Document:

THIS
        WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT
        BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT AS OTHERWISE
        SET
        FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED AS OF OCTOBER 31,
        2006,
        NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED OR ASSIGNED
        IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES
        UNDER
        SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, CUSTOMARY
        FOR
        OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT
        REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION
        S
        UNDER SUCH ACT.

       

      Right
        to
        Purchase 200,000 Shares of Common Stock, par value $.001 per share

       

      STOCK
        PURCHASE WARRANT

       

      THIS
        CERTIFIES THAT,
        for
        value received, New Millennium Capital Partners II, LLC or its registered
        assigns, is entitled to purchase from Advanced
        Biophotonics Inc.,
        a
        Delaware corporation (the “Company”), at any time or from time to time during
        the period specified in Paragraph 2 hereof, 200,000 fully paid and
        nonassessable shares of the Company’s Common Stock, par value $.001 per share
        (the “Common Stock”), at an exercise price per share equal to $.08 (the
“Exercise Price”). The term “Warrant Shares,” as used herein, refers to the
        shares of Common Stock purchasable hereunder. The Warrant Shares and the
        Exercise Price are subject to adjustment as provided in Paragraph 4 hereof.
        The
        term “Warrants” means this Warrant and the other warrants issued pursuant to
        that certain Securities Purchase Agreement, dated October 31, 2006, by and
        among
        the Company and the Buyers listed on the execution page thereof (the “Securities
        Purchase Agreement”). 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      This
        Warrant is subject to the following terms, provisions, and conditions:

       

      1. Manner
        of Exercise; Issuance of Certificates; Payment for Shares.
Subject
        to the provisions hereof, this Warrant may be exercised by the holder hereof,
        in
        whole or in part, by the surrender of this Warrant, together with a completed
        exercise agreement in the form attached hereto (the “Exercise Agreement”), to
        the Company during normal business hours on any business day at the Company’s
        principal executive offices (or such other office or agency of the Company
        as it
        may designate by notice to the holder hereof), and upon (i) payment to the
        Company in cash, by certified or official bank check or by wire transfer
        for the
        account of the Company of the Exercise Price for the Warrant Shares specified
        in
        the Exercise Agreement or (ii) if the resale of the Warrant Shares by the
        holder
        is not then registered pursuant to an effective registration statement under
        the
        Securities Act of 1933, as amended (the “Securities Act”), delivery to the
        Company of a written notice of an election to effect a “Cashless Exercise” (as
        defined in Section 11(c) below) for the Warrant Shares specified in the Exercise
        Agreement. The Warrant Shares so purchased shall be deemed to be issued to
        the
        holder hereof or such holder’s designee, as the record owner of such shares, as
        of the close of business on the date on which this Warrant shall have been
        surrendered, the completed Exercise Agreement shall have been delivered,
        and
        payment shall have been made for such shares as set forth above. Certificates
        for the Warrant Shares so purchased, representing the aggregate number of
        shares
        specified in the Exercise Agreement, shall be delivered to the holder hereof
        within a reasonable time, not exceeding five (5) business days, after this
        Warrant shall have been so exercised. The certificates so delivered shall
        be in
        such denominations as may be requested by the holder hereof and shall be
        registered in the name of such holder or such other name as shall be designated
        by such holder. If this Warrant shall have been exercised only in part, then,
        unless this Warrant has expired, the Company shall, at its expense, at the
        time
        of delivery of such certificates, deliver to the holder a new Warrant
        representing the number of shares with respect to which this Warrant shall
        not
        then have been exercised. In addition to all other available remedies at
        law or
        in equity, if the Company fails to deliver certificates for the Warrant Shares
        within five (5) business days after this Warrant is exercised, then the Company
        shall pay to the holder in cash a penalty (the “Penalty”) equal to 2% of the
        number of Warrant Shares that the holder is entitled to multiplied by the
        Market
        Price (as hereinafter defined) for each day that the Company fails to deliver
        certificates for the Warrant Shares. For example, if the holder is entitled
        to
        100,000 Warrant Shares and the Market Price is $2.00, then the Company shall
        pay
        to the holder $4,000 for each day that the Company fails to deliver certificates
        for the Warrant Shares. The Penalty shall be paid to the holder by the fifth
        day
        of the month following the month in which it has accrued.

       

      Notwithstanding
        anything in this Warrant to the contrary, in no event shall the holder of
        this
        Warrant be entitled to exercise a number of Warrants (or portions thereof)
        in
        excess of the number of Warrants (or portions thereof) upon exercise of which
        the sum of (i) the number of shares of Common Stock beneficially owned by
        the
        holder and its affiliates (other than shares of Common Stock which may be
        deemed
        beneficially owned through the ownership of the unexercised Warrants and
        the
        unexercised or unconverted portion of any other securities of the Company
        (including the Notes (as defined in the Securities Purchase Agreement)) subject
        to a limitation on conversion or exercise analogous to the limitation contained
        herein) and (ii) the number of shares of Common Stock issuable upon exercise
        of
        the Warrants (or portions thereof) with respect to which the determination
        described herein is being made, would result in beneficial ownership by the
        holder and its affiliates of more than 4.9% of the outstanding shares of
        Common
        Stock. For purposes of the immediately preceding sentence, beneficial ownership
        shall be determined in accordance with Section 13(d) of the Securities Exchange
        Act of 1934, as amended, and Regulation 13D-G thereunder, except as otherwise
        provided in clause (i) of the preceding sentence. Notwithstanding anything
        to
        the contrary contained herein, the limitation on exercise of this Warrant
        set
        forth herein may not be amended without (i) the written consent of the holder
        hereof and the Company and (ii) the approval of a majority of shareholders
        of
        the Company.

       

      
        
          
          

        

        
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      2. Period
        of Exercise.  This
        Warrant is exercisable at any time or from time to time on or after the date
        on
        which this Warrant is issued and delivered pursuant to the terms of the
        Securities Purchase Agreement and before 6:00 p.m., New York, New York time
        on
        the seventh (7th)
        anniversary of the date of issuance (the “Exercise Period”).

       

      3. Certain
        Agreements of the Company. The
        Company hereby covenants and agrees as follows:

       

      (a) Shares
        to be Fully Paid.
        Subject
        to Stockholder Approval (as such term is defined in Section 4(n) of the
        Securities Purchase Agreement), all Warrant Shares will, upon issuance in
        accordance with the terms of this Warrant, be validly issued, fully paid,
        and
        nonassessable and free from all taxes, liens, and charges with respect to
        the
        issue thereof.

       

      (b) Reservation
        of Shares.
        Subject
        to Stockholder Approval (as such term is defined in Section 4(n) of the
        Securities Purchase Agreement), during the Exercise Period, the Company shall
        at
        all times have authorized, and reserved for the purpose of issuance upon
        exercise of this Warrant, a sufficient number of shares of Common Stock to
        provide for the exercise of this Warrant.

       

      (c) Listing.
        The
        Company shall promptly secure the listing of the shares of Common Stock issuable
        upon exercise of the Warrant upon each national securities exchange or automated
        quotation system, if any, upon which shares of Common Stock are then listed
        (subject to official notice of issuance upon exercise of this Warrant) and
        shall
        maintain, so long as any other shares of Common Stock shall be so listed,
        such
        listing of all shares of Common Stock from time to time issuable upon the
        exercise of this Warrant; and the Company shall so list on each national
        securities exchange or automated quotation system, as the case may be, and
        shall
        maintain such listing of, any other shares of capital stock of the Company
        issuable upon the exercise of this Warrant if and so long as any shares of
        the
        same class shall be listed on such national securities exchange or automated
        quotation system.

       

      (d) Certain
        Actions Prohibited.
        The
        Company will not, by amendment of its charter or through any reorganization,
        transfer of assets, consolidation, merger, dissolution, issue or sale of
        securities, or any other voluntary action, avoid or seek to avoid the observance
        or performance of any of the terms to be observed or performed by it hereunder,
        but will at all times in good faith assist in the carrying out of all the
        provisions of this Warrant and in the taking of all such action as may
        reasonably be requested by the holder of this Warrant in order to protect
        the
        exercise privilege of the holder of this Warrant against dilution or other
        impairment, consistent with the tenor and purpose of this Warrant. Without
        limiting the generality of the foregoing, the Company (i) will not increase
        the
        par value of any shares of Common Stock receivable upon the exercise of this
        Warrant above the Exercise Price then in effect, and (ii) will take all such
        actions as may be necessary or appropriate in order that the Company may
        validly
        and legally issue fully paid and nonassessable shares of Common Stock upon
        the
        exercise of this Warrant.

       

      (e) Successors
        and Assigns.
        This
        Warrant will be binding upon any entity succeeding to the Company by merger,
        consolidation, or acquisition of all or substantially all the Company’s
        assets.

       

      
        
          
          

        

        
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      4. Antidilution
        Provisions. During
        the Exercise Period, the Exercise Price and the number of Warrant Shares
        shall
        be subject to adjustment from time to time as provided in this Paragraph
        4.

       

      In
        the
        event that any adjustment of the Exercise Price as required herein results
        in a
        fraction of a cent, such Exercise Price shall be rounded up to the nearest
        cent.

       

      (a) Adjustment
        of Exercise Price and Number of Shares upon Issuance of Common
        Stock.
        Except
        as otherwise provided in Paragraphs 4(c) and 4(e) hereof, if and whenever
        on or
        after the date of issuance of this Warrant, the Company issues or sells,
        or in
        accordance with Paragraph 4(b) hereof is deemed to have issued or sold, any
        shares of Common Stock for no consideration or for a consideration per share
        (before deduction of reasonable expenses or commissions or underwriting
        discounts or allowances in connection therewith) less than the Market Price
        on
        the date of issuance (a “Dilutive Issuance”), then immediately upon the Dilutive
        Issuance, the Exercise Price will be reduced to a price determined by
        multiplying the Exercise Price in effect immediately prior to the Dilutive
        Issuance by a fraction, (i) the numerator of which is an amount equal to
        the sum
        of (x) the number of shares of Common Stock actually outstanding immediately
        prior to the Dilutive Issuance, plus (y) the quotient of the aggregate
        consideration, calculated as set forth in Paragraph 4(b) hereof, received
        by the
        Company upon such Dilutive Issuance divided by the Market Price in effect
        immediately prior to the Dilutive Issuance, and (ii) the denominator of which
        is
        the total number of shares of Common Stock Deemed Outstanding (as defined
        below)
        immediately after the Dilutive Issuance. 

       

      (b) Effect
        on Exercise Price of Certain Events.
        For
        purposes of determining the adjusted Exercise Price under Paragraph 4(a)
        hereof,
        the following will be applicable:

       

      (i) Issuance
        of Rights or Options.
        If the
        Company in any manner issues or grants any warrants, rights or options, whether
        or not immediately exercisable, to subscribe for or to purchase Common Stock
        or
        other securities convertible into or exchangeable for Common Stock (“Convertible
        Securities”) (such warrants, rights and options to purchase Common Stock or
        Convertible Securities are hereinafter referred to as “Options”) and the price
        per share for which Common Stock is issuable upon the exercise of such Options
        is less than the Market Price on the date of issuance or grant of such Options,
        then the maximum total number of shares of Common Stock issuable upon the
        exercise of all such Options will, as of the date of the issuance or grant
        of
        such Options, be deemed to be outstanding and to have been issued and sold
        by
        the Company for such price per share. For purposes of the preceding sentence,
        the “price per share for which Common Stock is issuable upon the exercise of
        such Options” is determined by dividing (i) the total amount, if any, received
        or receivable by the Company as consideration for the issuance or granting
        of
        all such Options, plus the minimum aggregate amount of additional consideration,
        if any, payable to the Company upon the exercise of all such Options, plus,
        in
        the case of Convertible Securities issuable upon the exercise of such Options,
        the minimum aggregate amount of additional consideration payable upon the
        conversion or exchange thereof at the time such Convertible Securities first
        become convertible or exchangeable, by (ii) the maximum total number of shares
        of Common Stock issuable upon the exercise of all such Options (assuming
        full
        conversion of Convertible Securities, if applicable). No further adjustment
        to
        the Exercise Price will be made upon the actual issuance of such Common Stock
        upon the exercise of such Options or upon the conversion or exchange of
        Convertible Securities issuable upon exercise of such Options.

       

      
        
          
          

        

        
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      (ii) Issuance
        of Convertible Securities.
        If the
        Company in any manner issues or sells any Convertible Securities, whether
        or not
        immediately convertible (other than where the same are issuable upon the
        exercise of Options) and the price per share for which Common Stock is issuable
        upon such conversion or exchange is less than the Market Price on the date
        of
        issuance, then the maximum total number of shares of Common Stock issuable
        upon
        the conversion or exchange of all such Convertible Securities will, as of
        the
        date of the issuance of such Convertible Securities, be deemed to be outstanding
        and to have been issued and sold by the Company for such price per share.
        For
        the purposes of the preceding sentence, the “price per share for which Common
        Stock is issuable upon such conversion or exchange” is determined by dividing
        (i) the total amount, if any, received or receivable by the Company as
        consideration for the issuance or sale of all such Convertible Securities,
        plus
        the minimum aggregate amount of additional consideration, if any, payable
        to the
        Company upon the conversion or exchange thereof at the time such Convertible
        Securities first become convertible or exchangeable, by (ii) the maximum
        total
        number of shares of Common Stock issuable upon the conversion or exchange
        of all
        such Convertible Securities. No further adjustment to the Exercise Price
        will be
        made upon the actual issuance of such Common Stock upon conversion or exchange
        of such Convertible Securities.

       

      (iii) Change
        in Option Price or Conversion Rate.
        If there
        is a change at any time in (i) the amount of additional consideration payable
        to
        the Company upon the exercise of any Options; (ii) the amount of additional
        consideration, if any, payable to the Company upon the conversion or exchange
        of
        any Convertible Securities; or (iii) the rate at which any Convertible
        Securities are convertible into or exchangeable for Common Stock (other than
        under or by reason of provisions designed to protect against dilution), the
        Exercise Price in effect at the time of such change will be readjusted to
        the
        Exercise Price which would have been in effect at such time had such Options
        or
        Convertible Securities still outstanding provided for such changed additional
        consideration or changed conversion rate, as the case may be, at the time
        initially granted, issued or sold.

       

      (iv) Treatment
        of Expired Options and Unexercised Convertible
        Securities.
        If, in
        any case, the total number of shares of Common Stock issuable upon exercise
        of
        any Option or upon conversion or exchange of any Convertible Securities is
        not,
        in fact, issued and the rights to exercise such Option or to convert or exchange
        such Convertible Securities shall have expired or terminated, the Exercise
        Price
        then in effect will be readjusted to the Exercise Price which would have
        been in
        effect at the time of such expiration or termination had such Option or
        Convertible Securities, to the extent outstanding immediately prior to such
        expiration or termination (other than in respect of the actual number of
        shares
        of Common Stock issued upon exercise or conversion thereof), never been
        issued.

       

      (v) Calculation
        of Consideration Received.
        If any
        Common Stock, Options or Convertible Securities are issued, granted or sold
        for
        cash, the consideration received therefor for purposes of this Warrant will
        be
        the amount received by the Company therefor, before deduction of reasonable
        commissions, underwriting discounts or allowances or other reasonable expenses
        paid or incurred by the Company in connection with such issuance, grant or
        sale.
        In case any Common Stock, Options or Convertible Securities are issued or
        sold
        for a consideration part or all of which shall be other than cash, the amount
        of
        the consideration other than cash received by the Company will be the fair
        value
        of such consideration, except where such consideration consists of securities,
        in which case the amount of consideration received by the Company will be
        the
        Market Price thereof as of the date of receipt. In case any Common Stock,
        Options or Convertible Securities are issued in connection with any acquisition,
        merger or consolidation in which the Company is the surviving corporation,
        the
        amount of consideration therefor will be deemed to be the fair value of such
        portion of the net assets and business of the non-surviving corporation as
        is
        attributable to such Common Stock, Options or Convertible Securities, as
        the
        case may be. The fair value of any consideration other than cash or securities
        will be determined in good faith by the Board of Directors of the
        Company.

       

      
        
          
          

        

        
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      (vi) Exceptions
        to Adjustment of Exercise Price.
        No
        adjustment to the Exercise Price will be made (i) upon the exercise of any
        warrants, options or convertible securities granted, issued and outstanding
        on
        the date of issuance of this Warrant; (ii) upon the grant or exercise of
        any
        stock or options which may hereafter be granted or exercised under any employee
        benefit plan, stock option plan or restricted stock plan of the Company now
        existing or to be implemented in the future, so long as the issuance of such
        stock or options is approved by a majority of the independent members of
        the
        Board of Directors of the Company or a majority of the members of a committee
        of
        independent directors established for such purpose; or (iii) upon the exercise
        of the Warrants.

       

      (c) Subdivision
        or Combination of Common Stock.
        If the
        Company at any time subdivides (by any stock split, stock dividend,
        recapitalization, reorganization, reclassification or otherwise) the shares
        of
        Common Stock acquirable hereunder into a greater number of shares, then,
        after
        the date of record for effecting such subdivision, the Exercise Price in
        effect
        immediately prior to such subdivision will be proportionately reduced. If
        the
        Company at any time combines (by reverse stock split, recapitalization,
        reorganization, reclassification or otherwise) the shares of Common Stock
        acquirable hereunder into a smaller number of shares, then, after the date
        of
        record for effecting such combination, the Exercise Price in effect immediately
        prior to such combination will be proportionately increased.

       

      (d) Adjustment
        in Number of Shares.
        Upon
        each adjustment of the Exercise Price pursuant to the provisions of this
        Paragraph 4, the number of shares of Common Stock issuable upon exercise
        of this
        Warrant shall be adjusted by multiplying a number equal to the Exercise Price
        in
        effect immediately prior to such adjustment by the number of shares of Common
        Stock issuable upon exercise of this Warrant immediately prior to such
        adjustment and dividing the product so obtained by the adjusted Exercise
        Price.

       

      (e) Consolidation,
        Merger or Sale.
        In case
        of any consolidation of the Company with, or merger of the Company into any
        other corporation, or in case of any sale or conveyance of all or substantially
        all of the assets of the Company other than in connection with a plan of
        complete liquidation of the Company, then as a condition of such consolidation,
        merger or sale or conveyance, adequate provision will be made whereby the
        holder
        of this Warrant will have the right to acquire and receive upon exercise
        of this
        Warrant in lieu of the shares of Common Stock immediately theretofore acquirable
        upon the exercise of this Warrant, such shares of stock, securities or assets
        as
        may be issued or payable with respect to or in exchange for the number of
        shares
        of Common Stock immediately theretofore acquirable and receivable upon exercise
        of this Warrant had such consolidation, merger or sale or conveyance not
        taken
        place. In any such case, the Company will make appropriate provision to insure
        that the provisions of this Paragraph 4 hereof will thereafter be applicable
        as
        nearly as may be in relation to any shares of stock or securities thereafter
        deliverable upon the exercise of this Warrant. The Company will not effect
        any
        consolidation, merger or sale or conveyance unless prior to the consummation
        thereof, the successor corporation (if other than the Company) assumes by
        written instrument the obligations under this Paragraph 4 and the obligations
        to
        deliver to the holder of this Warrant such shares of stock, securities or
        assets
        as, in accordance with the foregoing provisions, the holder may be entitled
        to
        acquire.

       

      
        
          
          

        

        
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      (f) Distribution
        of Assets.
        In case
        the Company shall declare or make any distribution of its assets (including
        cash) to holders of Common Stock as a partial liquidating dividend, by way
        of
        return of capital or otherwise, then, after the date of record for determining
        shareholders entitled to such distribution, but prior to the date of
        distribution, the holder of this Warrant shall be entitled upon exercise
        of this
        Warrant for the purchase of any or all of the shares of Common Stock subject
        hereto, to receive the amount of such assets which would have been payable
        to
        the holder had such holder been the holder of such shares of Common Stock
        on the
        record date for the determination of shareholders entitled to such
        distribution.

       

      (g) Notice
        of Adjustment.
        Upon the
        occurrence of any event which requires any adjustment of the Exercise Price,
        then, and in each such case, the Company shall give notice thereof to the
        holder
        of this Warrant, which notice shall state the Exercise Price resulting from
        such
        adjustment and the increase or decrease in the number of Warrant Shares
        purchasable at such price upon exercise, setting forth in reasonable detail
        the
        method of calculation and the facts upon which such calculation is based.
        Such
        calculation shall be certified by the Chief Financial Officer of the
        Company.

       

      (h) Minimum
        Adjustment of Exercise Price.
        No
        adjustment of the Exercise Price shall be made in an amount of less than
        1% of
        the Exercise Price in effect at the time such adjustment is otherwise required
        to be made, but any such lesser adjustment shall be carried forward and shall
        be
        made at the time and together with the next subsequent adjustment which,
        together with any adjustments so carried forward, shall amount to not less
        than
        1% of such Exercise Price.

       

      (i) No
        Fractional Shares.
        No
        fractional shares of Common Stock are to be issued upon the exercise of this
        Warrant, but the Company shall pay a cash adjustment in respect of any
        fractional share which would otherwise be issuable in an amount equal to
        the
        same fraction of the Market Price of a share of Common Stock on the date
        of such
        exercise.

       

      (j) Other
        Notices.
        In case
        at any time:

       

      (i) the
        Company shall declare any dividend upon the Common Stock payable in shares
        of
        stock of any class or make any other distribution (including dividends or
        distributions payable in cash out of retained earnings) to the holders of
        the
        Common Stock;

       

      (ii) the
        Company shall offer for subscription pro rata to the holders of the Common
        Stock
        any additional shares of stock of any class or other rights;

       

      
        
          
          

        

        
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      (iii) there
        shall be any capital reorganization of the Company, or reclassification of
        the
        Common Stock, or consolidation or merger of the Company with or into, or
        sale of
        all or substantially all its assets to, another corporation or entity;
        or

       

      (iv) there
        shall be a voluntary or involuntary dissolution, liquidation or winding up
        of
        the Company;

       

      then,
        in
        each such case, the Company shall give to the holder of this Warrant (a)
        notice
        of the date on which the books of the Company shall close or a record shall
        be
        taken for determining the holders of Common Stock entitled to receive any
        such
        dividend, distribution, or subscription rights or for determining the holders
        of
        Common Stock entitled to vote in respect of any such reorganization,
        reclassification, consolidation, merger, sale, dissolution, liquidation or
        winding-up and (b) in the case of any such reorganization, reclassification,
        consolidation, merger, sale, dissolution, liquidation or winding-up, notice
        of
        the date (or, if not then known, a reasonable approximation thereof by the
        Company) when the same shall take place. Such notice shall also specify the
        date
        on which the holders of Common Stock shall be entitled to receive such dividend,
        distribution, or subscription rights or to exchange their Common Stock for
        stock
        or other securities or property deliverable upon such reorganization,
        reclassification, consolidation, merger, sale, dissolution, liquidation,
        or
        winding-up, as the case may be. Such notice shall be given at least 30 days
        prior to the record date or the date on which the Company’s books are closed in
        respect thereto. Failure to give any such notice or any defect therein shall
        not
        affect the validity of the proceedings referred to in clauses (i), (ii),
        (iii)
        and (iv) above.

       

      (k) Certain
        Events.
        If any
        event occurs of the type contemplated by the adjustment provisions of this
        Paragraph 4 but not expressly provided for by such provisions, the Company
        will
        give notice of such event as provided in Paragraph 4(g) hereof, and the
        Company’s Board of Directors will make an appropriate adjustment in the Exercise
        Price and the number of shares of Common Stock acquirable upon exercise of
        this
        Warrant so that the rights of the holder shall be neither enhanced nor
        diminished by such event.

       

      (l) Certain
        Definitions. 

       

      (i) “Common
        Stock Deemed Outstanding”
        shall
        mean the number of shares of Common Stock actually outstanding (not including
        shares of Common Stock held in the treasury of the Company), plus (x) pursuant
        to Paragraph 4(b)(i) hereof, the maximum total number of shares of Common
        Stock
        issuable upon the exercise of Options, as of the date of such issuance or
        grant
        of such Options, if any, and (y) pursuant to Paragraph 4(b)(ii) hereof, the
        maximum total number of shares of Common Stock issuable upon conversion or
        exchange of Convertible Securities, as of the date of issuance of such
        Convertible Securities, if any. 

       

      (ii) “Market
        Price,”
        as of
        any date, (i) means the average of the last reported sale prices for the
        shares
        of Common Stock on the OTCBB for the five (5) Trading Days immediately preceding
        such date as reported by Bloomberg, or (ii) if the OTCBB is not the principal
        trading market for the shares of Common Stock, the average of the last reported
        sale prices on the principal trading market for the Common Stock during the
        same
        period as reported by Bloomberg, or (iii) if market value cannot be calculated
        as of such date on any of the foregoing bases, the Market Price shall be
        the
        fair market value as reasonably determined in good faith by (a) the Board
        of
        Directors of the Company or, at the option of a majority-in-interest of the
        holders of the outstanding Warrants by (b) an independent investment bank
        of
        nationally recognized standing in the valuation of businesses similar to
        the
        business of the corporation. The manner of determining the Market Price of
        the
        Common Stock set forth in the foregoing definition shall apply with respect
        to
        any other security in respect of which a determination as to market value
        must
        be made hereunder.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      (iii) “Common
        Stock,”
        for
        purposes of this Paragraph 4, includes the Common Stock, par value $.001
        per
        share, and any additional class of stock of the Company having no preference
        as
        to dividends or distributions on liquidation, provided that the shares
        purchasable pursuant to this Warrant shall include only shares of Common
        Stock,
        par value $.001 per share, in respect of which this Warrant is exercisable,
        or
        shares resulting from any subdivision or combination of such Common Stock,
        or in
        the case of any reorganization, reclassification, consolidation, merger,
        or sale
        of the character referred to in Paragraph 4(e) hereof, the stock or other
        securities or property provided for in such Paragraph.

       

      5. Issue
        Tax. The
        issuance of certificates for Warrant Shares upon the exercise of this Warrant
        shall be made without charge to the holder of this Warrant or such shares
        for
        any issuance tax or other costs in respect thereof, provided that the Company
        shall not be required to pay any tax which may be payable in respect of any
        transfer involved in the issuance and delivery of any certificate in a name
        other than the holder of this Warrant.

       

      6. No
        Rights or Liabilities as a Shareholder. This
        Warrant shall not entitle the holder hereof to any voting rights or other
        rights
        as a shareholder of the Company. No provision of this Warrant, in the absence
        of
        affirmative action by the holder hereof to purchase Warrant Shares, and no
        mere
        enumeration herein of the rights or privileges of the holder hereof, shall
        give
        rise to any liability of such holder for the Exercise Price or as a shareholder
        of the Company, whether such liability is asserted by the Company or by
        creditors of the Company.

       

      7. Transfer,
        Exchange, and Replacement of Warrant.

       

      (a) Restriction
        on Transfer.
        This
        Warrant and the rights granted to the holder hereof are transferable, in
        whole
        or in part, upon surrender of this Warrant, together with a properly executed
        assignment in the form attached hereto, at the office or agency of the Company
        referred to in Paragraph 7(e) below, provided, however, that any transfer
        or assignment shall be subject to the conditions set forth in Paragraph 7(f)
        hereof and to the applicable provisions of the Securities Purchase Agreement.
        Until due presentment for registration of transfer on the books of the Company,
        the Company may treat the registered holder hereof as the owner and holder
        hereof for all purposes, and the Company shall not be affected by any notice
        to
        the contrary. Notwithstanding anything to the contrary contained herein,
        the
        registration rights described in Paragraph 8 are assignable only in accordance
        with the provisions of that certain Registration Rights Agreement, dated
        October
        31, 2006, by and among the Company and the other signatories thereto (the
        “Registration Rights Agreement”).

       

      (b) Warrant
        Exchangeable for Different Denominations.
        This
        Warrant is exchangeable, upon the surrender hereof by the holder hereof at
        the
        office or agency of the Company referred to in Paragraph 7(e) below, for
        new
        Warrants of like tenor representing in the aggregate the right to purchase
        the
        number of shares of Common Stock which may be purchased hereunder, each of
        such
        new Warrants to represent the right to purchase such number of shares as
        shall
        be designated by the holder hereof at the time of such surrender.

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      (c) Replacement
        of Warrant.
        Upon
        receipt of evidence reasonably satisfactory to the Company of the loss, theft,
        destruction, or mutilation of this Warrant and, in the case of any such loss,
        theft, or destruction, upon delivery of an indemnity agreement reasonably
        satisfactory in form and amount to the Company, or, in the case of any such
        mutilation, upon surrender and cancellation of this Warrant, the Company,
        at its
        expense, will execute and deliver, in lieu thereof, a new Warrant of like
        tenor.

       

      (d) Cancellation;
        Payment of Expenses.
        Upon the
        surrender of this Warrant in connection with any transfer, exchange, or
        replacement as provided in this Paragraph 7, this Warrant shall be promptly
        canceled by the Company. The Company shall pay all taxes (other than securities
        transfer taxes) and all other expenses (other than legal expenses, if any,
        incurred by the holder or transferees) and charges payable in connection
        with
        the preparation, execution, and delivery of Warrants pursuant to this Paragraph
        7.

       

      (e) Register.
        The
        Company shall maintain, at its principal executive offices (or such other
        office
        or agency of the Company as it may designate by notice to the holder hereof),
        a
        register for this Warrant, in which the Company shall record the name and
        address of the person in whose name this Warrant has been issued, as well
        as the
        name and address of each transferee and each prior owner of this
        Warrant.

       

      (f) Exercise
        or Transfer Without Registration.
        If, at
        the time of the surrender of this Warrant in connection with any exercise,
        transfer, or exchange of this Warrant, this Warrant (or, in the case of any
        exercise, the Warrant Shares issuable hereunder), shall not be registered
        under
        the Securities Act of 1933, as amended (the “Securities Act”) and under
        applicable state securities or blue sky laws, the Company may require, as
        a
        condition of allowing such exercise, transfer, or exchange, (i) that the
        holder
        or transferee of this Warrant, as the case may be, furnish to the Company
        a
        written opinion of counsel, which opinion and counsel are acceptable to the
        Company, to the effect that such exercise, transfer, or exchange may be made
        without registration under said Act and under applicable state securities
        or
        blue sky laws, (ii) that the holder or transferee execute and deliver to
        the
        Company an investment letter in form and substance acceptable to the Company
        and
        (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)
        promulgated under the Securities Act; provided that no such opinion, letter
        or
        status as an “accredited investor” shall be required in connection with a
        transfer pursuant to Rule 144 under the Securities Act. The first holder
        of this
        Warrant, by taking and holding the same, represents to the Company that such
        holder is acquiring this Warrant for investment and not with a view to the
        distribution thereof. 

       

      8. Registration
        Rights. The
        initial holder of this Warrant (and certain assignees thereof) is entitled
        to
        the benefit of such registration rights in respect of the Warrant Shares
        as are
        set forth in Section 2 of the Registration Rights Agreement.

       

      9. Notices.
        All
        notices, requests, and other communications required or permitted to be given
        or
        delivered hereunder to the holder of this Warrant shall be in writing, and
        shall
        be personally delivered, or shall be sent by certified or registered mail
        or by
        recognized overnight mail courier, postage prepaid and addressed, to such
        holder
        at the address shown for such holder on the books of the Company, or at such
        other address as shall have been furnished to the Company by notice from
        such
        holder. All notices, requests, and other communications required or permitted
        to
        be given or delivered hereunder to the Company shall be in writing, and shall
        be
        personally delivered, or shall be sent by certified or registered mail or
        by
        recognized overnight mail courier, postage prepaid and addressed, to the
        office
        of the Company at 125 Wilbur Place, Suite 120, Bohemia, NY 11716, Attention:
        Chief Executive Officer, or at such other address as shall have been furnished
        to the holder of this Warrant by notice from the Company. Any such notice,
        request, or other communication may be sent by facsimile, but shall in such
        case
        be subsequently confirmed by a writing personally delivered or sent by certified
        or registered mail or by recognized overnight mail courier as provided above.
        All notices, requests, and other communications shall be deemed to have been
        given either at the time of the receipt thereof by the person entitled to
        receive such notice at the address of such person for purposes of this Paragraph
        9, or, if mailed by registered or certified mail or with a recognized overnight
        mail courier upon deposit with the United States Post Office or such overnight
        mail courier, if postage is prepaid and the mailing is properly addressed,
        as
        the case may be.

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

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

       

      11. Miscellaneous.

       

      (a) Amendments.
        This
        Warrant and any provision hereof may only be amended by an instrument in
        writing
        signed by the Company and the holder hereof.

       

      (b) Descriptive
        Headings.
        The
        descriptive headings of the several paragraphs of this Warrant are inserted
        for
        purposes of reference only, and shall not affect the meaning or construction
        of
        any of the provisions hereof.

       

      (c) Cashless
        Exercise.
        Notwithstanding anything to the contrary contained in this Warrant, if the
        resale of the Warrant Shares by the holder is not then registered pursuant
        to an
        effective registration statement under the Securities Act, this Warrant may
        be
        exercised by presentation and surrender of this Warrant to the Company at
        its
        principal executive offices with a written notice of the holder’s intention to
        effect a cashless exercise, including a calculation of the number of shares
        of
        Common Stock to be issued upon such exercise in accordance with the terms
        hereof
        (a “Cashless Exercise”). In the event of a Cashless Exercise, in lieu of paying
        the Exercise Price in cash, the holder shall surrender this Warrant for that
        number of shares of Common Stock determined by multiplying the number of
        Warrant
        Shares to which it would otherwise be entitled by a fraction, the numerator
        of
        which shall be the difference between the then current Market Price per share
        of
        the Common Stock and the Exercise Price, and the denominator of which shall
        be
        the then current Market Price per share of Common Stock. For example, if
        the
        holder is exercising 100,000 Warrants with a per Warrant exercise price of
        $0.75
        per share through a cashless exercise when the Common Stock’s current Market
        Price per share is $2.00 per share, then upon such Cashless Exercise the
        holder
        will receive 62,500 shares of Common Stock.

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

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

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant to be signed by its duly authorized
        officer.

      
        	 	 	 
	 	
                ADVANCE
                  BIOPHOTONICS INC.

              
	 
 	 
 	 
 
	
              	By:  	/s/
                Denis A. O’Connor
	 	
                

                Denis
                  A. O’Connor

                Chief
                  Executive Officer

              
	 	
              

      

      Dated
        as
        of October 31, 2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF EXERCISE AGREEMENT

       

      Dated:
        ________ __, 200_

       

      To: ______________________

       

      The
        undersigned, pursuant to the provisions set forth in the within Warrant,
        hereby
        agrees to purchase ________ shares of Common Stock covered by such Warrant,
        and
        makes payment herewith in full therefor at the price per share provided by
        such
        Warrant in cash or by certified or official bank check in the amount of,
        or, if
        the resale of such Common Stock by the undersigned is not currently registered
        pursuant to an effective registration statement under the Securities Act
        of
        1933, as amended, by surrender of securities issued by the Company (including
        a
        portion of the Warrant) having a market value (in the case of a portion of
        this
        Warrant, determined in accordance with Section 11(c) of the Warrant) equal
        to
        $_________. Please issue a certificate or certificates for such shares of
        Common
        Stock in the name of and pay any cash for any fractional share to:

      
        	 	 	 	 
	 	 	 	 
	
              	 	 	Name:
	
              	 	 	
                
                  

                

              
	
              	 	 	Signature:
	 	 	 	
                
                  

                

              
	 	 	 	Address:
	 	 	 	
                
                  

                

                
                  
 

              
	 	 	 	
                Note: 
The
                  above signature should correspond exactly with the
                  name on the face of the within Warrant, if
                  applicable.

              

      

       

      and,
        if
        said number of shares of Common Stock shall not be all the shares purchasable
        under the within Warrant, a new Warrant is to be issued in the name of said
        undersigned covering the balance of the shares purchasable thereunder less
        any
        fraction of a share paid in cash.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      FORM
        OF ASSIGNMENT

       

      FOR
        VALUE RECEIVED,
        the
        undersigned hereby sells, assigns, and transfers all the rights of the
        undersigned under the within Warrant, with respect to the number of shares
        of
        Common Stock covered thereby set forth hereinbelow, to:

      

      
        	Name of Assignee	Address	No of Shares
	 	 	 
	 	 	 

      

       

      ,
        and
        hereby irrevocably constitutes and appoints ___________________________________
        as agent and attorney-in-fact to transfer said Warrant on the books of the
        within-named corporation, with full power of substitution in the
        premises.

       

      Dated: ________
        __, 200_

      
        
          	 	 	 	 
	In the presence of:	 	 	 
	 	 	 	
                  
                    
 

                
	
                	 	 	Name:
	
                	 	 	
                  
                    

                  

                
	
                	 	 	Signature:
	 	 	 	
                  
                    

                    Title
                      of Signing Officer or Agent (if any):

                  

                
	 	 	 	
                
	 	 	 	Address:
	 	 	 	
                  
                    

                  

                  
                    

                    
  

                
	 	 	 	
                  Note: 
The
                    above signature should correspond exactly with the name on the
                    face of the
                    within Warrant, if
                    applicable.REGISTRATION
        RIGHTS AGREEMENT

       

      REGISTRATION
        RIGHTS AGREEMENT (this “Agreement”),
        dated
        as of October 31, 2006, by and among Advanced Biophotonics Inc., a Delaware
        corporation with its headquarters located at 125 Wilbur Place, Suite 120,
        Bohemia, NY 11716 (the “Company”),
        and
        each of the undersigned (together with their respective affiliates and any
        assignee or transferee of all of their respective rights hereunder, the
“Initial
        Investors”).
        

       

      WHEREAS:

       

      A.  In
        connection with the Securities Purchase Agreement by and among the parties
        hereto of even date herewith (the “Securities Purchase Agreement”), the Company
        has agreed, upon the terms and subject to the conditions contained therein,
        to
        issue and sell to the Initial Investors (i) secured
        convertible notes in the aggregate principal amount of up to Two Million
        Dollars
        ($2,000,000) (the “Notes”) that are convertible into shares of the Company’s
        common stock (the “Common Stock”), upon the terms and subject to the limitations
        and conditions set forth in such Notes and (ii) warrants
        (the “Warrants”) to acquire an aggregate of 40,000,000 shares of Common Stock,
        upon the terms and conditions and subject to the limitations and conditions
        set
        forth in the Warrants; and

       

      B.  To
        induce
        the Initial Investors to execute and deliver the Securities Purchase Agreement,
        the Company has agreed to provide certain registration rights under the
        Securities Act of 1933, as amended, and the rules and regulations thereunder,
        or
        any similar successor statute (collectively, the “1933
        Act”),
        and
        applicable state securities laws;

       

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

       

      1.  DEFINITIONS.

       

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

       

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

       

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

       

      (iii)  “Registrable
        Securities”
means
        the Conversion Shares issued or issuable upon conversion or otherwise pursuant
        to the Notes and Additional Notes (as defined in the Securities Purchase
        Agreement) including, without limitation, Damages Shares (as defined in the
        Notes) issued or issuable pursuant to the Notes, shares of Common Stock issued
        or issuable in payment of the Standard Liquidated Damages Amount (as defined
        in
        the Securities Purchase Agreement), shares issued or issuable in respect
        of
        interest or in redemption of the Notes in accordance with the terms thereof
        and
        any shares of capital stock issued or issuable as a dividend on or in exchange
        for or otherwise with respect to any of the foregoing.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

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

       

      2.  REGISTRATION.

       

      a.  Mandatory
        Registration.
        The
        Company shall prepare, and, on or prior to thirty (30) days from the date
        of
        receipt of written demand of the Investors (the “Filing
        Date”),
        file
        with the SEC a Registration Statement on Form S-3 (or, if Form S-3 is not
        then
        available, on such form of Registration Statement as is then available to
        effect
        a registration of the Registrable Securities, subject to the consent of the
        Initial Investors, which consent will not be unreasonably withheld) covering
        the
        resale of the Registrable Securities underlying the Notes and Warrants issued
        or
        issuable pursuant to the Securities Purchase Agreement, which Registration
        Statement, to the extent allowable under the 1933 Act and the rules and
        regulations promulgated thereunder (including Rule 416), shall state that
        such
        Registration Statement also covers such indeterminate number of additional
        shares of Common Stock as may become issuable upon conversion of or otherwise
        pursuant to the Notes and exercise of the Warrants to prevent dilution resulting
        from stock splits, stock dividends or similar transactions. The number of
        shares
        of Common Stock initially included in such Registration Statement shall be
        no
        less than an amount equal to the sum of the number of Conversion Shares that
        are
        then issuable upon conversion of the Notes (based on the Variable Conversion
        Price as would then be in effect and assuming the Variable Conversion Price
        is
        the Conversion Price at such time) without regard to any limitation on the
        Investor’s ability to convert the Notes. The Company acknowledges that the
        number of shares initially included in the Registration Statement represents
        a
        good faith estimate of the maximum number of shares issuable upon conversion
        of
        the Notes and upon exercise of the Warrants.

       

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

       

      c.  Payments
        by the Company.
        The
        Company shall use its best efforts to obtain effectiveness of the Registration
        Statement as soon as practicable. If (i) the
        Registration Statement(s) covering the Registrable Securities required to
        be
        filed by the Company pursuant to Section 2(a) hereof is not filed by the
        Filing
        Date or declared effective by the SEC on or prior to one hundred and twenty
        (120) days from the date of Closing (as defined in the Securities Purchase
        Agreement), or (ii) after
        the Registration Statement has been declared effective by the SEC, sales
        of all
        of the Registrable Securities cannot be made pursuant to the Registration
        Statement, or (iii) the
        Common Stock is not listed or included for quotation on the Nasdaq National
        Market (“Nasdaq”),
        the
        Nasdaq SmallCap Market (“Nasdaq
        SmallCap”),
        the
        New York Stock Exchange (the “NYSE”)
        or the
        American Stock Exchange (the “AMEX”)
        after
        being so listed or included for quotation after the date hereof, or (iv) the
        Common Stock ceases to be traded on the Over-the-Counter Bulletin Board (the
        “OTCBB”)
        or any
        equivalent replacement exchange prior to being listed or included for quotation
        on one of the aforementioned markets, then the Company will make payments
        to the
        Investors in such amounts and at such times as shall be determined pursuant
        to
        this Section 2(c) as partial relief for the damages to the Investors by reason
        of any such delay in or reduction of their ability to sell the Registrable
        Securities (which remedy shall not be exclusive of any other remedies available
        at law or in equity). The Company shall pay to each holder of the Notes or
        Registrable Securities an amount equal to the then outstanding principal
        amount
        of the Notes (and, in the case of holders of Registrable Securities, the
        principal amount of Notes from which such Registrable Securities were converted)
        (“Outstanding
        Principal Amount”),
        multiplied by the Applicable Percentage (as defined below) times the sum
        of: (i)
        the number of months (prorated for partial months) after the Filing Date
        or the
        end of the aforementioned one hundred and twenty (120) day period and prior
        to
        the date the Registration Statement is declared effective by the SEC, provided,
        however, that there shall be excluded from such period any delays which are
        solely attributable to changes required by the Investors in the Registration
        Statement with respect to information relating to the Investors, including,
        without limitation, changes to the plan of distribution, or to the failure
        of
        the Investors to conduct their review of the Registration Statement pursuant
        to
        Section 3(h) below in a reasonably prompt manner; (ii) the number of months
        (prorated for partial months) that sales of all of the Registrable Securities
        cannot be made pursuant to the Registration Statement after the Registration
        Statement has been declared effective (including, without limitation, when
        sales
        cannot be made by reason of the Company’s failure to properly supplement or
        amend the prospectus included therein in accordance with the terms of this
        Agreement, but excluding any days during an Allowed Delay (as defined in
        Section
        3(f)); and (iii) the number of months (prorated for partial months) that
        the
        Common Stock is not listed or included for quotation on the OTCBB, Nasdaq,
        Nasdaq SmallCap, NYSE or AMEX or that trading thereon is halted after the
        Registration Statement has been declared effective. The term “Applicable
        Percentage”
means
        two hundredths (.02). (For example, if the Registration Statement becomes
        effective one (1) month after the end of such one hundred and twenty (120)
        day
        period, the Company would pay $5,000 for each $250,000 of Outstanding Principal
        Amount. If thereafter, sales could not be made pursuant to the Registration
        Statement for an additional period of one (1) month, the Company would pay
        an
        additional $5,000 for each $250,000 of Outstanding Principal Amount.) Such
        amounts shall be paid in cash or, at the Company’s option, in shares of Common
        Stock priced at the Conversion Price (as defined in the Notes) on such payment
        date. 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

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

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      e.  Eligibility
        for Form S-3, SB-2 or S-1; Conversion to Form S-3.
        The
        Company represents and warrants that it meets the requirements for the use
        of
        Form S-3, SB-2 or S-1 for registration of the sale by the Initial Investors
        and
        any other Investors of the Registrable Securities. The Company agrees to
        file
        all reports required to be filed by the Company with the SEC in a timely
        manner
        so as to remain eligible or become eligible, as the case may be, and thereafter
        to maintain its eligibility, for the use of Form SB-2. If the Company is
        not
        currently eligible to use Form S-3, not later than five (5) business days
        after
        the Company first meets the registration eligibility and transaction
        requirements for the use of Form S-3 (or any successor form) for registration
        of
        the offer and sale by the Initial Investors and any other Investors of
        Registrable Securities, the Company shall file a Registration Statement on
        Form
        S-3 (or such successor form) with respect to the Registrable Securities covered
        by the Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
        filed pursuant to Section 2(a) (and include in such Registration Statement
        on
        Form S-3 the information required by Rule 429 under the 1933 Act) or convert
        the
        Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
        filed
        pursuant to Section 2(a) to a Form S-3 pursuant to Rule 429 under the 1933
        Act
        and cause such Registration Statement (or such amendment) to be declared
        effective no later than sixty (60) days after filing. In the event of a breach
        by the Company of the provisions of this Section 2(e), the Company will be
        required to make payments pursuant to Section 2(c) hereof.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      3.  OBLIGATIONS
        OF THE COMPANY. 

       

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

       

      a.  The
        Company shall prepare promptly, and file with the SEC not later than the
        Filing
        Date, a Registration Statement with respect to the number of Registrable
        Securities provided in Section 2(a), and thereafter use its best efforts
        to
        cause such Registration Statement relating to Registrable Securities to become
        effective as soon as possible after such filing but in no event later than
        one
        hundred and twenty (120) days from the date after receipt of and Investor
        Demand), and keep the Registration Statement effective pursuant to Rule 415
        at
        all times until such date as is the earlier of (i) the date on which all
        of the
        Registrable Securities have been sold and (ii) the date on which the Registrable
        Securities (in the opinion of counsel to the Initial Investors) may be
        immediately sold to the public without registration or restriction (including,
        without limitation, as to volume by each holder thereof) under the 1933 Act
        (the
“Registration
        Period”),
        which
        Registration Statement (including any amendments or supplements thereto and
        prospectuses contained therein) shall not contain any untrue statement of
        a
        material fact or omit to state a material fact required to be stated therein,
        or
        necessary to make the statements therein not misleading.

       

      b.  The
        Company shall prepare and file with the SEC such amendments (including
        post-effective amendments) and supplements to the Registration Statements
        and
        the prospectus used in connection with the Registration Statements as may
        be
        necessary to keep the Registration Statements effective at all times during
        the
        Registration Period, and, during such period, comply with the provisions
        of the
        1933 Act with respect to the disposition of all Registrable Securities of
        the
        Company covered by the Registration Statements until such time as all of
        such
        Registrable Securities have been disposed of in accordance with the intended
        methods of disposition by the seller or sellers thereof as set forth in the
        Registration Statements. In the event the number of shares available under
        a
        Registration Statement filed pursuant to this Agreement is insufficient to
        cover
        all of the Registrable Securities issued or issuable upon conversion of the
        Notes and exercise of the Warrants, the Company shall amend the Registration
        Statement, or file a new Registration Statement (on the short form available
        therefor, if applicable), or both, so as to cover all of the Registrable
        Securities, in each case, as soon as practicable, but in any event within
        fifteen (15) days after the necessity therefor arises (based on the market
        price
        of the Common Stock and other relevant factors on which the Company reasonably
        elects to rely). The Company shall use its best efforts to cause such amendment
        and/or new Registration Statement to become effective as soon as practicable
        following the filing thereof, but in any event within thirty (30) days after
        the
        date on which the Company reasonably first determines (or reasonably should
        have
        determined) the need therefor. The provisions of Section 2(c) above shall
        be
        applicable with respect to such obligation, with the one hundred and twenty
        (120) days running from the day the Company reasonably first determines (or
        reasonably should have determined) the need therefor.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

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

       

      d.  The
        Company shall use reasonable efforts to (i) register
        and qualify the Registrable Securities covered by the Registration Statements
        under such other securities or “blue sky” laws of such jurisdictions in the
        United States as the Investors who hold a majority in interest of the
        Registrable Securities being offered reasonably request, (ii) prepare
        and file in those jurisdictions such amendments (including post-effective
        amendments) and supplements to such registrations and qualifications as may
        be
        necessary to maintain the effectiveness thereof during the Registration Period,
        (iii) take
        such other actions as may be necessary to maintain such registrations and
        qualifications in effect at all times during the Registration Period, and
        (iv) take
        all other actions reasonably necessary or advisable to qualify the Registrable
        Securities for sale in such jurisdictions; provided,
        however,
        that
        the Company shall not be required in connection therewith or as a condition
        thereto to (a) qualify
        to do business in any jurisdiction where it would not otherwise be required
        to
        qualify but for this Section 3(d), (b) subject
        itself to general taxation in any such jurisdiction, (c) file
        a general consent to service of process in any such jurisdiction, (d) provide
        any undertakings that cause the Company undue expense or burden, or (e) make
        any change in its charter or bylaws, which in each case the Board of Directors
        of the Company determines to be contrary to the best interests of the Company
        and its shareholders.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

      h.  The
        Company shall permit a single firm of counsel designated by the Initial
        Investors to review such Registration Statement and all amendments and
        supplements thereto (as well as all requests for acceleration or effectiveness
        thereof) a reasonable period of time prior to their filing with the SEC,
        and not
        file any document in a form to which such counsel reasonably objects and
        will
        not request acceleration of such Registration Statement without prior notice
        to
        such counsel. The sections of such Registration Statement covering information
        with respect to the Investors, the Investor’s beneficial ownership of securities
        of the Company or the Investors intended method of disposition of Registrable
        Securities shall conform to the information provided to the Company by each
        of
        the Investors.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      i.  The
        Company shall make generally available to its security holders as soon as
        practicable, but not later than one hundred and twenty (120) days after the
        close of the period covered thereby, an earnings statement (in form complying
        with the provisions of Rule 158 under the 1933 Act) covering a twelve-month
        period beginning not later than the first day of the Company’s fiscal quarter
        next following the effective date of the Registration Statement.

       

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

       

      k.  The
        Company shall make available for inspection by (i) any
        Investor, (ii) any
        underwriter participating in any disposition pursuant to a Registration
        Statement, (iii) one
        firm of attorneys and one firm of accountants or other agents retained by
        the
        Initial Investors, (iv) one
        firm of attorneys and one firm of accountants or other agents retained by
        all
        other Investors, and (v) one
        firm of attorneys retained by all such underwriters (collectively, the
“Inspectors”)
        all
        pertinent financial and other records, and pertinent corporate documents
        and
        properties of the Company, including without limitation, records of conversions
        by other holders of convertible securities issued by the Company and the
        issuance of stock to such holders pursuant to the conversions (collectively,
        the
“Records”),
        as
        shall be reasonably deemed necessary by each Inspector to enable each Inspector
        to exercise its due diligence responsibility, and cause the Company’s officers,
        directors and employees to supply all information which any Inspector may
        reasonably request for purposes of such due diligence; provided,
        however,
        that
        each Inspector shall hold in confidence and shall not make any disclosure
        (except to an Investor) of any Record or other information which the Company
        determines in good faith to be confidential, and of which determination the
        Inspectors are so notified, unless (a) the
        disclosure of such Records is necessary to avoid or correct a misstatement
        or
        omission in any Registration Statement, (b) the
        release of such Records is ordered pursuant to a subpoena or other order
        from a
        court or government body of competent jurisdiction, or (c) the
        information in such Records has been made generally available to the public
        other than by disclosure in violation of this or any other agreement. The
        Company shall not be required to disclose any confidential information in
        such
        Records to any Inspector until and unless such Inspector shall have entered
        into
        confidentiality agreements (in form and substance satisfactory to the Company)
        with the Company with respect thereto, substantially in the form of this
        Section
        3(k). Each Investor agrees that it shall, upon learning that disclosure of
        such
        Records is sought in or by a court or governmental body of competent
        jurisdiction or through other means, give prompt notice to the Company and
        allow
        the Company, at its expense, to undertake appropriate action to prevent
        disclosure of, or to obtain a protective order for, the Records deemed
        confidential. Nothing herein (or in any other confidentiality agreement between
        the Company and any Investor) shall be deemed to limit the Investor’s ability to
        sell Registrable Securities in a manner which is otherwise consistent with
        applicable laws and regulations. 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

      o.  The
        Company shall cooperate with the Investors who hold Registrable Securities
        being
        offered and the managing underwriter or underwriters, if any, to facilitate
        the
        timely preparation and delivery of certificates (not bearing any restrictive
        legends) representing Registrable Securities to be offered pursuant to a
        Registration Statement and enable such certificates to be in such denominations
        or amounts, as the case may be, as the managing underwriter or underwriters,
        if
        any, or the Investors may reasonably request and registered in such names
        as the
        managing underwriter or underwriters, if any, or the Investors may request,
        and,
        within three (3) business days after a Registration Statement which includes
        Registrable Securities is ordered effective by the SEC, the Company shall
        deliver, and shall cause legal counsel selected by the Company to deliver,
        to
        the transfer agent for the Registrable Securities (with copies to the Investors
        whose Registrable Securities are included in such Registration Statement)
        an
        instruction in the form attached hereto as Exhibit
        1
        and an
        opinion of such counsel in the form attached hereto as Exhibit 2.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

      4.  OBLIGATIONS
        OF THE INVESTORS.

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

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

       

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

       

      5.  EXPENSES
        OF REGISTRATION.

       

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

       

      6.  INDEMNIFICATION.
        

       

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

       

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

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

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

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

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

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      7.  CONTRIBUTION.

       

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

       

      8.  REPORTS
        UNDER THE 1934 ACT.

       

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

       

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

       

      b.  file
        with
        the SEC in a timely manner all reports and other documents required of the
        Company under the 1933 Act and the 1934 Act so long as the Company remains
        subject to such requirements (it being understood that nothing herein shall
        limit the Company’s obligations under Section 4(c) of the Securities Purchase
        Agreement) and the filing of such reports and other documents is required
        for
        the applicable provisions of Rule 144; and

       

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

       

      9.  ASSIGNMENT
        OF REGISTRATION RIGHTS.

       

      The
        rights under this Agreement shall be automatically assignable by the Investors
        to any transferee of all or any portion of Registrable Securities if:
        (i) the Investor agrees in writing with the transferee or assignee to
        assign such rights, and a copy of such agreement is furnished to the Company
        within a reasonable time after such assignment, (ii) the Company is, within
        a reasonable time after such transfer or assignment, furnished with written
        notice of (a) the
        name and address of such transferee or assignee, and (b) the
        securities with respect to which such registration rights are being transferred
        or assigned, (iii) following such transfer or assignment, the further
        disposition of such securities by the transferee or assignee is restricted
        under
        the 1933 Act and applicable state securities laws, (iv) at or before the
        time
        the Company receives the written notice contemplated by clause (ii) of this
        sentence, the transferee or assignee agrees in writing with the Company to
        be
        bound by all of the provisions contained herein, (v) such transfer shall
        have
        been made in accordance with the applicable requirements of the Securities
        Purchase Agreement, and (vi) such transferee shall be an “accredited
        investor”
as
        that
        term defined in Rule 501 of Regulation D promulgated under the 1933
        Act.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      10.  AMENDMENT
        OF REGISTRATION RIGHTS. 

       

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

       

      11.  MISCELLANEOUS.

       

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

       

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

       

      If
        to the
        Company:

       

      Advanced
        Biophotonics Inc.

      125
        Wilbur Place, Suite 120

      Bohemia,
        NY 11716

      Attention:
        Chief Executive Officer

      Telephone:
        (631) 543-3655

      Facsimile:
        (631) 244-7960

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      With
        a
        copy to:

       

      Sichenzia
        Ross Friedman Ference LLP

      1065
        Avenue of the Americas

      New
        York,
        NY 10018

      Attention:
        Gregory Sichenzia, Esq.

      Telephone:
        (212) 930-9700

      Facsimile:
        (212) 930-9725

       

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

       

      With
        a
        copy to:

       

      Ballard
        Spahr Andrews & Ingersoll, LLP

      1735
        Market Street

      51st
        Floor

      Philadelphia,
        Pennsylvania 19103

      Attention:
        Gerald J. Guarcini, Esq.

      Telephone:
        215-865-8625

      Facsimile:
        215-864-8999

       

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

       

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

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

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

       

      f.  This
        Agreement, the Notes, the Warrants and the Securities Purchase Agreement
        (including all schedules and exhibits thereto) constitute the entire agreement
        among the parties hereto with respect to the subject matter hereof and thereof.
        There are no restrictions, promises, warranties or undertakings, other than
        those set forth or referred to herein and therein. This Agreement and the
        Securities Purchase Agreement supersede all prior agreements and understandings
        among the parties hereto with respect to the subject matter hereof and
        thereof.

       

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

       

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

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

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

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

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

       

      
        	 	 	 	 
	
                ADVANCED
                  BIOPHOTONICS INC.

              	 	 	 
	
                 

                 

              	 	 	 
	/s/
                Denis A.
                O’Connor	 	 	 
	
                

                Denis
                  A. O’Connor

                Chief
                  Executive Officer

              	 	 	
              

      

       

      
        	 	 	 	 
	
                AJW
                  PARTNERS, LLC

                
                  By:
                    SMS Group, LLC

                

              	 	 	 
	
                 

                 

              	 	 	 
	/s/ Corey S. Ribotsky	 	 	 
	
                

                
                  Corey
                    S. Ribotsky

                  Manager
                    

                

              	 	 	
              

      

       

      
        	 	 	 	 
	
                
                  AJW
                    OFFSHORE, LTD.

                  
                    By:
                      First Street Manager II, LLC

                  

                

              	 	 	 
	
                 

                 

              	 	 	 
	/s/ Corey S. Ribotsky	 	 	 
	
                

                
                  
                    Corey
                      S. Ribotsky

                    Manager

                  

                

              	 	 	
              

      

       
        
        	 	 	 	 
	
                AJW
                  QUALIFIED PARTNERS, LLC

                
                  By:
                    AJW Manager, LLC

                

              	 	 	 
	
                 

                 

              	 	 	 
	/s/ Corey S. Ribotsky	 	 	 
	
                

                
                  Corey
                    S. Ribotsky

                  Manager

                

              	 	 	
              

      

       

      
        	 	 	 	 
	
                
                  NEW
                    MILLENNIUM CAPITAL PARTNERS, II, LLC

                  By:
                    First Street Manager II, LLC

                

              	 	 	 
	
                 

                 

              	 	 	 
	/s/ Corey S. Ribotsky	 	 	 
	
                

                
                  
                    Corey
                      S. Ribotsky

                    Manager

                  

                

              	 	 	
              

      

       

      
        
          
          

        

        
          19

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