Document:

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                                                                    EXHIBIT 10.5

                             CHART INDUSTRIES, INC.

                            INVESTOR RIGHTS AGREEMENT

                         Dated as of September 15, 2003

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                                TABLE OF CONTENTS

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SECTION 1.  COVENANTS, REPRESENTATIONS AND WARRANTIES.........................2

SECTION 2.  RESTRICTIONS ON TRANSFER OF STOCKHOLDER SHARES....................2
   2A.      Restrictions on Transfer..........................................2
   2B.      First Offer Rights................................................2
   2C.      Participation Rights..............................................4
   2D.      Exempt Transfers..................................................6
   2E.      Termination.......................................................7

SECTION 3.  SALE OF THE COMPANY...............................................7
   3A.      Approved Sale.....................................................7
   3B.      Required Actions..................................................7
   3C.      Conditions to Stockholders' Obligations...........................8
   3D.      Rule 506 Transaction..............................................8
   3E.      Expenses of Approved Sale.........................................9

SECTION 4.  LIMITED PREEMPTIVE RIGHTS.........................................9
   4A.      Offering..........................................................9
   4B.      Expiration of Offering Period....................................10
   4C.      New Securities...................................................10
   4D.      Termination......................................................11

SECTION 5.  LEGEND...........................................................11

SECTION 6.  TRANSFER.........................................................11

SECTION 7.  BOARD OF DIRECTORS; VOTING.......................................11
   7A.      Composition of the Board.........................................11
   7B.      Board Meeting Expenses...........................................15
   7C.      Irrevocable Proxy................................................15
   7D.      Termination......................................................16

SECTION 8.  DEMAND REGISTRATIONS.............................................16
   8A.      Requests for Registration........................................16
   8B.      Long-Form Registrations..........................................16
   8C.      Short-Form Registrations.........................................17
   8D.      Priority on Demand Registrations.................................17
   8E.      Restrictions on Demand Registrations.............................17
   8F.      Selection of Underwriters........................................18
   8G.      Other Registration Rights........................................18
   8H.      Demand Registration Expenses.....................................18

SECTION 9.  PIGGYBACK REGISTRATIONS..........................................18
   9A.      Right to Piggyback...............................................18
   9B.      Piggyback Expenses...............................................18

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   9C.      Priority on Primary Registrations................................18
   9D.      Other Registrations..............................................19
   9E.      Postponement or Withdrawal.......................................19

SECTION 10. HOLDBACK AGREEMENTS..............................................19
   10A.     Agreement of Holders of Registrable Securities...................19
   10B.     Company Agreement................................................20

SECTION 11. REGISTRATION PROCEDURES..........................................20

SECTION 12. REGISTRATION EXPENSES............................................23
   12A.     Company Expenses.................................................23
   12B.     Reimbursement....................................................23

SECTION 13. INDEMNIFICATION..................................................23
   13A.     Indemnification Obligation of the Company........................23
   13B.     Indemnification of the Company...................................24
   13C.     Indemnification Procedures.......................................24
   13D.     Other Indemnification Provisions.................................24

SECTION 14. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS......................25

SECTION 15. COVENANTS........................................................25
   15A.     Restrictive Covenants............................................25
   15B.     Financial Statements and Other Information.......................28
   15C.     Expenses.........................................................30

SECTION 16. DEFINITIONS......................................................30

SECTION 17. MISCELLANEOUS....................................................35
   17A.     Amendment and Waiver.............................................35
   17B.     Severability.....................................................36
   17C.     Entire Agreement.................................................36
   17D.     No Inconsistent Agreements.......................................36
   17E.     Adjustments Affecting Registrable Securities.....................36
   17F.     Successors and Assigns...........................................36
   17G.     Counterparts.....................................................36
   17H.     Remedies.........................................................36
   17I.     Notices..........................................................36
   17J.     Governing Law....................................................38
   17K.     Mutual Waiver of Jury Trial......................................38
   17L.     Termination of Certain Provisions.  .............................38
   17M.     Descriptive Headings.............................................38

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                                                                  EXECUTION COPY

                            INVESTOR RIGHTS AGREEMENT

          THIS INVESTOR RIGHTS AGREEMENT (this "Agreement") is entered into as
of September 15, 2003, by and among (i) Chart Industries, Inc. (the "Company"),
a Delaware corporation reorganized pursuant to the Amended Joint Prepackaged
Reorganization Plan (the "Plan of Reorganization") of Chart Industries, Inc. and
certain of its subsidiaries dated September 3, 2003, (ii) OCM Principal
Opportunities Fund II, L.P., a Delaware limited partnership ("Oaktree"), (iii)
Audax Chart LLC, a Delaware limited liability company ("Audax" and, together
with Oaktree, the "Controlling Stockholders" and each a "Controlling
Stockholder"), (iv) each Person (other than the Company or a Controlling
Stockholder) to whom shares of "Class 2 New Common Stock" (as defined in the
Plan of Reorganization) of the Company are issued pursuant to the Plan of
Reorganization and who is a party to this Agreement and listed on the attached
Schedule of Other New Stockholders as of September 15, 2003 (each an "Other New
Stockholder" and, collectively, the "Other New Stockholders"), (v) each Person
to whom shares of "Class 7 New Common Stock" (as defined in the Plan of
Reorganization) of the Company are issued pursuant to the Plan of Reorganization
and who is a party to this Agreement and listed on the attached Schedule of
Existing Stockholders as of September 15, 2003 (each Person referenced in this
clause (v), an "Existing Stockholder" and, collectively, the "Existing
Stockholders"), and (vi) each Person (other than the Company, a Controlling
Stockholder, an Other New Stockholder or an Existing Stockholder) who at any
time after September 15, 2003 acquires any capital stock or other equity
securities of the Company from a Controlling Stockholder, an Other New
Stockholder or an Existing Stockholder in accordance with the terms of this
Agreement (or, with the prior written consent of the Required Controlling
Holders, from the Company) and agrees to become a party to and bound by this
Agreement as a holder of Stockholder Shares by signing and delivering to the
Company and the Controlling Stockholders a Transfer Notice and Joinder Agreement
in the form attached hereto as Exhibit A (a "Joinder Agreement") (each an
"Additional Stockholder" and, collectively, the "Additional Stockholders"). The
Other New Stockholders, the Existing Stockholders and the Additional
Stockholders are referred to herein collectively as the "Other Stockholders" and
individually as an "Other Stockholder." The Controlling Stockholders and the
Other Stockholders are referred to herein collectively as the "Stockholders" and
individually as a "Stockholder." Each capitalized term used but not otherwise
defined herein has the meaning ascribed to such term in Section 16 hereof.

          Pursuant to the Company's Plan of Reorganization, the Company issued
shares of its Common Stock to the Stockholders who are a party to this Agreement
as of the date hereof. The Company and such Stockholders desire to enter into
this Agreement for purposes, among others, of (i) establishing the composition
of the Company's board of directors (the "Board"), (ii) restricting the sale,
assignment, transfer, encumbrance and other disposition of Stockholder Shares,
(iii) establishing certain registration rights and (iv) providing for certain
other rights and obligations relating to the Stockholder Shares.

          NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties to this Agreement hereby agree as
follows:

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     SECTION 1. COVENANTS, REPRESENTATIONS AND WARRANTIES

          Each Stockholder covenants, represents and warrants as of the date
such Stockholder becomes a party to this Agreement that: (i) this Agreement has
been duly authorized, executed and delivered by such Stockholder and constitutes
the valid and binding obligation of such Stockholder, enforceable in accordance
with its terms; (ii) such Stockholder is the record and beneficial owner of all
shares of Common Stock issued to such Stockholder pursuant to the Plan of
Reorganization or, in the case of any Stockholder who becomes a party to this
Agreement after the date first set forth above, the number of shares of Common
Stock set forth opposite such Stockholder's name on the Joinder Agreement
executed by such Stockholder, free and clear of all liens, charges and other
encumbrances (other than encumbrances imposed or created by virtue of this
Agreement); and (iii) except as contained herein, such Stockholder has not
granted any proxy and is not a party to any voting trust or voting agreement in
respect of any Stockholder Shares and is not party to any agreement which is
inconsistent with, conflicts with or violates any provision of this Agreement.

     SECTION 2. RESTRICTIONS ON TRANSFER OF STOCKHOLDER SHARES

          2A. Restrictions on Transfer. No holder of Stockholder Shares may
sell, transfer, assign, pledge or otherwise directly or indirectly dispose of
(whether with or without consideration and whether voluntarily or involuntarily
or by operation of law) (a "Transfer") any Stockholder Shares or interest
therein, except (i) any Transfer by a Transferring Stockholder pursuant to and
in accordance with Section 2B, (ii) any Transfer by a Participating Stockholder
pursuant to and in accordance with Section 2C or (iii) any Exempt Transfer by a
holder of Stockholder Shares pursuant to and in accordance with Section 2D.

          2B. First Offer Rights.

          (i) Prior to any Transfer of any Stockholder Shares by a holder
thereof (other than (a) any Transfer by a Participating Stockholder pursuant to
and in accordance with Section 2C or (b) any Exempt Transfer by a holder of
Stockholder Shares pursuant to and in accordance with Section 2D) (a
"Transferring Stockholder"), such Transferring Stockholder shall deliver a
written notice (an "Offer Notice") to each holder of Controlling Stockholder
Shares (other than the Transferring Stockholder if it is itself a holder of
Controlling Stockholder Shares) (each an "Eligible Purchaser" and, collectively,
the "Eligible Purchaser(s)") and to the Company. The Offer Notice shall disclose
in reasonable detail the proposed aggregate number of each class of Stockholder
Shares to be transferred (the "Transfer Shares"), the proposed material terms
and conditions of the Transfer, including the proposed price per share for each
class of Transfer Shares (which shall be payable in cash upon consummation of
such Transfer or in installments of cash over time), and, to the extent known,
the identity of the prospective transferee(s) (and, if any such transferee is an
entity, the beneficial owners thereof). Such Transfer shall not be consummated
prior to the date on which the parties to such Transfer have been finally
determined in accordance with this Section 2B and Section 2C below.

          (ii) Each Eligible Purchaser may elect to purchase all or any portion
of the Transfer Shares (provided that, if more than one class or series of
Stockholder Shares is included in the Transfer Shares, then an Eligible
Purchaser may only elect to purchase shares of each class

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and series included in the Transfer Shares and in the same relative proportions
as those in which such classes and series of Transfer Shares are so offered) at
the same price per share and on the same terms specified in the Offer Notice by
delivering, as soon as practicable but in any event within five (5) business
days after delivery of the Offer Notice to the Eligible Purchaser(s) (the "ROFO
Election Period"), a written notice of such election to the Company, the
Transferring Stockholder and the other Eligible Purchaser(s), if any, stating
the number of Stockholder Shares held by such Eligible Purchaser of each class
included in the Transfer Shares and the percentage of Transfer Shares which such
Eligible Purchaser proposes to purchase (each such Eligible Purchaser who so
elects to purchase any Transfer Shares is referred to herein as an "Electing
Purchaser"). If more than one Eligible Purchaser elects to purchase Transfer
Shares and the Eligible Purchaser(s) elect to purchase collectively more than
the aggregate number of Transfer Shares, then each class of Transfer Shares
shall first be allocated to each Electing Purchaser in an amount equal to the
lesser of (a) the maximum amount of Transfer Shares of such class specified by
each such Electing Purchaser in its written notice to the Company and (b) each
such Electing Purchaser's pro rata share of such class of Transfer Shares based
on the number of Controlling Stockholder Shares of such class owned on a Fully
Diluted Basis by each Electing Purchaser (provided that if the Transfer Shares
include any shares of Common Stock or other securities convertible into or
exercisable or exchangeable for shares of Common Stock, then each class of such
Transfer Shares shall be allocated to the Electing Purchasers pro rata based on
the number of shares of Common Stock which are Controlling Stockholder Shares
and owned by each such Electing Purchaser on a Fully Diluted Basis). If after
such allocation any Transfer Shares remain unallocated, then such allocation
procedure shall be repeated for such remaining Transfer Shares (but only with
respect to each Electing Purchaser who has not previously been allocated the
maximum amount of Transfer Shares of such class specified in such Electing
Purchaser's written notice to the Company) until either all Transfer Shares of
such class elected to be purchased by the Electing Purchaser(s) have been so
allocated or no Transfer Shares remain available for purchase by the Electing
Purchaser(s).

          (iii) If the Electing Purchaser(s) have collectively elected to
purchase pursuant to this Section 2B all (but not less than all) of the Transfer
Shares, then such Transfer(s) to the Electing Purchaser(s) shall be consummated
as soon as practical, but in any event within ten (10) days, after expiration of
the ROFO Election Period. Except to the extent the Required Controlling
Holder(s) direct otherwise by prior written notice to the Company, an Electing
Purchaser may designate one or more Affiliates of such Electing Purchaser to
purchase from the Transferring Stockholder all or any portion of the Transfer
Shares that such Electing Purchaser elected to purchase; provided that, if such
Affiliate is not already a party to this Agreement, then as a condition to such
purchase, such Affiliate shall agree, by signing a Joinder Agreement, to become
a party to and bound by this Agreement as an Additional Stockholder hereunder.
All amounts payable by an Electing Purchaser (or designee thereof) pursuant to
this Section 2B shall be paid in cash at the closing of such purchase or, to the
extent provided in the Offer Notice, in installments of cash over time.

          (iv) If the Electing Purchaser(s) do not collectively elect to
purchase all of the Transfer Shares, the Transferring Stockholder may, subject
to the Transferring Stockholder's compliance with Section 2C if the Transferring
Stockholder is a holder of Controlling Stockholder Shares, Transfer all (but not
less than all) of the Transfer Shares to one or more third parties for a per
share cash purchase price no less than the price specified in, and on other
terms

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no more favorable to such third parties than those set forth in, such Offer
Notice; provided that, if the Transferring Stockholder is a holder of
Controlling Stockholder Shares, then, with respect to each class of Transfer
Shares, the number of Stockholder Shares eligible to be sold in such Transfer by
the Transferring Stockholder shall be reduced by the aggregate number of
Stockholder Shares sold to such third parties in connection with such Transfer
by Participating Stockholder(s) pursuant to Section 2C; provided, further, such
Transfer(s) by the Transferring Stockholder may be made only within the 90-day
period immediately following the expiration of the ROFO Election Period or, if
the Transferring Stockholder is a holder of Controlling Stockholder Shares,
within the 90-day period immediately following the date on which the parties to
such Transfer(s) have been finally determined in accordance with Section 2C. In
the event the Transfer Shares are not Transferred in accordance with the
immediately preceding sentence, the Transfer Shares shall be subject to the
provisions of this Section 2B in connection with any subsequent Transfer or
proposed Transfer of such Transfer Shares by a Transferring Stockholder.

          2C. Participation Rights.

          (i) In the event a Transferring Stockholder who is also a holder of
Controlling Stockholder Shares delivers an Offer Notice in accordance with
Section 2B and the Eligible Purchaser(s) do not elect to purchase all of the
Transfer Shares specified in such Offer Notice, such Transferring Stockholder
shall, prior to any Transfer by such Transferring Stockholder of Transfer Shares
pursuant to Section 2B(iv), deliver a written notice (a "Tag-Along Sale Notice")
to each other holder of Stockholder Shares (each an "Eligible Stockholder" and,
collectively, the "Eligible Stockholders") and to the Company; provided that a
Tag-Along Sale Notice must be delivered only if the number of Transfer Shares,
when combined with the aggregate number of Stockholder Shares being concurrently
sold by any Affiliate of the Transferring Stockholder or sold previously by such
Transferring Stockholder or any Affiliate thereof pursuant to Section 2B(iv),
exceeds ten percent (10%) of the aggregate number of shares of Common Stock (as
such number shall be proportionately adjusted for all stock splits, stock
dividends, share combinations and similar recapitalization transactions) issued
to such Transferring Stockholder and its Affiliates pursuant to the Plan of
Reorganization (any such excess Transfer Shares are referred to herein as the
"Tag-Along Shares"). The Tag-Along Sale Notice shall disclose in reasonable
detail the number of each class of Tag-Along Shares that such Transferring
Stockholder proposes to Transfer pursuant to Section 2B(iv), the proposed
material terms and conditions of the Transfer, including the proposed price per
share for each class of Tag-Along Shares (which shall be payable in cash upon
consummation of such Transfer or in installments of cash over time), the
identity of the prospective transferee(s), and the expenses which such
Transferring Stockholder anticipates incurring in connection with such Transfer.

          (ii) In the event a Transferring Stockholder is obligated to deliver a
Tag-Along Sale Notice pursuant to clause (i) above, each Eligible Stockholder
may elect to participate in the contemplated Transfer at the same price and on
the same economic terms specified in such Tag-Along Sale Notice by delivering,
as soon as practicable but in any event within ten (10) days after delivery of
the Tag-Along Sale Notice to the Eligible Stockholders, a written notice of such
election to the Company, such Transferring Stockholder and the Controlling
Stockholders stating the number of shares held by such Eligible Stockholder of
each class of Stockholder Shares included in the Tag-Along Shares and the number
of Transfer Shares

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which such Eligible Stockholder proposes to sell of each class of Tag-Along
Shares (provided that, if more than one class or series of Stockholder Shares is
included in the Tag-Along Shares, then an Eligible Stockholder may only elect to
sell shares of each class and series included in the Tag-Along Shares and in the
same relative proportions as those in which such classes and series of Tag-Along
Shares are so offered). Subject to Section 2C(iii), each Eligible Stockholder
who elects to participate in such Transfer (each a "Participating Stockholder"
and, collectively, the "Participating Stockholders") shall be entitled to sell
in such Transfer, at the price per share and on the terms described in the
Tag-Along Sale Notice, up to a number of shares of each class of Tag-Along
Shares equal to the product of (a) the quotient determined by dividing the
percentage of Stockholder Shares of such class owned by such Participating
Stockholder on a Fully Diluted Basis by the aggregate percentage of Stockholder
Shares of such class owned by such Transferring Stockholder and all
Participating Stockholders on a Fully Diluted Basis, multiplied by (b) the
proposed number of Tag-Along Shares of such class to be sold in such Transfer;
provided that if the Tag-Along Shares include any shares of Common Stock or
other securities convertible into or exercisable or exchangeable for shares of
Common Stock, then the Participating Stockholders shall be entitled to sell
shares of each class of such Tag-Along Shares in proportion to the number of
shares of Common Stock which are Stockholder Shares and owned by each such
Participating Stockholder on a Fully Diluted Basis.

          (iii) Such Transferring Stockholder shall use commercially reasonable
efforts to obtain the agreement of the prospective transferee(s) to the
participation of the Participating Stockholder(s) in such Transfer. If, however,
the prospective transferee(s) refuse to allow the participation of any
Participating Stockholder(s), such Transferring Stockholder shall, at the same
time as such Transfer and as a condition thereto, purchase from such
Participating Stockholder(s), at the same price per share and on the same terms
described above, the number of Stockholder Shares of each class that such
Participating Stockholder(s) would otherwise be entitled to sell to the
prospective transferee(s) hereunder.

          (iv) Each Participating Stockholder shall (x) pay the expenses
incurred by such Participating Stockholder in connection with the Transfer as
well as its Allocable Share of the expenses reasonably incurred by such
Transferring Stockholder in connection with such Transfer, and (y) be obligated
to join in any indemnification or other obligations that such Transferring
Stockholder agrees to provide in connection with such Transfer (except that,
while each Participating Stockholder shall be obligated to make representations
and warranties as to such Participating Stockholder's title to and ownership of
Stockholder Shares, authorization, execution and delivery of relevant documents
by such Participating Stockholder, enforceability of relevant agreements against
such Participating Stockholder and other customary matters relating to such
Participating Stockholder, to enter into covenants with respect to the Transfer
and the delivery at the Closing of the Stockholder Shares of such Participating
Stockholder and to enter into indemnification obligations with respect to the
foregoing, in each case to the extent that such Transferring Stockholder is
similarly obligated in connection with its proposed Transfer of Stockholder
Shares, no Participating Stockholder shall be obligated to enter into
indemnification obligations with respect to any of the foregoing to the extent
relating to any representation or warranty by such Transferring Stockholder or
any other Participating Stockholder in respect of such Person or such other
Person's Stockholder Shares). For purposes of the foregoing, a Participating
Stockholder's "Allocable Share" of expenses means that portion of such expenses
which would be borne by such Participating Stockholder if the total amount of

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such expenses were allocated to the Transferring Stockholder and the
Participating Stockholder(s) in proportion to the value of the total
consideration paid and/or payable to each such Stockholder for the shares
Transferred by such Stockholder in such Transfer.

          2D. Exempt Transfers. The restrictions set forth in this Section 2
shall not apply to any of the following Transfers:

          (i) subject to the final paragraph of this Section 2D, in the case of
Stockholder Shares held by a Stockholder which is not an individual, any
Transfer of such Stockholder Shares to any Affiliate of such Stockholder or to
any Controlling Stockholder or Other New Stockholder (or any Affiliate of any
Controlling Stockholder or Other New Stockholder);

          (ii) in the case of Stockholder Shares held by a Stockholder which is
not an individual and which was not formed for the purpose of holding or
acquiring shares of the Company's capital stock or other securities (including
any debt instruments or participations therein), any Transfer of such
Stockholder Shares which constitutes an in-kind distribution by such Stockholder
to such Stockholder's partners or members (an "In-Kind Distribution");

          (iii) subject to the final paragraph of this Section 2D, in the case
of Stockholder Shares held by a Stockholder who is an individual, (A) a Transfer
of such Stockholder Shares pursuant to the applicable laws of descent and
distribution or (B) a Transfer of such Stockholder Shares among such
Stockholder's Family Group;

          (iv) any Transfer of Stockholder Shares in connection with an Approved
Sale;

          (v) any Public Sale of Stockholder Shares;

          (vi) subject to the final paragraph of this Section 2D, any Transfer
of Stockholder Shares by a Controlling Stockholder or any Affiliate thereof to
the other Controlling Stockholder or any Affiliate thereof; and

          (vii) subject to the final paragraph of this Section 2D, in the case
of Stockholder Shares held by a Stockholder who is not an individual, any
Transfer of such Stockholder Shares to a successor corporation or other
successor entity as a result of a merger or consolidation with, or a sale of all
or substantially all of the assets of, such Stockholder or, if a general or
limited partnership, in connection with the liquidation and dissolution of such
Stockholder.

          A transferee of Stockholder Shares pursuant to a Transfer described in
clause (i), (iii), (vi) or (vii) above is sometimes referred to herein as a
"Permitted Transferee." Not less than five (5) business days prior to any
Transfer of Stockholder Shares pursuant to the foregoing clauses (i), (ii),
(iii)(B) or (vii), the proposed transferor shall deliver a written notice to the
Company, which notice shall disclose in reasonable detail the nature of the
proposed Transfer

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and the identity of the proposed transferee(s) (and, if any such transferee is
any entity, the beneficial owners thereof). Notwithstanding the foregoing, the
restrictions contained in this Agreement shall continue to be applicable to the
Stockholder Shares following any Transfer to a Permitted Transferee, and no
Transfer to a Permitted Transferee may be consummated unless prior thereto the
transferor thereof shall have complied with Section 6 below. In addition, and
notwithstanding the foregoing, no holder of Stockholder Shares may avoid the
provisions of this Agreement by making one or more transfers to one or more
Permitted Transferees and then disposing of all or any portion of such Person's
interest in any such Permitted Transferee, and any Transfer or attempted
Transfer in violation of this covenant shall be void and otherwise subject to
Section 6 below. Any Transfer permitted pursuant to this Section 2D is referred
to in this Agreement as an "Exempt Transfer."

          2E. Termination.

          The restrictions on the Transfer of Stockholder Shares set forth in
this Section 2 shall continue with respect to each Stockholder Share until the
earliest to occur of (i) the date on which such Stockholder Share has been
transferred in a Public Sale, (ii) the consummation of an Approved Sale or (iii)
the consummation of a Qualified Public Offering.

     SECTION 3. SALE OF THE COMPANY

          3A. Approved Sale. If (i) the Required Controlling Holder(s) consent
in writing to a Sale of the Company (an "Approved Sale") and (ii) at the time of
such consent, the Controlling Stockholder Shares represent at least 40% of the
voting power of the then outstanding shares of voting capital stock of the
Company, then each holder of Stockholder Shares shall vote for, consent to, and
not object or otherwise impede the consummation of, the Approved Sale.

          3B. Required Actions. If the Approved Sale is structured as (i) a
merger or consolidation, each holder of Stockholder Shares shall vote its
Stockholder Shares to approve such merger or consolidation, whether by written
consent or at a stockholders meeting (as requested by the Required Controlling
Holder(s)), and waive all dissenter's rights, appraisal rights and similar
rights in connection with such merger or consolidation, (ii) a sale of stock,
each holder of Stockholder Shares shall agree to sell, and shall sell, all of
its Stockholder Shares and rights to acquire Stockholder Shares on the terms and
conditions so approved by the Required Controlling Holder(s), or (iii) a sale of
assets, each holder of Stockholder Shares shall vote its Stockholder Shares to
approve such sale and any subsequent liquidation of the Company or other
distribution of the proceeds therefrom, whether by written consent or at a
stockholders meeting (as requested by the Required Controlling Holder(s)). In
furtherance of the foregoing, (a) each holder of Stockholder Shares shall take
all actions reasonably requested by the Required Controlling Holder(s) in
connection with the consummation of the Approved Sale and (b) each holder of
Stockholder Shares shall make such representations and warranties, provide such
indemnities and enter into such other obligations (in each case subject to
Sections 3B(1), (2), (3) and (4) below) as the Required Controlling Holder(s)
may specify (but only to the extent the Required Controlling Holder(s) are
similarly obligated) in connection with such Approved Sale (including, without
limitation, voting to approve such transaction and executing the applicable
purchase agreement and other agreements). In any Approved Sale, (1) each holder
of

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Stockholder Shares shall be obligated to make representations and warranties as
to such Stockholder's title to and ownership of Stockholder Shares,
authorization, execution and delivery of relevant documents by such Stockholder,
enforceability of relevant agreements against such Stockholder and other matters
relating to such Stockholder, enter into covenants with respect to the Transfer
and the delivery at the Closing of such Stockholder's Stockholder Shares in
connection with such Approved Sale and enter into indemnification obligations
with respect to the foregoing, in each case to the extent that the Required
Controlling Holder(s) request that each other Stockholder be similarly obligated
(provided that no Stockholder shall be obligated to enter into indemnification
obligations with respect to any of the foregoing to the extent relating to any
other Stockholder or such other Stockholder's Stockholder Shares), (2) in no
event shall any Stockholder be liable in respect of any indemnity obligations
pursuant to any Approved Sale in an aggregate amount in excess of the value of
the total consideration paid and/or payable to such Stockholder in connection
with such Approved Sale, (3) appropriate contribution and indemnity arrangements
among the Stockholders shall be executed in connection with any joint indemnity
obligation of the Stockholders, so that such Stockholder is entitled to collect
from the other Stockholders the excess of such Stockholder's indemnity
obligations arising in connection with such Approved Sale over such
Stockholder's pro rata portion of such indemnity obligations, and (4) in no
event shall any Stockholder be obligated to enter into any post-closing
non-compete covenant in connection with such Approved Sale, in each case without
such Stockholder's prior written consent.

          3C. Conditions to Stockholders' Obligations. The obligations of the
holders of Stockholder Shares with respect to an Approved Sale are subject to
the satisfaction of the following conditions: (i) upon the consummation of the
Approved Sale, each holder of Stockholder Shares will receive in respect of its
Stockholder Shares the same form of consideration and the same portion of the
aggregate consideration that such holders of Stockholder Shares would have
received if such aggregate consideration had been distributed by the Company in
complete liquidation pursuant to the rights and preferences set forth in the
Certificate of Incorporation as in effect immediately prior to such Approved
Sale; (ii) if any holders of a class of Stockholder Shares are given an option
as to the form and amount of consideration to be received in respect of such
class of Stockholder Shares, each holder of such class of Stockholder Shares
will be given the same option; and (iii) each holder of then currently
exercisable rights to acquire shares of a class of Stockholder Shares will be
given an opportunity to exercise such rights prior to the consummation of the
Approved Sale and participate in such sale as holders of such class of
Stockholder Shares.

          3D. Rule 506 Transaction. If the Company or the Required Controlling
Holder(s) enter into any negotiation or transaction for which Rule 506 (or any
similar rule then in effect) promulgated by the Securities Exchange Commission
may be available with respect to such negotiation or transaction (including a
merger, consolidation or other reorganization), each holder of Stockholder
Shares who is not an "accredited investor" (as such term is defined in Rule 501)
will, at the reasonable request of the Company or the Required Controlling
Holder(s), appoint a "purchaser representative" (as such term is defined in Rule
501) reasonably acceptable to the Company and the Required Controlling
Holder(s). If any holder of Stockholder Shares appoints a purchaser
representative designated by the Company or the Required Controlling Holder(s),
the Company will pay the fees of such purchaser representative, but if any
holder of Stockholder Shares declines to appoint such purchaser representative
designated by the

                                       8

<PAGE>

Company or the Required Controlling Holder(s), then such holder shall appoint
another purchaser representative, and such holder shall be responsible for the
fees of the purchaser representative so appointed.

          3E. Expenses of Approved Sale. Holders of Stockholder Shares will bear
their pro rata share (as if such costs and expenses reduced the aggregate
proceeds available for distribution as contemplated by Section 3C(i) above) of
the costs and expenses of an Approved Sale to the extent reasonably incurred by
the Required Controlling Holder(s) for the benefit of all holders of Stockholder
Shares and not otherwise paid by the Company or the acquiring party. Costs and
expenses incurred by any holder of Stockholder Shares in connection with the
Transfer of its own shares or otherwise on its own behalf will not be considered
costs and expenses of the transaction hereunder and will be the responsibility
of such holder.

     SECTION 4. LIMITED PREEMPTIVE RIGHTS

          4A. Offering.

          (i) If after the date hereof the Company issues or sells or authorizes
the issuance or sale of any New Securities (as defined in Section 4C below) to
any holder of Stockholder Shares or any Affiliate thereof (other than to any
such holder or Affiliate thereof to the extent such New Securities are issued or
sold to such Person in such Person's capacity as an underwriter or placement
agent for the Company, provided that the sale of New Securities by such
underwriter or placement agent to any other holder of Stockholder Shares or any
Affiliate thereof shall be subject to this Section 4), the Company shall offer
each holder of Stockholder Shares a percentage of such New Securities equal to
the percentage result of the quotient determined by dividing (a) the number of
shares of Common Stock that are Stockholder Shares held by such holder on a
Fully Diluted Basis, by (b) the aggregate number of shares of Common Stock that
are Stockholder Shares on a Fully Diluted Basis. Each such holder of Stockholder
Shares shall be entitled to purchase such New Securities at the most favorable
price and on the most favorable other economic terms as such New Securities are
to be sold or issued; provided that, if a Person participating in such purchase
of New Securities is or was required in connection therewith also to purchase
other securities of the Company (including any debt instruments or
participations therein), the holders of Stockholder Shares exercising their
rights pursuant to this Section 4A shall also be required to purchase such other
securities on the same economic terms and conditions as those on which the
offeree of the New Securities is required to purchase such other securities
(e.g., such holder shall be required to purchase the same types and classes of
other securities, in the same proportions relative to their purchases of New
Securities and at the same unit prices). For example, if the Company offers to
sell shares of Common Stock constituting New Securities under the circumstances
described in the first sentence of this paragraph and requires, as part of such
purchase, the offeree of such Common Stock to also purchase a junior
subordinated promissory note, each holder of Stockholder Shares exercising
rights to purchase shares of Common Stock pursuant to this Section 4A would be
obligated also to purchase, at the same price per $1000 of principal, a junior
subordinated promissory note in a proportionate principal amount (i.e., so that
the ratio of the purchase price paid for the shares of Common Stock purchased by
each holder to the principal amount of the junior subordinated promissory note
purchased by such holder shall be the same for each such purchaser). Each holder
of Stockholder Shares participating in such purchase shall also be obligated to
execute

                                       9

<PAGE>

agreements in the form presented to such holder by the Company, so long as such
agreements are substantially similar to those proposed by the Company to be
executed by other purchasers of New Securities (without taking into
consideration any rights which do not entitle any purchaser to a higher economic
return on the New Securities than the economic return to which the other
Stockholders participating in such transaction will be entitled with respect to
such New Securities. The purchase price for all New Securities offered to each
holder of Stockholder Shares shall be payable in cash by wire transfer of
immediately available funds to an account designated by the Company.
Notwithstanding anything to the contrary contained herein, the Company shall not
have any obligation to issue, or to offer to issue, any equity securities under
this Section 4 to any holder of Stockholder Shares who is not an "accredited
investor" as such term is defined in Regulation D under the Securities Act.

          (ii) In order to exercise its purchase rights hereunder, each holder
of Stockholder Shares must deliver a written notice (an "Election Notice") to
the Company describing its election hereunder. Such Election Notice must be
delivered to the Company during the 15-day period (the "Offering Period")
following such holder's receipt of written notice from the Company describing in
reasonable detail the type, class and number of New Securities being offered,
the purchase price thereof, the payment terms and such holder's percentage
allotment. Any holder of Stockholder Shares may designate one or more Affiliates
of such Stockholder to exercise its purchase rights under this Section 4A.

          4B. Expiration of Offering Period . Until expiration of the 180-day
period immediately following the date on which the Offering Period expires, the
Company shall be entitled to sell any New Securities which no holder of
Stockholder Shares is or may be entitled to purchase pursuant to this Section 4,
on terms and conditions no more favorable to the offeree of such New Securities
than those offered to holders of Stockholder Shares pursuant to Section 4A. Any
New Securities offered or sold by the Company after such 180-day period must be
reoffered to each holder of Stockholder Shares pursuant to the terms of this
Section 4.

          4C. New Securities. For purposes hereof, "New Securities" means any
equity securities of the Company or any other securities containing options or
rights to acquire equity securities of the Company, other than (i) securities
issued pursuant to the Plan of Reorganization, (ii) Common Stock or other
securities issued directly or indirectly upon the conversion, exchange or
exercise of any securities issued pursuant to the Plan of Reorganization, (iii)
Common Stock or other securities issued directly or indirectly upon the
conversion, exchange or exercise of any securities previously issued in
compliance with this Section 4, (iv) Common Stock or other securities issued as
consideration for the acquisition of or investment in another company or
business (whether through a purchase of securities, a merger, consolidation,
purchase of assets or otherwise) and any Common Stock or other securities issued
directly or indirectly upon the conversion, exchange or exercise of any such
securities, (v) Common Stock or other securities issued in connection with any
stock split, dividend, combination or similar transaction, and (vi) any equity
securities, or options or other rights to acquire equity securities, of the
Company that are issued or granted to any employees, officers or directors of
the Company or any of its subsidiaries pursuant to arrangements approved by the
Board.

                                       10

<PAGE>

          4D. Termination. The rights and obligations under this Section 4 shall
terminate upon (and shall not apply to) the earlier to occur of (i) the
consummation of a Qualified Public Offering and (ii) the consummation of an
Approved Sale.

     SECTION 5. LEGEND

          Each certificate evidencing Stockholder Shares and each certificate
issued in exchange for or upon the transfer of any Stockholder Shares (if such
shares remain Stockholder Shares as defined herein after such Transfer) shall be
stamped or otherwise imprinted with a legend in substantially the following
form:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
          TRANSFER RESTRICTIONS PURSUANT TO AN INVESTOR RIGHTS AGREEMENT DATED
          AS OF SEPTEMBER 15, 2003, AMONG THE ISSUER OF SUCH SECURITIES (THE
          "COMPANY") AND CERTAIN OF THE COMPANY'S STOCKHOLDERS. A COPY OF SUCH
          INVESTOR RIGHTS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE
          COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST TO THE COMPANY'S
          CHIEF FINANCIAL OFFICER."

          The Company shall imprint such legend on all certificates evidencing
Stockholder Shares outstanding prior to the date hereof, if any. The legend set
forth above shall be promptly removed from the certificates evidencing any
Stockholder Shares for which the restrictions contained in Section 2 have
terminated in accordance with Section 2E hereof.

     SECTION 6. TRANSFER

          Prior to consummating, or committing to consummate, any Transfer of
any Stockholder Shares (other than pursuant to an In-Kind Distribution, a Public
Sale or an Approved Sale) to any Person (including any Permitted Transferee),
the transferor of such Stockholder Shares shall cause each prospective
transferee thereof to execute and deliver to the Company and to the Required
Controlling Holder(s) a Joinder Agreement. Any Transfer or attempted Transfer of
any Stockholder Shares in violation of the foregoing or any other provision of
this Agreement shall be void, and the Company shall not record such Transfer on
its books or treat any purported transferee of such Stockholder Shares as the
owner of such shares for any purpose.

     SECTION 7. BOARD OF DIRECTORS; VOTING

          7A. Composition of the Board. From and after the effectiveness of this
Agreement and until the provisions of this Section 7 cease to be effective, each
Stockholder shall vote all of his, her or its Stockholder Shares and any other
voting securities of the Company over which such Stockholder has voting control
(whether at a stockholders' meeting which has been duly called, or if so
requested by the Required Controlling Holder(s), by written consent) and shall
take all other necessary or desirable actions within his, her or its control
(including, without limitation, attendance at meetings in person or by proxy for
purposes of obtaining a quorum and

                                       11

<PAGE>

execution of written consents in lieu of meetings), and the Company shall take
all necessary and desirable actions within its control (including, without
limitation, calling special board and stockholder meetings), so that:

          (i) the authorized number of directors on the Company's Board shall be
established at seven directors or such greater number of directors as the Board
may specify from time to time by written notice to the Company;

          (ii) the following persons shall be elected to the Board:

               (a) the Company's chief executive officer (the "Executive
     Director") or, at any time when no person is then serving as the Company's
     chief executive officer, a person designated by a majority of the members
     of the Board (an "Interim Executive Director"); provided that an Interim
     Executive Director shall serve on the Board only for so long as no person
     is serving as the Company's chief executive officer and shall be removed at
     such time thereafter as the Board elects a person to serve as the Company's
     chief executive officer and such person has commenced to serve the Company
     in such capacity;

               (b) four persons designated by the Required Controlling Holder(s)
     so long as the Controlling Stockholder Shares represent at least 40% of the
     voting power of the then outstanding shares of voting capital stock of the
     Company; three persons designated by the Required Controlling Holders so
     long as the Controlling Stockholder Shares represent at least 27% but less
     than 40% of the voting power of the then outstanding shares of voting
     capital stock of the Company; two persons designated by the Required
     Controlling Holders so long as the Controlling Stockholder Shares represent
     at least 14% but less than 27% of the voting power of the then outstanding
     shares of voting capital stock of the Company; and one person designated by
     the Required Controlling Holders so long as the Controlling Stockholder
     Shares represent at least 1% but less than 14% of the voting power of the
     then outstanding shares of voting capital stock of the Company; the
     individuals designated pursuant to this clause (b) are referred to herein,
     collectively, as the "Controlling Stockholders Directors" and each,
     individually, as a "Controlling Stockholders Director", and such designees
     shall initially be Stephen A. Kaplan, Michael P. Harmon, Geoffrey S.
     Rehnert and Timothy White;

               (c) one person designated by the Majority New Non-Controlling
     Holder(s) so long as the New Non-Controlling Stockholder Shares represent
     at least 1% of the voting power of the then outstanding shares of voting
     capital stock of the Company, and, after such Stockholder Shares cease to
     represent at least 1% of such voting power, one person designated by a
     majority of the members of the Board (the "New Non-Controlling Stockholders
     Director"), who initially shall be Stephen S. Gray; provided that the
     rights of the Majority New Non-Controlling Holder(s) under this Section
     7A(ii)(c) shall terminate upon consummation of a Sale of the Company;
     provided, further, the New Non-Controlling Stockholders Director shall not
     be a principal, director, officer or other employee of (x) any Other New
     Stockholder, (y) any other Stockholder who, together with its Affiliates,
     owns 10% or more of the voting

                                       12

<PAGE>

     power of the then outstanding shares of voting capital stock of the
     Company, or (z) any Affiliate of any Stockholder described in clause (x) or
     (y); and

               (d) one person designated in accordance with Article V.D of the
     Plan of Reorganization (the "Initial Board Designee"), who initially shall
     be Arthur S. Holmes; provided that the Initial Board Designee shall serve
     for a term beginning on the Consummation Date (as defined in the Plan of
     Reorganization) and ending upon the first to occur of (i) the first annual
     or special meeting held for the election of directors of the Company or
     (ii) the first written consent of Stockholders taken for the election of
     directors of the Company, in each case held or taken on or after the second
     anniversary of the Consummation Date, after which time such directorship
     shall be filled by a person designated by a majority of the members of the
     Board (excluding the Initial Board Designee); and

               (e) if and so long as the authorized number of directors on the
     Board is greater than seven directors, then the Additional Controlling
     Number of directorships shall be filled by person(s) designated by the
     Required Controlling Holder(s) (each an "Additional Controlling Director"
     and, collectively, the "Additional Controlling Directors"); provided that
     the rights of the Required Controlling Holder(s) under this Section
     7A(ii)(e) shall terminate at such time as the Controlling Stockholder
     Shares represent less than 40% of the voting power of the then outstanding
     shares of voting capital stock of the Company;

          (iii) a person designated by a majority of the members of the Board
shall at all times serve as the chairman of the Board;

          (iv) upon the request of the Required Controlling Holder(s), the
composition of the board of directors (or equivalent governing body) of any or
all of the Company's subsidiaries (each a "Sub Board") shall, to the fullest
extent permitted by applicable law, be the same as that of the Board, but in any
case shall (x) upon the request of the Required Controlling Holder(s), include a
number of Controlling Stockholders Directors who, together with the Additional
Controlling Directors, represent a number of members of such Sub Board
proportionate to the ratio that the sum of Controlling Stockholders Directors
and Additional Controlling Directors represents to the total number of directors
then on the Board, and (y) upon the request of the Majority New Non-Controlling
Holder(s), include the Non-Controlling Stockholders Director;

          (v) the composition of any committee of the Board or any committee of
any Sub Board shall, to the fullest extent permitted by applicable law or stock
exchange regulation, (x) upon the request of the Required Controlling Holder(s),
include a number of Controlling Stockholders Directors who, together with the
Additional Controlling Directors, represent a number of members of such
committee proportionate to the ratio that the sum of Controlling Stockholders
Directors and Additional Controlling Directors represents to the total number of
directors then on the Board (not to exceed a majority of the members of such
committee solely as a result of this Section 7A(v)) and (y) except with respect
to the Audit and Compensation Committees, upon the request of the Majority New
Non-Controlling Holder(s), include the New Non-Controlling Stockholders
Director;

                                       13

<PAGE>

          (vi) if the person serving as Executive Director ceases to be the
chief executive officer of the Company, such person is removed immediately as a
director of the Company and each of its Subsidiaries;

          (vii) a Controlling Stockholders Director is removed without cause
from the Board, any Sub Board or any committee thereof (and shall be so removed)
only upon the written request of the Required Controlling Holder(s);

          (viii) the New Non-Controlling Stockholders Director is removed
without cause from the Board, any Sub Board or any committee thereof (and shall
be so removed) only upon the written request of the Majority New Non-Controlling
Holder(s);

          (ix) the Initial Board Designee is removed from the Board or any Sub
Board, or any committee thereof, during such director's term of office, and
shall be so removed, only in accordance with Article V.D of the Plan of
Reorganization;

          (x) an Additional Controlling Director is removed without cause from
the Board or any Sub Board, or any committee thereof, and shall be so removed,
only upon the written request of the Required Controlling Holder(s);

          (xi) in the event that any person designated as a director pursuant to
any subparagraph of Section 7A(ii) for any reason ceases to serve as a member of
the Board or a Sub Board, or any committee thereof, during such person's term of
office (other than on account of the termination of the rights of the Person or
Persons to designate such director pursuant to such subparagraph), the resulting
vacancy shall be filled by a person designated by the Person or Persons then
entitled to designate such director pursuant to such subparagraph of Section
7A(ii) or, in the case of the Initial Board Designee, in accordance with Article
V.D of the Plan of Reorganization;

          (xii) so long as Audax or any of its Affiliates owns any Stockholder
Shares, any employee, agent or legal representative of Audax designated in
writing to the Company shall be entitled to (x) attend meetings, and participate
in discussions, of the Board, any Sub Board and/or any of their respective
committees, but will not be allowed to vote on any matter submitted for a vote
to the Board, any Sub Board or any of their respective committees (provided that
nothing in this subparagraph (xii) shall in any manner limit the rights of the
Required Controlling Holder(s) under Section 7A(ii)), and (y) discuss the
business operations, properties and financial and other conditions of the
Company with any authorized officer, employee, agent, representative, director
or independent accountant of the Company and, upon reasonable notice to the
Company, any authorized officer, agent, representative, director or independent
accountant of any subsidiary of the Company;

          (xiii) so long as Oaktree or any of its Affiliates owns any
Stockholder Shares, any employee, agent or legal representative of Oaktree
designated in writing to the Company shall be entitled to (x) attend meetings,
and participate in discussions, of the Board, any Sub Board and/or any of their
respective committees, but will not be allowed to vote on any matter submitted
for a vote to the Board, any Sub Board or any of their respective committees
(provided that nothing in this subparagraph (xiii) shall in any manner limit the
rights of the Required

                                       14

<PAGE>

Controlling Holder(s) under Section 7A(ii)), and (y) discuss the business
operations, properties and financial and other conditions of the Company with
any authorized officer, employee, agent, representative, director or independent
accountant of the Company and, upon reasonable notice to the Company, any
authorized officer, agent, representative, director or independent accountant of
any subsidiary of the Company;

          (xiv) directors' fees shall not be paid to any of the Controlling
Stockholders Directors unless such fees are approved by a majority of the other
directors then serving on the Board; and

          (xv) except as otherwise contemplated by the Plan of Reorganization or
this Agreement, neither the Company nor any subsidiary of the Company shall
enter into any agreement or other transaction after the date hereof with any
Stockholder or any Affiliate of any Stockholder without the approval of a
majority of the disinterested directors or the consent of the holders of a
majority of the Stockholder Shares held by all Stockholders other than such
Stockholder and its Affiliates.

          7B. Board Meeting Expenses. The Company shall pay all reasonable
out-of-pocket expenses incurred by each director in connection with attending
regular and special meetings of the Board and any Sub Board, and any committee
thereof.

          7C. Irrevocable Proxy. In order to secure the obligations of each
Stockholder who now or hereafter holds any voting securities of the Company to
vote such voting securities in accordance with the provisions of Section 3 and
this Section 7, each Stockholder other than Oaktree hereby irrevocably appoints
Oaktree (and each of its managing directors), and Oaktree hereby irrevocably
appoints Audax Management Company, LLC (and each of its managing directors), as
such Persons' true and lawful proxy and attorney-in-fact, with full power of
substitution, to vote all of his, her or its Stockholder Shares (and, in the
case of Oaktree, all Stockholder Shares which it is entitled to vote pursuant to
this Section 7C) (i) for an Approved Sale and all such other matters as
expressly provided for in Section 3A and Section 3B, (ii) for the election
and/or removal of directors and all such other matters as expressly provided for
in Section 7A and (iii) as otherwise determined by the Required Controlling
Holder(s) to be necessary to enforce the obligations of any Stockholder
hereunder; provided, however, that no such action shall (a) be inconsistent with
the terms of this Agreement or (b) have a material adverse effect on any
Stockholder's rights or interests in respect of any class of Stockholder Shares
that would be borne disproportionately by such Stockholder relative to the
effect on the rights or interests of other Stockholders in respect of holdings
of Stockholder Shares of the same class, unless approved by holders of a
majority of the Stockholder Shares so adversely affected. Oaktree may exercise
the irrevocable proxy granted to it hereunder by any Stockholder only at such
time(s) as such Stockholder fails to comply with the provisions of this
Agreement, and Audax Management Company, LLC may exercise the irrevocable proxy
granted to it hereunder by Oaktree only at such time(s) as Oaktree fails to
comply with the provisions of this Agreement or a Stockholder (other than
Oaktree) fails to comply with the provisions of this Agreement and Oaktree does
not exercise the irrevocable proxy granted to it hereunder by such Stockholder
to cause such Stockholder to comply with the provisions of this Agreement. The
proxies and powers granted by each Stockholder pursuant to this Section 7C are
coupled with an interest and are given to secure the performance of each such
Person's obligations under this Agreement.

                                       15

<PAGE>

Such proxies and powers shall be irrevocable until the earlier of (x)
termination of this Section 7 and (y) an Approved Sale, and shall survive the
death, incompetency, disability, bankruptcy or dissolution of any Person
appointing Audax Management Company, LLC or Oaktree as such Person's true and
lawful proxy and attorney-in-fact. No Stockholder shall grant any proxy or
become party to any voting trust or other agreement which is inconsistent with,
conflicts with or violates any provision of this Agreement.

          7D. Termination. Except as otherwise set forth in this Section 7, the
rights and obligations under this Section 7 shall terminate at such time as the
Required Controlling Holder(s) and the Majority New Non-Controlling Holder(s) no
longer have the right to designate any directors pursuant to Section 7A(ii)(b)
or 7A(ii)(c), respectively.

     SECTION 8. DEMAND REGISTRATIONS

          8A. Requests for Registration. Subject to Sections 8B and 8C, at any
time and from time to time the Required Controlling Holder(s) may request
registration under the Securities Act (a "Demand Registration") of all or any
portion of such holders' Registrable Securities on Form S-1 or any similar
long-form registration (a "Long-Form Registration") or, if available, on Form
S-2 or S-3 or any similar short-form registration (a "Short-Form Registration").
In addition, subject to Section 8C, at any time subsequent to consummation of a
Qualified Public Offering after the date hereof, or at any time prior thereto
with the prior written consent of the Required Controlling Holder(s),
Stockholders who then collectively hold at least 35% of the Other Registrable
Securities may request a Demand Registration of all or any portion of such
holders' Registrable Securities. Each request for a Demand Registration shall
specify the approximate number of Registrable Securities requested to be
registered and the anticipated per share price range for such offering. Within
ten (10) days after receipt of any such request, the Company will give written
notice of such requested registration to all other holders of Registrable
Securities and, subject to Section 8D below, will include in such registration
all Registrable Securities with respect to which the Company has received
written requests for inclusion therein within fifteen (15) days after the
receipt of the Company's notice.

          8B. Long-Form Registrations. The Required Controlling Holder(s) will
be entitled to request three (3) Long-Form Registrations, and Stockholders who
then collectively hold at least 35% of the Other Registrable Securities will be
entitled to request one (1) Long-Form Registration, in each case for which the
Company shall pay all Registration Expenses, but only if a Short-Form
Registration is not then available and the aggregate offering value of the
Registrable Securities initially requested by such Stockholder(s) to be
registered in such Long-Form Registration is at least $25,000,000; provided
that, in the event the holders of the Registrable Securities initially requested
to be included in such Demand Registration (the "Initiating Holders") are unable
to sell at least 80% of the Registrable Securities initially requested (and not
withdrawn) by such holder(s) to be included in such registration, then such
request and any related registration shall not count as any of the Company-paid
Long-Form Registrations to which such holders are entitled to request pursuant
to this Section 8B, and in any event the Company shall pay all Registration
Expenses incurred in connection with any such registration whether or not such
registration has counted as any of such Company-paid Long-Form Registrations.

                                       16

<PAGE>

          8C. Short-Form Registrations. The Required Controlling Holder(s) will
also be entitled to request unlimited Short-Form Registrations, and the
Stockholders who then collectively hold at least 35% of the Other Registrable
Securities will be entitled to request one (1) Short-Form Registration (but only
if such holders have not previously requested a Long-Form Registration), for
which the Company shall pay all Registration Expenses; provided that, in the
event the Initiating Holder(s) of Other Registrable Securities are unable to
sell at least 80% of the Registrable Securities initially requested (and not
withdrawn) by such holder(s) to be included in such registration, then such
request and any related registration shall not count as the one (1) Company-paid
Short-Form Registration to which the holders of at least 35% of Other
Registrable Securities are entitled to request pursuant to this Section 8C;
provided, further, in each case the Company shall pay all Registration Expenses
incurred in connection with any such registration whether or not such
registration has counted as a Company-paid Short-Form Registration. Demand
Registrations will be Short-Form Registrations whenever the Company is permitted
to use any applicable short form. The Company will use its reasonable best
efforts to make Short-Form Registrations available for the sale of Registrable
Securities.

          8D. Priority on Demand Registrations. The Company will not include in
any Demand Registration any securities which are not Registrable Securities
without the prior written consent of Initiating Holders who hold a majority of
the Registrable Securities initially requested to be included in such Demand
Registration by the Initiating Holders. If a Demand Registration is an
underwritten offering and the managing underwriters advise the Company in
writing that in their opinion the number of Registrable Securities and, if
permitted hereunder, other securities requested to be included in such offering
exceeds the number of Registrable Securities and other securities, if any, which
can be sold in an orderly manner in such offering within a price range
acceptable to the Initiating Holders who hold a majority of the Registrable
Securities initially requested to be included in such Demand Registration by the
Initiating Holders (the "Optimal Number"), the Company shall include in such
registration, if any, (i) first, the Registrable Securities requested to be
included in such registration up to the Optimal Number, pro rata among the
holders of such Registrable Securities on the basis of the number of Registrable
Securities owned by each such holder, and (ii) second, if all Registrable
Securities requested to be included in such registration by the holders thereof
have been so included, such other securities requested to be included in such
registration up to a number of such securities that, when combined with the
Registrable Securities included in such registration, causes the total number of
securities (including all Registrable Securities) included in such registration
to be less than or equal to the Optimal Number.

          8E. Restrictions on Demand Registrations. The Company will not be
obligated to effect any Demand Registration within six (6) months after the
effective date of a previous Demand Registration. The Company may postpone for
up to six (6) months the filing or the effectiveness of a registration statement
for a Demand Registration if the Board determines that such Demand Registration
would reasonably be expected to have an adverse effect on any proposal or plan
by the Company or any of its Subsidiaries to engage in any acquisition of assets
(other than in the ordinary course of business) or any merger, consolidation,
tender offer or similar transaction; provided that, in such event, the
Initiating Holders will be entitled to withdraw such request.

                                       17

<PAGE>

          8F. Selection of Underwriters. If any Demand Registration is an
underwritten offering, the Board will have the right to select the investment
banker(s) and manager(s) which will administer such offering.

          8G. Other Registration Rights. Except as provided in this Agreement,
the Company will not grant to any Person or group of Persons the right to
request the Company to register any equity securities of the Company (whether as
a demand registration or a piggyback registration), or any securities
convertible or exchangeable into or exercisable for such securities, without the
prior written consent of the Required Controlling Holder(s).

          8H. Demand Registration Expenses. The Registration Expenses incurred
in connection with any Demand Registration requested in accordance with Section
8A shall be paid by the Company, including the reimbursement of the holders of
Registrable Securities included in such registration for the reasonable fees and
disbursements of one counsel chosen by the holder(s) of a majority of the
Registrable Securities included in such registration.

     SECTION 9. PIGGYBACK REGISTRATIONS

          9A. Right to Piggyback. Whenever the Company proposes to register any
of its securities under the Securities Act (other than (i) in connection with
the Company's initial primary Public Offering (i.e., the initial Public Offering
for the Company's own account) consummated after the date hereof (unless
Registrable Securities are otherwise included in such offering), (ii) pursuant
to a Demand Registration (but subject to the rights of holders of Registrable
Securities to participate in Demand Registrations pursuant to Section 8) or
(iii) pursuant to a registration on Form S-4 or S-8 or any successor or similar
forms) and the registration form to be used may be used for the registration of
Registrable Securities (a "Piggyback Registration"), the Company shall give
prompt written notice to all holders of Registrable Securities of its intention
to effect such a registration and will use its reasonable best efforts to
include in such registration all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within fifteen
(15) days after the receipt of the Company's notice.

          9B. Piggyback Expenses. The Registration Expenses of the holders of
Registrable Securities will be paid by the Company in all Piggyback
Registrations.

          9C. Priority on Primary Registrations. If a Piggyback Registration is
an underwritten primary registration on behalf of the Company, and the managing
underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number
which can be sold in such offering in an orderly manner within a price range
acceptable to the Company (the "Primary Optimal Number"), the Company will
include in such registration, if any, (i) first, the securities the Company
proposes to sell on its own behalf up to the Primary Optimal Amount, (ii)
second, if all securities the Company proposes to sell on its own behalf are
included in such registration, the Registrable Securities requested to be
included in such registration, pro rata among the holders of such Registrable
Securities on the basis of the number of shares owned by each such holder, up to
an aggregate number of such Registrable Securities that, when combined with the
securities being sold by the Company on its own behalf in such registration,
causes the total number of securities

                                       18

<PAGE>

(including all Registrable Securities) included in such registration to be less
than or equal to the Primary Optimal Number, and (iii) third, if all Registrable
Securities requested to be included in such registration by the holders thereof
have been so included, such other securities requested to be included in such
registration up to a number of such securities that, when combined with the
securities being sold by the Company on its own behalf and the Registrable
Securities included in such registration, causes the total number of securities
(including all securities being sold by the Company on its own behalf and all
Registrable Securities) included in such registration to be equal to the Primary
Optimal Number.

          9D. Other Registrations. If the Company has previously filed a
registration statement with respect to Registrable Securities pursuant to
Section 8 or pursuant to this Section 9 and if such previous registration has
not been withdrawn or abandoned, the Company will not file or cause to be
effected any other registration of any of its equity securities or securities
convertible or exchangeable into or exercisable for its equity securities under
the Securities Act (except on Form S-4 or S-8 or any successor form), whether on
its own behalf or at the request of any holder or holders of such securities,
until a period of at least six (6) months has elapsed from the effective date of
such previous registration.

          9E. Postponement or Withdrawal. If, at any time after giving written
notice of its intention to register any of its securities as set forth in
Section 9A and prior to the effective date of such registration statement filed
in connection with such registration, the Board shall determine in its good
faith judgment for any reason not to register such securities, the Company may,
at its election, give written notice of such determination to each holder of
Registrable Securities and thereupon shall be relieved of its obligation to
register any Registrable Securities in connection with such registration (but
not from its obligation to pay the Registration Expenses incurred prior to such
notice in connection therewith as provided herein).

     SECTION 10. HOLDBACK AGREEMENTS

          10A. Agreement of Holders of Registrable Securities. No holder of
Stockholder Shares shall (a) offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, lend, or otherwise Transfer, directly
or indirectly, any equity securities of the Company, or any securities, options
or rights convertible into or exchangeable or exercisable for such securities or
(b) enter into any swap or other arrangement that transfers to another, in whole
or in part, any of the economic consequences of ownership of equity securities
of the Company, in either case during the seven (7) days prior to and the
180-day period beginning on the effective date of the Company's initial primary
Public Offering (i.e., the initial Public Offering for the Company's own
account) consummated after the date hereof, any underwritten Demand Registration
or any underwritten Piggyback Registration (except as part of such underwritten
registration), unless the underwriters managing such registered Public Offering
otherwise agree in writing. The foregoing restrictions set forth in this Section
10A shall not apply to (i) transactions relating to shares of Common Stock or
other securities acquired in open market transactions after the completion of
the Company's initial primary Public Offering consummated after the date hereof,
(ii) Transfers to a Permitted Transferee of such holder in accordance with the
terms of this Agreement, or (iii) conversions of equity securities of the
Company into other classes of equity securities of the Company without change of
holder.

                                       19

<PAGE>

          10B. Company Agreement. The Company will (i) not effect any public
sale or distribution of its equity securities, or any securities convertible
into or exchangeable or exercisable for such securities, during the seven days
prior to and during the 180-day period beginning on the effective date of the
Company's initial primary Public Offering (i.e., the initial Public Offering for
the Company's own account) consummated after the date hereof, any underwritten
Demand Registration or any underwritten Piggyback Registration (except as part
of such underwritten registration or pursuant to registrations on Form S-4 or
S-8 or any successor form), unless the underwriters managing such registered
Public Offering otherwise agree, and (ii) cause each holder of shares of Common
Stock, or any securities convertible into or exchangeable or exercisable for
shares of Common Stock, purchased from the Company at any time after the date of
this Agreement (other than in a Public Offering or as a distribution under the
Plan of Reorganization to a Person who is not a Stockholder hereunder) to agree
not to, directly or indirectly, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, lend, or otherwise Transfer any such
shares or other securities during the seven (7) days prior to and the 180-day
period beginning on the effective date of the Company's initial primary Public
Offering consummated after the date hereof, any underwritten Demand Registration
or any underwritten Piggyback Registration (except as part of such underwritten
registration), unless the underwriters managing such registered Public Offering
otherwise agree in writing.

     SECTION 11. REGISTRATION PROCEDURES

          Whenever the holders of Registrable Securities have requested that any
Registrable Securities be registered pursuant to this Agreement, the Company
will use its reasonable best efforts to effect the registration and the sale of
such Registrable Securities in accordance with the intended method of
disposition thereof, and pursuant thereto the Company will as expeditiously as
reasonably possible:

          (i) prepare and file with the Securities and Exchange Commission a
registration statement with respect to such Registrable Securities and
thereafter use its best efforts to cause such registration statement to become
effective (provided that before filing a registration statement or prospectus or
any amendments or supplements thereto, the Company will furnish to the counsel
selected by the holders of a majority of the Registrable Securities initiating
such registration statement copies of all such documents proposed to be filed,
which documents will be subject to review of such counsel);

          (ii) notify each holder of Registrable Securities of the effectiveness
of each Registration Statement filed hereunder and prepare and file with the
Securities and Exchange Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective for a period of either
(i) not less than six (6) months (subject to extension pursuant to Section 14)
or, if such registration statement relates to an underwritten offering, such
longer period as in the opinion of counsel for the underwriters a prospectus is
required by law to be delivered in connection with sales of Registrable
Securities by an underwriter or dealer or (ii) such shorter period as will
terminate when all of the securities covered by such registration statement have
been disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such registration statement (but in any
event not before the

                                       20

<PAGE>

expiration of any longer period required under the Securities Act), and to
comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement until such time as all
of such securities have been disposed of in accordance with the intended methods
of disposition by the seller or sellers thereof set forth in such registration
statement; provided that the Company shall not be obligated to maintain the
effectiveness of any registration statement for a period of more than twelve
(12) months from the date on which the such registration statement initially
becomes effective;

          (iii) furnish to each seller of Registrable Securities such number of
copies of such registration statement, each amendment and supplement thereto,
the prospectus included in such registration statement (including each
preliminary prospectus) and such other documents as such seller may reasonably
request in order to facilitate the disposition of the Registrable Securities
owned by such seller;

          (iv) use its best efforts to register or qualify such Registrable
Securities under such other securities or blue sky laws of such jurisdictions as
any seller reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
seller (provided that the Company will not be required to (i) qualify generally
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this subparagraph, (ii) subject itself to taxation in any such
jurisdiction or (iii) consent to general service of process in any such
jurisdiction);

          (v) notify each seller of such Registrable Securities, at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act, upon discovery that, or upon the discovery of the happening of
any event as a result of which, the prospectus included in such registration
statement contains an untrue statement of a material fact or omits any fact
necessary to make the statements therein not misleading in the light of the
circumstances under which they were made, and, at the request of any such
seller, the Company will prepare and furnish to such seller a reasonable number
of copies of a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of such Registrable Securities, such prospectus will
not contain an untrue statement of a material fact or omit to state any fact
necessary to make the statements therein not misleading in the light of the
circumstances under which they were made;

          (vi) use its best efforts to cause all such Registrable Securities to
be listed on each securities exchange or market on which similar securities
issued by the Company are then listed and, if not so listed, to be listed on the
NASD automated quotation system (if such Registrable Securities are eligible to
be so listed) and, if listed on the NASD automated quotation system, use its
best efforts to secure designation of all such Registrable Securities covered by
such registration statement as a NASDAQ "national market system security" within
the meaning of Rule 11Aa2-1 of the Securities and Exchange Commission or,
failing that, to secure NASDAQ authorization for such Registrable Securities (if
such Registrable Securities are so eligible) and, without limiting the
generality of the foregoing, to arrange for at least two market makers to
register as such with respect to such Registrable Securities with the NASD,
subject to the applicable rules of the NASD;

                                       21

<PAGE>

          (vii) provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such registration statement;

          (viii) enter into such customary agreements (including underwriting
agreements in customary form) as may be requested by the underwriters and take
all such other actions as the holders of a majority of the Registrable
Securities being sold or the underwriters, if any, reasonably request in order
to expedite or facilitate the disposition of such Registrable Securities
(including, without limitation, effecting a stock split or a combination of
shares);

          (ix) make available for inspection by any seller of Registrable
Securities, any underwriter participating in any disposition pursuant to such
registration statement and any attorney, accountant or other agent retained by
any such seller or underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company's
officers, directors, employees and independent accountants to supply all
information reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with such registration statement;

          (x) otherwise use its best efforts to comply with all applicable rules
and regulations of the Securities and Exchange Commission, and make available to
its security holders, as soon as reasonably practicable, an earnings statement
covering the period of at least twelve months beginning with the first day of
the Company's first full calendar quarter after the effective date of the
registration statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder;

          (xi) permit any holder of Registrable Securities which holder, in its
sole and exclusive judgment, might be deemed to be an underwriter or a
controlling person of the Company, to participate in the preparation of such
registration or comparable statement and to require the insertion therein of
material, furnished to the Company in writing, which in the reasonable judgment
of such holder and its counsel should be included;

          (xii) in the event of the issuance of any stop order suspending the
effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any Securities included in such registration statement for sale in any
jurisdiction, the Company will use its reasonable best efforts promptly to
obtain the withdrawal of such order;

          (xiii) obtain one or more comfort letters, dated the effective date of
such registration statement (and, if such registration includes an underwritten
Public Offering, dated the date of the closing under the underwriting
agreement), signed by an independent public accounting firm (reasonably
acceptable to the holders of a majority of the Registrable Securities included
in such registration) in customary form and covering such matters of the type
customarily covered by comfort letters as the holders of a majority of the
Registrable Securities included in such registration reasonably request
(provided that such Registrable Securities constitute at least 10% of the
securities covered by such registration statement); and

          (xiv) as required by the Securities Act or by an underwriter, provide
a legal opinion of the Company's outside counsel, dated the effective date of
such registration statement

                                       22

<PAGE>

(and, if such registration includes an underwritten public offering, dated the
date of the closing under the underwriting agreement), with respect to the
registration statement, each amendment and supplement thereto, the prospectus
included therein (including the preliminary prospectus) and such other documents
relating thereto in customary form and covering such matters of the type
customarily covered by legal opinions of such nature.

The Company may require each seller of Registrable Securities as to which any
registration is being effected to furnish the Company such information relating
to the Registrable Securities held by such seller and the intended method of
distribution of such securities as the Company may from time to time reasonably
request in writing.

     SECTION 12. REGISTRATION EXPENSES

          12A. Company Expenses. All expenses incident to the Company's
performance of or compliance with Sections 8, 9, 10, 11, 12, 13 and/or 14 of
this Agreement, including, without limitation, all registration and filing fees,
fees and expenses of compliance with securities or blue sky laws, printing
expenses, messenger and delivery expenses, and fees and disbursements of counsel
for the Company and all independent certified public accountants, underwriters
(excluding discounts and commissions) and other Persons retained by the Company
(all such expenses being herein called "Registration Expenses"), will be borne
as provided in this Agreement, except that the Company will, in any event, pay
its internal expenses (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the
expense of any annual audit or quarterly review, the expense of any liability
insurance and the expenses and fees for listing the securities to be registered
on each securities exchange on which similar securities issued by the Company
are then listed or on the NASD automated quotation system.

          12B. Reimbursement. In connection with each Demand Registration and
each Piggyback Registration, the Company will reimburse the holders of
Registrable Securities covered by such registration for the reasonable fees and
disbursements of one counsel chosen by the holders of a majority of the
Registrable Securities included in such registration. In addition, in connection
with each Demand Registration and each Piggyback Registration, the Company shall
reimburse the holders of Registrable Securities included in such registration
for the reasonable fees and disbursements of each additional counsel retained by
any holder of Registrable Securities to the extent related to the rendering of
any legal opinion required by the Company or the managing underwriter(s) to be
rendered on behalf of such holder in connection with any underwritten Demand
Registration or Piggyback Registration.

     SECTION 13. INDEMNIFICATION

          13A. Indemnification Obligation of the Company. In connection with any
registration statement in which a holder of Registrable Securities is
participating, the Company agrees to indemnify and hold harmless, to the extent
permitted by law, each such holder of Registrable Securities, its officers and
directors and each Person who controls such holder (within the meaning of the
Securities Act) against any losses, claims, damages, liabilities and expenses
caused by (i) any untrue or alleged untrue statement of material fact contained
in such registration statement and/or related prospectus or preliminary
prospectus or in any disclosure

                                       23

<PAGE>

document incorporated by reference in such registration statement, prospectus or
preliminary prospectus, or any amendment thereof or supplement thereto, or (ii)
any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading, except in so
far as the same are caused by or contained in any information furnished in
writing to the Company by or on behalf of such holder expressly for use therein
or by such holder's failure to deliver a copy of the registration statement or
prospectus or any amendments or supplements thereto after the Company has
furnished such holder with a sufficient number of copies of the same. In
connection with an underwritten offering, the Company will indemnify such
underwriters, their officers and directors and each Person who controls such
underwriters (within the meaning of the Securities Act) to the same extent as
provided above with respect to the indemnification of the holders of Registrable
Securities.

          13B. Indemnification of the Company. In connection with any
registration statement in which a holder of Registrable Securities is
participating, each such holder will furnish to the Company in writing such
information and affidavits relating to such holder's Registrable Securities as
the Company reasonably requests for use in connection with any such registration
statement or prospectus and, to the extent permitted by law, will indemnify and
hold harmless the Company, its directors and officers and each other Person who
controls the Company (within the meaning of the Securities Act) against any
losses, claims, damages, liabilities and expenses caused by (i) any untrue or
alleged untrue statement of material fact contained in the registration
statement, prospectus or preliminary prospectus or any amendment thereof or
supplement thereto or (ii) any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, but only to the extent that such untrue statement or omission is
contained in any information or affidavit so furnished (or provided under
Section 11(xi)) in writing by or on behalf of such holder; provided that the
obligation to indemnify will be individual to each holder and will be limited to
the net amount of proceeds received by such holder from the sale of Registrable
Securities pursuant to such registration statement.

          13C. Indemnification Procedures. Any Person entitled to
indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification
(provided that the failure to give prompt notice shall not impair any Person's
right to indemnification hereunder to the extent such failure has not adversely
affected the indemnifying party) and (ii) unless in such indemnified party's
reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party. If such defense is assumed, the
indemnifying party will not be subject to any liability for any settlement made
by the indemnified party without its consent (but such consent will not be
unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim will not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment
of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to such
claim.

          13D. Other Indemnification Provisions. The indemnification provided
for under this Agreement will remain in full force and effect regardless of any
investigation made by

                                       24

<PAGE>

or on behalf of the indemnified party or any officer, director or controlling
Person of such indemnified party and will survive the transfer of securities.
The Company and any other indemnifying party with respect to the matters set
forth in Sections 8 through 13 of this Agreement also agree to make such
provisions, as are reasonably requested by any indemnified party, for
contribution to such party in the event the Company's indemnification is
unavailable for any reason.

     SECTION 14. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS

          No Person may participate in any registration hereunder which is
underwritten unless such Person (i) agrees to sell such Person's securities on
the basis provided in any underwriting arrangements approved by the Person or
Persons entitled hereunder to approve such arrangements (including, without
limitation, pursuant to the terms of any over-allotment or "green shoe" option
requested by the managing underwriter(s), provided that no holder of Registrable
Securities will be required to sell more than the number of Registrable
Securities that such holder has requested the Company to include in any
registration) and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements. Each Person that is
participating in any registration hereunder agrees that, upon receipt of any
notice from the Company of the occurrence of any event of the kind described in
Section 11(v) above, such Person will forthwith discontinue the disposition of
its Registrable Securities pursuant to the registration statement until such
Person's receipt of the copies of a supplemented or amended prospectus as
contemplated by such Section 11(v). In the event the Company shall give any such
notice, the applicable time period mentioned in Section 11(ii) during which a
Registration Statement is to remain effective shall be extended by the number of
days during the period from and including the date of the giving of such notice
pursuant to this Section 14 to and including the date when each seller of
Registrable Securities covered by such registration statement shall have
received the copies of the supplemented or amended prospectus contemplated by
Section 11(v).

     SECTION 15. COVENANTS

          15A. Restrictive Covenants. Except as otherwise expressly set forth in
the Plan of Reorganization or the related confirmation order, the Company shall
not, without the prior written consent of the Required Controlling Holder(s):

          (i) directly or indirectly declare or pay any dividends or make any
distributions upon any of its capital stock or other equity securities, except
for dividends payable in shares of Common Stock issued upon the outstanding
shares of Common Stock;

          (ii) directly or indirectly redeem, purchase or otherwise acquire, or
permit any subsidiary of the Company to redeem, purchase or otherwise acquire,
any of the Company's or any such subsidiary's capital stock or other equity
securities (including, without limitation, warrants, options and other rights to
acquire such capital stock or other equity securities), except for repurchases
of Common Stock from current or former employees of the Company and its
subsidiaries upon termination of employment, or for repurchases of Common Stock
under

                                       25

<PAGE>

stock-related employee benefit plans, in each case pursuant to arrangements
approved after the date hereof by the Company's Board and except as otherwise
required by applicable law;

          (iii) authorize, issue or enter into, or permit any subsidiary of the
Company to authorize, issue or enter into, any agreement providing for the
issuance (contingent or otherwise) of, (a) any notes or debt securities
containing equity features (including, without limitation, any notes or debt
securities convertible into or exchangeable for capital stock or other equity
securities, issued in connection with the issuance of capital stock or other
equity securities or containing profit participation features) or (b) any
capital stock or other equity securities (or any securities convertible into or
exchangeable for any capital stock or other equity securities);

          (iv) make, or permit any of its subsidiaries to make, any loans or
advances to, guarantees for the benefit of, or investments in, any Person (other
than a subsidiary of the Company), except for (a) reasonable advances to
employees, directors and officers in the ordinary course of business, (b)
reasonable and customary advances to customers and vendors of the Company in the
ordinary course of business consistent with past practice and (c) investments
having a stated maturity no greater than one year from the date the Company
makes such investment in (1) obligations of the United States government or any
agency thereof or obligations guaranteed by the United States government, (2)
certificates of deposit of commercial banks having combined capital and surplus
of at least $50 million, (3) commercial paper with a rating of at least
"Prime-1" by Moody's Investors Service, Inc., or (4) money market mutual funds
and other investments constituting cash or cash equivalents under generally
accepted accounting principles, in each case whose investment guidelines
restrict such funds' investments primarily to those satisfying the provisions of
clauses (1) through (3) above;

          (v) merge or consolidate with any Person or permit any subsidiary of
the Company to merge or consolidate with any Person (other than with a
wholly-owned subsidiary of the Company);

          (vi) sell, lease or otherwise dispose of, or permit any subsidiary of
the Company to sell, lease or otherwise dispose of, more than 10% of the
consolidated assets of the Company and its subsidiaries (computed on the basis
of book value, determined in accordance with generally accepted accounting
principles consistently applied, or fair market value, determined by the
Company's board of directors in its reasonable good faith judgment) in any
transaction or series of related transactions (other than sales in the ordinary
course of business);

          (vii) liquidate, dissolve or effect a recapitalization or
reorganization in any form of transaction (including, without limitation, any
reorganization into a limited liability company, a partnership or any other
non-corporate entity which is treated as a partnership for federal income tax
purposes) or permit any subsidiary to take any such action;

          (viii) acquire, or permit any subsidiary of the Company to acquire,
any interest in any company or business (whether by a purchase of assets,
purchase of stock, merger or otherwise, but excluding extension of ordinary
trade credit), or enter into any joint venture (other than strategic alliances
entered into in the ordinary course of business consistent with past practice);

                                       26

<PAGE>

          (ix) become subject to, or permit any of its subsidiaries to become
subject to, (including, without limitation, by way of amendment to or
modification of) any agreement or instrument which by its terms would (under any
circumstances) restrict the Company's right to perform the provisions of this
Agreement, the Certificate of Incorporation or the Company's bylaws, or
otherwise take any action which would impair, or otherwise be inconsistent with,
the rights hereunder of the holders of Controlling Stockholder Shares
(including, without limitation, the rights of the Required Controlling Holder(s)
under Section 7A of this Agreement);

          (x) make, or permit any of its subsidiaries to make, any amendment to
such Person's Certificate of Incorporation or bylaws (except as required by law
in connection with the consummation of the Plan of Reorganization);

          (xi) enter into, amend, modify or supplement, or permit any subsidiary
of the Company to enter into, amend, modify or supplement, any agreement,
transaction, commitment or arrangement with any officers, directors, senior
executives or Affiliates of the Company or any of its subsidiaries or with any
individual related by blood, marriage or adoption to any such individual or with
any entity in which any such Person or individual owns a beneficial interest
(excluding for this purpose ownership of less than 2% of any publicly traded
securities), except as otherwise provided by this Agreement and except for
customary employment arrangements with, and customary benefit programs for,
employees of the Company and its subsidiaries on reasonable terms (other than
any such arrangements primarily benefiting senior executives) and except for
directors' fees paid to directors of the Company, in each case under
arrangements approved after the date hereof by the Board;

          (xii) create, incur, assume or suffer to exist, or permit any
subsidiary of the Company to create, incur, assume or suffer to exist, at any
time after the date hereof, indebtedness exceeding an aggregate principal amount
of $5,000,000 outstanding at any time on a consolidated basis (excluding (1) any
indebtedness incurred under the Company's $40 million "Exit Revolver," (2) the
Company's $120 million "Exit Term Loan," (3) the industrial revenue bonds of
approximately $3.3 million reflected on the balance sheet of the Company as of
the end of the month immediately preceding the Consummation Date (the "Latest
Balance Sheet"), and (4) the other debt not to exceed $5 million reflected on
the Latest Balance Sheet);

          (xiii) create, incur, assume or suffer to exist, or permit any
subsidiary of the Company to create, incur, assume or suffer to exist, any
material liens or encumbrances, except for (1) liens for taxes not yet due and
payable or which are being contested in good faith and by appropriate
proceedings, (2) carrier's, warehousemen's, mechanic's, materialmen's and
similar liens, (3) purchase money liens and liens securing rental payments under
capital lease arrangements otherwise permitted hereunder, (4) liens and
encumbrances securing indebtedness incurred under the Company's $40 million
"Exit Revolver," $120 million "Exit Term Loan" or any industrial revenue bonds
reflected on the Latest Balance Sheet, (5) liens and encumbrances disclosed in
the disclosure schedule attached to the Company's "Exit Revolver" or "Exit Term
Loan," (6) pledges and deposits made in the ordinary course of business in
compliance with workers' compensation, unemployment insurance and other social
security laws or regulations, (7) cash deposits to secure the performance of
bids, trade contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in the
ordinary course of business consistent with past practice, (8) judgment liens in
respect of

                                       27

<PAGE>

judgments, (9) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary course
of business that do not secure any monetary obligations, (10) bankers' liens and
similar liens, including rights of offset or set-off in respect of deposit
accounts and liens in favor of securities intermediaries in respect of
securities accounts securing fees and costs owing to such securities
intermediaries, (11) licenses, sublicenses, leases or subleases granted to
others that do not materially interfere with the ordinary course of business of
the Company and its subsidiaries, taken as a whole, and (12) any interest or
title of a lessor in any property (and the proceeds, accession or products
thereof) subject to an operating lease;

          (xiv) make, or permit any of its subsidiaries to make, any capital
expenditures (including, without limitation, payments with respect to
capitalized leases, as determined in accordance with generally accepted
accounting principles consistently applied) exceeding $6,500,000 (or such higher
number as may be approved by the Board in the Company's annual budget) in the
aggregate for the Company and its subsidiaries on a consolidated basis during
any twelve-month period; or

          (xv) increase the authorized size of its board of directors above
seven members;

provided that the rights of the Required Controlling Holder(s) under this
Section 15A shall terminate upon the earliest to occur of (a) an Approved Sale,
(b) the initial date on which the Controlling Stockholder Shares no longer
represent at least a majority of the voting power of the then outstanding shares
of voting capital stock of the Company held by all Stockholders, and (c) the
initial date on which the Controlling Stockholder Shares represent 20% or less
of the voting power of the then outstanding shares of voting capital stock of
the Company.

          15B. Financial Statements and Other Information. The Company shall
deliver to each holder of Controlling Stockholder Shares (so long as such Person
holds any Controlling Stockholder Shares) and to each Other New Stockholder who,
together with the Affiliates of such Other New Stockholder, holds at least 5% of
the then outstanding shares of Common Stock:

          (i) (A) within 30 days after the end of each monthly accounting period
in each fiscal year (except within 45 days after the end of each fiscal quarter
of the Company (other than the fourth quarter) and within 90 days after the end
of each fiscal year of the Company), the unaudited consolidated balance sheet
and statements of operations and cash flows of the Company and its subsidiaries
for such monthly period and the then elapsed portion of such fiscal year, and
all such statements shall be prepared in accordance with generally accepted
accounting principles, consistently applied, subject to the absence of footnote
disclosures and to normal year-end adjustments for recurring accruals and (B)
within 30 days after the end of each fiscal quarter of the Company, a draft of
such consolidated balance sheet and related statements of operations and cash
flows as of the end of and for such month and the then elapsed portion of such
fiscal year;

          (ii) within 45 days after the end of each fiscal quarter, the
unaudited consolidated balance sheet and related statements of operations and
cash flows of the Company

                                       28

<PAGE>

and its subsidiaries as of the end of and for such fiscal quarter and the then
elapsed portion of such fiscal year, setting forth, in each case, in comparative
form the figures for (or, in the case of the balance sheet, as of the end of)
the corresponding period or periods of the previous fiscal year, and all such
statements shall be prepared in accordance with generally accepted accounting
principles, consistently applied, subject to the absence of footnote disclosures
and to normal year-end adjustments for recurring accruals;

          (iii) within 90 days after the end of each fiscal year, the audited
consolidated balance sheet and related statements of operations and cash flows
of the Company and its subsidiaries as of the end of and for such fiscal year,
setting forth, in each case, in comparative form the figures for (or, in the
case of the balance sheet, as of the end of) the previous fiscal year, all
prepared in accordance with generally accepted accounting principles,
consistently applied, and accompanied by, with respect to the consolidated
portions of such statements, an opinion of an independent accounting firm of
recognized national standing;

          (iv) as promptly as practicable, notice of (i) any default under any
agreement with respect to material indebtedness for borrowed money and (ii) any
action, suit or proceeding by or before any governmental instrumentality or
agency which, if adversely determined, would have a material adverse effect on
the business or operations of the Company and its subsidiaries, taken as a
whole; and

          (v) as promptly as practicable, such other information and financial
data concerning the Company and its subsidiaries as any Person entitled to
receive information under this Section 15A may reasonably request (including
annual budgets and projections of the Company).

Each Stockholder agrees that it will keep confidential and will not disclose,
divulge or use for any purpose, other than to monitor and manage its investment
in the Company and for purposes incidental thereto, any Confidential
Information, unless such Confidential Information (a) is known or becomes known
generally to the public (other than as a result of a breach of this paragraph by
such Stockholder) or (b) is made known or disclosed to the Stockholder by a
third party who is not known by the Stockholder to owe a duty of trust or
confidence to the Company; provided, however, such Stockholder may disclose
Confidential Information (i) to its representatives, attorneys, accountants,
consultants, and other professionals on a confidential basis in connection with
monitoring and managing its investment in the Company, (ii) to any prospective
purchaser of any Stockholder Shares from such Stockholder as long as such
prospective purchaser agrees to be bound by the provisions of this paragraph and
names the Company as a third party beneficiary of such agreement, (iii) to any
Affiliate of such Stockholder on a confidential basis or (iv) as may otherwise
be required by law, legal process or regulatory requirements (including, without
limitation, tax regulatory requirements). For purposes of this paragraph, with
respect to any particular Stockholder, "Confidential Information" means any
information that such Stockholder obtains from the Company pursuant to financial
statements, reports and other materials provided by the Company to such
Stockholder pursuant to this Agreement or pursuant to visitation, attendance or
inspection rights hereunder, but in each case only to the extent that such
information has been designated by the Company in writing to such Stockholder as
confidential, proprietary or secret.

                                       29

<PAGE>

          15C. Expenses. The Company agrees to pay, and hold each Controlling
Stockholder and its Affiliates and their respective directors, officers and
employees harmless against liability for the payment of, the reasonable
expenses, legal fees and other out-of-pocket costs incurred after the date
hereof by or on behalf of such Controlling Stockholder or any of its Affiliates
in connection with (i) any Company-related financing, strategic initiative or
other growth strategy or (ii) the rendering of any other services to the Company
by such Controlling Stockholder or its Affiliates (including assistance with
evaluating business opportunities); it being understood and agreed that nothing
in this Section 15C is intended to require the Company to pay any management or
other fees to any Controlling Stockholder or any Affiliate thereof in connection
with any event or service described in clause (i) or (ii) above.

     SECTION 16. DEFINITIONS

          "Additional Controlling Director" has the meaning set forth in Section
7A.

          "Additional Controlling Number" of directors at any time means that
number equal to (a) one (1) plus (b) if and so long as the authorized number of
directors on the Board is nine or more, 50% of the amount, if any, by which the
authorized number of directors exceeds eight (8) (disregarding for such purposes
any fractional number resulting therefrom).

          "Additional Stockholder" has the meaning set forth in the Preamble.

          "Affiliate" of a Stockholder means any other Person controlling,
controlled by or under common control with the Stockholder and, in the case of
any Controlling Stockholder that is a partnership or a limited liability
company, any partner or member of such Stockholder (provided that the Company
shall not be deemed to be an Affiliate of any Stockholder, nor shall any other
Person be deemed to be an Affiliate of a Stockholder solely by reason of such
Stockholder's control of the Company).

          "Agreement" has the meaning set forth in the Preamble.

          "Allocable Share" has the meaning set forth in Section 2C.

          "Approved Sale" has the meaning set forth in Section 3A.

          "Audax" has the meaning set forth in the Preamble.

          "Board" has the meaning set forth in the Preamble.

          "Certificate of Incorporation" means the Company's certificate of
incorporation in effect at the time as of which any determination is being made.

          "Common Stock" means the Common Stock of the reorganized Company, $.01
par value per share.

          "Company" has the meaning set forth in the Preamble.

          "Controlling Director" has the meaning set forth in Section 7A.

                                       30

<PAGE>

          "Controlling Stockholder" has the meaning set forth in the Preamble.

          "Controlling Stockholder Registrable Securities" means (i) any shares
of Common Stock issued to a Controlling Stockholder pursuant to the Plan of
Reorganization, (ii) any shares of Common Stock otherwise acquired by a
Controlling Stockholder or any of its Affiliates after the date hereof, (iii)
any shares of Common Stock issued or issuable upon conversion of other
Stockholder Shares from time to time acquired by a Controlling Stockholder, and
(iv) any equity securities issued or issuable directly or indirectly with
respect to the securities referred to in any of clauses (i) through (iii) above
by way of a stock dividend or split or in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization. As to
any particular shares constituting Controlling Stockholder Registrable
Securities, such shares will cease to be Controlling Stockholder Registrable
Securities when they have been transferred pursuant to a Public Sale (provided
that, if shares sold in a Public Sale are thereafter acquired by a Stockholder,
such shares shall again be subject to the provisions of this Agreement). For
purposes of this Agreement, a Person will be deemed to be a holder of
Controlling Stockholder Registrable Securities whenever such Person has the
right to acquire directly or indirectly such Controlling Stockholder Registrable
Securities (upon conversion or exercise in connection with a transfer of
securities or otherwise, but disregarding any restrictions or limitations upon
the exercise of such right), whether or not such acquisition has actually been
effected.

          "Controlling Stockholder Shares" means, at any particular time,
without duplication (i) any Stockholder Shares issued to a Controlling
Stockholder pursuant to the Plan of Reorganization or acquired thereafter by a
Controlling Stockholder or any Affiliate of a Controlling Stockholder, in each
case whether or not such Stockholder Shares are held at such time by a
Controlling Stockholder or any Affiliate of a Controlling Stockholder, and (ii)
any securities issued or issuable directly or indirectly with respect to the
Stockholder Shares referred to in clause (i) above by way of a stock dividend or
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization. As to any particular shares constituting
Controlling Stockholder Shares, such shares shall cease to be Controlling
Stockholder Shares when they have been sold in a Public Sale or transferred in
an In-Kind Distribution.

          "Demand Registration" has the meaning set forth in Section 7A.

          "Electing Purchaser" has the meaning set forth in Section 2B.

          "Election Notice" has the meaning set forth in Section 4A.

          "Eligible Purchaser" has the meaning set forth in Section 2B.

          "Eligible Stockholder" has the meaning set forth in Section 2C.

          "Executive Director" has the meaning set forth in Section 7A.

          "Exempt Transfer" has the meaning set forth in Section 2D.

          "Existing Stockholder" has the meaning set forth in the Preamble.

                                       31

<PAGE>

          "Family Group" with respect to any Stockholder, means such
Stockholder's spouse, siblings and descendants (whether or not adopted) and any
trust, family limited partnership or limited liability company that is and
remains solely for the benefit of such Stockholder and/or such Stockholder's
spouse, siblings and/or descendants.

          "Fully Diluted Basis" means, in respect of any class of Company
capital stock at any time, (i) all shares of such class of stock outstanding at
such time plus (ii) all shares of such class of stock which are issuable
directly or indirectly upon conversion of all then outstanding convertible
securities or upon the exercise or exchange of all then outstanding options,
warrants or other rights, whether or not such convertible securities, options,
warrants or other rights are then convertible, exercisable or exchangeable.

          "Independent Third Party" means any Person who, immediately prior to
the contemplated transaction, does not own in excess of 5% of the Company's
Common Stock on a Fully Diluted Basis (a "5% Owner"), who is not controlling,
controlled by or under common control with any such 5% Owner and who is not the
spouse or descendent (by birth or adoption) of any such 5% Owner or a trust for
the benefit of such 5% Owner and/or such other Persons.

          "In-Kind Distribution" has the meaning set forth in Section 2D.

          "Initial Board Designee" has the meaning set forth in Section 7A.

          "Initiating Holders" has the meaning set forth in Section 8B.

          "Interim Executive Director" has the meaning set forth in Section 7A.

          "Issuance Notice" has the meaning set forth in Section 4A.

          "Joinder Agreement" has the meaning set forth in the Preamble.

          "Long-Form Registration" has the meaning set forth in Section 8A.

          "Majority New Non-Controlling Holder(s)" means, at any time, the
holder of record at such time of a majority of the outstanding shares of Common
Stock that are New Non-Controlling Stockholder Shares, determined on a Fully
Diluted Basis; provided that, if at such time no single Person is the holder of
record of a majority of the outstanding shares of Common Stock that are New
Non-Controlling Stockholder Shares on a Fully Diluted Basis, then "Majority New
Non-Controlling Holder(s)" means, at such time, any two or more Persons who are
collectively the holders of record at such time of a majority of the outstanding
shares of Common Stock that are New Non-Controlling Stockholder Shares,
determined on a Fully Diluted Basis.

          "New Non-Controlling Stockholder Shares" means, at any particular
time, without duplication (i) any Stockholder Shares issued to an Other New
Stockholder pursuant to the Plan of Reorganization or acquired thereafter by an
Other New Stockholder or any Affiliate of an Other New Stockholder, in each case
whether or not such Stockholder Shares are held at such time by an Other New
Stockholder, and (ii) any securities issued or issuable directly or indirectly
with respect to the Stockholder Shares referred to in clause (i) above by way of
a stock

                                       32

<PAGE>

dividend or split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any
particular shares constituting New Non-Controlling Stockholder Shares, such
shares shall cease to be New Non-Controlling Stockholder Shares when they have
been Transferred to a Controlling Stockholder or any of its Affiliates or sold
in a Public Sale or transferred in an In-Kind Distribution.

          "New Securities" has the meaning set forth in Section 4C.

          "New Non-Controlling Stockholders Director" has the meaning set forth
in Section 7A.

          "Oaktree" has the meaning set forth in the Preamble.

          "Other New Stockholder(s)" has the meaning set forth in the Preamble.

          "Offer Notice" has the meaning set forth in Section 2B.

          "Offering Period" has the meaning set forth in Section 4A.

          "Optimal Number" has the meaning set forth in Section 8D.

          "Other Registrable Securities" means (i) any shares of Common Stock
issued to an Other Stockholder pursuant to the Plan of Reorganization, (ii) any
shares of Common Stock (other than shares of Common Stock that are Controlling
Stockholder Shares) otherwise acquired by an Other Stockholder after the date
hereof, (iii) any shares of Common Stock issued or issuable upon conversion of
other Stockholder Shares (other than Controlling Stockholder Shares) from time
to time acquired by an Other Stockholder after the date hereof, and (iv) any
equity securities issued or issuable directly or indirectly with respect to the
securities referred to in any of clauses (i) through (iii) above by way of a
stock dividend or split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any
particular shares constituting Other Registrable Securities, such shares will
cease to be Other Registrable Securities when they have been Transferred to a
Controlling Stockholder or pursuant to a Public Sale (provided that, if shares
sold in a Public Sale are thereafter acquired by a Stockholder, such shares
shall again be subject to the provisions of this Agreement). For purposes of
this Agreement, a Person will be deemed to be a holder of Other Registrable
Securities whenever such Person has the right to acquire directly or indirectly
such Other Registrable Securities (upon conversion or exercise in connection
with a transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition
has actually been effected.

          "Other Stockholders" has the meaning set forth in the Preamble.

          "Participating Stockholder" has the meaning set forth in Section 2C.

          "Permitted Transferee" has the meaning set forth in Section 2D.

          "Person" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated

                                       33

<PAGE>

organization and a governmental entity or any department, agency or political
subdivision thereof.

          "Piggyback Registration" has the meaning set forth in Section 9A.

          "Plan of Reorganization" has the meaning set forth in the Preamble.

          "Primary Optimal Number" has the meaning set forth in Section 9C.

          "Public Offering" means a public offering and sale of Stockholder
Shares or other capital stock or equity securities of the Company pursuant to an
effective registration statement under the Securities Act.

          "Public Sale" means any sale of Stockholder Shares (i) to the public
pursuant to an offering registered under the Securities Act, (ii) to the public
through a broker, dealer or market maker pursuant to the provisions of Rule 144
adopted under the Securities Act or (ii) to the public through a broker, dealer
or market maker for which registration under the Securities Act is not required
under Section 1145 of Title 11 of the United States Code.

          "Qualified Public Offering" means a Public Offering which results in
aggregate proceeds to the Company and/or the Stockholders of at least
$50,000,000.

          "Registrable Securities" means, collectively, the Controlling
Stockholder Registrable Securities and the Other Registrable Securities.

          "Registration Expenses" has the meaning set forth in Section 12A.

          "Required Controlling Holder(s)" means, at any time, the holder of
record at such time of at least 75% of the outstanding shares of Common Stock
that are Controlling Stockholder Shares; provided that, if at such time no
single Person is the holder of record of at least 75% of the outstanding shares
of Common Stock that are Controlling Stockholder Shares, then "Required
Controlling Holder(s)" means, at such time, any two or more Persons who are
collectively the holders of record at such time of at least 75% of the
outstanding shares of Common Stock that are Controlling Stockholder Shares.

          "ROFO Election Period" has the meaning set forth in Section 2B.

          "Sale of the Company" means the sale of the Company to an Independent
Third Party or group of Independent Third Parties pursuant to which such party
or parties acquire (i) capital stock of the Company possessing the voting power
to elect a majority of the Board (whether by merger, consolidation or sale or
transfer of the Company's capital stock) or (ii) all or substantially all of the
Company's assets determined on a consolidated basis.

          "Securities Act" means the Securities Act of 1933, as amended, or any
similar federal law then in force.

          "Securities and Exchange Commission" includes any governmental body or
agency succeeding to the functions thereof.

                                       34

<PAGE>

          "Securities Exchange Act" means the Securities Exchange Act of 1934,
as amended, or any similar federal law then in force.

          "Short-Form Registration" has the meaning set forth in Section 8A.

          "Stockholder Shares" means (i) any Common Stock or other capital stock
or equity securities issued to any Stockholder pursuant to the Plan of
Reorganization or acquired by any Stockholder at any time thereafter, and (ii)
any capital stock or other equity securities issued or issuable directly or
indirectly with respect to the securities referred to in clause (i) above by way
of stock dividend or split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any
particular shares constituting Stockholder Shares, such shares shall cease to be
Stockholder Shares when they have been sold in a Public Sale or transferred in
an In-Kind Distribution (provided that, if shares sold in a Public Sale or
transferred in an In-Kind Distribution are thereafter acquired by a Stockholder,
such shares shall again be Stockholder Shares hereunder).

          "Stockholder" has the meaning set forth in the Preamble.

          "Sub Board" has the meaning set forth in Section 7A.

          "Tag-along Sale Notice" has the meaning set forth in Section 2C.

          "Tag-Along Shares" has the meaning set forth in Section 2C.

          "Transfer" has the meaning set forth in Section 2A.

          "Transfer Shares" has the meaning set forth in Section 2B.

          "Transferring Stockholder" has the meaning set forth in Section 2B.

          Unless otherwise stated, other capitalized terms contained herein have
the meanings set forth in the Plan of Reorganization.

     SECTION 17. MISCELLANEOUS

          17A. Amendment and Waiver. Except as otherwise provided herein, no
modification, amendment or waiver of any provision of this Agreement shall be
effective against the Company or the Stockholders unless such modification,
amendment or waiver is approved in writing by the Company and the Required
Controlling Holder(s) (and, in the case of an amendment to the definition of
Other Registrable Securities or the definition of New Securities, the Majority
New Non-Controlling Holder(s)); provided that in the event that any such
amendment or waiver by its terms treats disproportionately one or more groups of
Stockholders hereunder (i.e., the Controlling Stockholders, the holders of
Controlling Stockholder Shares, the Other New Stockholders and/or the Existing
Stockholders) in an adverse manner relative to any other such group of
Stockholders hereunder, then such amendment or waiver will require the prior
written approval of the holders of a majority of the Stockholder Shares then
held by such group or groups of Stockholders so disproportionately and adversely
treated.

                                       35

<PAGE>

          17B. Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or the effectiveness or validity of any provision in any
other jurisdiction, and this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

          17C. Entire Agreement. Except as otherwise expressly set forth herein,
this Agreement, the Plan of Reorganization and the documents referenced therein
embody the complete agreement and understanding among the parties hereto with
respect to the subject matter hereof and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

          17D. No Inconsistent Agreements. The Company will not hereafter enter
into any agreement with respect to its securities which is inconsistent with or
violates the rights granted to the holders of Registrable Securities in this
Agreement.

          17E. Adjustments Affecting Registrable Securities. The Company will
not take any action, or permit any change to occur, with respect to its
securities which would materially and adversely affect the ability of the
holders of Registrable Securities to include such Registrable Securities in a
registration undertaken pursuant to this Agreement or which would adversely
affect the marketability of such Registrable Securities in any such registration
(including, without limitation, effecting a stock split or a combination of
shares).

          17F. Successors and Assigns. Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the
Company and its successors and assigns and the Stockholders and any subsequent
holders of Stockholder Shares and the respective successors and assigns of each
of them, so long as they hold Stockholder Shares.

          17G. Counterparts. This Agreement may be executed in separate
counterparts each of which shall be an original and all of which taken together
shall constitute one and the same agreement.

          17H. Remedies. The parties hereto agree and acknowledge that money
damages may not be an adequate remedy for any breach of the provisions of this
Agreement and that the Company and any Stockholder shall have the right to
injunctive relief, in addition to all of its rights and remedies at law or in
equity, to enforce the provisions of this Agreement. Nothing contained in this
Agreement shall be construed to confer upon any Person who is not a signatory
hereto any rights or benefits, as a third party beneficiary or otherwise.

          17I. Notices. Any notice provided for in this Agreement shall be in
writing and shall be either personally delivered, or received by certified mail,
return receipt requested, or sent by reputable overnight courier service
(charges prepaid) to the Company at the address set forth below and to any other
recipient at the address indicated in schedules hereto and to any

                                       36

<PAGE>

subsequent holder of Stockholder Shares at such address as indicated by the
Company's records or at such address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party.
Notices will be deemed to have been given hereunder (i) when delivered
personally to the recipient, (ii) one (1) business day after being sent to the
recipient by reputable overnight courier service (charges prepaid), (iii) upon
machine-generated acknowledgment of receipt after transmittal by facsimile if so
acknowledged to have been received before 5:00 p.m. on a business day at the
location of receipt and otherwise on the next following business day, provided
that such notice, demand or other communication is also deposited within 24
hours thereafter with a reputable overnight courier service (charges prepaid)
for delivery to the same Person, or (iv) five (5) days after being mailed to the
recipient by certified or registered mail, return receipt requested and postage
prepaid. The Company's address is:

          Chart Industries, Inc.
          5885 Landerbrook Drive
          Cleveland, OH 44124
          Fax: (440) 753-1491
          Attn: Chief Executive Officer

          with copies to (which shall not constitute notice to the Company):

          Oaktree Capital Management, LLC
          333 South Grand Avenue, 28th Floor
          Los Angeles, CA 90071
          Fax: (213) 830-6394
          Attn: Stephen A. Kaplan
                Michael P. Harmon

          Audax Management Company, LLC
          101 Huntington Avenue
          Boston, MA 02199
          Fax: (617) 859-1600
          Attn: Geoffrey S. Rehnert
                Timothy White

          Kirkland & Ellis
          200 East Randolph Drive
          Chicago, IL 60601
          Fax: (312) 861-2200
          Attn: John A. Weissenbach
                Christopher J. Greeno

                                       37

<PAGE>

          17J. Governing Law. All issues concerning this Agreement (including
all issues concerning the relative rights and obligations of the Company and the
Stockholders) shall be governed by and construed in accordance with the laws of
the State of Delaware without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the law of any jurisdiction
other than the State of Delaware.

          17K. Mutual Waiver of Jury Trial. Because disputes arising in
connection with complex transactions are most quickly and economically resolved
by an experienced and expert person and the parties wish applicable state and
federal laws to apply (rather than arbitration rules), the parties desire that
their disputes be resolved by a judge applying such applicable laws. Therefore,
to achieve the best combination of the benefits of the judicial system and of
arbitration, each party to this agreement hereby waives all rights to trial by
jury in any action, suit, or proceeding brought to resolve any dispute between
or among any of the parties hereto, whether arising in contract, tort, or
otherwise, arising out of, connected with, related or incidental to this
agreement and/or the transactions contemplated hereby.

          17L. Termination of Certain Provisions. The rights and obligations
under Sections 6, 8, 9, 10, 11, 12, 14 and 15 of this Agreement shall expire no
later than the tenth anniversary of the consummation of a Qualified Public
Offering.

          17M. Descriptive Headings. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

                                    * * * * *

                                       38

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Investor
Rights Agreement on the day and year first above written.

THE COMPANY:                  CHART INDUSTRIES, INC.

                              By:  /s/ Michael F. Biehl
                                 ---------------------------------------
                              Its: Chief Financial Officer and Treasurer
                                  --------------------------------------

OAKTREE:                      OCM PRINCIPAL OPPORTUNITIES FUND II, L.P.

                              By: Oaktree Capital Management, LLC
                              Its: General Partner

                              By:  /s/ Caleb Kramer
                                 ---------------------------------------
                              Its: Managing Director
                                  --------------------------------------

                              By:  /s/ Jordon L. Kruse
                                 -------------------------------
                              Its: Vice President
                                  ------------------------------

                              Initial Stockholder Shares
                                                        -----------------------

AUDAX:                        AUDAX CHART LLC

                              By:  /s/ Timothy White
                                 ---------------------------------------
                              Its: Authorized Signatory
                                  --------------------------------------

                              Initial Stockholder Shares
                                                        -----------------------

                              CARL MARKS STRATEGIC INVESTMENTS III, L.P.
                              By Carl Marks Management Company, L.P.
                                 as General Partner

                              By:  /s/ James F. Wilson
                                 ---------------------------------------
                              Its: General Partner
                                  --------------------------------------

                              VAN KAMPEN SENIOR LOAN FUND
                              By: Van Kampen Investment Advisory Corp.

                              By:  /s/ Christina Jamieson
                                 ---------------------------------------
                              Its: Vice President
                                  --------------------------------------

                              KZHCYPRESSTREE-1 LLC

                              By:  /s/ Dorian Herrera
                                 ---------------------------------------
                              Its: Authorized Agent
                                  --------------------------------------

                              KZH STERLING LLC

                              By:  /s/ Dorian Herrera
                                 ---------------------------------------
                              Its: Authorized Agent
                                  --------------------------------------

                              MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

                              By:  /s/ Eric S. Dobbin
                                 ---------------------------------------
                              Its: Managing Director
                                  --------------------------------------

                              SENIOR DEBT PORTFOLIO

                              By:  Boston Management and Research
                                   As Investment Advisor

                              By:  /s/ Payson F. Swaffield
                                 ---------------------------------------
                              Its: Vice President
                                  --------------------------------------

<PAGE>

                      SCHEDULE OF controlling stockholders

--------------------------------------------------------------------------------

                        Name and Address              Initial Stockholder Shares
--------------------------------------------------------------------------------

OCM Principal Opportunities Fund II, L.P.
c/o Oaktree Capital Management, LLC
333 South Grand Avenue, 28th Floor
Los Angeles, CA 90071
Fax: (213) 830-6394
Attn: Stephen A. Kaplan
      Michael P. Harmon

with copies to (which shall not constitute notice):
Kirkland & Ellis
200 East Randolph Drive
Chicago, IL 60601
Fax: (312) 861-2200
Attn: John A. Weissenbach
      Christopher J. Greeno
--------------------------------------------------------------------------------

Audax Chart LLC
c/o Audax Management Company, LLC
101 Huntington Avenue
Boston, MA 02199
Fax: (617) 859-1600
Attn: Geoffrey S. Rehnert
      Timothy White

with copies to (which shall not constitute notice):
Kirkland & Ellis
200 East Randolph Drive
Chicago, IL 60601
Fax: (312) 861-2200
Attn: Jeffrey Seifman
--------------------------------------------------------------------------------

<PAGE>

                       SCHEDULE OF OTHER NEW STOCKHOLDERS

--------------------------------------------------------------------------------
                  Name and Address                    Initial Stockholder Shares
--------------------------------------------------------------------------------
Senior Debt Portfolio
--------------------------------------------------------------------------------
Van Kampen Senior Loan Fund
--------------------------------------------------------------------------------
Carl Marks Strategic Investments III, L.P.
--------------------------------------------------------------------------------
Merrill Lynch, Pierce, Fenner & Smith Incorporated
--------------------------------------------------------------------------------
KZH Sterling LLC
--------------------------------------------------------------------------------
KZH CypressTree-1 LLC
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

<PAGE>

                        SCHEDULE OF EXISTING STOCKHOLDERS

--------------------------------------------------------------------------------
                  Name and Address                    Initial Stockholder Shares
--------------------------------------------------------------------------------
None
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

<PAGE>

                       SCHEDULE OF ADDITIONAL STOCKHOLDERS

--------------------------------------------------------------------------------
                  Name and Address                    Initial Stockholder Shares
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

<PAGE>

                                                                       EXHIBIT A

                  FORM OF TRANSFER NOTICE AND JOINDER AGREEMENT

          This notice is being delivered to Chart Industries, Inc., a Delaware
corporation (the "Company"), pursuant to Section 6 of that certain Investor
Rights Agreement, dated as of September 15, 2003 (as amended from time to time,
the "Investor Rights Agreement"), among the Company, OCM Principal Opportunities
Fund II, L.P., a Delaware limited partnership, Audax Chart LLC, a Delaware
limited liability company, and certain other stockholders of the Company who are
from time to time party thereto. Capitalized terms used herein shall have the
meanings assigned to such terms in the Investor Rights Agreement.

          The undersigned hereby notifies the Company that [name of Stockholder]
has transferred to the undersigned       shares of Common Stock that are
                                   -----
Stockholder Shares. In connection with such transfer, the undersigned hereby
becomes a party to the Investor Rights Agreement and agrees to be bound by the
provisions of the Investor Rights Agreement affecting such Stockholder Shares.

          Any notice provided for in the Investor Rights Agreement should be
delivered to the undersigned at the address set forth below:

                     -----------------------------------

                     -----------------------------------

                     -----------------------------------
                     Telephone:
                                ------------------------
                     Facsimile:
                                ------------------------
                     Attention:
                                ------------------------

Dated:
       -----------------

                                                      --------------------------
                                                      [Transferee]Form of Securities Purchase Agreement dated as of September 17, 2003

 Exhibit 10.1 
  
 The following Form of Securities Purchase Agreement was entered into with each of the following investors: 
  

	 Name

	  	 Number of
 Shares
 Purchased

	  	 Total
 Purchase Price

	 Truk Opportunity Fund, LLC
	  	60,606	  	$	199,999.80
	 Langley Partners, L.P.
	  	750,000	  	 	2,475,000.00
	 Elliott International, L.P.
	  	150,000	  	 	495,000.00
	 Elliott Associates, L.P.
	  	100,000	  	 	330,000.00
	 AIG DKR Soundshore Strategic Holding Fund Ltd.
	  	151,515	  	 	499,999.50
	 Cohanzick Partners, L.P.
	  	104,545	  	 	344,998.50
	 Ariel Fund Limited
	  	203,000	  	 	669,900.00
	 Gabriel Capital, L.P.
	  	147,000	  	 	485,100.00
	 JMB Capital Partners, L.P.
	  	454,545	  	 	1,499,998.50
	 	  	
	  	
	

	 TOTAL:
	  	2,121,211	  	$	6,999,996.30

  
 FORM OF SECURITIES
PURCHASE AGREEMENT 
  
 Please submit a separate Securities
Purchase Agreement 
 for each individual fund/entity that will hold the Securities 
  
 Nanogen, Inc. 
 10398 Pacific Center Ct. 
 San Diego, CA 92121 
  
 Ladies & Gentlemen: 
  
 The undersigned,                      (the
“Investor”), hereby confirms its agreement with you as follows: 
  
 1.
This Securities Purchase Agreement (the “Agreement”) is made as of September 17, 2003 between Nanogen, Inc., a Delaware corporation (the “Company”), and the Investor. 
  
 2. The Company has authorized the sale and issuance of up to (i) 2,121,211 shares (the “Shares”) of common stock of the Company,
$.001 par value per share (the “Common Stock”) and (ii) five- year warrants (each, a “Five Year Warrant,” and collectively, the “Five Year Warrants”), in substantially the form attached hereto as Exhibit A, to
purchase an aggregate of approximately 424,243 shares of Common Stock, six-month warrants (each, a “Six Month Warrant,” and collectively, the “Six Month Warrants”) in substantially the form attached hereto as Exhibit B, to
purchase an aggregate of approximately 1,103,032 shares of Common Stock, and (iii) one-year warrants (each, a “One Year Warrant,” and collectively, the “One Year Warrants”) in substantially the form attached hereto as Exhibit
C, to purchase an aggregate of approximately 530,305 shares of Common Stock, to certain investors in a private placement (the “Offering”). 
  
 3. The Company and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the Investor
             Shares, for a purchase price of $3.30 per share, or an aggregate purchase price of $            ,
together with a Five Year Warrant to purchase one share of Common Stock for every five Shares purchased by the Investor, having an exercise price of $4.75 per underlying share, a Six Month Warrant to purchase one share of Common Stock for every
1.9230769 Shares purchased by the Investor, having an exercise price of $4.14 per share, and a One Year Warrant to 

 
purchase one share of Common Stock for every four shares of Common Stock purchased by the Investor, having an exercise price of $4.75 per share, pursuant to
the Terms and Conditions for Purchase of Securities attached hereto as Annex I and incorporated herein by reference as if fully set forth herein (the “Terms and Conditions”). Unless otherwise requested by the Investor, certificates
representing the Securities purchased by the Investor will be registered in the Investor’s name and address as set forth below. 
  
 4. The Investor represents that, except as set forth below, (a) it has had no position, office or other material relationship within the past three years with the Company
or persons known to it to be affiliates of the Company, (b) neither it, any of its affiliates, nor any group of which it is a member or to which it is related, beneficially owns (including the right to acquire or vote) any securities of the Company,
(c) it is not a registered broker-dealer, and (d) it has no direct or indirect affiliation or association with any National Association of Securities Dealers, Inc. (“NASD”) member as of the date hereof. Exceptions: 
  
 ___________________________________________________________________________________________________________ 
 ___________________________________________________________________________________________________________. 
  
 (If no exceptions, write “none.” If left blank, response will be deemed to be “none.”) 
  
 5. The Investor represents that the following person will have, or the following persons will
share, voting power and investment control over the Shares and the shares of Common Stock issuable upon the exercise of the Warrants as of the date on which the Company files the Registration Statement (as defined in Annex I) with the
Securities and Exchange Commission: 
  
 ___________________________________________________________________________________________________________ 
 ___________________________________________________________________________________________________________ 
  
 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space provided below for that purpose. By executing this
Agreement, you acknowledge that the Company may use the information in paragraphs 4 and 5 above and the name and address information below in preparation of the Registration Statement (as defined in Annex I). 
  

	 AGREED AND ACCEPTED:
	 	 	 	 
	 NANOGEN, INC.
	 	 	 	INVESTOR
				
	 By:
	 	  

	 	 	 	 By:

	 	 	 Howard C. Birndorf
 Chief Executive Officer
	 	 	 	 Print Name:

	 	 	 	 	 	 Title:

	 	 	 	 	 	 	 Address:

	 	 	 	 	 	 	 Tax ID No.:

	 	 	 	 	 	 	 Contact name:

	 	 	 	 	 	 	 Telephone:

	 	 	 	 	 	 	 Name in which securities should be registered (if different):
  

 THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY STATE SECURITIES LAWS AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE SHARES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “SEC”) OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON OR ENDORSED THE MERITS OF THIS
OFFERING OR THE ACCURACY OR ADEQUACY OF THIS CONFIDENTIAL SUMMARY OF TERMS AND CONDITIONS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE SECURITIES ARE BEING OFFERED PURSUANT TO EXEMPTIONS FROM REGISTRATION REQUIREMENTS PROVIDED BY
SECTION 4(2) OF THE SECURITIES ACT, REGULATION D AND RULE 506 THEREUNDER, CERTAIN STATE SECURITIES LAWS AND CERTAIN RULES AND REGULATIONS PROMULGATED PURSUANT THERETO. THE SECURITIES MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. THIS
DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY THE SECURITIES IN ANY JURISDICTION WHERE, OR TO ANY PERSON TO WHOM, IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION. 
  
 ANNEX I 
  
 TERMS AND CONDITIONS FOR PURCHASE OF SECURITIES 
  
 1. Authorization and Sale of the Securities. Subject to these Terms and Conditions, the Company has authorized the
sale and issuance of (i) up to 2,121,211 Shares and (ii) Five Year Warrants to purchase up to 424,243 shares of Common Stock, Six Month Warrants to purchase up to 1,103,032 shares of Common Stock and One Year Warrants to purchase up to 530,305
shares of Common Stock (the Five Year Warrants, Six Month Warrants and One Year Warrants are collectively referred to herein as “Warrants”), and the reservation of the shares of Common Stock for which the Warrants are exercisable (the
“Underlying Shares”). The Shares, Warrants and Underlying Shares are collectively referred to herein as the “Securities.” 
  
 2. Agreement to Sell and Purchase the Securities; Subscription Date. 
  
 2.1 At the Closing (as defined in Section 3), the Company will sell to the Investor, and the Investor will purchase from the
Company, upon the terms and conditions hereinafter set forth, the number of Shares and Warrants to purchase the number of shares of Common Stock set forth in Section 3 of the Securities Purchase Agreement to which these Terms and Conditions are
attached as Annex I at the purchase price set forth thereon. 
  
 2.2 The Company may enter into the same form of Securities Purchase Agreement, including these Terms and Conditions, with certain other investors (the “Other Investors”) and expects to complete sales of Securities to them. (The
Investor and the Other Investors are hereinafter sometimes collectively referred to as the “Investors,” and the Securities Purchase Agreement to which these Terms and Conditions are attached and the Securities Purchase Agreements
(including attached Terms and Conditions) executed by the Other Investors are hereinafter sometimes collectively referred to as the “Agreements.”) The Company may accept executed Agreements from Investors for the purchase of Shares and
Warrants commencing upon the date on which the Company provides the Investors with the proposed purchase price per Share and exercise price per Underlying Share and concluding upon the date (the “Subscription Date”) on which the Company
has (i) executed Agreements with Investors for the purchase of at least 2,000,000 Shares, and (ii) notified Seven Hills Partners LLC, in its capacity as placement agent for this transaction 

 
(the “Placement Agent”), in writing that it is no longer accepting additional Agreements from Investors for the purchase of Securities. The Company
may not enter into any Agreements after the Subscription Date. 
  
 3. Delivery of the Shares at Closing. The completion of the purchase and sale of the Securities (the “Closing”) shall occur (the “Closing Date”) on or before September 18, 2003, at the offices of the
Company’s counsel. At the Closing, the Company shall deliver to the Investor, versus payment therefor, one or more stock certificates representing the number of Shares and a Five Year Warrant, Six Month Warrant and One Year Warrant to purchase
the number of shares of Common Stock set forth in Section 3 of the Securities Purchase Agreement, each such certificate to be registered in the name of the Investor or, if so indicated on the signature page of the Securities Purchase Agreement, in
the name of a nominee designated by the Investor; provided that delivery of such certificates within two business days after the Closing shall not be deemed to be a breach by the Company of this Securities Purchase Agreement. 
  
 The Company’s obligation to issue the Shares and Warrants to the
Investor shall be subject to the following conditions, any one or more of which may be waived by the Company: (a) receipt by the Company of a certified or official bank check or wire transfer of funds in the full amount of the purchase price for the
Securities being purchased hereunder as set forth in Section 3 of the Securities Purchase Agreement; (b) completion of the purchases and sales under the Agreements with the Other Investors; and (c) the accuracy of the representations and warranties
made by the Investors and the fulfillment of those undertakings of the Investors to be fulfilled prior to the Closing. 
  
 The Investor’s obligation to purchase the Shares and Warrants shall be subject to the following conditions, any one or more of which may be waived by
the Investor: (a) the representations and warranties of the Company set forth herein shall be true and correct as of the Closing Date in all material respects and (b) the Investor shall have received compliance and Secretary’s certificates and
a standard opinion of Company counsel as to the matters set forth in Section 4.2 hereof and, subject to the accuracy of the information and the representations and warranties required to be provided by each Investor, as to exemption from the
registration requirements of the Securities Act, of the sale of the Securities. 
  
 4. Representations, Warranties and Covenants of the Company. Except as otherwise described in the documents filed by the Company under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), since the end of its most recently completed fiscal year through the date hereof, including, without limitation, its most recent reports on Form 10-K, Form 10-Q and Form 8-K (together with all exhibits thereto) (collectively, the
“Exchange Act Documents”), which qualifies the following representations and warranties in their entirety, the Company hereby represents and warrants to, and covenants with, the Investor, as follows: 
  
 4.1 Organization. The Company is duly organized and validly existing
in good standing under the laws of the jurisdiction of its organization. Each of the Company and its Subsidiaries (as defined in Rule 405 under the Securities Act) has full power and authority to own, operate and occupy its properties and to conduct
its business as presently conducted and as described in the Exchange Act Documents and is registered or qualified to do business and in good standing in each jurisdiction in which the nature of the business conducted by it or the location of the
properties owned or leased by it requires such qualification and where the failure to be so qualified would have a material adverse effect upon the condition (financial or otherwise), earnings, business or business prospects, properties or
operations of the Company and its Subsidiaries, considered as one enterprise (a “Material Adverse Effect”), and no proceeding has been instituted in any such jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit or
curtail, such power and authority or qualification. 
  
 4.2 Due
Authorization and Valid Issuance. The Company has all requisite power and authority to execute, deliver and perform its obligations under the Agreements, and the Agreements have been duly authorized and validly executed and delivered by the
Company and constitute legal, valid and binding agreements of the Company enforceable against the Company in accordance with their terms, except as rights to indemnity and contribution may be limited by court decision or applicable law, including,
without limitation, state or federal securities laws or the public policy underlying such laws, 

 
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and
contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) or the discretion of the court
before which any proceeding is brought. The Securities being purchased by the Investor hereunder will, upon issuance and payment therefor pursuant to the terms hereof, be duly authorized and validly issued, and the Shares will, upon issuance
pursuant to the terms hereof, be fully paid and nonassessable. The Underlying Shares have been duly and validly authorized and reserved for issuance, and upon exercise of the Warrants pursuant to their terms, including payment of the exercise price
therefor, will be validly issued, fully paid and nonassessable. 
  
 4.3 Non-Contravention. The execution and delivery of the Agreements, the issuance and sale of the Securities under the Agreements, the issuance of the Underlying Shares, the fulfillment of the terms of the Agreements and the
consummation of the transactions contemplated thereby will not (A) conflict with or constitute a violation of, or default (with the passage of time or otherwise) under, (i) any material bond, debenture, note or other evidence of indebtedness, lease,
contract, indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which the Company or any Subsidiary is a party or by which it or any of its Subsidiaries or their respective properties are bound, (ii)
the charter, by-laws or other organizational documents of the Company or any Subsidiary, or (iii) any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company or
any Subsidiary or their respective properties, except in the case of clauses (i) and (iii) for any such conflicts, violations or defaults which are not reasonably likely to have a Material Adverse Effect or (B) result in the creation or imposition
of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the material properties or assets of the Company or any Subsidiary or an acceleration of indebtedness pursuant to any obligation, agreement or condition
contained in any material bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement or instrument to which the Company or any Subsidiary is a party or by which any of them
is bound or to which any of the material property or assets of the Company or any Subsidiary is subject. Assuming (i) the correctness of the representations and warranties of each of the Investors set forth in Section 5 hereof, and (ii) that the
Placement Agent has not in the past nor will hereafter take any action which would bring the offer, issuance or sale of the Securities as contemplated by this Agreement, within the provisions of Section 5 of the Securities Act, unless such offer,
issuance or sale was or shall be within the exemptions of Section 4 of the Securities Act, no consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative agency, or other
governmental body in the United States or any other person is required for the execution and delivery of the Agreements and the valid issuance and sale of the Securities to be sold and issued pursuant to the Agreements, including the issuance of the
Underlying Shares, other than such as have been made or obtained, and except for any post-closing securities filings or notifications required to be made under federal or state securities laws and applicable NASD rules. 
  
 4.4 Capitalization. The capitalization of the Company is as set forth
in the most recent applicable Exchange Act Documents, increased as set forth in the next sentence. The Company has not issued any capital stock since that date other than (i) pursuant to employee benefit plans disclosed in the Exchange Act Documents
(ii) pursuant to outstanding warrants, options or other securities disclosed in the Exchange Act Documents or (iii) as set forth in this Section 4.4. The outstanding shares of capital stock of the Company have been duly and validly issued and are
fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and were not issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as set forth in or
contemplated by the Agreements and the Exchange Act Documents, there are no outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued
shares of capital stock or other equity interest in the Company or any Subsidiary, or any contract, commitment, agreement, understanding or arrangement of any kind to which the Company is a party or of which the Company has knowledge and relating to
the issuance or sale of any capital stock of the Company or any Subsidiary, any such convertible or exchangeable securities or any such rights, warrants or options. On June 6, 2003, the Company issued Aventis Pharma Deutschland GmbH (f/k/a Aventis
Research & Technologies GmbH & Company KG) (“Aventis”) a five-year warrant to purchase 323,850 shares of the Company’s common stock at an exercise price of $5.618 per share (the 

 
“Second Aventis Warrant”). The holder of the Second Aventis Warrant is entitled to demand registration rights. In addition, upon the execution of
the Aventis Agreement, the Company had granted Aventis Research & Technologies Verwaltungs GmbH & Co. KG a five-year warrant to purchase 315,863 shares of its Common Stock at an exercise price of $9.828 per share (the “First Aventis
Warrant”). The holder of the First Aventis Warrant is entitled to demand registration rights with respect to the shares of Common Stock underlying the First Aventis Warrant. Without limiting the foregoing, except as set forth in or contemplated
by the Agreements and the Exchange Act Documents or as set forth in this Section 4.4, no preemptive right, co-sale right, right of first refusal, registration right, or other similar right exists with respect to the Securities or the issuance and
sale thereof or the issuance of the Underlying Shares. No further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and sale of the Securities. The Company owns the entire
equity interest in each of its Subsidiaries, free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest, other than as described in the Exchange Act Documents. Except as disclosed in the Exchange Act Documents,
there are no stockholders agreements, voting agreements or other similar agreements with respect to the Common Stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

  
 4.5 Legal Proceedings. Except as set forth in the
Exchange Act Documents, there is no material legal or governmental proceeding pending or, to the knowledge of the Company, threatened (i) to which the Company or any Subsidiary is or may be a party or of which the business or property of the Company
or any Subsidiary is subject that is not disclosed in the Exchange Act Documents or (ii) which adversely affects or challenges the legality, validity or enforceability of the Agreements. 
  
 4.6 No Violations. Neither the Company nor any Subsidiary is in violation of its charter, bylaws, or other
organizational document, or in violation of any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company or any Subsidiary, which violation, individually or in
the aggregate, would be reasonably likely to have a Material Adverse Effect, or is in default (and there exists no condition which, with the passage of time or otherwise, would constitute a default) in any material respect in the performance of any
bond, debenture, note or any other evidence of indebtedness in any indenture, mortgage, deed of trust or any other material agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or any Subsidiary is bound
or by which the properties of the Company or any Subsidiary are bound, which would be reasonably likely to have a Material Adverse Effect. 
  
 4.7 Governmental Permits, Etc. With the exception of the matters which are dealt with separately in Section 4.1, 4.12, 4.13, and 4.14, each of the
Company and its Subsidiaries has all necessary franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental agency, department, or body that are currently necessary for the
operation of the business of the Company and its Subsidiaries as currently conducted and as described in the Exchange Act Documents except where the failure to currently possess could not reasonably be expected to have a Material Adverse Effect.

  
 4.8 Intellectual Property. Except as specifically
disclosed in the Exchange Act Documents (i) each of the Company and its Subsidiaries owns or possesses sufficient rights to use all material patents, patent rights, trademarks, copyrights, licenses, inventions, trade secrets, trade names, designs,
manufacturing or other processes, systems, data compilation, research results, know-how or other proprietary rights (collectively, “Intellectual Property”) that are necessary for the conduct of its business as now conducted or as proposed
to be conducted as described in the Exchange Act Documents except where the failure to currently own or possess would not have a Material Adverse Effect, (ii) neither the Company nor any of its Subsidiaries is infringing, or has received any notice
of, or has any knowledge of, any asserted infringement by the Company or any of its Subsidiaries of, any rights of a third party with respect to any Intellectual Property that, individually or in the aggregate, would have a Material Adverse Effect
and (iii) neither the Company nor any of its Subsidiaries has received any notice of, or has any knowledge of, infringement by a third party with respect to any Intellectual Property rights of the Company or of any Subsidiary that, individually or
in the aggregate, would have a Material Adverse Effect. 

 Except as disclosed in the Exchange Act Documents, all material licenses or other material agreements
under which (i) the Company is granted rights in Intellectual Property, other than Intellectual Property generally available on commercial terms from other sources, and (ii) the Company has granted rights to others in Intellectual Property owned or
licensed by the Company, are in full force and effect and, to the knowledge of the Company, there is no material default by the Company thereunder. 
  
 The Company believes it has taken commercially reasonable steps required in accordance with sound business practice and business judgment to establish and
preserve its ownership of all material copyright, trade secret and other proprietary rights with respect to its products and technology. To the knowledge of the Company, the Company is not making unauthorized use of any confidential information or
trade secrets of any person. Neither the Company nor, to the knowledge of the Company, any of its employees have any agreements or arrangements with any persons other than the Company related to confidential information or trade secrets of such
persons or restricting any such employee’s engagement in business activities of any nature that, individually or in the aggregate, would have a Material Adverse Effect. 
  
 4.9 Financial Statements. The financial statements of the Company and the related notes contained in the Exchange Act
Documents present fairly, in accordance with generally accepted accounting principles, the financial position of the Company and its Subsidiaries on a consolidated basis, as of the dates indicated, and the results of its operations and cash flows
for the periods therein specified consistent with the books and records of the Company and its Subsidiaries on a consolidated basis, except that the unaudited interim financial statements were or are subject to normal and recurring year-end
adjustments which are not expected to be material in amount. Such financial statements (including the related notes) have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods
therein specified, except in the case of unaudited statements, as may be permitted by the SEC on Form 10-Q under the Exchange Act and except as disclosed in the Exchange Act Documents. 
  
 4.10 No Material Adverse Change. Except as disclosed in the Exchange Act Documents, since June 30, 2003, there has
not been (i) any Material Adverse Effect affecting the Company and its Subsidiaries considered as one enterprise, (ii) any obligation, direct or contingent, that is material to the Company and its Subsidiaries considered as one enterprise, incurred
by the Company, (iii) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company or any of its Subsidiaries, or (iv) any loss or damage (whether or not insured) to the physical property of the Company or any
of its Subsidiaries which has been sustained which has a Material Adverse Effect. 
  
 4.11 Disclosure. The representations and warranties of the Company contained in this Section 4 as of the date hereof and as of the Closing Date, do not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 4.12 NASDAQ Compliance. The Company’s Common Stock is registered pursuant to Section 12(g) of the Exchange Act
and is listed on The Nasdaq Stock Market, Inc. National Market (the “Nasdaq National Market”), and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the
Exchange Act or de-listing the Common Stock from the Nasdaq National Market, nor has the Company received any notification that the SEC or the NASD is contemplating terminating such registration or listing. 
  
 4.13 Reporting Status. The Company has filed in a timely manner all
documents that the Company was required to file under the Exchange Act during the 12 months preceding the date of this Agreement. The following documents complied in all material respects with the SEC’s requirements as of their respective
filing dates, and the information contained therein as of the date thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading: 
  
 (a) Annual Report on Form 10-K for the year ended December 31, 2002; 

 (b) Quarterly Report on Form 10-Q for the quarter ended March 31, 2003; 
  
 (c) Quarterly Report on Form 10-Q for the quarter ended June 30, 2003;

  
 (d) Definitive Proxy Statement, filed on April 30, 2003;

  
 (e) Current Reports on Form 8-K, filed on May 1, 2003, May
22, 2003 and July 31, 2003; and 
  
 (f) All other documents, if
any, filed by the Company with the SEC since December 31, 2002 pursuant to the reporting requirements of the Exchange Act. 
  
 As of the date hereof, the Company satisfies the eligibility requirements for the use of Form S-3 under the Securities Act set forth in General
Instruction I.A to Form S-3. 
  
 4.14 Listing. Within three
(3) days after the Closing Date, the Company shall have filed with the NASD a Notification Form for the Listing of Additional Shares with respect to the Shares and the Underlying Shares and the listing thereof on the Nasdaq National Market.

  
 4.15 No Manipulation of Stock. Neither the Company, nor
any of its directors, officers or controlling persons, has taken or will, in violation of applicable law, take, any action designed to or that might reasonably be expected to cause or result in, or which has constituted, stabilization or
manipulation of the price of the Common Stock to facilitate the sale or resale of the Securities. 
  
 4.16 Company not an “Investment Company”. The Company has been advised of the rules and requirements under the Investment Company Act of
1940, as amended (the “Investment Company Act”). The Company is not, and immediately after receipt of payment for the Securities will not be, an “investment company” or an entity “controlled” by an “investment
company” within the meaning of the Investment Company Act and shall conduct its business in a manner so that it will not become subject to the Investment Company Act. 
  
 4.17 Foreign Corrupt Practices; Sarbanes-Oxley. 
  
 (a) Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company,
has (i) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware)
which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 
  
 (b) The Company is in compliance in all material respects with all provisions of the Sarbanes-Oxley Act of 2002 that are applicable to it as of the
Closing Date. 
  
 4.18 Environmental. Except as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (i) the Company and its Subsidiaries are in compliance with and not subject to any known liability under applicable Environmental Laws (as defined below),
(ii) the Company has made all filings and provided all notices required under any applicable Environmental Law, and has, and is in compliance with, all permits required under any applicable Environmental Laws and each of them is in full force and
effect, (iii) (a) there is no pending civil, criminal or administrative action, or pending hearing or suit, (b) the Company has not received any demand, claim or notice of violation and (c) to the knowledge of the Company, there is no investigation,
proceeding, notice or demand letter o request for information threatened against the Company in the case of (a), (b) and (c), under any Environmental Law, (iv) no lien, charge, encumbrance or restriction has been recorded under 

 
any Environmental Law with respect to any assets, facility or property owned, operated, leased or controlled by the Company, (v) the Company has not received
notice that it has been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), or any comparable state law and (vi) no property or
facility of the Company is (a) listed or, to the knowledge of the Company, proposed for listing on the National Priorities List under CERCLA or is (b) listed in the Comprehensive Environmental Response, Compensation, Liability Information System
List promulgated pursuant to CERCLA, or on any comparable list maintained by any state or local governmental authority. 
  
 For purposes of this Agreement, “Environmental Laws” means all applicable federal, state and local laws or regulations, codes, orders, decrees,
judgments or injunctions issued, promulgated, approved or entered thereunder, relating to pollution or protection of public or employee health and safety or the environment, including, without limitation, laws relating to (i) emissions, discharges,
releases or threatened releases of Hazardous Materials (as defined below) into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata), (ii) the manufacture, processing,
distribution, use, generation, treatment, storage, disposal, transport or handling of Hazardous Materials and (iii) underground and above ground storage tanks and related piping, and emissions, discharges, releases or threatened releases therefrom.
The term “Hazardous Material” means (a) any “hazardous substance,” as defined in the Comprehensive Environmental Response, the Resource Conservation and Recovery Act, as amended, (b) any “hazardous waste,” as defined by
the Resource Conservation and Recovery Act, as amended, (c) any petroleum or petroleum product, (d) any polychlorinated biphenyl and (e) any pollutant or contaminant or hazardous, dangerous or toxic chemical, material, waste or substance.

  
 4.19 Accountants. Ernst & Young LLP, who the
Company expects will issue their report with respect to the financial statements to be incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2002 into the Registration Statement (as defined
below) and the prospectus which forms a part thereof (“Prospectus”), are independent accountants as required by the Securities Act and the rules and regulations promulgated thereunder. 
  
 4.20 Contracts. Except as otherwise described in the Exchange Act
Documents, the contracts described in the Exchange Act Documents that are currently material to the Company are in full force and effect on the date hereof, and neither the Company nor, to the Company’s knowledge, any other party to such
contracts is in breach of or default under any of such contracts which would have a Material Adverse Effect. 
  
 4.21 Taxes. The Company has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown
as due thereon, and the Company has no knowledge of a tax deficiency which has been or might be asserted or threatened against it which would have a Material Adverse Effect. 
  
 4.22 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income taxes) which are
required to be paid in connection with the sale and transfer of the Securities to be sold to the Investor hereunder will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been
fully complied with. 
  
 4.23 Private Offering. Assuming
(i) the correctness of the representations and warranties of each of the Investors set forth in Section 5 hereof, and (ii) that the Placement Agent has not in the past nor will hereafter take any action which would bring the offer, issuance or sale
of the Securities as contemplated by this Agreement, within the provisions of Section 5 of the Securities Act, unless such offer, issuance or sale was or shall be within the exemptions of Section 4 of the Securities Act, the offer and sale of
Securities hereunder is exempt from registration under the Securities Act. The Company has not distributed and will not distribute prior to the Closing Date any offering materials in connection with this Offering and sale of the Securities other
than the documents of which this Agreement is a part or the Exchange Act Documents. The Company has not in the past nor will it hereafter take any action independent of the Placement Agent to sell, offer for sale or solicit offers to buy any
securities of the 

 
Company which would bring the offer, issuance or sale of the Securities as contemplated by this Agreement, within the provisions of Section 5 of the
Securities Act, unless such offer, issuance or sale was or shall be within the exemptions of Section 4 of the Securities Act. 
  
 4.24 Use of Proceeds. The Company shall use the proceeds from the Offering for working capital, general corporate purposes and strategic
acquisitions, if any. 
  
 4.25 Lock-Up. Upon execution of
this Agreement, the Company shall have entered, and shall have caused certain of its officers and directors to enter, into an agreement with the Placement Agent not to sell or otherwise transfer or dispose of any shares of the Company’s capital
stock, except as otherwise permitted by the Placement Agent, until the later to occur of (i) 30 days following the Closing Date and (ii) the effectiveness of the Registration Statement (as defined below). 
  
 4.26 Brokers or Finders. Except for the Placement Agent, the Company
has not dealt with any broker or finder in connection with the transactions contemplated by the Agreements, and except for certain fees and expenses payable by the Company to the Placement Agent, the Company has not incurred, and shall not incur,
directly or indirectly, any liability for any brokerage or finders’ fees or agents commissions or any similar charges in connection with the transactions contemplated by the Agreements. The Investors shall have no obligation with respect to any
fees or with respect to any claims made by or on behalf of other persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Agreements. 
  
 5. Representations, Warranties and Covenants of the Investor. 
  
 5.1 The Investor represents and warrants to, and covenants with, the Company
that: (i) the Investor is an “accredited investor” as defined in Rule 501(a) of Regulation D under the Securities Act and the Investor is also knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with
respect to investments in shares presenting an investment decision like that involved in the purchase of the Securities, including investments in securities issued by the Company and investments in comparable companies, and has requested, received,
reviewed and considered all information it deemed relevant in making an informed decision to purchase the Securities; (ii) the Investor is acquiring the Securities set forth in Section 3 of the Securities Purchase Agreement in the ordinary course of
its business and for its own account for investment only and with no present intention of distributing any of such Securities or any arrangement or understanding with any other persons regarding the distribution of such Securities; (iii) the
Investor will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Securities except in compliance with the Securities Act,
applicable state securities laws and the respective rules and regulations promulgated thereunder; (iv) the Investor has answered all questions in the Securities Purchase Agreement for use in preparation of the Registration Statement and the answers
thereto are true, correct and complete as of the date hereof and will be true, correct and complete as of the Closing Date; (v) the Investor will notify the Company in writing immediately of any change in any of such information until such time as
the Investor has sold all of its Securities or until the Company is no longer required to keep the Registration Statement effective; and (vi) the Investor has, in connection with its decision to purchase the Securities set forth in Section 3 of the
Securities Purchase Agreement, relied only upon the Exchange Act Documents and the representations and warranties of the Company contained herein. The Investor understands that its acquisition of the Securities has not been registered under the
Securities Act or registered or qualified under any state securities law in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of the Investor’s investment intent as expressed
herein. Investor understands that the Securities purchased hereunder have to be held indefinitely unless there is an effective Registration Statement under the Securities Act with respect to the Securities or an exemption from registration available
under the Securities Act and applicable state securities laws, and the Investor is able to bear the economic risk of an investment in the Securities. 

 5.2 The Investor acknowledges, represents and agrees that no action has been or will be taken in any
jurisdiction outside the United States by the Company that would permit an offering of the Securities, or possession or distribution of offering materials in connection with the issue of the Securities, in any jurisdiction outside the United States
where legal action by the Company for that purpose is required. Each Investor outside the United States will comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers Securities or
has in its possession or distributes any offering material, in all cases at its own expense. 
  
 5.3 The Investor hereby covenants with the Company not to make any sale of the Securities without complying with the provisions of this Agreement, including Section 7.2 hereof, and if selling pursuant to the
Registration Statement, without causing the prospectus delivery requirement under the Securities Act to be satisfied, and the Investor acknowledges that, except as otherwise permitted under Section 7.5, the certificates evidencing the Securities
will be imprinted with a legend that prohibits their transfer except in accordance therewith. The Investor acknowledges that there may occasionally be times when the Company determines that it must suspend the use of the Prospectus forming a part of
the Registration Statement, as set forth in Section 7.2(c). 
  
 5.4 The Investor further represents and warrants to, and covenants with, the Company that (i) the Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and
has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (ii) this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as the indemnification agreements of the Investors herein may be legally unenforceable. 
  
 5.5 Investor will not use any of the restricted Securities acquired pursuant
to this Agreement to cover any short position in the Common Stock of the Company if doing so would be in violation of applicable securities laws. 
  
 5.6 The Investor understands that nothing in the Exchange Act Documents, this Agreement or any other materials presented to the Investor in connection
with the purchase and sale of the Securities constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its
purchase of Shares. 
  
 6. Survival of Representations,
Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement, all representations and warranties made by the Company and the Investor herein shall survive the execution of this Agreement, the delivery to the
Investor of the Securities being purchased and the payment therefor, until the third anniversary of the date hereof. All covenants and agreements made by the Company and the Investor herein shall survive in accordance with the terms hereof.

  
 7. Registration of the Shares; Compliance with the Securities
Act. 
  
 7.1 Registration Procedures and Other Matters.
The Company shall: 
  
 (a) (i) subject to the completion in full
of the information requested on the signature pages of the Agreements by the Investors, prepare and file with the SEC, within 15 business days after the Closing Date (the “First Filing Date”), a registration statement on Form S-3 or such
other successor form (except that if the Company is not then eligible to register for resale the Registrable Securities (as defined below) on Form S-3, in which case such registration shall be on Form S-1 or any successor form) (the “First
Registration Statement”) to enable the resale of the Shares and the Underlying 

 
Shares (collectively, the “Registrable Securities”) by the Investors from time to time pursuant to the Plan of Distribution set forth as Exhibit
F.; 
  
 (ii) notwithstanding clause (i) above, if the shares of
Common Stock underlying the Six Month Warrants and the One Year Warrants (collectively, the “Additional Shares”) cannot be registered for resale under the First Registration Statement, then, subject to receipt of any additional required
information from the Investors after prompt request from the Company to the Investors to provide such information, prepare and file with the SEC: within 10 days (such tenth day, the “Additional Filing Date”) after each date on which
Investors irrevocably commit in writing to the Company to purchase within two (2) business days following the effectiveness of the Applicable Registration Statement (as defined below), or actually purchase, a minimum of 500,000 Additional Shares in
the aggregate (each, an “Additional Trigger Date”), a registration statement on Form S-3 or such other successor form (except that if the Company is not then eligible to register for resale the Additional Shares on Form S-3, in which case
such registration shall be on Form S-1 or any successor form) (each, an “ Additional Registration Statement” and collectively, the “Additional Registration Statements”) to enable the resale of the Additional Shares by the
Investors from time to time pursuant to the Plan of Distribution set forth as Exhibit F.. After the Additional Trigger Date, the Company shall use commercially reasonable efforts to notify each holder of Six Month Warrants or One Year Warrants then
outstanding and not subject to an irrevocable commitment to purchase the Additional Shares issuable thereunder (the “Non-Triggering Warrant Holders”) of the Company’s intention to file an Additional Registration Statement in an
attempt to include Additional Shares on behalf of the Non-Triggering Warrant Holders in such Additional Registration Statement, provided, however, that the Registrable Securities required to be included in each Additional Registration
Statement shall be limited to those Additional Shares that Investors have irrevocably committed to purchase (and that are eligible to be purchased pursuant to the terms of the respective warrant instrument) or that have been purchased at least 10
days prior to the applicable Additional Filing Date. 
  
 (b) use
its reasonable best efforts, subject to receipt of any additional required information from the Investors after prompt request from the Company to the Investors to provide such information, to cause the First Registration Statement and each
Additional Registration Statement (each of which is referred to herein as the “Registration Statement”) to become effective within 90 days after the Closing Date in the case of the First Registration Statement, and, in the case of an
Additional Registration Statement, with respect to each Investor whose Registrable Securities are included therein, within 60 days after the later of (x) the applicable Additional Trigger Date or (y) the date on which such Investor irrevocably
committed to purchase or purchased the Registrable Securities included in such Additional Registration Statement (each, an “Effectiveness Date”), such efforts to include, without limiting the generality of the foregoing, preparing and
filing with the SEC in such 90-day or 60-day period, as applicable, any financial statements that are required to be filed prior to the effectiveness of such Registration Statement; provided, however, that if a Registration Statement cannot be
declared effective due to the fact that financial statements to be included in the Company’s Annual Report on Form 10-K have not been and are not then required to be filed with the SEC, the Effectiveness Date shall be extended to the earlier of
(i) the date on which the Company is required to file its Annual Report on Form 10-K and (ii) the date on which the Company could have filed such financial statements with the SEC had it used reasonable best efforts to do so; 
  
 (c) use its reasonable best efforts to prepare and file with the SEC such
amendments and supplements to the Registration Statement and the Prospectus used in connection therewith as may be necessary to keep the Registration Statement current, effective and free from any material misstatement or omission to state a
material fact for a period not exceeding, with respect to each Investor’s Registrable Securities purchased hereunder, the earlier of (i) the second anniversary of the date on which the Registrable Securities were purchased, (ii) the date on
which the Investor may sell all Registrable Securities then held by the Investor without restriction by the volume limitations of Rule 144(e) of the Securities Act, or (iii) such time as all Registrable Securities purchased by such Investor in this
Offering have been sold pursuant to a registration statement; 

 (d) so long as the Investor holds Registrable Securities, provide copies to and permit legal counsel
designated by the Investor to review the Registration Statement and all amendments and supplements thereto (at no additional expense to the Company), no fewer than two business days prior to their filing with the SEC (provided that the Company shall
use commercially reasonable efforts to provide Investors with copies of the Registration Statement and all amendments and supplements thereto at least four calendar days prior to their filing with the SEC), and not file any Registration Statement,
amendment or supplement thereto to which holders of a majority in interest of the Registrable Securities reasonably object in writing within such two business or four calendar day period, as applicable; 
  
 (e) furnish to the Investor with respect to the Registrable Securities
registered under the Registration Statement such number of copies of the Registration Statement, Prospectuses (under cover of the form of letter attached hereto as Exhibit D) and preliminary Prospectuses (“Preliminary Prospectuses” and
individually, “Preliminary Prospectus”) in conformity with the requirements of the Securities Act and such other documents as the Investor may reasonably request, in order to facilitate the public sale or other disposition of all or any of
the Registrable Securities by the Investor; provided, however, that the obligation of the Company to deliver copies of Prospectuses or Preliminary Prospectuses to the Investor shall be subject to the receipt by the Company of
reasonable assurances from the Investor that the Investor will comply with the applicable provisions of the Securities Act and of such other securities or blue sky laws as may be applicable in connection with any use of such Prospectuses or
Preliminary Prospectuses; 
  
 (f) file documents required of the
Company for normal blue sky clearance in states specified in writing by the Investor and use its reasonable best efforts to maintain such blue sky qualifications during the period the Company is required to maintain the effectiveness of the
Registration Statement pursuant to Section 7.1(c); provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not
so consented; 
  
 (g) bear all expenses in connection with the
procedures in paragraph (a) through (f) of this Section 7.1 and the registration of the Registrable Securities pursuant to the Registration Statement; 
  
 (h) advise the Investor, promptly after it shall receive notice or obtain knowledge of the issuance of any stop order by the SEC delaying or suspending
the effectiveness of the Registration Statement or of the initiation or threat of any proceeding for that purpose; and it will promptly use its reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the
earliest possible moment if such stop order should be issued; and 
  
 (i) if: (i) a Registration Statement is not filed on or prior to the First Filing Date or any Additional Filing Date, as applicable (each, a “Filing Date”) in violation of this Agreement (if the Company files a Registration
Statement without affording the Investor the opportunity to review and comment on the same as required by Section 7.1(d), the Company shall not be deemed to have satisfied this clause (i)); provided, however, that if an Investor fails
to provide the Company with any information that is required to be provided in the Registration Statement with respect to such Investor pursuant to Section 7.1(a) or (b), then the Filing Date shall be extended until two business days following the
date of receipt by the Company of such required information, or (ii) the Company fails to file with the SEC a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within five business days following the date
that the Company is notified (orally or in writing, whichever is earlier) by the SEC that a Registration Statement will not be “reviewed,” or not subject to further review, or (iii) prior to the date when a Registration Statement is first
declared effective by the SEC, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the SEC in respect of such Registration Statement within ten business days after the receipt of comments by or
notice from the SEC that such amendment is required in order for a Registration Statement to be declared effective, or (iv) a Registration Statement filed hereunder is not declared effective by the SEC on or before the applicable Effectiveness Date,
or (v) after a Registration Statement is first declared effective by the SEC, it ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be 

 
effective or the Investors are not permitted to utilize the Prospectus therein to resell such Registrable Securities, other than, in each case, within the
time limits permitted by Sections 7.2(d) and 7.2(e)) (any such failure or breach being referred to as an “Event,” and for purposes of clause (i) or (iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which
such five business day period is exceeded, or for purposes of clauses (iii) the date which such ten business day period is exceeded, or for purposes of clause (v) the date on which such Registration Statement is not effective or such Prospectus is
not available for use being referred to as “Event Date”), then in addition to any other rights the Investors may have hereunder or under applicable law: (x) on each such Event Date the Company shall pay to each Investor an amount in cash,
as liquidated damages and not as a penalty, equal to 1% of the aggregate purchase price paid by such Investor in cash pursuant to the Agreements for any Registrable Securities then held by such Investor that are covered by the Registration Statement
or Prospectus to which the Event relates; and (y) on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Investor an
amount in cash, as liquidated damages and not as a penalty, equal to 2% of the aggregate purchase price paid by such Investor in cash pursuant to the Agreement for any Registrable Securities then held by such Investor that are covered by the First
Registration Statement or Prospectus contained therein to which the Event relates and, in the case of any Additional Registration Statement, 2% of the aggregate purchase price paid by such Investor in cash pursuant to the Agreement for any
Registrable Securities then held by such Investor that are covered by the applicable Additional Registration Statement or Prospectus contained therein to which the Event relates. Notwithstanding the foregoing, the Company shall not be obligated to
pay any penalties to Investors hereunder with respect to an Event under clause (i) or (iv) of this subsection (i) relating to a Registration Statement or any Additional Registration Statements if the securities covered thereby were acquired pursuant
to the “cashless exercise” of warrants. If the Company fails to pay any liquidated damages pursuant to this Section in full within seven business days after the date payable, the Company will pay interest thereon at a rate of 12% per annum
(or such lesser maximum amount that is permitted to be paid by applicable law) to the Investor, accruing daily from the date such liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. Nothing contained
herein shall be construed to require the Company to pay any amounts under this Section 7.1(i) as a result of the impermissibility of the resale registration of the Additional Shares under the First Registration Statement. 
  
 With a view to making available to the Investor the benefits of Rule 144 (or
its successor rule) and any other rule or regulation of the SEC that may at any time permit the Investor to sell Registrable Securities to the public without registration, the Company covenants and agrees to: (i) make and keep public information
available, as those terms are understood and defined in Rule 144, until the earlier of (A) such date as all of the Investor’s Registrable Securities may be resold pursuant to Rule 144(k) or any other rule of similar effect or (B) such date as
all of the Investor’s Registrable Securities shall have been resold; (ii) file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act; and (iii) furnish to the Investor upon request, as
long as the Investor owns any Registrable Securities, (A) a written statement by the Company that it has complied with the reporting requirements of the Exchange Act; (B) a copy of the Company’s most recent Annual Report on Form 10-K or
Quarterly Report on Form 10-Q (exclusive of exhibits thereto), and (C) such other information as may be reasonably requested in order to avail the Investor of any rule or regulation of the SEC that permits the selling of such Registrable Securities
without registration. 
  
 In no event at any time before the First
Registration Statement becomes effective with respect to the Shares shall the Company publicly announce or file any other registration statement, other than registrations (i) on Form S-4, Form S-8 or any successor forms thereof, (ii) pursuant to
outstanding registration rights granted by the Company and disclosed in Section 4.4 or in the Exchange Act Documents, without the prior written consent of a majority in interest of the Investors or (iii) in connection with acquisitions, including
the resale of securities issued in acquisitions. 
  
 The Company
understands that the Investor disclaims being an underwriter, but the Investor being deemed an underwriter by the SEC shall not relieve the Company of any obligations it has hereunder. 
  
 The Plan of Distribution set forth in a Registration Statement shall be as set forth in Exhibit F 

 
attached hereto. 
  
 7.2 Transfer of Shares After Registration, Suspension. 
  
 (a) The Investor agrees that it will not effect any disposition of the Registrable Securities or its right to purchase the Registrable Securities that
would constitute a sale within the meaning of the Securities Act except as contemplated in the Registration Statement referred to in Section 7.1 (including, without limitation, the plan of distribution contained therein) and as described below or as
otherwise permitted by law, and that it will promptly notify the Company in writing of any changes in the information set forth in the Registration Statement regarding the Investor or its plan of distribution. 
  
 (b) Except in the event that paragraph (c) below applies, the Company shall
(i) if deemed necessary by the Company, prepare and file from time to time with the SEC a post-effective amendment to the Registration Statement or a supplement to the related Prospectus or a supplement or amendment to any document incorporated
therein by reference or file any other required document so that such Registration Statement will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, and so that, as thereafter delivered to purchasers of the Registrable Securities being sold thereunder, such Prospectus will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (ii) provide the Investor copies of any documents
filed pursuant to Section 7.2(b)(i); and (iii) inform each Investor that the Company has complied with its obligations in Section 7.2(b)(i) (or that, if the Company has filed a post-effective amendment to the Registration Statement which has not yet
been declared effective, the Company will notify the Investor to that effect, will use its reasonable best efforts to secure the effectiveness of such post-effective amendment as promptly as possible and will promptly notify the Investor pursuant to
Section 7.2(b)(i) hereof when the amendment has become effective). 
  
 (c) Subject to paragraph (d) below, in the event (i) of any request by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to a
Registration Statement or related Prospectus or for additional information; (ii) of the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose; or (iv) of any event or circumstance which, upon the advice of its counsel, necessitates the making of any changes in the Registration Statement or Prospectus, or any
document incorporated or deemed to be incorporated therein by reference, so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or any omission to
state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; then the Company shall deliver a certificate in writing to the Investor
(the “Suspension Notice”) to the effect of the foregoing and, upon receipt of such Suspension Notice, the Investor will refrain from selling any Registrable Securities pursuant to the Registration Statement (a “Suspension”) until
the Investor’s receipt of copies of a supplemented or amended Prospectus prepared and filed by the Company, or until it is advised in writing by the Company that the current Prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference in any such Prospectus. In the event of any Suspension, the Company will use its reasonable best efforts to cause the use of the Prospectus so suspended to be resumed as
soon as reasonably practicable within 20 business days after the delivery of a Suspension Notice to the Investor. In addition to and without limiting any other remedies (including, without limitation, at law or at equity) available to the Investor,
the Investor shall be entitled to specific performance in the event that the Company fails to comply with the provisions of this Section 7.2(c). 

 (d) Notwithstanding the other paragraphs of this Section 7.2, the Investor shall not be prohibited from
selling Registrable Securities under a Registration Statement as a result of Suspensions on more than two occasions of not more than 20 days each or 30 days in the aggregate in any twelve month period. If, in the good faith judgment of the
Company’s Board of Directors, upon the written advice of counsel, the sale of Registrable Securities under a Registration Statement in reliance on this paragraph 7.2(d) would be reasonably likely to cause a violation of the Securities Act or
the Exchange Act and result in liability to the Company, the Company may extend the 20-day Suspension referenced in the immediately preceding sentence; provided, however, that in no event shall the Company be allowed to suspend a
Registration Statement for more than an aggregate of 90 days in any twelve month period, subject to the payment of liquidated damages for any suspension beyond 20-days. 
  
 (e) Subject to Section 7.2(d), provided that a Suspension is not then in effect, the Investor may sell Registrable
Securities under a Registration Statement in the manner set forth under the caption “Plan of Distribution” in the Prospectus, provided that it arranges for delivery of a current Prospectus to the transferee of such Registrable
Securities. Upon receipt of a request therefor, the Company has agreed to provide an adequate number of current Prospectuses to the Investor and to supply copies to any other parties requiring such Prospectuses. 
  
 (f) In the event of a sale of Registrable Securities by the Investor
pursuant to the Registration Statement, the Investor must also deliver to the Company’s transfer agent, with a copy to the Company, a Certificate of Subsequent Sale substantially in the form attached hereto as Exhibit E, so that the
Registrable Securities may be properly transferred. 
  
 7.3
Indemnification. For the purpose of this Section 7.3: 
  
 (i) the term “Selling Stockholder” shall include the Investor and any affiliate of such Investor; 
  
 (ii) the term “Registration Statement” shall include the Prospectus in the form first filed with the SEC pursuant to Rule 424(b) of the
Securities Act or filed as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing is required, exhibit, supplement or amendment included in or relating to the Registration Statement referred to in Section 7.1; and

  
 (iii) the term “untrue statement” shall include any
untrue statement or alleged untrue statement of a material fact in the Registration Statement, or any omission or alleged omission to state in the Registration Statement a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 (a) The Company agrees to indemnify and hold harmless each Selling Stockholder from and against any losses, claims, damages or liabilities to which such
Selling Stockholder may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon (i) any breach of the
representations or warranties of the Company contained herein, or failure to comply with the covenants and agreements of the Company contained herein, (ii) any untrue statement of a material fact contained in the Registration Statement as amended at
the time of effectiveness or any omission of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or (iii) any failure by the Company to
fulfill any undertaking included in the Registration Statement as amended at the time of effectiveness, and the Company will reimburse such Selling Stockholder for any reasonable legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim, provided, however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of, or is based upon,
an untrue statement made in such Registration Statement or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading in reliance upon and in conformity with written information furnished
to the Company by or on behalf of such Selling Stockholder specifically for use in preparation of the Registration Statement or the failure of such Selling Stockholder to comply with its covenants and agreements contained in Sections 5.1, 5.2, 5.3
and 7.2 

 
hereof or any statement or omission in any Prospectus that is corrected in any subsequent Prospectus that was delivered to the Selling Stockholder prior to
the pertinent sale or sales by the Selling Stockholder. The Company shall reimburse each Selling Stockholder for the amounts provided for herein on demand as such expenses are incurred. 
  
 (b) The Investor agrees to indemnify and hold harmless the Company (and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the Registration Statement and each director of the Company) from and against any losses, claims, damages or liabilities to which the Company (or any such
officer, director or controlling person) may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, (i) any
failure to comply with the covenants and agreements of the Investor contained in Sections 5.1, 5.2, 5.3 or 7.2 hereof, or (ii) any untrue statement of a material fact contained in the Registration Statement or any omission of a material fact
required to be stated therein or necessary to make the statements therein not misleading if such untrue statement or omission was made in reliance upon and in conformity with written information furnished by or on behalf of the Investor specifically
for use in preparation of the Registration Statement, and the Investor will reimburse the Company (or such officer, director or controlling person), as the case maybe, for any legal or other expenses reasonably incurred in investigating, defending
or preparing to defend any such action, proceeding or claim; provided that the Investor’s obligation to indemnify the Company shall be limited to the net amount received by the Investor from the sale of the Registrable Securities.

  
 (c) Promptly after receipt by any indemnified person of a
notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 7.3, such indemnified person shall notify the indemnifying person in writing of such claim or of
the commencement of such action, but the omission to so notify the indemnifying person will not relieve it from any liability which it may have to any indemnified person under this Section 7.3 (except to the extent that such omission materially and
adversely affects the indemnifying person’s ability to defend such action) or from any liability otherwise than under this Section 7.3. Subject to the provisions hereinafter stated, in case any such action shall be brought against an
indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified person promptly after receiving the aforesaid notice from such indemnified
person, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to assume the defense thereof, such
indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof, provided, however, that if there exists or shall exist a
conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the
indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying person shall be responsible for the fees and expenses of more than one separate counsel
(together with appropriate local counsel) for all indemnified parties. In no event shall any indemnifying person be liable in respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the terms of
such settlement; provided that such consent shall not be unreasonably withheld. No indemnifying person shall, without the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in
respect of which any indemnified person is or could have been a party and indemnification could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all
liability on claims that are the subject matter of such proceeding. 
  
 (d) If the indemnification provided for in this Section 7.3 is unavailable to or insufficient to hold harmless an indemnified person under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) referred to therein, then each indemnifying person shall contribute to the amount paid or payable by such indemnified person as a result of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Investor on the other in 

 
connection with the statements or omissions or other matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof),
as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether the untrue statement relates to information supplied by the Company on
the one hand or an Investor on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. The Company and the Investor agree that it would not be just and equitable
if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Investors were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable
considerations referred to above in this subsection (d). The amount paid or payable by an indemnified person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), the Investor shall not be
required to contribute any amount in excess of the amount by which the net amount received by the Investor from the sale of the Registrable Securities to which such loss relates exceeds the amount of any damages which such Investor has otherwise
been required to pay by reason of such untrue statement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Investor’s obligations in this subsection to contribute shall be in proportion to its sale of Registrable Securities to which such loss relates and shall not be joint with any other Selling Stockholders.

  
 (e) The parties to this Agreement hereby acknowledge that
they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including, without limitation, the provisions of this Section 7.3, and are fully informed regarding said provisions. They
further acknowledge that the provisions of this Section 7.3 fairly allocate the risks in light of the ability of the parties to investigate the Company and its business in order to assure that adequate disclosure is made in the Registration
Statement as required by the Securities Act. The parties are advised that federal or state public policy as interpreted by the courts in certain jurisdictions may be contrary to certain of the provisions of this Section 7.3, and the parties hereto
hereby expressly waive and relinquish any right or ability to assert such public policy as a defense to a claim under this Section 7.3 and further agree not to attempt to assert any such defense. 
  
 7.4 Termination of Conditions and Obligations. The conditions
precedent imposed by Section 5 or this Section 7 upon the transferability of the Securities or the Registrable Securities, as applicable, shall cease and terminate as to any particular Securities or the Registrable Securities, as applicable, when
such Securities or the Registrable Securities, as applicable, shall have been effectively registered under the Securities Act and sold or otherwise disposed of in accordance with the intended method of disposition set forth in the Registration
Statement covering the Registrable Securities or at such time as an opinion of counsel reasonably satisfactory to the Company shall have been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act.

  
 7.5 Restrictive Legends. The Investors agree to the
imprinting, so long as is required by this Section 7.5, of a legend on any of the Securities in the following form: 
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH AND SUCH COUNSEL SHALL BE 

 
REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER
LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 
  
 (a) The Company acknowledges and agrees that a Investor may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and, if required under the terms of such
arrangement, such Investor may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party
or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Investor’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party
of Securities may reasonably request in connection with a pledge or transfer of the Securities, including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of
the Securities Act to appropriately amend the list of Selling Stockholders thereunder. 
  
 (b) Certificates evidencing the Shares and Underlying Shares shall not contain any legend (including the legend set forth in Section 7.5, (i) while a registration statement (including the Registration Statement)
covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Shares or Underlying Shares pursuant to Rule 144, or (iii) if such Shares or Underlying Shares are eligible for sale under Rule 144(k), or
(iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff of the SEC). The Company shall cause its counsel to issue a legal opinion to the
Company’s transfer agent promptly after the Effectiveness Date of an applicable Registration Statement if required by the Company’s transfer agent to effect the removal of the legend hereunder. If all or any portion of a Warrant is
exercised at a time when there is an effective Registration Statement to cover the resale of the Underlying Shares, such Underlying Shares shall be issued free of all legends. The Company agrees that following the Effectiveness Date of an applicable
Registration Statement or at such time as such legend is no longer required under this Section 7.5, it will, no later than three business days following the delivery by a Investor to the Company or the Company’s transfer agent of a certificate
representing Shares or Underlying Shares, as the case may be, covered by such Registration Statement and issued with a restrictive legend, deliver or cause to be delivered to such Investor a certificate representing such securities that is free from
all restrictive and other legends, and, if the Company’s transfer agent is a participant in the Depository Trust Company’s DWAC system, upon request of the Investor, to deliver such Shares or Underlying Shares to the DWAC delivery
coordinates specified in writing by the Investor. Except as may otherwise be required by applicable securities laws, the Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the
restrictions on transfer set forth in this Section. 
  
 (c) In
addition to each Investor’s other available remedies, the Company shall pay to an Investor, in cash, as liquidated damages and not as a penalty, for each $1,000 of Shares or Underlying Shares (based on the Current Market Value of the Common
Stock on the date such Securities are submitted to the Company’s transfer agent) subject to Section 7.5(b), $10 per business day (increasing to $20 per business day five (5) business days after such damages have begun to accrue) for each
business day after such third business day until such certificate is delivered. The “Current Market Value” means, in respect of the Common Stock, on any date herein specified, the closing sale price on such date, or if there shall not then
be a public market for the Common Stock, the value per share of Common Stock as at such date as determined in good faith by the Company’s Board of Directors. The closing sale price for each such trading day shall be (i) the last reported sales
price on such date on The NASDAQ National Market (“NASDAQ”) or the principal U.S. stock exchange on which the Common Stock is then listed or admitted to trading (“Trading Market”), (ii) if no sale takes place on such day on any
such exchange, the average of the last reported closing bid and asked prices on such day as officially quoted on NASDAQ or any such 

 
exchange, (iii) if the Common Stock is not then listed or admitted to trading on NASDAQ or any stock exchange, the average of the last reported closing bid
and asked prices on such day in the over-the-counter market, as furnished by the National Association of Securities Dealers Automatic Quotation System or the National Quotation Bureau, Inc., (iv) if neither such corporation at the time is engaged in
the business of reporting such prices, as furnished by any similar firm then engaged in such business, or (v) if there is no such firm, as furnished by any member of the National Association of Securities Dealers, Inc. selected by the Company.
Nothing herein shall limit such Investor’s right to pursue actual damages for the Company’s failure to deliver certificates representing any Securities as required herein, and such Investor shall have the right to pursue all remedies
available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. 
  
 (d) Each Investor, severally and not jointly, agrees that the removal of the restrictive legend from certificates representing Shares and Underlying
Shares as set forth in this Section 7.5 is predicated upon the Company’s reliance on, and each Investor’s agreement that, and each Investor hereby agrees that, the Investor will not sell any Securities except pursuant to either the
registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom. 
  
 7.6 Information Available. So long as a Registration Statement is effective covering the resale of Registrable Securities owned by the Investor,
the Company will furnish to the Investor: 
  
 (a) as soon as
practicable after it is available, one copy of (i) its Annual Report to Stockholders (which Annual Report shall contain financial statements audited in accordance with generally accepted accounting principles by a national firm of certified public
accountants), (ii) if not included in substance in the Annual Report to Stockholders, its Annual Report on Form 10-K and (iii) its Quarterly Reports on Form 10-Q (the foregoing, in each case, excluding exhibits); 
  
 (b) upon the request of the Investor, all exhibits excluded by the
parenthetical to subparagraph (a) of this Section 7.6 as filed with the SEC and all other information that is made available to shareholders; and 
  
 (c) upon the reasonable request of the Investor, an adequate number of copies of the Prospectuses to supply to any other party requiring such
Prospectuses. 
  
 8. Subsequent Placements. 
  
 (a) Until the one year anniversary of the date hereof, the Company will
not, directly or indirectly, offer, sell, grant any option to purchase any of its equity or equity equivalent securities, including without limitation any debt, preferred stock or other instrument or security that is, at any time during its life and
under any circumstances, convertible into or exchangeable for Common Stock in a private offering undertaken for the purpose of raising capital (any such offer, sale, grant, disposition or announcement being referred to as a “Subsequent
Placement”), unless (i) the Company delivers to each of the Investors a written notice (the “Subsequent Placement Notice”) of its intention to effect such Subsequent Placement, which Subsequent Placement Notice shall describe in
reasonable detail the proposed terms of such Subsequent Placement, the amount of proceeds intended to be raised thereunder, the person with whom such Subsequent Placement is proposed to be effected, and attached to which shall be a term sheet or
similar document relating thereto and (ii) such Investor shall not have notified the Company by 6:30 p.m. (New York City time) on the fifth trading day after its receipt of the Subsequent Placement Notice of its willingness to provide, subject to
completion of mutually acceptable documentation, financing to the Company on the same terms set forth in the Subsequent Placement Notice, provided that the Investors’ right to participate in any Subsequent Placement shall be limited in the
aggregate to 35% of the total gross proceeds raised by the Company in such Subsequent Placement, and further provided an Investor’s right to participate in any Subsequent Placement shall be limited to the amount that would not require the
Company to obtain prior shareholder approval for the Subsequent Placement under Nasdaq Marketplace Rule 4350(i)(1)(B) or any successor rule, unless the Company is 

 
otherwise required to obtain prior shareholder approval for such Subsequent Placement, in which case the Company shall seek the approval of its shareholders
for the Investors to fund up to 35% of the gross proceeds raised in the Subsequent Placement, which participation level shall be subject to the Company obtaining such approval. If the Investors shall fail to so notify the Company of their
willingness to participate or are not eligible to participate in the Subsequent Placement, the Company may effect such Subsequent Placement on the terms and to one or more of the persons set forth in the Subsequent Placement Notice; provided that
the Company must provide the Investors with a second Subsequent Placement Notice, and the Investors will again have the right of participation set forth above in this paragraph (a), if the Subsequent Placement subject to the initial Subsequent
Placement Notice is not consummated for any reason on the terms set forth in such Subsequent Placement Notice within 40 days after the date of the initial Subsequent Placement Notice with the one or more of the persons identified in the Subsequent
Placement Notice. If the Investors are eligible to participate and indicate a willingness to participate in the Subsequent Financing, then the Company may, in its sole discretion, increase the amount of proceeds to be raised in the Subsequent
Financing set forth in the Subsequent Placement Notice in order to accommodate such Investors’ participation, which shall remain subject to the limitations set forth in this paragraph (a), except that the Company cannot increase the overall
size of such Subsequent Placement to the extent such increase would thereby require prior shareholder approval under applicable law or Nasdaq marketplace rules. Such increase shall not require the Company to send an additional Subsequent Placement
Notice to the Investors. If eligible Investors indicate a willingness to provide financing in excess of the 35% limitation described above, then each such Investor will be entitled to provide financing pursuant to such Subsequent Placement Notice up
to an amount equal to the product of (x) such Investor’s pro rata portion of the aggregate purchase price paid in cash for the Securities (including the Underlying Shares) under the Agreements and (y) 35% of the total gross proceeds raised by
the Company in such Subsequent Placement. 
  
 (b) The
restrictions contained in paragraph (a) of this Section 8 shall not apply to (i) the granting of options to consultants, employees, officers and directors of the Company pursuant to any stock option plan duly adopted by the Company or to the
issuance of Common Stock upon exercise of such options or (ii) any equity securities issued pursuant to any equipment leasing arrangement or debt financing from a bank or similar financial institution whose primary business is lending money and not
investing in securities; (iii) any equity securities issued in connection with strategic transactions involving the Company and other entities, including (A) joint ventures, manufacturing, marketing or distribution arrangements, (B) technology
transfer or development arrangements; provided, that the primary purpose of such transaction is not the raising of capital, (iv) any securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition or similar
business combination; (v) any securities issued in connection with the settlement of pending or threatened litigation or similar proceeding, (vi) shares of Common Stock issued in conjunction with any stock split, stock dividend or recapitalization
of the Company, (vii) any securities issuable upon the exercise or conversion of, or pursuant to the anti-dilution provisions contained within, any agreement, option, restricted stock awards, preferred stock or warrants outstanding on the date
hereof (but not to the extent amended hereafter) and (viii) any Securities issuable under the Agreements and the Warrants issued thereunder (including those issued pursuant to the anti-dilution provisions contained therein). 
  
 9. Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be mailed (A) if within the United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered from outside the
United States, by International Federal Express or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier,
one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed, (iv) if delivered by facsimile, upon electronic confirmation of receipt and shall be delivered as addressed as follows:

  
 (a) if to the Company, to: 

 Nanogen, Inc. 
 10398 Pacific Center Ct. 
 San Diego, CA 92121 
 Attn: Chief Executive Officer 
 Tel: (877)
626-6436 
 Fax: (858) 410-4949 
  
 (b) with a copy to: 
  
 Morgan, Lewis & Bockius LLP 
 1701
Market St. 
 Philadelphia, PA 19103 
 Attn: Richard A. Silfen, Esq. 
 Tel: (215) 963-5000 
 Fax: (215) 963-5001 
  
 (c) if to
the Investor, at its address on the signature page hereto, or at such other address or addresses as may have been furnished to the Company in writing. 
  
 10. Changes. This Securities Purchase Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company
and the Investor party hereto. The Company will not offer any Investor any consideration for agreeing to any amendment of any of the Agreements or any Warrant issued thereunder without offering the same consideration to all Investors. 
  
 11. Headings. The headings of the various sections of this Agreement
have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement. 
  
 12. Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
  
 13. Governing Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without
giving effect to the principles of conflicts of law. 
  
 14.
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more
counterparts have been signed by each party hereto and delivered to the other parties. 
  
 15. Expenses Each of the parties hereto shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance of the Agreements and the transactions contemplated
thereby, except that the Company shall be responsible for the payment of the Investors’ reasonable legal fees that they incur with respect to the negotiation, execution and delivery of the Agreements and any Registration Statements, as
documented by detailed invoices, up to a maximum of $20,000 for all Investors in the aggregate (pro rata in relation to the purchase price paid for the Shares purchased by each Investor if, in the aggregate, such expenses exceed $20,000).

  
 16. Successors and Assigns. This Agreement shall inure
to the benefit of and be binding upon the successors and permitted assigns of each of the parties. Each Investor’s rights under Section 7 hereof, to have the Company register for resale Registrable Securities in accordance with the terms of
this Agreement, shall be automatically assignable by each Investor 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 assignees is restricted under the
Securities Act and applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this Section, the transferee or assignee agrees in writing with the Company to be bound by all of
the provisions of this Agreement; and (v) such transfer shall have been made in accordance with the applicable requirements of this Agreement. 
  
 17. Confidential Information. The Investor represents to the Company that, at all times during the Company’s offering of the Securities, the
Investor has maintained in confidence the existence of this offering and covenants that it will continue to maintain in confidence such information until such information becomes generally publicly available other than through a violation of this
provision by the Investor or its agents. 
  
 18. Non-Public
Information. Other than with respect to the existence of the transaction contemplated hereby, the Company covenants and agrees that it has not and will not, and it will instruct its officers and directors to not, provide any Investor with any
information that the Company believes constitutes material non-public information, unless prior thereto such Investor shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and
confirms that each Investor shall be relying on the foregoing representations in effecting transactions in the Securities of the Company. 
  
 19. Securities Laws Disclosure; Publicity. The Company shall, within one (1) trading day following the Closing Date, issue a press release or file
a Current Report on Form 8-K, in each case reasonably acceptable to each Investor disclosing the transactions contemplated hereby and make such other filings and notices in the manner and time required by the SEC. The Company and each Investor shall
consult with each other in issuing any press releases with respect to the transactions contemplated hereby, and neither the Company nor any Investor shall issue any such press release or otherwise make any such public statement without the prior
consent of the Company, with respect to any press release of any Investor, or without the prior consent of each Investor, with respect to any press release of the Company, which consent shall not unreasonably be withheld, except if such disclosure
is required by law, in which case the disclosing party shall, to the extent not inconsistent with the disclosing party’s legal obligations, promptly provide the other party with prior notice of such public statement or communication.
Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Investor, or include the name of any Investor in any filing with the SEC or any regulatory agency or Trading Market, without the prior written consent of such
Investor, except (i) as required by federal securities law in connection with the registration statement contemplated by Section 7.1 hereof and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the
Company shall provide the Investors with prior notice of such disclosure permitted under subclause (i) or (ii). 
  
 20. Independent Nature of Investors’ Obligations and Rights. Except as otherwise set forth in Section 7.1(a), the obligations of each Investor
under any of the Agreements and the Warrants issued thereunder (collectively, the “Transaction Documents”) are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under any Transaction Document. Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Document. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Securities Purchase Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. Each Investor has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. For reasons
of administrative convenience only, Investors and their respective counsel have chosen to communicate with the Company through Feldman Weinstein LLP (“FW”). FW does not represent all of the Investors in this transaction but only those
managed by RAM Capital Resources LLC. The Company has elected to provide all Investors with the same terms and forms of Transaction Documents for the convenience of the Company and not because it was required or requested to do so by the Investors.

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