Document:

ex_10-19.htm

    Exhibit 10.19

     

    SUBSCRIPTION
AGREEMENT

    

    

    This
Subscription Agreement (this “Agreement”), dated as
of December [__], 2007, by and among HemoBioTech, Inc., a Delaware corporation
(the “Company”), and each
subscriber identified on the signature page hereto (each a “Subscriber” and
collectively the “Subscribers”).

    

    Whereas,
the Company intends to offer for sale, and the Subscribers intends to purchase,
up to [number] units (“Units”), at the price
of $[ __ ] (the “Unit
Purchase Price”) for an aggregate of $6,000,000, each Unit consisting of
one share of the Company’s common stock, $.001 par value (“Common Stock”), and a
warrant exercisable for the purchase of one share of Common Stock (the “Warrants”);

    

    Whereas,
the Company and the Subscribers are executing and delivering this Agreement in
reliance upon an exemption from securities registration afforded by the
provisions of Section 4(2), Section 4(6) and/or Regulation D (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission (the “SEC”) under the
Securities Act of 1933, as amended (the “1933 Act,”
collectively the “Offering
Exemption”);

    

    Now,
Therefore, in consideration of the mutual covenants and other agreements
contained in this Agreement, the Company and the Subscribers hereby agree as
follows:

    

    1.           Purchase and Sale of Shares
and Warrants.  Subject to the satisfaction of the terms and
conditions of this Agreement, each Subscriber hereby irrevocably agrees to
purchase the full number of Units, consisting of Common Stock and Warrants in
the amounts designated on the signature page hereto (the “Subscription Amount”)
at the Unit Purchase Price, and the Company shall sell such Units to such
Subscribers at the Unit Purchase Price.

     

    2.           Escrow Arrangements; Form of
Payment.  Upon execution of this Agreement by the parties and
pursuant to the terms of the escrow agreement, substantially in the form of
Exhibit B,
entered into between the Company, the Subscribers, and Signature Bank (the
“Escrow
Agreement”), each Subscriber agrees to make the deliveries required of it
as set forth in the Escrow Agreement, and the Company agrees to make the
deliveries required of the it as set forth in the Escrow Agreement.

     

    3.           Exercise Period and Price of
the Warrants.  Each Warrant shall be in the form attached
hereto as Exhibit
A, and will be subject to the terms and conditions contained
therein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.1           Closing.  At
closing of the transactions contemplated herein (the “Closing”), the
Subscribers shall purchase, severally and not jointly, and the Company shall
issue and sell, in the aggregate, a maximum of [ ___ ] Units, each consisting of
one share of Common Stock and a Warrant exercisable for the purchase of one
share of Common Stock.  Each Subscriber shall purchase from the
Company, and the Company shall issue and sell to each Subscriber, the amount of
Units specified on Schedule
1.  Upon satisfaction of the conditions set forth in Section
4.2, the Closing shall occur on December [ __ ], 2007 at the offices of
Greenberg Traurig, LLP, 200 Park Avenue, New York, NY 10166, or such other time
and/or location as the parties shall mutually agree.

     

    4.2                           Closing
Conditions.

     

    (a)           Each
Subscriber’s obligations at Closing are conditioned upon the Company’s delivery
to such Subscriber of:

     

    (i)           this
Agreement duly executed by the Company;

     

    (ii)           a
certificate evidencing ownership of a number of shares of Common Stock equal to
such Subscriber’s Subscription Amount;

     

    (iii)           Warrants,
in the Subscription Amount, registered in the name of such Subscriber, pursuant
to which such Subscriber shall have the right to acquire, with respect to each
Warrant, one share of Common Stock;

     

    (b)           The
Company’s obligations at Closing are conditioned upon each Subscriber’s delivery
to the Company of the following:

     

    (i)           this
Agreement duly executed by such Subscriber;

     

    (ii)           readily
available funds, in the form of a check or a wire transfer, in an amount
sufficient to purchase the Subscription Amount;

     

    (iii)           an
executed and properly completed copy of the appropriate Confidential Purchaser
Questionnaire; and

     

    (iv)           an
executed and properly completed copy of the form of Registration Rights
Agreement, as attached hereto as Exhibit
C.

     

    (c)           As
of Closing, there shall have been no Material Adverse Effect (as defined below)
with respect to the Company since the date hereof.

     

    (d)           From
the date hereof to Closing, trading in the Common Stock shall not have been
suspended by the SEC and, at any time prior to Closing, 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.

     

    
      
        
        

      

      
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    5.           Subscriber’s Representations
and Warranties.  Each Subscriber hereby represents and warrants
as of the date hereof and as of the Closing, with regards to itself
that:

     

    (a)           Information on
Company.  The Subscriber has either obtained or has access to
(through the EDGAR website of the SEC or otherwise) the Company’s reports and
filings, including all exhibits thereto, previously made with the SEC pursuant
to the requirements of the Securities Exchange Act of 1934, as amended (the
“1934 Act”) and
the regulations promulgated thereunder (hereinafter referred to collectively as
the “Reports”).  In
addition, the Subscriber has received in writing from the Company such other
information concerning its operations, financial condition and other matters as
the Subscriber has requested in writing (such other information is collectively,
the “Other Written Information”), and the Subscriber considered all factors the
Subscriber deems material in deciding on the advisability of investing in the
Securities.

     

    (b)           Information on
Subscriber.  The Subscriber is, and will be at the time of the
exercise of the Warrants, an “accredited investor” as defined in Section
2(15) of the 1933
Act and Rule 501 promulgated thereunder. Such Subscriber is not required to be
registered as a broker-dealer under Section 15 of the 1934 Act, is experienced
in investments and business matters, has previously made investments of a
speculative nature, understands that an investment in the Securities involves a
high degree of risk, has purchased securities of United States publicly-owned
companies in private placements in the past and, with its representatives, has
such knowledge and experience in financial, tax and other business matters as to
enable the Subscriber to utilize the information made available by the Company
to evaluate the merits and risks of and to make an informed investment decision
with respect to the proposed purchase, which represents a speculative
investment.  The Subscriber, if not a natural person, has the
necessary authority to and is duly and legally qualified to purchase and own the
Securities.  The Subscriber is able to bear the risk of such
investment for an indefinite period and to afford a complete loss
thereof.  The information set forth on the signature page hereto
regarding the Subscriber is accurate.  The sale of the Securities to
the Subscriber as contemplated in this Subscription Agreement complies with or
is exempt from the applicable securities legislation of the jurisdiction of the
residence of the Subscriber.

     

    (c)           Purchase of Shares and
Warrants.  At Closing, the Subscriber will purchase the Shares
and Warrants for its own account for investment purposes only and not as a
nominee or agent and not with a view towards or for resale in connection with
the distribution of the Securities.

     

    (d)           Compliance with Securities
Act.  The Subscriber understands and agrees that the Securities
are “restricted securities” have not been registered under the 1933 Act or any
applicable state securities laws, by reason of their issuance in a transaction
that does not require registration under the 1933 Act (based in part on the
accuracy of the representations and warranties of Subscriber contained herein),
and that such Securities must be held indefinitely unless a subsequent
disposition is registered under the 1933 Act or any applicable state securities
laws or is exempt from such registration.

     

    
      
        
        

      

      
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    (e)           Shares
Legend.  The shares of Common Stock issued hereunder shall bear
the following or similar legend:

     

    “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED.  THESE SHARES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE
SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO HEMOBIOTECH,
INC. THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    (f)           Warrants
Legend.  The Warrants shall bear the following or similar
legend:

     

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

     

    (g)           Communication of
Offer.  The offer to sell the Securities was directly
communicated to the Subscriber by the Company.  At no time was the
Subscriber presented with or solicited by any leaflet, newspaper or magazine
article, radio or television advertisement, or any other form of general
advertising, or solicited or invited to attend a promotional meeting otherwise
than in connection and concurrently with such communicated offer.

     

    (h)           Organization;
Authority.  If Subscriber is not a natural person, Subscriber
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 Offering and otherwise to carry out its obligations
thereunder.

     

    
      
        
        

      

      
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    (i)           Authority;
Enforceability.  This Agreement and other agreements delivered
together with this Agreement or in connection herewith have been duly
authorized, executed and delivered by the Subscriber and are valid and binding
agreements enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights generally and
to general principles of equity; and Subscriber, if not a natural person, has
full corporate power and authority necessary to enter into this Agreement and
such other agreements and to perform its obligations hereunder and under all
other agreements entered into by the Subscriber relating hereto.

     

    (j)           Correctness of
Representations.  Each Subscriber represents that the foregoing
representations and warranties are true and correct as of the date hereof and,
unless a Subscriber otherwise notifies the Company prior to the Closing, shall
remain true and correct as of Closing.  The foregoing representations
and warranties shall survive the Closing Date for a period of three
years.

     

    (k)           No Tax or Legal
Advice.  Such Subscriber understands that nothing in this
Agreement, any other agreement or any other materials presented to such
Subscriber in connection with the purchase and sale of the Units constitutes
legal, tax or investment advice and such information may not be used, for the
purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or
(ii) promoting, marketing or recommending to another party any tax-related
matters addressed herein.  Such Subscriber has consulted such legal,
tax and investment advisors as it, in its sole discretion, has deemed necessary
or appropriate in connection with its purchase of Units.

     

    6.           Company Representations and
Warranties.  The Company represents and warrants to each
Subscriber that:

     

    (a)           Due
Incorporation.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has the requisite corporate power to own its properties and to carry on its
business as currently being conducted.  The Company is duly qualified
as a foreign corporation to do business and is in good standing in each
jurisdiction where the nature of the business conducted or property owned by it
makes such qualification necessary, unless the failure to be so qualified or in
good standing, as the case may be, would not have or would not reasonably be
expected to result in (i) a material adverse effect on the legality, validity or
enforceability of this Agreement or any other document in connection with the
Offering, (ii) a material adverse effect on the results of operations, assets,
business or financial condition of the Company, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely
basis its obligations under this Agreement (any of (i), (ii) or (iii),
constituting a “Material Adverse
Effect”).

     

    (b)           Outstanding
Stock.  All issued and outstanding shares of capital stock of
the Company has been duly authorized and validly issued and are fully paid and
non-assessable.

     

    
      
        
        

      

      
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    (c)           Authority;
Enforceability.  This Agreement and the Warrants have been duly
authorized, executed and delivered by the Company and are valid and binding
agreements enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights generally and
to general principles of equity, and the Company has full corporate power and
authority necessary to enter into this Agreement, the Warrants, the Escrow
Agreement, the form of which is attached hereto as Exhibit B, the
Registration Rights Agreement, the form of which is attached hereto as Exhibit C, and such
other agreements and to perform its obligations hereunder and under all other
agreements entered into by the Company relating hereto.

     

    (d)           Consents.  No
consent, approval, authorization or order of any court, governmental agency or
body or arbitrator having jurisdiction over the Company, or over any of its
affiliates, the NASD, Inc., Nasdaq, the OTC Bulletin Board nor the Company’s
stockholders is required for execution of this Agreement and all other
agreements entered into by the Company relating thereto, including, without
limitation, the issuance and sale of the Securities, and the performance of the
Company’s obligations hereunder and under all such other
agreements.

     

    (e)           No Violation or
Conflict.  Assuming the representations and warranties of the
Subscribers in Section 5 are true and correct, neither the execution and
delivery of this Agreement nor the issuance and sale of the Securities nor the
performance of the Company’s obligations under this Agreement and all other
agreements entered into by the Company relating thereto by the Company
will:

     

    (i)           violate,
conflict with, result in a material breach of, or constitute a default (or an
event which with the giving of notice or the lapse of time or both would be
reasonably likely to constitute a default) or give to others any rights of
termination, amendment, acceleration or cancellation under (A) the certificate
of incorporation or bylaws of the Company, (B) any decree, judgment, order, law,
treaty, rule, regulation or determination applicable to the Company of any
court, governmental agency or body, or arbitrator having jurisdiction over the
Company or any of its affiliates (including federal and state securities laws
and regulations) or over the properties or assets of the Company or any of its
affiliates, (C) the terms of any bond, debenture, note or any other evidence of
indebtedness, or any agreement, stock option or other similar plan, indenture,
lease, mortgage, deed of trust or other instrument to which the Company or any
of its affiliates is a party, by which the Company or any of its affiliates is
bound or affected, or to which any of the properties or assets of the Company or
any of its affiliates is subject, or (D) the terms of any “lock-up” or similar
provision of any underwriting or similar agreement to which the Company, or any
of its affiliates is a party except the violation, conflict, breach, or default
of which would not have a Material Adverse Effect on the Company;
or

     

    
      
        
        

      

      
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    (ii)           result
in the creation or imposition of any lien, charge or encumbrance upon the
securities or any of the assets of the Company or any of its
affiliates.

     

    (f)           The
Securities.  The Securities upon issuance:

     

    (i)           are,
or will be, free and clear of any security interests, liens, claims or other
encumbrances, subject to restrictions upon transfer under the 1933 Act and any
applicable state securities laws;

     

    (ii)           have
been, or will be, duly and validly authorized and on the date of issuance will
be duly and validly issued, fully paid and nonassessable (and if eventually
registered pursuant to the 1933 Act, and resold pursuant to an effective
registration statement will be free trading and unrestricted, provided that each
Subscriber complies with the prospectus delivery requirements of the 1933 Act
and any state securities laws);

     

    (iii)           will
not have been issued or sold in violation of any preemptive or other similar
rights of the holders of any securities of the Company; and

     

    (iv)           will
not subject the holders thereof to personal liability by reason of being such
holders.

     

    (g)           Litigation.  There
is no pending or, to the best knowledge of the Company, threatened action, suit,
proceeding inquiry, notice of violation, or investigation before any court,
governmental or administrative agency or regulatory body (federal, state,
county, local or foreign), or arbitrator having jurisdiction over the Company,
or any of its affiliates that would challenge the legality, validity or
enforceability of this Agreement and/or the Offering, or otherwise affect the
execution by the Company or the performance by the Company of its obligations
under this Agreement, and all other agreements entered into by the Company
relating hereto.  Except as disclosed in the Reports or Other Written
Information, there is no pending or, to the best knowledge of the Company,
threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company,
or any of its affiliates which litigation if adversely determined could have a
Material Adverse Effect on the Company.

     

    (h)           Reporting
Company.  The Company is subject to reporting obligations
pursuant to Section 15(d) of the 1934 Act.  Pursuant to the provisions
of the 1934 Act, the Company has filed all reports and other materials required
to be filed thereunder with the SEC during the preceding twelve
months.

     

    (i)           No Market
Manipulation.  The Company has not taken, and will not take,
directly or indirectly, any action designed to, or that might reasonably be
expected to, cause or result in stabilization or manipulation of the price of
the common stock of the Company to facilitate the sale or resale of the
Securities or affect the price at which the Securities may be issued or
resold.

     

    
      
        
        

      

      
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    (j)           Information Concerning
Company.  The Reports contain all material information relating
to the Company and its operations and financial condition from December 31, 2006
through their respective dates for which information is required to be disclosed
therein.  Since the date of the financial statements included in the
Reports, and except as modified in the Other Written Information or in the
Schedules hereto, there has been no Material Adverse Effect on the Company’s
business, financial condition or affairs not disclosed in the
Reports.  The Reports do not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances when made.  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 SEC.  The Company (i) has not altered its method of
accounting, (ii) 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 (iii) the
Company does not have pending before the SEC any request for confidential
treatment of information.

     

    (k)           SEC Action; Stop
Transfers.  To the Company’s best knowledge there has not been,
there is not pending or contemplated, any investigation by the SEC involving the
Company.  The SEC 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 1933 Act or the 1934 Act.  The Company will not
issue any stop transfer order or other order impeding the sale, resale or
delivery of any of the Securities, except as may be required by any applicable
federal or state securities laws.  Except as described in this
Agreement, the Company will not issue any stop transfer or other order impeding
the sale, resale or delivery of the Securities unless contemporaneous notice of
such instruction is given to the Subscriber.

     

    (l)           Defaults.  The
Company is not in violation of its Certificate of Incorporation or
ByLaws.  The Company is (i) not in default under or in violation of
any other material agreement or instrument to which it is a party or by which it
or any of its properties are bound or affected, which default or violation would
have a Material Adverse Effect on the Company, (ii) not in default with respect
to any order of any court, arbitrator or governmental body or subject to or
party to any order of any court or governmental authority arising out of any
action, suit or proceeding under any statute or other law respecting antitrust,
monopoly, restraint of trade, unfair competition or similar matters, or (iii) to
its knowledge in violation of any statute, rule or regulation of any
governmental authority which violation would have a Material Adverse Effect on
the Company.

     

    
      
        
        

      

      
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    (m)           No General
Solicitation.  Neither the Company, nor any of its affiliates,
nor to the Company’s knowledge, any person acting on its or their behalf, has
since September 30, 2007, directly or indirectly made any offers or sales of any
security or solicited any offers to buy any security that would cause the offer
of the Securities pursuant to this Agreement to be integrated with prior
offerings by the Company for purposes of the 1933 Act or any applicable
stockholder approval provisions. Neither the Company nor any of its affiliates
will take any action or steps that would cause the offer of the Securities to be
integrated with other offerings if such integration would eliminate the Offering
Exemption.  The Company will not conduct any offering other than the
transactions contemplated hereby that will be integrated with the offer or
issuance of the Securities, unless otherwise advised by Nasdaq or the
SEC.

     

    (n)           Listing.  The
Company’s common stock is listed for trading on the Over-The-Counter Bulletin
Board (“OTCBB”). Except for prior notices, which as of the date hereof have been
satisfied, and as provided for in Section 10(b) below, the Company has not
received any oral or written notice that its common stock will be delisted from
the OTCBB nor that its common stock does not meet all requirements for the
continuation of such quotation and the Company satisfies the requirements for
the continued listing of its common stock on the OTCBB.

     

    (o)           No Undisclosed
Liabilities.  The Company has no liabilities or obligations
which are material, individually or in the aggregate, which are not disclosed in
the Reports and/or Other Written Information, other than those incurred in the
ordinary course of the Company’s businesses since September 30, 2007 which,
individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect on the Company’s financial condition, other than as set
forth in Schedule
6(p), or as described in the Reports.

     

    (p)           No Undisclosed Events or
Circumstances.  There has been no event or circumstance that
has occurred or exists with respect to the Company or its businesses,
properties, operations or financial condition, that, under applicable law, rule
or regulation, requires public disclosure or announcement prior to the date
hereof by the Company but which has not been so publicly announced or disclosed
in the Reports.

     

    (q)           Capitalization.  The
authorized and outstanding capital stock of the Company as of the date of this
Agreement and each Closing are set forth on Schedule
6(r).  No person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the
transactions contemplated by this Offering except as set forth on Schedule 6(r), or as
described in the Reports.  Except as set forth on Schedule 6(r)
concerning proposed acquisitions and as described in the Reports and/or as a
result of the purchase and sale of the Securities and except for employee stock
options under the Company’s stock option plans and except for employee rights
under the Company’s employee stock purchase plan, and except as otherwise set
forth on Schedule
6(r), 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.  Except as required by agreements filed as exhibits to
the Reports, the issue and sale of the Units will not obligate the Company to
issue any securities to any person (other than the Subscribers) 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.

     

    
      
        
        

      

      
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    (r)           Title to
Assets.  Except as disclosed in the Reports, the Company has
good and marketable title in fee simple to all real property owned by it that is
material to the business of the Company, and good and marketable title in all
personal property owned by it that is material to the business of the Company,
in each case free and clear of all liens, charges, security interests,
encumbrances, rights of first refusal or other restrictions (collectively
“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 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 are held by them under valid, subsisting and enforceable leases with
which the Company is in material compliance.

     

    (s)           Internal Accounting
Controls.  The Company and its 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 the
1934 Act Rules 13a-14 and 15d-14) for the Company and designed such disclosure
controls and procedures to ensure that material information relating to the
Company (but not any proposed acquisition), and each subsidiary, is made known
to the certifying officers by others within those entities, particularly during
the period in which the Company’s Form 10-KSB or 10-QSB, as the case may be, is
being prepared.

     

    (t)           Registration
Rights.  Except as set forth in the Reports or on Schedule 6(t), no
person has any right to cause the Company to effect the registration under the
1933 Act of any securities of the Company.

     

    7.           Regulation D
Offering.  This Offering is being made pursuant to the
exemption from the registration provisions of the 1933 Act afforded by Section
4(2) or Section 4(6) of the 1933 Act and/or Rule 506 of Regulation D promulgated
thereunder.

     

    8.           Reissuance of
Securities.  The Company agrees to reissue certificates
representing the Shares and the Warrant Shares without the legends set forth in
Sections 5(e) and 5(f) above, (a) at such time as the holder thereof is
permitted to dispose of the Securities pursuant to Rule 144(d) and/or Rule
144(k) under the 1933 Act in the opinion of counsel reasonably satisfactory to
the Company, or (b) upon resale subject to an effective registration statement
after the shares of Common Stock issued pursuant to this Agreement and the
shares of Common Stock underlying the Warrants are registered under the 1933
Act.  The Company agrees to cooperate with each Subscriber in
connection with all resales pursuant to Rule 144(d) and Rule 144(k) and to
provide legal opinions at the Company’s expense necessary to allow such resales
provided the Company and its counsel receive reasonably requested written
representations from each Subscriber and their selling broker, if
any.

     

    
      
        
        

      

      
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    9.           NASD Member Firm
Compensation.  The Company on the one hand, and each Subscriber
on the other hand, agree to indemnify the other against and hold the other
harmless from any and all liabilities to any persons claiming brokerage
commissions other than Meyers Associates, L.P. on account of services purported
to have been rendered on behalf of the indemnifying party in connection with
this Agreement or the transactions contemplated hereby and arising out of such
party’s actions.

     

    10.           Covenants of the
Company.  The Company covenants and agrees with the Subscribers
that for one year following the Closing

     

    (a)           Stop
Orders.  The Company will advise the Subscribers, promptly
after it receives notice of issuance by the SEC, any state securities commission
or any other regulatory authority of any stop order or of any order preventing
or suspending any offering of any securities of the Company, or of the
suspension of the qualification of the Common Stock of the Company for offering
or sale in any jurisdiction, or the initiation of any proceeding for any such
purpose.

     

    (b)           Listing.  If
applicable, the Company shall use its reasonable best efforts to promptly secure
the listing of the shares of Common Stock to be purchased hereunder and the
shares of Common Stock to be issued under the Warrant upon each national
securities exchange, or automated quotation system, if any, upon which shares of
Common Stock are then listed (subject to official notice of issuance) and shall
use its reasonable best efforts to maintain such listing so long as any
Securities are outstanding.  The Company shall use its reasonable best
efforts to maintain the listing of its Common Stock on the American Stock
Exchange, Nasdaq Capital Market, Nasdaq Global Market, OTC Bulletin Board, or
New York Stock Exchange (whichever of the foregoing is at the time the principal
trading exchange or market for the Common Stock (the “Principal Market”)), and
will comply in all material respects with the Company’s reporting, filing and
other obligations under the bylaws or rules of the Principal Market, as
applicable.  The Company will provide the Subscribers copies of all
notices it receives notifying the Company of the threatened and actual delisting
of the Common Stock from any Principal Market.

     

    (c)           Market
Regulations.  If required, the Company shall notify the SEC,
the Principal Market and applicable state authorities, in accordance with their
requirements, if any, of the transactions contemplated by this Agreement, and
shall take all other necessary action and proceedings as may be required and
permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Securities to the Subscribers and promptly provide copies
thereof to Subscriber.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (d)           Reporting
Requirements.  The Company will (i) cause its Common Stock to
remain registered under Section 12(b) or 12(g) of the 1934 Act following the
completion of the Offering, (ii) comply in all respects with its reporting and
filing obligations under the 1934 Act, (iii) comply with all reporting
requirements that are applicable to an issuer with a class of shares registered
pursuant to Section 15(d) of the 1934 Act, as applicable, and (iv) comply with
all requirements related to any registration statement filed pursuant to this
Agreement.  The Company will use its best efforts to not take any
action or file any document (whether or not permitted by the 1933 Act or the
1934 Act or the rules thereunder) to terminate or suspend such registration or
to terminate or suspend its reporting and filing obligations under said
acts.

     

    (e)           Use of
Proceeds.  The proceeds of this Offering will be used by the
Company for our research and development activities, licensing and other general
working capital purposes, and may not and will not be used for accrued and
unpaid officer and director salaries, except as in the ordinary course of
business, payment of financing related debt, redemption of redeemable notes or
equity instruments of the Company.

     

    (f)           Reservation of Common
Stock.  The Company undertakes to reserve from its authorized
but unissued common stock, at all times Warrants remain outstanding, a number of
shares of Common Stock equal to the amount of Common Stock issuable upon
exercise of the Warrants.

     

    (g)           Taxes.  The
Company will promptly pay and discharge, or cause to be paid and discharged,
when due and payable, all lawful taxes, assessments and governmental charges or
levies imposed upon the income, profits, property or business of the Company;
provided, however, that any such tax, assessment, charge or levy need not be
paid if the validity thereof shall currently be contested in good faith by
appropriate proceedings and if the Company shall have set aside on its books
adequate reserves with respect thereto, and provided, further, that the Company
will pay all such taxes, assessments, charges or levies forthwith upon the
commencement of proceedings to foreclose any lien which may have attached as
security therefore.

     

    (h)           Insurance.  The
Company is 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 is engaged.  The Company has no 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.  The Company will keep its assets which are of an insurable
character insured by financially sound and reputable insurers against loss or
damage by fire, explosion and other risks customarily insured against by
companies in the Company’s line of business, in amounts sufficient to prevent
the Company from becoming a co-insurer and not in any event less than 100% of
the insurable value of the property insured; and the Company will maintain, with
financially sound and reputable insurers, insurance against other hazards and
risks and liability to persons and property to the extent and in the manner
customary for companies in similar businesses similarly situated and to the
extent available on commercially reasonable terms.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (i)           Books and
Records.  The Company will keep true records and books of
account in which full, true and correct entries will be made of all dealings or
transactions in relation to its business and affairs in accordance with
generally accepted accounting principles applied on a consistent
basis.

     

    (j)           Governmental
Authorities.  The Company shall duly observe and conform in all
material respects to all valid requirements of governmental authorities relating
to the conduct of its business or to its properties or assets.

     

    (k)           Intellectual
Property.  To the knowledge of the Company, the Company has, or
has rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses necessary to
conduct business and other similar rights that are necessary or material for use
in connection with its business as described in the 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”).  In the last three years, the Company has not received a
written notice that the Intellectual Property Rights used by the Company or any
subsidiary violates or infringes the rights of any person.  The Company
shall maintain in full force and effect its corporate existence, rights and
franchises and all licenses necessary to conduct business and other rights to
use intellectual property owned or possessed by it and reasonably deemed to be
necessary to the conduct of its business.

     

    (l)           Properties.  The
Company will keep its properties in good repair, working order and condition,
reasonable wear and tear excepted, and from time to time make all needful and
proper repairs, renewals, replacements, additions and improvements thereto; and
the Company will at all times comply with each provision of all leases to which
it is a party or under which it occupies property if the breach of such material
provision could reasonably be expected to have a Material Adverse
Effect.

     

    (m)           Confidentiality.  The
Company agrees that it will not disclose publicly or privately the identity of
any Subscriber unless expressly agreed to in writing by that Subscriber or only
to the extent required by law; provided, however, the Subscribers consent to
being named in the Company’s SEC filings in connection with the sale of the
Securities.

     

    (n)           Press Release; Form
8-K.  The Company shall issue a press release through a
national news service on the morning immediately following the Subscription
Acceptance Date (defined below).  Such press release shall be issued
in compliance with Rule 135(c) under the 1933 Act.  Such press
release, along with all other material information, shall be filed on a timely
basis with the SEC as a current report on Form 8-K.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    11.           Covenants of the Company and
Subscriber Regarding Indemnification.

     

    (a)           The
Company agrees to indemnify, hold harmless, reimburse and defend the
Subscribers, the Subscribers’ officers, directors, agents, affiliates, control
persons, and principal shareholders, against any claim, cost, expense,
liability, obligation, loss or damage (including reasonable legal fees) of any
nature, incurred by or imposed upon the Subscriber or any such person which
results, arises out of or is based upon (i) any material misrepresentation by
Company or breach of any warranty by Company in this Agreement or in any
Exhibits or Schedules attached hereto, or other agreement delivered pursuant
hereto; or (ii) after any applicable notice and/or cure periods, any breach or
default in performance by the Company of any covenant or undertaking to be
performed by the Company hereunder, or any other agreement entered into by the
Company and Subscriber relating hereto.

     

    (b)           Each
Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company
and each of the Company’s officers, directors, agents, affiliates, control
persons, and principal shareholders against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees) of any nature,
incurred by or imposed upon the Company or any such person which results, arises
out of or is based upon (i) any material misrepresentation by such Subscriber in
this Agreement or in any Exhibits or Schedules attached hereto, or other
agreement delivered pursuant hereto; or (ii) after any applicable notice and/or
cure periods, any breach or default in performance by such Subscriber of any
covenant or undertaking to be performed by such Subscriber hereunder, or any
other agreement entered into by the Company and Subscribes relating
hereto.

     

    (c)           The
procedures set forth in Section 12.6 shall apply to the indemnifications set
forth in Sections 11(a) and 11(b) above.

     

    12.           Registration
Rights.  The Company and the Subscribers will execute a
Registration Rights Agreement, dated as of the date hereof, prior to
Closing.  The respective rights and obligations of the Company and the
Subscribers relating to the registration of the Securities are delineated
therein.

     

    13.           Miscellaneous.

     

    (a)           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be either (i) personally served, (ii) deposited in the
mail, registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, electronic mail, or facsimile, addressed as set
forth below or to such other address as such party shall have specified most
recently by written notice.  Any notice or other communication
required or permitted to be given hereunder shall be deemed effective (a) upon
hand delivery or delivery by facsimile, with accurate confirmation generated by
the transmitting facsimile machine, at the address or number designated below
(if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such
notice is to be received), (b) on the second business day following the date of
mailing by express courier service, fully prepaid, addressed to such address, or
upon actual receipt of such mailing, or (c) upon acknowledgment of by the
recipient of receipt by electronic mail, whichever shall first
occur.  The addresses for such communications shall be:

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (i)
      if to the Company, to:

            	
              HemoBioTech,
      Inc.

            

    

     

    
      	
               
      

            	
              5001
      Spring Valley Road

            

    

     

    
      	
               
      

            	
              Suite
      1040-West

            

    

     

    
      	
               
      

            	
              Dallas,
      Texas  75244

            

    

     

    
      	
               
      

            	
              Attention:
      Dr. Arthur P. Bollon, Ph.D.

            

    

     

    
      	
               
      

            	
              Telephone:
      (972) 455-8950

            

    

     

    With a copy
to:                            Robert
H. Cohen, Esq.

     

    Greenberg Traurig, LLP

     

    200 Park Avenue

     

    New York,
N.Y.  10116

     

    Email: cohenr@gtlaw.com

     

    Fax: (212) 801-6400

     

    
      	
               
      

            	
              (ii)
      if to the Subscribers, to the address and facsimile number indicated on
      the signature pages hereto

            

    

     

    
      	
               
      

            	
              with
      a copy to:

            	
              Meyers
      Associates, L.P.

            

    

     

    
      	
               
      

            	
                                                            
      45 Broadway, 2nd
      Floor

            

    

     

    
      	
               
      

            	
                                                            
      New York, N.Y.  10006

            

    

     

    
      	
               
      

            	
                                                            
      Email:

            

    

     

    
      	
               
      

            	
                                                            
      Fax: (212) 742-4222

            

    

     

    (b)           Entire
Agreement.  This Agreement and other documents delivered in
connection herewith represent the entire agreement between the parties hereto
with respect to the subject matter hereof and may be amended only by a writing
executed by all parties.  Neither the Company nor the Subscribers have
relied on any representations not contained or referred to in this Agreement and
the documents delivered herewith, except as contained in the
Reports.

     

    (c)           Assignment.  No
right or obligation of any party may be assigned by that party without the prior
written consent of all other parties.  This Agreement will be binding
on the successors and assigns of all parties hereto.

     

    (d)           Counterparts.  This
Agreement may be executed by facsimile transmission, and in counterparts, all of
which together will be deemed one original.

     

    (e)           Law Governing this
Agreement.  This Agreement shall be governed by
and construed in accordance with the laws of the State of
Delaware  without regard to principles of conflicts of
laws.  Any action brought by any party hereto concerning the
transactions contemplated by this Agreement shall be brought only before the
United States District Court for the District of Delaware or the state courts of
Delaware, as appropriate.  All parties to this Agreement hereby submit
to the jurisdiction of such courts and hereby waive their right to a trial by
jury.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (f)           Severability.  In
the event that any provision of this Agreement or any other agreement delivered
in connection herewith is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent
that it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.

     

    (g)           Headings.  All
headings contained herein are inserted only for convenience and ease of
reference and are not to be considered in the construction or interpretation of
any provision of this Agreement.

     

    

     

    [Signature
page to follow]

     

    

     

    
      
        
           

        

         

      

      
        16

        
          

        

      

      
         

      

    

    SIGNATURE PAGE TO
SUBSCRIPTION AGREEMENT

     

    In
Witness Whereof, the parties have entered into this Agreement as of the
date first written above.

    
 

    
                                  HemoBioTech,
Inc.

                                  A Delaware
corporation

       

                                   

       

                                  By:________________________________

                                Dr. Arthur P. Bollon,
Ph.D.

                                Chief Executive
Officer

       

       

      
        
          	
                  SUBSCRIBER

                	
                  PURCHASE
      PRICE

                	
                  UNITS

                
	
                   

                  _______________________________________

                  (Signature)

                   

                  Name:

                   

                  Address:

                   

                  Fax:

                   

                  Email:

                   

                	
                  $ex_10-20.htm

    Exhibit 10.20

     

    
      REGISTRATION
RIGHTS AGREEMENT

       

       

      THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made effective
as of ___________ __, 2007, by and among HemoBioTech, Inc., a Delaware
corporation (the “Company”), and the investors
signatory hereto (each a “Purchaser” and collectively,
the “Purchasers”).

       

       

      RECITALS

       

       

      A.           Each
Purchaser has executed and delivered to the Company a Subscription Agreement
(the “Subscription
Agreement”) to purchase Units comprised of the Company’s Common Stock,
par value $.001 per share (the “Common Stock”) and Warrants
(the “Warrants”) to
purchase additional shares of Common Stock; and

       

       

      B.           As
a condition of the Subscription Agreement, the Company is required to execute
and deliver this Agreement to the Purchasers to provide for certain registration
rights with respect to Common Stock and shares of Common Stock underlying the
Warrants (“Warrant
Shares”) upon the terms and conditions set forth herein.

       

       

      NOW,
THEREFORE, in consideration of these premises and the mutual promises and
covenants hereinafter set forth and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

       

      1. Definitions.  In
addition to the terms defined elsewhere in this Agreement, the following
capitalized terms shall have the following meanings:

       

       

      “Business Day” means any day
other than a Saturday, Sunday or legal holiday in the State of
Texas.

       

       

      “Effectiveness Date” means,
with respect to the Registration Statement to be filed pursuant to Section 2(a), the
earlier of (a) the 90th business day from the date on which such Registration
Statement is filed, and (b) the date on which the SEC declares the Registration
Statement effective.

       

       

      “Effectiveness Period” is
defined in Section 2(a).

       

       

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

       

       

      “Filing Date” means, with
respect to the Registration Statement to be filed hereunder, the date that is
forty-five (45) business days from the date hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Holder” or “Holders” means the holder or
holders, as the case may be, from time to time of Registrable Securities
(including any permitted assignee).

       

       

      “Holders’ Representative” means Meyers
Associates, L.P., or any other person that has been appointed by the Holders of
a majority of the Registrable Securities to act as representative of the Holders
for purposes of this Agreement.

       

       

      “Indemnified Party” is defined
in Section 5(c).

       

       

      “Indemnifying Party” is defined
in Section 5(c).

       

       

      “Losses” is defined in Section 5(a).

       

       

      “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.

       

       

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

       

       

      “Registrable Securities” means
the shares of Common Stock sold pursuant to Subscription Agreements, Warrant
Shares issuable upon any exercise of Warrants, and any shares issued upon any
stock split, dividend or other distribution, recapitalization or similar event
with respect to the foregoing; provided, that the
Company shall have the right to reduce the number of Registrable Securities if
in the reasonable opinion of counsel to the Company, the Registration Statement
could not be declared effective by the SEC without such reduction as a result of
SEC guidance pursuant to Rule 415 promulgated under the Securities
Act.  Any such reduction shall be pro rata among all
Holders.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Registration Statement” means the registration
statements required to be filed hereunder, including (in each case) the
Prospectus, amendments and supplements to the 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 the registration statement.

       

       

      “Rule 144” means Rule 144
promulgated by the SEC 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 SEC having substantially the same effect as such
Rule.

       

       

      “Rule 144(k)” means
Rule 144(k) promulgated by the SEC 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 SEC having substantially the same effect as
such Rule.

       

       

      “Rule 415” means
Rule 415 promulgated by the SEC 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 SEC having substantially the same effect as
such Rule.

       

       

      “Rule 424” means
Rule 424 promulgated by the SEC 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 SEC having substantially the same effect as
such Rule.

       

       

      “SEC” means the U.S. Securities
and Exchange Commission.

       

       

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

       

       

      “Selling Shareholder
Questionnaire” is defined in Section
2(e).

       

       

      “Trading Day” means (i) a day on which
Common Stock is traded or quoted on a Trading Market, or (ii) if Common Stock is
not traded or quoted on a Trading Market, a day on which 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 to its functions
of reporting price); provided, that in the event that Common Stock is not traded
or quoted as set forth in (i), and (ii) hereof, that Trading Day shall mean a
Business Day.

       

       

      “Trading Market” means the
following markets or exchanges on which Common Stock is listed or quoted for
trading on the date in question: the NASDAQ Capital Market, the American Stock
Exchange, the New York Stock Exchange, the NASDAQ Global Market or the OTC
Bulletin Board.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      2. Registration.

       

      (a) Required
Registration.  No later than the Filing Date, the Company shall
prepare and file with the SEC the Registration Statement covering the resale of
all of the Registrable Securities which a Holder has requested to be included in
such Registration Statement (subject to the proviso set forth in the definition
of “Registrable Securities” above) and for which such Holder has provided the
Company with a completed Selling Shareholder Questionnaire, which offering shall
be made on a continuous basis pursuant to Rule 415. The Registration
Statement shall be on Form SB-2 (or other applicable form at the discretion of
the Company). The Registration Statement shall contain (except if otherwise
directed by the Holders) the “Plan of Distribution”
substantially in the form attached hereto as Annex A (which may be modified
as required by the Securities Act and the rules and regulations thereunder and
to respond to comments, if any, received from the SEC).  The Company
shall cause the Registration Statement to be declared effective under the
Securities Act prior to the Effectiveness Date and shall use its commercially
reasonable efforts to keep the Registration Statement continuously effective
under the Securities Act until the date when all Registrable Securities covered
by the Registration Statement (a) have been sold pursuant to the Registration
Statement or an exemption from the registration requirements of the Securities
Act or (b) may be sold without any volume or other restrictions pursuant to
Rule 144(k) (the “Effectiveness
Period”).

       

      (b) Liquidated
Damages. If:
(i) the Registration Statement is not filed on or prior to the Filing Date, or
(ii) the Company fails to file with the SEC a request for acceleration of the
Registration Statement in accordance with Rule 461 promulgated by the SEC
pursuant to the Securities Act, within ten (10) Trading Days of the date that
the Company is notified (orally or in writing, whichever is earlier) by the SEC
that the Registration Statement will not be “reviewed” or will not be subject to
further review, or (iii) prior to the effective date of the Registration
Statement, the Company fails to file a pre-effective amendment and otherwise
respond in writing to comments made by the SEC in respect of the Registration
Statement within thirty (30) Trading Days after the receipt of comments by or
notice from the SEC that such amendment is required in order for the
Registration Statement to be declared effective, or (iv) the Registration
Statement is not declared effective by the SEC by the Effectiveness Date (any
such failure or breach being referred to as an “Event”, and for purposes of
clauses (i) and (iv) the date on which such Event occurs, and for purpose of
clause (ii) the date on which such ten (10) Trading Day period is exceeded, and
for purpose of clause (iii) the date which such thirty (30) Trading Day period
is exceeded being referred to as “Event Date”), then, in
addition to any other rights the Holders may have hereunder or under applicable
law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the
applicable Event is cured, the Company shall pay to each Holder an amount in
cash or Common Stock, or a combination thereof, as partial liquidated damages
and not as a penalty, equal to 2% of the aggregate purchase price paid by such
Holder pursuant to the Subscription Agreement for any unregistered Registrable
Securities then held by such Holder, which amount shall be payable on the first
monthly anniversary of each such Event Date and each monthly anniversary
thereafter (if the applicable Event shall not have been cured by such
date).  The number of shares of Common Stock issuable in lieu of cash
hereunder shall be equal to A

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

        divided
by B, in which A equals the dollar amount of accrued and payable partial
liquidated damages to be paid in shares of Common Stock and B equals the average
of the closing price on the Trading Market for the ten (10) Trading Days
immediately preceding the date of payment of such partial liquidated
damages.  The decision whether to pay partial liquidated damages
hereunder in shares of Common Stock or cash shall be at the discretion of the
Company.  Except as otherwise provided herein, if at any time the
Company pays partial liquidated damages partially in cash and partially in
shares of Common Stock, then such payment shall be distributed ratably among the
Holders based upon the Subscription Amount paid by each Holder.  The
parties agree that (1) the Company shall not be liable for liquidated damages
under this Agreement with respect to any Warrants or Warrant Shares and (2)
liquidated damages shall cease to accrue on the eight (8) month anniversary of
the Filing Date.

      

       

      (c) Sufficient Number of Shares
Registered. In the event the number
of shares of Common Stock covered under a Registration Statement filed pursuant
to Section 2(a) is
insufficient to cover all of the Registrable Securities which such Registration
Statement is required to cover (subject to the proviso set forth in the
definition of “Registrable Securities” above), the Company shall use its best
efforts to amend the Registration Statement, or file a new Registration
Statement (on the short form available therefor, if applicable), or both, so as
to cover at least 100% of the Registrable Securities, in each case, as soon as
practicable.  The Company shall use its commercially reasonable
efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable following the filing thereof.

       

      (d) Participation in
Underwritten Registrations.  No Holder may participate in any
underwritten registration with respect to the Registrable Securities unless such
Holder completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements, lock-up letters and other documents
reasonably required under the terms of such underwriting
agreements.

       

      (e) Other
Requirements.  In connection with any Registration Statement
under Section
2(a), Holders whose Registrable Securities are included therein shall
provide such information and shall execute and deliver to the Company such
documents, including, but not limited to, a selling shareholder questionnaire in
customary form and substance reasonably satisfactory to the Company (“Selling Shareholder
Questionnaire”), as the Company may reasonably request in order to effect
such registration pursuant to this Agreement and in accordance with applicable
securities laws.

       

      3. Registration
Procedures.  In connection with the Company’s registration
obligations hereunder, the Company shall use commercially reasonable efforts
to:

       

      (a) Not less
than three (3) Trading Days prior to the filing of the Registration Statement or
of any related Prospectus or any amendment or supplement thereto, (i) furnish to
the Holders’ Representative copies of all such documents substantially in the
form proposed to be filed (including documents incorporated or deemed
incorporated by reference to the extent requested by such Person) which
documents will be subject to the review of the Holders’ Representative, and (ii)
subject, if appropriate, to the execution of confidentiality agreements in form
acceptable to the Company, 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.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (b) (i)
Prepare and file with the SEC such amendments, including post-effective
amendments, to the Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep the Registration Statement continuously
effective as to the applicable Registrable Securities for the Effectiveness
Period; (ii) cause the related Prospectus to be amended or supplemented by any
required Prospectus supplement, and as so supplemented or amended to be filed
pursuant to Rule 424; and (iii) respond as promptly as reasonably
practicable to any comments received from the SEC with respect to the
Registration Statement or any amendment thereto and, as promptly as reasonably
practicable, upon request, provide the Holders’ Representative true and complete
copies of all correspondence from and to the SEC relating to
the Registration Statement (subject, if appropriate, to the execution of
confidentiality agreements in form acceptable to the Company).

       

      (c) Notify
the Holders of Registrable Securities to be sold as promptly as reasonably
possible (and, in the case of (i)(A) below, not less than three (3) Trading Days
prior to such filing) and (if requested by any such Person) confirm such notice
in writing promptly following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to the Registration Statement is proposed
to be filed; (B) when the SEC notifies the Company whether there will be a
“review” of the Registration Statement and whenever the SEC comments in writing
on the Registration Statement (the Company shall upon request provide true and
complete copies thereof and all written responses thereto to the Holders’
Representative, subject, if appropriate, to the execution of confidentiality
agreements in form acceptable to the Company); and (C) with respect to the
Registration Statement or any post-effective amendment, when the same has become
effective; (ii) of any request by the SEC or any other federal or state
governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or
Prospectus or for additional information; (iii) of the issuance by the SEC or
any other federal or state governmental authority of any stop order suspending
the effectiveness of the 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; and (v) of the occurrence of any
event or passage of time that makes the financial statements included in the
Registration Statement ineligible for inclusion therein or any statement made in
the Registration Statement or Prospectus or any document incorporated or deemed
to be incorporated therein by reference untrue in any material respect or that
requires any revisions to the Registration Statement, Prospectus or other
documents so that, in the case of the Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.

       

      (d) Avoid the
issuance of, or, if issued, obtain the withdrawal of (i) any order suspending
the effectiveness of the Registration Statement, or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable
moment.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (e) Promptly
deliver to each Holder no later than five (5) business days after the
Effectiveness Date, without charge, two (2) copies of the Prospectus or
Prospectuses (including each form of prospectus) and each amendment or
supplement thereto (and, upon the request of the Holder such additional copies
as such Persons may reasonably request in connection with resales by the Holder
of Registrable Securities).  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, except after
the giving of any notice pursuant to Section 3(c)(ii)-(v).

       

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

       

      (g) If
requested by the Holders, cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be delivered to a transferee pursuant to the Registration Statement, which
certificates shall be free, to the extent permitted by the Subscription
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 Section 3(c)(v),
as promptly as reasonably possible, prepare a supplement or amendment, including
a post-effective amendment, to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus
will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not
misleading.

       

      (i) Comply in
all material respects with all applicable rules and regulations of the SEC
relating to the registration of the Registrable Securities pursuant to the
Registration Statement or otherwise.

       

      (j) The
Company shall not be required to include in any Registration Statement the
Registrable Securities of any Holder that does not complete a Selling
Shareholder Questionnaire.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (k) Make all
documents, files, books, records, officers, directors and employees of the
Company reasonably available to the Holders’ Representative, one legal counsel
to the Holders and one firm of accountants retained by the Holders
(collectively, the “Inspectors”), and make such
other accommodations as are reasonably necessary for the Inspectors, if any, to
perform a due diligence review of the Company; provided, however, that all
such information (“Confidential
Information”) will be kept confidential and not utilized by the
Inspectors except as contemplated herein and except as required by law or court
order.  The term Confidential Information also includes any
information included in a draft Registration Statement or any related Prospectus
or any amendment or supplement thereto provided to a Holder pursuant to Section 3(a); for the
avoidance of doubt, however, the Company shall not furnish to Holders, without
their prior approval, any information that constitutes or might constitute
material, non-public information.  The term Confidential Information
does not include information that (a) is already in possession of such
other party (other than that which is subject to another confidentiality
agreement or unless obtained from a third party where the receiving party knows
that the third party was subject to a confidentiality agreement),
(b) becomes generally available to the public other than by disclosure in
violation of this Agreement or any other agreement to which a Holder is a party,
or (c) becomes available on a non-confidential basis from a source other
than the Company unless obtained from a third party where the receiving party
knows that the third party was subject to a confidentiality
agreement.  Each Holder agrees that it shall, upon learning that
disclosure of such Confidential Information is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
for, the information deemed confidential.

       

      (l) Hold in
confidence and not make any disclosure of information concerning any Holder
provided to the Company unless (a) such information is already in possession of
the Company, (b) such information becomes available to the Company on a
non-confidential basis from a person other than such Holder who is not known by
the Company to be otherwise bound by a confidentiality or comparable agreement
with such Holder, (c) disclosure of such information is necessary to comply
with federal or state securities laws, (d) the disclosure of such
information is necessary to avoid or correct a misstatement or omission in any
Registration Statement or Prospectus, (e) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a
court or governmental body of competent jurisdiction, (f) such information
has been made generally available to the public other than by disclosure in
violation of this Agreement or any other agreement to which the Company is a
party, or (g) such Holder consents to the form and content of any such
disclosure (the Holders shall be deemed to consent to the inclusion of any
information provided in the Selling Shareholder Questionnaire, in the
Registration Statement, any Prospectus related thereto, and any amendments or
supplements thereto).  The Company agrees that it shall, upon learning
that disclosure of such information concerning any Holder is sought in or by a
court or governmental body of competent jurisdiction or through other means,
give prompt written notice to such Holder and allow such Holder, at the Holder’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (m) File the
reports required to be filed by it under the Securities Act and the Exchange Act
and the rules and regulations adopted by the SEC thereunder so long as the
Holders own any Registrable Securities, but in no event longer than two (2)
years; provided, however, the Company
may delay any such filing but only pursuant to Rule 12b-25 under the
Exchange Act, and the Company shall use commercially reasonable efforts to take
such further action as any Holder of Registrable Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Registrable Securities without registration under the Securities Act within
the limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, or (b) any similar rule or regulation hereafter adopted by
the SEC. Upon the request of any Holder of Registrable Securities, the Company
will deliver to such Holder a written statement as to whether it has complied
with such requirements.

       

      4. Registration
Expenses.  All fees and expenses incident to the performance of
or compliance with this Agreement by the Company (including, without limitation,
fees and expenses of one counsel for the Holders’ Representative with respect to
the review of the Registration Statement, “Holders’ Representative Counsel”)
shall be borne by the Company whether or not any Registrable Securities are sold
pursuant to the Registration Statement, other than fees and expenses of counsel
(other than the Holder’s Representative Counsel referenced above) or any other
advisor retained by the Holders and discounts, fees and commissions with
respect to the sale of any Registrable Securities by the Holders. The fees and
expenses to referred to in the foregoing sentence to be borne by the Company
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 Common Stock is then listed
for trading, and (B) to effect compliance with applicable state securities or
Blue Sky laws), (ii) printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities and of printing
Prospectuses), (iii) fees and disbursements of counsel for the Company, (iv)
Securities Act liability insurance, if the Company so desires such insurance,
and (v) fees and expenses of all other Persons retained by the Company in
connection with the consummation of the transactions contemplated by this
Agreement.  In addition, the Company shall be responsible for all of
its internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange or other trading market as required hereunder.

       

      5. Indemnification

       

      (a) Indemnification by the
Company. The Company shall, notwithstanding any termination of this
Agreement, indemnify and hold harmless each Holder, the officers, directors,
agents and employees of each of them, each Person who controls any such Holder
(within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) and the officers, directors, agents
and employees of each such controlling Person, to the fullest extent permitted
by applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, reasonable attorneys’ fees)
and expenses (including the cost (including without limitation, reasonable
attorneys’ fees) and expenses relating to an Indemnified Party’s actions to
enforce the provisions of this Section 5)
(collectively, “Losses”), as incurred, to the
extent arising out of or relating to any untrue or alleged 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 in any
preliminary prospectus, or arising out of or relating to 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 

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

        extent,
but only to the extent, that (1) such untrue (or alleged untrue) statements or
omissions (or alleged omissions) are based solely upon information regarding
such Holder furnished (or in the case of an omission, results from the failure
of such Holder to fully or accurately complete the Selling Shareholder
Questionnaire) in writing to the Company by or on behalf of such Holder
expressly for use therein, or to the extent that such information relates to
such Holder or such Holder’s proposed method of distribution of Registrable
Securities and which proposed method was reviewed by such Holder expressly for
use in the Registration Statement, such Prospectus or such form of Prospectus or
in any amendment or supplement thereto (it being understood that the Holder has
reviewed Annex A hereto
for this purpose), (2) in the case of an occurrence of an event of the type
specified in Section 3(c)(ii)-(v),
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(c), or
(3) the failure of the Holder to deliver a Prospectus as amended or supplemented
prior to the confirmation of a sale.  The Company shall notify the
Holders promptly of the institution, threat or assertion of any Proceeding of
which the Company is aware in connection with the transactions contemplated by
this Agreement.

      

       

      (b) Indemnification by
Holders. Each Holder shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling Persons, to the fullest extent
permitted by applicable law, from and against all Losses, as incurred, to the
extent arising out of or based upon: (x) such Holder’s failure to comply with
the prospectus delivery requirements of the Securities Act or (y) any untrue or
alleged 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 in any preliminary prospectus, or arising out of or
relating to 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 the
Prospectus or form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading (i) to the extent, but
only to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is contained in any information so furnished (or
in the case of an omission, results from the failure of such Holder to fully or
accurately complete the Selling Shareholder Questionnaire) in writing by or on
behalf of such Holder to the Company specifically for inclusion in the
Registration Statement or such Prospectus or (ii) to the extent that (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished (or in the case of an omission, results from the failure of
such Holder to fully or accurately complete the Selling Shareholder
Questionnaire) in writing to the Company by or on behalf of such Holder
expressly for use therein, or to the extent that such information relates to
such Holder or such Holder’s proposed method of distribution of Registrable
Securities and which proposed method was reviewed by such Holder expressly for
use in the Registration Statement (it being understood that the Holder has
reviewed Annex A hereto
for this purpose), 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(c)(ii)-(v),
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 

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

        Advice
contemplated in Section 6(c), or
(3) the failure of the Holder to deliver a Prospectus as amended or supplemented
prior to the confirmation of a sale. In no event shall the liability of any
selling Holder hereunder be greater in amount than the gross proceeds received
or to be received by the Holder with respect to the sale of its Registrable
Securities.

      

       

      (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 have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the
Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that the
failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that such failure shall have materially
prejudiced the Indemnifying Party.

       

       

      An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in (but not control) 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; (2) the Indemnifying Party shall have failed to assume
the defense of such Proceeding in a timely manner 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 in writing that a conflict
of interest would exist if the same counsel were to represent such Indemnified
Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate
counsel at the expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and the reasonable fees and
expenses of one separate counsel for all Indemnified Parties in any matters
related on a factual basis shall be at the expense of the Indemnifying Party).
The Indemnifying Party shall not be liable for any settlement of any such
Proceeding affected without its written consent. 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.

       

       

      All
reasonable 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 fifteen
(15) Business Days of written notice thereof to the Indemnifying Party; provided, that the
Indemnified Party shall promptly reimburse the Indemnifying Party for that
portion of such fees and expenses applicable to such actions for which such
Indemnified Party is not entitled to indemnification hereunder, determined based
upon the relative faults of the parties.

       

      
        
          
          

        

        
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      (d) Contribution. If a
claim for indemnification under Section 5(a) or
Section 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.

       

      (e) The
parties hereto agree that it would not be just and equitable if contribution
pursuant to 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 Section
5(d).  Notwithstanding the provisions of Section 5(d), no
Holder shall be required to indemnify or contribute, in the aggregate, pursuant
to this Article
5, 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 damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission, except in the case of fraud by such Holder. 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.  No party guilty of fraudulent misrepresentation
pursuant to Section 11(f) of the Securities Act shall be entitled to
contribution from any other party.

       

      6. Miscellaneous.

       

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

       

      (b) 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.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      (c) 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 Section 3(c)(ii)-(v),
such Holder will forthwith discontinue disposition of such Registrable
Securities under the Registration Statement until such Holder’s receipt of the
copies of the supplemented Prospectus and/or amended Registration Statement 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.

       

      (d) Amendments and
Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, unless the
same shall be in writing and signed by the Company and the Holders of at least
sixty-six percent (66%) of the then outstanding Registrable Securities (assuming
the exercise of all Warrants, whether exercised or not), whereupon such
amendment, modification, supplement or waiver shall be binding on all Holders;
provided, however, that no
consideration shall be offered or paid to any Holder to amend or consent to a
waiver or modification of any provision of this Agreement unless the same
consideration (on a pro-rata basis) is also offered to all of the Holders under
this Agreement.

       

      (e) Notices. All notices
that are required or may be given pursuant to this Agreement must be in writing
and delivered personally, by a recognized courier service, by a recognized
overnight delivery service, or by registered or certified mail, postage prepaid,
to the parties at the following addresses (or to the attention of such other
person or such other address as any party may provide to the other parties by
notice in accordance with this section):

       

      If to the Company:

      

      5001
Spring Valley Rd.

      Suite
1040 - West

      Dallas,
Texas 75244

      Attention: Dr. Arthur P.
Bollon

      Telephone: (972) 455-8950

      

      With a copy to:

      

      Greenberg Traurig, LLP

      Met Life Building

      200 Park Avenue

      New York, NY 10166

      Attention: Robert H. Cohen,
Esq.

      Telephone: (212) 801-9200

      

      If to a Purchaser:

      

      At the address indicated on the
signature page for such Purchaser

      

      Any such
notice or other communication will be deemed to have been given and received
(whether actually received or not) on the day it is personally delivered or
delivered by courier or overnight delivery service or, if mailed, when actually
received.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (f) Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon
each of the parties and their respective successors and permitted assigns.

       

      (g) Execution and
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.

       

      (h) Governing Law. This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Delaware without regard to the conflicts of laws principles
thereof. The parties hereto hereby irrevocably agree that any suit or proceeding
arising directly and/or indirectly pursuant to or under this Agreement, shall be
brought solely in the federal or state courts sitting in Delaware (collectively,
the “Courts”).  By
its execution hereof, the parties hereby covenant and irrevocably submit to the
in personam
jurisdiction of the Courts and agree that any process in any such action may be
served upon any of them personally, or by certified mail or registered mail upon
them or their agent, return receipt requested, with the same full force and
effect as if personally served upon them in Delaware.  The parties
hereto waive any claim that any such jurisdiction is not a convenient forum for
any such suit or proceeding and any defense or lack of in personam jurisdiction with
respect thereto.

       

      (i) Cumulative
Remedies.  Subject to the first sentence of Section 6(a), the remedies
provided herein are cumulative and not exclusive of any remedies provided by
law.

       

      (j) 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 commercially 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.

       

      (k) Interpretation. The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.  References to Sections
mean Sections of this Agreement unless otherwise stated.  Any term
defined in this Agreement shall be deemed to include derivations of such term
(e.g., the term “Indemnified Party” shall include “Indemnified
Parties”).

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (l) 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 independently protect and
enforce its rights, including without limitation the rights arising out of this
Agreement, and it shall not be necessary for any other Purchaser to be joined as
an additional party in any proceeding for such purpose.  EACH
PURCHASER REPRESENTS THAT IS HAS BEEN REPRESENTED BY ITS OWN SEPARATE LEGAL
COUNSEL IN ITS REVIEW AND NEGOTIATION OF THIS AGREEMENT.  The Company
has elected to provide all Purchasers with the same terms and documents for the
convenience of the Company and not because it was required to do so by the
Purchasers.

       

      (m) Assignment of Registration
Rights. The rights of any Holder under this Agreement shall be
automatically assignable by such Holder to any transferee of all or any portion
of Registrable Securities (other than pursuant to a public sale or Rule 144) if:
(1) such Holder agrees in writing with the transferee or assignee to assign
such rights, and a copy of such agreement is furnished to the Company
promptly after such assignment; (2) the Company is, promptly after such
transfer or assignment, furnished with written notice of (i) the name and
address of such transferee or assignee, and (ii) the securities with
respect to which such registration rights are being transferred or assigned; and
(3) at or before the time the Company receives the written notice
contemplated by clause (2) of this sentence the transferee or assignee
agrees in writing with the Company to be bound by all of the provisions
contained herein.

       

      (n) Deferral
Period.  With respect to any Registration Statement filed or to
be filed pursuant to Section 2, if the
Company determines that, in its good faith judgment, it would (because of the
existence of, or in reasonable anticipation of, any acquisition or corporate
reorganization or other transaction, financing activity, stock repurchase or
other material development involving the Company or any subsidiary, or the
unavailability for reasons beyond the Company’s control of any required
financial statements or other material information, or any other event or
condition material to the Company or any subsidiary) be materially
disadvantageous to the Company to proceed with such Registration Statement or
that the Company is required by applicable law, rules or regulations not to
proceed with the Registration Statement (a “Material Development
Condition”), then the Company shall, notwithstanding any other provisions
of this Agreement, be entitled, upon the giving of a written notice that a
Material Development Condition has occurred (a “Delay Notice”) from an officer
of the Company to the Holders’ Representative, as the representative of the
Purchasers, (i) to cause sales of Registrable Securities by the Purchasers
pursuant to such Registration Statement to cease, (ii) to cause such
Registration Statement to be withdrawn and the effectiveness of such
Registration Statement suspended, or (iii) in the event no such Registration
Statement has yet been filed or declared effective, to delay filing or
effectiveness of any such Registration Statement until, in the good faith
judgment of the Company, such Material Development Condition shall be disclosed
or no longer exists (notice of which the Company shall promptly deliver to the
Holders’ Representative, as the representative of the
Purchasers).  Notwithstanding the foregoing provisions of this Section 6(n), in the
event a Registration Statement is filed and subsequently withdrawn by reason of
any existing or anticipated Material Development Condition as provided

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

         

        above,
the Company shall use commercially reasonable efforts to cause a new
Registration Statement covering the Registrable Securities to be filed with the
SEC as soon as reasonably practicable after such Material Development Condition
ceases to exist or, if sooner, as soon as practicable after the expiration of
such ninety (90) day period.

      

      

      (o) Entire
Agreement.  This Agreement, any annexes hereto and any writings
incorporated herein by reference set forth the entire understanding of the
parties hereto with respect to the subject matter hereof. The recitals hereto
are a material part of this Agreement and are incorporated in this Agreement by
reference as if fully set forth herein.

      

      [Signatures
follow]

      
        
          
            

             

          

           

        

        
          16

          
            

          

        

        
           

        

      

      

       

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

       

      HEMOBIOTECH,
INC.

      

      

      By: _____________________________________                                                               

                            
Dr. Arthur P. Bollon, Ph.D.

            
Chief Executive Officer

      

      

      

      

       

      
        
          
             

          

           

        

        
          
          

          
            

          

        

        
           

        

      

       

       

      (PURCHASER’S
SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)

       

      

      

      INDIVIDUALS:

      

      

      Signature:_______________________________________

      Print
Name:______________________________________

      

      

      Signature:_______________________________________

      Print
Name:______________________________________

      
 

      

      

      ENTITY:

      

                                                                                                                     

       

      By:____________________________________________                                                               

                 Name:

                 Title:

      

      

      ADDRESS:

      

                                                                                                                      

         

      

    

    
      
Attention:______________________________________

      

      Telephone:_____________________________________

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