Document:

EXHIBIT 4.1
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                          SECURITIES PURCHASE AGREEMENT

         This Securities Purchase Agreement (this "Agreement") is dated as of
March 19, 2004, among Matritech, Inc., a Delaware corporation (the "Company"),
and each purchaser identified on the signature pages hereto (each a "Purchaser"
and collectively the "Purchasers"); and

         WHEREAS, subject to the terms and conditions set forth in this
Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as
amended, and Rule 506 promulgated thereunder, the Company desires to issue and
sell to the Purchasers, and each Purchaser, severally and not jointly, desires
to purchase from the Company in the aggregate up to 4,858,887 shares of Common
Stock and Warrants on the Closing Date, as more fully described in this
Agreement.

         NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agrees
as follows:

                                   ARTICLE I.
                                   DEFINITIONS

         1.1 Definitions. In addition to the terms defined elsewhere in this
Agreement, for all purposes of this Agreement, the following terms have the
meanings indicated in this Section 1.1:

                  "Action" shall have the meaning ascribed to such term in
         Section 3.1(j).

                  "Affiliate" means any Person that, directly or indirectly
         through one or more intermediaries, controls or is controlled by or is
         under common control with a Person as such terms are used in and
         construed under Rule 144. With respect to a Purchaser, any investment
         fund or managed account that is managed on a discretionary basis by the
         same investment manager as such Purchaser will be deemed to be an
         Affiliate of such Purchaser.

                  "Business Day" means any day except Saturday, Sunday and any
         day which shall be a federal legal holiday or a day on which banking
         institutions in the State of New York are authorized or required by law
         or other governmental action to close.

                  "Closing" means the closing of the purchase and sale of the
         Common Stock and the Warrants pursuant to Section 2.1.

                  "Closing Date" means the Trading Day when all of the
         Transaction Documents have been executed and delivered by the
         applicable parties thereto, and all conditions precedent to the
         Purchasers' obligations to (i) pay the Subscription Amount and (ii) the
         Company's obligation to deliver the Securities have been satisfied or
         waived.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the common stock of the Company, $0.01
         par value per share, and any securities into which such common stock
         may hereafter be reclassified.

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                  "Common Stock Equivalents" means any securities of the Company
         or the Subsidiaries which would entitle the holder thereof to acquire
         at any time Common Stock, including without limitation, any debt,
         preferred stock, rights, options, warrants or other instrument that is
         at any time convertible into or exchangeable for, or otherwise entitles
         the holder thereof to receive, Common Stock.

                  "Company Counsel" means Testa, Hurwitz & Thibeault, LLP,
         outside counsel to the Company, with offices at 125 High Street,
         Boston, Massachusetts 02110.

                  "Disclosure Schedules" means the Disclosure Schedules
         delivered concurrently herewith.

                  "Effective Date" means the date that the Registration
         Statement is first declared effective by the Commission.

                  "Evaluation Date" shall have the meaning ascribed to such term
         in Section 3.1(r).

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended.

                  "FW" means Feldman Weinstein LLP with offices located at 420
         Lexington Avenue, Suite 2620, New York, New York 10170-0002.

                  "GAAP" shall have the meaning ascribed to such term in Section
         3.1(h).

                  "Intellectual Property Rights" shall have the meaning ascribed
         to such term in Section 3.1(o).

                  "Legend Removal Date" shall have the meaning ascribed to such
         term in Section 4.1(c).

                  "Liens" means a lien, charge, security interest, encumbrance,
         right of first refusal, preemptive right or other restriction.

                   "Material Adverse Effect" shall have the meaning ascribed to
         such term in Section 3.1(b).

                  "Material Permits" shall have the meaning ascribed to such
         term in Section 3.1(m).

                  "Per Share Purchase Price" equals $1.35, subject to adjustment
         for reverse and forward stock splits, stock dividends, stock
         combinations and other similar transactions of the Common Stock that
         occur after the date of this Agreement.

                  "Person" means an individual or corporation, partnership,
         trust, incorporated or unincorporated association, joint venture,
         limited liability company, joint stock company, government (or an
         agency or subdivision thereof) or other entity of any kind.

                  "Pro Rata Portion" shall have the meaning ascribed to such
         term in Section 4.11.

                  "Purchaser Parties" shall have the meaning ascribed to such
         term in Section 4.8.

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                  "Registration Rights Agreement" means the Registration Rights
         Agreement, dated as of the date of this Agreement, among the Company
         and each Purchaser, in the form of Exhibit A hereto.

                  "Registration Statement" means a registration statement
         meeting the requirements set forth in the Registration Rights Agreement
         and covering the resale by the Purchasers of the Shares and the Warrant
         Shares.

                  "Required Approvals" shall have the meaning ascribed to such
         term in Section 3.1(e).

                  "Rule 144" means Rule 144 promulgated by the Commission
         pursuant to the Securities Act, as such Rule may be amended from time
         to time, or any similar rule or regulation hereafter adopted by the
         Commission having substantially the same effect as such Rule.

                  "SEC Reports" shall have the meaning ascribed to such term in
         Section 3.1(h).

                  "Securities" means the Shares, the Warrants and the Warrant
         Shares.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Shares" means the shares of Common Stock issued or issuable
         to each Purchaser pursuant to this Agreement.

                  "Subscription Amount" means, as to each Purchaser, the amounts
         set forth below such Purchaser's signature block on the signature page
         hereto, in United States dollars and in immediately available funds.

                   "Subsidiary" shall mean the subsidiaries of the Company, if
         any, set forth on Schedule 3.1(a) and all future direct and indirect
         subsidiaries of the Company.

                  "Trading Day" means (i) a day on which the Common Stock is
         traded on a Trading Market, or (ii) if the Common Stock is not listed
         on a Trading Market, a day on which the Common Stock is traded on the
         over-the-counter market, as reported by the OTC Bulletin Board, or
         (iii) if the Common Stock is not quoted on the OTC Bulletin Board, a
         day on which the Common Stock is quoted in the over-the-counter market
         as reported by the National Quotation Bureau Incorporated (or any
         similar organization or agency succeeding its functions of reporting
         prices); provided, that in the event that the Common Stock is not
         listed or quoted as set forth in (i), (ii) and (iii) hereof, then
         Trading Day shall mean a Business Day.

                  "Trading Market" means the following markets or exchanges on
         which the Common Stock is listed or quoted for trading on the date in
         question: the American Stock Exchange, the New York Stock Exchange, the
         Nasdaq National Market or the Nasdaq SmallCap Market.

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                  "Transaction Documents" means this Agreement, the Warrants and
         the Registration Rights Agreement and any other documents or agreements
         executed in connection with the transactions contemplated hereunder.

                  "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 primary Trading Market on which the Common Stock is then listed
         or quoted as reported by Bloomberg Financial L.P. (based on a Trading
         Day from 9:30 a.m. ET to 4:02 p.m. Eastern Time) using the VAP
         function; (b) if the Common Stock is not then listed or quoted on an
         Trading Market and if prices for the Common Stock are then quoted on
         the OTC Bulletin Board, the 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 listed or quoted on the OTC
         Bulletin Board and if prices for the Common Stock are then reported in
         the "Pink Sheets" published by the National Quotation Bureau
         Incorporated (or a similar organization or agency succeeding to its
         functions of reporting prices), the most recent bid price per share of
         the Common Stock so reported; or (c) in all other cases, the fair
         market value of a share of Common Stock as determined by a nationally
         recognized-independent appraiser selected in good faith by Purchasers
         holding a majority of Shares then outstanding.

                  "Warrants" means collectively the Common Stock purchase
         warrants, in the form of Exhibit C, issuable to the Purchasers at the
         Closing, which warrants shall be exercisable immediately and have an
         exercise price equal to $2.00 and be exercisable for a period of 5
         years.

                  "Warrant Shares" means the shares of Common Stock issuable
         upon exercise of the Warrants.

                                  ARTICLE II.
                                PURCHASE AND SALE

         2.1 Closing. At the Closing, each Purchaser shall purchase from the
Company, severally and not jointly with the other Purchasers, and the Company
shall issue and sell to each Purchaser, (a) a number of Shares equal to such
Purchaser's Subscription Amount divided by the Per Share Purchase Price and (b)
the Warrants as determined pursuant to Section 2.2(a)(iii). The aggregate
Subscription Amounts for Shares sold hereunder shall be for up to 4,858,887
shares. Upon satisfaction of the conditions set forth in Section 2.2, the
Closing shall occur at the offices of FW, or such other location as the parties
shall mutually agree.

         2.2 Closing Conditions.

                  (a) At the Closing, the Company shall deliver or cause to be
         delivered to each Purchaser the following:

                           (i) this Agreement duly executed by the Company;

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                           (ii) a copy of the irrevocable instructions to the
                  Company's transfer agent instructing the transfer agent to
                  deliver, on an expedited basis, a certificate evidencing a
                  number of Shares equal to such Purchaser's Subscription Amount
                  divided by the Per Share Purchase Price, registered in the
                  name of such Purchaser;

                           (iii) within 3 Trading Days of the Closing Date, a
                  Warrant, registered in the name of such Purchaser, pursuant to
                  which such Purchaser shall have the right to acquire up to the
                  number of shares of Common Stock equal to 25% of the Shares to
                  be issued to such Purchaser at the Closing;

                           (iv) the Registration Rights Agreement duly executed
                  by the Company; and

                           (v) a legal opinion of Company Counsel, in the form
                  of Exhibit B attached hereto.

                  (b) At the Closing each Purchaser shall deliver or cause to be
         delivered to the Company the following:

                           (i) this Agreement duly executed by such Purchaser;

                           (ii) such Purchaser's Subscription Amount by wire
                  transfer to an account as specified in writing by the Company;
                  and

                           (iii) the Registration Rights Agreement duly executed
                  by such Purchaser.

                  (c) All representations and warranties of the other party
         contained herein shall remain true and correct as of the Closing Date
         and all covenants of the other party to be performed prior to the
         Closing shall have been performed.

                  (d) From the date hereof to the Closing Date, trading in the
         Common Stock shall not have been suspended by the Commission (except
         for any suspension of trading of limited duration agreed to by the
         Company, which suspension shall be terminated prior to the Closing),
         and, at any time prior to the Closing Date, trading in securities
         generally as reported by Bloomberg Financial Markets shall not have
         been suspended or limited, or minimum prices shall not have been
         established on securities whose trades are reported by such service, or
         on any Trading Market, nor shall a banking moratorium have been
         declared either by the United States or New York State authorities nor
         shall there have occurred any material outbreak or escalation of
         hostilities or other national or international calamity of such
         magnitude in its effect on, or any material adverse change in, any
         financial market which, in each case, in the reasonable judgment of
         each Purchaser, makes it impracticable or inadvisable to purchase the
         Shares at the Closing.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

         3.1 Representations and Warranties of the Company. Except as set forth
in the Disclosure Schedules delivered concurrently herewith and, other than with
respect to Sections

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3.1(g), 3.1(t), 3.1(w), 3.1(v), 3.1(z), 3.1(aa), 3.1(bb) and 3.1(cc), except as
set forth in the SEC Reports, the Company hereby makes the following
representations and warranties as of the date hereof and as of the Closing Date
to each Purchaser:

                  (a) Subsidiaries. Schedule 3.1(a) sets forth all of the
         Company's direct and indirect subsidiaries. The Company owns, directly
         or indirectly, all of the capital stock or other equity interests of
         each Subsidiary free and clear of any Liens, and all the issued and
         outstanding shares of capital stock of each Subsidiary are validly
         issued and are fully paid, non-assessable and free of preemptive and
         similar rights. If the Company has no subsidiaries, then references in
         the Transaction Documents to the Subsidiaries will be disregarded.

                  (b) Organization and Qualification. Each of the Company and
         the Subsidiaries is an entity duly incorporated or otherwise organized,
         validly existing and in good standing under the laws of the
         jurisdiction of its incorporation or organization (as applicable), with
         the requisite power and authority to own and use its properties and
         assets and to carry on its business as currently conducted. Neither the
         Company nor any Subsidiary is in violation of any of the provisions of
         its respective certificate or articles of incorporation, bylaws or
         other organizational or charter documents. Each of the Company and the
         Subsidiaries is duly qualified to conduct business and is in good
         standing as a foreign corporation or other entity in each jurisdiction
         in which the nature of the business conducted or property owned by it
         makes such qualification necessary, except where the failure to be so
         qualified or in good standing, as the case may be, could not have or
         reasonably be expected to result in (i) a material adverse effect on
         the legality, validity or enforceability of any Transaction Document,
         (ii) a material adverse effect on the results of operations, assets,
         business or financial condition of the Company and the Subsidiaries,
         taken as a whole, or (iii) a material adverse effect on the Company's
         ability to perform in any material respect on a timely basis its
         obligations under any Transaction Document (any of (i), (ii) or (iii),
         a "Material Adverse Effect").

                  (c) Authorization; Enforcement. The Company has the requisite
         corporate power and authority to enter into and to consummate the
         transactions contemplated by each of the Transaction Documents and
         otherwise to carry out its obligations thereunder. The execution and
         delivery of each of the Transaction Documents by the Company and the
         consummation by it of the transactions contemplated thereby have been
         duly authorized by all necessary action on the part of the Company and
         no further action is required by the Company in connection therewith
         other than in connection with the Required Approvals. Each Transaction
         Document has been (or upon delivery will have been) duly executed by
         the Company and, when delivered in accordance with the terms hereof,
         will constitute the valid and binding obligation of the Company
         enforceable against the Company in accordance with its terms except (i)
         as limited by applicable bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and other laws of general application
         affecting enforcement of creditors' rights generally and (ii) as
         limited by laws relating to the availability of specific performance,
         injunctive relief or other equitable remedies.

                  (d) No Conflicts. The execution, delivery and performance of
         the Transaction Documents by the Company and the consummation by the
         Company of the transactions

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         contemplated thereby do not and will not (i) conflict with or violate
         any provision of the Company's or any Subsidiary's certificate or
         articles of incorporation, bylaws or other organizational or charter
         documents, or (ii) conflict with, or constitute a default (or an event
         that with notice or lapse of time or both would become a default)
         under, or give to others any rights of termination, amendment,
         acceleration or cancellation (with or without notice, lapse of time or
         both) of, any agreement, credit facility, debt or other instrument
         (evidencing a Company or Subsidiary debt or otherwise) or other
         understanding to which the Company or any Subsidiary is a party or by
         which any property or asset of the Company or any Subsidiary is bound
         or affected, except to the extent that such conflict, default or right
         is waived in writing, or (iii) subject to the Required Approvals,
         result in a violation of any law, rule, regulation, order, judgment,
         injunction, decree or other restriction of any court or governmental
         authority to which the Company or a Subsidiary is subject (including
         federal and state securities laws and regulations), or by which any
         property or asset of the Company or a Subsidiary is bound or affected;
         except in the case of each of clauses (ii) and (iii), such as would not
         have or reasonably be expected to result in a Material Adverse Effect.

                  (e) Filings, Consents and Approvals. The Company is not
         required to obtain any consent, waiver, authorization or order of, give
         any notice to, or make any filing or registration with, any court or
         other federal, state, local or other governmental authority or other
         Person in connection with the execution, delivery and performance by
         the Company of the Transaction Documents, other than (i) filings
         required pursuant to Section 4.4 of this Agreement, (ii) the filing
         with the Commission of the Registration Statement, (iii) the notice
         and/or application(s) to each applicable Trading Market for the listing
         of the Shares and Warrant Shares for trading thereon in the time and
         manner required thereby, and (iv) the filing of Form D with the
         Commission and such filings as are required to be made under applicable
         state securities laws (collectively the "Required Approvals").

                  (f) Issuance of the Securities. The Shares and Warrants are
         duly authorized and, when issued and paid for in accordance with the
         Transaction Documents, will be duly and validly issued, fully paid and
         nonassessable, free and clear of all Liens imposed by the Company other
         than restrictions on transfer provided for in the Transaction
         Documents. The Warrant Shares, when issued in accordance with the terms
         of the Transaction Documents, will be validly issued, fully paid and
         nonassessable, free and clear of all Liens imposed by the Company. The
         Company has reserved from its duly authorized capital stock the maximum
         number of shares of Common Stock issuable pursuant to this Agreement
         and the Warrants.

                  (g) Capitalization. The capitalization of the Company is as
         described in the Company's most recent periodic report filed with the
         Commission. The Company has not issued any capital stock since such
         filing other than pursuant to the exercise of employee stock options
         under the Company's stock option plans, the issuance of shares of
         Common Stock to employees pursuant to the Company's employee stock
         purchase plan and pursuant to the conversion or exercise of outstanding
         Common Stock Equivalents. No Person has any right of first refusal,
         preemptive right, right of participation, or any similar right to
         participate in the transactions contemplated by the Transaction
         Documents. Except as a result of the purchase and sale of the
         Securities,

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         there are no outstanding options, warrants, script rights to subscribe
         to, calls or commitments of any character whatsoever relating to, or
         securities, rights or obligations convertible into or exchangeable for,
         or giving any Person any right to subscribe for or acquire, any shares
         of Common Stock, or contracts, commitments, understandings or
         arrangements by which the Company or any Subsidiary is or may become
         bound to issue additional shares of Common Stock, or securities or
         rights convertible or exchangeable into shares of Common Stock. The
         issue and sale of the Securities will not obligate the Company to issue
         shares of Common Stock or other securities to any Person (other than
         the Purchasers) and will not result in a right of any holder of Company
         securities to adjust the exercise, conversion, exchange or reset price
         under such securities. All of the outstanding shares of capital stock
         of the Company are validly issued, fully paid and nonassessable, have
         been issued in compliance with all federal and state securities laws,
         and none of such outstanding shares was issued in violation of any
         preemptive rights or similar rights to subscribe for or purchase
         securities. No further approval or authorization of any stockholder,
         the Board of Directors of the Company or others is required for the
         issuance and sale of the Shares. Except as disclosed in the SEC
         Reports, there are no stockholders agreements, voting agreements or
         other similar agreements with respect to the Company's capital stock to
         which the Company is a party or, to the knowledge of the Company,
         between or among any of the Company's stockholders.

                  (h) SEC Reports; Financial Statements. The Company has filed
         all reports required to be filed by it under the Securities Act and the
         Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for
         the two years preceding the date hereof (or such shorter period as the
         Company was required by law to file such material) (the foregoing
         materials, including the exhibits thereto, being collectively referred
         to herein as the "SEC Reports") on a timely basis or has received a
         valid extension of such time of filing and has filed any such SEC
         Reports prior to the expiration of any such extension. As of their
         respective dates, the SEC Reports complied in all material respects
         with the requirements of the Securities Act and the Exchange Act and
         the rules and regulations of the Commission promulgated thereunder, and
         none of the SEC Reports, when filed, contained any untrue statement of
         a material fact or omitted to state a material fact required to be
         stated therein or necessary in order to make the statements therein, in
         light of the circumstances under which they were made, not misleading.
         The financial statements of the Company included in the SEC Reports
         comply in all material respects with applicable accounting requirements
         and the rules and regulations of the Commission with respect thereto as
         in effect at the time of filing. Such financial statements have been
         prepared in accordance with generally accepted accounting principles
         applied on a consistent basis during the periods involved ("GAAP"),
         except as may be otherwise specified in such financial statements or
         the notes thereto and except that unaudited financial statements may
         not contain all footnotes required by GAAP, and fairly present in all
         material respects the financial position of the Company and its
         consolidated subsidiaries as of and for the dates thereof and the
         results of operations and cash flows for the periods then ended,
         subject, in the case of unaudited statements, to normal, immaterial,
         year-end audit adjustments and provided that such unaudited statements
         may not include footnotes otherwise required by GAAP.

                  (i) Material Changes. Since the date of the latest audited
         financial statements included within the SEC Reports, except as
         disclosed in the SEC Reports, (i) there has

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         been no event, occurrence or development that has had or that could
         reasonably be expected to result in a Material Adverse Effect, (ii) the
         Company has not incurred any liabilities (contingent or otherwise)
         other than (A) trade payables and accrued expenses incurred in the
         ordinary course of business consistent with past practice and (B)
         liabilities not required to be reflected in the Company's financial
         statements pursuant to GAAP or required to be disclosed in filings made
         with the Commission, (iii) the Company has not altered its method of
         accounting, (iv) the Company has not declared or made any dividend or
         distribution of cash or other property to its stockholders or
         purchased, redeemed or made any agreements to purchase or redeem any
         shares of its capital stock and (v) the Company has not issued any
         equity securities to any officer, director or Affiliate, except
         pursuant to existing Company stock option plans. The Company does not
         have pending before the Commission any request for confidential
         treatment of information.

                  (j) Litigation. There is no action, suit, proceeding or
         investigation pending or, to the knowledge of the Company, threatened
         against the Company, any Subsidiary or any of their respective
         properties before or by any court, arbitrator, governmental or
         administrative agency or regulatory authority (federal, state, county,
         local or foreign) (collectively, an "Action") which (i) adversely
         affects or challenges the legality, validity or enforceability of any
         of the Transaction Documents or the Securities or (ii) could, if there
         were an unfavorable decision, have or reasonably be expected to result
         in a Material Adverse Effect. Neither the Company nor any Subsidiary,
         nor, to the Company's knowledge, any director or officer thereof,
         acting in his capacity as such, is or has been the subject of any
         Action involving a claim of violation of or liability under federal or
         state securities laws or a claim of breach of fiduciary duty that is
         required to be disclosed in the Company's filings with the SEC pursuant
         to Regulation S-K. There has not been, and to the knowledge of the
         Company, there is not pending or contemplated, any investigation by the
         Commission involving the Company or any current or former director or
         officer of the Company. The Commission has not issued any stop order or
         other order suspending the effectiveness of any registration statement
         filed by the Company or any Subsidiary under the Exchange Act or the
         Securities Act.

                  (k) Labor Relations. No material labor dispute exists or, to
         the knowledge of the Company, is imminent with respect to any of the
         employees of the Company which could reasonably be expected to result
         in a Material Adverse Effect.

                  (l) Compliance. Neither the Company nor any Subsidiary (i) is
         in default under or in violation of (and no event has occurred that has
         not been waived that, with notice or lapse of time or both, would
         result in a default by the Company or any Subsidiary under), nor has
         the Company or any Subsidiary received notice of a claim that it is in
         default under or that it is in violation of, any indenture, loan or
         credit agreement or any other agreement or instrument to which it is a
         party or by which it or any of its properties is bound (whether or not
         such default or violation has been waived), (ii) is in violation of any
         order of any court, arbitrator or governmental body, or (iii) is or has
         been in violation of any statute, rule or regulation of any
         governmental authority, including without limitation all foreign,
         federal, state and local laws applicable to its business except in each
         case as could not have a Material Adverse Effect.

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                  (m) Regulatory Permits. The Company and the Subsidiaries
         possess all certificates, authorizations and permits issued by the
         appropriate federal, state, local or foreign regulatory authorities
         necessary to conduct their respective businesses as described in the
         SEC Reports, except where the failure to possess such permits would not
         reasonably be expected to result in a Material Adverse Effect
         ("Material Permits"), and neither the Company nor any Subsidiary has
         received any notice of proceedings relating to the revocation or
         modification of any Material Permit.

                  (n) Title to Assets. The Company and the Subsidiaries have
         good and marketable title in fee simple to all real property owned by
         them that is material to the business of the Company and the
         Subsidiaries and good and marketable title in all personal property
         owned by them that is material to the business of the Company and the
         Subsidiaries, in each case free and clear of all Liens, except for
         Liens as do not materially affect the value of such property and do not
         materially interfere with the use made and proposed to be made of such
         property by the Company and the Subsidiaries and Liens for the payment
         of federal, state or other taxes, the payment of which is neither
         delinquent nor subject to penalties. Any real property and facilities
         held under lease by the Company and the Subsidiaries are held by them
         under valid, subsisting and enforceable leases of which the Company and
         the Subsidiaries are in compliance, except where the failure to be in
         compliance would not, individually or in the aggregate, reasonably be
         expected to result in a Material Adverse Effect.

                  (o) Patents and Trademarks. To the knowledge of the Company
         and each Subsidiary, the Company and the Subsidiaries have, or have
         rights to use, all patents, patent applications, trademarks, trademark
         applications, service marks, trade names, copyrights, licenses and
         other similar rights that are necessary or material for use in
         connection with their respective businesses as described in the SEC
         Reports and which the failure to so have could have or reasonably be
         expected to result in a Material Adverse Effect (collectively, the
         "Intellectual Property Rights"). Neither the Company nor any Subsidiary
         has received a written notice that the Intellectual Property Rights
         used by the Company or any Subsidiary violates or infringes upon the
         rights of any Person, except to the extent that the Company reasonably
         believes that such alleged violation or infringement can be resolved
         without having a Material Adverse Effect. To the knowledge of the
         Company, all such Intellectual Property Rights are enforceable.

                  (p) Insurance. The Company and the Subsidiaries are insured by
         insurers of recognized financial responsibility against such losses and
         risks and in such amounts as are prudent and customary in the
         businesses in which the Company and the Subsidiaries are engaged.
         Neither the Company nor any Subsidiary has any reason to believe that
         it will not be able to renew its existing insurance coverage as and
         when such coverage expires or to obtain similar coverage from similar
         insurers as may be necessary to continue its business without a
         significant increase in cost.

                  (q) Transactions With Affiliates and Employees. Except as set
         forth in the SEC Reports, none of the officers or directors of the
         Company and, to the knowledge of the Company, none of the employees of
         the Company is presently a party to any transaction with the Company or
         any Subsidiary (other than for services as employees, officers and
         directors), including any contract, agreement or other arrangement
         providing

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         for the furnishing of services to or by, providing for rental of real
         or personal property to or from, or otherwise requiring payments to or
         from any officer, director or such employee or, to the knowledge of the
         Company, any entity in which any officer, director, or any such
         employee has a substantial interest or is an officer, director, trustee
         or partner, in each case in excess of $60,000 other than (i) for
         payment of salary or consulting fees for services rendered, (ii)
         reimbursement for expenses incurred on behalf of the Company and (iii)
         for other employee benefits, including stock option agreements under
         any stock option plan of the Company.

                  (r) Sarbanes-Oxley; Internal Accounting Controls. The Company
         is in material compliance with all provisions of the Sarbanes-Oxley Act
         of 2002 which are applicable to it as of the Closing Date. The Company
         and the Subsidiaries maintain a system of internal accounting controls
         sufficient to provide reasonable assurance that (i) transactions are
         executed in accordance with management's general or specific
         authorizations, (ii) transactions are recorded as necessary to permit
         preparation of financial statements in conformity with GAAP and to
         maintain asset accountability, (iii) access to assets is permitted only
         in accordance with management's general or specific authorization, and
         (iv) the recorded accountability for assets is compared with the
         existing assets at reasonable intervals and appropriate action is taken
         with respect to any differences. The Company has established disclosure
         controls and procedures (as defined in Exchange Act Rules 13 and 15)
         for the Company and designed such disclosure controls and procedures to
         ensure that material information relating to the Company, including its
         subsidiaries, is made known to the certifying officers by others within
         those entities, particularly during the period in which the Company's
         most recently filed periodic report under the Exchange Act, as the case
         may be, is being prepared. The Company's certifying officers have
         evaluated the effectiveness of the Company's controls and procedures as
         of a date within 90 days prior to the filing date of the most recently
         filed periodic report under the Exchange Act (such date, the
         "Evaluation Date"). The Company presented in its most recently filed
         periodic report under the Exchange Act the conclusions of the
         certifying officers about the effectiveness of the disclosure controls
         and procedures based on their evaluations as of the Evaluation Date.
         Since the Evaluation Date, there have been no significant changes in
         the Company's internal controls (as such term is defined in Item 307(b)
         of Regulation S-K under the Exchange Act).

                  (s) Certain Fees. Except as set forth on the Disclosure
         Schedule, no brokerage or finder's fees or commissions are or will be
         payable by the Company to any broker, financial advisor or consultant,
         finder, placement agent, investment banker, bank or other Person with
         respect to the transactions contemplated by this Agreement. The
         Purchasers shall have no obligation with respect to any fees or with
         respect to any claims made by or on behalf of other Persons for fees of
         a type contemplated in this Section that may be due in connection with
         the transactions contemplated by this Agreement.

                  (t) Private Placement. Assuming the accuracy of the Purchasers
         representations and warranties set forth in Section 3.2, no
         registration under the Securities Act is required for the offer and
         sale of the Securities by the Company to the Purchasers as contemplated
         hereby in accordance with the terms of the Transaction Documents. The

                                       11
<PAGE>

         issuance and sale of the Securities hereunder does not contravene the
         rules and regulations of the Trading Market.

                  (u) Investment Company. The Company is not, and is not an
         Affiliate of, an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended.

                  (v) Registration Rights. Except as set forth on the disclosure
         schedule to the Registration Rights Agreement, no Person has any right
         to cause the Company to effect the registration under the Securities
         Act of any securities of the Company that have not been satisfied.

                  (w) Listing and Maintenance Requirements. The Company's Common
         Stock is registered pursuant to Section 12(b) of the Exchange Act, and
         the Company has taken no action designed to, or which to its knowledge
         is likely to have the effect of, terminating the registration of the
         Common Stock under the Exchange Act nor has the Company received any
         notification that the Commission is contemplating terminating such
         registration. The Company has not, in the 12 months preceding the date
         hereof, received notice from any Trading Market on which the Common
         Stock is or has been listed or quoted to the effect that the Company is
         not in compliance with the listing or maintenance requirements of such
         Trading Market. The Company is, and has no reason to believe that it
         will not in the foreseeable future continue to be, in compliance with
         all such listing and maintenance requirements.

                  (x) Tax Status. The Company and each of its Subsidiaries has
         made or filed all federal, state and foreign income and all other tax
         returns, reports and declarations required by any jurisdiction to which
         it is subject and which are due (unless and only to the extent that the
         Company and each of its Subsidiaries has set aside on its books
         provisions reasonably adequate for the payment of all unpaid and
         unreported taxes or has obtained an extension of the deadline for such
         filing) and has paid all taxes and other governmental assessments and
         charges that are material in amount, shown or determined to be due on
         such returns, reports and declarations, except those being contested in
         good faith and has set aside on its books provisions reasonably
         adequate for the payment of all taxes for periods subsequent to the
         periods to which such returns, reports or declarations apply. To the
         Company's knowledge, there are no unpaid taxes in any material amount
         claimed to be due by the taxing authority of any jurisdiction, and the
         officers of the Company know of no basis for any such claim. The
         Company has not executed a waiver with respect to the statute of
         limitations relating to the assessment or collection of any foreign,
         federal, statue or local tax. To the Company's knowledge, none of the
         Company's tax returns is presently being audited by any taxing
         authority.

                  (y) Disclosure. The Company confirms that, neither the Company
         nor any other Person acting on its behalf has provided any of the
         Purchasers or their agents or counsel with any information that
         constitutes or might constitute material, non-public information. The
         Company understands and confirms that the Purchasers will rely on the
         foregoing representations and covenants in effecting transactions in
         securities of the Company. All disclosure provided to the Purchasers
         regarding the Company, its business and the transactions contemplated
         hereby, including the Disclosure Schedules to this

                                       12
<PAGE>

         Agreement, furnished by or on behalf of the Company are true and
         correct and do not contain any untrue statement of a material fact or
         omit to state any material fact necessary in order to make the
         statements made therein, in light of the circumstances under which they
         were made, not misleading.

                  (z) No Integrated Offering. Assuming the accuracy of the
         Purchasers' representations and warranties set forth in Section 3.2,
         neither the Company, nor any of its affiliates, nor any Person acting
         on its or their behalf has, directly or indirectly, made any offers or
         sales of any security or solicited any offers to buy any security,
         under circumstances that would cause this offering of the Securities to
         be integrated with prior offerings by the Company for purposes of the
         Securities Act or any applicable shareholder approval provisions,
         including, without limitation, under the rules and regulations of any
         exchange or automated quotation system on which any of the securities
         of the Company are listed or designated.

                  (aa) Solvency. Based on the financial condition of the Company
         as of the Closing Date after giving effect to the receipt by the
         Company of the proceeds from the sale of the Securities hereunder, (i)
         the Company's fair saleable value of its assets exceeds the amount that
         will be required to be paid on or in respect of the Company's existing
         debts and other liabilities (including known contingent liabilities) as
         they mature; (ii) the Company's assets do not constitute unreasonably
         small capital to carry on its business for the current fiscal year as
         now conducted and as proposed to be conducted including its capital
         needs taking into account the particular capital requirements of the
         business conducted by the Company, and projected capital requirements
         and capital availability thereof; and (iii) the current cash flow of
         the Company, together with the proceeds the Company would receive, were
         it to liquidate all of its assets, after taking into account all
         anticipated uses of the cash, would be sufficient to pay all amounts on
         or in respect of its debt when such amounts are required to be paid.
         The Company does not intend to incur debts beyond its ability to pay
         such debts as they mature (taking into account the timing and amounts
         of cash to be payable on or in respect of its debt).

                  (bb) Form S-3 Eligibility. The Company is eligible to register
         the resale of its Common Stock by the Purchasers under Form S-3
         promulgated under the Securities Act.

                  (cc) No Disagreements with Accountants and Lawyers. There are
         no disagreements of any kind presently existing, or reasonably
         anticipated by the Company to arise, between the accountants and
         lawyers formerly or presently employed by the Company and the Company
         is current with respect to any fees owed to its accountants and
         lawyers.

                  (dd) General Solicitation. Neither the Company nor any person
         acting on behalf of the Company has offered or sold any of the Shares
         by any form of general solicitation or general advertising. The Company
         has offered the Shares for sale only to the Purchasers and certain
         other "accredited investors" within the meaning of Rule 501 under the
         Securities Act.

                  (ee) Foreign Corrupt Practices. Neither the Company, nor to
         the knowledge of the Company, any agent or other person acting on
         behalf of the Company, has (i) directly or indirectly, used any corrupt
         funds for unlawful contributions, gifts, entertainment or

                                       13
<PAGE>

         other unlawful expenses related to foreign or domestic political
         activity, (ii) made any unlawful payment to foreign or domestic
         government officials or employees or to any foreign or domestic
         political parties or campaigns from corporate funds, (iii) failed to
         disclose fully any contribution made by the Company (or made by any
         person acting on its behalf of which the Company is aware) which is in
         violation of law, or (iv) violated in any material respect any
         provision of the Foreign Corrupt Practices Act of 1977, as amended.

                  (ff) Acknowledgment Regarding Purchasers' Purchase of Shares.
         The Company acknowledges and agrees that each of the Purchasers is
         acting solely in the capacity of an arm's length purchaser with respect
         to the Transaction Documents and the transactions contemplated hereby.
         The Company further acknowledges that no Purchaser is acting as a
         financial advisor or fiduciary of the Company (or in any similar
         capacity) with respect to this Agreement and the transactions
         contemplated hereby and any advice given by any Purchaser or any of
         their respective representatives or agents in connection with this
         Agreement and the transactions contemplated hereby is merely incidental
         to the Purchasers' purchase of the Shares. The Company further
         represents to each Purchaser that the Company's decision to enter into
         this Agreement has been based solely on the independent evaluation of
         the transactions contemplated hereby by the Company and its
         representatives.

         3.2 Representations and Warranties of the Purchasers. Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the
date hereof and as of the Closing Date to the Company as follows:

                  (a) Organization; Authority. Such Purchaser is an entity duly
         organized, validly existing and in good standing under the laws of the
         jurisdiction of its organization with full right, corporate or
         partnership power and authority to enter into and to consummate the
         transactions contemplated by the Transaction Documents and otherwise to
         carry out its obligations thereunder. The execution, delivery and
         performance by such Purchaser of the transactions contemplated by this
         Agreement have been duly authorized by all necessary corporate action
         on the part of such Purchaser. Each Transaction Document to which it is
         party has been duly executed by such Purchaser, and when delivered by
         such Purchaser in accordance with the terms hereof, will constitute the
         valid and legally binding obligation of such Purchaser, enforceable
         against it in accordance with its terms except (i) as limited by
         general equitable principles and applicable bankruptcy, insolvency,
         reorganization, moratorium and other laws of general application
         affecting enforcement of creditors' rights generally, (ii) as limited
         by laws relating to the availability of specific performance,
         injunctive relief or other equitable remedies and (iii) insofar as
         indemnification and contribution provisions may be limited by
         applicable law.

                  (b) Investment Intent. Such Purchaser understands that the
         Securities are "restricted securities" and have not been registered
         under the Securities Act or any applicable state securities law and is
         acquiring the Securities as principal for its own account for
         investment purposes only and not with a view to or for distributing or
         reselling such Securities or any part thereof, has no present intention
         of distributing any of such Securities and has no arrangement or
         understanding with any other persons regarding the distribution of such
         Securities (this representation and warranty not limiting

                                       14
<PAGE>

         such Purchaser's right to sell the Securities pursuant to the
         Registration Statement or otherwise in compliance with applicable
         federal and state securities laws). Such Purchaser is acquiring the
         Securities hereunder in the ordinary course of its business. Such
         Purchaser does not have any agreement or understanding, directly or
         indirectly, with any Person to distribute any of the Securities.

                  (c) Purchaser Status. At the time such Purchaser was offered
         the Securities, it was, and at the date hereof it is, and on each date
         on which it exercises any Warrants, it will be either: (i) an
         "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3),
         (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified
         institutional buyer" as defined in Rule 144A(a) under the Securities
         Act. Such Purchaser is not required to be registered as a broker-dealer
         under Section 15 of the Exchange Act.

                  (d) Experience of Such Purchaser. Such Purchaser, either alone
         or together with its representatives, has such knowledge,
         sophistication and experience in business and financial matters so as
         to be capable of evaluating the merits and risks of the prospective
         investment in the Securities, and has so evaluated the merits and risks
         of such investment. Such Purchaser is able to bear the economic risk of
         an investment in the Securities and, at the present time, is able to
         afford a complete loss of such investment.

                  (e) General Solicitation. Such Purchaser is not purchasing the
         Securities as a result of any advertisement, article, notice or other
         communication regarding the Securities published in any newspaper,
         magazine or similar media or broadcast over television or radio or
         presented at any seminar or any other general solicitation or general
         advertisement.

                  (f) Residence. If such Purchaser is an individual, then such
         Purchaser resides in the state or province identified in the address of
         such Purchaser set forth on the signature page hereto; if such
         Purchaser is a partnership, corporation, limited liability company or
         other entity, then the office or offices of such Purchaser in which its
         investment decision was made is located at the address or addresses of
         such Purchaser set forth on the signature page hereto.

                  (g) Rule 144. Subject to Section 4.1(a), such Purchaser
         acknowledges and agrees that the Securities are "restricted securities"
         as defined in Rule 144 promulgated under the Securities Act as in
         effect from time to time and must be held indefinitely unless they are
         subsequently registered under the Securities Act or an exemption from
         such registration is available. Such Purchaser has been advised or is
         aware of the provisions of Rule 144, which permits limited resale of
         shares purchased in a private placement subject to the satisfaction of
         certain conditions, including, among other things: the availability of
         certain current public information about the Company, the resale
         occurring following the required holding period under Rule 144 and the
         number of shares being sold during any three-month period not exceeding
         specified limitations.

                  (k) Company Information. Such Purchaser has read the SEC
         Reports and has had an opportunity to discuss the Company's business,
         management and financial affairs with directors, officers and
         management of the Company and has had the opportunity to review the
         Company's operations and facilities. Such Purchaser has also had the

                                       15
<PAGE>

         opportunity to ask questions of and receive answers from, the Company
         and its management regarding the terms and conditions of this
         investment.

         The Company acknowledges and agrees that each Purchaser does not make
or has not made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in this
Section 3.2.

                                  ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

         4.1 Transfer Restrictions. (a) The Securities may only be disposed of
in compliance with state and federal securities laws and, in the case of the
Warrants and the Warrant Shares, subject to the terms of the Warrants. In
connection with any transfer of Securities other than pursuant to an effective
registration statement or Rule 144, to the Company, to an Affiliate of a
Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the
Company may require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor, the form and substance of which opinion
and choice of counsel shall be reasonably satisfactory to the Company, to the
effect that such transfer does not require registration of such transferred
Securities under the Securities Act. As a condition of transfer, any such
transferee shall agree in writing to be bound by the terms of this Agreement and
shall have the rights of a Purchaser under this Agreement and the Registration
Rights Agreement.

                  (b) The Purchasers agree to the imprinting, so long as is
         required by this Section 4.1(b), of a legend on any of the Securities
         in the following form:

                  THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES
                  AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
                  STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
                  THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
                  AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
                  TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
                  ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
                  TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
                  THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
                  SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
                  THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
                  REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE
                  PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A
                  REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
                  INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN
                  RULE 501(a) UNDER THE SECURITIES ACT.

                  The Company acknowledges and agrees that a Purchaser may from
         time to time pledge pursuant to a bona fide margin agreement with a
         registered broker-dealer or grant a security interest in some or all of
         the Securities to a financial institution that is an

                                       16
<PAGE>

         "accredited investor" as defined in Rule 501(a) under the Securities
         Act and, if required under the terms of such arrangement, such
         Purchaser may transfer pledged or secured Securities to the pledgees or
         secured parties. Such a pledge or transfer would not be subject to
         approval of the Company and no legal opinion of legal counsel of the
         pledgee, secured party or pledgor shall be required in connection
         therewith. Further, no notice shall be required of such pledge. At the
         appropriate Purchaser's expense, the Company will execute and deliver
         such reasonable documentation as a pledgee or secured party of
         Securities may reasonably request in connection with a pledge or
         transfer of the Securities, including, if the Securities are subject to
         registration pursuant to the Registration Rights Agreement, the
         preparation and filing of any required prospectus supplement under Rule
         424(b)(3) under the Securities Act or other applicable provision of the
         Securities Act to appropriately amend the list of Selling Stockholders
         thereunder.

                  (c) Certificates evidencing the Shares and Warrant Shares
         shall not contain any legend (including the legend set forth in Section
         4.1(b)), (i) while a registration statement (including the Registration
         Statement) covering the resale of such security is effective under the
         Securities Act, or (ii) following any sale of such Shares or Warrant
         Shares pursuant to Rule 144, or (iii) if such Shares or Warrant Shares
         are eligible for sale under Rule 144(k), or (iv) if such legend is not
         required under applicable requirements of the Securities Act (including
         judicial interpretations and pronouncements issued by the Staff of the
         Commission). The Company shall cause its counsel to issue a legal
         opinion to the Company's transfer agent promptly after the Effective
         Date if required by the Company's transfer agent to effect the removal
         of the legend hereunder. If all or any portion of a Warrant is
         exercised at a time when there is an effective registration statement
         to cover the resale of the Warrant Shares, such Warrant Shares shall be
         issued free of all legends. The Company agrees that following the
         Effective Date relating to the Shares and Warrant Shares or at such
         time as such legend is no longer required under this Section 4.1(c), it
         will, no later than five Trading Days following the delivery by a
         Purchaser to the Company or, if the Company so directs, to the
         Company's transfer agent of a certificate representing Shares or
         Warrant Shares, as the case may be, issued with a restrictive legend
         (such date, the "Legend Removal Date"), deliver or cause to be
         delivered to such Purchaser a certificate representing such Securities
         that is free from all restrictive and other legends. The Company may
         not make any notation on its records or give instructions to any
         transfer agent of the Company that enlarge the restrictions on transfer
         set forth in this Section.

                  (d) In addition to such Purchaser's other available remedies,
         the Company shall pay to a Purchaser, in cash, as partial liquidated
         damages and not as a penalty, for each $1,000 of Shares or Warrant
         Shares (based on the VWAP of the Common Stock on the date such
         Securities are submitted to the Company's transfer agent) subject to
         Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day
         five (5) Trading Days after such damages have begun to accrue) for each
         Trading Day after such third Trading Day after the Legend Removal Date
         until such certificate is delivered. Nothing herein shall limit such
         Purchaser's right to pursue actual damages for the Company's failure to
         deliver certificates representing any Securities as required by the
         Transaction Documents, and such Purchaser shall have the right to
         pursue all remedies available to it at law or in equity including,
         without limitation, a decree of specific performance and/or injunctive
         relief.

                                       17
<PAGE>

                  (e) Each Purchaser, severally and not jointly with the other
         Purchasers, agrees that the removal of the restrictive legend from
         certificates representing Securities as set forth in this Section 4.1
         is predicated upon the Company's reliance that the Purchaser will sell
         any Securities pursuant to either the registration requirements of the
         Securities Act, including any applicable prospectus delivery
         requirements, or an exemption therefrom.

                  (f) Until the date that each Purchaser holds less than 20% of
         the Shares initially purchased hereunder by such Purchaser, the Company
         shall not undertake a reverse or forward stock split or
         reclassification of the Common Stock without the prior written consent
         of the Purchasers holding a majority in interest of the Shares.

         4.2 Furnishing of Information. As long as any Purchaser owns
Securities, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the
Exchange Act. As long as any Purchaser owns Securities, if the Company is not
required to file reports pursuant to such laws, it will prepare and furnish to
the Purchasers and make publicly available in accordance with Rule 144(c) such
information as is required for the Purchasers to sell the Securities under Rule
144. The Company further covenants that it will take such further action as any
holder of Securities may reasonably request, all to the extent required from
time to time to enable such Person to sell such Securities without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144.

         4.3 Integration. The Company shall not sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the Securities in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Purchasers or that would be
integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market such that it would require shareholder
approval prior to the closing of such other transaction unless shareholder
approval is obtained before the closing of such subsequent transaction.

         4.4 Securities Laws Disclosure; Publicity. The Company shall, within
one Trading Day following the Closing Date, issue a press release or file a
Current Report on Form 8-K, in each case reasonably acceptable to each Purchaser
disclosing the transactions contemplated hereby. The Company and each Purchaser
shall consult with each other in issuing any press releases with respect to the
transactions contemplated hereby, and neither the Company nor any Purchaser
shall issue any such press release or otherwise make any such public statement
without the prior consent of the Company, with respect to any press release of
any Purchaser, or without the prior consent of each Purchaser, with respect to
any press release of the Company, which consent shall not unreasonably be
withheld, except if such disclosure is required by law, in which case the
disclosing party shall promptly provide the other party with prior notice of
such public statement or communication. Notwithstanding the foregoing, the
Company shall not publicly disclose the name of any Purchaser, or include the
name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market, without the prior written consent of such Purchaser, except
(i) as required by federal securities law in connection with the registration
statement contemplated by the Registration Rights Agreement and (ii) to the
extent such disclosure is required by law or Trading Market regulations, in
which case the Company

                                       18
<PAGE>

shall provide the Purchasers with prior notice of such disclosure permitted
under subclause (i) or (ii).

         4.5 Shareholders Rights Plan. No claim will be made or enforced by the
Company or, to the knowledge of the Company, any other Person that any Purchaser
is an "Acquiring Person" under any shareholders rights plan or similar plan or
arrangement in effect or hereafter adopted by the Company, or that any Purchaser
could be deemed to trigger the provisions of any such plan or arrangement, by
virtue of receiving Securities under the Transaction Documents or under any
other agreement between the Company and the Purchasers. The Company shall
conduct its business in a manner so that it will not become subject to the
Investment Company Act.

         4.6 Non-Public Information. The Company covenants and agrees that
neither it nor any other Person acting on its behalf will provide any Purchaser
or its agents or counsel with any information that the Company believes
constitutes material non-public information, unless prior thereto such Purchaser
shall have executed a written agreement regarding the confidentiality and use of
such information. The Company understands and confirms that each Purchaser shall
be relying on the foregoing representations in effecting transactions in
securities of the Company.

         4.7 Use of Proceeds. Except as set forth on Schedule 4.7 attached
hereto, the Company shall use the net proceeds from the sale of the Securities
hereunder for working capital purposes and not for the satisfaction of any
portion of the Company's debt (other than payment of trade payables, in the
ordinary course of the Company's business and prior practices), to redeem any
Company equity or equity-equivalent securities or to settle any outstanding
litigation.

         4.8 Indemnification of Purchasers. Subject to the provisions of this
Section 4.8, the Company will indemnify and hold the Purchasers and their
directors, officers, shareholders, partners, employees and agents (each, a
"Purchaser Party") harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys' fees and
costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in
the other Transaction Documents or (b) any action instituted against a
Purchaser, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of such Purchaser, with respect to any of
the transactions contemplated by the Transaction Documents (unless such action
is based upon a breach of such Purchaser's representation, warranties or
covenants under the Transaction Documents or any agreements or understandings
such Purchaser may have with any such stockholder or any violations by the
Purchaser of state or federal securities laws or any conduct by such Purchaser
which constitutes fraud, gross negligence, willful misconduct or malfeasance).
If any action shall be brought against any Purchaser Party in respect of which
indemnity may be sought pursuant to this Agreement, such Purchaser Party shall
promptly notify the Company in writing, and the Company shall have the right to
assume the defense thereof with counsel of its own choosing. Any Purchaser Party
shall have the right to employ separate counsel in any such action and
participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Purchaser Party except to the extent that (i)
the employment thereof has been specifically authorized by the Company in
writing, (ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in

                                       19
<PAGE>

the reasonable opinion of such separate counsel, a material conflict on any
material issue between the position of the Company and the position of such
Purchaser Party. The Company will not be liable to any Purchaser Party under
this Agreement (i) for any settlement by an Purchaser Party effected without the
Company's prior written consent, which shall not be unreasonably withheld or
delayed; or (ii) to the extent, but only to the extent that a loss, claim,
damage or liability is attributable to any Purchaser Party's breach of any of
the representations, warranties, covenants or agreements made by the Purchasers
in this Agreement or in the other Transaction Documents.

         4.9 Reservation of Common Stock. As of the date hereof, the Company has
reserved and the Company shall continue to reserve and keep available at all
times, free of preemptive rights, a sufficient number of shares of Common Stock
for the purpose of enabling the Company to issue Shares pursuant to this
Agreement and Warrant Shares pursuant to any exercise of the Warrants.

         4.10 Listing of Common Stock. The Company hereby agrees to use
commercially reasonably efforts to maintain the listing of the Common Stock on
the Trading Market, and as soon as reasonably practicable following the Closing
(but not later than the earlier of the Effective Date and the first anniversary
of the Closing Date) to list all of the Shares and Warrant Shares on the Trading
Market. The Company further agrees, if the Company applies to have the Common
Stock traded on any other Trading Market, it will include in such application
all of the Shares and Warrant Shares, and will take such other action as is
necessary to cause the Shares and Warrant Shares to be listed on such other
Trading Market as promptly as possible. The Company will take all action
reasonably necessary to continue the listing and trading of its Common Stock on
a Trading Market and will comply in all respects with the Company's reporting,
filing and other obligations under the bylaws or rules of the Trading Market.

         4.11 Equal Treatment of Purchasers. No consideration shall be offered
or paid to any person to amend or consent to a waiver or modification of any
provision of any of the Transaction Documents unless the same consideration is
also offered to all of the parties to the Transaction Documents. For
clarification purposes, this provision constitutes a separate right granted to
each Purchaser by the Company and negotiated separately by each Purchaser, and
is intended to treat for the Company the Purchasers as a class and shall not in
any way be construed as the Purchasers acting in concert or as a group with
respect to the purchase, disposition or voting of Securities or otherwise.

         4.12 Deliver of Securities After Closing. The Company shall deliver, or
cause to be delivered, the respective Shares and Warrants purchased by each
Purchaser to such Purchaser within 3 Trading Days of the Closing Date.

         4.13 No Net Short Position. Each Purchaser agrees, severally and not
jointly with any other Purchasers, that they or any Person acting at the request
or direction of Purchaser, will not enter into any Short Sales (as hereinafter
defined) from the period commencing on the Closing Date and ending on the date
that such Purchaser no longer holds any Shares. For purposes of this Section
4.13, a "Short Sale" by any Purchaser shall mean a sale of Common Stock by such
Purchaser that is marked as a short sale and that is made at a time when there
is no equivalent offsetting long position in Common Stock held by such
Purchaser. For purposes of determining whether there is an equivalent offsetting
long position in Common Stock held by the Purchaser,

                                       20
<PAGE>

Warrant Shares that have not yet been exercised pursuant to the Warrants shall
be deemed to be held long by the Purchaser, and the amount of shares of Common
Stock held in a long position shall be all Shares and Warrant Shares (ignoring
any exercise limitations included therein) held by such Purchaser on such date,
plus any shares of Common Stock otherwise then held by such Purchaser.
Additionally, each Purchaser understands and acknowledges, severally and not
jointly with any other Purchaser, that the SEC currently takes the position that
coverage of short sales of shares of the Common Stock "against the box" prior to
the Effective Date of the Registration Statement with the Shares purchased
hereunder is a violation of Section 5 of the Securities Act, as set forth in
Item 65, Section 5 under Section A, of the Manual of Publicly Available
Telephone Interpretations, dated July 1997, compiled by the Office of Chief
Counsel, Division of Corporation Finance. Accordingly, each Purchaser hereby
agrees not to use any of the Shares to cover any short sales made prior to the
Effective Date.

                                   ARTICLE V.
                                 MISCELLANEOUS

         5.1 Fees and Expenses. Except as otherwise set forth in this Agreement,
each party shall pay the fees and expenses of its advisers, counsel, accountants
and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of
this Agreement. The Company shall pay all stamp and other taxes and duties
levied in connection with the sale of the Securities.

         5.2 Entire Agreement. The Transaction Documents, together with the
exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

         5.3 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
set forth on the signature pages attached hereto prior to 6:30 p.m. (New York
City time) on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto on a day that
is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading
Day, (c) the second Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service, or (d) upon actual receipt by
the party to whom such notice is required to be given. The address for such
notices and communications shall be as set forth on the signature pages attached
hereto.

         5.3 Amendments; Waivers. No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment,
by the Company and each Purchaser or, in the case of a waiver, by the party
against whom enforcement of any such waiver is sought. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of either party to exercise any right hereunder in
any manner impair the exercise of any such right.

                                       21
<PAGE>

         5.4 Construction. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

         5.5 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of each Purchaser. Any Purchaser may assign
any or all of its rights under this Agreement to any Person to whom such
Purchaser assigns or transfers any Securities, provided such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the
provisions hereof that apply to the "Purchasers".

         5.6 No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.8.

         5.7 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and
any other Transaction Documents (whether brought against a party hereto or its
respective affiliates, directors, officers, shareholders, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the
City of New York. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York,
New York for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with
respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is improper. Each party hereto
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by delivering a copy thereof
via overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. Each party hereto (including its
affiliates, agents, officers, directors and employees) hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to
trial by jury in any legal proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby. If either party shall
commence an action or proceeding to enforce any provisions of a Transaction
Document, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorneys' fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

         5.8 Survival. The representations and warranties contained herein shall
survive the earlier of (a) the second anniversary of the Closing Date and (b)
the date on which the Shares and

                                       22
<PAGE>

Warrant Shares are no longer outstanding. The agreements and covenants contained
herein shall survive, as to a Purchaser and unless otherwise set forth in the
Transaction Documents, until such Purchaser no longer holds any Securities.

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

         5.10 Severability. If any provision of this Agreement is held to be
invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

         5.11 Replacement of Securities. If any certificate or instrument
evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities.

         5.12 Remedies. In addition to being entitled to exercise all rights
provided herein or granted by law, including recovery of damages, each of the
Purchasers and the Company will be entitled to specific performance under the
Transaction Documents. The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agrees to waive in
any action for specific performance of any such obligation the defense that a
remedy at law would be adequate.

         5.13 Payment Set Aside. To the extent that the Company makes a payment
or payments to any Purchaser pursuant to any Transaction Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored
to the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

         5.14 Independent Nature of Purchasers' Obligations and Rights. The
obligations of each Purchaser under any Transaction Document are several and not
joint with the obligations of any other Purchaser, and no Purchaser shall be
responsible in any way for the performance of the

                                       23
<PAGE>

obligations of any other Purchaser under any Transaction Document. Nothing
contained herein or in any Transaction Document, and no action taken by any
Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the
Transaction Document. Each Purchaser shall be entitled to independently protect
and enforce its rights, including without limitation, the rights arising out of
this Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose. Each Purchaser has been represented by its own
separate legal counsel in their review and negotiation of the Transaction
Documents. For reasons of administrative convenience only, Purchasers and their
respective counsel have chosen to communicate with the Company through FW. FW
does not represent all of the Purchasers but only Rodman & Renshaw, Inc., who
acted as placement agent to the transaction. The Company has elected to provide
all Purchasers with the same terms and Transaction Documents for the convenience
of the Company and not because it was required or requested to do so by the
Purchasers.

                            (SIGNATURE PAGE FOLLOWS)

                                       24
<PAGE>

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

                                 MATRITECH, INC.

                                 By: /s/ Stephen D. Chubb
                                    -------------------------------------
                                 Name: Stephen D. Chubb
                                 Title: Chief Executive Officer

                                 Address for Notice:
                                 -------------------
                                 330 Nevada Street
                                 Newton, Massachusetts, 02460
                                 Attn: Stephen D. Chubb
                                 Tel: (617) 928-0820
                                 Fax: (617) 928-0821

With a copy to:                  Testa, Hurwitz & Thibeault, LLP
                                 125 High Street
                                 Boston, Massachusetts 02110
                                 Attn: Rufus C. King
                                 Tel: (617) 248-7000
                                 Fax:  (617) 248-7100

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                       25
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:            Alexandra Global Master Fund Ltd.
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Mikhail Filimonov
                                                       -------------------------

Name of Authorized Signatory:                  Mikhail Filimonov
                              --------------------------------------------------

Title of Authorized Signatory:  Chairman & CEO, Alexandra Investment Management,
                                                     LLC
                               -------------------------------------------------

Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investing Entity:     Alexandra Investment Management, LLC
                                                                767 Third Avenue
                                                                      39th Floor
                                                             New York, NY  10017

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 250,000
Shares:                              185,185
Warrant Shares:                       46,296
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                     Alpha Capital AG
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY:  /s/ Konrad Ackerman
                                                        ------------------------

Name of Authorized Signatory:                  Konrad Ackerman
                              --------------------------------------------------

Title of Authorized Signatory:                 Director
                               -------------------------------------------------

Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investing Entity:

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 300,000
Shares:                              222,222
Warrant Shares:                       55,556
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:       Basso Equity Opportunity Holding Fund Ltd.
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Howard Fischer
                                                       -------------------------

Name of Authorized Signatory:                    Howard Fischer
                              --------------------------------------------------

Title of Authorized Signatory:                 Authorized Signatory
                               -------------------------------------------------

Email Address of Authorized Entity:            mseidenberg@bassocap.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                        c/o Basso Capital
                                                           1266 East Main Street
                                                             Stamford, CT  06902

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 150,000
Shares:                              111,111
Warrant Shares:                       27,778
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:              Bristol Investment Fund, Ltd
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Paul Kessler
                                                       -------------------------

Name of Authorized Signatory:                  Paul Kessler
                              --------------------------------------------------
Title of Authorized Signatory:                   Director
                               -------------------------------------------------

Email Address of Authorized Entity:          pkessler@bristolcompanies.net
                                    --------------------------------------------

Address for Notice of Investing Entity:            Bristol Capital Advisors, LLC
                                                           6363 Sunset Boulevard
                                                                       5th Floor
                                                            Hollywood, CA  90028
                                                            Attn: Amy Wang, Esq.
                                                            Fax:  (323) 468-8307

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 400,000
Shares:                              296,296
Warrant Shares:                       74,074
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:         Close Finsbury Global Investment-
                                     Universal Life Sciences
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Huaizheng Peng
                                                       -------------------------

Name of Authorized Signatory:                    Huaizheng Peng
                              --------------------------------------------------

Title of Authorized Signatory:                   Fund Manager
                               -------------------------------------------------

Email Address of Authorized Entity:              hpeng@reatech.net
                                   ---------------------------------------------

Address for Notice of Investing Entity:   Close Finsbury Universal Life Sciences
                                                                   4 Crown Place
                                                       London, England  EC2A 4BT

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                  29,999.70
Shares:                                  22,222
Warrant Shares:                           5,556
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                Cranshire Capital, L.P.
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Mitch Kopin
                                                       -------------------------

Name of Authorized Signatory:                    Mitch Kopin
                              --------------------------------------------------

Title of Authorized Signatory:           President - Downsview Capital
                               -------------------------------------------------

Email Address of Authorized Entity:              cranshire@aol.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                          666 Dundee Road
                                                                      Suite 1901
                                                           Northbrook, IL  60062

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:             349,999.65
Shares:                             259,259
Warrant Shares:                      64,815
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:              Crestview Capital Master, LLC
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Robert Hoyt
                                                       -------------------------

Name of Authorized Signatory:                    Robert Hoyt
                              --------------------------------------------------

Title of Authorized Signatory:                  Managing Director
                               -------------------------------------------------

Email Address of Authorized Entity:            bob@crestviewcap.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                           5 Revere Drive
                                                                         Suite F
                                                           Northbrook, IL  60062

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 750,000
Shares:                              555,556
Warrant Shares:                      138,889
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:               Crescent International, Ltd.
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Mel Craw; Maxi Brezzi
                                                       -------------------------

Name of Authorized Signatory:                Mel Craw; Maxi Brezzi
                              --------------------------------------------------

Title of Authorized Signatory:               Authorized Signatory
                               -------------------------------------------------

Email Address of Authorized Entity:         info@greenlight.dmitrust.com
                                    --------------------------------------------

Address for Notice of Investing Entity:              GreenLight (Switzerland) SA
                                                             84, Av. Louis-Casai
                                                        CH 1216 COINTRIN, Geneva
                                                                     Switzerland

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 270,000
Shares:                              200,000
Warrant Shares:                       50,000
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:          DKR SoundShore Oasis Holding Fund Ltd
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Barbara Burger
                                                       -------------------------

Name of Authorized Signatory:                    Barbara Burger
                              --------------------------------------------------

Title of Authorized Signatory:                   Alternate Director
                               -------------------------------------------------

Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investing Entity:          DKR Oasis Management Company LP
                                                           1281 East Main Street
                                                             Stamford, CT  06902

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 100,000
Shares:                               74,074
Warrant Shares:                       18,519
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:               Elliott Associates, L.P.
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Elliot Greenberg
                                                       -------------------------

Name of Authorized Signatory:                    Elliot Greenberg
                              --------------------------------------------------

Title of Authorized Signatory:     Vice President, Braxton Associates, Inc.
                               -------------------------------------------------

Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investing Entity:             712 Fifth Avenue, 35th Floor
                                                             New York, NY  10019

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                      99,999.90
Shares:                                      74,074
Warrant Shares:                              18,519
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                Elliot International, L.P.
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Elliot Greenberg
                                                       -------------------------

Name of Authorized Signatory:                    Elliot Greenberg
                              --------------------------------------------------

Title of Authorized Signatory:     Vice President, Elliot International Capital
                                                 Advisors, Inc.
                               -------------------------------------------------

Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investing Entity:               c/o Elliot Management Corp
                                                    712 Fifth Avenue, 35th Floor
                                                              New York, NY 10019

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                   149,999.85
Shares:                                   111,111
Warrant Shares:                            27,778
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                   Fountainhead Fund
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY:  /s/ Anthony Postiglione
                                                        ------------------------

Name of Authorized Signatory:                    Anthony Postiglione
                              --------------------------------------------------

Title of Authorized Signatory:                   Managing Partner
                               -------------------------------------------------

Email Address of Authorized Entity:          Anthony@fountainheadfundlp.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                100 East Lancaster Avenue
                                                                       Suite 303
                                                                Wayne, PA  19087

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                   135,000.00
Shares:                                   100,000
Warrant Shares:                            25,000
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                   JIBS Equities, LP
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Bruce Thomas
                                                      --------------------------

Name of Authorized Signatory:                    Bruce Thomas
                              --------------------------------------------------

Title of Authorized Signatory:                Chief Financial Officer
                               -------------------------------------------------

Email Address of Authorized Entity:              bwt66@adelphia.net
                                    --------------------------------------------

Address for Notice of Investing Entity:                              P.O. Box 87
                                                            Line & Grove Streets
                                                            Nanticoke, PA  18634

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                      250,000
Shares:                                   185,185
Warrant Shares:                            46,296
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                 Langley Partners LP
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Jeffrey Thorp
                                                       -------------------------

Name of Authorized Signatory:                    Jeffrey Thorp
                              --------------------------------------------------

Title of Authorized Signatory:      Managing Member, Langley Capital, LLC
                               -------------------------------------------------

Email Address of Authorized Entity:              jt@lcap.com
                                    --------------------------------------------

Address for Notice of Investing Entity:            535 Madison Avenue, 7th Floor
                                                             New York, NY  10012

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                   337,500.00
Shares:                                   250,000
Warrant Shares:                            62,500
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                  Omicron Master Trust
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Bruce Bernstein
                                                       -------------------------

Name of Authorized Signatory:                    Bruce Bernstein
                              --------------------------------------------------

Title of Authorized Signatory:                   Managing Partner
                               -------------------------------------------------

Email Address of Authorized Entity:              bb@omicroncapital.com
                                    --------------------------------------------

Address for Notice of Investing Entity:             810 Seventh Avenue, 39th Fl.
                                                              New York, NY 10019
                                                             Tel. (212) 803-5263
                                                             Fax  (212) 803-5269
                                                               Attn:  Brian Daly

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:               1,200,000.15
Shares:                                 888,889
Warrant Shares:                         222,222
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                   OTAPE Investments LLC
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Robert M. Coyne
                                                       -------------------------

Name of Authorized Signatory:                 Robert M. Coyne
                              --------------------------------------------------

Title of Authorized Signatory:                 General Counsel
                               -------------------------------------------------

Email Address of Authorized Entity:              rick.berdon@ox.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                    OTAPE Investments LLC
                                                           1 Manhattanville Road
                                                             Purchase, NY  10577

Subscription Amount:                 135,000.00
Shares:                                 100,000
Warrant Shares:                          25,000
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:         Portside Growth and Opportunity Fund
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Jeff Solomon
                                                       -------------------------

Name of Authorized Signatory:                    Jeff Solomon
                              --------------------------------------------------

Title of Authorized Signatory:                   Managing Member
                               -------------------------------------------------

Email Address of Authorized Entity:              jsmith@ramius.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                 c/o Ramius Capital Group
                                                    666 Third Avenue, 26th Floor
                                                             New York, NY  10017

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 299,999.70
Shares:                                 222,222
Warrant Shares:                          55,556
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                  RHP Master Fund, Ltd
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY:      /s/ Keith Marlowe
                                                      --------------------------

Name of Authorized Signatory:                    Keith Marlowe
                             ---------------------------------------------------

Title of Authorized Signatory:         Director, RHP General Partner LLC
                               -------------------------------------------------
Email Address of Authorized Entity:           kmarlowe@rockhillfunds.com
                                    --------------------------------------------

Address for Notice of Investing Entity:   c/o Rock Hill Investment Management LP
                                                  3 Bala Plaza - East, Suite 585
                                                          Bala Cynwyd, PA  19004
                                                         Attn:  Legal Department

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 200,000.00
Shares:                                 148,148
Warrant Shares:                          37,037
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:             Spectra Capital Management, LLC
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Gregory I. Porges
                                                       -------------------------

Name of Authorized Signatory:                    Gregory I. Porges
                              --------------------------------------------------

Title of Authorized Signatory:                   Sole Member
                               -------------------------------------------------

Email Address of Authorized Entity:      iestepan@spectrafinancialgroup.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                 20 Broadway - 20th Floor
                                                              New York, NY 10271

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 250,000.00
Shares:                                 185,185
Warrant Shares:                          46,296
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                      SRG Capital, LLC
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Andrew J. Turchin
                                                       -------------------------

Name of Authorized Signatory:                Andrew J. Turchin
                              --------------------------------------------------

Title of Authorized Signatory:             Chief Financial Officer
                               -------------------------------------------------

Email Address of Authorized Entity:              Yoav@gerbercapital.com;
                                               aturchin@gerbercapital.com
                                    --------------------------------------------

Address for Notice of Investing Entity:                  20 Broadway, 40th Floor
                                                             New York, NY  10271

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                  75,000.60
Shares:                                  55,556
Warrant Shares:                          13,889
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                    Stonestreet, LP
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ M. Finkelstein
                                                       -------------------------

Name of Authorized Signatory:              Michael Finkelstein
                              --------------------------------------------------

Title of Authorized Signatory:                 President
                               -------------------------------------------------

Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investing Entity:

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 300,000.00
Shares:                                 222,222
Warrant Shares:                          55,556
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                    TCMP3 Partners
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Steven E. Slawson
                                                       -------------------------

Name of Authorized Signatory:                Steven E. Slawson
                              --------------------------------------------------

Title of Authorized Signatory:             Principal/General Partner
                               -------------------------------------------------

Email Address of Authorized Entity:              sslawson@titancap.org
                                    --------------------------------------------

Address for Notice of Investing Entity:             c/o Titan Capital Management
                                                      7 Century Drive, Suite 201
                                                           Parsippany, NJ  07054

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 150,000.00
Shares:                                 111,111
Warrant Shares:                          27,778
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                   Topaz Partners
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ David Muschel
                                                       -------------------------

Name of Authorized Signatory:                 David Muschel
                              --------------------------------------------------

Title of Authorized Signatory:                   Manager
                               -------------------------------------------------

Email Address of Authorized Entity:
                                    --------------------------------------------

Address for Notice of Investing Entity:                 c/o Jemmco Capital Corp.
                                                    900 Third Avenue, 11th Floor
                                                             New York, NY  10022

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                 250,000.00
Shares:                                 185,185
Warrant Shares:                          46,296
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                   Whalehaven Fund Limited
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Evan Schemenauer
                                                       -------------------------

Name of Authorized Signatory:                  Evan Schemenauer
                              --------------------------------------------------

Title of Authorized Signatory:                   Director
                               -------------------------------------------------

Email Address of Authorized Entity:        eschemananer@consolidated.com
                                    --------------------------------------------

Address for Notice of Investing Entity:          3rd Floor, 14 Par-La-Ville Road
                                                                  Hamilton, HM08
                                                                         Bermuda

Address for Delivery of Securities for Investing Entity (if not same as above):

                                                           Desjardins Securities
                                                                      Suite 2750
                                                              145 King Street W.
                                                                 Toronto, ON M5H
                                                                          Canada

Subscription Amount:                 100,000.00
Shares:                                  74,074
Warrant Shares:                          18,519
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26
<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this MZT Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Investing Entity:                     Zachary Prensky
                          ------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Zachary Prensky
                                                       -------------------------

Name of Authorized Signatory:                Zachary Prensky
                              --------------------------------------------------

Title of Authorized Signatory:                   Self
                               -------------------------------------------------

Email Address of Authorized Entity:              zach@littlebear.us
                                    --------------------------------------------

Address for Notice of Investing Entity:          c/o Little Bear Investments LLC
                                                        11 Penn Place, 5th Floor
                                                              New York, NY 10001

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount:                  27,000.00
Shares:                                  20,000
Warrant Shares:                           5,000
EIN Number:  [WE SUGGEST YOU PROVIDE THIS UNDER SEPARATE COVER]

                                       26EXHIBIT 4.2
                                                                     -----------

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of March 19, 2004, among Matritech, Inc., a Delaware corporation
(the "Company"), and the purchasers signatory hereto (each such purchaser is a
"Purchaser" and all such purchasers are, collectively, the "Purchasers").

         This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof among the Company and the Purchasers (the "Purchase
Agreement").

         The Company and the Purchasers hereby agree as follows:

     1. Definitions

         CAPITALIZED TERMS USED AND NOT OTHERWISE DEFINED HEREIN THAT ARE
DEFINED IN THE PURCHASE AGREEMENT SHALL HAVE THE MEANINGS GIVEN SUCH TERMS IN
THE PURCHASE AGREEMENT. As used in this Agreement, the following terms shall
have the following meanings:

                  "Effectiveness Date" means, with respect to the Registration
         Statement registering for resale the Registrable Securities, the 60th
         calendar day following the Closing Date; provided, however, in the
         event that the Company is notified by the Commission that one of the
         above Registration Statements will not be reviewed or is no longer
         subject to further review and comments, the Effectiveness Date as to
         such Registration Statement shall be the fifth Trading Day following
         the date on which the Company is so notified if such date precedes the
         dates required above.

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

                  "Filing Date" means, with respect to the Registration
         Statement registering for resale the Registrable Securities, the 30th
         day following the Closing Date.

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

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

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

                                       1
<PAGE>

                  "Proceeding" means an action, claim, suit, investigation or
         proceeding (including, without limitation, an investigation or partial
         proceeding, such as a deposition), whether commenced or threatened.

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

                  "Registrable Securities" means all of the Shares, the Warrant
         Shares and shares of Common Stock issuable upon exercise of warrants
         issued to Rodman & Renshaw, Inc., Sands Brothers International Ltd. and
         to David Enzer in connection with the transactions contemplated by the
         Purchase Agreement together with any shares of Common Stock issued or
         issuable upon any stock split, dividend or other distribution,
         recapitalization or similar event with respect to the foregoing.

                  "Registration Statement" means the registration statements
         required to be filed hereunder and any additional registration
         statements contemplated by Section 3(c), including (in each case) the
         Prospectus, amendments and supplements to such registration statement
         or Prospectus, including pre- and post-effective amendments, all
         exhibits thereto, and all material incorporated by reference or deemed
         to be incorporated by reference in such registration statement.

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

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

                  "Warrants" shall mean the Common Stock purchase warrants
         issued to the Purchasers pursuant to the Purchase Agreement.

     2. Shelf Registration

                                       2
<PAGE>

         (a) On or prior to the Filing Date, the Company shall prepare and file
with the Commission a "Shelf" Registration Statement covering the resale of all
of the Registrable Securities relating to such Filing Date (and excluding, for
purposes of this number, any securities which may be issuable upon any stock
split, dividend or other distribution or recapitalization provision in the
Warrants or in connection with any anti-dilution provisions in the Warrants) for
an offering to be made on a continuous basis pursuant to Rule 415. The
Registration Statement shall be on Form S-3 (unless the Company is not then
eligible to register for resale the Registrable Securities on Form S-3, in which
case such registration shall be on another appropriate form in accordance
herewith) and shall contain (unless otherwise directed by the Holders and except
to the extent the Company determines that modifications thereto are required
under applicable law) substantially the "Plan of Distribution" attached hereto
as Annex A. Subject to the terms of this Agreement, the Company shall use its
best efforts to cause the Registration Statement to be declared effective under
the Securities Act as promptly as possible after the filing thereof, but in any
event prior to the applicable Effectiveness Date, and shall use its best efforts
to keep such Registration Statement continuously effective under the Securities
Act until the date which is two years after the date that such Registration
Statement is declared effective by the Commission or such earlier date when all
Registrable Securities covered by such Registration Statement have been sold or
may be sold without volume restrictions pursuant to Rule 144(k) as determined by
the counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company's transfer agent and the affected
Holders (the "Effectiveness Period").

         (b) If: (i) a Registration Statement is not filed on or prior to the
Filing Date (if the Company files a Registration Statement without affording the
Holders the opportunity to review and comment on the same as required by Section
3(a), the Company shall not be deemed to have satisfied clause (i)), or (ii) the
Company fails to file with the Commission a request for acceleration in
accordance with Rule 461 promulgated under the Securities Act, within five
Trading Days of the date that the Company is notified (orally or in writing,
whichever is earlier) by the Commission that a Registration Statement will not
be "reviewed," or not subject to further review, or (iii) prior to its
Effectiveness Date, the Company fails to file a pre-effective amendment and
otherwise respond in writing to comments made by the Commission in respect of
such Registration Statement within 15 Trading Days after the receipt of comments
by or notice from the Commission that such amendment is required in order for a
Registration Statement to be declared effective, or (iv) a Registration
Statement filed or required to be filed hereunder is not declared effective by
the Commission by its Effectiveness Date, or (v) after the Effectiveness Date, a
Registration Statement ceases for any reason to remain continuously effective as
to all Registrable Securities for which it is required to be effective, or the
Holders are not permitted to utilize the Prospectus therein to resell such
Registrable Securities for 5 consecutive Trading Days or in any individual case
an aggregate of 15 Trading Days during any 12 month period (which need not be
consecutive Trading Days) (any such failure or breach being referred to as an
"Event", and for purposes of clause (i) or (iv) the date on which such Event
occurs, or for purposes of clause (ii) the date on which such five Trading Day
period is exceeded, or for purposes of clause (iii) the date which such 15
Trading Day period is exceeded, or for purposes of

                                       3
<PAGE>

clause (v) the date on which such 5 or 15 Trading Day period, as applicable, is
exceeded being referred to as "Event Date"), then, on each such Event Date and
every monthly anniversary thereof until the applicable Event is cured, the
Company shall pay to each Holder an amount in cash, as liquidated damages and
not as a penalty, equal to 2.0% per month of (i) the Subscription Amount paid by
such Holder pursuant to the Purchase Agreement for Registrable Securities then
held by such Holder and covered (or to be covered) by such Registration
Statement, and (ii) if the Warrants are "in the money" and then held by the
Holder, the value of any outstanding Warrants (valued at the difference between
the average VWAP during the applicable month and the Exercise Price multiplied
by the number of shares of Common Stock the Warrants are exercisable into). If
the Company fails to pay any liquidated damages pursuant to this Section in full
within seven days after the date payable, the Company will pay interest thereon
at a rate of 15% per annum (or such lesser maximum amount that is permitted to
be paid by applicable law) to the Holder, accruing daily from the date such
liquidated damages are due until such amounts, plus all such interest thereon,
are paid in full. The liquidated damages pursuant to the terms hereof shall
apply on a pro-rata basis for any portion of a month prior to the cure of an
Event.

     3. Registration Procedures

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

         (a) Not less than three Trading Days prior to the filing of each
Registration Statement or any related Prospectus or any amendment or supplement
thereto (excluding any document that would be incorporated or deemed
incorporated therein by reference), the Company shall, (i) furnish to each
Holder copies of all such documents proposed to be filed, which documents (other
than those incorporated or deemed to be incorporated by reference) will be
subject to the review of such Holders, and (ii) cause its officers and
directors, counsel and independent certified public accountants to respond to
such inquiries as shall be necessary, in the reasonable opinion of respective
counsel to conduct a reasonable investigation within the meaning of the
Securities Act. The Company shall not file the Registration Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable Securities shall reasonably and in good faith
object, provided, the Company is notified of such objection in writing no later
than 3 Trading Days after the Holders have been so furnished copies of such
documents.

         (b) (i) Prepare and file with the Commission such amendments, including
post-effective amendments, to a Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep a Registration Statement
continuously effective as to the applicable Registrable Securities for the
Effectiveness Period and prepare and file with the Commission such additional
Registration Statements in order to register for resale under the Securities Act
all of the Registrable Securities; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement (subject to the
terms of this Agreement), and as so supplemented or amended to be filed

                                       4
<PAGE>

pursuant to Rule 424; (iii) respond as promptly as reasonably possible, and in
any event within 15 Trading Days, to any comments received from the Commission
with respect to a Registration Statement or any amendment thereto and as
promptly as reasonably possible provide the Holders true and complete copies of
all correspondence from and to the Commission relating to a Registration
Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by a Registration Statement during the applicable
period in accordance (subject to the terms of this Agreement) with the intended
methods of disposition by the Holders thereof set forth in such Registration
Statement as so amended or in such Prospectus as so supplemented.

         (c) If during the Effectiveness Period, the number of Registrable
Securities at any time exceeds 100% of the number of shares of Common Stock then
registered in a Registration Statement, then the Company shall file as soon as
reasonably practicable but in any case prior to the 30th day following the date
such number is exceeded, an additional Registration Statement covering the
resale of by the Holders of not less than all of such Registrable Securities and
the Company shall use commercially reasonable efforts to cause such Registration
Statement to be declared effective as soon as reasonably practicable thereafter.

         (d) Notify the Holders of Registrable Securities to be sold (which
notice shall, pursuant to clauses (ii) through (vi) hereof, be accompanied by an
instruction to suspend the use of the Prospectus until the requisite changes
have been made) as promptly as reasonably possible and (if requested by any such
Person) confirm such notice in writing no later than two Trading Days following
the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is filed; (B) when the Commission notifies
the Company whether there will be a "review" of such Registration Statement and
whenever the Commission comments in writing on such Registration Statement (the
Company shall provide true and complete copies thereof and all written responses
thereto to each of the Holders); and (C) with respect to a Registration
Statement or any post-effective amendment, when the same has become effective;
(ii) of any request by the Commission or any other Federal or state governmental
authority for amendments or supplements to a Registration Statement or
Prospectus or for additional information; (iii) of the issuance by the
Commission of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of
any Proceedings for that purpose; (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; (v) of the occurrence of any event or passage of time that makes the
financial statements included in a Registration Statement ineligible for
inclusion therein or any statement made in a Registration Statement or
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to a
Registration Statement, Prospectus or other documents so that, in the case of a
Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated

                                       5
<PAGE>

therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; and (vi) the
occurrence or existence of any pending corporate development with respect to the
Company that the Company believes may be material and that, in the determination
of the Company, makes it not in the best interests of the Company to allow
continued availability of the Registration Statement or Prospectus.

         (e) Promptly deliver to each Holder, without charge, as many copies of
the Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto as such Persons may reasonably request. Subject
to the terms of this Agreement, the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling
Holders in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto.

         (f) Use commercially reasonable efforts to register or qualify the
resale of such Registrable Securities as required under applicable securities or
Blue Sky laws of each State within the United States as any Holder requests in
writing, to keep each such registration or qualification (or exemption
therefrom) effective during the Effectiveness Period; provided, that the Company
shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified or subject the Company to any material tax in
any such jurisdiction where it is not then so subject.

         (g) Cooperate with the Holders to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be delivered to
a transferee pursuant to a Registration Statement, which certificates shall be
free, to the extent permitted by the Purchase Agreement, of all restrictive
legends, and to enable such Registrable Securities to be in such denominations
and registered in such names as any such Holders may request.

         (h) Upon the occurrence of any event contemplated by this Section 3, as
promptly as reasonably possible, prepare a supplement or amendment, including a
post-effective amendment, to a Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither a Registration Statement nor such Prospectus will
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. If the
Company notifies the Holders in accordance with clauses (ii) through (vi) of
Section 3(d) above to suspend the use of the use of any Prospectus until the
requisite changes to such Prospectus have been made, or the Company otherwise
notifies the Holders of its election to suspend the availability of a
Registration Statement and Prospectus pursuant to

                                       6
<PAGE>

clause (vi) of Section 3(d), then the Holders shall suspend use of such
Prospectus. The Company will use its best efforts to ensure that the use of the
Prospectus may be resumed as promptly as is practicable, except that in the case
of suspension of the availability of a Registration Statement and Prospectus
pursuant to clause (vi) of Section 3(d), the Company shall not be required to
take such action until such time as it shall determine that the continued
availability of the Registration Statement and Prospectus is no longer not in
the best interests of the Company. The Company shall be entitled to exercise its
right under this Section 3(h) to suspend the availability of a Registration
Statement and Prospectus, subject to the payment of liquidated damages pursuant
to Section 2(b), for a period not to exceed 60 consecutive days or for multiple
periods not to exceed 90 days in any 12 month period.

         (i) Comply with all applicable rules and regulations of the Commission.

         (j) Use its best efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of (i) any order suspending the effectiveness of a
Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable moment.

         (k) The Company may require, at any time prior to the third Trading Day
prior to the Filing Date, each Holder to furnish to the Company a statement as
to the number of shares of Common Stock beneficially owned by such Holder and,
if requested by the Commission, the person thereof that has voting and
dispositive control over the Shares, within three Trading days of the Company's
request. During any periods that the Company is unable to meet its obligations
hereunder with respect to the registration of the Registrable Securities solely
because any Holder fails to furnish such information within three Trading Days
of the Company's request, any liquidated damages that are accruing at such time
shall be tolled and any Event of Default that may otherwise occur solely because
of such delay shall be suspended, until such information is delivered to the
Company.

     4. Registration Expenses. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with the Trading Market on which the Common Stock is then
listed for trading, and (B) in compliance with applicable state securities or
Blue Sky laws (including, without limitation, fees and disbursements of counsel
for the Company in connection with Blue Sky qualifications or exemptions of the
Registrable Securities and determination of the eligibility of the Registrable
Securities for investment under the laws of such jurisdictions as requested by
the Holders)), (ii) printing expenses (including, without limitation, expenses
of printing certificates for Registrable Securities and of printing prospectuses
requested by the Holders), (iii) messenger, telephone and delivery expenses,
(iv) fees and disbursements of counsel for the Company, and (v) fees and
expenses of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement. In addition,
the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses of its
officers and

                                       7
<PAGE>

employees performing legal or accounting duties), the expense of any annual
audit and the fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange as required hereunder. In no
event shall the Company be responsible for any broker or similar commissions or
any legal fees or other costs of the Holders.

     5. Indemnification

         (a) INDEMNIFICATION BY THE COMPANY. In the event of a registration of
the Registrable Securities pursuant to this Section 2, the Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each seller of such Registrable Securities thereunder and the officers,
directors, agents, brokers (including brokers who offer and sell Registrable
Securities as principal as a result of a pledge or any failure to perform under
a margin call of Common Stock), investment advisors and employees of each of
them, each Person who controls any such seller (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, costs of preparation
and reasonable attorneys' fees) and expenses (collectively, "Losses"), as
incurred by such seller, person or controlling person, arising out of or based
upon any untrue or alleged untrue statement of a material fact contained in a
Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out
of or based upon any omission or alleged omission of a material fact required to
be stated therein or necessary to make the statements therein (in the case of
any Prospectus or form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading, except to the extent,
but only to the extent, that (1) such untrue statements or omissions or alleged
untrue statements or omissions arise out of or are based upon information
furnished in writing to the Company by or on behalf of any such seller, or any
such controlling person expressly for use therein, or to the extent that such
information relates to such seller's proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by or
on behalf of such seller expressly for use in a Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto
or (2) in the case of an occurrence of an event of the type specified in Section
3(d)(ii)-(vi), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice
contemplated in Section 6(e). The Company shall notify the Holders promptly of
the institution, threat or assertion of any Proceeding arising from or in
connection with the transactions contemplated by this Agreement of which the
Company is aware.

         (b) INDEMNIFICATION BY HOLDERS. In the event of a registration of the
Registrable Securities pursuant to Section 2, each seller of such Registrable
Securities thereunder shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the

                                       8
<PAGE>

meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses
arising out of or based upon (i) such seller's failure to comply with the
material provisions of the prospectus delivery requirements of the Securities
Act, (ii) any untrue statement of a material fact contained in any Registration
Statement, any Prospectus, or any form of prospectus, or in any amendment or
supplement thereto, or arising out of or based upon any omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading to the extent, but only to the extent, that such untrue statement
or omission is made in reliance upon and in conformity with any information so
furnished in writing by or on behalf of such seller to the Company specifically
for use therein, or to the extent that such information relates to such seller
or such seller's proposed method of distribution of Registrable Securities and
was reviewed and expressly approved in writing by or on behalf of such seller
expressly for use in the Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto or (iii) in the case of an
occurrence of an event of the type specified in Section 3(d)(ii)-(vi), the use
by such seller of an outdated or defective Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective and
prior to the receipt by such Holder of the Advice contemplated in Section 6(e).
In no event shall the liability of any seller hereunder be greater in amount
than the dollar amount of the net proceeds received by such seller upon the sale
of the Registrable Securities covered by such registration.

         (c) CONDUCT OF INDEMNIFICATION PROCEEDINGS. If any Proceeding shall be
brought or asserted against any Person entitled to indemnity hereunder (an
"Indemnified Party"), such Indemnified Party shall promptly notify the Person
from whom indemnity is sought (the "Indemnifying Party") in writing, and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that
the failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that such failure shall have prejudiced the
Indemnifying Party.

         An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that a material conflict of interest is
likely to exist if the same counsel were to represent such Indemnified Party and
the Indemnifying Party (in which case, if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the
expense of the

                                       9
<PAGE>

Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and the expense of one such counsel for each Holder shall be
at the expense of the Indemnifying Party). The Indemnifying Party shall not be
liable for any settlement of any such Proceeding effected without its written
consent, which consent shall not be unreasonably withheld. No Indemnifying Party
shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

         Subject to the terms of this Agreement, all fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent incurred
in connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified
Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder).

         (d) CONTRIBUTION. If a claim for indemnification under Section 5(a) or
5(b) is unavailable to an Indemnified Party (by reason of public policy or
otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth in Section 5(c), any reasonable attorneys' or other
reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any

                                       10
<PAGE>

damages that such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.

         The indemnity and contribution agreements contained in this Section are
in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

     6. Miscellaneous

         (a) AMENDMENTS AND WAIVERS. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and all of
the Holders of the then outstanding Registrable Securities. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of Holders and that does not
directly or indirectly affect the rights of other Holders may be given by
Holders of all of the Registrable Securities to which such waiver or consent
relates; provided, however, that the provisions of this sentence may not be
amended, modified, or supplemented except in accordance with the provisions of
the immediately preceding sentence.

         (b) NO INCONSISTENT AGREEMENTS. Neither the Company nor any of its
subsidiaries has entered, as of the date hereof, nor shall the Company or any of
its subsidiaries, on or after the date of this Agreement, enter into any
agreement with respect to its securities, that would have the effect of
impairing the rights granted to the Holders in this Agreement or otherwise
conflicts with the provisions hereof. Neither the Company nor any of its
subsidiaries has previously entered into any agreement granting any registration
rights with respect to any of its securities to any Person that have not been
included on a registration statement filed with the Commission.

         (c) NO PIGGYBACK ON REGISTRATIONS. Except as and to the extent
specified in Schedule 6(c) hereto, neither the Company nor any of its security
holders (other than the Holders in such capacity pursuant hereto) may include
securities of the Company in the Registration Statement other than the
Registrable Securities, and the Company shall not after the date hereof enter
into any agreement providing any such right to any of its security holders.

         (d) COMPLIANCE. Each Holder covenants and agrees that it will comply
with the prospectus delivery requirements of the Securities Act as applicable to
it in connection with sales of Registrable Securities pursuant to the
Registration Statement.

         (e) DISCONTINUED DISPOSITION. Each Holder agrees by its acquisition of
such Registrable Securities that, upon receipt of a notice from the Company of
the occurrence of any event of the kind described in Sections 3(d)(ii), (iii) or
(vi), such Holder will forthwith discontinue disposition of such Registrable
Securities under a Registration Statement until such Holder's receipt of the
copies of the supplemented Prospectus and/or

                                       11
<PAGE>

amended Registration Statement contemplated by Section 3(h), or until it is
advised in writing (the "Advice") by the Company that the use of the applicable
Prospectus may be resumed, and, in either case, has received copies of any
additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus or Registration Statement. The
Company may provide appropriate stop orders to enforce the provisions of this
paragraph. Any periods during which the Holder is required to discontinue the
disposition of the Registrable Securities hereunder shall be subject to the
provisions of Section 2(c).

         (f) PIGGY-BACK REGISTRATIONS. If at any time during the Effectiveness
Period there is not an effective Registration Statement covering all of the
Registrable Securities and the Company shall determine to prepare and file with
the Commission a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall send to each Holder written notice of such
determination and, if within fifteen days after receipt of such notice, any such
Holder shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such
holder requests to be registered; provided, that, the Company shall not be
required to register any Registrable Securities pursuant to this Section 6(f)
that are eligible for resale pursuant to Rule 144(k) promulgated under the
Securities Act.

         (g) NOTICES. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be delivered as set forth
in the Purchase Agreement.

         (h) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit
of and be binding upon the successors and permitted assigns of each of the
parties and shall inure to the benefit of each Holder. The Company may not
assign its rights or obligations hereunder without the prior written consent of
all of the Holders of the then-outstanding Registrable Securities. Each Holder
may assign their respective rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

         (i) COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In
the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

         (j) GOVERNING LAW. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to

                                       12
<PAGE>

the principles of conflicts of law thereof. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in
the City of New York, borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address in effect for notices to it
under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted
by law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby. If either party shall commence a Proceeding to enforce any
provisions of this Agreement, then the prevailing party in such Proceeding shall
be reimbursed by the other party for its attorneys fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
Proceeding.

         (k) CUMULATIVE REMEDIES. The remedies provided herein are cumulative
and not exclusive of any remedies provided by law.

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

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

         (n) INDEPENDENT NATURE OF PURCHASERS' OBLIGATIONS AND RIGHTS. The
obligations of each Purchaser hereunder is several and not joint with the
obligations of any other Purchaser hereunder, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser hereunder. Nothing contained herein or in any other agreement or
document delivered at any closing, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert with
respect to such obligations or the transactions contemplated by this Agreement.
Each Purchaser shall be entitled to protect and enforce its rights, including
without limitation the rights

                                       13
<PAGE>

arising out of this Agreement, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for such
purpose.

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

                                       14
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                    MATRITECH, INC.

                                    By: /s/ Stephen D. Chubb
                                        ----------------------------------------
                                        Name: Stephen D. Chubb
                                        Title: Chief Executive Officer

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       15
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Alexandra Global Master Fund Ltd.
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Mikhail Filimonov
                                                       -------------------------

Name of Authorized Signatory: Mikhail Filimonov
                             ---------------------------------------------------

Title of Authorized Signatory: Chairman & CEO, Alexandra Investment Management,
                                                     LLC
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Alpha Capital AG
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Konrad Ackerman
                                                       -------------------------

Name of Authorized Signatory: Konrad Ackerman
                             ---------------------------------------------------

Title of Authorized Signatory: Director
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Basso Equity Opportunity Holding Fund Ltd.
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Howard I. Fischer
                                                       -------------------------

Name of Authorized Signatory: Howard I. Fischer
                             ---------------------------------------------------

Title of Authorized Signatory: Authorized Signatory
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Bristol Investment Fund, Ltd
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Paul Kessler
                                                       -------------------------

Name of Authorized Signatory: Paul Kessler
                             ---------------------------------------------------

Title of Authorized Signatory: Director
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity:    Close Finsbury Global Investment-Universal Life
                                                 Sciences
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Huaizheng Peng
                                                       -------------------------

Name of Authorized Signatory: Huaizheng Peng
                             ---------------------------------------------------

Title of Authorized Signatory: Fund Manager
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Cranshire Capital, L.P.
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Mitchell P. Kopin
                                                       -------------------------

Name of Authorized Signatory: Mitchell P. Kopin
                             ---------------------------------------------------

Title of Authorized Signatory: President - Downsview Capital
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Crestview Capital Master, LLC
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Robert Hoyt
                                                       -------------------------

Name of Authorized Signatory: Robert Hoyt
                             ---------------------------------------------------

Title of Authorized Signatory: Managing Director
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Crescent International, Ltd.
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Mel Craw; Maxi Brezzi
                                                       -------------------------

Name of Authorized Signatory: Mel Craw; Maxi Brezzi
                             ---------------------------------------------------

Title of Authorized Signatory: Authorized Signatory
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: DKR SoundShore Oasis Holding Fund Ltd
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Barbara Burger
                                                       -------------------------

Name of Authorized Signatory: Barbara Burger
                             ---------------------------------------------------

Title of Authorized Signatory: Alternate Director
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Elliott Associates, L.P.
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Elliot Greenberg
                                                       -------------------------

Name of Authorized Signatory: Elliot Greenberg
                             ---------------------------------------------------

Title of Authorized Signatory: Vice President, Braxton Associates, Inc.
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Elliot International, L.P.
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Elliot Greenberg
                                                       -------------------------

Name of Authorized Signatory: Elliot Greenberg
                             ---------------------------------------------------

Title of Authorized Signatory: Vice President, Braxton Associates, Inc.
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Fountainhead Fund
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Anthony Postiglione
                                                       -------------------------

Name of Authorized Signatory: Anthony Postiglione
                             ---------------------------------------------------

Title of Authorized Signatory: Managing Partner
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: JIBS Equities, LP
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Bruce Thomas
                                                       -------------------------

Name of Authorized Signatory: Bruce Thomas
                             ---------------------------------------------------

Title of Authorized Signatory: Chief Financial Officer
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Langley Partners LP
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Jeffrey Thorp
                                                       -------------------------

Name of Authorized Signatory: Jeffrey Thorp
                             ---------------------------------------------------

Title of Authorized Signatory: Managing Member, Langley Capital, LLC
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Omicron Master Trust
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Bruce Bernstein
                                                       -------------------------

Name of Authorized Signatory: Bruce Bernstein
                             ---------------------------------------------------

Title of Authorized Signatory: Managing Partner
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: OTAPE Investments LLC
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Robert M. Coyne
                                                       -------------------------

Name of Authorized Signatory: Robert M. Coyne
                             ---------------------------------------------------

Title of Authorized Signatory: General Counsel
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Portside Growth and Opportunity Fund
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Jeff Solomon
                                                       -------------------------

Name of Authorized Signatory: Jeff Solomon
                             ---------------------------------------------------

Title of Authorized Signatory: Managing Member
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: RHP Master Fund, Ltd
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Keith Marlowe
                                                       -------------------------

Name of Authorized Signatory: Keith Marlowe
                             ---------------------------------------------------

Title of Authorized Signatory: Managing Partner
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Spectra Capital Management, LLC
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Gregory I. Porges
                                                       -------------------------

Name of Authorized Signatory: Gregory I. Porges
                             ---------------------------------------------------

Title of Authorized Signatory: Sole Member
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: SRG Capital, LLC
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Andrew J. Turchin
                                                       -------------------------

Name of Authorized Signatory: Andrew J. Turchin
                             ---------------------------------------------------

Title of Authorized Signatory: Chief Financial Officer
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Stonestreet, LP
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ M. Finkelstein
                                                       -------------------------

Name of Authorized Signatory: Michael Finkelstein
                             ---------------------------------------------------

Title of Authorized Signatory: President
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: TCMP3 Partners
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Steven E. Slawson
                                                       -------------------------

Name of Authorized Signatory: Steven E. Slawson
                             ---------------------------------------------------

Title of Authorized Signatory: Principal/General Partner
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Topaz Partners
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ David Muschel
                                                       -------------------------

Name of Authorized Signatory: David Muschel
                             ---------------------------------------------------

Title of Authorized Signatory: Manager
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Whalehaven Fund Limited
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Evan Schemenauer
                                                       -------------------------

Name of Authorized Signatory: Evan Schemenauer
                             ---------------------------------------------------

Title of Authorized Signatory: Director
                              --------------------------------------------------

                                       16
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO MZT RRA]

Name of Investing Entity: Zachary Prensky
                         -------------------------------------------------------

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: /s/ Zachary Prensky
                                                       -------------------------

Name of Authorized Signatory: Zachary Prensky
                             ---------------------------------------------------

Title of Authorized Signatory: Self
                              --------------------------------------------------

                                       16
<PAGE>

                              PLAN OF DISTRIBUTION
                              --------------------

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

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

     o   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;

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

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

     o   privately negotiated transactions;

     o   settlement of short sales entered into after the date of this
         prospectus

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

     o   a combination of any such methods of sale; and

     o   any other method permitted pursuant to applicable law.

         The selling stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus. Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from
the selling stockholders (or, if any broker-dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. The
selling stockholders do not expect these commissions and discounts to exceed
what is customary in the types of transactions involved.

         The selling stockholder may from time to time pledge or grant a
security interest in some or all of the shares of common stock or Warrants owned
by them 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 under this prospectus, or under an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities
Act of 1933 amending the list of selling stockholders to

                                       17
<PAGE>

include the pledgee, transferee or other successors in interest as selling
stockholders under this prospectus.

         The selling stockholders also may transfer the shares of common stock
in other circumstances, in which case the transferees, pledgees or other
successors in interest will be the selling beneficial owners for purposes of
this prospectus.

         The selling stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. The selling stockholders have
informed the Company that none of them have any agreement or understanding,
directly or indirectly, with any person to distribute the common stock.

         The Company is required to pay all fees and expenses incurred by the
Company incident to the registration of the shares. The Company has agreed to
indemnify the selling stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

                                       18

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