Document:

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                                                                     EXHIBIT 4.5

                   WARRANT AND COMMON STOCK PURCHASE AGREEMENT

      This WARRANT AND COMMON STOCK PURCHASE AGREEMENT is dated effective as of
May 25, 2005 (the "Effective Date") by and between Protalex, Inc., a Delaware
corporation with its principal office at 145 Union Square Drive, New Hope, PA
18938 (the "Company"), and the several purchasers identified from timer to time
in the attached Exhibit A (individually, a "Purchaser" and collectively, the
"Purchasers").

      NOW, THEREFORE, in consideration of the mutual agreements,
representations, warranties and covenants herein contained, the parties hereto
agree as follows:

      1.    Definitions. As used in this Agreement, the following terms shall
have the following respective meanings:

                  (a) "Affiliate" of a party means any corporation or other
      business entity controlled by, controlling or under common control with
      such party. For this purpose "control" shall mean direct or indirect
      beneficial ownership of fifty percent (50%) or more of the voting or
      income interest in such corporation or other business entity.

                  (b) "Agreement" means this Warrant and Common Stock Purchase
      Agreement.

                  (c) Exchange Act" means the Securities Exchange Act of 1934,
      as amended, and all of the rules and regulations promulgated thereunder.

                  (d) "Initial Closing Date" means the date of the first sale
      and purchase of the Warrants and Common Stock acquired hereunder.

                  (e) "Majority Purchasers" shall mean Purchasers which, at any
      given time, hold greater than fifty percent (50%) of the outstanding
      Securities (as defined in Section 2.3 below) that have not been resold
      pursuant to an effective registration statement under the Securities Act
      or Rule 144 under the Securities Act.

                  (f) "Operative Agreements" shall mean the Registration Rights
      Agreement and Warrants together with this Agreement.

                  (g) "Registration Rights Agreement" shall mean that certain
      Registration Rights Agreement, dated as of the date hereof, among the
      Company and the Purchasers.

                  (h) "SEC" shall mean the Securities and Exchange Commission.

                  (i) "Securities Act" shall mean the Securities Act of 1933, as
      amended, and all of the rules and regulations promulgated thereunder.

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      2.    Purchase and Sale of Shares.

            2.1 Purchase and Sale. Subject to and upon the terms and conditions
set forth in this Agreement, the Company agrees to issue and sell to each
Purchaser, and each Purchaser, severally, hereby agrees to purchase from the
Company, at the Initial Closing or any Subsequent Closing (as defined below),
the number of shares of Common Stock set forth opposite the name of such
Purchaser under the heading "Number of Shares to be Purchased" on Exhibit A
hereto, at a purchase price of $1.95 per share. The total purchase price payable
by each Purchaser for the number of shares of Common Stock that such Purchaser
is hereby agreeing to purchase is set forth opposite the name of such Purchaser
under the heading "Purchase Price" on Exhibit A hereto.

            2.2 In addition, subject to the terms and conditions of this
Agreement, each Purchaser agrees, severally, to purchase and the Company agrees
to sell and issue to each Investor, a five-year cashless exercise Warrant in
form and substance attached hereto as Exhibit B to acquire $17,500 of the
Company's Common Stock at an exercise price equal to the thirty (30) trading day
average closing price of the Company's Common Stock on the OTCBB immediately
preceding the Initial Closing Date (the "Exercise Price") for each $50,000 of
Common Stock acquired pursuant to Section 2.1 above (the "Warrant").
Concurrently with payment of the Purchase Price for the Common Stock, each of
the Purchasers shall pay to the Company additional consideration for the
purchase of its Warrant in an amount of no less than the greater of (x) $10.00
or (y) an amount equal to $.001 per share covered under the Warrant,
representing in excess of the par value of the capital stock that is subject to
the Warrant multiplied by the number of shares covered by such Warrant based on
the initial Exercise Price. By way of example, assuming an exercise price of
$1.95 per share, a $100,000 Purchase Price for the Common Stock would result in
a purchase price for the Warrant of $17.95 ($35,000/$1.95 = 17,949 shares x
$0.001).

            2.3 The shares of Common Stock sold to the Purchasers pursuant to
this Agreement are hereinafter referred to as the "SHARES." The Warrants to
purchase Common Stock sold hereunder are hereinafter referred to as the
"WARRANTS." The total amount of Common Stock and other securities issuable upon
conversion of the Warrants are hereinafter referred to as the "CONVERSION
STOCK." The Shares, the Warrants and the Conversion Stock are hereinafter
collectively referred to as the "SECURITIES."

            2.4 Closing. The initial purchase and sale of the Shares and
Warrants shall take place at the offices of Reed Smith, LLP Two Embarcadero,
20th Floor, San Francisco, CA 94111 at 10:00 A.M., effective as of the Effective
Date, or at such other time and place as the Company and the Purchasers
acquiring at the first Closing in the aggregate more than half of such Shares
sold pursuant to Section 2.1 mutually agree upon (which time and place are
designated as the "INITIAL CLOSING"). Within five (5) business days after the
Initial Closing, the Company shall deliver to each Purchaser purchasing Shares
and Warrants at the Initial Closing a certificate representing the Shares and a
corresponding Warrant, registered in the name of such Purchaser, or in such
nominee's or nominees' name(s) as designated by such Purchaser in writing in the
form of the Investor Questionnaire attached hereto as Appendix I, which such
Purchaser is purchasing against delivery to the Company by such Purchaser of a
cashiers check or wire

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transfer in the aggregate amount of the Purchase Price therefor payable to the
Company's order as identified on Exhibit A.

            2.5 At any time on, or before, June 30, 2005 (the "Final Closing
Date"), the Company may sell any amount of additional Shares and Warrants (each
such sale a "Subsequent Closing"). All such sales shall be made substantially on
the terms and conditions set forth in this Agreement. Any shares sold pursuant
to this Section 2.5 shall be deemed to be "Shares" for all purposes under this
Agreement, and any purchasers thereof shall be deemed to be "Purchasers" for all
purposes under this Agreement and shall be deemed to be "Investors" for all
purposes under the Registration Rights Agreement. Should any such sales be made,
the Company shall prepare and distribute to the Purchasers a revised Exhibit A
to this Agreement within ten (10) business days after the Final Closing Date
reflecting such sales. Such Purchasers shall become signatories to this
Agreement and the Registration Rights Agreement

      3.    Representations and Warranties of the Company. Except as otherwise
described in the SEC Documents (as defined below), including any documents
incorporated by reference therein or exhibits attached thereto, the Company
hereby represents and warrants to each of the Purchasers as follows:

            3.1 Incorporation. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and is qualified to do business and is in good standing in each jurisdiction in
which the character of its properties or the nature of its business requires
such qualification, except where the failure to so qualify would not have a
material adverse effect on the business, condition (financial or otherwise) or
prospects of the Company ("Material Adverse Effect"). The Company does not have
any material subsidiaries other than those identified in the SEC Documents (as
defined below). Except for short-term investments and investments that are not
material to the Company, the Company does not own any shares of stock or any
other equity or long-term debt securities of any corporation or have any equity
interest in any firm, partnership, limited liability company, joint venture,
association or other entity. Complete and correct copies of the certificate of
incorporation (the "Certificate of Incorporation") and bylaws (the "Bylaws") of
the Company as in effect on the Effective Date have been filed by the Company
with the SEC. The Company has all requisite corporate power and authority to
carry on its business as now conducted.

            3.2 Capitalization. The authorized capital stock of the Company
consists of (i) 40,000,000 shares of Common Stock, of which 16,799,433 shares
are outstanding on the date hereof. 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 material compliance with all federal and
state securities laws, and were not issued in violation of any preemptive or
similar rights to subscribe for or purchase securities. Except for (i) options
to purchase up to 3,351,255 shares of Common Stock or other equity awards issued
to employees and consultants of the Company pursuant to the employee benefits
plans disclosed in the SEC Documents and (ii) warrants to purchase up to
4,091,398 shares of Common Stock, there are no existing options, warrants,
calls, preemptive (or similar) rights, subscriptions or other rights,
agreements, arrangements or commitments of any character obligating the Company
to issue, transfer or sell, or cause to be issued, transferred or sold, any
shares of the capital stock of the Company or other equity interests in the
Company or any securities convertible into or exchangeable for such

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shares of capital stock or other equity interests, and there are no outstanding
contractual obligations of the Company to repurchase, redeem or otherwise
acquire any shares of its capital stock or other equity interests. Except for
that certain Shareholder Agreement dated September 18, 2003, there are no voting
agreements or other similar arrangements with respect to the Common Stock to
which the Company is a party. The Company has not adopted a stockholder rights
plan or similar arrangement relating to accumulations of beneficial ownership of
Common Stock or a change in control of the Company. The Company does not
maintain any pension benefit plan, or other retirement plan, subject to the
Employee Retirement Income Security Act.

            3.3 Authorization. All corporate action on the part of the Company,
its officers, directors and stockholders necessary for the authorization,
execution, delivery and performance of the Operative Agreements and the
consummation of the transactions contemplated therein has been taken. When
executed and delivered by the Company, each of the Operative Agreements shall
constitute the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such may be limited
by bankruptcy, insolvency, reorganization or other laws affecting creditors'
rights generally and by general equitable principles. The Company has all
requisite corporate power to enter into the Operative Agreements and to carry
out and perform its obligations under the terms of the Operative Agreements.

            3.4 Valid Issuance of the Shares. The Shares being purchased by the
Purchasers hereunder and the Conversion Stock upon exercise of the Warrants
will, upon issuance pursuant to the terms hereof and thereof, be duly authorized
and validly issued, fully paid and nonassessable. No preemptive rights or other
rights to subscribe for or purchase the Company's capital stock exist with
respect to the issuance and sale of the Securities by the Company pursuant to
this Agreement, except for any such right disclosed in the SEC Documents. As of
the Effective Date, no further approval or authority of the stockholders or the
Board of Directors of the Company shall be required for the issuance and sale of
the Securities by the Company, or the filing of the Registration Statement by
the Company, as contemplated in the Operative Agreements.

            3.5 Financial Statements. The Company has furnished to each
Purchaser its audited Statements of Income, Stockholders' Equity and Cash Flows
for the fiscal year ended May 31, 2004, its audited Balance Sheet as of May 31,
2004, its unaudited Statements of Income, Stockholders' Equity and Cash Flows
for the period ended November 30, 2004, and its unaudited Balance Sheet as of
November 30, 2004. All such financial statements are hereinafter referred to
collectively as the "Financial Statements." The Financial Statements have been
prepared in accordance with generally accepted accounting principles applied on
a consistent basis during the periods involved, and fairly present, in all
material respects, the financial position of the Company and the results of its
operations as of the date and for the periods indicated thereon, except that the
unaudited financial statements are subject to normal year-end audit adjustments
which, individually, and in the aggregate, will not be material. Since November
30, 2004, to the Company's knowledge, there has been no material adverse change
(actual or threatened) in the assets, liabilities (contingent or other),
affairs, operations, prospects or condition (financial or other) of the Company.

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            3.6 SEC Documents. The Company has made available to each Purchaser,
a true and complete copy of the Company's Annual Report on Form 10-KSB for the
fiscal year ended May 31, 2004, the Company's Quarterly Reports on Form 10-QSB
for the quarterly periods ended August 31,2004, November 30, 2004, February 28,
2005 and any other statement, report, registration statement (other than
registration statements on Form S-8) or definitive proxy statement filed by the
Company with the SEC during the period commencing on June 1, 2004 and ending on
the date hereof. The Company will, promptly upon the filing thereof, also make
available to each Purchaser, including via EDGAR and/or the Company's website,
all statements, reports (including, without limitation, Quarterly Reports on
Form 10-QSB and Current Reports on Form 8-K), registration statements and
definitive proxy statements filed by the Company with the SEC during the period
commencing on the date hereof and ending on the Final Closing Date (all such
materials required to be furnished to each Purchaser pursuant to this sentence
or pursuant to the first sentence of this Section 3.6 being called,
collectively, the "SEC Documents"). The Company has filed all SEC Documents that
the Company was required to file under the Exchange Act during the 12 months
preceding the date of this Agreement. As of their respective filing dates, the
SEC Documents complied or will comply in all material respects with the
requirements of the Exchange Act or the Securities Act, as applicable, and none
of the SEC Documents contained or will contain any untrue statement of a
material fact or omitted or will omit to state a material fact required to be
stated therein or necessary in order to make the statements made therein, in
light of the circumstances under which they were made, not misleading, as of
their respective filing dates, except to the extent corrected by a subsequently
filed SEC Document.

            3.7 Consents. All consents, approvals, orders and authorizations
required on the part of the Company in connection with the execution, delivery
or performance of the Operative Agreements and the consummation of the
transactions contemplated therein have been obtained and will be effective as of
the Closing Date.

            3.8 No Conflict. The execution and delivery the Operative Agreements
by the Company and the consummation of the transactions contemplated thereby
will not conflict with or result in any violation of or default (with or without
notice or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to a loss of a material
benefit under (i) any provision of the Certificate of Incorporation or Bylaws of
the Company, (ii) any material bond, debenture, note or other evidence of
indebtedness, or any material lease, contract, indenture, mortgage, deed of
trust, loan agreement, joint venture, franchise, license or other agreement or
instrument to which the Company is a party or by which it or its property is
bound or (iii) any judgment, order, statute, law, ordinance, rule or
regulations, applicable to the Company or its respective properties or assets.

            3.9 Brokers or Finders. Except as may be disclosed to each
Purchaser, the Company has not dealt with any broker or finder in connection
with the transactions contemplated by this Agreement or incurred any liability
for any brokerage or finders' fees or agents commissions or any similar charges
in connection with this Agreement or any transaction contemplated hereby.

            3.10 Nasdaq Stock Market. The Common Stock is registered pursuant to
Section 12(g) of the Exchange Act and is quoted on the Nasdaq Stock Market
Over-the-Counter

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Bulletin Board ("OTCBB") under the ticker symbol "PRTX.OB." The Company has
taken no action designed to remove, or which, to the Company's knowledge, is
likely to have the effect of, suspending or terminating the quotation of the
Common Stock on the OTCBB. The Company shall comply with all requirements, if
any, of the National Association of Securities Dealers, Inc. (the "NASD") with
respect to the issuance of the Shares and Conversion Stock and the quoting of
the Shares and Conversion Stock (when issued) on the OTCBB.

            3.11 Absence of Litigation. There is no action, suit or proceeding
or, to the Company's knowledge, any investigation, pending, or to the Company's
knowledge, threatened by or before any court, governmental body or regulatory
agency against the Company that is required to be disclosed in the SEC Documents
and is not so disclosed. The Company has not received any written or oral
notification of, or request for information in connection with, any formal or
informal inquiry, investigation or proceeding from the SEC or the NASD. The
foregoing includes, without limitation, any such action, suit, proceeding or
investigation that questions this Agreement or the Registration Rights Agreement
or the right of the Company to execute, deliver and perform under same.

            3.12 Intellectual Property.

            (a) To the knowledge of the Company, the Company has ownership of or
license or legal right to use all patents, copyrights, trade secrets,
trademarks, domain names, customer lists, designs, manufacturing or other
processes, computer software, systems, data compilations, research results and
other intellectual property or proprietary rights (collectively, "Intellectual
Property") used in the business of the Company and material to the Company. The
Company knows of no reason why its patent applications do not or would not
comply with any statutory or legal requirements or would not issue into valid
and enforceable patents.

            (b) To the Company's knowledge, there is no material default by the
Company under any material licenses or other material agreements under which (i)
the Company is granted rights in Intellectual Property or (ii) the Company has
granted rights to others in Intellectual Property owned or licensed by the
Company. There are no outstanding or threatened claims, disputes or
disagreements with respect to any such licenses or agreements.

            (c) To the knowledge of the Company, the present business,
activities and products of the Company do not infringe or misappropriate any
Intellectual Property of any third party. The Company has not been notified that
any proceeding charging the Company with infringement or misappropriation of any
Intellectual Property held by any third party has been filed. To the Company's
knowledge, there exists no patent held by any third party which includes claims
that would be infringed by the Company in the conduct of its business as
currently where such infringement would have a Material Adverse Effect. To the
knowledge of the Company, the Company is not making unauthorized use of any
confidential information or trade secrets of any third party. 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 restricting
the Company's or any such employee's engagement in business activities that are
material aspects of the Company's business as currently conducted.

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            (d) None of the Intellectual Property owned or, to the Company's
knowledge, licensed by the Company that is used in the business of the Company
and material to the Company is subject to any outstanding judgment or order, and
no action, suit, proceeding, hearing, investigation, charge, complaint, claim or
demand is pending or, to the knowledge of the Company, threatened, which
challenges the validity, enforceability, scope, use, or ownership of, or
otherwise relates to, any such Intellectual Property anywhere in the world. No
Patent has been or is now involved in any interference, reissue, reexamination,
opposition, or other proceeding.

            (e) Each employee of the Company has executed a confidential
information and invention assignment agreement in the form made available to
Purchasers. No such employee has excluded works or inventions made prior to his
or her employment with the Company from his or her assignment of inventions
pursuant to such employee's confidential information and invention assignment
agreement, which works or inventions are necessary to the business of the
Company as it is proposed to be conducted. Each consultant to the Company has
entered into an agreement containing appropriate confidentiality and invention
assignment provisions, in the form acceptable to Purchasers. The Company does
not believe it is or will be necessary to utilize any inventions, trade secrets
or proprietary information of any of its employees made prior to their
employment by the Company, except for inventions, trade secrets or proprietary
information that have been assigned to the Company.

            3.13 Offering. The Company has not in the past nor will it hereafter
take any action to sell, offer for sale or solicit offers to buy any securities
of the Company which would require the offer, issuance or sale of the
Securities, as contemplated by this Agreement, to be registered under Section 5
of the Securities Act.

            3.14 Investment Company. The Company is not an "investment company"
or an "affiliated person" of, or "promoter" or "principal underwriter" for an
investment company, within the meaning of the Investment Company Act of 1940, as
amended.

            3.15 No Manipulation of Stock. The Company has not taken and will
not, in violation of applicable law, take, any action designed to or that might
reasonably be expected to cause or result in unlawful manipulation of the price
of the Common Stock.

            3.16 No Violations. The Company is not in violation of its
Certificate of Incorporation, Bylaws or other organizational documents, 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, which violation, individually or in the aggregate, would be reasonably
expected to have a Material Adverse Effect, or is not in default (and there
exists no condition which, with the passage of time or otherwise, would
constitute a default) in the performance of any material 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 is a party or
by which the Company is bound or by which the property of the Company is bound,
which would be reasonably expected to have a Material Adverse Effect.

            3.17 Accountants. Grant Thornton, LLP, who issued their report with
respect to the financial statements to be incorporated by reference from the
Company's Annual Report on Form 10-KSB for the year ended May 31, 2004 into the
Registration Statement and the

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prospectus which forms a part thereof, are an independent registered public
accounting firm as required by the Securities Act.

            3.18 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.

            3.19 Title. The Company has good and marketable title to all real
property and good and marketable title to all personal property owned by it
which is material to the business of the Company, in each case free and clear of
all encumbrances and defects, except such as do not have a Material Adverse
Effect. Any facilities and items of equipment held under lease by the Company
are held by it under valid, subsisting and enforceable leases with such
exceptions as are not material and do not interfere with the use made and
proposed to be made of such facilities and items of equipment by the Company.
The Company is in compliance with all material terms of each lease to which it
is a party or is otherwise bound.

            3.20 Foreign Corrupt Practices. To the knowledge of the Company,
neither the Company, nor any director, officer, agent, employee or other person
acting on behalf of the Company, has in the course of its actions for, or on
behalf of, the Company, used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity;
made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds; violated or is in
violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as
amended; or made any unlawful bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to any foreign or domestic government official or
employee.

      4.    Representations and Warranties of the Purchasers. Each Purchaser
severally for itself, and not jointly with the other Purchasers, represents and
warrants to the Company as follows:

            4.1 Authorization. All action on the part of such Purchaser and, if
applicable, its officers, directors and shareholders necessary for the
authorization, execution, delivery and performance of the Operative Agreements
and the consummation of the transactions contemplated therein has been taken.
When executed and delivered by the Company and such Purchaser, each of the
Operative Agreements will constitute the legal, valid and binding obligation of
such Purchaser, enforceable against such Purchaser in accordance with its terms,
except as such may be limited by bankruptcy, insolvency, reorganization or other
laws affecting creditors' rights generally and by general equitable principles.
Such Purchaser has all requisite power to enter into each of the Operative
Agreements and to carry out and perform its obligations under the terms of the
Operative Agreements. Such Purchaser has the knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of an investment in the Securities and has the ability to bear the
economic risks of an investment in the Securities for an indefinite period of
time. Furthermore, the Purchaser acknowledges that the Company has made no
representations or warranties except as set for in this Agreement or the
Registration Rights Agreement.

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            4.2 Purchase Entirely for Own Account. Such Purchaser is acquiring
the Securities being purchased by it hereunder for investment, for its own
account, and not for resale or with a view to distribution thereof in violation
of the Securities Act. Such Purchaser has not entered into an agreement or
understanding with any other party to resell or distribute such Securities.

            4.3 Investor Status; Etc. Such Purchaser certifies and represents to
the Company that it is an "Accredited Investor" as defined in Rule 501 of
Regulation D promulgated under the Securities Act and was not organized for the
purpose of acquiring the Securities. Such Purchaser's financial condition is
such that it is able to bear the risk of holding the Securities for an
indefinite period of time and the risk of loss of its entire investment. Such
Purchaser has received, reviewed and considered all information it deems
necessary in making an informed decision to make an investment in the Securities
and has been afforded the opportunity to ask questions of and receive answers
from the management of the Company concerning this investment and has sufficient
knowledge and experience in investing in companies similar to the Company in
terms of the Company's stage of development so as to be able to evaluate the
risks and merits of its investment in the Company.

            4.4 Confidential Information. Each Purchaser understands that any
information, other than the SEC Documents, provided to such Purchaser by the
Company, including, without limitation, the existence and nature of all
discussions and presentations, if any, regarding this offering and the Operative
Agreements, is strictly confidential and proprietary to the Company and is being
submitted to the Purchaser solely for such Purchaser's confidential use in
connection with its investment decision regarding the Securities. Such Purchaser
agrees to use such information for the sole purpose of evaluating a possible
investment in the Securities and such Purchaser hereby acknowledges that it is
prohibited from reproducing or distributing such information, the Operative
Agreements, or any other offering materials, in whole or in part, or divulging
or discussing any of their contents except for use internally and by its legal
counsel and except as required by law or legal process. Such Purchaser
understands that the federal securities laws prohibit any person who possesses
material nonpublic information about a company from trading in securities of
such company.

            4.5 Securities Not Registered. Such Purchaser understands that the
Securities have not been registered under the Securities Act, by reason of their
issuance by the Company in a transaction exempt from the registration
requirements of the Securities Act, and that the Securities must continue to be
held by such Purchaser unless a subsequent disposition thereof is registered
under the Securities Act or is exempt from such registration. The Purchaser
understands that the exemptions from registration afforded by Rule 144 (the
provisions of which are known to it) promulgated under the Securities Act depend
on the satisfaction of various conditions, and that, if applicable, Rule 144 may
afford the basis for sales only in limited amounts.

            4.6 No Conflict. The execution and delivery of the Operative
Agreements by such Purchaser and the consummation of the transactions
contemplated thereby will not conflict with or result in any violation of or
default by such Purchaser (with or without notice or lapse of time, or both)
under, or give rise to a right of termination, cancellation or acceleration of
any obligation or to a loss of a material benefit under (i) any provision of the
organizational

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documents of such Purchaser, (ii) any material agreement or instrument, permit,
franchise, or license or (iii) any judgment, order, statute, law, ordinance,
rule or regulations, applicable to such Purchaser or its respective properties
or assets.

            4.7 Brokers. Such Purchaser has not retained, utilized or been
represented by any broker or finder in connection with the transactions
contemplated by this Agreement.

            4.8 Consents. All consents, approvals, orders and authorizations
required on the part of such Purchaser in connection with the execution,
delivery or performance of this Agreement and the consummation of the
transactions contemplated herein have been obtained and are effective as of the
Closing Date.

            4.9 No Intent to Effect a Change of Control. Such Purchaser has no
present intent to change or influence the control of the Company within the
meaning of Rule 13d-1 of the Exchange Act.

      5.    Conditions Precedent.

            5.1 Conditions to the Obligation of the Purchasers to Consummate the
Closing. The obligation of each Purchaser to consummate the Closing and to
purchase and pay for the Securities being purchased by it pursuant to this
Agreement is subject to the satisfaction of the following conditions precedent:

            (a) The representations and warranties of the Company contained
herein shall be true and correct on and as of the Initial Closing Date with the
same force and effect as though made on and as of the Initial Closing Date (it
being understood and agreed by each Purchaser that, in the case of any
representation and warranty of the Company contained herein which is not
hereinabove qualified by application thereto of a materiality standard, such
representation and warranty need be true and correct only in all material
respects in order to satisfy as to such representation or warranty the condition
precedent set forth in the foregoing provisions of this Section 5.1(a)).

            (b) The Registration Rights Agreement and respective Warrant shall
have been executed and delivered by the Company.

            (c) The Company shall not have been adversely affected in any
material way prior to the Initial Closing Date; and the Company shall have
performed all obligations and conditions herein required to be performed or
observed by the Company on or prior to the Initial Closing Date.

            (d) No proceeding challenging this Agreement or the transactions
contemplated hereby, or seeking to prohibit, alter, prevent or materially delay
the Initial Closing, shall have been instituted before any court, arbitrator or
governmental body, agency or official and shall be pending.

            (e) The purchase of and payment for the Securities by the Purchasers
shall not be prohibited by any law or governmental order or regulation. All
necessary consents, approvals, licenses, permits, orders and authorizations of,
or registrations, declarations and

                                      -10-
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filings with, any governmental or administrative agency or of any other person
with respect to any of the transactions contemplated hereby shall have been duly
obtained or made and shall be in full force and effect.

            (f) All instruments and corporate proceedings in connection with the
transactions contemplated by this Agreement to be consummated at the Initial
Closing shall be satisfactory in form and substance to such Purchaser. Such
Purchaser shall have received such certificates of the Company's officers as
such Purchaser may have reasonably requested in connection with such
transactions.

            5.2 Conditions to the Obligation of the Company to Consummate the
Closing. The obligation of the Company to consummate the Initial Closing and
each Subsequent Closing and to issue and sell to each of the Purchasers the
Securities to be purchased by it at the applicable Closing is subject to the
satisfaction of the following conditions precedent:

            (a) The representations and warranties contained herein of such
Purchaser shall be true and correct on and as of the applicable Closing Date
with the same force and effect as though made on and as of such Closing Date (it
being understood and agreed by the Company that, in the case of any
representation and warranty of each Purchaser contained herein which is not
hereinabove qualified by application thereto of a materiality standard, such
representation and warranty need be true and correct only in all material
respects in order to satisfy as to such representation or warranty the condition
precedent set forth in the foregoing provisions of this Section 5.2(a)).

            (b) The Registration Rights Agreement and respective Warrant shall
have been executed and delivered by each Purchaser.

            (c) Each Purchaser shall have performed all obligations and
conditions herein required to be performed or observed by such Purchaser on or
prior to the applicable Closing Date.

            (d) No proceeding challenging this Agreement or the transactions
contemplated hereby, or seeking to prohibit, alter, prevent or materially delay
the Initial Closing, shall have been instituted before any court, arbitrator or
governmental body, agency or official and shall be pending.

            (e) The sale of the Securities by the Company shall not be
prohibited by any law or governmental order or regulation. All necessary
consents, approvals, licenses, permits, orders and authorizations of, or
registrations, declarations and filings with, any governmental or administrative
agency or of any other person with respect to any of the transactions
contemplated hereby shall have been duly obtained or made and shall be in full
force and effect.

            (f) Each such Purchaser shall have executed and delivered to the
Company an Investor Questionnaire, in the form attached hereto as Appendix I,
pursuant to which such Purchaser shall provide information necessary to confirm
each such Purchaser's status as an "accredited investor" (as such term is
defined in Rule 501 promulgated under the Securities Act) and to enable the
Company to comply with the Registration Rights Agreement.

                                      -11-
<PAGE>

            (g) All instruments and corporate proceedings in connection with the
transactions contemplated by this Agreement to be consummated at each Closing
shall be satisfactory in form and substance to the Company, and the Company
shall have received counterpart originals, or certified or other copies of all
documents, including without limitation records of corporate or other
proceedings, which it may have reasonably requested in connection therewith.

      6.    Transfer, Legends.

            6.1 Securities Law Transfer Restrictions.

            (a) Each Purchaser understands that, except as provided in the
Registration Rights Agreement, the Securities have not been registered under the
Securities Act or any state securities laws, and each purchaser agrees that it
will not sell, offer to sell, solicit offers to buy, dispose of, loan, pledge or
grant any right with respect to (collectively, a "Disposition"), the Securities
nor will such Purchaser engage in any hedging or other transaction which is
designed to or could be reasonably expected to lead to or result in a
Disposition of Securities by such Purchaser or any other person or entity unless
(a) the Securities are registered under the Securities Act, or (b) such
Purchaser shall have delivered to the Company an opinion of counsel in form,
substance and scope reasonably acceptable to the Company, to the effect that
registration is not required under the Securities Act or any applicable state
securities law due to the applicability of an exemption therefrom. In that
connection, such Purchaser is aware of Rule 144 under the Securities Act and the
restrictions imposed thereby. Such Purchaser acknowledges and agrees that no
sales of the Securities may be made under the Registration Statement and that
the Securities are not transferable on the books of the Company unless the
certificate submitted to the transfer agent evidencing the Securities is
accompanied by a separate Purchaser's Certificate of Subsequent Sale: (i) in the
form of Exhibit B hereto; (ii) executed by an officer of, or other authorized
person designated by, the Purchaser; and (iii) to the effect that (A) the
Securities have been sold in accordance with the Registration Statement, the
Securities Act and any applicable state securities or blue sky laws, and (B) the
requirement of delivering a current prospectus has been satisfied. Such
prohibited hedging or other transactions would include, without limitation,
effecting any short sale or having in effect any short position (whether or not
such sale or position is against the box and regardless of when such position
was entered into) or any purchase, sale or grant of any right (including,
without limitation, any put or call option) with respect to the Securities or
with respect to any security (other than a broad-based market basket or index)
that includes, relates to or derives any significant part of its value from the
Common Stock of the Company.

            (b) Each Purchaser acknowledges 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 Securities, in any jurisdiction
outside of the United States where action for that purpose is required. Each
Purchaser 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.

                                      -12-
<PAGE>

            (c) Each Purchaser hereby covenants with the Company not to make any
sale of the Securities without complying with the provisions of the Operative
Agreements and with all applicable securities laws and regulations, and such
Purchaser acknowledges that the certificates evidencing the Securities will be
imprinted with a legend that prohibits their transference except in accordance
therewith. Each Purchaser acknowledges that there may occasionally be times when
the Company, based on the advice of its counsel, determines that it must suspend
the Registration Statement, until such time as an amendment to the Registration
Statement has been filed by the Company and declared effective by the Commission
or until the Company has amended or supplemented such Prospectus.

            6.2 Legends. Each certificate requesting any of the Securities shall
be endorsed with the legends set forth below, and each Purchaser covenants that,
except to the extent such restrictions are waived by the Company, it shall not
transfer the securities represented by any such certificate without complying
with the restrictions on transfer described in this Agreement and the legends
endorsed on such certificate:

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED,
            SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE
            ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR
            PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SAID ACT
            AND, IF REQUESTED BY THE COMPANY, UPON DELIVERY OF AN OPINION OF
            COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED
            TRANSFER IS EXEMPT FROM SAID ACT.".

      7.    Termination; Liabilities Consequent Thereon. This Agreement may be
terminated and the transactions contemplated hereunder abandoned at any time
prior to the Initial Closing or Subsequent Closing, as applicable, only as
follows:

            (a) at any time by mutual agreement of the Company and the Majority
Purchasers; or

            (b) by the Majority Purchasers, if there has been any breach of any
representation or warranty or any material breach of any covenant of the Company
contained herein and the same has not been cured within 15 days after notice
thereof (it being understood and agreed by each Purchaser that, in the case of
any representation or warranty of the Company contained herein which is not
hereinabove qualified by application thereto of a materiality standard, such
representation or warranty will be deemed to have been breached for purposes of
this Section 7.1(b) only if such representation or warranty was not true and
correct in all material respects at the time such representation or warranty was
made by the Company); or

            (c) by the Company, if there has been any breach of any
representation, warranty or any material breach of any covenant of any Purchaser
contained herein and the same has not been cured within 15 days after notice
thereof (it being understood and agreed by the Company that, in the case of any
representation and warranty of the Purchaser contained herein

                                      -13-
<PAGE>

which is not hereinabove qualified by application thereto of a materiality
standard, such representation or warranty will be deemed to have been breached
for purposes of this Section 7.1(c) only if such representation or warranty was
not true and correct in all material respects at the time such representation or
warranty was made by such Purchaser).

      Any termination pursuant to this Section 7 shall be without liability on
the part of any party, unless such termination is the result of a material
breach of this Agreement by a party to this Agreement in which case such
breaching party shall remain liable for such breach notwithstanding any
termination of this Agreement.

      8.    Miscellaneous Provisions.

            8.1 Public Statements or Releases. None of the parties to this
Agreement shall make, issue, or release any announcement, whether to the public
generally, or to any of its suppliers or customers, with respect to this
Agreement or the transactions provided for herein, or make any statement or
acknowledgment of the existence of, or reveal the status of, this Agreement or
the transactions provided for herein, without the prior consent of the other
parties, which shall not be unreasonably withheld or delayed, provided, that
nothing in this Section 8.1 shall prevent any of the parties hereto from making
such public announcements as it may consider necessary in order to satisfy its
legal obligations, but to the extent not inconsistent with such obligations, it
shall provide the other parties with an opportunity to review and comment on any
proposed public announcement before it is made.

            8.2 Further Assurances. Each party agrees to cooperate fully with
the other party and to execute such further instruments, documents and
agreements and to give such further written assurances, as may be reasonably
requested by the other party to better evidence and reflect the transactions
described herein and contemplated hereby, and to carry into effect the intents
and purposes of this Agreement.

            8.3 Rights Cumulative. Each and all of the various rights, powers
and remedies of the parties shall be considered to be cumulative with and in
addition to any other rights, powers and remedies which such parties may have at
law or in equity in the event of the breach of any of the terms of this
Agreement. The exercise or partial exercise of any right, power or remedy shall
neither constitute the exclusive election thereof nor the waiver of any other
right, power or remedy available to such party.

            8.4 Pronouns. All pronouns or any variation thereof shall be deemed
to refer to the masculine, feminine or neuter, singular or plural, as the
identity of the person, persons, entity or entities may require.

            8.5 Notices. Any notices, reports or other correspondence
(hereinafter collectively referred to as "correspondence") required or permitted
to be given hereunder shall be in writing and shall be sent by postage prepaid
first class mail, courier or telecopy or delivered by hand to the party to whom
such correspondence is required or permitted to be given hereunder, and shall be
deemed sufficient upon receipt when delivered personally or by courier,
overnight delivery service or confirmed facsimile, or three (3) business days
after being deposited in the regular mail as certified or registered mail
(airmail if sent internationally) with

                                      -14-
<PAGE>

postage prepaid, if such notice is addressed to the party to be notified at such
party's address or facsimile number as set forth below:

            (a)   All correspondence to the Company shall be addressed as
                  follows:

                  Protalex, Inc.
                  145 Union Square Drive,
                  New Hope, PA 18938
                  Attention: Marc L. Rose
                  Facsimile: (215) 862-6614

                  with a copy to:

                  Reed Smith LLP
                  Two Embarcadero Center, Suite 2000
                  San Francisco, CA 94111
                  Attention: Donald C. Reinke, Esq.

                  Facsimile: (415) 391.8269

            (b) All correspondence to any Purchaser shall be sent to such
Purchaser at the address set forth in Exhibit A.

            (c) Any entity may change the address to which correspondence to it
is to be addressed by written notification as provided for herein.

            8.6 Captions. The captions and paragraph headings of this Agreement
are solely for the convenience of reference and shall not affect its
interpretation.

            8.7 Severability. Should any part or provision of this Agreement be
held unenforceable or in conflict with the applicable laws or regulations of any
jurisdiction, the invalid or unenforceable part or provisions shall be replaced
with a provision which accomplishes, to the extent possible, the original
business purpose of such part or provision in a valid and enforceable manner,
and the remainder of this Agreement shall remain binding upon the parties
hereto.

            8.8 Governing Law; Injunctive Relief.

            (a) This Agreement shall be governed by and construed in accordance
with the internal and substantive laws of the State of Delaware and without
regard to any conflicts of laws concepts which would apply the substantive law
of some other jurisdiction. Venue for all purposes hereunder shall be in the
applicable state or federal court located within the State of Delaware.

            (b) Each of the parties hereto acknowledges and agrees that damages
will not be an adequate remedy for any material breach or violation of this
Agreement if such material breach or violation would cause immediate and
irreparable harm (an "Irreparable Breach"). Accordingly, in the event of a
threatened or ongoing Irreparable Breach, each party hereto shall

                                      -15-
<PAGE>

be entitled to seek, equitable relief of a kind appropriate in light of the
nature of the ongoing or threatened Irreparable Breach, which relief may
include, without limitation, specific performance or injunctive relief;
provided, however, that if the party bringing such action is unsuccessful in
obtaining the relief sought, the moving party shall pay the non-moving party's
reasonable costs, including attorney's fees, incurred in connection with
defending such action. Such remedies shall not be the parties' exclusive
remedies, but shall be in addition to all other remedies provided in this
Agreement.

            8.9 Amendments. This Agreement may be amended or modified only
pursuant to an instrument in writing signed by the Company and the Majority
Purchasers.

            8.10 Exculpation. Each Purchaser acknowledges that it is not relying
upon any person, entity or corporation, other than the Company and its officers
and directors, in making its investment or decision to invest in the Company.
The obligations of each Purchaser hereunder are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any
way for the performance of the obligations of any other Purchaser hereunder.
Nothing contained herein, and no action taken by any Purchaser pursuant hereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated hereunder. Each Purchaser shall be
entitled to independently protect and enforce its rights hereunder, and it shall
not be necessary for any other Purchaser to be joined as an additional party in
any proceeding for such purpose. Each Purchaser has been represented by its own
separate legal counsel in their review and negotiation of this Agreement. The
Company has elected to provide all Purchasers with the same terms and forms of
Operative Agreements for the convenience of the Company and not because it was
required or requested to do so by the Purchasers.

            8.11 Waiver. No waiver of any term, provision or condition of this
Agreement, whether by conduct or otherwise, in any one or more instances, shall
be deemed to be, or be construed as, a further or continuing waiver of any such
term, provision or condition or as a waiver of any other term, provision or
condition of this Agreement.

            8.12 Expenses. Each party will bear its own costs and expenses in
connection with this Agreement.

            8.13 Assignment. The rights and obligations of the parties hereto
shall inure to the benefit of and shall be binding upon the authorized
successors and permitted assigns of each party. Neither party may assign its
rights or obligations under this Agreement or designate another person (i) to
perform all or part of its obligations under this Agreement or (ii) to have all
or part of its rights and benefits under this Agreement, in each case without
the prior written consent of the other party, provided, however, that a
Purchaser may assign its rights hereunder with respect to any Securities
transferred to a "Qualified Holder" pursuant to and in compliance with Section
13 of the Registration Rights Agreement, and may designate such Qualified Holder
to perform the duties of the Purchaser hereunder with respect to such
transferred Securities; provided further that irrespective of such transfer and
designation the Purchaser shall remain obligated hereunder with respect to all
of such Purchaser's Securities. In the event of any assignment in accordance
with the terms of this Agreement, the assignee shall specifically

                                      -16-
<PAGE>

assume and be bound by the provisions of the Agreement by executing and agreeing
to an assumption agreement reasonably acceptable to the other party.

            8.14 Survival. The respective representations and warranties given
by the parties hereto, and the other covenants and agreements contained herein,
shall survive the Closing Date and the consummation of the transactions
contemplated herein for a period of two years, without regard to any
investigation made by any party.

            8.15 Counterpart. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

            8.16 Entire Agreement. This Agreement, the Warrants and the
Registration Rights Agreement constitute the entire agreement between the
parties hereto respecting the subject matter hereof and supersede all prior
agreements, negotiations, understandings, representations and statements
respecting the subject matter hereof, whether written or oral. No modification,
alteration, waiver or change in any of the terms of this Agreement shall be
valid or binding upon the parties hereto unless made in writing and duly
executed by the Company and the Majority Purchasers.

                           [Signature Page to Follow]

                                      -17-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Warrant and
Common Stock Purchase Agreement as of the day and year first above written.

                                 PROTALEX, INC.

                                 By: /s/ Steven Kane
                                     -------------------------------------------
                                 Name: Steven Kane
                                 Title: President and Chief Executive Officer

THE PURCHASER'S SIGNATURE TO THE INVESTOR QUESTIONNAIRE DATED AS OF THE
APPLICABLE CLOSING SHALL CONSTITUTE THE PURCHASER'S SIGNATURE TO THIS WARRANT
AND COMMON STOCK PURCHASE AGREEMENT.

                                      -18-<PAGE>

                                                                     EXHIBIT 4.6

                          REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement ("AGREEMENT") is entered into as of May
25, 2005 by and among Protalex, Inc., a Delaware corporation (the "COMPANY") and
vSpring SBIC, L.P. ("VSPRING") and certain of the investors set forth on
Schedule I hereto (collectively, with vSpring, the "INVESTORS") with reference
to the following facts:

      WHEREAS, the Investors and the Company have entered into a Warrant and
Common Stock Purchase Agreement (the "PURCHASE AGREEMENT") of even date with
this Agreement; and

      WHEREAS, to induce the Investors to enter into the Purchase Agreement, the
Company has agreed to grant certain rights to the Investors as reflected in this
Agreement.

      NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows:

      1. Certain Definitions. As used in this Agreement, the following terms
shall have the following respective meanings. All terms not otherwise defined in
this Agreement shall have the meaning set forth in the Purchase Agreement.

            1.1 "AFFILIATE" means, with respect to any Person, any other Person
that directly, or indirectly through one or more intermediaries, controls, is
controlled by or is under common control with, such specified Person, for so
long as such Person remains so associated to the specified Person.

            1.2 "COMMISSION" shall mean the Securities and Exchange Commission
or any other federal agency at the time administering the Securities Act.

            1.3 "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
as amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

            1.4 "HOLDER" shall mean the Investors holding Registrable Securities
or securities exercisable into Registrable Securities and any Person holding
such securities to whom rights under this Agreement have been transferred in
accordance with Section 3.10 hereof.

            1.5 "LIQUIDITY DATE" shall mean the earlier to occur of (i) the
closing of a firmly underwritten public offering of not less than Twenty-Five
Million Dollars ($25,000,000) gross proceeds to the Company at a public offering
price per share of at least Six Dollars and Fifty Cents ($6.50) and with respect
to which the lead underwriters are nationally recognized leaders in the
investment banking industry for the biotechnology industry, or (ii) the date on
which (a) the Company's common stock is traded on the NASDAQ National Market,
the NASDAQ Stock Market,

<PAGE>

or the American Stock Exchange, and (b) the average daily trading volume for the
common stock for the preceding six-month period shall be at least one hundred
fifty thousand (150,000) shares.

            1.6 "PERSON" means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
governmental authority or other legal entity.

            1.7 "REGISTRABLE SECURITIES" means (1) the Shares and the Warrant
Shares and (2) any Common Stock of the Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued
as) a dividend or other distribution with respect to, or in exchange for or in
replacement of, the Shares or Warrant Shares, excluding in all cases, however,
(i) any Registrable Securities sold by a Person in a transaction in which such
Person's rights under this Agreement are not assigned, or (ii) any Registrable
Securities sold through a broker or dealer or underwriter in a public
distribution or a public securities transaction pursuant to Rule 144(k).

            1.8 The terms "REGISTER," "REGISTERED" and "REGISTRATION" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

            1.9 "REGISTRATION EXPENSES" shall mean all expenses, except Selling
Expenses as defined below, incurred by the Company in complying with Sections
3.1, 3.2 and 3.3 hereof, including, without limitation, all registration,
qualification and filing fees, printing expenses, escrow fees, fees and
disbursements of counsel for the Company, the fees and disbursements of one
special counsel to the Holders, not to exceed Twenty Thousand Dollars ($20,000)
(which shall be in addition to the Company's obligation to reimburse vSpring in
connection with the negotiation of the Operative Agreements (as defined in the
Purchase Agreement) pursuant to Section 5.8 of this Agreement) blue sky fees and
expenses, the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the Company
which shall be paid in any event by the Company).

            1.10 "RESTRICTED SECURITIES" shall mean the securities of the
Company required to bear the legend set forth in Section 2.2 hereof.

            1.11 "REGISTRATION STATEMENT" shall mean a registration statement of
the Company, on Form S-3, or if the Company is ineligible to use Form S-3, on
Form SB-2 (or successor forms) filed by the Company with the Commission pursuant
to this Agreement permitting registration of the Registrable Securities for
resale by the respective Holders thereof.

            1.12 "RULE 144" shall mean Rule 144 adopted by the Commission under
the Securities Act.

            1.13 "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

                                       -2-
<PAGE>

            1.14 "SELLING EXPENSES" shall mean all underwriting discounts,
selling commissions and stock transfer taxes, if any, applicable to the
securities registered by the Holders.

            1.15 "WARRANT SHARES" shall mean shares of the Company's Common
Stock issued or issuable upon exercise of the Warrants (as defined in the
Purchase Agreement).

      2. Transferability.

            2.1 Restrictions on Transferability. The Registrable Securities
shall not be sold, assigned, transferred or pledged except upon the conditions
specified in this Section 2, which conditions are intended to ensure compliance
with the provisions of the Securities Act. The Investors will cause any proposed
purchaser, assignee, transferee, or pledgee of the Registrable Securities held
by the Investors to agree to take and hold such securities subject to the
provisions and upon the conditions specified in this Section 2.

            2.2 Restrictive Legend. Each certificate representing (i) the
Registrable Securities and (ii) any other securities issued in respect of the
Registrable Securities upon any stock split, stock dividend, recapitalization,
merger, consolidation or similar event, shall (unless otherwise permitted by the
provisions of Section 2.3 below) be stamped or otherwise imprinted with the
legend set forth below.

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED, SOLD, ASSIGNED,
      PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM REGISTRATION UNDER SAID ACT AND, IF REQUESTED BY
      THE COMPANY, UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER IS EXEMPT FROM SAID
      ACT."

      "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO (1)
      RESTRICTIONS ON TRANSFERABILITY AND RESALE AND (2) VOTING RESTRICTIONS AS
      SET FORTH IN A SHAREHOLDERS AGREEMENT AMONG THE COMPANY AND THE ORIGINAL
      HOLDERS OF THESE SHARES A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL
      OFFICE OF THE COMPANY."

      The Investors and Holders consent to the Company making a notation on its
records and giving instructions to any transfer agent of the Registrable
Securities in order to implement the restrictions on transfer established in
this Section 2.

            2.3 Notice of Proposed Transfers. The Holder of each certificate
representing Restricted Securities, by acceptance thereof, agrees to comply in
all respects with the provisions of this Section 2.3. Prior to any proposed
sale, assignment, transfer or pledge of any Restricted Securities (other than
(i) a transfer not involving a change in beneficial ownership, (ii) in

                                       -3-
<PAGE>

transactions involving the distribution without consideration of Restricted
Securities by an Investor to any of its partners, or retired partners, or to the
estate of any of its partners or retired partners, or the transfer by gift, will
or intestate succession of any partner to his or her spouse or to the siblings,
lineal descendants or ancestors of such partner or his or her spouse, (iii) a
transfer to an affiliated fund, partnership or company, which is not a
competitor of the Company, subject to compliance with applicable securities
laws, or (iv) transfers in compliance with Rule 144, so long as the Company is
furnished with satisfactory evidence of compliance with such Rule), unless there
is in effect a registration statement under the Securities Act covering the
proposed transfer, the Holder thereof shall give written notice to the Company
of such Holder's intention to effect such transfer, sale, assignment or pledge.
Each such notice shall describe the manner and circumstances of the proposed
transfer, sale, assignment or pledge in sufficient detail, and if reasonably
requested by the Company, such Holder shall have furnished at such Holder's
expense, either (i) a written opinion of legal counsel who shall be, and whose
legal opinion shall be, reasonably satisfactory to the Company, addressed to the
Company, to the effect that the proposed transfer of the Restricted Securities
may be effected without registration under the Securities Act, or (ii) a "no
action" letter from the Commission to the effect that the transfer of such
securities without registration will not result in a recommendation by the staff
of the Commission that action be taken with respect thereto, whereupon the
Holder of such Restricted Securities shall be entitled to transfer such
Restricted Securities in accordance with the terms of the notice delivered by
the Holder to the Company. Each certificate evidencing the Restricted Securities
transferred as above provided shall bear, except if such transfer is made
pursuant to Rule 144, the appropriate restrictive legend specified in Section
2.2 above, except that such certificate shall not bear such restrictive legend
if in the opinion of counsel for such Holder and in the reasonable opinion of
the Company such legend is not required in order to establish compliance with
any provision of the Securities Act.

      3. Registration Rights.

            3.1 Required Registration. The Company shall file with the
Commission and any applicable state securities authorities within fifteen (15)
business days following the Final Closing Date (the "FILING DATE"), and use its
best efforts to cause to be declared effective by the Commission within one
hundred twenty (120) business days following the Initial Closing Date (the
"EFFECTIVE DATE"), a Registration Statement in order to register the Registrable
Securities for resale and distribution under the Securities Act. The
Registration Statement shall contain substantially the Plan of Distribution
attached hereto as Exhibit A. The Registration Statement must be declared
effective by the Commission not later than the Effective Date. The Company shall
maintain the effectiveness of the Registration Statement until such time as all
remaining Registrable Securities held by the Holders may be sold without
restriction under Rule 144(k) (or successor rule) (the "EFFECTIVENESS PERIOD").

                  If the Registration Statement is not filed with the Commission
on or before the Filing Date (a "FILING DEFAULT"), the Company shall pay
liquidated damages to each Holder, from and including the day that the day
following such Filing Default until the date that the Registration Statement is
filed with the Commission, at a rate per month (or portion thereof) equal to
0.67% of

                                       -4-
<PAGE>

the total purchase price of the Shares purchased by such Holder pursuant to the
Purchase Agreement (the "DEFAULT RATE").

                  If the Registration Statement is not declared effective by the
Commission on or before the Effective Date (a "REGISTRATION DEFAULT"), the
Company shall pay liquidated damages to each Holder, from and including the day
following such Registration Default until the earlier of (i) the time that the
Registration Statement is declared effective by the Commission, or (ii) the time
that the Effectiveness Period expires, at the Default Rate.

                  In the event that the Company exercises its right pursuant to
Section 3.6 to suspend the availability of the Registration Statement for a
period exceeding the maximum number of days specified therein for the applicable
Suspension Period (a "SUSPENSION DEFAULT"), the Company shall pay liquidated
damages to each Holder, from and including the day following such Suspension
Default until such time as the Company delivers the Advice (as defined in
Section 3.6) to the Holders described in Section 3.6, at the Default Rate.

                  In the event that the Registration Statement ceases to be
effective or available for use by the Holders for a period in excess of sixty
(60) days in any single instance or ninety (90) days in the aggregate during any
12-month period (an "EFFECTIVENESS DEFAULT"), the Company shall pay liquidated
damages to each Holder, from and including the day following such Effectiveness
Default until such time as the Registration Statement is again effective and
available for use by the Holders, at the Default Rate.

      The Company's obligation to pay liquidated damages pursuant to this
Section 3.1 shall accrue and be discharged on a monthly basis.

      In no event shall the Company be required to pay liquidated damages in
excess of the applicable maximum amount of 18.0% of the total purchase price of
the Shares purchased by such Holder pursuant to the Purchase Agreement

            3.2 Requested Registration.

                  (a) If the Company shall receive at any time after the second
anniversary of the Closing Date, a written request from the Initiating Holders
that the Company effect any registration with respect to Registrable Securities
representing at least twenty-five percent (25%) of the Registrable Securities
(or any lesser percentage if the anticipated aggregate offering price to the
public, excluding underwriting discounts and commissions, is at least Ten
Million Dollars ($10,000,000)), the Company will:

                        (i) within thirty (30) days of the receipt by the
Company of such notice, give written notice of the proposed registration,
qualification or compliance to all other Holders (which notice shall (i) specify
the amount and intended method of distribution of such Registrable Securities
and (ii) invite such other Holders to join in such requested registration by
requiring that such other holders provide a written request to join in the
registration within twenty (20) days after the receipt of such written notice);
and

                                      -5-
<PAGE>

                        (ii) as soon as practicable, use its commercially
reasonable efforts to effect such registration, qualification or compliance
(including, without limitation, appropriate qualification under applicable blue
sky or other state securities laws and appropriate compliance with applicable
regulations issued under the Securities Act and any other governmental
requirements or regulations) as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Registrable
Securities as are specified in such request, together with all or such portion
of the Registrable Securities of any Holder or Holders joining in such request
as are specified in a written request received by the Company within twenty (20)
days after receipt of such written notice from the Company;

      Provided, however, that the Company shall not be obligated to take any
action to effect any such registration, qualification or compliance pursuant to
this Section 3.2:

                              (1) After the Company has effected three such
registrations pursuant to this Section 3.2(a), and such registrations have been
declared or ordered effective;

                              (2) If the Company shall furnish to such Holders a
certificate signed by the President of the Company stating that the Company has
pending or in process a material transaction or event, the disclosure of which
in the good faith judgment of the Board of Directors, after consultation with
outside securities counsel, materially and adversely affect the Company, then
the Company may postpone the filing (but not the preparation) of a Registration
Statement required by this Section 3.2 for up to ninety (90) days; provided,
however, that the Company shall at all times in good faith use its best efforts
to cause any Registration Statement required by this Section 3.2 to be filed as
soon as possible thereafter; provided, however, that the Company shall not
exercise such right more than once in any twelve-month period.

                  (b) At the time the Registration Statement required pursuant
to this Section 3.2 is declared effective, the Holders shall be named as selling
securityholders in the Registration Statement and any related prospectus in such
a manner as to permit such Holders to deliver such prospectus to purchasers of
Registrable Securities in accordance with applicable law. None of the Company's
securityholders (other than the Holders) shall have the right to include any of
the Company's securities in the Registration Statement required pursuant to this
Section 3.2, if including such other securities in such Registration Statement
would delay or otherwise interfere with the filing or effectiveness of such
Registration Statement.

                  (c) If a requested registration pursuant to this Section 3.2
involves an underwritten offering, the investment banker(s), underwriter(s) and
manager(s) for such registration shall be selected by the Holders of a majority
of the Registrable Securities which the Company has been requested to register;
provided, however, that such investment banker(s), underwriter(s) and manager(s)
shall be reasonably satisfactory to the Company.

                  (d) In the event that a Registration Statement filed pursuant
to Section 3.2 is for a registered public offering involving an underwriting, as
requested by the Initiating Holders, the Company shall so advise the Holders as
part of the notice given pursuant to this Section 3.2. In such event, the right
of any Holder to registration pursuant to Section 3.2 shall be conditioned upon

                                       -6-
<PAGE>

such Holder's participation in the underwriting arrangements required by this
Section 3.2, and the inclusion of such Holder's Registrable Securities in the
underwriting to the extent requested shall be limited to the extent provided
herein.

      The Company shall (together with all Holders proposing to distribute their
securities through such underwriting) enter into an underwriting agreement in
customary form with the managing underwriter selected for such underwriting by
the Company and reasonably acceptable to a majority in interest of the Holders
proposing to distribute their securities through such underwriting.
Notwithstanding any other provision of this Section 3.2, if the requested
registration statement pursuant to this Section 3.2 involves an underwritten
public offering and the managing underwriter advises the Initiating Holders in
writing that marketing factors require a limitation of the number of shares to
be underwritten, then the Company shall so advise all Holders of Registrable
Securities and the number of shares of Registrable Securities that may be
included in the registration and underwriting shall be allocated among all
Holders thereof in proportion, as nearly as practicable, to the respective
amounts of Registrable Securities held by such Holders at the time of filing the
registration statement or in such other manner as shall be agreed to by the
Company and Holders of a majority in interest of the Registrable Securities
proposed to be included in such registration. No Registrable Securities excluded
from the underwriting by reason of the underwriter's marketing limitation shall
be included in such registration. To facilitate the allocation of shares in
accordance with the above provisions, the Company or the underwriters may round
the number of shares allocated to any Holder to the nearest one hundred (100)
shares.

      If any Holder of Registrable Securities disapproves of the terms of the
underwriting, such Holder may elect to withdraw therefrom by written notice to
the Company, the managing underwriter and the Initiating Holders. The
Registrable Securities and/or other securities so withdrawn shall also be
withdrawn from registration.

            3.3 Company Registration.

                  (a) If at any time or from time to time the Company shall
determine to register any of its securities, either for its own account or the
account of any stockholder, other than (i) a registration relating solely to
employee benefit plans, (ii) a registration relating solely to a Commission Rule
145 transaction, or (iii) the registration pursuant to Section 3.1 hereof, the
Company will:

                        (i) promptly give to each Holder written notice thereof
and of each such Holder's rights under this Section 3.3; and

                        (ii) use its commercially reasonable efforts to include
in such registration (and any related qualification under blue sky laws or other
compliance), and in any underwriting involved therein, all the Registrable
Securities specified in a written request or requests, made within ten (10) days
after receipt of such written notice from the Company, by any Holder, subject to
Section 3.3(b) hereof.

                                       -7-
<PAGE>

                  (b) If the registration of which the Company gives notice is
for a registered public offering involving an underwriting, the Company shall so
advise the Holders as a part of the written notice given pursuant to Section
3.3(a)(i). In such event the right of any Holder to registration pursuant to
Section 3.3 shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of Registrable Securities in the underwriting to
the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall (together with the Company) enter into an
underwriting agreement in customary form with the managing underwriter selected
for such underwriting by the Company. Notwithstanding any other provision of
this Section 3.3, if the Company registration pursuant to this Section 3.3
involves an underwritten offering and the managing underwriter advises the
Company in writing that marketing factors require a limitation of the number of
shares to be underwritten, the managing underwriter may limit the Registrable
Securities and other securities to be distributed through such underwriting,
provided, that the Company shall include in such registration (a) first, one
hundred percent (100%) of the securities the Company proposes to sell, and (b)
second, the amount of Registrable Securities which the Holders have requested to
be included in such registration, such amount to be allocated pro rata among all
requesting Holders on the basis of the relative amount of Registrable Securities
then held by each such Holder together with other holders of rights similar to
those granted in this Section 3.3 on a pari passu basis; provided, further, in
no event shall the number of Registrable Securities to be included in such
offering be less than twenty percent (20%) of the total number of securities to
be included in such offering. The Company shall so advise all Holders
distributing their securities through such underwriting of such limitation, and
the number of shares of Registrable Securities that may be included in the
registration and underwriting shall be allocated among all Holders in
proportion, as nearly as practicable, to the respective amounts of Registrable
Securities held by such Holders at the time of filing the registration statement
or in such other manner as shall be agreed to by the Company and Holders of a
majority in interest of the Registrable Securities proposed to be included in
such registration. To facilitate the allocation of shares in accordance with the
above provisions, the Company may round the number of shares allocated to any
Holder or other selling stockholder to the nearest one hundred (100) shares. If
any Holder disapproves of the terms of any such underwriting, such Holder or
selling stockholder may elect to withdraw therefrom by written notice to the
Company and the managing underwriter. Further, any Holder requesting to be
included in such registration may elect, in writing prior to the effective date
of the registration statement filed in connection with such registration to
withdraw therefrom. In addition, the registrations provided for in this Section
3.3 are in addition to, and not in lieu of the registrations made on behalf of
the Holders as described elsewhere in this Section 3.

                  (c) The Company shall have the right to terminate or withdraw
any registration initiated by it under this Section 3.3 prior to the
effectiveness of such registration whether or not any Holder has elected to
include securities in such registration. The Registration Expenses of such
withdrawn registration shall be borne by the Company in accordance with Section
3.4 hereof.

                  (d) Notwithstanding the above, this Section 3.3 shall not
apply to registrations of the Company's securities which are not underwritten
public offerings when the Registrable Securities are covered by an effective
Registration Statement.

                                       -8-
<PAGE>

            3.4 Expenses of Registration. All Registration Expenses incurred in
connection with registrations pursuant to Sections 3.1, 3.2 and 3.3 shall be
borne by the Company. All Selling Expenses relating to securities registered
pursuant to Sections 3.1, 3.2 and 3.3 shall be borne by the Persons holding
securities included in such registration pro rata on the basis of the number of
shares so registered.

            3.5 Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant to this Section 3,
the Company will keep each Holder advised in writing as to the initiation of
each registration, qualification and compliance and as to the completion
thereof. The Company will use its best efforts to:

                  (a) if the Company becomes eligible to file a Registration
Statement on Form S-3 (the date on which the Company becomes so eligible, the
"S-3 Eligibility Date"), then (A) cause each Registration Statement first filed
after the S-3 Eligibility Date to be on Form S-3 and (B) with respect to each
Registration Statement filed on Form SB-2 (or such other form as does not permit
incorporation by reference, if applicable) prior to the S-3 Eligibility Date
where the period of obligation to maintain the effectiveness of such
Registration Statement would in the reasonable judgment of the Company exceed
three (3) months, cause to be promptly (but in any event not more than 30 days
after such date) filed a Registration Statement on Form S-3 to replace each such
Registration Statement on Form SB-2 and cause such Registration Statement on
Form S-3 to be declared effective by the Commission as soon as possible after
filing, thereafter to cause to be filed a post-effective amendment to each
Registration Statement on Form SB-2 to de-register unsold shares under such
Registration Statement unless this provision 3.5(a) is waived in writing by
vSpring; provided, however, that no fewer than three (3) business days before
filing a Registration Statement or related prospectus or any amendment or
supplement thereto in accordance with Section 3 hereof, the Company shall
furnish to counsel for the Holders copies of all documents proposed to be filed,
which documents be subject to review by such counsel;

                  (b) prepare and file with the Commission such amendments and
supplements to such Registration Statement (including any Exchange Act documents
incorporated by reference into such Registration Statement) and the prospectus
used in connection with such Registration Statement as may be necessary to keep
such Registration Statement continuously effective as required herein and to
comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement, including, but not
limited to, with respect to each Registration Statement on Form SB-2 (or other
such form that does not permit incorporation by reference, if applicable), cause
a post-effective amendment (or prospectus supplement) to be filed with the
Commission within twenty (20) days after each date on which the Company files
its Annual Report on Form 10-KSB (or similar form), and in the case of a
post-effective amendment, cause such post-effective amendment to be declared
effective by the Commission as soon as possible after filing; provided, however,
that no fewer than three (3) business days before filing a Registration
Statement or related prospectus or any amendment or supplement thereto in
accordance with Section 3 hereof, the Company shall furnish to counsel for the
Holders copies of all documents proposed to be filed, which documents be subject
to review by such counsel;

                                       -9-
<PAGE>

                  (c) furnish to the Holders participating in such registration
and to the underwriters of the securities being registered, if any, such
reasonable number of copies of the registration statement, preliminary
prospectus, final prospectus, in conformity with the requirements of the
Securities Act, and such other documents they may reasonably request in order to
facilitate the disposition of Registrable Securities by them;

                  (d) register and qualify the securities covered by such
registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders and do any and all
other acts and things which may be reasonably necessary or advisable to enable
the Holders and each underwriter, if any, to consummate the disposition of the
Registrable Securities in such states;

                  (e) in the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering;

                  (f) cause all Registrable Securities to be quoted on the
Nasdaq Stock Market Over-the-Counter Bulletin Board (the "OTCBB"), or such other
securities exchange on which similar securities issued by the Company are then
listed, and comply with all requirements of the OTCBB or such other securities
exchange, as applicable, with regards to the issuance of the shares and the
listing thereof;

                  (g) give notice to each Holder and counsel for the Holders,
(i) when any prospectus, prospectus supplement, Registration Statement or
post-effective amendment to the Registration Statement has been filed with the
Commission and, with respect to the Registration Statement or any post-effective
amendment, when the same has been declared effective, (ii) of the receipt of any
comments from the SEC, (iii) of any request by the Commission or any other
federal or state governmental authority to amend or supplement the Registration
Statement or amend or supplement the prospectus or for additional information;
(iv) of the issuance by the Commission or any other federal or state
governmental authority of any stop order suspending the effectiveness of the
Registration Statement or the initiation or written threat of any proceedings
for that purpose, (v) 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 the written threat of any proceeding for such purpose or (vi) the
necessity 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 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 which notice in the
case of (iii) through (vi) above (each a "REQUIRED NOTICE") may, at the
discretion of the Company, state that it constitutes a Suspension Notice (as
defined below) in which case the provisions of Section 3.6 shall apply;

                                      -10-
<PAGE>

                  (h) if any Registration Statement required pursuant to this
Section 3 ceases to be effective for any reason at any time (other than because
all Registrable Securities registered thereunder shall have been resold pursuant
thereto or shall have otherwise ceased to be Registrable Securities), use its
best efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall as promptly as reasonably
practicable amend such Registration Statement in a manner reasonably expected to
obtain the withdrawal of the order suspending the effectiveness thereof;

                  (i) supplement and amend any Registration Statement required
pursuant to this Section 3 if required by the rules, regulations or instructions
applicable to the registration form used by the Company for such Registration
Statement, if required by the Securities Act or as reasonably requested by a
Holder or counsel for the Holders;

                  (j) obtain the withdrawal of any order or the lifting of any
suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction in which they have been
qualified for sale and provide reasonably prompt notice to each Holder and
counsel for the Holders of the withdrawal of any such order;

                  (k) incorporate in a prospectus supplement to the Registration
Statement or post-effective amendment to the Registration Statement such
information as the Holders of the majority in interest of the Registrable
Securities and counsel for the Holders shall determine to be required to be
included therein by applicable law and make any required filings of such
prospectus supplement or post-effective amendment;

                  (l) provide a transfer agent and registrar for all Registrable
Securities registered pursuant hereunder and a CUSP number for all such
Registrable Securities, in each case not later than the effective date of such
registration;

                  (m) cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities
sold or to be sold pursuant to the Registration Statement, which certificates
shall not bear any restrictive legends, and use reasonable efforts to cause such
Registrable Securities to be in such denominations and registered in such names
as the applicable Holder or Holders may request in writing at least one (1)
trading day prior to any sale of such Registrable Securities;

                  (n) make reasonably available for inspection during normal
business hours by a representative for any Holder, and any broker-dealers,
counsel for the Holders, accountants or underwriter, all relevant financial and
other records and pertinent corporate documents and properties of the Company
and its subsidiaries, and cause the appropriate officers, directors and
employees of the Company and its subsidiaries to make reasonably available for
inspection during normal business hours on reasonable notice all relevant
information reasonably requested by such representative for a Holder, or any
such brokerdealers, counsel for a Holder, accountants or underwriter in
connection with such disposition, in each case as is customary for similar "due
diligence" examinations; provided, however, that each Holder (and its respective
agents and representatives) shall hold in confidence and shall not make any
disclosure (except to another

                                      -11-
<PAGE>

Holder) of any such information, unless (i) disclosure of such information is
necessary to comply with federal or state securities laws, (ii) disclosure of
such information is necessary to avoid or to correct a misstatement or omission
in any Registration Statement, (iii) release of such information is ordered
pursuant to a subpoena or other order from a court or government body of
competent jurisdiction, (iv) such information has been made generally available
to the public other than by disclosure in violation of this or any other
agreement, or (v) the Company consents to any such disclosure. Nothing herein
shall be deemed to limit the Holder's ability to sell Registrable Securities in
a manner which is otherwise consistent with applicable laws and regulations;

                  (o) notify each Holder covered by such registration statement
at any time when a prospectus relating thereto is required to be delivered under
the Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing and at the request of
any such Holder, prepare and furnish to such Holder a reasonable number copies
of an amended or supplemental prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such Registrable Securities such
prospectus shall not include 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 not misleading in light of the circumstances then existing;

                  (p) comply with all applicable rules and regulations of the
Commission and make generally available to its securityholders earning
statements (which need not be audited) satisfying the provisions of Section
1l(a) of the Securities Act and Rule 158 thereunder (or any similar rule
promulgated under the Securities Act); and

                  (q) furnish, at the request of any Holder requesting
registration of Registrable Securities pursuant to this Section 3, on the
closing date of any such underwritten public offering, (i) an opinion, dated
such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in
an underwritten public offering, addressed to the underwriters and to the
Holders requesting registration of Registrable Securities and (ii) a letter
dated such date, from the independent certified public accountants of the
Company, in form and substance as is customarily given by independent certified
public accountants to underwriters in an underwritten public offering, addressed
to the underwriters, and to the Holders requesting registration of Registrable
Securities.

            3.6 Deferral. The right of the Investors to use the Registration
Statement (and the prospectus relating thereto) shall be suspended for a period
or periods (the "SUSPENSION PERIOD") of not more than sixty (60) days in any
single instance and not more than ninety days in the aggregate during any twelve
(12) month period after delivery by the Company to the Investors of (i) a
Required Notice; or (ii) a certificate signed by the President or Chief
Executive Officer of the Company certifying that the Board has made the
good-faith determination (A) that continued use by the Investors of the
Registration Statement for purposes of effecting offers or sales of Registrable
Shares pursuant thereto would require, under the Securities Act, premature
disclosure in the

                                      -12-
<PAGE>

Registration Statement or prospectus of material, nonpublic information
concerning the Company, its business or prospects or any proposed material
transaction involving the Company, (B) that such premature disclosure would be
materially adverse to the Company, its business or prospects or any such
proposed material transaction or would make the successful consummation by the
Company of any such material transaction significantly less likely and (C) that
it is therefore essential to suspend the use by the Investors of such
Registration Statement and prospectus for purposes of effecting offers or sales
of Registrable Shares pursuant thereto. A Required Notice and the certificate
described in subsection (ii) above are each referred to herein as a "SUSPENSION
NOTICE." Upon receipt of a Suspension Notice, each Holder agrees not to sell any
Registrable Securities pursuant to the Registration Statement until such Holder
is advised in writing by the Company that the Registration Statement and related
prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such Registration Statement and related prospectus (the "ADVICE"). Each
Investor shall keep the fact of any Suspension Notice delivered by the Company
and its contents confidential.

            3.7 Indemnification.

                  (a) The Company will indemnify each Holder, each of its
officers, directors, partners and legal counsel, and each Person controlling
such Holder within the meaning of Section 15 of the Securities Act, with respect
to which registration, qualification or compliance has been effected pursuant to
this Section 3, and each underwriter, if any, and each Person who controls any
underwriter within the meaning of Section 15 of the Securities Act, against all
expenses, claims, losses, damages or liabilities (or actions, proceedings or
settlements in respect thereof), including any of the foregoing incurred in
settlement of any litigation, commenced or threatened, arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any registration statement, prospectus, offering circular or other
document, or any amendment or supplement thereto, incident to any such
registration, qualification or compliance, or based on any omission (or alleged
omission) to state therein 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 any violation by the Company of the
Securities Act or other applicable securities laws or any rule or regulation
promulgated under the Securities Act or such other securities laws applicable to
the Company in connection with any such registration, qualification or
compliance, and the Company will reimburse each such Holder, each of its
officers, directors, partners, and legal counsel and each Person controlling
such Holder, each such underwriter and each Person who controls any such
underwriter, for any legal and any other expenses reasonably incurred in
connection with investigating, preparing, defending or settling any such claim,
loss, damage, liability or action, provided that the Company will not be liable
in any such case to the extent that any such claim, loss, damage, liability or
expense arises out of or is based on any untrue statement or omission or alleged
untrue statement or omission, made in reliance upon and in conformity with
written information furnished to the Company by such Holder, controlling Person
or underwriter and stated to be specifically for use therein.

                  (b) Each Holder will, if Registrable Securities held by such
Holder are included in the securities as to which such registration,
qualification or compliance is being effected,

                                      -13-
<PAGE>

severally (but not jointly) indemnify the Company, each of its directors,
officers, and legal counsel, each underwriter, if any, of the Company's
securities covered by such a registration statement, each Person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, and each other Holder, each of its officers, directors, partners
and legal counsel and each Person controlling such Holder within the meaning of
Section 15 of the Securities Act, against all claims, losses, damages and
liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any such registration statement, prospectus, offering circular or other
document, or any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse the Company, such Holders, such directors,
officers, Persons, underwriters or control Persons for any legal or any other
expenses reasonably incurred in connection with investigating or defending any
such claim, loss, damage, liability or action, in each case to the extent, but
only to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in
conformity with written information furnished to the Company by such Holder and
stated to be specifically for use therein; provided, however, that the
obligations of such Holder hereunder shall not apply to amounts paid in
settlement of any such claims, losses, damages, or liabilities (or actions in
respect thereof) if such settlement is effected without the consent of such
Holder (which consent shall not be unreasonably withheld); and provided that in
no event shall any indemnity under this Section 3.7(b) exceed the net proceeds
from the offering received by such Holder. A Holder will not be required to
enter into any agreement or undertaking in connection with any registration
under this Section 3 providing for any indemnification or contribution on the
part of such Holder greater than the Holder's obligations under this Section
3.7(b).

                  (c) Each party entitled to indemnification under this Section
3.7 (the "INDEMNIFIED PARTY") shall give notice to the party required to provide
indemnification (the "INDEMNIFYING PARTY") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such
party's expense, and provided further that the failure of any Indemnified Party
to give notice as provided herein shall not relieve the Indemnifying Party of
its obligations under this Section 3 unless the failure to give such notice is
materially prejudicial to an Indemnifying Party's ability to defend such action
and provided further, that the Indemnifying Party shall not assume the defense
for matters as to which there is a conflict of interest or separate and
different defenses but shall bear the expense of such defense nevertheless. No
Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect to such claim or litigation.

                                      -14-
<PAGE>

                  (d) If the indemnification provided for in this Section 3.7 is
held by a court of competent jurisdiction to be unavailable to an Indemnified
Party with respect to any loss, liability, claim, damage or expense referred to
herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified
Party hereunder, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such loss, liability, claim, damage or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the Indemnified Party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense, as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the
Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
Indemnifying Party or by the Indemnified Party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

                  (e) Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

                  (f) The obligations of the Company and Holders under this
Section 3.7 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 3, and otherwise.

            3.8 Information by Holder. The Holder or Holders of Registrable
Securities included in any registration shall furnish to the Company such
information regarding such Holder or Holders, the Registrable Securities held by
them, and the distribution proposed by such Holder or Holders as the Company may
request in writing and as shall be required in connection with any registration,
qualification or compliance referred to in this Section 3.

            3.9 Rule 144 Reporting. With a view to making available the benefits
of certain rules and regulations of the Commission which may at any time permit
the sale of the Restricted Securities to the public without registration, after
such time as a public market exists for the Common Stock of the Company, the
Company agrees to use its best efforts to:

                  (a) Make and keep public information available, as those terms
are understood and defined in Rule 144, at all times after the Effective Date
that the Company is subject to the reporting requirements of the Securities Act
or the Securities Exchange Act of 1934, as amended;

                  (b) File with the Commission in a timely manner all reports
and other documents required of the Company under the Securities Act and the
Securities Exchange Act of 1934, as amended (at any time after it has become
subject to such reporting requirements); and

                  (c) So long as a Holder owns any Restricted Securities to
furnish to the Purchaser forthwith upon request a written statement by the
Company as to its compliance with the

                                      -15-
<PAGE>

reporting requirements of Rule 144 (at any time after ninety (90) days after the
effective date of the first registration statement filed by the Company for an
offering of its securities to the general public), and of the Securities Act and
the Securities Exchange Act of 1934 (at any time after it has become subject to
such reporting requirements), a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents of the Company and
other information in the possession of or reasonably obtainable by the Company
as a Purchaser may reasonably request in availing itself of any rule or
regulation of the Commission allowing a Purchaser to sell any such securities
without registration.

            3.10 Transfer of Registration Rights. None of the rights to cause
the Company to register securities granted to Holders under Sections 3.1, 3.2
and 3.3 may be transferred or assigned by a Holder unless (i) the transferee is
a Holder or (ii) such person is a Qualifying Holder (as defined below), and such
person agrees to become a party to, and bound by, all of the terms and
conditions of, this Agreement. For purposes of this Section 3.10, the term
"Qualifying Holder" shall mean, with respect to any Investor who has purchased
no less than $250,000 of Shares under the Purchase Agreement on, or before, the
Final Closing Date, (i) any partner or member thereof, (ii) any corporation,
partnership or limited liability company controlling, controlled by, or under
common control with, such Investor or any partner or member thereof, or (iii)
any other direct transferee from such Investor of at least 15% of those
Registrable Shares held by such Investor.

            3.11 No Inconsistent Agreements. The Company represents and warrants
that it is not a party to, nor will it enter into any agreements that
(individually or in the aggregate) conflict with or limit or prohibit the
exercise of the rights granted to the Holders in this Agreement.

            3.12 Termination of Registration Rights. The rights granted under
Section 3.2 shall terminate on the Liquidity Date.

      4. Covenants of the Company.

            4.1 Protective Provisions. Until the earlier of (i) the Liquidity
Date or (ii) the first date on which vSpring does not hold at least fifty
percent (50%) of the Shares which it acquires on the Initial Closing Date, the
prior written consent of vSpring shall be required before the Company, directly
or indirectly, takes or agrees to take any of the following actions:

                  (a) offer, sell, create, authorize, designate or issue any
security with rights, preferences, or privileges senior to the Common Stock;

                  (b) amend the Company's Certificate of Incorporation or
Bylaws;

                  (c) repurchase or redeem any outstanding securities of the
Company (except from an employee at cost upon termination of his employment
relationship with the Company and pursuant to an agreement pursuant to which
such securities were issued) in excess of an aggregate of Five Hundred Thousand
Dollars ($500,000) at a price or above Twenty Cents ($.20) per share;

                                      -16-
<PAGE>

                  (d) engage in any merger, reorganization, or sale of all or
substantially all of the Company's assets;

                  (e) make, authorize, or declare the payment of any dividend on
any outstanding securities of the Company;

                  (f) issue any debt instrument in excess of Five Hundred
Thousand Dollars ($500,000), excluding instruments issued in connection with
customary commercial bank financings and equipment leases;

                  (g) authorize in excess of one million five hundred thousand
(1,500,000) shares of Common Stock to be issued pursuant to the Company's stock
option or purchase plans; or

                  (h) engage in any acquisition transaction with another company
involving a purchase price in excess of Five Hundred Thousand Dollars
($500,000).

            4.2 Repurchase of Shares Upon Change of Control.

                  (a) In the event that (i) a Change in Control (as hereinafter
defined) shall occur and (ii) vSpring, together with its Affiliates, holds at
least 538,461 Shares (as appropriately adjusted for stock splits, combinations,
recapitalizations and similar transactions), then each of the Investors shall
have the right, at such Investor's option, to require the Company to repurchase,
and upon the exercise of such right the Company shall repurchase, all Shares
purchased by such electing Investor, or any portion of thereof as so requested
by such Investor, on the date (the "REPURCHASE DATE") that is within five (5)
business days after the date on which such Investor gives notice of its exercise
of its repurchase right, setting forth the name of the Investor, the aggregate
purchase price of the Shares held by such Investor to be repurchased at the
Repurchase Price (as hereinafter defined). The Company shall give each Investor
notice, in the manner provided in Section 5.5, of any Change in Control, within
twenty (20) business days of the occurrence thereof.

                  (b) In the event a repurchase right shall be exercised in
accordance with the terms hereof, the Company shall pay or cause to be paid to
the Investor the Repurchase Price in cash on the Repurchase Date.

                  (c) For purposes of this Section 4.2:

                        (i) the term "beneficial owner" shall be determined in
accordance with Rule 13d-3 promulgated by the Securities and Exchange Commission
pursuant to the Exchange Act;

                        (ii) a "CHANGE IN CONTROL" shall be deemed to have
occurred at the time, after the date hereof, of:

                              (1) the acquisition by any Person of beneficial
ownership, directly or indirectly, through a purchase, merger or other
acquisition transaction or series of

                                      -17-
<PAGE>

transactions, of shares of capital stock of the Company entitling such Person to
exercise fifty percent (50%) or more of the total voting power of all shares of
capital stock of the Company entitled to vote generally in the elections of
directors (any shares of voting stock of which such Person is the beneficial
owner that are not then outstanding being deemed outstanding for purposes of
calculating such percentage);

                              (2) any consolidation or merger of the Company
with or into, any other Person, any merger of another Person with or into the
company (other than any such transaction pursuant to which holders of Common
Stock immediately prior to such transaction have the entitlement to exercise,
directly or indirectly, fifty percent (50%) or more of the total voting power of
all shares of capital stock entitled to vote generally in the election of
directors of the continuing or surviving Person immediately after such
transaction or the occupation of a majority of the seats (other than vacant
seats) on the Board of Directors of the Company by persons who were neither (i)
nominated by the Board of Directors of the Company nor (ii) appointed by
directors so nominated;

                              (3) the sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company in one or a
series of related transactions; or

                              (4) any liquidation, dissolution or winding up of
the Company, whether voluntary or involuntary.

                        (iii) "REPURCHASE PRICE" means one hundred twenty
percent (120%) of the aggregate purchase price of the Shares purchased by such
Investor in the Purchase Agreement as adjusted for stock splits, combinations,
stock dividends or other recapitalizations.

                        (iv) None of the rights to cause the Company to
repurchase securities granted to Investors under this Section 4.2 may be
transferred or assigned by a Holder unless (i) the transferee is a Holder or
(ii) such person is a Qualifying Holder (as defined in Section 3.10) and such
person agrees to become a party to, and bound by, all of the terms and
conditions of, this Agreement.

                        (v) The right of repurchase under this Section 4.2 shall
terminate on the Liquidity Date.

            4.3 Directors' and Officers' Liability Insurance. For so long as the
Investor Designee is a member of the Board of Directors, the Company shall
maintain directors' and officers' liability insurance on terms reasonably
satisfactory to vSpring.

            4.4 Form D. The Company shall file a Form D with respect to the
Securities as required under Regulation D and shall provide a copy thereof to
each Buyer promptly after such filing. The Company shall make all filings and
reports relating to the offer and sale of the Securities required under
applicable state securities laws.

                                      -18-
<PAGE>

            4.5 Reservation of Shares. The Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of
issuance, no less than one hundred percent (100%) of the number of shares of
Common Stock issuable upon exercise of the Warrants.

            4.6 Disclosure of Transaction. Within four (4) business days of the
date hereof the Company shall file a Current Report on Form 8-K describing the
terms of the transactions contemplated by the Operative Agreements in the form
required by the Securities Exchange Act of 1934, as amended, and attaching the
Purchase Agreement and each ancillary agreement thereto as exhibits to such.

            4.7 Further Assurances. At the request of vSpring, the Company shall
execute and deliver such instruments or documents to evidence or further
effectuate the respective rights of vSpring under this Agreement and shall
provide all reasonable assistance to vSpring in making any necessary filing,
including but not limited to filings with the SEC and other federal and state
agencies.

            4.8 Amended and Restated Shareholder Agreement. Each Investor by
his, her or its execution of this Agreement, hereby acknowledges and agrees that
such execution and signature to this Agreement shall also constitute such
Investor's signature to and execution of the Amended and Restated Shareholder
Agreement attached hereto as Exhibit B and incorporated herein by reference and
that such Investor shall be legally bound thereto in accordance with the terms
set forth therein.

      5. General Provisions.

            5.1 Amendment and Waiver. Any term of this Agreement may be amended
and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), only
with the written consent of the Company, vSpring and a majority in interest of
the Investors. Any amendment or waiver effected in accordance with this Section
5.1 shall be binding upon each Holder of any Shares or Registrable Securities
purchased under the Purchase Agreement at the time outstanding, each future
Holder of all such securities and the Company.

            5.2 Governing Law; Injunctive Relief.

                  (a) This Agreement shall be governed by and construed in
accordance with the internal and substantive laws of the State of Delaware and
without regard to any conflicts of laws concepts which would apply the
substantive law of some other jurisdiction. Venue for all purposes hereunder
shall be in the applicable state or federal court located within the State of
Delaware.

                  (b) Each of the parties hereto acknowledges and agrees that
damages will not be an adequate remedy for any material breach or violation of
this Agreement if such material breach or violation would cause immediate and
irreparable harm (an "IRREPARABLE BREACH"). Accordingly, in the event of a
threatened or ongoing Irreparable Breach, each party hereto shall be

                                      -19-
<PAGE>

entitled to seek, equitable relief of a kind appropriate in light of the nature
of the ongoing or threatened Irreparable Breach, which relief may include,
without limitation, specific performance or injunctive relief; provided,
however, that if the party bringing such action is unsuccessful in obtaining the
relief sought, the moving party shall pay the non-moving party's reasonable
costs, including attorney's fees, incurred in connection with defending such
action. Such remedies shall not be the parties' exclusive remedies, but shall be
in addition to all other remedies provided in this Agreement.

            5.3 Successors and Assigns. Except as otherwise expressly provided,
the provisions of this Agreement shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the
parties.

            5.4 Severability. Should any part or provision of this Agreement be
held unenforceable or in conflict with the applicable laws or regulations of any
jurisdiction, the invalid or unenforceable part or provisions shall be replaced
with a provision which accomplishes, to the extent possible, the original
business purpose of such part or provision in a valid and enforceable manner,
and the remainder of this Agreement shall remain binding upon the parties
hereto.

            5.5 Notices. Any notices, reports or other correspondence
(hereinafter collectively referred to as "correspondence") required or permitted
to be given hereunder shall be in writing and shall be sent by postage prepaid
first class mail, courier or telecopy or delivered by hand to the party to whom
such correspondence is required or permitted to be given hereunder, and shall be
deemed sufficient upon receipt when delivered personally or by courier,
overnight delivery service or confirmed facsimile, or three (3) business days
after being deposited in the regular mail as certified or registered mail
(airmail if sent internationally) with postage prepaid, if such notice is
addressed to the party to be notified at such party's address or facsimile
number as set forth below:

                  (a) All correspondence to the Company shall be addressed as
follows:

                      Protalex, Inc.
                      145 Union Square Drive,
                      New Hope, PA 18938
                      Attention: Marc L. Rose
                      Facsimile: (215) 862-6614

                  with a copy to:

                      Reed Smith LLP
                      Two Embarcadero Center, Suite 2000
                      San Francisco, CA 94111
                      Attention: Donald C. Reinke, Esq.
                      Facsimile: (415) 391.8269

                  (b) All correspondence to any Holder shall be sent to such
Holder at the address set forth in Schedule A.

                                      -20-
<PAGE>

            5.6 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

            5.7 Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

            5.8 Expenses. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

            5.9 Material Non-Public Information. Except in connection with any
Investor's designee's role as a representative of the Company's board of
directors, the Company will not provide to any Investor material non-public
information other than information related to the transactions contemplated by
the Operative Agreements without the prior written consent of such Investor.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE TO FOLLOW]

                                      -21-
<PAGE>

      IN WITNESS WHEREOF, this Investor Rights Agreement has been executed as of
the date first above written.

COMPANY:

PROTALEX, INC., a Delaware corporation
145 Union Square Drive
New Hope, PA 18938

By: /s/ Steven Kane
    -------------------------------------
    Steven Kane,
    President and Chief Executive Officer

                                         INVESTORS:

                                         [Individual investor signatures not
                                         listed for purposes of this exhibit]

                                         _______________________________________
                                         [Signature]

                                         _______________________________________
                                         [Print Name]

                                         _______________________________________
                                         [Title (if shareholder not individual)]

                                       -1-

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