Document:

Comprehensive Healthcare-Nite Capital Convertible Note 3/05

    THIS
      NOTE
      AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE
      COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED
      FOR
      SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO COMPREHENSIVE HEALTHCARE SOLUTIONS, INC. THAT SUCH REGISTRATION
      IS NOT REQUIRED.

    

    

    5%
      CONVERTIBLE NOTE

    

    FOR
      VALUE
      RECEIVED, COMPREHENSIVE HEALTHCARE SOLUTIONS, INC., a Delaware corporation
      (hereinafter called "Borrower"), hereby promises to pay to Nite Capital, LP
      (the
      "Holder") or order, without demand, the sum of one hundred thousand ($100,000),
      with simple interest accruing at the rate described below, on May 29, 2007
      (the
      "Maturity Date").

    

    This
      Note
      has been entered into pursuant to the terms of a subscription agreement between
      the Borrower and the Holder, dated of even date herewith (the "Subscription
      Agreement"), and shall be governed by the terms of such Subscription Agreement.
      Unless otherwise separately defined herein, all capitalized terms used in this
      Note shall have the same meaning as is set forth in the Subscription Agreement.
      The following terms shall apply to this Note:

    

    ARTICLE
      I

    

    GENERAL
      PROVISIONS

    

    1.1
      Interest Rate. Subject to Section 4.7 hereof, interest payable on this Note
      shall accrue from the date hereof at a rate per annum (the "Interest Rate")
      equal to five percent (5%), subject to adjustment pursuant to Section 1.2.
      Interest on the principal amount outstanding shall be payable quarterly, in
      arrears, commencing on March 1, 2006 and on the first day of each third calendar
      month thereafter and on the Maturity Date, whether by acceleration or otherwise.
      Interest shall be computed for actual days elapsed on the basis of a 360 day
      year consisting of twelve 30-day months.

    

    1.2
      Payment Grace Period. From and after the 10th day after an Event of Default
      under Section 3.1, the Interest Rate applicable to any unpaid amounts owed
      hereunder shall be increased to sixteen percent (16%) per annum.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    1.3
      Conversion Privileges. The Conversion Privileges set forth in Article II shall
      remain in full force and effect immediately from the date hereof and until
      the
      Note is paid in full regardless of the occurrence of an Event of Default. The
      Note shall be payable in full on the Maturity Date, unless previously converted
      into Common Stock in accordance with Article II hereof; provided, that if an
      Event of Default has occurred, the Holder may elect to extend the Maturity
      Date
      by the amount of days of the pendency of the Event of Default.

    

    

    ARTICLE
      II

    

    CONVERSION
      RIGHTS

    

    The
      Holder shall have the right to convert the principal and accrued and unpaid
      interest due under this Note into Shares of the Borrower's Common Stock, $.10
      par value per share ("Common Stock") as set forth below.

    

    2.1
      Conversion into the Borrower's Common Stock.

    

    (a)
      The
      Holder shall have the right from and after the date of the issuance of this
      Note
      and then at any time until this Note is fully paid, to convert any outstanding
      and unpaid principal portion of this Note, and accrued interest, at the election
      of the Holder (the date of giving of such notice of conversion being a
      "Conversion Date") into fully paid and nonassessable shares of Common Stock
      as
      such stock exists on the date of issuance of this Note, or any shares of capital
      stock of Borrower into which such Common Stock shall hereafter be changed or
      reclassified, at the conversion price as defined in Section 2.1(b) hereof (the
      "Conversion Price"), determined as provided herein. Upon delivery to the
      Borrower of a completed Notice of Conversion, a form of which is annexed hereto,
      Borrower shall issue and deliver to the Holder within five (5) business days
      from the Conversion Date (such third day being the "Delivery Date") that number
      of shares of Common Stock for the portion of the Note converted in accordance
      with the foregoing. At the election of the Holder, the Borrower will deliver
      accrued but unpaid interest on the principal amount of the Note being converted
      in the manner provided in Section 1.1 through the Conversion Date directly
      to
      the Holder on or before the Delivery Date (as defined in the Subscription
      Agreement). The number of shares of Common Stock to be issued upon each
      conversion of this Note shall be determined by dividing that portion of the
      principal of the Note and accrued interest to be converted, by the Conversion
      Price.

    

    (b)
      Subject to adjustment as provided in Section 2.1(c) hereof, the Conversion
      Price
      per share shall be $.25.

    

    (c)
      The
      Conversion Price and number and kind of shares or other securities to be issued
      upon conversion determined pursuant to Section 2.1(a), shall be subject to
      adjustment from time to time upon the happening of certain events while this
      Note remains outstanding, as follows:

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    A.
      Reorganization, Consolidation, Merger, etc. In case at any time or from time
      to
      time, the Company shall (a) effect a reorganization, (b) consolidate with or
      merge into any other person or (c) transfer all or substantially all of its
      properties or assets to any other person under any plan or arrangement
      contemplating the dissolution of the Company, then, in each such case, as a
      condition to the consummation of such a transaction, proper and adequate
      provision shall be made by the Company whereby the Holder of this Note, on
      the
      conversion hereof as provided in Article II, at any time after the consummation
      of such reorganization, consolidation or merger or the effective date of such
      dissolution, as the case may be, shall receive, in lieu of the Common Stock
      (or
      Other Securities) issuable on such conversion prior to such consummation or
      such
      effective date, the stock and other securities and property (including cash)
      to
      which such Holder would have been entitled upon such consummation or in
      connection with such dissolution, as the case may be, if such Holder had so
      converted this Note, immediately prior thereto, all subject to further
      adjustment thereafter as provided in Section 2.1(c)(E).

    

    B.
      Dissolution. In the event of any dissolution of the Company following the
      transfer of all or substantially all of its properties or assets, the Company,
      prior to such dissolution, shall at its expense deliver or cause to be delivered
      the stock and other securities and property (including cash, where applicable)
      receivable by the Holder of the Notes after the effective date of such
      dissolution pursuant to this Article II to a bank or trust company (a "Trustee")
      having its principal office in New York, NY, as trustee for the Holder of the
      Notes.

    

    C.
      Continuation of Terms. Upon any reorganization, consolidation, merger or
      transfer (and any dissolution following any transfer) referred to in this
      Article II, this Note shall continue in full force and effect and the terms
      hereof shall be applicable to the Other Securities and property receivable
      on
      the conversion of this Note after the consummation of such reorganization,
      consolidation or merger or the effective date of dissolution following any
      such
      transfer, as the case may be, and shall be binding upon the issuer of any Other
      Securities, including, in the case of any such transfer, the person acquiring
      all or substantially all of the properties or assets of the Company, whether
      or
      not such person shall have expressly assumed the terms of this Note as provided
      in Section 2.1(c)(E). In the event this Note does not continue in full force
      and
      effect after the consummation of the transaction described in this Article
      II,
      then only in such event will the Company's securities and property (including
      cash, where applicable) receivable by the Holder of the Notes be delivered
      to
      the Trustee as contemplated by Section 2.1(c)(B).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    D.
      Share
      Issuance. Until the Expiration Date, if the Company shall issue any Common
      Stock
      except for the Excepted Issuances (as defined in the Subscription Agreement),
      prior to the complete conversion of this Note for a consideration less than
      the
      Purchase Price that would be in effect at the time of such issue, then, and
      thereafter successively upon each such issue, the Purchase Price shall
      automatically and with no action required by the Company or Holder, be reduced
      to such other lower issue price. For purposes of this adjustment, the issuance
      of any security or debt instrument of the Company carrying the right to convert
      such security or debt instrument into Common Stock or of any Note, right or
      option to purchase Common Stock shall result in an adjustment to the Purchase
      Price upon the issuance of the above-described security, debt instrument, Note,
      right, or option and again at any time upon any subsequent issuances of shares
      of Common Stock upon conversion of such conversion or purchase rights if such
      issuance is at a price lower than the Purchase Price in effect upon such
      issuance. The reduction of the Purchase Price described in this Section Section
      2.1(c)(D) is in addition to the other rights of the Holder described in the
      Subscription Agreement.

    

    E.
      Extraordinary Events Regarding Common Stock. In the event that the Company
      shall
      (a) issue additional shares of the Common Stock as a dividend or other
      distribution on outstanding Common Stock, (b) subdivide its outstanding shares
      of Common Stock, or (c) combine its outstanding shares of the Common Stock
      into
      a smaller number of shares of the Common Stock, then, in each such event, the
      Purchase Price shall, simultaneously with the happening of such event, be
      adjusted by multiplying the then Purchase Price by a fraction, the numerator
      of
      which shall be the number of shares of Common Stock outstanding immediately
      prior to such event and the denominator of which shall be the number of shares
      of Common Stock outstanding immediately after such event, and the product so
      obtained shall thereafter be the Purchase Price then in effect. The Purchase
      Price, as so adjusted, shall be readjusted in the same manner upon the happening
      of any successive event or events described herein in this Section 2.1(c)(E).
      The number of shares of Common Stock that the Holder of this Note shall
      thereafter, on the conversion hereof as provided in Article II, be entitled
      to
      receive shall be adjusted to a number determined by multiplying the number
      of
      shares of Common Stock that would otherwise (but for the provisions of this
      Section 2.1(c)(E)) be issuable on such conversion by a fraction of which (a)
      the
      numerator is the Purchase Price that would otherwise (but for the provisions
      of
      this Section 2.1(c)(E)) be in effect, and (b) the denominator is the Purchase
      Price in effect on the date of such conversion.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    F.
      Certificate as to Adjustments. In each case of any adjustment or readjustment
      in
      the shares of Common Stock (or Other Securities) issuable on the conversion
      of
      the Notes, the Company at its expense will promptly cause its Chief Financial
      Officer or other appropriate designee to compute such adjustment or readjustment
      in accordance with the terms of the Note and prepare a certificate setting
      forth
      such adjustment or readjustment and showing in detail the facts upon which
      such
      adjustment or readjustment is based, including a statement of (a) the
      consideration received or receivable by the Company for any additional shares
      of
      Common Stock (or Other Securities) issued or sold or deemed to have been issued
      or sold, (b) the number of shares of Common Stock (or Other Securities)
      outstanding or deemed to be outstanding, and (c) the Purchase Price and the
      number of shares of Common Stock to be received upon conversion of this Note,
      in
      effect immediately prior to such adjustment or readjustment and as adjusted
      or
      readjusted as provided in this Note. The Company will forthwith mail a copy
      of
      each such certificate to the Holder of the Note and any transfer agent of the
      Company.

    

    (d)
      Whenever the Conversion Price is adjusted pursuant to Section 2.1(c) above,
      the
      Borrower shall promptly mail to the Holder a notice setting forth the Conversion
      Price after such adjustment and setting forth a statement of the facts requiring
      such adjustment.

    

    2.2
      Method of Conversion. This Note may be converted by the Holder in whole or
      in
      part as described in Section 2.1(a) hereof and the Subscription Agreement.
      Upon
      partial conversion of this Note, a new Note containing the same date and
      provisions of this Note shall, at the request of the Holder, be issued by the
      Borrower to the Holder for the principal balance of this Note and interest
      which
      shall not have been converted or paid.

    

    2.3
      Maximum Conversion.

    

    (a)
      Notwithstanding anything to the contrary contained herein, the number of shares
      of Common Stock that may be acquired by the Subscriber upon conversion of the
      Notes (or otherwise in respect hereof) shall be limited to the extent necessary
      to insure that, following such conversion (or other issuance), the total number
      of shares of Common Stock then beneficially owned by such Subscriber and its
      affiliates and any other persons whose beneficial ownership of Common Stock
      would be aggregated with the Subscriber's for purposes of Section 13(d) of
      the
      1934 Act, does not exceed 4.999% of the total number of issued and outstanding
      shares of Common Stock (including for such purpose the shares of Common Stock
      issuable upon such conversion). For such purposes, beneficial ownership shall
      be
      determined in accordance with Section 13(d) of the 1934 Act and the rules and
      regulations promulgated thereunder. By written notice to the Company, a
      Subscriber may waive the provisions of this Section 2.3(a) as to itself but
      any
      such waiver will not be effective until the 61st day after delivery thereof
      and
      such waiver shall have no effect on any other Investor.

    

    (b)
      Notwithstanding anything to the contrary contained herein, the number of shares
      of Common Stock that may be acquired by the Subscriber upon conversion of the
      Notes (or otherwise in respect hereof) shall be limited to the extent necessary
      to insure that, following such conversion (or other issuance), the total number
      of shares of Common Stock then beneficially owned by such Subscriber and its
      affiliates and any other persons whose beneficial ownership of Common Stock
      would be aggregated with the Subscriber's for purposes of Section 13(d) of
      the
      1934 Act, does not exceed 9.999% of the total number of issued and outstanding
      shares of Common Stock (including for such purpose the shares of Common Stock
      issuable upon such conversion). For such purposes, beneficial ownership shall
      be
      determined in accordance with Section 13(d) of the 1934 Act and the rules and
      regulations promulgated thereunder. This provision may not be
      waived.

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.4
      Conversion of Note.

    

    (a)
      Upon
      the conversion of a Note or part thereof, the Company shall, at its own cost
      and
      expense, take all necessary action, including obtaining and delivering, an
      opinion of counsel to assure that the Company's transfer agent shall issue
      stock
      certificates in the name of Subscriber (or its nominee) or such other persons
      as
      designated by Subscriber and in such denominations to be specified at conversion
      representing the number of shares of Common Stock issuable upon such conversion.
      The Company warrants that no instructions other than these instructions have
      been or will be given to the transfer agent of the Company's Common Stock and
      that, unless waived by the Subscriber, the Shares will be free-trading, and
      freely transferable, and will not contain a legend restricting the resale or
      transferability of the Shares provided the Shares are being sold pursuant to
      an
      effective registration statement covering the Shares or are otherwise exempt
      from registration.

    

    (b)
      Subscriber will give notice of its decision to exercise its right to convert
      the
      Note or part thereof by telecopying an executed and completed Notice of
      Conversion (a form of which is annexed as Exhibit A to the Note) to the Company
      via confirmed telecopier transmission and overnight courier or otherwise
      pursuant to Section 4.2 of this Note. The Subscriber will not be required to
      surrender the Note until the Note has been fully converted or satisfied. Each
      date on which a Notice of Conversion is telecopied to the Company in accordance
      with the provisions hereof shall be deemed a "Conversion Date." The Company
      will
      itself or cause the Company's transfer agent to transmit the Company's Common
      Stock certificates representing the Shares issuable upon conversion of the
      Note
      to the Subscriber via express courier for receipt by such Subscriber within
      five
      (5) business days after receipt by the Company of the Notice of Conversion
      (such
      third day being the "Delivery Date"). In the event the Shares are electronically
      transferable, then delivery of the Shares must be made by electronic transfer
      provided request for such electronic transfer has been made by the Subscriber
      and the Subscriber has complied with all applicable securities laws in
      connection with the sale of the Common Stock, including, without limitation,
      the
      prospectus delivery requirements. A Note representing the balance of the Note
      not so converted will be provided by the Company to the Subscriber if requested
      by Subscriber, provided the Subscriber delivers the original Note to the
      Company.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    (c)
      The
      Company understands that a delay in the delivery of the Shares in the form
      required pursuant to Section 2.4(a) hereof, or the Mandatory Redemption Amount
      described in Section 2.5 hereof, respectively after the Delivery Date or the
      Mandatory Redemption Payment Date (as hereinafter defined) could result in
      economic loss to the Subscriber. As compensation to the Subscriber for such
      loss, the Company agrees to pay (as liquidated damages and not as a penalty)
      to
      the Subscriber for late issuance of Shares in the form required pursuant to
      Section 7.1 hereof upon Conversion of the Note in the amount of $20 per business
      day after the Delivery Date for each $10,000 of Note principal amount being
      converted of the corresponding Shares which are not timely delivered. The
      Company shall pay any payments incurred under this Section in immediately
      available funds upon demand. Furthermore, in addition to any other remedies
      which may be available to the Subscriber, in the event that the Company fails
      for any reason to effect delivery of the Shares by the Delivery Date or make
      payment by the Mandatory Redemption Payment Date, the Subscriber will be
      entitled to revoke all or part of the relevant Notice of Conversion or rescind
      all or part of the notice of Mandatory Redemption by delivery of a notice to
      such effect to the Company whereupon the Company and the Subscriber shall each
      be restored to their respective positions immediately prior to the delivery
      of
      such notice, except that the liquidated damages described above shall be payable
      through the date notice of revocation or rescission is given to the
      Company.

    

    (d)
      Nothing contained herein or in any document referred to herein or delivered
      in
      connection herewith shall be deemed to establish or require the payment of
      a
      rate of interest or other charges in excess of the maximum permitted by
      applicable law. In the event that the rate of interest or dividends required
      to
      be paid or other charges hereunder exceed the maximum permitted by such law,
      any
      payments in excess of such maximum shall be credited against amounts owed by
      the
      Company to the Subscriber and thus refunded to the Company.

    

    2.5
      Mandatory Redemption at Subscriber's Election. In the event the Company is
      prohibited from issuing Shares, or fails to timely deliver Shares on a Delivery
      Date, or upon the occurrence of any other Event of Default (as defined in the
      Note or in this Agreement) or for any reason other than pursuant to the
      limitations set forth in Section 2.3 hereof, then at the Subscriber's election,
      the Company must pay to the Subscriber ten (10) business days after request
      by
      the Subscriber, at the Subscriber's election, a sum of money in immediately
      available terms equal to the greater of (i) the product of the outstanding
      principal amount of the Note designated by the Subscriber multiplied by 120%,
      or
      (ii) the product of the number of Shares otherwise deliverable upon conversion
      of an amount of Note principal and/or interest designated by the Subscriber
      (with the date of giving of such designation being a "Deemed Conversion Date")
      at the then Conversion Price that would be in effect on the Deemed Conversion
      Date multiplied by the average of the closing bid prices for the Common Stock
      for the five consecutive trading days preceding either: (1) the date the Company
      becomes obligated to pay the Mandatory Redemption Payment, or (2) the date
      on
      which the Mandatory Redemption Payment is made in full, whichever is greater,
      together with accrued but unpaid interest thereon and any liquidated damages
      then payable ("Mandatory Redemption Payment"). The Mandatory Redemption Payment
      must be received by the Subscriber on the same date as the Company Shares
      otherwise deliverable or within ten (10) business days after request, whichever
      is sooner ("Mandatory Redemption Payment Date"). Upon receipt of the Mandatory
      Redemption Payment, the corresponding Note principal and interest will be deemed
      paid and no longer outstanding. Liquidated damages calculated pursuant to
      Section 2.4(c) hereof, that have been paid or accrued for the twenty day period
      prior to the actual receipt of the Mandatory Redemption Payment by the
      Subscriber shall be credited against the Mandatory Redemption
      Payment.

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.6
      Injunction Posting of Bond. In the event a Subscriber shall elect to convert
      a
      Note or part thereof or exercise the Warrant in whole or in part, the Company
      may not refuse conversion or exercise based on any claim that such Subscriber
      or
      any one associated or affiliated with such Subscriber has been engaged in any
      violation of law, or for any other reason, unless, an injunction from a court,
      on notice, restraining and or enjoining conversion of all or part of such Note
      or exercise of all or part of such Warrant shall have been sought and obtained
      by the Company and the Company has posted a surety bond for the benefit of
      such
      Subscriber in the amount of 120% of the amount of the Note, or aggregate
      purchase price of the Warrant Shares which are sought to be subject to the
      injunction, which bond shall remain in effect until the completion of
      arbitration/litigation of the dispute and the proceeds of which shall be payable
      to such Subscriber to the extent Subscriber obtains judgment.

    

    2.7
      Buy-In. In addition to any other rights available to the Subscriber, if the
      Company fails to deliver to the Subscriber such shares issuable upon conversion
      of a Note by the Delivery Date and if after five (5) business days after the
      Delivery Date the Subscriber purchases (in an open market transaction or
      otherwise) shares of Common Stock to deliver in satisfaction of a sale by such
      Subscriber of the Common Stock which the Subscriber was entitled to receive
      upon
      such conversion (a "Buy-In"), then the Company shall pay in cash to the
      Subscriber (in addition to any remedies available to or elected by the
      Subscriber) the amount by which (A) the Subscriber's total purchase price
      (including brokerage commissions, if any) for the shares of Common Stock so
      purchased exceeds (B) the aggregate principal and/or interest amount of the
      Note
      for which such conversion was not timely honored, together with interest thereon
      at a rate of 15% per annum, accruing until such amount and any accrued interest
      thereon is paid in full (which amount shall be paid as liquidated damages and
      not as a penalty). For example, if the Subscriber purchases shares of Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted conversion of $10,000 of note principal and/or interest, the
      Company shall be required to pay the Subscriber $1,000, plus interest. The
      Subscriber shall provide the Company written notice indicating the amounts
      payable to the Subscriber in respect of the Buy-In.

    

    2.8
      Optional Redemption.

    

    (a)
      Provided that the Company has a number of authorized but unissued shares of
      Common Stock sufficient for the issuance of all Shares underlying the remaining
      principal amount of this Note, such Common Stock is listed or quoted (and is
      not
      suspended from trading) on a trading market and such shares of Common Stock
      are
      approved for listing on such trading market upon issuance, such Common Stock
      is
      registered for resale under the 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      Registration
        Statement and the prospectus under such Registration Statement is available
        for
        the sale of all Registrable Securities held by the Subscriber, such issuance
        would be permitted in full without violating Section 2.3 herein or the rules
        or
        regulations of any trading market on which such Common Stock may be listed
        or
        quoted, and both immediately before and after giving effect thereto, no Event
        of
        Default under the Subscription Agreement or this Note shall or would exist,
        the
        Borrower will have the option of prepaying the outstanding principal amount
        of
        this Note ("Optional Redemption"), in whole or in part, together with interest
        accrued thereon, by paying to the Holder a sum of money equal to one hundred
        twenty five percent (125%) of the principal amount to be redeemed, together
        with
        accrued but unpaid interest thereon and interest that will accrue until the
        actual repayment date and any and all other sums due, accrued or payable
        to the
        Holder arising under the Note, the Subscription Agreement or any Transaction
        Document (the "Redemption Amount") on the day written notice of redemption
        (the
        "Notice of Redemption") is given to the Holder. The Notice of Redemption
        shall
        specify the date for such Optional Redemption (the "Redemption Payment Date"),
        which date shall be not less than five (5) business days after the date of
        the
        Notice of Redemption (the "Redemption Period"). A Notice of Redemption shall
        not
        be effective with respect to any portion of the Note for which the Holder
        has a
        pending election to convert, or for Conversion Notices given by the Holder
        prior
        to the Redemption Payment Date. During a Redemption Period occurring after
        the
        Actual Effective Date, the Holder may deliver Notices of Conversion for up
        to
        100% of the initial principal amount of the Note and accrued interest. On
        the
        Redemption Payment Date, the Redemption Amount shall be paid in good funds
        to
        the Holder. In the event the Borrower fails to pay the Redemption Amount
        on the
        Redemption Payment Date as set forth herein, then (i) such Notice of Redemption
        will be null and void, (ii) Borrower will have no further right to deliver
        another Notice of Redemption, and (iii) Borrower's failure may be deemed
        by
        Holder to be a non-curable Event of Default.

    

    

    (b)
      A
      Notice of Redemption must be given proportionately to all Holders of Notes
      bearing similar terms to this Note issued on the date of this Note.

    

    2.9
      Reservation. During the period the conversion right exists, Borrower will
      reserve from its authorized and unissued Common Stock a number of shares of
      Common Stock equal to 175% of the amount of Common Stock issuable upon the
      full
      conversion of this Note. Borrower represents that upon issuance, such shares
      will be duly and validly issued, fully paid and non-assessable. Borrower agrees
      that its issuance of this Note shall constitute full authority to its officers,
      agents, and transfer agents who are charged with the duty of executing and
      issuing stock certificates to execute and issue the necessary certificates
      for
      shares of Common Stock upon the conversion of this Note.

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      III

    

    EVENTS
      OF
      DEFAULT

    

    The
      occurrence of any of the following events of default ("Event of Default") shall,
      at the option of the Holder hereof, make all sums of principal and interest
      then
      remaining unpaid hereon and all other amounts payable hereunder immediately
      due
      and payable, upon demand, without presentment, or grace period, all of which
      hereby are expressly waived, except as set forth below:

    

    3.1
      Failure to Pay Principal or Interest. The Borrower fails to pay any installment
      of principal, interest or other sum due under this Note when due.

    

    3.2
      Breach of Covenant. The Borrower breaches any other covenant or other term
      or
      condition of the Subscription Agreement or this Note in any material respect
      and
      such breach, if subject to cure, continues for a period of ten (10) business
      days after written notice to the Borrower from the Holder.

    

    3.3
      Breach of Representations and Warranties. Any representation or warranty of
      the
      Borrower made herein, in the Subscription Agreement, or in any agreement,
      statement or certificate given in writing pursuant hereto or in connection
      therewith shall be false or misleading in any material respect as of the date
      made and the Closing Date.

    

    3.4
      Receiver or Trustee. The Borrower shall make an assignment for the benefit
      of
      creditors, or apply for or consent to the appointment of a receiver or trustee
      for it or for a substantial part of its property or business; or such a receiver
      or trustee shall otherwise be appointed.

    

    3.5
      Judgments. Any money judgment, writ or similar final process shall be entered
      or
      filed against Borrower or any of its property or other assets for more than
      $100,000, and shall remain unvacated, unbonded or unstayed for a period of
      forty-five (45) days.

    

    3.6
      Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings
      or
      other proceedings or relief under any bankruptcy law or any law, or the issuance
      of any notice in relation to such event, for the relief of debtors shall be
      instituted by or against the Borrower and if instituted against Borrower are
      not
      dismissed within 45 days of initiation.

    

    3.7
      Delisting. Delisting of the Common Stock from the OTC Bulletin Board ("Bulletin
      Board") or such other principal exchange on which the Common Stock is listed
      for
      trading; failure to comply with the requirements for continued listing on the
      Bulletin Board for a period of three consecutive trading days; or notification
      from the Bulletin Board or any Principal Market that the Borrower is not in
      compliance with the conditions for such continued listing on the Bulletin Board
      or other Principal Market.

    

    3.8
      Non-Payment. A default by the Borrower under any one or more obligations in
      an
      aggregate monetary amount in excess of $100,000 for more than twenty days after
      the due date.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.9
      Stop
      Trade. An SEC or judicial stop trade order or Principal Market trading
      suspension that lasts for five or more consecutive trading days.

    

    3.10
      Failure to Deliver Common Stock or Replacement Note. Borrower's failure to
      timely deliver Common Stock to the Holder pursuant to and in the time required
      by this Note and Sections 7 and 11 of the Subscription Agreement, or, if
      required, a replacement Note.

    

    3.11
      Non-Registration Event. The occurrence of a Non-Registration Event as described
      in Section 11.4 of the Subscription Agreement.

    

    3.12
      Reverse Splits. The Borrower effectuates a reverse split of its Common Stock
      without the prior written consent of the Holder.

    

    3.13
      Reservation Default. Failure by the Borrower to have reserve for issuance upon
      conversion of the Note the amount of Common stock as set forth in the
      Subscription Agreement.

    

    3.14
      Cross Default. A default by the Borrower of a material term, covenant, warranty
      or undertaking of any other agreement to which the Borrower and Holder are
      parties, or the occurrence of a material event of default under any such other
      agreement which is not cured after any required notice and/or cure
      period.

    

    3.15
      Change in Control. A change in control of the Company without the written
      consent of the Holder. A change in control shall mean that more than 30% of
      the
      shares of common stock are consolidated in one person or entity so that the
      person or entity may control the election of the board of directors or the
      passage of a proposal that would normally require a shareholder vote without
      such shareholder vote and that such person or entity was not a holder of shares
      of the Company at the date of execution hereof.

    

    3.16
      Entity Restrictions. The Company shall neither conduct nor permit to occur
      any
      reclassification, business combination, spin-off, merger, reorganization, stock
      sale or other transaction that results in the transfer, sale or distribution
      (by
      operation of law or otherwise) of the Company or any subsidiary's stock, or
      any
      other action reasonably related thereto.

    

    3.17
      Asset Sales. Neither the Company will, nor will the Company permit any of its
      or
      its subsidiaries to, sell, transfer, lease or otherwise dispose (including
      pursuant to a merger) of substantially all of the Company's assets, including
      any asset constituting an equity interest in any other person, except sales,
      transfers, leases and other dispositions of inventory, used, obsolete or surplus
      equipment or other property, in each case in the ordinary course of the
      Company's business and consistent with past practice.

    

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      IV

    

    MISCELLANEOUS

    

    4.1
      Failure or Indulgence Not Waiver. No failure or delay on the part of Holder
      hereof in the exercise of any power, right or privilege hereunder shall operate
      as a waiver thereof, nor shall any single or partial exercise of any such power,
      right or privilege preclude other or further exercise thereof or of any other
      right, power or privilege. All rights and remedies existing hereunder are
      cumulative to, and not exclusive of, any rights or remedies otherwise
      available.

    

    4.2
      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 (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, telegram, 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)
      or (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, whichever shall first occur. The addresses for such
      communications shall be: (i) (i) if to the Company, to: Comprehensive Healthcare
      Solutions, Inc., 45 Ludlow Street, Suite 602, Yonkers, NY 10705, Attn: John
      Treglia, CEO, telecopier number: (914) 375-2994, with a copy by telecopier
      only
      to: Anslow & Jaclin, LLP, 195 Route 9 South, Suite 204, Manalapan, NJ 07726,
      telecopier number: (732) 577-1188, and (ii) if to the Holder, to the name,
      address and telecopy number set forth on the front page of this Note, with
      a
      copy by telecopier only to (not with respect to Conversion Notices): Kogan
&
Associates., Simon Kogan, 39 Broadway, Suite 2250 New York NY 10006, telecopier
      number: (212) 482-8104.

    

      4.3
      Amendment Provision. The term "Note" and all reference thereto, as used
      throughout this instrument, shall mean this instrument as originally executed,
      or if later amended or supplemented, then as so amended or
      supplemented.

    

      4.4
      Assignability. This Note shall be binding upon the Borrower and its successors
      and assigns, and shall inure to the benefit of the Holder and its successors
      and
      assigns.

    

      4.5
      Cost
      of Collection. If default is made in the payment of this Note, Borrower shall
      pay the Holder hereof reasonable costs of collection, including reasonable
      attorneys' fees.

    

      4.6
      Governing Law. This Note shall be governed by and construed in accordance with
      the laws of the State of New York. Any action brought by either party against
      the other concerning the transactions contemplated by this Agreement shall
      be
      brought only in the state courts of New York or in the federal courts located
      in
      the state of New York. Both parties and the individual signing this Agreement
      on
      behalf of the Borrower agree to submit to the jurisdiction of such courts.
      The
      prevailing party shall be entitled to recover from the other party its
      reasonable attorney's fees and costs.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

      4.7
      Maximum Payments. Nothing contained herein shall be deemed to establish or
      require the payment of a rate of interest or other charges in excess of the
      maximum permitted by applicable law. In the event that the rate of interest
      required to be paid or other charges hereunder exceed the maximum permitted
      by
      such law, any payments in excess of such maximum shall be credited against
      amounts owed by the Borrower to the Holder and thus refunded to the
      Borrower.

    

      4.8
      Late
      Payments. Subject to Section 4.7 hereof, the interest rate applicable to any
      late, unpaid amounts owed hereunder or under any Transaction Document shall
      be
      sixteen percent (16%) per annum.

    

      4.9
      Redemption. This Note may not be redeemed or paid without the consent of the
      Holder except as described in this Note or in the Subscription
      Agreement.

    

      4.10
      Shareholder Status. The Holder shall not have rights as a shareholder of the
      Borrower with respect to unconverted portions of this Note. However, the Holder
      will have all the rights of a shareholder of the Borrower with respect to the
      shares of Common Stock to be received by Holder after delivery by the Holder
      of
      a Conversion Notice to the Borrower.

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOLLOWS]

    

    

    

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by
      an

    authorized
      officer as of the ______ day of November, 2005.

    

    
      	
              Witness:

            	
              COMPREHENSIVE
                HEALTHCARE SOLUTIONS, INC.

            
	 	
              By:
                _________________________________

            
	 	
              Name:
                _______________________________

            
	
              ______________________________

            	
              Title:
                ______________________________

            

    

    

    

    

     

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOTICE
      OF
      CONVERSION

    

    (To
      be
      executed by the Registered Holder in order to convert the Note)

    

    The
      undersigned hereby elects to convert $_________ of the principal and $_________
      of the interest due on the Note issued by COMPREHENSIVE HEALTHCARE SOLUTIONS,
      INC. on _________________, 2005 into Shares of Common Stock of COMPREHENSIVE
      HEALTHCARE SOLUTIONS, INC. (the "Borrower") according to the conditions set
      forth in such Note, as of the date written below.

    

    
      	
               

              Date
                of Conversion:

            	
               

              _________________________________

            
	
               

              Conversion
                Price:

            	
               

              _________________________________

            
	
               

              Share
                To Be Delivered:

            	
               

              _________________________________

            
	
               

              Signature:

            	
               

              _________________________________

            
	
               

              Print
                Name:

            	
               

              _________________________________

            
	
               

              Address:

            	
               

              _________________________________

              _________________________________

              _________________________________Comprehensive Healthcare Solutions Registration Rights Agr.

    REGISTRATION
      RIGHTS AGREEMENT

     

    REGISTRATION
      RIGHTS AGREEMENT (this "Agreement"), dated as of November__, 2005, by and
      between Comprehensive Healthcare Solutions, Inc., a corporation
      organized under the laws of state of Delaware, with its principal executive
      office at 45 Ludlow Street, Suite 602, Yonkers, New York 10705 (the "Company"),
      and the undersigned investor (the "Investor").

    

    WHEREAS,
      upon the terms and subject to the conditions of the Subscription Agreement
      between the Investor and the Company (the "Subscription Agreement"), the Company
      has agreed to issue and sell to the Investor a convertible note of the Company,
      which will be convertible into shares of the common stock, $.001 par value
      per
      share (the "Common Stock"), of the Company as well as Warrant to purchase shares
      of the Company’s common stock; and

    

    WHEREAS,
      to induce the Investor to execute and deliver the Subscription Agreement, the
      Company has agreed to provide certain registration rights under the Securities
      Act of 1933, as amended, and the rules and regulations thereunder, or any
      similar successor statute (collectively, the "1933 Act"), and applicable state
      securities laws, with respect to the shares of Common Stock issuable upon
      conversion of the Note.

     

    NOW,
      THEREFORE, in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and each of the Initial Investors hereby agree
      as follows:

    1. DEFINITIONS.

     

    a. As
      used
      in this Agreement, the following terms shall have the following
      meanings:

     

    (i)  “Investors”
      means
      the
      Initial Investors and
      any transferee
      or assignee who agrees to become bound by the provisions of this Agreement
      in
      accordance
      with
      Section 9 hereof.

    

    (ii)  “register,”
      “registered,” and
      “registration”
      refer
      to
      a registration effected by preparing and filing a Registration Statement or
      Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
      1933 Act or any successor rule providing for offering securities on a continuous
      basis (“Rule
      415”), and
      the
      declaration or ordering of effectiveness of such Registration Statement by
      the
      United States Securities and Exchange Commission (the “SEC”).

    

    (iii)  “Registrable
      Securities” means
      the
      Conversion Shares issued or issuable upon conversion or otherwise pursuant
      to
      the Notes and Additional Notes (as defined in the Subscription Agreement)
      including, without limitation, Damages Shares (as defined in the Notes) issued
      or issuable pursuant to the Notes, shares of Common Stock issued or issuable
      in
      payment of the Standard Liquidated Damages Amount (as defined in the
      Subscription Agreement), shares issued or issuable in respect in redemption
      of
      the Notes in accordance with

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    the
      terms
      thereof) and Warrant
      Shares issuable, upon exercise or otherwise pursuant
      to the
      Warrants
      and Additional
      Warrants
      (as
      defined in the Subscription Agreement), and any
      shares of capital stock issued or issuable as a dividend on or in exchange
      for
      or otherwise with respect to any of
      the
      foregoing.

    

    (iv)
      “Registration Statement” means
      a
      registration statement of the Company under the 1933 Act.

    

    b.
      Capitalized
      terms used herein and not
      otherwise defined herein shall have the respective meanings
      set
      forth
      in the
      Subscription Agreement or the Convertible Note.

    

    2. REGISTRATION.

    

    a.  Mandatory
      Registration. The
      Company shall prepare, and, on or prior to thirty (30) days from the date of
      Closing (as defined in the Subscription Agreement) (the “Filing
      Date”), file
      with
      the SEC a Registration Statement on Form SB-2 (or, if Form SB-2 is not then
      available, on such form of Registration Statement as is then available to effect
      a registration of the Registrable Securities, subject to the consent of the
      Initial Investors, which consent will not be unreasonably withheld) covering
      the
      resale of the Registrable Securities underlying the Notes and Warrants issued
      or
      issuable pursuant to the Subscription Agreement, which Registration Statement,
      to the extent allowable under the 1933 Act and the rules and regulations
      promulgated thereunder (including Rule 416), shall state that such Registration
      Statement also covers such indeterminate number of additional shares of Common
      Stock as may become issuable upon conversion of or otherwise pursuant to the
      Notes and exercise of the Warrants to prevent dilution resulting from stock
      splits, stock dividends or similar transactions. The number of shares of Common
      Stock initially included in such Registration Statement shall be no less than
      an
      amount equal to one hundred and seventy-five (175%) percent m of the
number
      of
      Conversion Shares that are then issuable upon conversion of the Notes and
      Additional
      Notes
      (based on the Variable Conversion Price as would then be in effect and assuming
      the Variable Conversion Price is the Conversion Price at such time), and the
      number of Warrant Shares that are then issuable upon exercise of the Warrants,
      without regard to any limitation on the Investor’s ability to convert the Notes
      or exercise the Warrants. The Company acknowledges that the number of shares
      initially included in the Registration Statement represents a good faith
      estimate of the maximum number of shares issuable upon conversion of the Notes
      and upon exercise of the Warrants.

    

    b.  Underwritten
      Offering. If
      any
      offering pursuant to a Registration Statement pursuant to Section 2(a) hereof
      involves an underwritten offering, the Investors who hold a majority in interest
      of the Registrable Securities subject to such underwritten offering,
with
      the
      consent of a majority-in-interest of the Initial Investors, shall have the
      right
      to select one
      legal
      counsel and an investment banker or bankers and manager or managers to
      administer the offering, which investment banker or bankers or manager or
      managers shall be reasonably satisfactory to the Company.

    

    c.  Payments
      by
      the
      Company. The
      Company shall use its best efforts to obtain effectiveness of the Registration
      Statement as soon as practicable. If (i) the

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Registration
      Statement(s) covering the Registrable Securities required to be filed by the
      Company pursuant to Section 2(a) hereof is not filed by the Filing Date or
      declared effective by the SEC on or prior to ninety (90) days from the Filing
      Date of the SB-2 with the SEC, or (ii) after the Registration Statement has
      been
      declared effective by the SEC, sales of all of the Registrable Securities cannot
      be made pursuant to the Registration Statement, or (iii) the Common Stock is
      not
      listed or included for quotation on the Nasdaq National Market (“Nasdaq”),
      the
      Nasdaq SmallCap Market (“Nasdaq
      SmallCap”), the
      New
      York Stock Exchange
      (the “NYSE”)
      or
      the
      American Stock Exchange (the “AMEX”)
      after
      being so listed or
      included
      for quotation, or (iv) the Common Stock ceases to be traded on the
      Over-the-Counter Bulletin Board (the “OTCBB”)
      or
      any
      equivalent replacement exchange prior to being listed or included for quotation
      on one of the aforementioned markets, then the Company will make payments to
      the
      Investors in such amounts and at such times as shall be determined pursuant
      to
      this Section 2(c) as partial relief for the damages to the Investors by reason
      of any such delay in or reduction of their ability to sell the Registrable
      Securities (which remedy shall not be exclusive of any other remedies available
      at law or in equity). The Company shall pay to each holder of the Notes or
      Registrable Securities an amount equal to the then outstanding principal amount
      of the Notes (and, in the case of holders of Registrable Securities, the
      principal amount of Notes from which such Registrable Securities were converted)
      (“Outstanding
      Principal Amount”), multiplied
      by the Applicable Percentage (as defined below) times the sum of: (i) the number
      of months (prorated for partial months) after the Filing Date or the end of
      the
      aforementioned ninety (90) day period and prior to the date the Registration
      Statement is declared effective by the SEC, provided, however, that there shall
      be excluded from such period any delays which are solely attributable to changes
      required by the Investors in the Registration Statement with respect to
      information relating to the Investors, including, without limitation, changes
      to
      the plan of distribution, or to the failure of the Investors to conduct their
      review of the Registration Statement pursuant to Section 3(h) below in a
      reasonably prompt manner; (ii) the number of months (prorated for partial
      months) that sales of all of the Registrable Securities cannot be made pursuant
      to the Registration Statement after the Registration Statement has been declared
      effective (including, without limitation, when sales cannot be made by reason
      of
      the Company’s failure to properly supplement or amend the prospectus included
      therein in accordance with the terms of this Agreement, but excluding any days
      during an Allowed Delay (as defined in Section 3(f)); and (iii) the number
      of
      months (prorated for partial months) that the Common Stock is not listed or
      included for quotation on the OTCBB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX
      or
      that trading thereon is halted after the Registration Statement has been
      declared effective. The term “Applicable
      Percentage” means
      one
      hundredths (.01). (For example, if the Registration Statement becomes effective
      one (1) month after the end of such ninety (90) day period, the Company would
      pay $2,500 for each $250,000 of Outstanding Principal Amount. If thereafter,
      sales could not be made pursuant to the Registration Statement for an additional
      period of one (1) month, the Company would pay an additional $2,500 for each
      $250,000 of Outstanding Principal Amount.) Such amounts shall be paid in cash
      or, at the Company’s option, in shares of Common Stock priced at the Conversion
      Price (as defined in the Notes) on such payment date. Notwithstanding same,
      the
      Investors agree they will extend the date that these payments will commence
      for
      up to forty-five (45) days if the delay in the Effective Fate is due to any
      review undertaken by the SEC and the Company has demonstrated that it has used
      its best efforts in filing the registration statement and responding to the
      SEC.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    d.  Piggy-Back
      Registrations. Subject
      to the last sentence of this Section 2(d), if at any time prior to the
      expiration of the Registration Period (as hereinafter defined) the Company
      shall
      determine to file with the SEC a Registration Statement relating to an offering
      for its own account or the account of others under the 1933 Act of any of its
      equity securities (other than on Form S-4 or Form S-8 or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other bona
      fide,
      employee benefit plans), the Company shall send to each Investor who is entitled
      to registration rights under this Section 2(d) written notice of such
      determination and, if within fifteen (15) days after the effective date of
      such
      notice, such Investor shall so request in writing, the Company shall include
      in
      such Registration Statement all or any part of the Registrable Securities such
      Investor requests to be registered, except that if, in connection with any
      underwritten public offering for the account of the Company the managing
      underwriter(s) thereof shall impose a limitation on the number of shares of
      Common Stock which may be included in the Registration Statement because, in
      such underwriter(s)’ judgment, marketing or other factors dictate such
      limitation is necessary to facilitate public distribution, then the Company
      shall be obligated to include in such Registration Statement only such limited
      portion of the Registrable Securities with respect to which such Investor has
      requested inclusion hereunder as the underwriter shall permit. Any exclusion
      of
      Registrable Securities shall be made pro rata among the Investors seeking to
      include Registrable Securities in proportion to the number of Registrable
      Securities sought to be included by such Investors; provided, however,
      that the
      Company shall not exclude any Registrable Securities unless the Company has
      first excluded all outstanding securities, the holders of which are not entitled
      to inclusion of such securities in such Registration Statement or are not
      entitled to pro rata inclusion with the Registrable Securities; and provided, further, however,
      that,
      after giving effect to the immediately preceding proviso, any exclusion of
      Registrable Securities shall be made pro rata with holders of other securities
      having the right to include such securities in the Registration Statement other
      than holders of securities entitled to inclusion of their securities in such
      Registration Statement by reason of demand registration rights. No right to
      registration of Registrable Securities under this Section 2(d) shall be
      construed to limit any registration required under Section 2(a) hereof. If
      an
      offering in connection with which an Investor is entitled to registration under
      this Section 2(d) is an underwritten offering, then each Investor whose
      Registrable Securities are included in such Registration Statement shall, unless
      otherwise agreed by the Company, offer and sell such Registrable Securities
      in
      an underwritten offering using the same underwriter or underwriters and, subject
      to the provisions of this Agreement, on the same terms and conditions as other
      shares of Common Stock included in such underwritten offering. Notwithstanding
      anything to the contrary set forth herein, the registration rights of the
      Investors pursuant to this Section 2(d) shall only be available in the event
      the
      Company fails to timely file, obtain effectiveness or maintain effectiveness
      of
      any Registration Statement to be filed pursuant to Section 2(a) in accordance
      with the terms of this Agreement.

     

    e.  Eligibility
      for Form S-3, SB-2 or S-1; Conversion to Form S-3. The
      Company represents and warrants that it meets the requirements for the use
      of
      Form S-3, SB-2 or S-1 for registration of the sale by the Initial Investors
      and
      any other Investors of the Registrable Securities. The Company agrees to file
      all reports required to be filed by the Company with the SEC in a timely manner
      so as to remain eligible or become eligible, as the case may be, and thereafter
      to maintain its eligibility, for the use of Form S-3. If the Company is not
      currently eligible to use Form S-3, not later than five (5) business days after
      the Company

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    first
      meets the registration eligibility and transaction requirements for the use
      of
      Form S-3 (or any successor form) for registration of the offer and sale by
      the
      Initial Investors and any other Investors of Registrable Securities, the Company
      shall file a Registration Statement on Form S-3 (or such successor form) with
      respect to the Registrable Securities covered by the Registration Statement
      on
      Form SB-2 or Form S-1, whichever is applicable, filed pursuant to Section 2(a)
      (and include in such Registration Statement on Form S-3 the information required
      by Rule 429 under the 1933 Act) or convert the Registration Statement on Form
      SB-2 or Form S-1, whichever is applicable, filed pursuant to Section 2(a) to
      a
      Form S-3 pursuant to Rule 429 under the 1933 Act and cause such Registration
      Statement (or such amendment) to be declared effective no later than thirty
      (30)
      days after filing. In the event of a breach by the Company of the provisions
      of
      this Section 2(e), the Company will be required to make payments pursuant to
      Section 2(c) hereof.

    

    3.
      OBLIGATIONS
      OF THE COMPANY.

    

    In
      connection with the registration of the Registrable Securities, the Company
      shall have the following obligations:

    

    a.  The
      Company shall prepare promptly, and file with the SEC not later than the Filing
      Date, a Registration Statement with respect to the number of Registrable
      Securities provided in Section 2(a), and thereafter use its best efforts to
      cause such Registration Statement relating to Registrable Securities to become
      effective as soon as possible after such filing but in no event later than
      ninety (90) days from the Filing Date), and keep the Registration Statement
      effective pursuant to Rule 415 at all times until such date as is the earlier
      of
      (i) the date on which all of the Registrable Securities have been sold and
      (ii)
      the date on which the Registrable Securities (in the opinion of counsel to
      the
      Initial Investors) may be immediately sold to the public without registration
      or
      restriction (including, without limitation, as to volume by each holder thereof)
      under the 1933 Act (the “Registration
      Period”), which
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall 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.

    

    b.  The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statements and
      the prospectus used in connection with the Registration Statements as may be
      necessary to keep the Registration Statements effective at all times during
      the
      Registration Period, and, during such period, comply with the provisions of
      the
      1933 Act with respect to the disposition of all Registrable Securities of the
      Company covered by the Registration Statements until
      such time as all of such Registrable Securities have been disposed of in
      accordance with the
      intended
      methods of disposition by the seller or sellers thereof as set forth in the
      Registration Statements. In the event the number of shares available under
      a
      Registration Statement filed pursuant to this Agreement is insufficient to
      cover
      all of the Registrable Securities issued or issuable upon conversion of the
      Notes and exercise of the Warrants, the Company shall amend the Registration
      Statement, or file a new Registration Statement (on the short form available
      therefor, if applicable), or both, so as to cover all of the Registrable
      Securities, in each case, as soon as practicable, but in any event within
      fifteen (15) days after the necessity therefor arises (based on the market
      price
      of the Common Stock and other relevant factors on which the

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Company
      reasonably elects to rely). The Company shall use its best efforts to cause
      such
      amendment and/or new Registration Statement to become effective as soon as
      practicable following the filing thereof, but in any event within thirty (30)
      days after the date on which the Company reasonably first determines (or
      reasonably should have determined) the need therefor. The
      provisions of Section 2(c) above shall be applicable with respect to such
      obligation, with the
      ninety
      (90) days running from the day the Company reasonably first determines (or
      reasonably should have determined) the need therefor.

    

    c.  The
      Company shall furnish to each Investor whose Registrable Securities are included
      in a Registration Statement and its legal counsel (i) promptly (but in no event
      more than five (5) business days) after the same is prepared and publicly
      distributed, filed with the SEC, or received by the Company, one copy of each
      Registration Statement and any amendment thereto, each preliminary prospectus
      and prospectus and each amendment or supplement thereto, and, in the case of
      the
      Registration Statement referred to in Section 2(a), each letter written by
      or on
      behalf of the Company to the SEC or the staff of the SEC, and each item of
      correspondence from the SEC or the staff of the SEC, in each case relating
      to
      such Registration Statement (other than any portion of any thereof which
      contains information for which the Company has sought confidential treatment),
      and (ii) promptly (but in no event more than two (2) business days) after the
      Registration Statement is declared effective by the SEC, such number of copies
      of a prospectus, including a preliminary prospectus, and all amendments and
      supplements thereto and such other documents as such Investor may reasonably
      request in order to facilitate the disposition of the Registrable Securities
      owned by such Investor. The Company will immediately notify each Investor by
      facsimile of the effectiveness of each Registration Statement or any
      post-effective amendment. The Company will promptly respond to any and all
      comments received from the SEC (which comments shall promptly be made available
      to the Investors upon request), with a view towards causing each Registration
      Statement or any amendment thereto to be declared effective by the SEC as soon
      as practicable, shall promptly file an acceleration request as soon as
      practicable (but in no event more than five (5) business days) following the
      resolution or clearance of all SEC comments or, if applicable, following
      notification by the SEC that any such Registration Statement or any amendment
      thereto will not be subject to review and shall, if required by SEC Rules,
      promptly file with the SEC a final prospectus as soon as practicable (but in
      no
      event more than two (2) business days) following receipt by the Company from
      the
      SEC of an order declaring the Registration Statement effective. In the event
      of
      a breach by the Company of the provisions of this Section 3(c), the Company
      will
      be required to make payments pursuant to Section 2(c) hereof.

    

    d.  The
      Company shall use reasonable efforts to (i) register and qualify the Registrable
      Securities covered by the Registration Statements under such other securities
      or
“blue sky” laws of such jurisdictions in the United States as the Investors who
      hold a majority in interest of the Registrable Securities being offered
      reasonably request, (ii) prepare and file in those jurisdictions such amendments
      (including post-effective amendments) and supplements to such registrations
      and
      qualifications as may be necessary to maintain the effectiveness thereof during
      the Registration Period, (iii) take such other actions as may be necessary
      to
      maintain such registrations and qualifications in effect at all times during
      the
      Registration Period, and (iv) take all other actions reasonably necessary or
      advisable to qualify the Registrable Securities for sale in such jurisdictions;
      provided, however,
      that the
      Company shall not be required in connection therewith or as a condition thereto
      to (a) qualify to do

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    business
      in any jurisdiction where it would not otherwise be required to qualify but
      for
      this Section 3(d), (b) subject itself to general taxation in any such
      jurisdiction, (c) file a general consent to service of process in any such
      jurisdiction, (d) provide any undertakings that cause the Company undue expense
      or burden, or (e) make any change in its charter or bylaws, which in each case
      the Board of Directors of the Company determines to be contrary to the best
      interests of the Company and its shareholders.

    

    e.  In
      the
      event Investors who hold a majority-in-interest of the Registrable Securities
      being offered in the offering (with the approval of a majority-in-interest
      of
      the Initial Investors) select underwriters for the offering, the Company shall
      enter into and perform its obligations under an underwriting agreement, in
      usual
      and customary form, including, without limitation, customary indemnification
      and
      contribution obligations, with the underwriters of such offering.

    

    f.  As
      promptly as practicable after becoming aware of such event, the Company shall
      notify each Investor of the happening of any event, of which the Company has
      knowledge, as a result of which the prospectus included in any Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, and use its best efforts promptly
      to
      prepare a supplement or amendment to any Registration Statement to correct
      such
      untrue statement or omission, and deliver such number of copies of such
      supplement or amendment to each Investor as such Investor may reasonably
      request; provided that, for not more than ten (10) consecutive trading days
      (or
      a total of not more than twenty (20) trading days in any twelve (12) month
      period), the Company may delay the disclosure of material non-public information
      concerning the Company (as well as prospectus or Registration Statement
      updating) the disclosure of which at the time is not, in the good faith opinion
      of the Company, in the best interests of the Company (an “Allowed
      Delay”); provided,
      further, that the Company shall promptly (i) notify the Investors in writing
      of
      the existence of (but in no event, without the prior written consent of an
      Investor, shall the Company disclose to such investor any of the facts or
      circumstances regarding) material non-public information giving rise to an
      Allowed Delay and (ii) advise the Investors in writing to cease all sales under
      such Registration Statement until the end of the Allowed Delay. Upon expiration
      of the Allowed Delay, the Company shall again be bound by the first sentence
      of
      this Section 3(f) with respect to the information giving rise
      thereto.

    

    g.  The
      Company shall use its best efforts to prevent the issuance of any
      stop
      order or other suspension of effectiveness of any Registration Statement, and,
      if such an
      order is
      issued, to obtain the withdrawal of such order at the earliest possible moment
      and to notify each Investor who holds Registrable Securities being sold (or,
      in
      the event of an underwritten offering, the managing underwriters) of the
      issuance of such order and the resolution thereof.

    

    h.  The
      Company shall permit a single firm of counsel designated by the Initial
      Investors to review such Registration Statement and all amendments and
      supplements thereto (as well as all requests for acceleration or effectiveness
      thereof) a reasonable period of time prior to their filing with the SEC, and
      not
      file any document in a form to which such counsel reasonably objects and will
      not request acceleration of such Registration Statement without prior notice
      to
      such counsel. The sections of such Registration Statement covering

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    information
      with respect to the Investors, the Investor’s beneficial ownership of securities
      of the Company
      or the
      Investors intended method of disposition of Registrable Securities
      shall conform to the information provided to the Company
      by each
      of the Investors.

    

    i.  At
      the
      request of any Investor, the Company shall furnish, on the date that Registrable
      Securities are delivered to an underwriter, if any, for sale in connection
      with
      any Registration Statement or, if such securities are not being sold by an
      underwriter, on the date of effectiveness thereof (i) an opinion, dated as
      of
      such date, from counsel representing the Company for purposes of such
      Registration Statement, in form, scope and substance as is customarily given
      in
      an underwritten public offering, addressed to the underwriters, if any, and
      the
      Investors and (ii) a letter, dated such date, from the Company’s independent
      certified public accountants in form and substance as is customarily given
      by
      independent certified public accountants to underwriters in an underwritten
      public offering, addressed to the underwriters, if any, and the
      Investors.

    

    j.  The
      Company shall hold in confidence and not make any disclosure of information
      concerning an Investor provided to the Company unless (i) disclosure of such
      information is necessary to comply with federal or state securities laws, (ii)
      the disclosure of such information is necessary to avoid or correct a
      misstatement or omission in any Registration Statement, (iii) the release of
      such information is ordered pursuant to a subpoena or other order from a court
      or governmental body of competent jurisdiction, or (iv) such information has
      been made generally available to the public other than by disclosure in
      violation of this or any other agreement. The Company agrees that it shall,
      upon
      learning that disclosure of such information concerning an Investor is sought
      in
      or by a court or governmental body of competent jurisdiction or through other
      means, give prompt notice to such Investor prior to making such disclosure,
      and
      allow the Investor, at its expense, to undertake appropriate action to prevent
      disclosure of, or to obtain a protective order for, such
      information.

    

    k.  The
      Company shall (i) cause all the Registrable Securities covered by the
      Registration Statement to be listed on each national securities exchange on
      which securities of the same class or series issued by the Company are then
      listed, if any, if the listing of such Registrable Securities is then permitted
      under the rules of such exchange, or (ii) to the extent the securities of the
      same class or series are not then listed on a national securities exchange,
      secure the designation and quotation, of all the Registrable Securities covered
      by the Registration Statement on Nasdaq or, if not eligible for Nasdaq, on
      Nasdaq SmallCap or, if not eligible for Nasdaq or Nasdaq SmallCap, on the OTCBB
      and, without limiting the generality of the foregoing, to arrange for at least
      two market makers to register with the National Association of Securities
      Dealers, Inc. (“NASD”)
      as
      such
      with respect to such Registrable Securities.

    

    l.  The
      Company shall provide a transfer agent and registrar, which may be a single
      entity, for the Registrable Securities not later than the effective date of
      the

    Registration
      Statement.

    

    m.  The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and the managing underwriter or underwriters, if any, to facilitate
      the
      timely preparation and delivery of certificates (not bearing any restrictive
      legends) representing Registrable Securities to be offered pursuant to a
      Registration Statement and enable

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    such
      certificates to be in such denominations or amounts, as the case may be, as
      the
      managing underwriter or underwriters, if any, or the Investors may reasonably
      request and registered in such names as the managing underwriter or
      underwriters, if any, or the Investors may request, and, within three (3)
      business days after a Registration Statement which includes Registrable
      Securities is ordered effective by the SEC, the Company shall deliver, and
      shall
      cause legal counsel selected by the Company to deliver, to the transfer agent
      for the Registrable Securities (with copies to the Investors whose Registrable
      Securities are included in such Registration Statement) an instruction in the
      form attached hereto as Exhibit
      1 and
      an
      opinion of such counsel in the form attached hereto as Exhibit
      2.

     

    n.  At
      the
      request of the holders of a majority-in-interest of the Registrable Securities,
      the Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      any
      prospectus used in connection with the Registration Statement as may be
      necessary in order to change the plan of distribution set forth in such
      Registration Statement.

     

    o.  From
      and
      after the date of this Agreement, the Company shall not, and
      shall
      not agree to, allow the holders of any securities of the Company to include
      any
      of their
      securities, in excess of 250,000 shares of Common Stock, in any Registration
      Statement under Section 2(a) hereof or any amendment or supplement thereto
      under
      Section 3(b) hereof without the consent of the holders of a majority-in-interest
      of the Registrable Securities.

     

    p.  The
      Company shall take all other reasonable actions necessary to expedite and
      facilitate disposition by the Investors of Registrable Securities pursuant
      to
      a

    Registration
      Statement.

    4.
      OBLIGATIONS
      OF THE INVESTORS.

     

    In
      connection with the registration of the Registrable Securities, the Investors
      shall have the following obligations:

     

    a.  It
      shall
      be a condition precedent to the obligations of the Company to complete the
      registration pursuant to this Agreement with respect to the Registrable
      Securities of a particular Investor that such Investor shall furnish to the
      Company such information regarding itself, the Registrable Securities held
      by it
      and the intended method of disposition of the Registrable Securities held by
      it
      as shall be reasonably required to effect the registration of such Registrable
      Securities and shall execute such documents in connection with such registration
      as the Company may reasonably request. At least three (3) business days prior
      to
      the first anticipated filing date of the Registration Statement, the Company
      shall notify each Investor of the information the Company requires from each
      such Investor.

    

    b.  Each
      Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of the Registration Statements hereunder, unless
      such Investor has notified the Company in writing of such Investor’s election to
      exclude all of such Investor’s Registrable Securities from the Registration
      Statements.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    c.  In
      the
      event Investors holding a majority-in-interest of the Registrable Securities
      being registered (with the approval of the Initial Investors) determine to
      engage the services of an underwriter, each Investor agrees to enter into and
      perform such Investor’s
      obligations under an underwriting agreement, in usual and customary form,
      including,
      without
      limitation, customary indemnification and contribution obligations, with the
      managing underwriter of such offering and take such other actions as are
      reasonably required in order to expedite or facilitate the disposition of the
      Registrable Securities, unless such Investor has notified the Company in writing
      of such Investor’s election to exclude all of such Investor’s Registrable
      Securities from such Registration Statement.

    

    d.  Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(f) or 3(g), such
      Investor will immediately discontinue disposition of Registrable Securities
      pursuant to the Registration Statement covering such Registrable Securities
      until such Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Section 3(f) or 3(g) and, if so directed by the
      Company, such Investor shall deliver to the Company (at the expense of the
      Company)
      or destroy (and deliver to the Company a certificate of destruction) all copies
      in such Investor’s
      possession, of the prospectus covering such Registrable Securities current
      at
      the time
      of
      receipt of such notice.

    

    e.  No
      Investor may participate in any underwritten registration hereunder unless
      such
      Investor (i) agrees to sell such Investor’s Registrable Securities on the
basis
      provided in any underwriting arrangements in usual and customary form entered
      into by the
      Company,
      (ii) completes and executes all questionnaires, powers of attorney, indemnities,
      underwriting agreements and other documents reasonably required under the terms
      of such underwriting arrangements, and (iii) agrees to pay its pro rata share
      of
      all underwriting discounts and commissions and any expenses in excess of those
      payable by the Company pursuant to Section 5 below.

    

    5.  EXPENSES
      OF REGISTRATION.

    

    All
      reasonable expenses, other than
      underwriting
      discounts and commissions,
      incurred in connection with registrations, filings or qualifications
      pursuant
      to
      Sections 2 and 3,
      including, without limitation, all registration, listing and qualification
      fees, printers and accounting
      fees, the fees and disbursements
      of counsel for the Company,
      and
      the reasonable fees and disbursements
      of one counsel selected by the Initial Investors pursuant to Sections 2(b)
      and 3(h)
      hereof shall be borne by the Company.

    

    6.  INDEMNIFICATION.

    

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

    

    a. To
      the
      extent permitted by law, the Company will indemnify, hold harmless and defend
      (i) each Investor who holds such Registrable Securities, (ii) the directors,
      officers, partners, employees, agents and each person who controls any Investor
      within the meaning of the 1933 Act or the Securities Exchange Act of 1934,
      as
      amended (the “1934
      Act”),

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    if
      any,
      (iii) any underwriter (as defined in the 1933 Act) for the Investors, and (iv)
      the directors, officers, partners, employees and each person who controls any
      such underwriter within the meaning of the 1933 Act or the 1934 Act, if any
      (each, an “Indemnified
      Person”), against
      any joint or several losses, claims, damages, liabilities or expenses
      (collectively, together with actions, proceedings or inquiries by any regulatory
      or self-regulatory organization, whether commenced or threatened, in respect
      thereof, “Claims”)
      to
      which
      any of them may become subject insofar as such Claims arise out of or are based
      upon: (i) any untrue statement or alleged untrue statement of a material fact
      in
      a Registration Statement or the omission or alleged omission to state therein
      a
      material fact required to be stated or necessary to make the statements therein
      not misleading; (ii) any untrue statement or alleged untrue statement of a
      material fact contained in any preliminary prospectus if used prior to the
      effective date of such Registration Statement, or contained in the final
      prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading; or (iii) any violation or alleged violation by the Company
      of the 1933 Act, the 1934 Act, any other law, including, without limitation,
      any
      state securities law, or any rule or regulation thereunder relating to the
      offer
      or sale of the Registrable Securities (the matters in the foregoing clauses
      (i)
      through (iii) being, collectively, “Violations”).
      Subject
      to the restrictions set forth in Section 6(c) with respect to the number of
      legal counsel, the Company shall reimburse the Indemnified Person, promptly
      as
      such expenses are incurred and are due and payable, for any reasonable legal
      fees or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 6(a): (i) shall not apply to a Claim arising out of or based upon a
      Violation which occurs in reliance upon and in conformity with information
      furnished in writing to the Company by any Indemnified Person or underwriter
      for
      such Indemnified Person expressly for use in connection with the preparation
      of
      such Registration Statement or any such amendment thereof or supplement thereto,
      if such prospectus was timely made available by the Company pursuant to Section
      3(c) hereof; (ii) shall not apply to amounts paid in settlement of any Claim
      if
      such settlement is effected without the prior written consent of the Company,
      which consent shall not be unreasonably withheld; and (iii) with respect to
      any
      preliminary prospectus, shall not inure to the benefit of any Indemnified Person
      if the untrue statement or omission of material fact contained in the
      preliminary prospectus was corrected on a timely basis in the prospectus, as
      then amended or supplemented, such corrected prospectus was timely made
      available by the Company pursuant to Section 3(c) hereof, and the Indemnified
      Person was promptly advised in writing not to use the incorrect prospectus
      prior
      to the use giving rise to a Violation and such Indemnified Person,
      notwithstanding such advice, used it. Such indemnity shall remain in full force
      and effect regardless of any investigation made by or on behalf of the
      Indemnified Person and shall survive the transfer of the Registrable Securities
      by the Investors pursuant to Section 9.

    

    b. In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees severally and not jointly to indemnify,
      hold harmless and defend, to the same extent and in the same manner set forth
      in
      Section 6(a), the Company, each of its directors, each of its officers who
      signs
      the Registration Statement, each person, if any, who controls the Company within
      the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
      shareholder selling securities pursuant to the Registration

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Statement
      or any of its directors or officers or any person who controls such shareholder
      or underwriter within the meaning of the 1933 Act or the 1934 Act (collectively
      and together with an Indemnified Person, an “Indemnified
      Party”), against
      any Claim to which any of them may become subject, under the 1933 Act, the
      1934
      Act or otherwise, insofar as such Claim arises out of or is based upon any
      Violation by such Investor, in each case to the extent (and only to the extent)
      that such Violation occurs in reliance upon and in conformity with written
      information furnished to the Company by such Investor expressly for use in
      connection with such Registration Statement; and subject to Section 6(c) such
      Investor will reimburse any legal or other expenses (promptly as such expenses
      are incurred and are due and payable) reasonably incurred by them in connection
      with investigating or defending any such Claim; provided, however,
      that the
      indemnity agreement contained in this Section 6(b) shall not apply to amounts
      paid in settlement of any Claim if such settlement is effected without the
      prior
      written consent of such Investor, which consent shall not be unreasonably
      withheld; provided, further, however,
      that the
      Investor shall be liable under this Agreement (including this Section 6(b)
      and
      Section 7) for only that amount as does not exceed the net proceeds to such
      Investor as a result of the sale of Registrable Securities pursuant to such
      Registration Statement. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such Indemnified Party
      and shall survive the transfer of the Registrable Securities by the Investors
      pursuant to Section 9. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(b) with
      respect to any preliminary prospectus shall not inure to the benefit of any
      Indemnified Party if the untrue statement or omission of material fact contained
      in the preliminary prospectus was corrected on a timely basis in the prospectus,
      as then amended or supplemented.

    

    c. Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action (including any governmental action),
      such Indemnified Person or Indemnified Party shall, if a Claim in respect
      thereof is to be made against any indemnifying party under this Section 6,
      deliver to the indemnifying party a written notice of the commencement thereof,
      and the indemnifying party shall have the right to participate in, and, to
      the
      extent the indemnifying party so desires, jointly with any other indemnifying
      party similarly noticed, to assume control of the defense thereof with counsel
      mutually satisfactory to the indemnifying party and the Indemnified Person
      or
      the Indemnified Party, as the case may be; provided, however,
      that an
      Indemnified Person or Indemnified Party shall have the right to retain its
      own
      counsel with the fees and expenses to be paid by the indemnifying party, if,
      in
      the reasonable opinion of counsel retained by the indemnifying party, the
      representation by such counsel of the Indemnified Person or Indemnified Party
      and the indemnifying party would be inappropriate due to actual or potential
      differing interests between such Indemnified Person or Indemnified Party and
      any
      other party represented by such counsel in such proceeding. The indemnifying
      party shall pay for only one separate legal counsel for the Indemnified Persons
      or the Indemnified Parties, as applicable, and such legal counsel shall be
      selected by Investors holding a majority-in-interest of the Registrable
      Securities included in the Registration Statement to which the Claim relates
      (with the approval of a majority-in-interest of the Initial Investors), if
      the
      Investors are entitled to indemnification hereunder, or the Company, if the
      Company is entitled to indemnification hereunder, as applicable. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    that
      the
      indemnifying party is actually prejudiced in its ability to defend such action.
      The indemnification required by this Section 6 shall be made by periodic
      payments of the amount thereof during the course of the investigation or
      defense, as such expense, loss, damage or liability is incurred and is due
      and
      payable.

    

    7. CONTRIBUTION.

    

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided, however,
      that (i)
      no contribution shall be made under circumstances where the maker would not
      have
      been liable for indemnification under the fault standards set forth in Section
      6, (ii) no seller of Registrable Securities guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall
      be
      entitled to contribution from any seller of Registrable Securities who was
      not
      guilty of such fraudulent misrepresentation, and (iii) contribution (together
      with any indemnification or other obligations under this Agreement) by any
      seller of Registrable Securities shall be limited in amount to the net amount
      of
      proceeds received by such seller from the sale of such Registrable
      Securities.

    

    8. REPORTS
      UNDER THE 1934 ACT.

    

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the investors to sell securities of the Company to the public
      without registration (“Rule
      144”), the
      Company agrees to:

    

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

    

    b.  file
      with
      the SEC in a timely manner all reports and other documents
      required of the Company under the 1933 Act and the 1934 Act so long as
      the
      Company
      remains subject to such requirements and the filing of such reports and other
      documents is required for the applicable provisions of Rule 144;
      and

    

    c.  furnish
      to each Investor so long as such Investor owns Registrable Securities, promptly
      upon request, (i) a written statement by the Company that it has complied with
      the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii)
      a
      copy of the most recent annual or quarterly report of the Company and such
      other
      reports and documents so filed by the Company, and (iii) such other information
      as may be reasonably requested to permit the Investors to sell such securities
      pursuant to Rule 144 without registration.

    

    9.
      ASSIGNMENT
      OF REGISTRATION RIGHTS.

    

    The
      rights under this Agreement shall be automatically assignable by the Investors
      to any transferee of all or any portion of Registrable Securities if: (i) the
      Investor agrees in writing with the transferee or assignee to assign such
      rights, and a copy of such agreement is furnished to the Company within a
      reasonable time after such assignment, (ii) the Company is, within a reasonable
      time after such transfer or assignment, furnished with written notice of (a)
      the
      name

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    and
      address of such transferee or assignee, and (b) the securities with respect
      to
      which such registration rights are being transferred or assigned, (iii)
      following such transfer or assignment, the further disposition of such
      securities by the transferee or assignee is restricted under the 1933 Act and
      applicable state securities laws, (iv) at or before the time the Company
      receives the written notice contemplated by clause (ii) of this sentence, the
      transferee or assignee agrees in writing
      with the Company to be bound by all of the provisions contained herein, (v)
      such
      transfer
      shall
      have been made in accordance with the applicable requirements of the
      Subscription Agreement, and (vi) such transferee shall be an “accredited
      investor” as
      that
      term defined in Rule 501 of Regulation D promulgated under the 1933
      Act.

    

    10.  AMENDMENT
      OF REGISTRATION RIGHTS.

    

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only
      with
      written consent of the Company, each of the Initial Investors (to the extent
      such Initial Investor still owns Registrable Securities) and Investors who
      hold
      a majority interest of the Registrable Securities. Any amendment or waiver
      effected in accordance with this Section 10 shall be binding upon each Investor
      and the Company.

    

    11.  MISCELLANEOUS.

    

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

    

    b.  Any
      notices required or permitted to be given under the terms hereof shall be sent
      by certified or registered mail (return receipt requested) or delivered
      personally or by courier (including a recognized overnight delivery service)
      or
      by facsimile and shall
      be
      effective five days after being placed in the mail, if mailed by regular United
      States mail,
      or upon
      receipt, if delivered personally or by courier (including a recognized overnight
      delivery service) or by facsimile, in each case addressed to a party. The
      addresses for such communications shall be:

    

    If
      to the
      Company:

    

    45
      Ludlow
      Street

    Suite
      602

    Yonkers,
      New York 10705 Attention:
      Chief Executive Officer
      Telephone: (914) 375-7591 Facsimile: (914) 375-3696

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    With
      a
      copy to:

     

    Anslow
      & Jaclin, LLP

    195
      Route
      9, Suite 204

    Manalapan,
      NJ 07725

    Attention:
      Gregg Jaclin, Esq. Telephone: (732) 409-1212 Facsimile: (732)
      577-1188

     

    If
      to
an
      Investor:
      to the address set forth
      immediately below such Investor’s name on the signature pages to the
      Subscription
      Agreement.

     

    c.  Failure
      of any party to exercise any right or remedy under this Agreement
      or otherwise, or delay by a party in exercising such right or remedy, shall
      not
      operate
      as a
      waiver thereof.

     

    d.  THIS
      AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
      LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
      UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH RESPECT TO ANY
      DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION
      HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
      IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
      SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
      UPON
      A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
      SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
      SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
      BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
      SUIT
      OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
      BY
      SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT
      PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR
      ALL
      FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY
      IN CONNECTION WITH SUCH DISPUTE.

    

    e.  In
      the
      event that any provision of this Agreement 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 provision hereof
      which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision hereof.

     

    f.  This
      Agreement, the Notes, the Warrants and the Subscription Agreement (including
      all
      schedules and exhibits thereto) constitute the entire agreement
      among

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    the
      parties hereto with respect to the subject matter hereof and thereof. There
      are
      no restrictions, promises, warranties or undertakings, other than those set
      forth or referred to herein and therein. This Agreement and the Subscription
      Agreement supersede all prior agreements and understandings among the parties
      hereto with respect to the subject matter hereof and thereof.

    

    g.  Subject
      to the requirements of Section 9 hereof, this Agreement shall be binding upon
      and inure to the benefit of the parties and their successors and
      assigns.

    

    h.  The
      headings in this Agreement are for convenience of reference only and shall
      not
      form part of, or affect the interpretation of, this Agreement.

    

    i.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement
      and shall become effective when counterparts have been signed by each party
      and
      delivered to the other party. This Agreement, once executed by a party, may
      be
      delivered to the other party hereto by facsimile transmission of a copy of
      this
      Agreement bearing the signature of the party so delivering this
      Agreement.

    

    j.  Each
      party
      shall do
and perform,
      or cause to be done and performed, all such further
      acts
and things,
      and shall
      execute and deliver
      all such other agreements, certificates, instruments and documents,
      as the other party may reasonably request in order to carry
      out the
      intent and accomplish the purposes of this Agreement and the
      consummation of the transactions
      contemplated hereby.

    

    k.  Except
      as
      otherwise provided herein, all consents and other determinations to be made
      by
      the Investors pursuant to this Agreement shall be made by Investors holding
      a
      majority of the Registrable Securities, determined as if the all of the Notes
      then outstanding have been converted into for Registrable
      Securities.

    

    l.  The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to each Investor by vitiating the intent and purpose of the
      transactions contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for breach of its obligations under this Agreement will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of any of the provisions under this Agreement, that each Investor shall
      be entitled, in addition to all other available remedies in law or in equity,
      and in addition to the penalties assessable herein, to an injunction or
      injunctions restraining, preventing or curing any breach of this Agreement
      and
      to enforce specifically the terms and provisions hereof, without the necessity
      of showing economic loss and without any bond or other security being
      required.

    

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

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    

    IN
      WITNESS WHEREOF, the Company and the undersigned Initial Investors have caused
      this registration Rights Agreement to be duly executed s of the date first
      above
      written.

    

    

    COMPREHENSIVE
      HEALTHCARE SOLUTIONS, INC.

    

    

    By:
      /s/
      John Treglia

    JOHN
      TREGLIA

    Chief
      Executive Officer

    

    

    

    SUBSCRIBER:

    

    NITE
      CAPITAL LP

    

    By:
      /s/
      Keith A Goodman

    Name:
      Keith A. Goodman

    Title:
      Manager of the General Partner

    Address:        NITE
      CAPITAL, LP

                100
      EAST COOK AVENUE, STE 201

    LIBERTYVILLE,
      IL 60048

    

    Telephone:
      847-968-2655

    

    Facsimile: 847-968-2648

    

    Email:
      Keith@nitecapital.com

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