Document:

Exhibit
      10.3

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”) is made and entered into as of
      August 22, 2006, by and between Patients & Physicians, Inc., a Delaware
      corporation (the “Company”), and Laurus Master Fund, Ltd. (the
“Purchaser”).

    

    This
      Agreement is made pursuant to the Amended and Restated Securities Purchase
      Agreement, dated as of the date hereof, by and among the Purchaser, the Company
      and Flagship Patient Advocates, Inc., a Delaware corporation (“Flagship”) (as
      amended, modified or supplemented from time to time, the “Securities Purchase
      Agreement”), and pursuant to the Note and the Warrants referred to
      therein.

    

    The
      Company and the Purchaser hereby agree as follows:

    

    1. Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Securities Purchase Agreement shall have the meanings given such terms in the
      Securities Purchase Agreement. As used in this Agreement, the following terms
      shall have the following meanings:

    

    “Closing
      Shares” has
      the
      meaning set forth in the Securities Purchase Agreement.

    

    “Commission”
means
      the Securities and Exchange Commission.

    

    “Common
      Stock”
means
      shares of the Company’s common stock, par value $0.001 per share.

    

    “Effectiveness
      Date”
means
      (i) with respect to the initial Registration Statement required to be filed
      pursuant to Section 2, a date no later than one hundred twenty (120) days
      following the applicable Filing Date and (ii) with respect to each additional
      Registration Statement required to be filed hereunder, a date no later than
      thirty (30) days following the applicable Filing Date.

    

    “Effectiveness
      Period”
has
      the
      meaning set forth in Section 2(b).

    

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and any successor
      statute.

    

    “Filing
      Date”
means,
      with respect to (i) the Closing Shares, the indebtedness evidenced by the Note,
      and the shares of Common Stock issuable upon exercise of the Warrant, a date
      no
      later than August 30, 2006 and (ii) with respect to the shares of Common Stock
      issuable to the Holder as a result of adjustments to the Fixed Conversion Price
      made pursuant to Section 3.6 of the Note or adjustments made pursuant to Section
      4 of the Warrant or otherwise, a date no later than thirty (30) days after
      the
      occurrence of such event or the date of the adjustment of the Fixed Conversion
      Price.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Holder”
or
      “Holders”
means
      the Purchaser or any of its affiliates or transferees to the extent any of
      them
      hold Registrable Securities, other than those purchasing Registrable Securities
      in a market transaction.

    

    “Indemnified
      Party”
has
      the
      meaning set forth in Section 5(c).

    

    “Indemnifying
      Party”
has
      the
      meaning set forth in Section 5(c).

    

    “Note”
has
      the
      meaning set forth in the Securities Purchase Agreement.

    

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

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

    

    “Registrable
      Securities”
means
      the Closing Shares, shares of Common Stock issued upon the conversion of the
      Note and issuable upon exercise of the Warrants.

    

    “Registration
      Statement”
means
      each registration statement required to be filed hereunder, including the
      Prospectus therein, amendments and supplements to such registration statement
      or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

    

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and any successor statute.

    

    “Securities
      Purchase Agreement”
has
      the
      meaning given to such term in the Preamble hereto.

    

    “Trading
      Day”
means
      each day the Trading Market on which the Common Stock is traded is open and
      available to trade securities.

    

    
      
         

      

      
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    “Trading
      Market”
means
      any of the NASD OTC Bulletin Board, NASDAQ SmallCap Market, the Nasdaq National
      Market, the American Stock Exchange or the New York Stock Exchange.

    

    “Warrants”
means
      the Common Stock purchase warrants issued pursuant to the Securities Purchase
      Agreement.

    

    2. Registration.

    

    (a) On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission a Registration Statement covering the Registrable Securities for
      a
      selling stockholder resale offering to be made on a continuous basis pursuant
      to
      Rule 415. The Registration Statement shall be on Form S-3 (except if the Company
      is not then eligible to register for resale the Registrable Securities on Form
      S-3, in which case such registration shall be on another appropriate form in
      accordance herewith). The Company shall cause each Registration Statement to
      become effective and remain effective as provided herein. The Company shall
      use
      its best efforts to cause each Registration Statement to be declared effective
      under the Securities Act as promptly as possible after the filing thereof,
      but
      in any event no later than the Effectiveness Date. The Company shall use its
      best efforts to keep each Registration Statement continuously effective under
      the Securities Act until the date which is the earlier date of when (i) all
      Registrable Securities have been sold or (ii) all Registrable Securities covered
      by such Registration Statement may be sold immediately without registration
      under the Securities Act and without volume restrictions pursuant to Rule
      144(k), as determined by the counsel to the Company pursuant to a written
      opinion letter to such effect, addressed and acceptable to the Company’s
      transfer agent and the affected Holders (the “Effectiveness
      Period”).

    

    (b) If:
      (i)
      any Registration Statement is not filed on or prior to the applicable Filing
      Date; (ii) a Registration Statement filed hereunder is not declared effective
      by
      the Commission by the applicable Effectiveness Date; (iii) after a Registration
      Statement is filed with and declared effective by the Commission, a
      Discontinuation Event (as hereafter defined) shall occur and be continuing,
      or
      such Registration Statement ceases to be effective (by suspension or otherwise)
      as to all Registrable Securities to which it is required to relate at any time
      prior to the expiration of the Effectiveness Period applicable to such
      Registration Statement (without being succeeded immediately by an additional
      Registration Statement filed and declared effective), for a period of time
      which
      shall exceed 30 days in the aggregate per year (defined as a period of 365
      days
      commencing on the date such Registration Statement is declared effective) or
      more than 20 consecutive calendar days; or (iv) the Common Stock is not listed
      or quoted, or is suspended from trading on any Trading Market for a period
      of
      three (3) consecutive Trading Days (provided the Company shall not have been
      able to cure such trading suspension within 30 days of the notice thereof or
      list the Common Stock on another Trading Market) (any such failure or breach
      as
      described in clauses (i) through (iv) being referred to as an “Event,” and for
      purposes of clause (i) or (ii) the date on which such Event occurs, or for
      purposes of clause (iii) the date which such 30 day or 20 consecutive day period
      (as the case may be) is exceeded, or for purposes of clause (iv) to the extent
      applicable, the date on which such three (3) Trading Day period is exceeded,
      being referred to as an “Event Date”); then by reason of the occurrence of any
      such Event, Purchaser shall be entitled to all of its remedies available to
      it
      at law or in equity, including, without limitation, the Securities Purchase
      Agreement and the Related Agreements.

    

    
      
         

      

      
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    (c) Within
      three business days of the Effectiveness Date, the Company shall cause its
      counsel to issue a blanket opinion in the form attached hereto as Exhibit A to
      the transfer agent stating that the shares are subject to an effective
      registration statement and can be reissued free of restrictive legend upon
      notice of a sale by the Purchaser and confirmation by the Purchaser that it
      has
      complied with the prospectus delivery requirements, provided that the Company
      has not advised the transfer agent orally or in writing that the opinion has
      been withdrawn. Copies of the blanket opinion required by this Section 2(c)
      shall be delivered to the Purchaser within the time frame set forth
      above.

    

    3. Registration
      Procedures.
      If and
      whenever the Company is required by the provisions hereof to effect the
      registration of any Registrable Securities under the Securities Act, the Company
      will, as expeditiously as possible:

    

    (a) prepare
      and file with the Commission a Registration Statement with respect to such
      Registrable Securities, respond as promptly as possible to any comments received
      from the Commission, and use its best efforts to cause such Registration
      Statement to become and remain effective for the Effectiveness Period with
      respect thereto, and promptly provide to the Purchaser copies of all filings
      and
      Commission letters of comment relating thereto;

    

    (b) prepare
      and file with the Commission such amendments and supplements to such
      Registration Statement and the Prospectus used in connection therewith as may
      be
      necessary to comply with the provisions of the Securities Act with respect
      to
      the disposition of all Registrable Securities covered by such Registration
      Statement and to keep such Registration Statement effective until the expiration
      of the Effectiveness Period applicable to such Registration
      Statement;

    

    (c) furnish
      to the Purchaser such number of copies of the Registration Statement and the
      Prospectus included therein (including each preliminary Prospectus) as the
      Purchaser reasonably may request to facilitate the public sale or disposition
      of
      the Registrable Securities covered by such Registration Statement;

    

    (d) use
      its
      commercially reasonable efforts to register or qualify the Purchaser’s
      Registrable Securities covered by such Registration Statement under the
      securities or “blue sky” laws of such jurisdictions within the United States as
      the Purchaser may reasonably request, provided, however, that the Company shall
      not for any such purpose be required to qualify generally to transact business
      as a foreign corporation in any jurisdiction where it is not so qualified or
      to
      consent to general service of process in any such jurisdiction;

    

    (e) list
      or
      have quoted the Registrable Securities covered by such Registration Statement
      with any securities exchange or quotation service on which the Common Stock
      of
      the Company is then listed or quoted;

    

    
      
         

      

      
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    (f) immediately
      notify the Purchaser at any time when a Prospectus relating thereto is required
      to be delivered under the Securities Act, of the happening of any event of
      which
      the Company has knowledge as a result of which the Prospectus contained in
      such
      Registration Statement, as then in effect, includes an untrue statement of
      a
      material fact or omits to state a material fact required to be stated therein
      or
      necessary to make the statements therein not misleading in light of the
      circumstances then existing; and

    

    (g) make
      available for inspection by the Purchaser and any attorney, accountant or other
      agent retained by the Purchaser, all publicly available, non-confidential
      financial and other records, pertinent corporate documents and properties of
      the
      Company, and cause the Company’s officers, directors and employees to supply all
      publicly available, non-confidential information reasonably requested by the
      attorney, accountant or agent of the Purchaser.

    

    4. Registration
      Expenses.
      All
      expenses relating to the Company’s compliance with Sections 2 and 3 hereof,
      including, without limitation, all registration and filing fees, printing
      expenses, fees and disbursements of counsel and independent public accountants
      for the Company, fees and expenses (including reasonable counsel fees) incurred
      in connection with complying with state securities or “blue sky” laws, fees of
      the NASD, transfer taxes, fees of transfer agents and registrars, and fees
      of,
      and disbursements incurred by, one counsel for the Holders, are called
“Registration Expenses”. All selling commissions applicable to the sale of
      Registrable Securities, including any fees and disbursements of any special
      counsel to the Holders beyond those included in Registration Expenses, are
      called “Selling Expenses.” The Company shall only be responsible for all
      Registration Expenses.

    

    5. Indemnification.

    

    (a) In
      the
      event of a registration of any Registrable Securities under the Securities
      Act
      pursuant to this Agreement, the Company and Flagship will, jointly and
      severally, indemnify and hold harmless each Holder, and its officers, directors
      and each other person, if any, who controls such Holder within the meaning
      of
      the Securities Act, against any losses, claims, damages or liabilities, joint
      or
      several, to which such Holder, or such persons may become subject under the
      Securities Act or otherwise, insofar as such losses, claims, damages or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any
      untrue statement or alleged untrue statement of any material fact contained
      in
      any Registration Statement under which such Registrable Securities were
      registered under the Securities Act pursuant to this Agreement, any preliminary
      Prospectus or final Prospectus contained therein, or any amendment or supplement
      thereof, or arise out of or are based upon the omission or alleged omission
      to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading, and will reimburse such Holder, and
      each
      such person for any reasonable legal or other expenses incurred by them in
      connection with investigating or defending any such loss, claim, damage,
      liability or action; provided,
      however,
      that
      neither the Company nor Flagship will be liable in any such case if and to
      the
      extent that any such loss, claim, damage or liability arises out of or is based
      upon an untrue statement or alleged untrue statement or omission or alleged
      omission so made in conformity with information furnished by or on behalf of
      the
      Purchaser or any such person in writing specifically for use in any such
      document.

    

    
      
         

      

      
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    (b) In
      the
      event of a registration of the Registrable Securities under the Securities
      Act
      pursuant to this Agreement, the Purchaser will indemnify and hold harmless
      the
      Company, and its officers, directors and each other person, if any, who controls
      the Company within the meaning of the Securities Act, against all losses,
      claims, damages or liabilities, joint or several, to which the Company or such
      persons may become subject under the Securities Act or otherwise, insofar as
      such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon any untrue statement or alleged untrue statement
      of any material fact which was furnished in writing by the Purchaser to the
      Company expressly for use in (and such information is contained in) the
      Registration Statement under which such Registrable Securities were registered
      under the Securities Act pursuant to this Agreement, any preliminary Prospectus
      or final Prospectus contained therein, or any amendment or supplement thereof,
      or arise out of or are based upon the omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, and will reimburse the Company and each
      such
      person for any reasonable legal or other expenses incurred by them in connection
      with investigating or defending any such loss, claim, damage, liability or
      action, provided,
      however,
      that
      the Purchaser will be liable in any such case if and only to the extent that
      any
      such loss, claim, damage or liability arises out of or is based upon an untrue
      statement or alleged untrue statement or omission or alleged omission so made
      in
      conformity with information furnished in writing to the Company by or on behalf
      of the Purchaser specifically for use in any such document. Notwithstanding
      the
      provisions of this paragraph, the Purchaser shall not be required to indemnify
      any person or entity in excess of the amount of the aggregate net proceeds
      received by the Purchaser in respect of Registrable Securities in connection
      with any such registration under the Securities Act.

    

    (c) Promptly
      after receipt by a party entitled to claim indemnification hereunder (an
“Indemnified Party”) of notice of the commencement of any action, such
      Indemnified Party shall, if a claim for indemnification in respect thereof
      is to
      be made against a party hereto obligated to indemnify such Indemnified Party
      (an
“Indemnifying Party”), notify the Indemnifying Party in writing thereof, but the
      omission so to notify the Indemnifying Party shall not relieve it from any
      liability which it may have to such Indemnified Party other than under this
      Section 5(c) and shall only relieve it from any liability which it may have
      to
      such Indemnified Party under this Section 5(c) if and to the extent the
      Indemnifying Party is prejudiced by such omission. In case any such action
      shall
      be brought against any Indemnified Party and such Indemnified Party shall have
      notified the Indemnifying Party of the commencement thereof, the Indemnifying
      Party shall be entitled to participate in and, to the extent it shall wish,
      to
      assume and undertake the defense thereof with counsel satisfactory to such
      Indemnified Party, and, after notice from the Indemnifying Party to such
      Indemnified Party of its election so to assume and undertake the defense
      thereof, the Indemnifying Party shall not be liable to such Indemnified Party
      under this Section 5(c) for any legal expenses subsequently incurred by such
      Indemnified Party in connection with the defense thereof; if the Indemnified
      Party retains its own counsel, then the Indemnified Party shall pay all fees,
      costs and expenses of such counsel, provided,
      however,
      that,
      if the defendants in any such action include both the Indemnified Party and
      the
      Indemnifying Party and the Indemnified Party shall have reasonably concluded
      that there may be reasonable defenses available to it which are different from
      or additional to those available to the Indemnifying Party or if the interests
      of the Indemnified Party reasonably may be deemed to conflict with the interests
      of the Indemnifying Party, the Indemnified Party shall have the right to select
      one separate counsel and to assume such legal defenses and otherwise to
      participate in the defense of such action, with the reasonable expenses and
      fees
      of such separate counsel and other expenses related to such participation to
      be
      reimbursed by the Indemnifying Party as incurred.

    

    
      
         

      

      
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    (d) In
      order
      to provide for just and equitable contribution in the event of joint liability
      under the Securities Act in any case in which either (i) the Purchaser, or
      any
      officer, director or controlling person of the Purchaser, makes a claim for
      indemnification pursuant to this Section 5 but it is judicially determined
      (by
      the entry of a final judgment or decree by a court of competent jurisdiction
      and
      the expiration of time to appeal or the denial of the last right of appeal)
      that
      such indemnification may not be enforced in such case notwithstanding the fact
      that this Section 5 provides for indemnification in such case, or (ii)
      contribution under the Securities Act may be required on the part of the
      Purchaser or such officer, director or controlling person of the Purchaser
      in
      circumstances for which indemnification is provided under this Section 5; then,
      and in each such case, the Company and the Purchaser will contribute to the
      aggregate losses, claims, damages or liabilities to which they may be subject
      (after contribution from others) in such proportion so that the Purchaser is
      responsible only for the portion represented by the percentage that the public
      offering price of its securities offered by the Registration Statement bears
      to
      the public offering price of all securities offered by such Registration
      Statement, provided,
      however,
      that,
      in any such case, (A) the Purchaser will not be required to contribute any
      amount in excess of the public offering price of all such securities offered
      by
      it pursuant to such Registration Statement; and (B) no person or entity guilty
      of fraudulent misrepresentation (within the meaning of Section 10(f) of the
      Act)
      will be entitled to contribution from any person or entity who was not guilty
      of
      such fraudulent misrepresentation.

    

    6. Representations
      and Warranties.

    

    (a) The
      Common Stock shall be registered pursuant to Section 12(b) or 12(g) of the
      Exchange Act and, the Company shall timely file all proxy statements, reports,
      schedules, forms, statements and other documents required to be filed by it
      under the Exchange Act. The Company shall file (i) its Annual Reports on Form
      10-KSB and (ii) its Quarterly Reports on Form 10-QSB (collectively, the “SEC
      Reports”). Each SEC Report shall be, at the time of its filing, in substantial
      compliance with the requirements of its respective form and none of the SEC
      Reports, nor the financial statements (and the notes thereto) included in the
      SEC Reports, as of their respective filing dates, shall contain any untrue
      statement of a material fact or omit to state a material fact required to be
      stated therein or necessary to make the statements therein, in light of the
      circumstances under which they were made, not misleading. The financial
      statements of the Company included in the SEC Reports shall comply as to form
      in
      all material respects with applicable accounting requirements and the published
      rules and regulations of the Commission or other applicable rules and
      regulations with respect thereto. Such financial statements shall be prepared
      in
      accordance with generally accepted accounting principles (“GAAP”) applied on a
      consistent basis during the periods involved (except (i) as may be otherwise
      indicated in such financial statements or the notes thereto or (ii) in the
      case
      of unaudited interim statements, to the extent they may not include footnotes
      or
      may be condensed) and fairly present in all material respects the financial
      condition, the results of operations and the cash flows of the Company and
      its
      subsidiaries, on a consolidated basis, as of, and for, the periods presented
      in
      each such SEC Report.

    

    
      
         

      

      
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    (b) The
      Common Stock shall be listed for trading on a Trading Market and the Company
      shall satisfy all requirements for the continuation of such listing, and the
      Company shall do all things necessary for the continuation of such quotation.
      

    

    (c) Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has directly or indirectly made any offers or sales of any security
      or
      solicited any offers to buy any security under circumstances that would cause
      the offering of the Securities pursuant to the Securities Purchase Agreement
      to
      be integrated with prior offerings by the Company for purposes of the Securities
      Act which would prevent the Company from selling the Common Stock pursuant
      to
      Rule 506 under the Securities Act, or any applicable exchange-related
      stockholder approval provisions, nor will the Company or any of its affiliates
      or subsidiaries take any action or steps that would cause the offering of the
      Securities to be integrated with other offerings.

    

    (d) The
      Closing Shares, the Warrants, the Note and the shares of Common Stock which
      the
      Purchaser may acquire pursuant to the Warrants and the Note are all restricted
      securities under the Securities Act as of the date of this Agreement. The
      Company will not issue any stop transfer order or other order impeding the
      sale
      and delivery of any of the Registrable Securities at such time as such
      Registrable Securities are registered for public sale or an exemption from
      registration is available, except as required by federal or state securities
      laws.

    

    (e) The
      Company understands the nature of the Registrable Securities issuable upon
      the
      conversion of the Note and the exercise of the Warrant and recognizes that
      the
      issuance of such Registrable Securities may have a potential dilutive effect.
      The Company specifically acknowledges that its obligation to issue the
      Registrable Securities is binding upon the Company and enforceable regardless
      of
      the dilution such issuance may have on the ownership interests of other
      shareholders of the Company.

    

    (f) Except
      for agreements made in the ordinary course of business, the Company shall file
      all agreements with the Commission as an exhibit to a registration statement
      or
      to a form required to be filed by the Company under the Exchange Act, the
      failure of which could reasonably be expected to have a material and adverse
      effect on the Company and its subsidiaries, or would prohibit or otherwise
      interfere with the ability of the Company to enter into and perform any of
      its
      obligations under this Agreement in any material respect.

    

    
      
         

      

      
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    (g) The
      Company will at all times have authorized and reserved a sufficient number
      of
      shares of Common Stock for the full conversion of the Note and exercise of
      the
      Warrants.

    

    7. Miscellaneous.

    

    (a) Remedies.
      In the
      event of a breach by the Company or by a Holder of any of their respective
      obligations under this Agreement, each Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement, including recovery of damages, will be entitled to
      specific performance of its rights under this Agreement.

    

    (b) No
      Piggyback on Registrations.
      Except
      to the extent set forth on Schedule 7(b) hereto, neither the Company nor any
      of
      its security holders (other than the Holders in such capacity pursuant hereto)
      may include securities of the Company in any Registration Statement other than
      the Registrable Securities, and the Company shall not after the date hereof
      enter into any agreement providing any such right for inclusion of shares in
      the
      Registration Statement to any of its security holders. Except as and to the
      extent specified in Schedule 7(b) hereto, the Company has not previously entered
      into any agreement granting any registration rights with respect to any of
      its
      securities to any person or entity that have not been fully
      satisfied.

    

    (c) Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to any Registration Statement.

    

    (d) Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of a Discontinuation
      Event (as defined below), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the applicable Registration Statement until
      such Holder’s receipt of the copies of the supplemented Prospectus and/or
      amended Registration Statement or until it is advised in writing (the “Advice”)
      by the Company that the use of the applicable Prospectus may be resumed, and,
      in
      either case, has received copies of any additional or supplemental filings
      that
      are incorporated or deemed to be incorporated by reference in such Prospectus
      or
      Registration Statement. The Company may provide appropriate stop orders to
      enforce the provisions of this paragraph. For purposes of this Section 7(d),
      a
“Discontinuation Event” shall mean (i) when the Commission notifies the Company
      whether there will be a “review” of such Registration Statement and whenever the
      Commission comments in writing on such Registration Statement (the Company
      shall
      provide true and complete copies thereof and all written responses thereto
      to
      each of the Holders); (ii) any request by the Commission or any other Federal
      or
      state governmental authority for amendments or supplements to such Registration
      Statement or Prospectus or for additional information; (iii) the issuance by
      the
      Commission of any stop order suspending the effectiveness of such Registration
      Statement covering any or all of the Registrable Securities or the initiation
      of
      any Proceedings for that purpose; (iv) the receipt by the Company of any
      notification with respect to the suspension of the qualification or exemption
      from qualification of any of the Registrable Securities for sale in any
      jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and/or (v) the occurrence of any event or passage of time that makes
      the financial statements included in such Registration Statement ineligible
      for
      inclusion therein or any statement made in such Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      such
      Registration Statement, Prospectus or other documents so that, in the case
      of
      such Registration Statement or Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (e) Piggy-Back
      Registrations.
      If at
      any time during any Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities required to be covered
      during such Effectiveness Period and the Company shall determine to prepare
      and
      file with the Commission a registration statement relating to an offering for
      its own account or the account of others under the Securities Act of any of
      its
      equity securities, other than on Form S-4 or Form S-8 (each as promulgated
      under
      the Securities Act) 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 employee
      benefit plans, then the Company shall send to each Holder written notice of
      such
      determination and, if within fifteen (15) days after receipt of such notice,
      any
      such Holder shall so request in writing, the Company shall include in such
      registration statement all or any part of such Registrable Securities such
      Holder requests to be registered to the extent the Company may do so without
      violating registration rights of others which exist as of the date of this
      Agreement, subject to customary underwriter cutbacks applicable to all holders
      of registration rights and subject to obtaining any required consent of any
      selling stockholder(s) to such inclusion under such registration
      statement.

    

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart from
      the provisions hereof with respect to a matter that relates exclusively to
      the
      rights of certain Holders and that does not directly or indirectly affect the
      rights of other Holders may be given by Holders of at least a majority of the
      Registrable Securities to which such waiver or consent relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the immediately preceding
      sentence.

    

    (g) Notices.
      Any
      notice or request hereunder may be given to the Company or the Purchaser at
      the
      respective addresses set forth below or as may hereafter be specified in a
      notice designated as a change of address under this Section 7(g). Any notice
      or
      request hereunder shall be given by registered or certified mail, return receipt
      requested, hand delivery, overnight mail, Federal Express or other national
      overnight next day carrier (collectively, “Courier”) or telecopy (confirmed by
      mail). Notices and requests shall be, in the case of those by hand delivery,
      deemed to have been given when delivered to any party to whom it is addressed;
      in the case of those by mail or overnight mail, deemed to have been given three
      (3) business days after the date when deposited in the mail or with the
      overnight mail carrier; in the case of a Courier, the next business day
      following timely delivery of the package with the Courier; and, in the case
      of a
      telecopy, when confirmed. The address for such notices and communications shall
      be as follows:

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	 	
              If
                to the Company or Flagship:

            	
              c/o
                Flagship Patient Advocates, Inc.

              
                432
                  Park Avenue South, 13th
                  Floor

                New
                  York, NY 10016

                Attention:
                  Chief Financial Officer

                Facsimile:
                  212-340-9101

                with
                  a copy to:

                Robert
                  S. Matlin

                Kirkpatrick
                  & Lockhart Nicholson Graham LLP

                599
                  Lexington Avenue

                New
                  York, NY 10022

                Facsimile:
                  212-536-3901

              

            

    

    

    

    
      	 	
              If
                to a Purchaser:

            	
              To
                the address set forth under such Purchaser name on the signature
                pages
                hereto.

            

    

    

    If
      to
      any other Person who is 

    
      	 	
              then
                the registered Holder:

            	
              To
                the address of such Holder as it appears in the stock transfer books
                of
                the Company

            

    

    

    or
      such
      other address as may be designated in writing hereafter in accordance with
      this
      Section 7(g) by such person.

    

    (h) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of each Holder. Each Holder may assign its respective
      rights hereunder in the manner and to the persons and entities as permitted
      under the Note and the Securities Purchase Agreement with the prior written
      consent of the Company, which consent shall not be unreasonably
      withheld.

    

    (i) Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (j) Governing
      Law, Jurisdiction and Waiver of Jury Trial.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of New York applicable to contracts made and performed in
      such
      State, without regard to principles of conflicts of law. The Company hereby
      consents and agrees that the state or federal courts located in the County
      of
      New York, State of New York shall have exclusion jurisdiction to hear and
      determine any Proceeding between the Company, on the one hand, and the
      Purchaser, on the other hand, pertaining to this Agreement or to any matter
      arising out of or related to this Agreement; provided,
      that
      the Purchaser and the Company acknowledge that any appeals from those courts
      may
      have to be heard by a court located outside of the County of New York, State
      of
      New York, and further provided,
      that
      nothing in this Agreement shall be deemed or operate to preclude the Purchaser
      from bringing a Proceeding in any other jurisdiction to collect the obligations,
      to realize on the Collateral or any other security for the obligations, or
      to
      enforce a judgment or other court order in favor of the Purchaser. The Company
      expressly submits and consents in advance to such jurisdiction in any Proceeding
      commenced in any such court, and the Company hereby waives any objection which
      it may have based upon lack of personal jurisdiction, improper venue or
forum
      non conveniens.
      The
      Company hereby waives personal service of the summons, complaint and other
      process issued in any such Proceeding and agrees that service of such summons,
      complaint and other process may be made by registered or certified mail
      addressed to the Company at the address set forth in Section 7(g) and that
      service so made shall be deemed completed upon the earlier of the Company’s
      actual receipt thereof or three (3) days after deposit in the U.S. mails, proper
      postage prepaid. The parties hereto desire that their disputes be resolved
      by a
      judge applying such applicable laws. Therefore, to achieve the best combination
      of the benefits of the judicial system and of arbitration, the parties hereto
      waive all rights to trial by jury in any Proceeding brought to resolve any
      dispute, whether arising in contract, tort, or otherwise between the Purchaser
      and/or the Company arising out of, connected with, related or incidental to
      the
      relationship established between then in connection with this Agreement. If
      either party hereto shall commence a Proceeding to enforce any provisions of
      this Agreement, the Securities Purchase Agreement or any other Related
      Agreement, then the prevailing party in such Proceeding shall be reimbursed
      by
      the other party for its reasonable attorneys’ fees and other costs and expenses
      incurred with the investigation, preparation and prosecution of such
      Proceeding.

    

    (k) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (l) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable efforts to
      find and employ an alternative means to achieve the same or substantially the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (m) Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    [Balance
      of page intentionally left blank;

    signature
      page follows]

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

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

    

    
      	
              PATIENTS
                & PHYSICIANS, INC.

            	
              LAURUS
                MASTER FUND, LTD.

            
	 	 
	 	 
	
              By:/S/
                Fred F.
                Nazem                          
                

            	
              By:/S/
                David
                Grin                                 
                

            
	
              Name:Fred
                F.
                Nazem                           
                

            	
              Name:David
                Grin                                  
                

            
	
              Title:CEO                                              
                

            	
              Title:Director                                         
                

            
	 	 
	 	
              Address
                for Notices:

            
	
              FLAGSHIP
                PATIENT ADVOCATES, INC.

            	 
	 	
              825
                Third Avenue, 14th
                Floor

            
	 	
              New
                York, NY 10022

            
	
              
                By:/S/
                  Fred F.
                  Nazem                          
                  

              

            	
              Attention: Eugene
                Grin

            
	
              
                Name:Fred
                  F.
                  Nazem                           
                  

              

            	
              Facsimile: 212-541-4434

            
	
              
                Title:CEO                                              
                  

              

            	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    [__________
      __, 200__]

    

    [Continental
      Stock Transfer

    &
      Trust Company

    Two
      Broadway

    New
      York,
      NY 10004

    Attn:
      William Seegraber]

    

    
      	
            	Re:	
              Patients
                & Physicians, Inc. Registration Statement on Form
                [SB-2][S-3]

            

    

    

    Ladies
      and Gentlemen:

    

    As
      counsel to Patients & Physicians, Inc., a Delaware corporation (the
“Company”), we have been requested to render our opinion to you in connection
      with the resale by the individuals or entitles listed on Schedule A attached
      hereto (the “Selling Stockholders”), of an aggregate of __________ shares
      (the “Shares”) of the Company’s Common Stock.

    

    A
      Registration Statement on Form [SB-2][S-3] under the Securities Act of 1933,
      as
      amended (the “Act”), with respect to the resale of the Shares was declared
      effective by the Securities and Exchange Commission on [date]. Enclosed is
      the
      Prospectus dated [date]. We understand that the Shares are to be offered and
      sold in the manner described in the Prospectus.

    

    Based
      upon the foregoing, upon request by the Selling Stockholders at any time while
      the registration statement remains effective, it is our opinion that the Shares
      have been registered for resale under the Act and new certificates evidencing
      the Shares upon their transfer or re-registration by the Selling Stockholders
      may be issued without restrictive legend. We will advise you if the registration
      statement is not available or effective at any point in the future.

     

    
      	 	
              Very
                truly yours,

              

              

              [Company
                counsel]

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
Schedule
      A

     

    
      	
              Selling
                Stockholder

            	
              Shares

              Being
                OfferedExhibit
      10.4

    

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
      SAID
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO PATIENTS & PHYSICIANS, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    Right
      to
      Purchase up to 621,118 Shares of Common Stock of

    Patients
      & Physicians, Inc.

    (subject
      to adjustment as provided herein)

    

    COMMON
      STOCK PURCHASE WARRANT

     

    
      	
              No.
                W-1

            	
              Issue
                Date: August 22, 2006

            

    

    

    PATIENTS
      & PHYSICIANS, INC., a corporation organized under the laws of the State of
      Delaware (the “Company”), hereby certifies that, for value received, LAURUS
      MASTER FUND, LTD., or assigns (the “Holder”), is entitled, subject to the terms
      set forth below, to purchase from the Company from and after the Issue Date
      of
      this Warrant and at any time or from time to time before 5:00 p.m., New York
      time, through the close of business January 31, 2013 (the “Expiration Date”), up
      to 621,118 fully paid and nonassessable shares of Common Stock (as hereinafter
      defined), $0.001 par value per share, at the applicable Exercise Price per
      share
      (as defined below). The number and character of such shares of Common Stock
      and
      the applicable Exercise Price per share are subject to adjustment as provided
      herein.

    

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

    

    (a) “Common
      Stock” means (i) the Company’s Common Stock, par value $0.001 per share; and
      (ii) any other securities into which or for which any of the securities
      described in the preceding clause (i) may be converted or exchanged pursuant
      to
      a plan of recapitalization, reorganization, merger, sale of assets or
      otherwise.

    

    (b) “Company”
      means Patients & Physicians, Inc. and any person or entity which shall
      succeed, or assume the obligations of, Patients & Physicians, Inc.
      hereunder.

    

    (c) “Exercise
      Price” means a price of $0.92.

    

    (d) “Other
      Securities” means any stock (other than Common Stock) and other securities of
      the Company or any other person (corporate or otherwise) which the holder of
      the
      Warrant at any time shall be entitled to receive, or shall have received, on
      the
      exercise of the Warrant, in lieu of or in addition to Common Stock, or which
      at
      any time shall be issuable or shall have been issued in exchange for or in
      replacement of Common Stock or Other Securities pursuant to Section 4 or
      otherwise.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1. Exercise
      of Warrant.

    

    1.1 Number
      of Shares Issuable upon Exercise.
      From
      and after the date hereof through and including the Expiration Date, the Holder
      shall be entitled to receive, upon exercise of this Warrant in whole or in
      part,
      by delivery of an original or fax copy of an exercise notice in the form
      attached hereto as Exhibit
      A
      (the
“Exercise Notice”), shares of Common Stock of the Company, subject to adjustment
      pursuant to Section 4.

    

    1.2 Fair
      Market Value.
      For
      purposes hereof, the “Fair Market Value” of a share of Common Stock as of a
      particular date (the “Determination Date”) shall mean:

    

    (a) If
      the
      Company’s Common Stock is traded on the American Stock Exchange or another
      national exchange or is quoted on the National or SmallCap Market of The Nasdaq
      Stock Market, Inc. (“Nasdaq”), then the closing or last sale price,
      respectively, reported for the last business day immediately preceding the
      Determination Date.

    

    (b) If
      the
      Company’s Common Stock is not traded on the American Stock Exchange or another
      national exchange or on the Nasdaq but is traded on the NASD Over the Counter
      Bulletin Board, then the mean of the average of the closing bid and asked prices
      reported for the last business day immediately preceding the Determination
      Date.

    

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree or in the absence of agreement
      by arbitration in accordance with the rules then in effect of the American
      Arbitration Association, before a single arbitrator to be chosen from a panel
      of
      persons qualified by education and training to pass on the matter to be
      decided.

    

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then issuable
      upon exercise of the Warrant are outstanding at the Determination
      Date.

    

    1.3 Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of this Warrant, upon the request
      of
      the Holder hereof acknowledge in writing its continuing obligation to afford
      to
      such Holder any rights to which such Holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the Holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such Holder any such
      rights.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    1.4 Trustee
      for Warrant Holders.
      In the
      event that a bank or trust company shall have been appointed as trustee for
      the
      Holders of this Warrant pursuant to Subsection 3.2, such bank or trust company
      shall have all the powers and duties of a warrant agent (as hereinafter
      described) and shall accept, in its own name for the account of the Company
      or
      such successor person as may be entitled thereto, all amounts otherwise payable
      to the Company or such successor, as the case may be, on exercise of this
      Warrant pursuant to this Section 1.

    

    2. Procedure
      for Exercise.

    

    2.1 Delivery
      of Stock Certificates, Etc., on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder as the record owner of such
      shares as of the close of business on the date on which this Warrant shall
      have
      been surrendered and payment shall have been made for such shares in accordance
      herewith. Each date on which an Exercise Notice is delivered or telecopied
      to
      the Company in accordance with the provisions hereof shall be deemed a Exercise
      Date (the “Exercise Date”). Pursuant to the terms of each Exercise Notice, the
      Company at its expense (including the payment by it of any applicable issue
      taxes) will issue instructions to the transfer agent within one (1) business
      day
      of the date of the delivery to the Company of an Exercise Notice and shall
      cause
      the transfer agent to transmit the certificates representing the Shares of
      Common Stock (“Warrant Shares”) purchased and issuable upon such exercise to the
      Holder by crediting the account of the Holder’s designated broker with the
      Depository Trust Corporation (“DTC”) through its Deposit Withdrawal Agent
      Commission (“DWAC”) system within three (3) business days after receipt by the
      Company of the Exercise Notice. In the case of the exercise of this Warrant
      such
      exercise shall be deemed to have been exercised and the Warrant Shares shall
      be
      deemed to have been issued upon the date of receipt by the Company of the
      Exercise Notice. The Holder shall be treated for all purposes as the record
      holder of the Warrant Shares. 

    

    2.2 Exercise.

    

    (a) Payment
      may be made either (i) in cash or by certified or official bank check payable
      to
      the order of the Company equal to the applicable aggregate Exercise Price,
      (ii)
      by delivery of this Warrant, or shares of Common Stock and/or Common Stock
      receivable upon exercise of this Warrant in accordance with the formula set
      forth in subsection (b) below, or (iii) by a combination of any of the foregoing
      methods, for the number of Common Shares specified in the Exercise Notice (as
      such exercise number shall be adjusted to reflect any adjustment in the total
      number of shares of Common Stock issuable to the Holder per the terms of this
      Warrant) and the Holder shall thereupon be entitled to receive the number of
      duly authorized, validly issued, fully-paid and non-assessable shares of Common
      Stock (or Other Securities) determined as provided herein.

    

    (b) Notwithstanding
      any provisions herein to the contrary, if the Fair Market Value of one share
      of
      Common Stock is greater than the Exercise Price (at the date of calculation
      as
      set forth below), in lieu of exercising this Warrant for cash, the Holder may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being exercised) by surrender of this Warrant at the
      principal office of the Company together with the properly endorsed Exercise
      Notice in which event the Company shall issue to the Holder a number of shares
      of Common Stock computed using the following formula:

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
              X=

            	
              Y(A-B)

                  
                A

            

    

    

    
      	 	
              Where
                X =

            	
              the
                number of shares of Common Stock to be issued to the
                Holder

            

    

    

    
      	 	
              Y
                =

            	
              the
                number of shares of Common Stock purchasable under this Warrant or,
                if
                only a portion of this Warrant is being exercised, the portion of
                this
                Warrant being exercised (at the date of such
                calculation)

            

    

    

    
      	 	
              A
                =

            	
              the
                Fair Market Value of one share of the Company’s Common Stock (at the date
                of such calculation)

            

    

    

    
      	 	
              B
                =

            	
              the
                Exercise Price per share (as adjusted to the date of such
                calculation)

            

    

    

    3. Effect
      of Reorganization, Etc.; Adjustment of Exercise Price.

    

    3.1 Reorganization,
      Consolidation, Merger, Etc.
      In case
      at any time or from time to time, the Company shall (a) effect a reorganization,
      (b) consolidate with or merge into any other person, or (c) transfer all or
      substantially all of its properties or assets to any other person under any
      plan
      or arrangement contemplating the dissolution of the Company, then, in each
      such
      case, as a condition to the consummation of such a transaction, proper and
      adequate provision shall be made by the Company whereby the Holders, on the
      exercise hereof as provided in Section 1 at any time after the consummation
      of
      such reorganization, consolidation or merger or the effective date of such
      dissolution, as the case may be, shall receive, in lieu of the Common Stock
      (or
      Other Securities) issuable on such exercise prior to such consummation or such
      effective date, the stock and other securities and property (including cash)
      to
      which such Holder would have been entitled upon such consummation or in
      connection with such dissolution, as the case may be, if such Holder had so
      exercised this Warrant, immediately prior thereto, all subject to further
      adjustment thereafter as provided in Section 4.

    

    3.2 Dissolution.
      In the
      event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, concurrently with
      any distributions made to holders of its Common Stock, shall at its expense
      deliver or cause to be delivered to the Holder the stock and other securities
      and property (including cash, where applicable) receivable by the Holder
      pursuant to Section 3.1, or, if the Holder shall so instruct the Company, to
      a
      bank or trust company specified by the Holder and having its principal office
      in
      New York, NY as trustee for the Holder (the “Trustee”).

    

    3.3 Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the shares of stock and other securities and property receivable on the exercise
      of this Warrant after the consummation of such reorganization, consolidation
      or
      merger or the effective date of dissolution following any such transfer, as
      the
      case may be, and shall be binding upon the issuer of any such stock or other
      securities, including, in the case of any such transfer, the person acquiring
      all or substantially all of the properties or assets of the Company, whether
      or
      not such person shall have expressly assumed the terms of this Warrant as
      provided in Section 4. In the event this Warrant does not continue in full
      force
      and effect after the consummation of the transactions described in this Section
      3, then the Company’s securities and property (including cash, where applicable)
      receivable by the Holder will be delivered to the Holder or the Trustee as
      contemplated by Section 3.2.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock or any preferred
      stock issued by the Company, (b) subdivide its outstanding shares of Common
      Stock, or (c) combine its outstanding shares of the Common Stock into a smaller
      number of shares of the Common Stock, then, in each such event, the Exercise
      Price shall, simultaneously with the happening of such event, be adjusted by
      multiplying the then Exercise Price by a fraction, the numerator of which shall
      be the number of shares of Common Stock outstanding immediately prior to such
      event and the denominator of which shall be the number of shares of Common
      Stock
      outstanding immediately after such event, and the product so obtained shall
      thereafter be the Exercise Price then in effect. The Exercise Price, as so
      adjusted, shall be readjusted in the same manner upon the happening of any
      successive event or events described herein in this Section 4. The number of
      shares of Common Stock that the Holder shall thereafter, on the exercise hereof
      as provided in Section 1, be entitled to receive shall be adjusted to a number
      determined by multiplying the number of shares of Common Stock that would
      otherwise (but for the provisions of this Section 4) be issuable on such
      exercise by a fraction of which (a) the numerator is the Exercise Price that
      would otherwise (but for the provisions of this Section 4) be in effect, and
      (b)
      the denominator is the Exercise Price in effect on the date of such exercise
      (taking into account the provisions of this Section 4).

    

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of this Warrant, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of this
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or receivable
      by
      the Company for any additional shares of Common Stock (or Other Securities)
      issued or sold or deemed to have been issued or sold, (b) the number of shares
      of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
      and (c) the Exercise Price and the number of shares of Common Stock to be
      received upon exercise of this Warrant, in effect immediately prior to such
      adjustment or readjustment and as adjusted or readjusted as provided in this
      Warrant. The Company will forthwith mail a copy of each such certificate to
      the
      Holder and any Warrant agent of the Company (appointed pursuant to Section
      11
      hereof).

    

    6. Reservation
      of Stock, Etc., Issuable on Exercise of Warrant.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of this Warrant, shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of this
      Warrant.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”) in whole or in part. On the surrender for exchange of this
      Warrant, with the Transferor’s endorsement in the form of Exhibit B attached
      hereto (the “Transferor Endorsement Form”) and together with evidence reasonably
      satisfactory to the Company demonstrating compliance with applicable securities
      laws, which shall include, without limitation, the provision of a legal opinion
      from the Transferor’s counsel (at the Company’s expense) that such transfer is
      exempt from the registration requirements of applicable securities laws, the
      Company at its expense (but with payment by the Transferor of any applicable
      transfer taxes) will issue and deliver to or on the order of the Transferor
      thereof a new Warrant of like tenor, in the name of the Transferor and/or the
      transferee(s) specified in such Transferor Endorsement Form (each a
“Transferee”), calling in the aggregate on the face or faces thereof for the
      number of shares of Common Stock called for on the face or faces of the Warrant
      so surrendered by the Transferor.

    

    8. Replacement
      of Warrant.
      On
      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 of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Warrant
      of like tenor.

    

    9. Registration
      Rights.
      The
      Holder has been granted certain registration rights by the Company. These
      registration rights are set forth in a Registration Rights Agreement entered
      into by the Company and Holder dated as of the date hereof, as the same may
      be
      amended, modified and/or supplemented from time to time.

    

    10. Maximum
      Exercise.
      Notwithstanding anything contained herein to the contrary, the Holder shall
      not
      be entitled to exercise this Warrant in connection with that number of shares
      of
      Common Stock which would exceed the difference between (i) 4.99% of the issued
      and outstanding shares of Common Stock and (ii) the number of shares of Common
      Stock beneficially owned by the Holder. For the 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-3 thereunder. The limitation described in the first sentence of this Section
      10 shall automatically become null and void following notice to the Company
      upon
      the occurrence and during the continuance of an Event of Default under and
      as
      defined in the Note made by the Company to the Holder dated the date hereof
      (as
      amended, modified or supplemented from time to time, the “Note”), upon 75 days
      prior notice to the Company, or upon receipt by the Holder of a Notice of
      Redemption (as defined in the Note).

    

    11. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      for the purpose of issuing Common Stock (or Other Securities) on the exercise
      of
      this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section
      7, and replacing this Warrant pursuant to Section 8, or any of the foregoing,
      and thereafter any such issuance, exchange or replacement, as the case may
      be,
      shall be made at such office by such agent.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered Holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

    

    13. Notices,
      Etc.
      All
      notices and other communications from the Company to the Holder shall be mailed
      by first class registered or certified mail, postage prepaid, at such address
      as
      may have been furnished to the Company in writing by such Holder or, until
      any
      such Holder furnishes to the Company an address, then to, and at the address
      of,
      the last Holder who has so furnished an address to the Company.

    

    14. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. THIS WARRANT SHALL
      BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION BROUGHT
      CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY
      IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE
      OF
      NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS PROVISION
      AND BRING AN ACTION OUTSIDE THE STATE OF NEW YORK. The individuals executing
      this Warrant on behalf of the Company agree to submit to the jurisdiction of
      such courts and waive trial by jury. The prevailing party shall be entitled
      to
      recover from the other party its reasonable attorneys’ fees and costs. In the
      event that any provision of this Warrant is invalid or unenforceable under
      any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision of this Warrant. The headings in this
      Warrant are for purposes of reference only, and shall not limit or otherwise
      affect any of the terms hereof. The Company acknowledges that legal counsel
      participated in the preparation of this Warrant and, therefore, stipulates
      that
      the rule of construction that ambiguities are to be resolved against the
      drafting party shall not be applied in the interpretation of this Warrant to
      favor any party against the other party.

    

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK;

    SIGNATURE
      PAGE FOLLOWS]

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the Company has executed this Common Stock Purchase Warrant
      as
      of the date first written above.

     

    
      	 	
              PATIENTS
                & PHYSICIANS, INC.

            
	 	 
	
              WITNESS:

            	 
	 	
              By:/S/
                Fred F.
                Nazem                      
                

            
	 	
              Name:Fred
                F.
                Nazem                       
                

            
	
              /S/
                Philip
                Barak                                   
                

            	
              Title:CEO                                          
                

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
      A

    

    FORM
      OF SUBSCRIPTION

    

    (To
      Be
      Signed Only On Exercise Of Warrant)

    

    
      	
              TO:

            	
              Patients
                & Physicians, Inc.

            

    

    [432
      Park
      Avenue South, 13th
      Floor

    New
      York,
      New York 10016]

    

    Attention: Chief
      Financial Officer

    

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant (No.
      ____), hereby irrevocably elects to purchase (check applicable
      box):

     

    
      	o	
              ________
                shares of the Common Stock covered by such Warrant; or

            
	 	 
	o	
              the
                maximum number of shares of Common Stock covered by such Warrant
                pursuant
                to the cashless exercise procedure set forth in Section
                2.

            

    

    

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of (check applicable box or boxes):

     

    
      	o	
              $__________
                in lawful money of the United States; and/or

            
	 	 
	o	
              the
                cancellation of such portion of the attached Warrant as is exercisable
                for
                a total of _______ shares of Common Stock (using a Fair Market Value
                of
                $_______ per share for purposes of this calculation);
                and/or

            
	 	 
	o	
              the
                cancellation of such number of shares of Common Stock as is necessary,
                in
                accordance with the formula set forth in Section 2.2, to exercise
                this
                Warrant with respect to the maximum number of shares of Common Stock
                purchasable pursuant to the cashless exercise procedure set forth
                in
                Section 2.

            

    

    

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to _________________ whose address is
      _____________________________________.

    

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities Act”) or pursuant to an exemption from registration
      under the Securities Act.

     

    
      	
              Dated:
                ________________________________

            	________________________________________
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 
	 	
              Address:
                ________________________________

            
	 	
               ________________________________

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
      B

    

    FORM
      OF TRANSFEROR ENDORSEMENT

    

    (To
      Be
      Signed Only On Transfer Of Warrant)

    

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of Patients & Physicians, Inc. into which the within Warrant relates
      specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person attorney to transfer its respective right on the books of Patients &
Physicians, Inc. with full power of substitution in the premises.

     

    
      	
              Transferees

            	 	
              Address

            	 	
              Percentage
                Transferred

            	 	
              Number
                Transferred

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

    
 

    
      	
              Dated:
                ________________________________

            	________________________________________
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 
	 	
              Address:
                ________________________________

            
	 	
               
________________________________

            
	 	 
	 	 
	 	
              SIGNED
                IN THE PRESENCE OF:

            
	 	________________________________
	 	
              (Name)

            
	
              ACCEPTED
                AND AGREED:

            	 
	
              [TRANSFEREE]

            	 
	________________________________	 
	
              (Name)

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