Document:

Unassociated Document

     

    Exhibit
4.3

     

    

     

    THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON ITS

     

    EXERCISE
ARE SUBJECT TO THE RESTRICTIONS ON

    TRANSFER SET FORTH IN
SECTION 5 OF THIS WARRANT

     

     

     

    Warrant
No.
_________                                                                                              Number
of Shares:
____________

                                                                                                                        
(subject
to adjustment)

                                                                   Date
of Issuance: __________________, 2008

     

    
      

    

     

    VeruTEK Technologies,
Inc.

     

     

    Common Stock Purchase
Warrant (Void after __________, 2013)

     

    
      

       

    

    VeruTEK
Technologies, Inc., a Nevada corporation (the "Company"), for value received,
hereby certifies that ____________________, or its permitted registered assigns
(the "Registered Holder"), is entitled, subject to the terms and conditions set
forth below, to purchase from the Company, at any time or from time to time on
or after the date of issuance and on or before 5:00 p.m. (Eastern Time) on
_____________, 2013 the number of shares of common stock, $.001 par value per
share, of the Company ("Common Stock"), set forth above (subject to adjustment
as set forth herein) at a purchase price of $1.30 per share.  The
shares purchasable upon exercise of this Warrant, and the purchase price per
share therefor, each as adjusted from
time to time pursuant to the provisions of this Warrant, are hereinafter
referred to as the "Warrant Shares" and the "Purchase Price,"
respectively.

     

    1.Exercise.

     

    (a) Method of
Exercise.  The Registered Holder may, at its option, elect to
exercise this Warrant, in whole or in part (but not for less than 5,000 Warrant
Shares at any time) and at any time or from time to time, by surrendering this
Warrant, with the purchase form appended hereto as Exhibit I duly
executed by or on behalf of the Registered Holder, at the principal office of
the Company, or at such other office or agency as the Company may designate, as
follows:

     

    

    
      
         

      

      
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    (i) Exercise for
Cash.  Payment in full, in lawful money of the United States,
of the Purchase Price payable in respect of the number of Warrant Shares
purchased upon such exercise.

     

    (ii) Cashless
Exercise.  This Warrant may also be exercised by means of a
“cashless exercise” in which the Holder shall be entitled to receive a
certificate for the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

     

    (A) = the
VWAP (as defined below) on the Trading Day immediately preceding the date of
such election;

     

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

     

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

     

    “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 a trading market, 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 for trading as reported by Bloomberg Financial L.P. (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 then listed or quoted on the OTC
Bulletin Board, the daily volume weighted average price of the Common Stock for
such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if the
Common Stock is not then quoted for trading on the OTC Bulletin Board and if
prices for the Common Stock are then reported in the “Pink Sheets” published by
Pink Sheets, LLC (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent 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 determined by an independent appraiser selected in good
faith by the Holder and reasonably acceptable to the Company.

     

    (b) Exercise
Date.  Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the day on which
this Warrant shall have been surrendered to the Company as provided in
subsection 1(a) (the "Exercise Date").  At such time, certificates for
Warrant Shares shall be issuable in the name of the Registered Holder upon such
exercise as provided in subsection 1(c) below and such Registered Holder shall
be deemed to have become the holder of record of the Warrant Shares represented
by such certificates.

     

    (c) Issuance of
Certificates.  As soon as practicable after the exercise of
this Warrant in whole or in part, and in any event within 20 business days
thereafter, the Company, at its expense, will cause to be issued in the name of,
and delivered to, the Registered Holder, or as the Registered Holder (upon
payment by the Registered Holder of any applicable transfer taxes) may direct in
connection with the transfer of this Warrant in accordance with the provisions
of Section 5 hereof:

     

    

    (i) a
certificate or certificates for the number of whole Warrant Shares to which the
Registered Holder shall be entitled upon such exercise plus, in lieu of any
fractional share to which the Registered Holder would otherwise be entitled,
cash in an amount determined pursuant to Section 3 hereof; and

     

    
      
         

      

      
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    (ii) in case
such exercise is in part only, a new warrant or warrants (dated the date hereof)
of like tenor, calling in the aggregate on the face or faces thereof for the
number of Warrant Shares equal (without giving effect to any adjustment therein)
to the number of such shares called for on the face of this Warrant minus the
number of Warrant Shares for which this Warrant was so exercised.

     

    2. Adjustments.

     

    (a) Adjustment for Stock
Splits and
Combinations.  If the Company shall at any time or from time to
time after the date on which this Warrant was first issued (the "Original Issue
Date") effect a subdivision of the outstanding Common Stock, the Purchase Price
then in effect immediately before that subdivision shall be proportionately
decreased.  If the Company shall at any time or from time to time
after the Original Issue Date combine the outstanding shares of Common Stock,
the Purchase Price then in effect immediately before the combination shall be
proportionately increased.  Any adjustment under this paragraph shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

     

    (b) Adjustment for Certain
Dividends and Distributions.  In the event the Company at any
time or from time to time after the Original Issue Date shall make or issue, or
fix a record date for the determination of holders of Common Stock entitled to
receive, a dividend or other distribution payable in additional shares of Common
Stock, then and in each such event the Purchase Price then in effect immediately
before such event shall be decreased as of the time of such issuance or, in the
event such a record date shall have been fixed, as of the close of business on
such record date, by multiplying the Purchase Price then in effect by a
fraction:

     

    (1)           the
numerator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date, and

     

    (2)           the
denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution;

     

    provided, however, that if such
record date shall have been fixed and such dividend is not fully paid or if such
distribution is not fully made on the date fixed therefor, the Purchase Price
shall be recomputed accordingly as of the close of business on such record date
and thereafter the Purchase Price shall be adjusted pursuant to this paragraph
as of the time
of actual payment of such dividends or distributions.

     

    (c)            Adjustment in Number of
Warrant Shares.  When any adjustment is required to be made in
the Purchase Price pursuant to subsections 2(a) or 2(b), the number of Warrant
Shares purchasable upon the exercise of this Warrant shall be changed to the
number determined by dividing (i) an amount equal to the number of shares
issuable upon the exercise of this Warrant immediately prior to such adjustment,
multiplied by the Purchase Price in effect immediately prior to such adjustment,
by (ii) the Purchase Price in effect immediately after such
adjustment.

     

    
      
         

      

      
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    (d)            Adjustment for
Reorganization.  If there shall occur any reorganization,
recapitalization, reclassification, consolidation or merger involving the
Company in which the Common Stock is converted into or exchanged for securities,
cash or other property (other than a transaction covered by subsections 2(a) or
2(b)) (collectively, a "Reorganization"), then, following such Reorganization,
the Registered Holder shall receive upon exercise hereof the kind and amount of
securities, cash or other property which the Registered Holder would have been
entitled to receive pursuant to such Reorganization if such exercise had taken
place immediately prior to such Reorganization.  In any such case,
appropriate adjustment (as determined in good faith by the Board of Directors of
the Company) shall be made in the application of the provisions set forth herein
with respect to the rights and interests thereafter of the Registered Holder, to
the end that the provisions set forth in this Section 2 (including provisions
with respect to changes in and other adjustments of the Purchase Price) shall
thereafter be applicable, as nearly as reasonably may be, in relation to any
securities, cash or other property thereafter deliverable upon the exercise of
this Warrant.

     

    (e) Certificate as to
Adjustments.  Upon the occurrence of each adjustment or
readjustment of the Purchase Price pursuant to this Section 2, the Company at
its expense shall, as promptly as reasonably practicable thereafter, compute
such adjustment or readjustment in accordance with the terms hereof and furnish
to the Registered Holder a certificate setting forth such adjustment or
readjustment (including the kind and amount of securities, cash or other
property for which this Warrant shall be exercisable and the Purchase Price) and
showing in detail the facts upon which such adjustment or readjustment is
based.  The Company shall, as promptly as reasonably practicable after
the reasonable written request at any time of the Registered Holder, furnish or
cause to be furnished to the Registered Holder a certificate setting forth (i)
the Purchase Price then in effect and (ii) the number of shares of Common Stock
and the amount, if any, of other securities, cash or property which then would
be received upon the exercise of this Warrant.

     

    3. Fractional
Shares.  The Company shall not be required upon the exercise of
this Warrant to issue any fractional shares, but shall pay the value thereof (as
determined in good faith by the Board of Directors of the Company) to the
Registered Holder in cash.

     

    4. Investment
Representations.  By its acceptance hereof (and upon its
exercise hereof), the Registered Holder shall be deemed to represent and warrant
to the Company as follows:

     

    (a) Investment.  It
is acquiring the Warrant, and (if and when it exercises this Warrant) it will
acquire the Warrant Shares, for its own account for investment and not with a
view to, or for sale in connection with, any distribution thereof, nor with any
present intention of distributing or selling the same; and the Registered Holder
has no present or contemplated agreement, undertaking, arrangement, obligation,
indebtedness or commitment providing for the disposition thereof.

     

    (b) Accredited
Investor.  The Registered Holder is an "accredited investor" as
defined in Rule 501(a) under the Securities Act of 1933, as amended (the
"Act").

     

    
      
         

      

      
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    (c)             Experience; Investment
Risk.  The Registered Holder has made such inquiry concerning
the Company and its business and personnel as it has deemed appropriate; and the
Registered Holder has sufficient knowledge and experience in finance and
business, including without limitation, with regard to investment in non-listed
and non-registered securities, that it is capable of evaluating the risks and
merits of its investment in the Company, has evaluated the merits and risks of
such an investment, and recognizes the highly speculative nature of this
investment.  The Registered Holder recognizes that the exercise of the
Warrants and the purchase of Warrant Shares involves a high degree of risk in
that (i) the Company will need additional capital but has no assurance of
additional necessary capital; (ii) an investment in the Company is highly
speculative and only investors who can afford the loss of their entire
investment should consider investing in the Company; (iii) an investor may
not be able to liquidate his or her investment; (iv) transferability of the
Warrant Shares is extremely limited; (v) an investor could sustain the loss
of his or her entire investment; and (vi) the Company is and will be
subject to numerous other risks and uncertainties, including without limitation,
significant and material risks relating to the Company’s business, and the
industries and markets in which the Company will compete and other matters
described in the Company’s reports filed with the United States Securities and
Exchange Commission.

     

    5.Transfers,
etc.

     

    (a)             This
Warrant and the Warrant Shares shall not be sold or transferred unless either
(i) they first shall have been registered under the Act, or (ii) the Company
first shall have been furnished with an opinion of legal counsel, reasonably
satisfactory to the Company, in all respects, to the effect that such sale or
transfer is exempt from the registration requirements of the
Act.  Notwithstanding the foregoing, no registration or opinion of
counsel shall be required for a transfer (without consideration and not in
satisfaction of any existing or contemplated legal obligation) by a Registered
Holder which is an entity to a wholly owned subsidiary of such entity, by a
Registered Holder which is a partnership to a partner of such partnership or to
the estate of any such partner, or by a Registered Holder which is a limited
liability company to a member of such limited liability company or to the estate
of any such member.  As a condition to any transfer of this Warrant,
the transferee of this Warrant shall agree in writing to be subject to the terms
of this Warrant.

     

    (b) Each
certificate representing Warrant Shares shall bear a legend substantially in the
following form:

     

    "The
shares represented by this certificate have not been registered under the
Securities Act of 1933, as amended.  The shares have been acquired for
investment and may not be offered, sold or otherwise transferred in the absence
of an effective registration statement with respect to the shares or an
exemption from the registration requirements of said Act that is then applicable
to the shares, as to which a prior opinion of counsel may be required by the
issuer or the transfer agent."

     

    By its acceptance hereof,
the Registered Holder is deemed to agree and acknowledge that the Company
is under no obligation to register the Warrant Shares under the Act or any other
applicable securities laws

     

    (c) The
Company will maintain a register containing the name and address of the
Registered Holder of this Warrant.  The Registered Holder may change
its address as shown on the warrant register by written notice to the Company
requesting such change.

     

    
      
         

      

      
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    (d)            Subject
to the provisions of Section 5 hereof, this Warrant and all rights hereunder are
transferable, in whole or in part (but not for less than 5,000 Warrant Shares at
any time to any single transferee), upon surrender of this Warrant with a
properly executed assignment (in the form of Exhibit II hereto) at
the principal office of the Company (or, if another office or agency has been
designated by the Company for such purpose, then at such other office or
agency).

     

    6. No
Impairment.  The Company will not, by amendment of its charter
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 action as may be reasonably necessary or
appropriate in order to protect the rights of the Registered Holder against
impairment.

     

    7. Notices of Record Date,
etc.   In the event:

     

    (a) the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time deliverable upon the exercise of this Warrant) for the
purpose of entitling or enabling them to receive any dividend or other
distribution, or to receive any right to subscribe for or purchase any shares of
stock of any class or any other securities, or to receive any other right;
or

     

    (b) of any
capital reorganization of the Company, any reclassification of the Common Stock
of the Company, any consolidation or merger of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the
surviving entity and its Common Stock is not converted into or exchanged for any
other securities or property), or any transfer of all or substantially all of
the assets of the Company; or

     

    (c)           of
the voluntary or involuntary dissolution, liquidation or winding-up of the
Company,

     

    then, and
in each such case, the Company will send or cause to be sent to the Registered
Holder a notice specifying, as the case may be, (i) the record date for such
dividend, distribution or right, and the amount and character of such dividend,
distribution or
right, or (ii) the effective date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up is to take place, and the time, if any is to be fixed, as of which
the holders of record of Common Stock (or such other stock or securities at the
time deliverable upon the exercise of this Warrant) shall be entitled to
exchange their shares of Common Stock (or such other stock or
securities) for securities or
other property deliverable upon such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or
winding-up.  Such notice shall be sent at least 10 days prior to the
record date or effective date for the event specified in such
notice.

     

    8. Reservation of
Stock.  The Company will at all times reserve and keep
available, solely for issuance and delivery upon the exercise of this Warrant,
such number of Warrant Shares and other securities, cash and/or property, as
from time to time shall be issuable upon the exercise of this
Warrant.

     

    
      
         

      

      
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    9. Exchange or Replacement of
Warrants.

     

    (a) Upon the
surrender by the Registered Holder, properly endorsed, to the Company at the
principal office of the Company of this Warrant, the Company will, subject to
the provisions of Section 5 hereof, issue and deliver to or upon the order of
the Registered Holder, at the Company's expense, a new Warrant or Warrants of
like tenor, in the name of the Registered Holder or as the Registered Holder
(upon payment by the Registered Holder of any applicable transfer taxes) may
direct in connection with the transfer of this Warrant in accordance with the
provisions of Section 5 hereof, calling in the aggregate on the face or
faces thereof for the number of shares of Common Stock (or other securities,
cash and/or property) then issuable upon exercise of this Warrant.

     

    (b) Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and (in the case of loss, theft or
destruction) upon delivery of an indemnity agreement acceptable to the Company
(with surety if reasonably required) in an amount reasonably satisfactory to the
Company, or (in the case of mutilation) upon surrender and cancellation of this
Warrant, the Company will issue, in lieu thereof, a new Warrant of like
tenor.

     

    10.            Agreement in Connection with
Public Offering.  By its acceptance hereof, the Registered
Holder is deemed to agree, in connection with any public offering of the
Company's securities pursuant to a registration statement under the Act, (i) not
to sell, make short sale of, loan, grant any options for the purchase of, or
otherwise dispose of any shares of Common
Stock held by the Registered Holder (other than any shares included in
the offering) without the prior written consent of the Company or the
underwriters managing such initial underwritten public offering of the Company's
securities for a period of 214 days from the effective date of such registration
statement, and (ii) to execute any agreement reflecting clause (i) above as may
be requested by the Company or the managing underwriters at the time of such
offering.

     

    11.            Notices.  All
notices and other communications from the Company to the Registered Holder in
connection herewith shall be mailed by certified or registered mail, postage
prepaid, or sent via a reputable nationwide overnight courier service
guaranteeing next business day delivery, to the address last furnished to the
Company in writing by the Registered Holder in accordance with this
Section 11.  All notices and other communications from the
Registered Holder to the Company in connection herewith shall be mailed by
certified or registered mail, postage prepaid, or sent via a reputable
nationwide overnight courier service guaranteeing next business day delivery, to
the Company at its principal office set forth below.  If the Company
should at any time change the location of its principal office to a place other
than as set forth below, it shall give prompt written notice to the Registered
Holder and thereafter all references in this Warrant to the location of its
principal office at the particular time shall be as so specified in such
notice.  All such notices and communications shall be deemed delivered
(i) two business days after being sent by certified or
registered mail, return receipt requested, postage prepaid, or (ii) one
business day after being sent via a reputable nationwide overnight courier
service guaranteeing next business day delivery.

     

    
      
         

      

      
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    12. No Rights as
Stockholder.  Until the exercise of this Warrant, the
Registered Holder  agrees, by its acceptance hereof, that it shall not
have or exercise any rights by virtue hereof as a stockholder of the
Company.  Notwithstanding the foregoing, in the event (i) the Company
effects a split of the Common Stock by means of a stock dividend and the
Purchase Price of and the number of Warrant Shares are adjusted as of the date
of the distribution of the dividend (rather than as of the record date for such
dividend), and (ii) the Registered Holder exercises this Warrant between the
record date and the distribution date for such stock dividend, the Registered
Holder shall be entitled to receive, on the distribution date, the stock
dividend with respect to the shares of Common Stock acquired upon such exercise,
notwithstanding the fact that such shares were not outstanding as of the close
of business on the record date for such stock dividend.

     

    13. Amendment or
Waiver.  Any term of this Warrant may be amended or waived only
by an instrument in writing signed by the party against which enforcement of the
change or waiver is sought.  No waivers of any term, condition or
provision of this Warrant, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing waiver of any such term, condition or
provision.

     

    14. Section
Headings.  The section headings in this Warrant are for the
convenience of the parties and in no way alter, modify, amend, limit or restrict
the contractual obligations of the parties.

     

    15. Governing
Law.  This Warrant will be governed by and construed in
accordance with the internal laws of the State of Nevada (without reference to
the conflicts of law provisions thereof).

     

    16. Interpretation.  As
the context requires, all terms used herein in the singular shall extend to and
include the plural, all terms used in the plural shall extend to and include the
singular, and all terms used in either gender or the neuter shall extend to the
other gender or be neutral.  All pronouns contained herein, and any
variations thereof, shall be deemed to refer to the masculine, feminine or
neutral, singular or plural, as the identity of the parties hereto may
require.

     

    17. Facsimile  This
Warrant may be executed by facsimile signature.

    

    
      
         

      

      
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    EXECUTED
as of the Date of Issuance indicated above.

     

     

    
      
        	 	VeruTEK
      Technologies, Inc.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

    

     

     

    
      
         

      

      
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    PURCHASE
FORM

     

    

     

    To:_________________                               Dated:_________________                                                                                                         

    
 

    (1) The
undersigned, pursuant to the provisions set forth in the attached Warrant (No.
_____), hereby elects to purchase __________ shares of the Common Stock of
VeruTEK Technologies, Inc., a Nevada corporation, covered by such Warrant, and
tenders herewith payment of the exercise price in full, as applicable, 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

     

    [ ] the
cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 1(a)(ii), to exercise this Warrant with
respect to the maximum number of Warrant Shares purchasable pursuant to the
cashless exercise procedure set forth in subsection 1(a)(ii).

     

     

    

     

    Signature: :_________________                                                   

     

    Address::
_________________ 

    

    

    
      
         

      

      
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    EXHIBIT
II

     

    ASSIGNMENT
FORM

     

    FOR VALUE
RECEIVED, _______________________________________________, the undersigned
assignor, hereby sells, assigns and transfers all of the rights of
the undersigned assignor under the attached Warrant (No. ______) with respect to
the number of shares of Common Stock of VeruTEK Technologies, Inc., a Nevada
corporation (the “Company”), covered thereby set forth below, unto:

     

    Name of
Assignee::_________________                                                                                      

     

    Address
:_________________                                                                                           

     

    No. of Shares
:_________________ 

    __________

    Attached
hereto is an opinion of counsel that the assignment does not violate or is
exempt from, any federal and state securities laws.   The Company
may, in its sole discretion, decide whether such opinion is satisfactory, and
Assignee and Assignor agree to any reasonable delay in transfer caused by such
evaluation.  The undersigned assignee represents that this Warrant and
the Warrant Shares to be issued upon exercise hereof are being acquired by such
assignee for investment and that such assignee will not offer, sell or otherwise
dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof,
except under circumstances which will not result in a violation of the
Securities Act of 1933, as amended, or any applicable state securities
laws.  Further, the undersigned assignee acknowledges that it agrees
to be subject to all of the terms of the Warrant as a “Registered Holder” and
that upon exercise of the Warrant, such assignee shall, if requested by the
Company, confirm in writing, in a form satisfactory to the Company, that the
Warrant Shares purchased are being acquired for investment and not with a view
toward distribution or resale in violation of applicable securities
laws.

    

    ASSIGNEE:                                                                                     ASSIGNOR:

    

    Dated::_________________                                      Dated: :_________________                                                       

    Signature: :_________________                              
Signature: :_________________                                                       

    Signature
Guaranteed:
:_________________         
Signature Guaranteed: :_________________ 

    

    By: :_________________                                            By:
:_________________            

    
      	 
      

    

    The
signatures should be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership in
an approved signature guarantee medallion program) pursuant to Rule 17Ad-15
under the Securities Exchange Act of 1934.

     

     

     

     

    11Unassociated Document

    Exhibit
4.4

     

    REGISTRATION
RIGHTS AGREEMENT

     

    This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
dated as of _______, 2008, is by and between VeruTEK Technologies, Inc., a
Nevada corporation (the “Company”),
and each of the entities whose names appear on the signature pages
hereof.  Such entities are each referred to herein as “Subscriber”
and, collectively, as the “Subscribers.”

     

    WHEREAS:

     

    A.           The
Company has agreed, on the terms and subject to the conditions set forth in the
Subscription Agreements, dated various dates on and after April 18, 2008 (the
“Subscription Agreements”), to issue and sell to each Subscriber named therein
Units (the “Units”) each consisting of two (2) shares of common stock of
the Company, par value $.001 per share (the “Common Stock”), and a warrant to
purchase one (1) share of Common Stock (a “Warrant”) at an exercise price of
$1.30 per share.  The shares of Common Stock issuable as part of the
Units to be issued pursuant to the Subscription Agreements are referred to
herein as the “Unit Shares” and the warrants issuable as part of the Units to be
issued pursuant to the Subscription Agreements are referred to herein as the
“Warrants.”

     

    B.           The
Warrants are exercisable, subject to the terms and conditions specified therein
and in the Subscription Agreement, into shares of Common Stock (the “Warrant
Shares”).

     

    C.           In
order to induce each Subscriber to enter into a Subscription Agreement, the
Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended (the “Securities
Act”), and under applicable state securities laws.

     

    NOW,
THEREFORE, in consideration of each Subscriber entering into a Subscription
Agreement, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as
follows:

     

    
      	
              1.  

            	
              DEFINITIONS.

            

    

     

    For
purposes of this Agreement, the following terms shall have the meanings
specified:

     

    “Business
Day” means any day other than a Saturday, a Sunday or a day on which the
Commission is closed or on which banks in the City of New York are authorized by
law to be closed.

     

    “Commission”
means the Securities and Exchange Commission.

     

    “Effective
Date” means the date on which the Registration Statement is declared
effective by the Commission.

     

    “Filing
Deadline” means the date that is the one hundred and fiftieth (150th)
calendar day following the Closing Date.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    “Holder”
means any person owning or having the right to acquire, through exercise of the
Warrants or otherwise, Registrable Securities, including initially each
Subscriber and thereafter any permitted assignee thereof.

     

    “Registrable
Securities” means the Unit Shares, the Warrant Shares, and any other
shares of Common Stock issuable pursuant to the terms of the Warrants, and any
shares of capital stock issued or issuable from time to time (with any
adjustments) in replacement of, in exchange for or otherwise in respect of the
Warrant Shares.

     

    “Registration
Deadline” means the earliest of the following:  (i) the one
hundred eightieth (180th) calendar day following the Closing Date, and (ii) the
tenth (10th) Business Day after the Company learns that no review of the
Registration Statement will be made by the staff of the Commission or that the
staff of the Commission has no further comments on the Registration
Statement.

     

    “Registration
Statement” means a registration statement or statements of the Company
prepared in compliance with the Securities Act and covering the Registrable
Securities.

     

    Capitalized
terms used herein and not otherwise defined shall have the respective meanings
specified in the Subscription Agreements.

     

    
      	
              2.  

            	
              REGISTRATION

            

    

     

    (a) Filing of Registration
Statement.  On or before the Filing Deadline, the Company shall
prepare and file with the Commission a Registration Statement covering the
resale of a number of shares of the Registrable Securities.  Such
Registration Statement shall include the Plan of Distribution attached hereto as
Exhibit A.  Such Registration Statement shall also state, to the
extent permitted by Rule 416 under the Securities Act (“Rule
416”), that it also covers such indeterminate number of additional shares
of Common Stock as may become issuable upon the exercise of the Warrants in
order to prevent dilution resulting from stock splits, stock dividends or
similar events.

     

    (b) Effectiveness.  The
Company shall use reasonable efforts to cause the Registration Statement to
become effective as soon as practicable following the filing thereof, but in no
event later than the Registration Deadline.  The Company shall respond
promptly to any and all comments made by the staff of the Commission on with
respect to a Registration Statement, and shall submit to the Commission, within
five (5) Business Days after the Company learns that no review of such
Registration Statement will be made by the staff of the Commission or that the
staff of the Commission has no further comments on such Registration Statement,
as the case may be, a request for acceleration of the effectiveness of such
Registration Statement to a time and date not later than two (2) Business Days
after the submission of such request.  The Company will maintain the
effectiveness of each Registration Statement filed pursuant to this Agreement
until the earliest to occur of (i) the date on which all of the Registrable
Securities eligible for resale thereunder have been publicly sold pursuant to
either the Registration Statement or Rule 144 under the Securities Act (“Rule
144”), (ii) the date on which all of the Registrable Securities remaining
to be sold under such Registration Statement (in the reasonable opinion of
counsel to the Company) may be immediately sold to the public under Rule 144
under the Securities Act (“Rule 144”)
or any successor provision and (iii) the date that is the second (2nd)
anniversary of the Effective Date (the period beginning on the Closing Date and
ending on the earliest to occur of (i), (ii) or (iii) above being referred to
herein as the “Registration
Period”).

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c) Registration
Default.  If (i) the Registration Statement is not filed on or
before the Filing Deadline or declared effective by the Commission on or before
the Registration Deadline, (ii) after a Registration Statement has been declared
effective by the Commission, sales of Registrable Securities (other than such
Registrable Securities as are then freely saleable pursuant to Rule 144) cannot
be made by a Holder under a Registration Statement for any reason not within the
exclusive control of such Holder (except during the period that the Company is
updating a Registration Statement due to information required to be provide
regarding the Company’s annual financial information), or (iii) an amendment or
supplement to a Registration Statement, or a new registration statement,
required to be filed pursuant to the terms of Section 3(j) below, is not filed
on or before the date required by such section (each of the foregoing clauses
(i), (ii) and (iii) being referred to herein as a “Registration
Default”), the Company shall make cash payments to each Holder who
provides to the Company reasonable written evidence of its ownership of
Registrable Securities at the time of each such Registration Default (including
the number of Registrable Securities held by such Holder as of each such date)
equal to such Holder’s pro rata share (based on the aggregate number of
Registrable Securities then held by or issuable to such Holder as of the
occurrence of the Registration Deadline) equal to 3⁄4 of one percent (0.75%) of
the aggregate Purchase Price paid by such Holder for such Unit Shares for each
thirty (30) day period (but not pro rated for partial periods) in which a
Registration Default exists, but up to a maximum payment of 5% of the aggregate
Purchase Price paid by such Holder for such Unit Shares for each thirty (30) day
period (but not pro rated for partial periods).  Notwithstanding any
provision of this Agreement to the contrary, the Company shall be permitted to
suspend the Registration Statement for one or more periods (provided that the
aggregate length of such suspension shall not exceed ten (10) consecutive
Business Days or an aggregate of twenty (20) Business Days in any 365 day
period, with at least thirty (30) calendar days between each such suspension)
the actions required under Section 2(a) of this Agreement to the extent that the
Board of Directors of the Company concludes reasonably and in good faith that
the disclosure of information in the prospectus is not in the best interest of
the Company.  Each such payment required to be made under this Section
2(c) shall be made within ten (10) Business Days following the last day of each
calendar month in which a Registration Default exists; provided that the Holder
has provided written evidence of its ownership as specified
above.  Any such payment made following such ten (10) Business Day
window shall be subject to interest at the lower of ten percent (10%) and the
maximum rate permitted by applicable law.  Any such payment shall be
in addition to any other remedies available to each Holder at law or in equity,
whether pursuant to the terms hereof, the Subscription Agreements or
otherwise.

     

    (d) Allocation of Unit Shares
and Warrant Shares.  The initial number of Unit Shares and
Warrant Shares included in any Registration Statement and each increase in the
number thereof included therein shall be allocated pro rata among the Holders
based on the aggregate number of Registrable Securities issuable to each Holder
at the time the Registration Statement covering such initial number of
Registrable Securities or increase thereof is declared effective by the
Commission.  In the event that a Holder sells or otherwise transfers
any of such Holder’s Registrable Securities, each transferee shall be allocated
the portion of the then remaining number of Registrable Securities included in
such Registration Statement allocable to the transferor.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (e) Additional Registration
Statements.  The Subscribers acknowledge that the Commission
has recently given enhanced scrutiny to registration statements attempting to
register the resale of shares and warrant shares obtained by purchasers in
private placements and that such Commission reviews have resulted in registrants
being denied the use of Rule 415(a)(1)(i) under the Securities
Act.  Accordingly, notwithstanding anything herein to the contrary,
the Subscribers agree that (i) the Company shall not be obligated to pay any
amount of liquidated damages under Section 2(c) in the event the Registration
Statement is not declared effective on or prior to the Registration Deadline
solely as a result of or in connection with a determination by the Commission
that either the Company or the Subscribers are ineligible to rely on Rule
415(a)(1)(i) under the Securities Act with respect to the registration of any of
the Registrable Securities for resale by the Subscribers on a continuous or
delayed basis; provided, that the Company shall thereafter use its commercially
reasonable efforts to find alternative methods to register the Registrable
Securities with the Commission for resale; and (ii) in the event the Company,
after conducting a pre-filing conference with the Commission, if possible,
reasonably determines that it is unable to, or it is inadvisable for the Company
to attempt to, register all of the Registrable Securities in a single
Registration Statement, the Company may elect to fulfill the registration
requirements of this Section 2 by registering the Registrable Securities in two
or more Registration Statements, provided that the Company shall use its
reasonable efforts to file each subsequent Registration Statement no later than
the later of (A) 60 days following the date on which the last of the Registrable
Securities registered under the preceding Registration Statement were sold or
(B) six (6) months following the date on which the preceding Registration
Statement was declared effective.

     

    
      	
              3.  

            	
              OBLIGATIONS OF THE
      COMPANY.

            

    

     

    In
addition to performing its obligations hereunder, including without limitation
those pursuant to Section 2 above, the Company shall, with respect to each
Registration Statement:

     

    (a) prepare
and file with the Commission such amendments and supplements to such
Registration Statement and the prospectus used in connection with such
Registration Statement as may be necessary to comply with the provisions of the
Securities Act or to maintain the effectiveness of such Registration Statement
during the Registration Period, or as may be reasonably requested by a Holder in
order to incorporate information concerning such Holder or such Holder’s
intended method of distribution and further incorporating such additional
information as may be reasonably requested by such Holder;

     

    (b) at such
time following the Closing that the Company is eligible to do so, use
commercially reasonable efforts to secure the listing on the Principal Market of
the Unit Shares and all other Registrable Securities issuable upon exercise of
the Warrants, and at any Holder’s request, provide such Holder with reasonable
evidence thereof;

     

    (c) so long
as a Registration Statement is effective covering the resale of the applicable
Registrable Securities owned by a Holder, furnish to each Holder such number of
copies of the prospectus included in such Registration Statement, including a
preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents as such Holder may reasonably request in order to
facilitate the disposition of such Holder’s Registrable Securities;

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (d) use
commercially reasonable efforts to register or qualify the Registrable
Securities under the securities or “blue sky” laws of such jurisdictions within
the United States as shall be reasonably requested from time to time by a
Holder, and do any and all other acts or things which may reasonably be
necessary or advisable to enable such Holder to consummate the public sale or
other disposition of the Registrable Securities in such jurisdictions; provided
that the Company shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of
process in any such jurisdiction;

     

    (e) notify
each Holder immediately after becoming aware of the occurrence of (i) any
request by the Commission or any other federal/state governmental authority
during the period of effectiveness of the Registration Statement for amendments
or supplements to a Registration Statement or related prospectus or for
additional information or (ii) any other event (but shall not, without the prior
written consent of such Holder, disclose to such Holder any facts or
circumstances constituting material non-public information) as a result of which
the prospectus included in such Registration Statement, as then in effect,
contains an untrue statement of material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and as
promptly as practicable prepare and file with the Commission and furnish to each
Holder a reasonable number of copies of a supplement or an amendment to such
prospectus as may be necessary so that such prospectus does not contain an
untrue statement of material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing.  The parties hereto
acknowledge that the Company shall be permitted to suspend the Registration
Statement for one or more periods (provided that the aggregate length of such
suspension shall not exceed ten (10) consecutive Business Days or an aggregate
of thirty (30) Business Days in any 365 day period) the actions required under
Section 2(a) of this Agreement to the extent that the Board of Directors of the
Company concludes reasonably and in good faith that the disclosure of
information in the prospectus is not in the best interest of the
Company;

     

    (f) use
commercially reasonable efforts to prevent the issuance of any stop order or
other order suspending the effectiveness of such Registration Statement and, if
such an order is issued, to notify each Holder immediately after becoming aware
thereof and to use commercially reasonable efforts obtain the withdrawal thereof
at the earliest possible time and to notify each Holder in writing of the
issuance of such order and the resolution thereof.  The parties hereto
acknowledge that the Company shall be permitted to suspend the Registration
Statement for one or more periods (provided that the aggregate length of such
suspension shall not exceed ten (10) consecutive Business Days or an aggregate
of thirty (30) Business Days in any 365 day period) the actions required under
Section 2(a) of this Agreement to the extent that the Board of Directors of the
Company concludes reasonably and in good faith that the disclosure of
information in the prospectus is not in the best interest of the
Company;

     

    (g) furnish
to each Holder, on the date that such Registration Statement, or any successor
registration statement, becomes effective, a letter, dated such date, signed by
an officer of or counsel to the Company and addressed to such Holder, confirming
such effectiveness and, to the knowledge of such counsel, the absence of any
stop order;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (h) provide
to each Holder and its representatives the reasonable opportunity to conduct a
reasonable inquiry of the Company’s financial and other records during normal
business hours and make available during normal business hours and with
reasonable advance notice its officers, directors and employees for questions
regarding information which such Holder may reasonably request in order to
fulfill any due diligence obligation on its part;

     

    (i) permit
counsel for each Holder to review such Registration Statement and all amendments
and supplements thereto, and any comments made by the staff of the Commission
concerning such Holder and/or the transactions contemplated by the Transaction
Documents and the Company’s responses thereto, within a reasonable period of
time prior to the filing thereof with the Commission (or, in the case of
comments made by the staff of the Commission, within a reasonable period of time
following the receipt thereof by the Company);

     

    (j) in the
event that, at any time, the number of shares available under the Registration
Statement is insufficient to cover the Registrable Securities (such number to be
determined using the Exercise Price in effect at such time and without regard to
any restriction on the ability of any Holder to exercise such Holder’s Warrant)
the Company shall promptly amend such Registration Statement or file a new
registration statement, in any event as soon as practicable, but not later than
the tenth (10th) Business Day following notice from a Holder of the occurrence
of such event, so that such Registration Statement or such new registration
statement, or both, covers the Registrable Securities eligible for resale
thereunder and issuable under the Warrants (such number to be determined using
the Exercise Price in effect at the time of such amendment or filing and without
regard to any restriction on the ability of any Holder to exercise such Holder’s
Warrant).  The Company shall use its reasobale efforts to cause such
amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof.  Unless and until such
amendment or new Registration Statement becomes effective, each Holder shall
have the rights described in Section 2(d) above; and

     

    (k) cause to
be timely furnished to each Holder, earnings statements of the Company
conforming to the requirements of Rule 158 under the Securities
Act.

     

    
      	
              4.  

            	
              OBLIGATIONS OF EACH
      HOLDER.

            

    

     

    In
connection with the registration of Registrable Securities pursuant to a
Registration Statement, each Holder shall:

     

    (a) timely
furnish to the Company (i) a completed Selling Shareholder Questionnaire
attached hereto as Exhibit B and (ii) such information in writing regarding
itself and the intended method of disposition of such Registrable Securities as
the Company shall reasonably request in order to effect the registration
thereof;

     

    (b) upon
receipt of any notice from the Company of the happening of any event of the kind
described in Sections 3(e) or 3(f), immediately discontinue any sale or other
disposition of such Registrable Securities pursuant to such Registration
Statement until the filing of an amendment or supplement as described in Section
3(e) or withdrawal of the stop order referred to in Section 3(f), and use
commercially reasonable efforts to maintain the confidentiality of such notice
and its contents;

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (c) to the
extent required by applicable law, deliver a prospectus to the purchaser of such
Registrable Securities;

     

    (d) notify
the Company when it has sold all of the Registrable Securities held by it;
and

     

    (e) notify
the Company in the event that any information supplied by such Holder in writing
for inclusion in such Registration Statement or related prospectus is untrue or
omits to state a material fact required to be stated therein or necessary to
make such information not misleading in light of the circumstances then
existing; immediately discontinue any sale or other disposition of such
Registrable Securities pursuant to such Registration Statement until the filing
of an amendment or supplement to such prospectus as may be necessary so that
such prospectus does not contain an untrue statement of material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing;
and use commercially reasonable efforts to assist the Company as may be
appropriate to make such amendment or supplement effective for such
purpose.

     

    
      	
              5.  

            	
              INDEMNIFICATION.

            

    

     

    In the
event that any Registrable Securities are included in a Registration Statement
under this Agreement:

     

    (a) To the
fullest extent permitted by law, the Company will, and hereby does, indemnify,
hold harmless and defend each Holder, the directors, officers, members,
partners, employees, agents, representatives of, and each Person, if any, who
controls any Holder within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”) (each, an “Indemnified
Person”), against any losses, claims, damages, liabilities, judgments,
fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in
settlement or expenses, joint or several, (collectively, “Claims”)
incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or
before any court or governmental, administrative or other regulatory agency,
body or the Commission, whether pending or threatened, whether or not an
indemnified party is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims
(or actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon:  (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement or any
post-effective amendment thereto or in any filing made in connection with the
qualification of the offering under the securities or other “blue sky” laws of
any jurisdiction in which Registrable Securities are offered (“Blue Sky
Filing”), or the omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, (ii) any untrue statement or alleged untrue statement of a material
fact contained in any preliminary prospectus if used prior to the effective date
of such Registration Statement, or contained in the final prospectus (as amended
or supplemented, if the Company files any amendment thereof or supplement
thereto with the Commission) or the omission or alleged omission to state
therein any material fact necessary to make the statements made therein, in the
light of the circumstances under which the statements therein were made, not
misleading, (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any other law, including, without limitation,
any state securities law, or any rule or regulation thereunder relating to the
offer or sale of the Registrable Securities pursuant to a Registration Statement
or (iv) any violation of this Agreement (the matters in the foregoing clauses
(i) through (iv) being, collectively, “Violations”).  Subject
to Section 5(c), the Company shall reimburse the Indemnified Persons, promptly
as such expenses are incurred and are due and payable, for any reasonable legal
fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim.  Notwithstanding anything
to the contrary contained herein, the indemnification agreement contained in
this Section 5(a):  (i) shall not apply to a Claim by an Indemnified
Person arising out of or based upon a Violation which occurs in reliance upon
and in conformity with information furnished in writing to the Company by such
Indemnified Person for such Indemnified Person expressly for use in connection
with the preparation of the Registration Statement or any such amendment thereof
or supplement thereto, if such prospectus was timely made available by the
Company pursuant to Section 3(c) and (ii) shall not be available to the extent
such Claim is based on a failure of the Holder to deliver or to cause to be
delivered the prospectus made available by the Company, including a corrected
prospectus, if such prospectus or corrected prospectus was timely made available
by the Company pursuant to Section 3(c); and (iii) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior
written consent of the Company, which consent shall not be unreasonably withheld
or delayed.  Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the transfer of the Registrable Securities by the Holders
pursuant to Section 7(d).

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b) In
connection with any Registration Statement in which a Holder is participating,
each such Holder agrees to severally and not jointly indemnify, hold harmless
and defend, to the same extent and in the same manner as is set forth in Section
5(a), the Company, each of its directors, each of its officers who signs the
Registration Statement and each Person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act (each, an “Indemnified
Party”), against any Claim or Indemnified Damages to which any of them
may become subject, under the Securities Act, the Exchange Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Holder expressly for use in connection with
such Registration Statement; and, subject to Section 5(c), such Holder will
reimburse any legal or other expenses reasonably incurred by an Indemnified
Party in connection with investigating or defending any such Claim; provided,
however, that the indemnity agreement contained in this Section 5(b) shall not
apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of such Holder, which consent shall not be
unreasonably withheld or delayed; provided, further, however, that the Holder
shall be liable under this Section 5(b) for only that amount of a Claim or
Indemnified Damages as does not exceed the net proceeds to such Holder as a
result of the sale of Registrable Securities pursuant to such Registration
Statement.  Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the transfer of the Registrable Securities by the Holders
pursuant to Section 7(d).

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (c) Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 5
of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving a Claim, such Indemnified Person or
Indemnified Party shall, if a Claim in respect thereof is to be made against any
indemnifying party under this Section 5, deliver to the indemnifying party a
written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses of not
more than one counsel for such Indemnified Person or Indemnified Party to be
paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding.  In the case of an Indemnified Person,
legal counsel referred to in the immediately preceding sentence shall be
selected by the Holders holding at least a majority in interest of the
Registrable Securities included in the Registration Statement to which the Claim
relates.  The Indemnified Party or Indemnified Person shall cooperate
fully with the indemnifying party in connection with any negotiation or defense
of any such action or Claim by the indemnifying party and shall furnish to the
indemnifying party all information reasonably available to the Indemnified Party
or Indemnified Person which relates to such action or Claim.  The
indemnifying party shall keep the Indemnified Party or Indemnified Person
reasonably apprised at all times as to the status of the defense or any
settlement negotiations with respect thereto.  No indemnifying party
shall be liable for any settlement of any action, claim or proceeding effected
without its prior written consent, provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its
consent.  No indemnifying party shall, without the prior written
consent of the Indemnified Party or Indemnified Person, consent to entry of any
judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person of a release from all liability in
respect to such Claim or litigation, and such settlement shall not include any
admission as to fault on the part of the Indemnified Party.  Following
indemnification as provided for hereunder, the indemnifying party shall be
subrogated to all rights of the Indemnified Party or Indemnified Person with
respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made.  The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action shall not relieve such indemnifying party of any liability to
the Indemnified Person or Indemnified Party under this Section 5, except to the
extent that the indemnifying party is prejudiced in its ability to defend such
action.

     

    (d) The
indemnification required by this Section 5 shall be made by periodic payments of
the amount thereof during the course of the investigation or defense, as and
when bills are received or Indemnified Damages are incurred.

     

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

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
              6.  

            	
              REPORTS.

            

    

     

    With a
view to making available to each Holder the benefits of Rule 144 and any other
similar rule or regulation of the Commission that may at any time permit such
Holder to sell securities of the Company to the public without registration, the
Company agrees that until the earliest to occur of (i) the date on which all of
the Registrable Securities eligible for resale thereunder have been publicly
sold pursuant to either the Registration Statement or Rule 144 under the
Securities Act (“Rule 144”)
and (ii) the date that is the second (2nd) anniversary of the date hereof, the
Company shall:

     

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

     

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

     

    (c) furnish
to such Holder, so long as such Holder owns any Registrable Securities, promptly
upon written request (i) a written statement by the Company, if true, that it
has complied with the reporting requirements of Rule 144 and the Exchange Act,
(ii) a copy of the most recent annual or quarterly report of the Company and
such other reports and documents so filed by the Company with the Commission,
and (iii) such other information as may be reasonably requested by such Holder
in connection with such Holder’s compliance with any rule or regulation of the
Commission which permits the selling of any such securities without
registration.

     

    
      	
              7.  

            	
              MISCELLANEOUS.

            

    

     

    (a) Expenses
of Registration; Additional Covenants of the Company.  Except as
otherwise provided in the Subscription Agreements, all reasonable expenses,
other than underwriting discounts and commissions and fees and expenses of
counsel and other advisors to each Holder, incurred in connection with the
registrations, filings or qualifications described herein, including (without
limitation) all registration, filing and qualification fees, printers’ and
accounting fees, the fees and disbursements of counsel for the Company, and the
fees and disbursements incurred in connection with the opinion and letter
described in Section 3(g) hereof, shall be borne by the
Company.  Except as otherwise agreed to by such Holder, the Company
shall maintain in strict confidence, all information with respect to such
Holder.

     

    (b) Amendment;
Waiver.  Except as expressly provided herein, neither this Agreement
nor any term hereof may be amended or waived except pursuant to a written
instrument executed by the Company and the Holders of at least two-thirds (2/3)
of the Registrable Securities.  Any amendment or waiver effected in
accordance with this Section 7(b) shall be binding upon each Holder, each future
Holder and the Company.  The failure of any party to exercise any
right or remedy under this Agreement or otherwise, or the delay by any party in
exercising such right or remedy, shall not operate as a waiver
thereof.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

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

     

    if to the
Company:

     

    VeruTEK
Technologies, Inc.

    65 West
Dudley Town Road, Suite 100

    Bloomfield,
CT  06002

    Facsimile:  (860)
242-9899

    Attention:  John
Collins, Chief Executive Officer

     

    with a
copy (for informational purposes only) to:

     

    Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

    One
Financial Center

    Boston,
MA 02111

    Facsimile:  (617)
542-2241

    Attention:  Sahir
C. Surmeli, Esq.

     

    and if to
the Holder, to the address and facsimile number as to which the Holder has
notified the Company in writing.

     

    Written
confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) mechanically or electronically generated by
the sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by an
overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from an overnight courier service in accordance
with clause (i), (ii) or (iii) above, respectively.

     

    (d) Assignment.  Upon
the transfer of any Warrant or Registrable Securities by a Holder, the rights of
such Holder hereunder with respect to such securities so transferred shall be
assigned automatically to the transferee thereof, and such transferee shall
thereupon be deemed to be a “Holder” for purposes of this Agreement, as long
as:  (i) the Company is, within a reasonable period of time following
such transfer, furnished with written notice of the name and address of such
transferee, (ii) the transferee agrees in writing with the Company to be bound
by all of the provisions hereof, (iii) such transfer is made in accordance with
the applicable requirements of the Subscription Agreements or the Warrants, as
applicable and (iv) such transfer is not made pursuant to Rule 144 or a
Registration Statement.

     

    (e) Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which together shall be deemed one and the same
instrument.  This Agreement, once executed by a party, may be
delivered to any other party hereto by facsimile transmission.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (f) Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within the State of New York.

     

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

     

    (h) Entire
Agreement.  This Agreement and the other Transaction Documents
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof.  There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein and therein.  This Agreement and the other Transaction
Documents supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

     

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

     

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

     

    [Signature Pages to
Follow]

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the undersigned has executed this Agreement as of the date
first-above written.

     

    
      
        	 	VERUTEK
      TECHNOLOGIES, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

    

     

    [Signature
Page to Registration Rights Agreement]

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the undersigned has executed this Agreement as of the date
indicated below.

     

    SUBSCRIBER:

     

    Name of
Subscriber

     

    

     

    By:                                                                

    Name:
_____________________________

    Title:
_____________________________

     

    

     

    Date:
_____________________________

     

     

     

     

     

     

    [Signature
Page to Registration Rights Agreement]

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

     

    PLAN
OF DISTRIBUTION

     

    We are
registering the shares of common stock issued in a private placement and shares
of common stock issuable upon exercise of warrants issued in a private placement
to permit the resale of these shares of common stock by the holders of the
shares and warrants from time to time after the date of this
prospectus.  We will not receive any of the proceeds from the sale by
the selling stockholders of the shares of common stock.  We will bear
all fees and expenses incident to our obligation to register the shares of
common stock.

     

    The
selling stockholders may sell all or a portion of the shares of common stock
beneficially owned by them and offered hereby from time to time directly or
through one or more underwriters, broker-dealers or agents.  If the
shares of common stock are sold through underwriters or broker-dealers, the
selling stockholders will be responsible for underwriting discounts or
commissions or agent’s commissions.  The shares of common stock may be
sold in one or more transactions at fixed prices, at prevailing market prices at
the time of the sale, at varying prices determined at the time of sale, or at
negotiated prices.  These sales may be effected in transactions, which
may involve crosses or block transactions,

     

    
      	
                 

            	
              on
      any national securities exchange or quotation service on which the
      securities may be listed or quoted at the time of
  sale;

            

    

     

    
      	
                 

            	
              in
      the over-the-counter market;

            

    

     

    
      	
                 

            	
              in
      transactions otherwise than on these exchanges or systems or in the
      over-the-counter market;

            

    

     

    
      	
                 

            	
              through
      the writing of options, whether such options are listed on an options
      exchange or otherwise;

            

    

     

    
      	
                 

            	
              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 resale by the broker-dealer for its
      account;

            

    

     

    
      	
                 

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

            

    

     

    
      	
                 

            	
              privately
      negotiated transactions;

            

    

     

    
      	
                 

            	
              short
      sales;

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
                 

            	
              sales
      pursuant to Rule 144;

            

    

     

    
      	
                 

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

            

    

     

    
      	
                 

            	
              a
      combination of any such methods of sale;
and

            

    

     

    
      	
                 

            	
              any
      other method permitted pursuant to applicable
  law.

            

    

     

    If the
selling stockholders effect such transactions by selling shares of common stock
to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts,
concessions or commissions from the selling stockholders or commissions from
purchasers of the shares of common stock for whom they may act as agent or to
whom they may sell as principal (which discounts, concessions or commissions as
to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved).  In connection with
sales of the shares of common stock or otherwise, the selling stockholders may
enter into hedging transactions with broker-dealers, which may in turn engage in
short sales of the shares of common stock in the course of hedging in positions
they assume.  The selling stockholders may also sell shares of common
stock short and deliver shares of common stock covered by this prospectus to
close out short positions and to return borrowed shares in connection with such
short sales.  The selling stockholders may also loan or pledge shares
of common stock to broker-dealers that in turn may sell such
shares.

     

    The
selling stockholders may pledge or grant a security interest in some or all of
the shares of common stock or warrants and, if they default in the performance
of their secured obligations, the pledgees or secured parties may offer and sell
the shares of common stock from time to time pursuant to this prospectus or any
amendment to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act, amending, if necessary, the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling
stockholders under this prospectus.  The selling stockholders also may
transfer and donate the shares of common stock in other circumstances in which
case the transferees, donees, pledgees or other successors in interest will be
the selling beneficial owners for purposes of this prospectus.

     

    The
selling stockholders and any broker-dealer participating in the distribution of
the shares of common stock may be deemed to be “underwriters” within the meaning
of the Securities Act, and any commission paid, or any discounts or concessions
allowed to, any such broker-dealer may be deemed to be underwriting commissions
or discounts under the Securities Act.  At the time a particular
offering of the shares of common stock is made, a prospectus supplement, if
required, will be distributed which will set forth the aggregate amount of
shares of common stock being offered and the terms of the offering, including
the name or names of any broker-dealers or agents, any discounts, commissions
and other terms constituting compensation from the selling stockholders and any
discounts, commissions or concessions allowed or reallowed or paid to
broker-dealers.

     

    Under the
securities laws of some states, the shares of common stock may be sold in such
states only through registered or licensed brokers or dealers.  In
addition, in some states the shares of common stock may not be sold unless such
shares have been registered or qualified for sale in such state or an exemption
from registration or qualification is available and is complied
with.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    There can
be no assurance that any selling stockholder will sell any or all of the shares
of common stock registered pursuant to the registration statement, of which this
prospectus forms a part.

     

    The
selling stockholders and any other person participating in such distribution
will be subject to applicable provisions of the Exchange Act, and the rules and
regulations thereunder, including, without limitation, Regulation M of the
Exchange Act, which may limit the timing of purchases and sales of any of the
shares of common stock by the selling stockholders and any other participating
person.  Regulation M may also restrict the ability of any person
engaged in the distribution of the shares of common stock to engage in
market-making activities with respect to the shares of common
stock.  All of the foregoing may affect the marketability of the
shares of common stock and the ability of any person or entity to engage in
market-making activities with respect to the shares of common
stock.

     

    We will
pay all expenses of the registration of the shares of common stock pursuant to
the registration rights agreement, including, without limitation, Securities and
Exchange Commission filing fees and expenses of compliance with state securities
or “blue sky” laws; provided, however, that a selling stockholder will pay all
underwriting discounts and selling commissions, if any.  We will
indemnify the selling stockholders against liabilities, including some
liabilities under the Securities Act, in accordance with the registration rights
agreements, or the selling stockholders will be entitled to
contribution.  We may be indemnified by the selling stockholders
against civil liabilities, including liabilities under the Securities Act, that
may arise from any written information furnished to us by the selling
stockholder specifically for use in this prospectus, in accordance with the
related registration rights agreement, or we may be entitled to
contribution.

     

    Once sold
under the registration statement, of which this prospectus forms a part, the
shares of common stock will be freely tradable in the hands of persons other
than our affiliates.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    EXHIBIT
B

     

    SELLING
SHAREHOLDER QUESTIONNAIRE

     

    VERUTEK
TECHNOLOGIES, INC.

     

    The
undersigned beneficial owner of common stock, $______ par value per share (the
“Common Stock”), of VeruTEK Technologies, Inc.  (the “Company”), (the
“Registrable Securities”) understands that the Company has filed or intends to
file with the Securities and Exchange Commission (the “Commission”) a
registration statement (the “Registration Statement”) for the registration and
resale under the Securities Act of 1933, as amended (the “Securities Act”), of
the Registrable Securities, in accordance with the terms of the Registration
Rights Agreement, dated as of ____, 2008 (the “Registration Rights Agreement”),
among the Company and the Subscribers named therein.  The purpose of
this Questionnaire is to facilitate the filing of the Registration Statement
under the Securities Act that will permit you to resell the Registrable
Securities in the future.  The information supplied by you will be
used in preparing the Registration Statement.  A copy of the
Registration Rights Agreement is available from the Company upon request as
follows:  VeruTEK Technologies, Inc., 65 West Dudley Town Road, Suite
100, Bloomfield, CT  06002, Attention:  John Collins, Chief
Executive Officer, Telephone:  (860) 242-9800.  All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

     

    Certain
legal consequences arise from being named as a selling shareholder in the
Registration Statement and the related prospectus.  Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult
their own securities law counsel regarding the consequences of being named or
not being named as a selling shareholder in the Registration Statement and the
related prospectus.

     

    NOTICE

     

    The
undersigned beneficial owner (the “Selling
Shareholder”) of Registrable Securities hereby elects to include the
Registrable Securities owned by it and listed below in Item 3 (unless otherwise
specified under such Item 3) in the Registration Statement.

     

    QUESTIONNAIRE

     

    1.           Name.

     

    (a)           Full
Legal Name of Selling Shareholder:

     

    
      	
               
      

            	
              (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:

            

    

     

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (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 Shareholder:

     

    Telephone:                                                                                                                                         

     

    Fax:                                                                                                                                         

     

    Contact
Person:                                                                                                                                         

     

    E-mail
address of Contact
Person:                                                                                                                                         

     

    
      	
              3.

            	
              Beneficial
      Ownership of Registrable Securities Issuable Pursuant to the Subscription
      Agreements:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Type
      and Number of Registrable Securities beneficially owned and issued
      pursuant to the Subscription
Agreements:

            

    

     

    4.           Broker-Dealer
Status:

     

    
      	
               
      

            	
              (a)

            	
              Are
      you a broker-dealer?

            

    

     

    oYes                       o No 

     

    
      	
               
      

            	
              (b)

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

            

    

     

    oYes                        oNo

     

    
      	
              Note:

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

            

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              Are
      you an affiliate of a
broker-dealer?

            

    

     

    oYes                        oNo

     

    Note:                      If
yes, provide a narrative explanation below:

     

    
      	
               
      

            	
              (c)

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

            

    

     

    o
Yes                       o 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
      Shareholder.

            

    

     

    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 securities
issuable pursuant to the Subscription Agreements.

     

    
      	
               
      

            	
              (a)
      Type and Amount of other securities beneficially owned by the selling
      shareholder:

            

    

     

    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 Registration Rights 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:

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    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 Registration Statement filed
pursuant to the Registration Rights Agreement.

     

    By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 7 and the inclusion of such
information in each Registration Statement filed pursuant to the Registration
Rights Agreement and each related 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 related 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.  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 Registration Rights 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 Compliance and
Disclosure Interpretation of the Staff of the United States Securities and
Exchange Commission from its 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 shareholders 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.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    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.

     

    
      
        	 	Beneficial
      Owner: 	 
	 	 	 	 
	
                Dated:  

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

    

     

     

     

    22

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