may require, as
a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay
all Transfer Agent fees required for same-day processing of any
Notice of Exercise.

 

(vii)           Closing
of Books. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

 

 

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(e)           Holder’s
Exercise Limitations. The Company shall not effect any
exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, pursuant to Section 2 or
otherwise, to the extent that after giving effect to such issuance
after exercise as set forth on the applicable Notice of Exercise,
the Holder (together with the Holder’s Affiliates, and any
other Persons acting as a group together with the Holder or any of
the Holder’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below). For
purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall
include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which
would be issuable upon (i) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by the Holder or any of
its Affiliates and (ii) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company
(including, without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder or any
of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 2(e), beneficial ownership
shall be calculated in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder,
it being acknowledged by the Holder that the Company is not
representing to the Holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance
therewith. To the extent that the limitation contained in this
Section 2(e) applies, the determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and
the submission of a Notice of Exercise shall be deemed to be the
Holder’s determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with
any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership
Limitation, and the Company shall have no obligation to verify or
confirm the accuracy of such determination. In addition, a
determination as to any group status as contemplated above shall be
determined in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder. For purposes of
this Section 2(e), in determining the number of outstanding shares
of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most
recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the Transfer
Agent setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of a Holder,
the Company shall within one Business Day confirm orally and in
writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the
conversion or exercise of securities of the Company, including this
Warrant, by the Holder or its Affiliates since the date as of which
such number of outstanding shares of Common Stock was reported. The
“Beneficial Ownership Limitation” shall be 4.99% of the
number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock issuable
upon exercise of this Warrant. The Holder, upon not less than 61
days’ prior notice to the Company, may increase the
Beneficial Ownership Limitation provisions of this Section 2(e)
solely with respect to the Holder’s Warrant, provided that
the Beneficial Ownership Limitation in no event exceeds 9.99% of
the number of shares of Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of
this Section 2(e) shall continue to apply. Any such increase will
not be effective until the 61st day after such
notice is delivered to the Company. The Holder may also decrease
the Beneficial Ownership Limitation provisions of this Section 2(e)
solely with respect to the Holder’s Warrant at any time,
which decrease shall be effectively immediately upon delivery of
notice to the Company. The provisions of this paragraph shall be
construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 2(e) to correct this
paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or
desirable to properly give effect to such limitation. The
limitations contained in this paragraph shall apply to a successor
holder of this Warrant.

 

 

 

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Section
3.                      Certain
Adjustments.

 

(a)           Stock
Dividends and Splits. If the Company, at any time while this
Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock
or any other equity or equity equivalent securities payable in
shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon
exercise of this Warrant or pursuant to any of the other
Transaction Documents), (ii) subdivides outstanding shares of
Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (iv) issues by
reclassification of shares of the Common Stock any shares of
capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be
the number of shares of Common Stock (excluding treasury shares, if
any) outstanding immediately before such event and of which the
denominator shall be the number of shares of Common Stock
outstanding immediately after such event, and the number of shares
issuable upon exercise of this Warrant shall be proportionately
adjusted such that the aggregate Exercise Price of this Warrant
shall remain unchanged. Any adjustment made pursuant to this
Section 3(a) shall become effective immediately after the record
date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination
or re-classification.

 

(b)           Adjustments
for Issuance of Additional Securities. If the Company, at
any time while this Warrant is outstanding, issue or sell any
additional shares of Common Stock or Common Stock Equivalents
(hereafter defined) (“Additional Shares of Common
Stock”), in a transaction other than an Exempt Issuance, at a
price per share less
 than the Exercise Price then in effect or without
consideration (a “Dilutive Issuance” based on a
“Dilutive Issuance Price”), then the (i) Exercise Price
upon each such issuance shall be reduced to an amount equal to the
greater of the Dilutive Issuance Price or $0.30 and (ii) the number
of Warrant Shares (excluding Warrant Shares previously exercised)
shall be increased on a full ratchet basis to the number of shares
of Common Stock determined by multiplying the Exercise Price then
in effect immediately prior to such adjustment by the number of
Warrant Shares (excluding Warrant Shares previously exercised)
acquirable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price
resulting from such adjustment. By way of example, if E is the
total number of Warrant Shares in effect immediately prior to such
Dilutive Issuance, F is the Exercise Price in effect immediately
prior to such Dilutive Issuance, and G is the Dilutive Issuance
Price, the adjustment to the. [number of Warrant Shares can be
expressed in the following formula: Total number of Warrant Shares
after such Dilutive Issuance = the quotient obtained from dividing
[E x F] by G.

 

If the
price per share for which Additional Shares of Common Stock are
sold, or may be issuable pursuant to any such Common Stock
Equivalent, is less than the applicable Exercise Price then in
effect, or if, after any such issuance of Common Stock Equivalents,
the price per share for which Additional Shares of Common Stock may
be issuable thereafter is amended or adjusted, and such price as so
amended shall be less than the applicable Exercise Price in effect
at the time of such amendment or adjustment, then the applicable
Exercise Price and number of Warrant Shares shall be adjusted upon
each such issuance or amendment as provided in this Section
3(b).   If any shares of Common Stock or Common Stock
Equivalents are issued or sold or deemed to have been issued or
sold for cash, the amount of such consideration received by the
Company will be deemed to be the net amount received by the Company
therefor. If any shares of Common Stock or Common Stock Equivalents
are issued or sold for a consideration other than cash, the amount
of such consideration received by the Company will be the fair
value of such consideration, except where such consideration
consists of publicly traded securities, in which case the amount of
consideration received by the Company will be the VWAP of such
public traded securities on the date of receipt. If any shares of
Common Stock or Common Stock Equivalents are issued to the owners
of the non-surviving entity in connection with any merger in which
the Company is the surviving entity, the amount of consideration
therefor will be deemed to be the fair value of such portion of the
net assets and business of the non-surviving entity as is
attributable to such shares of Common Stock or Common Stock
Equivalents, as the case may be.

 

“Common Stock
Equivalents” means any rights or warrants or options to
purchase any Common Stock or Convertible Securities.

 

The
provisions of this Section 3(b) shall apply each time a Dilutive
Issuance occurs after the Original Issuance Date.  No
adjustment shall be made pursuant to this Section 3(b) with respect
to an Exempt Issuance.

 

(c)           Reserved.

 

 

 

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(d)           Subsequent
Rights Offerings. In addition
to any adjustments pursuant to Section 3(a) above, if at any time
the Company grants, issues or sells any Common Stock Equivalents or
rights to purchase stock, warrants, securities or other property
pro rata to the record holders of any class of shares of Common
Stock (the “Purchase Rights”), then the Holder will be
entitled to acquire, upon the terms applicable to such Purchase
Rights, the aggregate Purchase Rights which the Holder could have
acquired if the Holder had held the number of shares of Common
Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof, including without
limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale
of such Purchase Rights, or, if no such record is taken, the date
as of which the record holders of shares of Common Stock are to be
determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to
participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder
shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a
result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until
such time, if ever, as its right thereto would not result in the
Holder exceeding the Beneficial Ownership
Limitation).

 

(e)           Pro
Rata Distributions. If the Company, at any time while this
Warrant is outstanding, shall distribute to all holders of Common
Stock (and not to the Holder) evidences of its indebtedness or
assets (including cash and cash dividends) or rights or warrants to
subscribe for or purchase any security other than the Common Stock
(which shall be subject to Section 3(c)), then in each such case
the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date fixed for
determination of stockholders entitled to receive such distribution
by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator
shall be such VWAP on such record date less the then per share fair
market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one
outstanding share of the Common Stock as determined by the Board of
Directors in good faith. In either case the adjustments shall be
described in a statement provided to the Holder of the portion of
assets or evidences of indebtedness so distributed or such
subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and
shall become effective immediately after the record date mentioned
above.

 

 

 

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(f)           Fundamental
Transaction. If, at any time while this Warrant is
outstanding, (i) the Company, directly or indirectly, in one or
more related transactions effects any merger or consolidation of
the Company with or into another Person, (ii) the Company, directly
or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii)
any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification,
reorganization or recapitalization 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, (v) the Company, directly or indirectly, in one or
more related transactions consummates a stock or share purchase
agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme
of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of
Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this
Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable (without regard to any
limitation on the exercise of this Warrant), at the option of the
Holder, the number, class, and series of shares of stock of the
successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as a result of
such Fundamental Transaction by a holder of the number of shares of
Common Stock for which this Warrant is exercisable immediately
prior to such Fundamental Transaction (without regard to any
limitation on the exercise of this Warrant). 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. Notwithstanding anything to
the contrary, in the event of a Fundamental Transaction, the
Company or any Successor Entity (as defined below) shall, at the
Holder’s option, exercisable at any time concurrently with,
the consummation of the Fundamental Transaction, purchase this
Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised
portion of this Warrant on the date of the consummation of such
Fundamental Transaction or (ii) the positive difference between the
cash per share paid in such Fundamental Transaction minus the then
in effect Exercise Price. “Black Scholes Value” means
the value of the unexercised portion of this Warrant based on the
Black and Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg determined as of the day
immediately prior to consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period
equal to the time between the date of the public announcement of
the applicable Fundamental Transaction and the Termination Date,
(B) an expected volatility equal to the 100 day volatility obtained
from the HVT function on Bloomberg as of the Trading Day
immediately preceding the public announcement of the applicable
Fundamental Transaction, (C) the underlying price per share used in
such calculation shall be the sum of the price per share being
offered in cash, if any, plus the value of any non-cash
consideration, if any, being offered in such Fundamental
Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date. The Company shall
cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the
Company under this Warrant and the other Transaction Documents in
accordance with the provisions of this Section 3(f) pursuant to
written agreements in form and substance reasonably satisfactory to
the Holder and approved by the Holder (without unreasonable delay)
prior to such Fundamental Transaction and shall, at the option of
the Holder, deliver to the Holder in exchange for this Warrant a
security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant which
is exercisable for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to
the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such
shares of capital stock (but taking into account the relative value
of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for
the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and
substance to the Holder. Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant and the
other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other
Transaction Documents with the same effect as if such Successor
Entity had been named as the Company herein.

 

 

 

-8-

 

 

 

(g)           Calculations.
All calculations under this Section 3 shall be made to the nearest
cent or the nearest 1/100th of a share, as the case may be. For
purposes of this Section 3, the number of shares of Common Stock
deemed to be issued and outstanding as of a given date shall be the
sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

 

(h)           Notice
to Holder.

 

(i)           Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted
pursuant to any provision of this Section 3, the Company shall
promptly email to the Holder a notice setting forth the Exercise
Price after such adjustment and any resulting adjustment to the
number of Warrant Shares and setting forth a brief statement of the
facts requiring such adjustment. The Holder may supply an email
address to the Company and change such address.

 

(ii)           Notice
to Allow Exercise by Holder. If (A) the Company shall
declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special
nonrecurring cash dividend on or a redemption of the Common Stock,
(C) the Company shall authorize the granting to all holders of the
Common Stock rights or warrants to subscribe for or purchase any
shares of capital stock of any class or of any rights, (D) the
approval of any stockholders of the Company shall be required in
connection with any reclassification of the Common Stock, any
consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the
Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities, or (E) the Company shall
authorize the voluntary or involuntary dissolution, liquidation or
winding up of the affairs of the Company, then, in each case, the
Company shall deliver to the Holder at its last address as it shall
appear upon the Warrant Register of the Company, at least 20
calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a
record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not
to be taken, the date as of which the holders of the Common Stock
of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date
on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares
of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange; provided that the failure to
email such notice or any defect therein or in the emailing thereof
shall not affect the validity of the corporate action required to
be specified in such notice. The Holder shall remain entitled to
exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth
herein.

 

Section
4.                      Transfer
of Warrant.

 

(a)           Transferability.
Subject to compliance with any applicable securities laws and the
provisions of the Purchase Agreement, this Warrant and all rights
hereunder (including, without limitation, any registration rights)
are transferable, in whole or in part, upon surrender of this
Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such
surrender and, if required, such payment, the Company shall execute
and deliver a new Warrant or Warrants in the name of the assignee
or assignees, as applicable, and in the denomination or
denominations specified in such instrument of assignment, and shall
issue to the assignor a new Warrant evidencing the portion of this
Warrant not so assigned, and this Warrant shall promptly be
cancelled. The Warrant, if properly assigned in accordance
herewith, may be exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

 

(b)           New
Warrants. This Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and
denominations in which new Warrants are to be issued, signed by the
Holder or its agent or attorney. Subject to compliance with Section
4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or
combined in accordance with such notice. All Warrants issued on
transfers or exchanges shall be dated the initial issuance date of
this Warrant and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant
thereto.

 

(c)           Warrant
Register. 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.

 

 

 

-9-

 

 

 

Section
5.                      Miscellaneous.

 

(a)           No
Rights as Stockholder Until Exercise. This Warrant does not
entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof other
than as explicitly set forth in Section 3.

 

(b)           Loss,
Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it, and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in
lieu of such Warrant or stock certificate.

 

(c)           Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then, such action may
be taken or such right may be exercised on the next succeeding
Business Day.

 

(d)           Authorized
Shares.

 

The Company covenants that, during the period the
Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock, free of preemptive rights, a sufficient
number of shares equal to two
times the number of Warrant Shares issuable under the Purchase
Agreement to all Purchasers thereunder (without regard to any
limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation). The Company further covenants
that its issuance of this Warrant shall constitute full authority
to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for
the Warrant Shares upon the exercise of the purchase rights under
this Warrant. The Company will take all such commercially
reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of any Trading
Market upon which the Common Stock may be listed. The Company
covenants that all Warrant Shares which may be issued upon the
exercise of the purchase rights represented by this Warrant will,
upon exercise of the purchase rights represented by this Warrant
and payment for such Warrant Shares in accordance herewith, be duly
authorized, validly issued, fully paid and non-assessable and free
from all taxes, liens and charges created by the Company in respect
of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

Except
and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all such terms and in the taking of
all such actions as may be necessary or appropriate to protect the
rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may
be, necessary to enable the Company to perform its obligations
under this Warrant.

 

Before
taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall use commercially reasonable
efforts to obtain all such authorizations or exemptions thereof, or
consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

 

(e)           Jurisdiction.
All questions concerning the construction, validity, enforcement
and interpretation of this Warrant shall be determined in
accordance with the provisions of the Purchase
Agreement.

 

(f)           Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the
exercise of this Warrant, if not registered or if not exercised on
a cashless basis when Rule 144 is available, may have restrictions
upon resale imposed by state and federal securities
laws.

 

 

 

-10-

 

 

 

(g)           Non-waiver
and Expenses. No course of dealing or any delay or failure
to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s
rights, powers or remedies. Without limiting any other provision of
this Warrant or the Purchase Agreement, if the Company willfully
and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company
shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to,
reasonable attorneys’ fees, including those of appellate
proceedings, incurred by the Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

 

(h)           Notices.
Any notice, request or other document required or permitted to be
given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase
Agreement.

 

(i)           Limitation
of Liability. No provision hereof, in the absence of any
affirmative action by the Holder to exercise this Warrant to
purchase Warrant Shares, and no enumeration herein of the rights or
privileges of the Holder, shall give rise to any liability of the
Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.

 

(j)           Remedies.
The Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company
agrees that monetary damages would not be adequate compensation for
any loss incurred by reason of a breach by it of the provisions of
this Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law
would be adequate or that there is no irreparable harm and not to
require the posting of a bond or other security.

 

(k)           Successors
and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted
assigns of the Company and the successors and permitted assigns of
Holder. The provisions of this Warrant are intended to be for the
benefit of any Holder from time to time of this Warrant and shall
be enforceable by the Holder or holder of Warrant
Shares.

 

(l)           Amendment.
This Warrant may be modified or amended or the provisions hereof
waived with the written consent of the Company and Holders of at least a majority of the
outstanding Warrants issued pursuant to the Purchase
Agreement.

 

(m)           Severability.
Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be
prohibited by or invalid under applicable law, such provision shall
be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provisions or the
remaining provisions of this Warrant.

 

********************

 

(Signature Page Follows)

 

 

 

-11-

 

 

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

 

 

	

MEDITE CANCER DIAGNOSTICS, INC.

 

	

 

 

By:
/s/ David E.
Patterson

Name:
David Patterson

Title:
Chief Executive Officer

 

 

 

	
 

 

 

 

 

-12-

 

 

NOTICE OF EXERCISE

 

TO:            

MEDITE CANCER
DIAGNOSTICS, INC.

 

(1)           The
undersigned hereby elects to purchase ________ Warrant Shares of
the Company pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise
price in full, together with all applicable transfer taxes, if
any.

 

(2)           Payment
shall take the form of (check applicable box):

 

[ ] in
lawful money of the United States; or

 

[ ] [if
permitted] the cancellation of such number of Warrant Shares as is
necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number
of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

(3)           Please
issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is
specified below:

 

_______________________________

 

(4)           After
giving effect to this Notice of Exercise, the undersigned will not
have exceeded the Beneficial Ownership Limitation.

 

 

 

The
Warrant Shares shall be delivered to the following DWAC Account
Number or by physical delivery of a certificate to:

 

 

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

Name of
Investing Entity:
______________________________________________________________________

Signature of Authorized Signatory of Investing
Entity:
________________________________________________

Name of
Authorized Signatory:
__________________________________________________________________

Title
of Authorized Signatory:
___________________________________________________________________

Date:
_______________________________________________________________________________________

 

 

-13-

 

 

ASSIGNMENT FORM

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do not
use this form to exercise the warrant.)

 

_____________________

 

FOR
VALUE RECEIVED, [____] all of or [_______] shares of the foregoing
Warrant and all rights evidenced thereby are hereby assigned
to

 

_______________________________________________
whose address is

 

_______________________________________________________________

 

 

 

_______________________________________________________________

 

Dated:
______________, _______

 

 

Holder’s
Signature:                                          
_____________________________

 

Holder’s
Address:                                            
_____________________________

_____________________________

 

 

 

Signature
Guaranteed:
___________________________________________

 

 

NOTE:
The signature to this Assignment Form must correspond with the name
as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever, and must be guaranteed by a
bank or trust company. Officers of corporations and those acting in
a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Warrant.

 

 

 

 

 

-14-Ex10-5

 

  Exhibit
10.5

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (as it may be amended, restated,
supplemented or otherwise modified from time to time, this
“Agreement”) is made and
entered into as of September 26, 2017, by and among Medite Cancer Diagnostics, Inc., a
Delaware corporation (the “Company”), and the
purchaser identified on the signature pages hereto (including its
successors and permitted assigns, the “Purchaser”).

 

This
Agreement is being entered into pursuant to the Securities Purchase
Agreement dated as of the date hereof among the Company and the
Purchaser (as it may be amended, restated, supplemented or
otherwise modified from time to time, the “Purchase
Agreement”).

 

The
Company and the Purchaser hereby agree as follows:

 

1.           Definitions.

 

Capitalized terms
used and not otherwise defined herein shall have the meanings given
such terms in the Purchase Agreement.1  As used in this Agreement,
the following terms shall have the following meanings:

 

“Advice” shall have
meaning set forth in Section 3(m).

 

“Affiliate” means, with
respect to any Person, any other Person which directly or
indirectly through one or more intermediaries Controls, is
controlled by, or is under common control with, such Person,
including, without limitation, any Person that, directly or
indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person as such
terms are used in and construed under Rule 405 under the Securities
Act.  For the avoidance of doubt, with respect to a
Purchaser which is a general or limited partnership, an Affiliate
shall be deemed to include affiliated partnerships managed by the
same management company or managing general partner or by an entity
which controls, is controlled by, or is under common control with,
such management company or managing general partner.

 

“Board” shall have meaning
set forth in Section 3(n).

 

 “Commission”
means the Securities and Exchange Commission.

 

“Control” (including the
terms “controlling”, “controlled by” or
“under common control with”) means the possession,
direct or indirect, of the power to direct or cause the direction
of the management and policies of a Person, whether through the
ownership of voting securities, by contract or
otherwise.

 

“Effectiveness Date” means
with respect to the Registration Statement under Section 2(a), the
earlier of (A) the ninetieth (90th) day following the later to
occur of (i) the Closing Date or (ii) or in the event the
Registration Statement receives a “full review” by the
Commission, the one hundred and eighty (180th) following the
Closing Date, or (B) the date which is within three (3) Business
Days after the date on which the Commission informs the Company (i)
that the Commission will not review the Registration Statement or
(ii) that the Company
may request the acceleration of the effectiveness of the
Registration Statement; provided, however, that, if the Effectiveness Date
falls on a Saturday, Sunday or any other day which shall be a legal
holiday or a day on which the Commission is authorized or required
by law or other government actions to close, the Effectiveness Date
shall be the following Business Day.

 

“Effectiveness Period”
shall have the meaning set forth in Section 2(a).

 

“Event” shall have the
meaning set forth in Section 7(f).

 

 

-1-

 

 

“Event Date” shall have
the meaning set forth in Section 7(f).

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Filing Date” means with
respect to a Registration Statement under Section 2(a), the date
that is the sixtieth (60th) day following the Closing Date;
provided,
however that if the
Filing Date falls on a Saturday, Sunday or any other day which
shall be a legal holiday or a day on which the Commission is
authorized or required by law or other government actions to close,
the Filing Date shall be the following Business Day.

 

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

 

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

 

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

 

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

 

“Note Shares” means the
Common Stock issuable upon conversion of the Note.

 

“Offering” means the
offering made pursuant to Section 4(a)(2) of the Securities Act and
Rule 506 promulgated thereunder of the Securities of the Company
pursuant to the Purchase Agreement.

 

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

 

“Purchase Agreement” has
the meaning set forth in the recitals hereto.

 

“Registration Statement”
means either (a) an appropriate Registration Statement that
register the Registrable Securities, or (b) a registration
statement and any additional registration statements contemplated
by Section 2, including (in each case) the Prospectus, amendments
and supplements to such registration statement or Prospectus,
including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference in such registration
statement.

 

“Rule 158” means Rule 158
promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially
the same effect as such Rule.

 

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

 

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

 

“Securities Act” means the
Securities Act of 1933, as amended.

 

 

 

-2-

 

 

“SEC Guidance” means (i)
any publicly available written or oral guidance of the Commission
staff, or any comments, requirements or requests of the Commission
staff and (ii) the Securities Act.

 

“Selling Stockholder
Questionnaire” means a questionnaire in the form
attached as Exhibit
B hereto, or such other form of questionnaire as may
reasonably be adopted by the Company from time to
time.

 

 

2.           Resale
Registration.

 

(a)           On
or prior to the Filing Date, the Company shall prepare and file
with the Commission a “resale” Registration Statement
providing for the resale of all Registrable Securities by means of
an offering to be made on a continuous basis pursuant to Rule
415.  The Registration Statement shall be on Form S-3 or
Form S-1 (or another appropriate form in accordance
herewith).  The Company shall (i) not permit any
securities other than the Registrable Securities to be included in
the Registration Statement and (ii) 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 prior to the Effectiveness
Date, and to keep such Registration Statement continuously
effective under the Securities Act until such date as is the
earlier of (x) the date when all Registrable Securities covered by
such Registration Statement have been sold, or (y) the date on
which the Registrable Securities may be sold without any
restriction pursuant to Rule 144 as determined by the counsel to
the Company pursuant to a written opinion letter, addressed to the
Company’s transfer agent to such effect (the
“Effectiveness
Period”).  The Company shall request that
the effective time of the Registration Statement be 4:00 p.m.
Eastern Time on the Effectiveness Date.  If at any time
and for any reason, an additional Registration Statement is
required to be filed because at such time the actual number of
Registrable Securities exceeds the number of Registrable Securities
remaining under the Registration Statement and such Registrable
Securities are not saleable under Rule 144, without limitation, the
Company shall have sixty (60) Business Days to file such additional
Registration Statement, and the Company shall use its commercially
reasonable efforts to cause such additional Registration Statement
to be declared effective by the Commission as soon as possible, but
in no event later than ninety (90)) days after such filing;
provided, however that if the prior Registration Statement was
filed within six months of such sixty (60) or ninety (90) day
period, then the sixty (60) and ninety (90 ) days shall commence
immediately after the expiration of the date that is six months
after the filing of the prior Registration Statement, unless then
current securities laws permit the earlier registration of
same.

 

    (b)           Notwithstanding
anything to the contrary set forth in this Section 2, in the event
the Commission does not permit the Company to register all of the
Registrable Securities in the Registration Statement because of the
Commission’s application of Rule 415, the number of
Registrable Securities to be registered on such Registration
Statement will be reduced in the order of the Registrable
Securities represented by the total number of Note Shares and
Warrant Shares owned by the Holders, applied on a pro rata basis,
The Company shall use its commercially reasonable efforts to file
additional Registration Statements to register the Registrable
Securities that were not registered in the initial Registration
Statement and are not saleable under Rule 144 without limitation as
promptly as possible but in no event later than on the Filing Date
and in a manner permitted by the Commission.  For
purposes of this Section 2(b), “Filing Date” means with
respect to each subsequent Registration Statement filed pursuant
hereto, the later of (i) sixty (60) days following the sale of
substantially all of the Registrable Securities included in the
initial Registration Statement or any subsequent Registration
Statement and (ii) six (6) months following the effective date of
the initial Registration Statement or any subsequent Registration
Statement, as applicable, or such earlier date as permitted by the
Commission.  For purposes of this Section 2(b),
“Effectiveness
Date” means with respect to each subsequent
Registration Statement filed pursuant hereto, the earlier of (A)
the ninetieth (90th) day following the filing date of such
Registration Statement (or in the event such Registration Statement
receives a “full review” by the Commission, the one
hundred twentieth (120th) day following such filing date) or (B)
the date which is within three (3) Business Days after the date on
which the Commission informs the Company (i) that the Commission
will not review such Registration Statement or (ii) that the Company may request the
acceleration of the effectiveness of such Registration Statement;
provided, that, if
the Effectiveness Date falls on a Saturday, Sunday or any other day
which shall be a legal holiday or a day on which the Commission is
authorized or required by law or other government actions to close,
the Effectiveness Date shall be the following Business
Day.

 

 

 

-3-

 

 

(c)           Each
Holder agrees to furnish to the Company a completed Selling
Stockholder Questionnaire not more than ten (10) Business Days
prior to the filing of a Registration Statement. Each Holder
further agrees that it shall not be entitled to be named as a
selling security holder in the Registration Statement or use the
Prospectus for offers and resales of Registrable Securities at any
time, unless such Holder has returned to the Company a completed
and signed Selling Stockholder Questionnaire. If a Holder of
Registrable Securities returns a Selling Stockholder Questionnaire
after the deadline specified in the previous sentence, the Company
shall use its commercially reasonable efforts to take such actions
as are required to name such Holder as a selling security holder in
the Registration Statement or any pre-effective or post-effective
amendment thereto and to include (to the extent not theretofore
included) in the Registration Statement the Registrable Securities
identified in such late Selling Stockholder Questionnaire;
provided that the
Company shall not be required to file an additional Registration
Statement solely for such shares. Each Holder acknowledges and
agrees that the information in the Selling Stockholder
Questionnaire will be used by the Company in the preparation of the
Registration Statement and hereby consents to the inclusion of such
information in the Registration Statement.

 

3.           Registration
Procedures.

 

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

 

                 
             (a)           Prepare
and file with the Commission, on or prior to the Filing Date, a
Registration Statement on Form S-1 (or another appropriate form in
accordance herewith) in accordance with the plan of distribution as
set forth on Exhibit
A hereto and in accordance with applicable law, and cause
the Registration Statement to become effective and remain effective
as provided herein; provided, however, that not less than
five (5) Business Days prior to the filing of the Registration
Statement or any related Prospectus or any amendment or supplement
thereto, the Company shall (i) furnish to the Holders copies of all
such documents proposed to be filed, which documents will be
subject to the review of such Holders, and (ii) cause its officers
and directors, counsel and independent certified public accountants
to respond to such inquiries as shall be necessary to conduct a
reasonable review of such documents.  The Company shall
not file the Registration Statement or any such Prospectus or any
amendments or supplements thereto to which the Purchasers shall
reasonably object in writing within three (3) Business Days of
their receipt thereof.

 

(b)           (i)
Prepare and file with the Commission such amendments, including
post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective
as to the applicable Registrable Securities for the Effectiveness
Period and prepare and file with the Commission such additional
Registration Statements as necessary in order to register for
resale under the Securities Act all of the Registrable Securities;
(ii) cause the related Prospectus to be amended or supplemented by
any required Prospectus supplement, and as so supplemented or
amended to be filed pursuant to Rule 424 (or any similar provisions
then in force) promulgated under the Securities Act; (iii) respond
as promptly as possible, but in no event later than twenty (20)
Business Days, to any comments received from the Commission with
respect to the Registration Statement or any amendment thereto and
as promptly as possible provide the Holders true and complete
copies of all correspondence from and to the Commission relating to
the Registration Statement; (iv) file the final prospectus pursuant
to Rule 424 of the Securities Act no later than two (2) Business
Days following the date the Registration Statement is declared
effective by the Commission; and (v) comply in all material
respects with the provisions of the Securities Act and the Exchange
Act with respect to the disposition of all Registrable Securities
covered by the Registration Statement during the Effectiveness
Period in accordance with the intended methods of disposition by
the Holders thereof set forth in the Registration Statement as so
amended or in such Prospectus as so supplemented.

 

 

 

-4-

 

 

(c)           Notify
the Holders of Registrable Securities as promptly as possible (i)
when a Prospectus or any Prospectus supplement or post-effective
amendment to the Registration Statement is filed; with respect to
the Registration Statement or any post-effective amendment, when
the same has become effective; (ii)of the issuance by the
Commission of any stop order suspending the effectiveness of the
Registration Statement covering any or all of the Registrable
Securities or the initiation or threatening of any Proceedings for
that purpose; (iii) of the receipt by the Company of any
notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Securities
for sale in any jurisdiction, or the initiation or threatening of
any Proceeding for such purpose; and (iv) of the occurrence of any
event that makes any statement made in the Registration Statement
or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or
that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the
Registration Statement or the Prospectus, as the case may be, it
will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary
to make the statements therein (in the case of the Prospectus, in
the light of the circumstances under which they were made) not
misleading.

 

                        
 (d)           Use
its commercially reasonable efforts to avoid the issuance of, or,
if issued, obtain the withdrawal of, as promptly as possible, (i)
any order suspending the effectiveness of the Registration
Statement or (ii) any suspension of the qualification (or exemption
from qualification) of any of the Registrable Securities for sale in any
jurisdiction.

 

(e)           If
requested by the Holders of a majority in interest of the
Registrable Securities, (i) promptly incorporate in a Prospectus
supplement or post-effective amendment to the Registration
Statement such information as the Company reasonably agrees should
be included therein and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment as soon as
practicable after the Company has received notification of the
matters to be incorporated in such Prospectus supplement or
post-effective amendment.

 

(f) If requested by any Holder, furnish
to such Holder, without charge, at least one conformed copy of each
Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or
deemed to be incorporated therein by reference, and all exhibits to
the extent requested by such Person (including those previously
furnished or incorporated by reference) promptly after the filing
of such documents with the Commission.

 

(g) Promptly deliver to each Holder,
without charge, as many copies of the Prospectus or Prospectuses
(including each form of prospectus) and each amendment or
supplement thereto as such Persons may reasonably request; and
subject to the provisions of Sections 3(m) and 3(n), the Company
hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection
with the offering and sale of the Registrable Securities covered by
such Prospectus and any amendment or supplement
thereto.

 

(h) Prior to any resale of Registrable
Securities, use its commercially reasonable efforts to register or
qualify or cooperate with the selling Holders in connection with
the registration or qualification (or exemption from such
registration or qualification) of such Registrable Securities for
offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Holder requests in
writing, to keep each such registration or qualification (or
exemption therefrom) effective during the Effectiveness Period and
to do any and all other acts or things necessary or advisable to
enable the disposition in such jurisdictions of the Registrable
Securities covered by a Registration Statement; provided, however, that the Company shall
not be required to qualify generally to do business in any
jurisdiction where it is not then so qualified or to take any
action that would subject it to general service of process in any
such jurisdiction where it is not then so subject or subject the
Company to any material tax in any such jurisdiction where it is
not then so subject.

 

                      
(i)           Cooperate
with the Holders to facilitate the timely preparation and delivery
of certificates representing Registrable Securities to be sold
pursuant to a Registration Statement, which certificates, to the
extent permitted by the Purchase Agreement and applicable federal
and state securities laws, shall be free of all restrictive
legends, and to enable such Registrable Securities to be in such
denominations and registered in such names of the  Holder
in connection with any sale of Registrable Securities.

 

 

 

-5-

 

 

(j)           Upon
the occurrence of any event contemplated by Section 3(c)(iv), as
promptly as possible, prepare a supplement or amendment, including
a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated
or deemed to be incorporated therein by reference, and file any
other required document so that, as thereafter delivered, neither
the Registration Statement nor such Prospectus will contain an
untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the
statements therein (in the case of the Prospectus, in the light of
the circumstances under which they were made) not
misleading.

 

(k)           Use
its commercially reasonable efforts to cause all Registrable
Securities relating to the Registration Statement, to continue to
be quoted or listed on a securities exchange, quotation system or
market, if any, on which similar securities issued by the Company
are then listed or traded as and when required pursuant to the
Purchase Agreement.

 

(l)           Comply
in all material respects with all applicable rules and regulations
of the Commission and make generally available to its security
holders all documents filed or required to be filed with the
Commission, including, but not limited, to, earning statements
satisfying the provisions of Section 11(a) of the Securities Act
and Rule 158 not later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such
period is a fiscal year) commencing on the first day of the first
fiscal quarter of the Company after the effective date of the
Registration Statement, which statement shall conform to the
requirements of Rule 158.

 

(m)           The
Company may require each selling Holder to furnish to the Company a
certified statement as to the number of shares of Common Stock
beneficially owned by such Holder and the natural persons thereof
that have voting and dispositive control over the Registrable
Securities. During any periods that the Company is unable to meet
its obligations hereunder with respect to the registration of the
Registrable Securities solely because any Holder fails to furnish
such information within five (5) Business Days of the
Company’s request, any liquidated damages that are accruing
at such time as to such Holder only shall be tolled and any Event
that may otherwise occur solely because of such delay shall be
suspended as to such Holder only, until such information is
delivered to the Company.

 

If the
Registration Statement refers to any Holder by name or otherwise as
the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name
or otherwise is not required by the Securities Act or any similar
federal statute then in force) the deletion of the reference to
such Holder in any amendment or supplement to the Registration
Statement filed or prepared subsequent to the time that such
reference ceases to be required.

 

Each
Holder covenants and agrees that it will not sell any Registrable
Securities under the Registration Statement until the Company has
electronically filed the Prospectus as then amended or supplemented
as contemplated in Section 3(e) and notice from the Company that
the Registration Statement and any post-effective amendments
thereto have become effective as contemplated by Section
3(c).

 

Each
Holder agrees by its acquisition of such Registrable Securities
that, upon receipt of a notice from the Company of the occurrence
of any event of the kind described in Section 3(c)(ii), 3(c)(iii),
or 3(c)(iv)or 3(n), such Holder will forthwith discontinue
disposition of such Registrable Securities under the Registration
Statement until such Holder’s receipt of the copies of the
supplemented Prospectus and/or amended Registration Statement
contemplated by Section 3(e), or until it is advised in writing
(the “Advice”) by the Company
that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental
filings that are incorporated or deemed to be incorporated by
reference in such Prospectus or Registration
Statement.

 

 

 

-6-

 

 

(n)           If
(i) there is material non-public information regarding the Company
which the Company’s Board of Directors (the
“Board”) determines not to
be in the Company’s best interest to disclose and which the
Company is not otherwise required to disclose, (ii) there is a
significant business opportunity (including, but not limited to,
the acquisition or disposition of assets (other than in the
ordinary course of business) or any merger, consolidation, tender
offer or other similar transaction) available to the Company which
the Board determines not to be in the Company’s best interest
to disclose, or (iii) the Company is required to file a
post-effective amendment to the Registration Statement to
incorporate the Company’s quarterly and annual reports and
audited financial statements on Forms 10-Q and 10-K, then the
Company may (x) postpone or suspend filing of a registration
statement for a period not to exceed forty-five (45) consecutive
days or (y) postpone or suspend effectiveness of a registration
statement for a period not to exceed forty-five (45) consecutive
days; provided that
the Company may not postpone or suspend effectiveness of a
registration statement under this Section 3(n) for more than ninety
(90) days in the aggregate during any three hundred sixty (360) day
period; provided,
however, that no
such postponement or suspension shall be permitted for consecutive
twenty (20) day periods arising out of the same set of facts,
circumstances or transactions.

 

4.           Registration
Expenses.

 

All
fees and expenses incident to the performance of or compliance with
this Agreement by the Company, except as and to the extent
specified in this Section 4, shall be borne by the Company whether
or not the Registration Statement is filed or becomes effective and
whether or not any Registrable Securities are sold pursuant to the
Registration Statement.  The fees and expenses referred
to in the foregoing sentence shall include, without limitation, (i)
all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made
with any  securities exchange or market on which
Registrable Securities are required hereunder to be listed, if any,
(B) with respect to filing fees required to be paid to the
Financial Industry Regulatory Authority, Inc. (including, without
limitation, pursuant to FINRA Rule 5110) and (C) in compliance with
state securities or Blue Sky laws (including, without limitation,
fees and disbursements of one counsel for the Holders up to a
maximum amount of $5,000 in connection with Blue Sky qualifications
of the Registrable Securities and determination of the eligibility
of the Registrable Securities for investment under the laws of such
jurisdictions as the Holders of a majority of Registrable
Securities may designate)), (ii) printing expenses (including,
without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing
of prospectuses is requested by the holders of a majority of the
Registrable Securities included in the Registration Statement),
(iii) messenger, telephone and delivery expenses, (iv) Securities
Act liability insurance, if the Company so desires such insurance,
and (v) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions
contemplated by this Agreement, including, without limitation, the
Company’s independent public accountants (including the
expenses of any comfort letters or costs associated with the
delivery by independent public accountants of a comfort letter or
comfort letters).  In addition, the Company shall be
responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting
duties), the expense of any annual audit, the fees and expenses
incurred in connection with the listing of the Registrable
Securities on any securities exchange if required
hereunder.  The Company shall not be responsible for any
discounts, commissions, transfer taxes or other similar fees
incurred by the Holders in connection with the sale of the
Registrable Securities.

 

 

 

-7-

 

 

5.           Indemnification.

 

(a)           Indemnification
by the Company.  The Company shall,
notwithstanding any termination of this Agreement, indemnify and
hold harmless each Holder, the officers, directors, managers,
partners, members, shareholders, agents, brokers, investment
advisors and employees of each of them, each Person who controls
any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors,
agents and employees of each such controlling Person, to the
fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including,
without limitation, costs of preparation and attorneys’ fees)
and expenses (collectively, “Losses”), as incurred,
arising out of or relating to any violation of securities laws or
untrue statement of a material fact contained in the Registration
Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus,
or arising out of or relating to any omission of a material fact
required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in the light of the circumstances under which
they were made) not misleading, except to the extent, but only to
the extent, that such untrue statements or omissions are based
solely upon information regarding such Holder or such other
Indemnified Party furnished in writing to the Company by such
Holder for use therein.  The Company shall notify the
Holders promptly of the institution, threat or assertion of any
Proceeding of which the Company is aware in connection with the
transactions contemplated by this Agreement.

 

(b)           Indemnification
by Holders.  Each Holder shall, severally and not
jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the
Company (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), and the directors, officers,
agents and employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as
incurred, arising out of or based upon any untrue statement of a
material fact contained in the Registration Statement, any
Prospectus, or any form of prospectus, or in any amendment or
supplement thereto, or arising  out of or based upon any
omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in the
light of the circumstances under which they were made) not
misleading, to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished
in writing by such Holder or other Indemnifying Party to the
Company specifically for inclusion in the Registration Statement or
such Prospectus.  Notwithstanding anything to the
contrary contained herein, each Holder shall be liable under this
Section 5(b) only for the lesser of (a) the actual damages incurred
or (b) that amount as does not exceed the gross proceeds to such
Holder as a result of the sale of his/her/its Registrable
Securities pursuant to such Registration Statement.

 

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

 

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

 

 

 

 

-8-

 

 

   (d)           Contribution.
If a claim for indemnification under Section 5(a) or 5(b) is due
but unavailable to an Indemnified Party because of a failure or
refusal of a governmental authority to enforce such indemnification
in accordance with its terms (by reason of public policy or
otherwise), then each Indemnifying Party, in lieu of indemnifying
such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such Losses, in
such proportion as is appropriate to reflect the relative benefits
received by the Indemnifying Party on the one hand and the
Indemnified Party on the other from the offering of the Note and
Warrants.  If, but only if, the allocation provided by
the foregoing sentence is not permitted by applicable law, the
allocation of contribution shall be made in such proportion as is
appropriate to reflect not only the relative benefits referred to
in the foregoing sentence but also the relative fault, as
applicable, of the Indemnifying Party and Indemnified Party in
connection with the actions, statements or omissions that resulted
in such Losses as well as any other relevant equitable
considerations.  The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any
untrue statement of a material fact or omission of a material fact,
has been taken or made by, or relates to information supplied by,
such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or
prevent such action, statement or omission.  The amount
paid or payable by a party as a result of any Losses shall be
deemed to include, subject to the limitations set forth in Section
5(c), any reasonable attorneys’ or other reasonable fees or
expenses incurred by such party in connection with any Proceeding
to the extent such party would have been indemnified for such fees
or expenses if the indemnification provided for in this Section was
available to such party in accordance with its terms.  In
no event shall any selling Holder be required to contribute an
amount under this Section 5(d) in excess of the gross proceeds
received by such Holder upon sale of such Holder’s
Registrable Securities pursuant to the Registration Statement
giving rise to such contribution obligation.

 

     The
parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not
take into account the equitable considerations referred to in the
immediately preceding paragraph.  No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any
Person who was not guilty of such fraudulent
misrepresentation.

 

     The
indemnity and contribution agreements contained in this Section are
in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties pursuant to applicable law and any
restrictions on indemnification under the Securities Act or
regulations promulgated thereunder.

 

6.           Filing
Obligations.

 

    The
Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant
to Section 13(a) or 15(d) of the Exchange Act.  As long
as any Holder owns Warrants or Registrable Securities, if the
Company is not required to file reports pursuant to Section 13(a)
or 15(d) of the Exchange Act, it will prepare and furnish to the
Holders and make publicly available in accordance with Rule 144(c)
promulgated under the Securities Act, annual and quarterly
financial statements, together with a discussion and analysis of
such financial statements in form and substance substantially
similar to those that would otherwise be required to be included in
reports required by Section 13(a) or 15(d) of the Exchange Act, as
well as any other information required thereby, in the time period
that such filings would have been required to have been made under
the Exchange Act.  The Company further covenants that it
will take such further action as any Holder may reasonably request,
all to the extent reasonably required from time to time to enable
such Person to sell the Note Shares and the Warrant Shares without
registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 promulgated under the Securities
Act, including providing any legal opinions relating to such sale
pursuant to Rule 144.  Upon the request of any Holder,
the Company shall deliver to such Holder a written certification of
a duly authorized officer as to whether it has complied with such
requirements.

 

 

 

-9-

 

 

7.           Miscellaneous.

 

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

 

(b)           No
Inconsistent Agreements.  The Company has not
entered into, and shall not enter into on or after the date of this
Agreement, any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this
Agreement or otherwise conflicts with the provisions
hereof.  The Company has not previously entered into any
agreement that is currently in effect granting any registration
rights with respect to any of its securities to any
Person.  Without limiting the generality of the
foregoing, without the written consent of the Holders of a majority
of the then outstanding Registrable Securities, the Company shall
not grant to any Person the right to request the Company to
register any securities of the Company under the Securities Act
unless the rights so granted are subject in all respects to the
prior rights in full of the Holders set forth herein, and are not
otherwise in conflict with the provisions of this
Agreement.

 

(c)           No
Piggyback on Registrations for Other
Securities.  Neither the Company nor any of its
security holders may include securities of the Company in the
Registration Statement, and the Company shall not after the date
hereof enter into any agreement providing such right to any of its
security holders, unless the right so granted is subject in all
respects to the prior rights in full of the Holders set forth
herein, and is not otherwise in conflict with the provisions of
this Agreement.

 

(d)           Piggy-Back
Registrations for Registrable Securities.  If at
any time when there is not an effective Registration Statement
covering the Note Shares and Warrant Shares, the Company shall
determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated
under the Securities Act) or their then equivalents relating to
equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable
in connection with stock option or other employee benefit plans,
the Company shall send to each Holder of Registrable Securities
written notice of such determination and, if within ten (10)
calendar days after receipt of such notice, or within such shorter
period of time as may be specified by the Company in such written
notice as may be necessary for the Company to comply with its
obligations with respect to the timing of the filing of such
registration statement, any such Holder shall so request in writing
(which request shall specify the Registrable Securities intended to
be disposed of by the such Holder), the Company will cause the
registration under the Securities Act of all Registrable Securities
which the Company has been so requested to register by the Holder,
to the extent requisite to permit the disposition of the
Registrable Securities so to be registered, provided that if at any
time after giving written notice of its intention to register any
securities and prior to the effective date of the registration
statement filed in connection with such registration, the Company
shall determine for any reason not to register or to delay
registration of such securities, the Company may, at its election,
give written notice of such determination to such Holder and,
thereupon, (i) in the case of a determination not to register,
shall be relieved of its obligation to register any Registrable
Securities in connection with such registration (but not from its
obligation to pay expenses in accordance with Section 4 hereof),
and (ii) in the case of a determination to delay registering, shall
be permitted to delay registering any Registrable Securities being
registered pursuant to this Section 7(d) for the same period as the
delay in registering such other securities. The Company shall
include in such registration statement all or any part of such
Registrable Securities such Holder requests to be registered;
provided,
however, that the
Company shall not be required to register any Registrable
Securities pursuant to this Section 7(d) that are eligible for sale
pursuant to Rule 144 of the Securities Act.  In the case
of an underwritten public offering, if the managing underwriter(s)
or underwriter(s) should reasonably object to the inclusion of the
Registrable Securities in such registration statement, then if the
Company after consultation with the managing underwriter should
reasonably determine that the inclusion of such Registrable
Securities would materially adversely affect the offering
contemplated in such registration statement, and based on such
determination recommends inclusion in such registration statement
of fewer or none of the Registrable Securities of the Holders, then
(x) the number of Registrable Securities of the Holders included in
such registration

 

 

-10-

 

 

statement
shall be reduced among such Holders based upon the number of
Registrable Securities requested to be included in the registration
in the order set forth in Section 2(b) hereof, if the Company after
consultation with the underwriter(s) recommends the inclusion of
fewer Registrable Securities, or (y) none of the Registrable
Securities of the Holders shall be included in such registration
statement, if the Company after consultation with the
underwriter(s) recommends the inclusion of none of such Registrable
Securities; provided, however, that if securities are
being offered for the account of other persons or entities as well
as the Company, such reduction shall not represent a greater
fraction of the number of Registrable Securities intended to be
offered by the Holders than the fraction of similar reductions
imposed on such other persons or entities (other than the
Company).  For purposes of this Section 7(d), Registrable
Securities shall include any shares actually issued to the
Purchasers pursuant to the Securities Escrow
Agreement.

 

(e)           Intentionally
Left Blank.

 

(f)           Failure
to File Registration Statement and Other
Events.  The Company and the Holders agree that
the Holders will suffer damages if the Registration Statement is
not filed on or prior to the Filing Date and not declared effective
by the Commission on or prior to the Effectiveness Date and
maintained in the manner contemplated herein during the
Effectiveness Period or if certain other events
occur.  The Company and the Holders further agree that it
would not be feasible to ascertain the extent of such damages with
precision.  Accordingly, if (A) the Registration
Statement is not filed on or prior to the Filing Date, or (B) the
Registration Statement is not declared effective by the Commission
on or prior to the Effectiveness Date, or (C) the Company fails to
file with the Commission a request for acceleration in accordance
with Rule 461 promulgated under the Securities Act within three (3)
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 (D) the Registration Statement is
filed with and declared effective by the Commission but thereafter
ceases to be effective as to all Registrable Securities at any time
prior to the expiration of the Effectiveness Period, without being
succeeded immediately by a subsequent Registration Statement filed
with and declared effective by the Commission in accordance with
Section 2(a) hereof, or (E) the Company has breached Section 3(n)
of this Agreement, or (F) trading in the Common Stock shall be
suspended or if the Common Stock is no longer quoted on or is
delisted from the OTCQB (or other principal exchange on which the
Common Stock is traded) for any reason for more than three (3)
consecutive Business Days or twelve (12) Business Days in the
aggregate for any twelve month period (any such failure or breach
being referred to as an “Event,” and for purposes
of clauses (A) and (B) the date on which such Event occurs, or for
purposes of clauses (C) and (F) the date on which such three (3)
Business Day period is exceeded, or for purposes of clause (D)
after more than fifteen (15) Business Days, being referred to as
“Event
Date”), then the Company shall pay to each Holder for
liquidated damages an amount of cash equal to 2% of the product of
(i) the number of Registrable Securities and (ii) the closing sale price or closing bid price as of
the trading
day immediately prior to the Event
Date, such payments to be made on the Event Date and every thirty (30) day anniversary
thereafter with a maximum penalty of 12% until the applicable Event
is cured; provided,
however, that in
the event the Commission does not permit all of the Registrable
Securities to be included in the Registration Statement because of
its application of Rule 415, liquidated damages payable pursuant to
this Section shall only be payable by the Company based on the
portion of the Holder’s initial investment in the Securities
that corresponds to the number of such Holder’s Registrable
Securities permitted to be registered by the Commission in such
Registration Statement pursuant to Rule 415.  For further
clarification, the parties understand that no liquidated damages
shall be payable pursuant to this Section with respect to any
Registrable Securities that the Company is not permitted to include
on such Registration Statement due to the Commission’s
application of Rule 415. In addition, no liquidated damages shall
be payable with respect to Registrable Securities that may be sold
pursuant to Rule 144.  Notwithstanding anything to the
contrary in this paragraph (e), if (a) any of the Events described
in clauses (A), (B), (C), (D) or (F) shall have occurred, (b) on or
prior to the applicable Event Date, the Company shall have
exercised its rights under Section 3(n) hereof and (c) the
postponement or suspension permitted pursuant to such Section 3(n)
shall remain effective as of such applicable Event Date, then the
applicable Event Date shall be deemed instead to occur on the
second Business Day following the termination of such postponement
or suspension.  Liquidated damages payable by the Company
pursuant to this Section 7(f) shall be payable on the Event Date
and the first (1st) Business Day of each thirty (30) day period
following the Event Date.  Notwithstanding anything to
the contrary contained herein, in no event shall any liquidated
damages be payable with respect to the Warrants or the Warrant
Shares.

 

 

 

-11-

 

 

(g)           Amendments
and Waivers.  The provisions of this Agreement,
including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and the Holders of a
majority of the then outstanding Registrable
Securities.

 

(h)           Notices.  Whenever
notice is required to be given under this Agreement, unless
otherwise provided herein, such notice shall be given in accordance
with Section 5.4 of the Purchase Agreement.

 

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

 

(j)           Assignment
of Registration Rights.  The rights of each Holder
hereunder, including the right to have the Company register for
resale Registrable Securities in accordance with the terms of this
Agreement, shall be automatically assignable by each Holder to any
Person who acquires all or a portion of the Warrants or the Registrable
Securities if: (i) the Holder agrees in writing with the transferee
or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such
assignment, (ii) the Company is, within a reasonable time after
such transfer or assignment, furnished with written notice of (a)
the name and address of such transferee or assignee, and (b) the
securities with respect to which such registration rights are being
transferred or assigned, (iii) following such transfer or
assignment the further disposition of such securities by the
transferee or assignees is restricted under the Securities Act and
applicable state securities laws unless such securities are
registered in a Registration Statement under this Agreement (in
which case the Company shall be obligated to amend such
Registration Statement to reflect such transfer or assignment) or
are otherwise exempt from registration, (iv) at or before the time
the Company receives the written notice contemplated by clause (ii)
of this Section, the transferee or assignee agrees in writing with
the Company to be bound by all of the provisions of this Agreement,
and (v) such transfer shall have been made in accordance with the
applicable requirements of the Purchase Agreement.  The
rights to assignment shall apply to the Holders (and to subsequent)
successors and assigns.

 

(k)           Counterparts.  This
Agreement may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original and, all
of which taken together shall constitute one and the same Agreement
and shall become effective when counterparts have been signed by
each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same
counterpart.  In the event that any signature is
delivered by facsimile transmission or other electronic method,
such signature shall create a valid binding obligation of the party
executing (or on whose behalf such signature is executed) the same
with the same force and effect as if such facsimile signature were
the original thereof.

 

(l)           Governing
Law; Jurisdiction.  All questions concerning the
construction, validity, enforcement and interpretation of the
Transaction Documents shall be governed by and construed and
enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof.
Each party agrees that all legal Proceedings concerning the
interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, partners, members,
employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the City of New York. Each party
hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, Borough
of Manhattan for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or
discussed herein (including with respect to the enforcement of any
of the Transaction Documents), and hereby irrevocably waives, and
agrees not to assert in any Action or Proceeding, any claim that it
is not personally subject to the jurisdiction of any such court,
that such Action or Proceeding is improper or is an inconvenient
venue for such Proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in
any such Action or 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

 

 

-12-

 

 

notices
to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by
law. If any party shall commence an Action or Proceeding to enforce
any provisions of the Transaction Documents, then, in addition to
the obligations of the Company elsewhere in this Agreement, the
prevailing party in such Action or Proceeding shall be reimbursed
by the non-prevailing party for its reasonable attorneys’
fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such Action or
Proceeding.

 

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

 

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

 

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

 

(p)           Shares
Held by the Company and its Affiliates. Whenever the consent
or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by
the Company or its Affiliates (other than any Holder or transferees
or successors or assigns thereof if such Holder is deemed to be an
Affiliate solely by reason of its holdings of such Registrable
Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required
percentage.

 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

 

-13-

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed by their respective authorized
persons as of the date first indicated above.

 

MEDITE
CANCER DIAGNOSTICS, INC.

 

 

 

By:
/s/ David E.
Patterson

Name: David
Patterson

Title:  Chief
Executive officer

 

 

 

 

 

[Signature
Page to Registration Rights Agreement]

 

 

 

-14-

 

 

 

PURCHASER:

 

  GPB
DEBT HOLDINGS II, LLC, as Collateral Agent

 

 

 

By: /s/ David
Gentile

     Name:
David Gentile

     Title:
Manager

 

 

 

-15-

 

 

 

PURCHASERS:

 

  LISA
FORTUNOFF

 

 

 

By:
______________________________

     Name:

     Title:

 

 

 

 

-16-

 

 

[Signature
Page to Registration Rights Agreement]

 

 

 

PURCHASER:

 

NEDLOG
INVESTMENTS LLC

 

 

 

By:
______________________________

     Name:
Benjamin Golden

     Title:

 

 

 

-17-

 

[Signature
Page to Registration Rights Agreement]

 

 

 

PURCHASER:

 

  KANTER
FAMILY FOUNDATION

 

 

 

By:
______________________________

     Name:
Joel Kanter

     Title:
President

 

 

-18-

 

[Signature
Page to Registration Rights Agreement]

 

 

 

PURCHASER:

 

   AUSTIN
LEWIS

 

______________________________

     

 

 

 

 

-19-

 

[Signature
Page to Registration Rights Agreement]

 

 

 

PURCHASER:

 

   RICKY
SOLOMON

 

______________________________

     

 

-20-

 

 

Exhibit A

Plan of Distribution

 

The
selling security holders and any of their pledgees, donees,
assignees and successors-in-interest may, from time to time, sell
any or all of their shares of common stock being offered under this
prospectus on any stock exchange, market or trading facility on
which shares of our common stock are traded or in private
transactions. These sales may be at fixed or negotiated prices. The
selling security holders may use any one or more of the following
methods when disposing of shares:

 

●

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

 

●

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

 

●

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

 

●

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

 

●

privately
negotiated transactions;

 

●

to
cover short sales made after the date that the registration
statement of which this prospectus is a part is declared effective
by the Commission;

 

●

broker-dealers
may agree with the selling security holders to sell a specified
number of such shares at a stipulated price per share;

 

●

a
combination of any of these methods of sale; and

 

●

any
other method permitted pursuant to applicable law.

 

The
shares may also be sold under Rule 144 under the Securities Act of
1933, as amended (“Securities Act”), if available,
rather than under this prospectus. The selling security holders
have the sole and absolute discretion not to accept any purchase
offer or make any sale of shares if they deem the purchase price to
be unsatisfactory at any particular time.

 

The
selling security holders may pledge their shares to their brokers
under the margin provisions of customer agreements. If a selling
security holder defaults on a margin loan, the broker may, from
time to time, offer and sell the pledged shares.

 

Broker-dealers
engaged by the selling security holders may arrange for other
broker-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the selling security holders (or, if
any broker-dealer acts as agent for the purchaser of shares, from
the purchaser) in amounts to be negotiated, which commissions as to
a particular broker or dealer may be in excess of customary
commissions to the extent permitted by applicable law.

 

If
sales of shares offered under this prospectus are made to
broker-dealers as principals, we would be required to file a
post-effective amendment to the registration statement of which
this prospectus is a part. In the post-effective amendment, we
would be required to disclose the names of any participating
broker-dealers and the compensation arrangements relating to such
sales.

 

 

-21-

 

 

The
selling security holders and any broker-dealers or agents that are
involved in selling the shares offered under this prospectus may be
deemed to be “underwriters” within the meaning of the
Securities Act in connection with these sales. Commissions received
by these broker-dealers or agents and any profit on the resale of
the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. Any
broker-dealers or agents that are deemed to be underwriters may not
sell shares offered under this prospectus unless and until we set
forth the names of the underwriters and the material details of
their underwriting arrangements in a supplement to this prospectus
or, if required, in a replacement prospectus included in a
post-effective amendment to the registration statement of which
this prospectus is a part.

 

The
selling security holders and any other persons participating in the
sale or distribution of the shares offered under this prospectus
will be subject to applicable provisions of the Exchange Act, and
the rules and regulations under that act, including Regulation M.
These provisions may restrict activities of, and limit the timing
of purchases and sales of any of the shares by, the selling
security holders or any other person. Furthermore, under Regulation
M, persons engaged in a distribution of securities are prohibited
from simultaneously engaging in market making and other activities
with respect to those securities for a specified period of time
prior to the commencement of such distributions, subject to
specified exceptions or exemptions. All of these limitations may
affect the marketability of the shares.

 

If
any of the shares of common stock offered for sale pursuant to this
prospectus are transferred other than pursuant to a sale under this
prospectus, then subsequent holders could not use this prospectus
until a post-effective amendment or prospectus supplement is filed,
naming such holders. We offer no assurance as to whether any of the
selling security holders will sell all or any portion of the shares
offered under this prospectus.

 

We have
agreed to pay all fees and expenses we incur incident to the
registration of the shares being offered under this prospectus.
However, each selling security holder and purchaser is responsible
for paying any discounts, commissions and similar selling expenses
they incur.

 

We and
the selling security holders have agreed to indemnify one another
against certain losses, damages and liabilities arising in
connection with this prospectus, including liabilities under the
Securities Act.

 

 

-22-

 

Exhibit B

Selling Stockholder Questionnaire

 

1.

Name.

 

(a) 

Full Legal Name of
Selling Stockholder:

 

	
 

	
 

 

(b) 

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

 

	
 

	
 

 

(c) 

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

 

	
 

	
 

 

2. 

Address
for Notices to Selling Stockholder:

 

	
 

	
 

	
 

	

Telephone: 

	

Fax: 

	

Contact
Person: 

	

E-mail
address of Contact
Person:________________________________________________

 

3. 

Beneficial
Ownership of Registrable Securities:

 

(a)
Type
and Number of Registrable Securities beneficially
owned:

 

	

___________________________________________________________________________

	

___________________________________________________________________________ 

	

___________________________________________________________________________ 

 

(b)
Number
of shares of Common Stock to be registered pursuant to this Notice
for resale:

 

	

___________________________________________________________________________

	

___________________________________________________________________________ 

	

___________________________________________________________________________ 

 

4. 

Broker-Dealer
Status:

 

(a)
Are
you a broker-dealer?

 

Yes
☐ No
☐

 

(b) If “yes” to Section 4(a),
did you receive your Registrable Securities as compensation for
investment banking services to the Company?

 

Yes
☐ No
☐

 

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

 

 

-23-

 

 

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

 

Yes
☐ No
☐

 

Note:
If
yes, provide a narrative explanation below:

 

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

 

Yes
☐ No
☐

 

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

 

5. 

Beneficial
Ownership of Other Securities of the Company Owned by the Selling
Stockholder.

 

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

 

Type
and amount of other securities beneficially owned:

 

______________________________________________________________________________

 

______________________________________________________________________________

 

6. 

Relationships
with the Company:

 

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

 

State
any exceptions here:

 

______________________________________________________________________________

 

______________________________________________________________________________

 

7.            

Plan
of Distribution:

 

The undersigned has reviewed the form of Plan of Distribution
attached as Exhibit A to the Agreement, and hereby confirms that,
except as set forth below, the information contained therein
regarding the undersigned and its plan of distribution is correct
and complete.

 

State
any exceptions here:

 

______________________________________________________________________________

 

______________________________________________________________________________

 

***********

 

 

-24-

 

 

 The
undersigned agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein that may
occur subsequent to the date hereof and prior to the effective date
of any applicable Resale Registration Statement. All notices
hereunder shall be made in writing, by hand delivery, confirmed or
facsimile transmission, first-class mail or air courier
guaranteeing overnight delivery at the address set forth below. In
the absence of any such notification, the Company shall be entitled
to continue to rely on the accuracy of the information in this
Notice and Questionnaire.

 

By
signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items (1) through
(7) above and the inclusion of such information in the Resale
Registration Statement and the Prospectus. The undersigned
understands that such information will be relied upon by the
Company in connection with the preparation or amendment of any such
Registration Statement and the Prospectus.

 

By
signing below, the undersigned acknowledges that it understands its
obligation to comply, and agrees that it will comply, with the
provisions of the Exchange Act and the rules and regulations
thereunder, particularly Regulation M in connection with any
offering of Registrable Securities pursuant to the Resale
Registration Statement. The undersigned also acknowledges that it
understands that the answers to this Questionnaire are furnished
for use in connection with Registration Statements filed pursuant
to the Agreement and any amendments or supplements thereto filed
with the Commission pursuant to the Securities Act.

 

 

The
undersigned hereby acknowledges and is advised of the following
Interpretation A.65 of the July 1997 SEC Manual of Publicly
Available Telephone Interpretations regarding short
selling:

 

“An Issuer filed a Form S-3 registration statement for a
secondary offering of common stock which is not yet effective. One
of the selling stockholders wanted to do a short sale of common
stock “against the box” and cover the short sale with
registered shares after the effective date. The issuer was advised
that the short sale could not be made before the registration
statement become effective, because the shares underlying the short
sale are deemed to be sold at the time such sale is made. There
would, therefore, be a violation of Section 5 if the shares were
effectively sold prior to the effective date.”

 

By
returning this Questionnaire, the undersigned will be deemed to be
aware of the foregoing interpretation.

 

I
confirm that, to the best of my knowledge and belief, the foregoing
statements (including without limitation the answers to this
Questionnaire) are correct.

 

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

 

	

Dated:_________________________

	
 

	

Beneficial
Owner: _______________

	
 

	
 

	
 

	
 

	
 

	

By:__________________________

	
 

	
 

	

Name: 

	
 

	
 

	

Title:  

 

 

 

 

-25-

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