Document:

exhibit 10.14

SECURITIES PURCHASE
AGREEMENT

This
Securities Purchase Agreement (this “Agreement”) is dated as of April 6,
2007, among Lpath, Inc., a Nevada corporation (the “Company”), and each
purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser” and collectively the “Purchasers”).

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”),
and Rule 506 promulgated thereunder, the Company desires to issue and sell to
each Purchaser, and each Purchaser, severally and not jointly, desires to
purchase from the Company, securities of the Company as more fully described in
this Agreement.

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agree
as follows:

ARTICLE I.

DEFINITIONS

1.1           Definitions.  In addition to the terms defined elsewhere in
this Agreement, for all purposes of this Agreement, the following terms have
the meanings set forth in this Section 1.1:

“Action” shall
have the meaning ascribed to such term in Section 3.1(j).

“Affiliate”
means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a
Person as such terms are used in and construed under Rule 144 under the
Securities Act.  With respect to a
Purchaser, any investment fund or managed account that is managed on a
discretionary basis by the same investment manager as such Purchaser will be
deemed to be an Affiliate of such Purchaser.

“Business Day”
means any day except Saturday, Sunday, any day which shall be a federal legal
holiday in the United States or any day on which banking institutions in the
State of New York are authorized or required by law or other governmental
action to close.

“Change of Control
Transaction” means the occurrence after the date hereof of
any of (i) the Company merging into or consolidating with any other Person, or
any Person merging into or consolidating with the Company and, after giving
effect to such transaction, the stockholders of the Company immediately prior
to such transaction own less than 50% of the aggregate voting power of the
Company or the successor entity of such transaction, or (ii) the Company
selling or transferring all or substantially all of its assets to another
Person and the stockholders of the Company immediately prior to such
transaction own less than 50% of the aggregate voting power of the acquiring
entity immediately after the transaction, or (iii) the execution by the Company
of an agreement to which the Company  is
a party or by which it is bound, providing for any of the events set forth in
clauses (i) and (ii) above.

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“Closing Dates”
means, collectively, the dates of the First Closing and the Second Closing.

“Closings” means
collectively, the closings of the purchase and sale of the Securities pursuant
to Section 2.1, and any reference to “Closing” or “Closings” shall be
construed to include the First Closing and the Second Closing unless only one
such closing is expressly referred to.

 “Commission” means the Securities and
Exchange Commission.

“Common Stock”
means the Class A common stock of the Company, par value $0.001 per share, and
any other class of securities into which such securities may hereafter be
reclassified or changed into. 

“Common Stock
Equivalents” means any securities of the Company or the Subsidiaries which
would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or
exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock.

“Company
Counsel” means Eilenberg Krause & Paul LLP, with offices located at 11
East 44th Street, 19th Floor, New York,
NY 10017. 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered
concurrently herewith. 

“Effective Date”
means the date that the initial Registration Statement filed by the Company
pursuant to the Registration Rights Agreement is first declared effective by
the Commission.

 “Evaluation Date” shall have the
meaning ascribed to such term in Section 3.1(r). 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to
employees, officers or directors of the Company pursuant to any stock or option
plan duly adopted for such purpose, by a majority of the non-employee members
of the Board of Directors of the Company or a majority of the members of a
committee of non-employee directors established, (b) securities upon the
exercise or exchange of or conversion of any Securities issued hereunder and/or
other securities exercisable or exchangeable for or convertible into shares of
Common Stock issued and outstanding on the date of this Agreement, provided
that such securities have not been amended since the date of this Agreement to
increase the number of such securities or to decrease the exercise, exchange or
conversion price of such securities, and (c) securities issued as a result of
cancellation and/or transfer of previously issued securities of the Company
which do not result in a dilutive effect on the Company’s securities, (d)
securities issued in connection with and pursuant to a stockholder “rights”
plan, “poison pill” or other

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similar
anti-takeover plan adopted by the Company, and (e) securities issued  pursuant to acquisitions or strategic
transactions approved by a majority of the disinterested directors of the
Company, provided that any such issuance shall only be to a Person which is,
itself or through its subsidiaries, an operating company in a business
synergistic with the business of the Company and in which the Company receives
benefits in addition to the investment of funds, but shall not include a
transaction in which the Company is issuing securities primarily for the
purpose of raising capital or to an entity whose primary business is investing
in securities. 

“First Closing”
shall have the meaning ascribed to such term in Section 2.1 hereof.

“First Closing Date”
means the date of the First Closing.

“FWS” means
Feldman Weinstein & Smith LLP with offices located at 420 Lexington Avenue,
Suite 2620, New York, New York 10170-0002.

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 “Intellectual Property Rights” shall
have the meaning ascribed to such term in Section 3.1(o).

“Legend Removal
Date” shall have the meaning ascribed to such term in Section 4.1(c). 

“Lehman
Director” means the director of the Company which may be designated by LB I
Group, Inc. (“Lehman”) in accordance with Section 4.17 hereof.

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal,
preemptive right or other restriction.

“Material
Adverse Effect” shall have the meaning assigned to such term in Section
3.1(b).

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

“Participation
Maximum” shall have the meaning ascribed to such term in Section 4.13. 

“Per Share
Purchase Price” equals $0.95, subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar
transactions of the Common Stock that occur after the date of this Agreement.

“Person”
means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity
of any kind.

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“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.13. 

“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.

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.9.

“Registration
Rights Agreement” means the Registration Rights Agreement, dated the date
hereof, among the Company and the Purchasers, in the form of Exhibit A
attached hereto.

“Registration
Statement” means a registration statement meeting the requirements set
forth in the Registration Rights Agreement and covering the resale by the
Purchasers of the Shares and the Warrant Shares. 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

“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. 

“Second Closing”
shall have the meaning ascribed to such term in Section 2.1 hereof.

“Second Closing Date”
means the date of the Second Closing.

“SEC Reports”
shall have the meaning ascribed to such term in Section 3.1(h).

“Securities”
means the Shares, the Warrants and the Warrant Shares.

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

“Stockholder Approval”
means such approval as may be required by the Nevada General Corporation Law
from the shareholders of the Company with respect to (a) the increase of the
Company’s authorized Common Stock from 60,000,000 to not less than 100,000,000
shares, and (b) approval of an increase in the number of options authorized to
be granted under the Company’s 2005 Stock Option/Stock Issuance Plan up to the
lesser of either (i) 10,390,000 shares of Common Stock or (ii) 15% of the
Company’s capital stock as calculated on a fully diluted, as converted basis
and assuming the completion of the Second Closing; provided, however,
that if the matters covered by Stockholder Approval are submitted to the
Company’s stockholders in conjunction with the Company’s 2007 annual meeting of
stockholder (the “Annual Meeting”), then, for the avoidance of doubt, it is
understood by the parties hereto that the inclusion of other, unrelated items
in the Annual Meeting as may be deemed necessary or advisable by the

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Board of Directors of the Company shall be permitted,
regardless of the outcome of the vote on such items.

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant
to this Agreement.

“Short Sales”
means all “short sales” as defined in Rule 200 of Regulation SHO under the
Exchange Act (but shall not be
deemed to include the location and/or reservation of borrowable shares of
Common Stock). 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for
Shares and Warrants purchased hereunder as specified below such Purchaser’s
name on the signature page of this Agreement and next to the heading
“Subscription Amount,” in United States dollars and in immediately available
funds.

“Subsequent
Financing” shall have the meaning ascribed to such term in Section 4.13.

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section
4.13. 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a).

“Trading Day”
means a day on which the Common Stock is traded on a Trading Market.

“Trading Market”
means the following markets or exchanges on which the Common Stock is listed or
quoted for trading on the date in question: the American Stock Exchange, the
Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange or the OTC Bulletin Board.

“Transaction
Documents” means this Agreement, the Warrants, the Registration Rights
Agreement and any other documents or agreements executed in connection with the
transactions contemplated hereunder.

“Transfer Agent”
means Nevada Agency and Trust Company, with a mailing address of 50 West
Liberty Street, Suite 880, Reno, Nevada 89501 and a facsimile number of (775)
322-5623, and any successor transfer agent of the Company.

“VWAP”
means, for any date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock is then listed or quoted on a Trading
Market, the daily volume weighted average price of the Common Stock for such
date (or the nearest preceding date) on the Trading Market on which the Common
Stock is then listed or quoted for trading as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York
City time); (b)  if the OTC Bulletin Board is not a Trading Market, the
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the OTC Bulletin Board;

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(c) if the Common Stock
is not then quoted for trading on the OTC Bulletin Board and if prices for the
Common Stock are then reported in the “Pink Sheets” published by Pink Sheets,
LLC (or a similar organization or agency succeeding to its functions of
reporting prices), the most recent bid price per share of the Common Stock so
reported; or (d) in all other cases, the fair market value of a share of
Common Stock as determined by an independent appraiser selected in good faith
by the Purchaser and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company. 

“Warrants”
means collectively the Common Stock purchase warrants delivered to the
Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
Warrants shall be exercisable immediately and have a term of exercise equal to
5 years, in the form of Exhibit C attached hereto.

“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrants.

ARTICLE II.

PURCHASE AND SALE

2.1           Closings.  Upon the terms and subject to the conditions
set forth herein, substantially concurrent with the execution and delivery of
this Agreement by the parties hereto, the Company agrees to sell, and each
Purchaser, severally and not jointly, 
agrees to purchase, an aggregate of, up to $17,000,000 of Shares and Warrants.  Each Purchaser shall deliver to the Escrow
Agent identified to the Purchasers by the Company (the “Escrow Agent”), via
wire transfer or a certified check, immediately available funds equal to that
portion of its Subscription Amount to be paid at the applicable Closing, and
the Company shall deliver to each Purchaser its respective Shares and a Warrant
as determined pursuant to Section 2.2(a) to be delivered at each Closing, and
the Company and each Purchaser shall deliver the other items set forth in
Section 2.2 deliverable at the applicable Closing.  Upon satisfaction of the conditions set forth
in Sections 2.2 and 2.3, each Closing shall occur at the offices of FWS, or
such other location as the parties shall mutually agree. The Closings shall
take place in two stages as set forth below (respectively, the “First Closing”
and the “Second Closing”).   Upon
satisfaction of the conditions set forth in Sections 2.2 and 2.3, the Closings
shall occur at the offices of the Escrow Agent, or such other location as the
parties shall mutually agree.

a)                                      First Closing.   The First Closing shall be for an aggregate
Subscription Amount of $14,025,000 and shall occur within 5 Trading Days of the
date hereof.  

b)                                     Second Closing.  The Second Closing shall be for the balance
of the Subscription Amounts, and shall occur within 3 Trading Days after the
receipt of Stockholder Approval.

2.2           Deliveries.

(a)           On
or prior to the First Closing Date, the Company shall deliver or cause to be
delivered to each Purchaser the following:

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(i)                    this Agreement duly executed
by the Company;

(ii)                   a legal opinion of Company
Counsel, in the form of Exhibit B attached hereto; 

(iii)                  a copy of the irrevocable
instructions to the Transfer Agent instructing the Transfer Agent to deliver,
on an expedited basis, a certificate evidencing a number of Shares equal to
such Purchaser’s Subscription Amount divided by the Per Share Purchase Price,
registered in the name of such Purchaser;

(iv)                  a Warrant registered in the
name of such Purchaser to purchase up to a number of shares of Common Stock
equal to 35% of the number of Shares being subscribed for in the aggregate at
both Closings, with an exercise price equal to $1.05, subject to adjustment
therein;

(v)                   the executed Voting
Agreements of such 5% or greater shareholders as shall in the aggregate
represent a majority of the issued and outstanding Common Stock as of the First
Closing Date, in substantially the form of Exhibit D hereto, provided,
however, that such Voting Agreements shall not be required if the number of
shares of Common Stock represented and covered by the voting agreements set
forth in Section 4.18 hereof shall exceed 50% of the issued and outstanding
capital stock of the Company following the First Closing; and

(vi)                  the Registration Rights
Agreement duly executed by the Company.

(b)           On
or prior to the First Closing Date, each Purchaser shall deliver or cause to be
delivered to the Company the following:

(i)                    this Agreement duly executed
by such Purchaser;

(ii)                   such Purchaser’s Subscription
Amount for the First Closing by wire transfer to the account as specified in
writing by the Company; and

(iii)                  the Registration Rights
Agreement duly executed by such Purchaser.

(c)           Deliveries at the Second Closing.  At the Second Closing, the Company shall
deliver to each Purchaser (i) the Securities being purchased at the Second
Closing, (ii) an officers’ certificate executed by the Chief Executive Officer
and the Chief Financial Officer certifying that all of the Company’s
representations and warranties in Section 3.1 remain true and correct as of the
Second Closing Date; and (iii) a bring-down letter from Company Counsel
affirming the legal opinion delivered at the First Closing.

2.3           Closing Conditions.

(a)           The
obligations of the Company hereunder in connection with each Closing are
subject to the following conditions being met or waived by the Company:

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(i)                    the accuracy in all material
respects when made and on the applicable Closing Date of the representations
and warranties of the Purchasers contained herein (except with respect to
representations and warranties which relate to a specific date, in which case
such representations and warranties shall continue to be materially accurate as
of such date); 

(ii)                   all obligations, covenants
and agreements of the Purchasers required to be performed at or prior to the
applicable Closing Date shall have been performed; and

(iii)                  the delivery by the Purchasers
of the items set forth in Section 2.2(b) of this Agreement.

(b)           The
respective obligations of the Purchasers hereunder in connection with each Closing
are subject to the following conditions being met or waived by each Purchaser
as to itself:

(i)                    the accuracy in all material
respects on the applicable Closing Date of the representations and warranties
of the Company contained herein (except with respect to representations and
warranties which relate to a specific date, in which case such representations
and warranties shall continue to be materially accurate as of such date);

(ii)                   all obligations, covenants
and agreements of the Company required to be performed at or prior to the
applicable Closing Date shall have been performed;

(iii)                  the Board of Directors of the
Company shall have amended Article II, Section 11 of the Company’s Bylaws,
effective as of the First Closing, to permit actions to be taken by the written
consent of the holders of a simple majority of the Company’s outstanding Common
Stock; 

(iv)                  the delivery by the Company of
the items set forth in Section 2.2(a) of this Agreement, and as to the Second
Closing only, the items in Section 2.2(c); 

(v)                   there shall have been no
Material Adverse Effect with respect to the Company since the date hereof (it
being agreed that any evidence of animal toxicity with respect to SphingomabTM shall be deemed to be a
Material Adverse Effect; and

(vi)                  from the date hereof to the
applicable Closing Date, trading in the Common Stock shall not have been
suspended by the Commission or the Company’s principal Trading Market (except
for any suspension of trading of limited duration agreed to by the Company,
which suspension shall be terminated prior to the Closing), and, at any time
prior to the Closing Date, trading in securities generally as reported by
Bloomberg L.P. shall not have been suspended or limited, or minimum prices
shall not have been established on securities whose

 8
 

trades are reported by such service, or on
any Trading Market, nor shall a banking moratorium have been declared either by
the United States or New York State authorities nor shall there have occurred
any material outbreak or escalation of hostilities or other national or
international calamity of such magnitude in its effect on, or any material
adverse change in, any financial market which, in each case, in the reasonable
judgment of each Purchaser, makes it impracticable or inadvisable to purchase
the Shares at the Closing.

(c)           Condition to the Second Closing.
 In addition to the conditions set forth
in Section 2.3(b), the obligation of each Purchaser to complete the Second
Closing is subject to the Company’s obtaining Stockholder Approval.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1           Representations
and Warranties of the Company. 
Except as set forth in the Disclosure Schedules which Disclosure
Schedules shall be deemed a part hereof and shall qualify any representation or
otherwise made herein to the extent of the disclosure contained in the
corresponding section of the Disclosure Schedules, the Company hereby makes the
following representations and warranties to each Purchaser:

(a)           Subsidiaries.  All of the direct and indirect subsidiaries
of the Company are set forth on Schedule 3.1(a).  The Company owns, directly or indirectly, all
of the capital stock or other equity interests of each Subsidiary free and
clear of any Liens, and all of the issued and outstanding shares of capital
stock of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase
securities.  If the Company has no
subsidiaries, then all other references to the Subsidiaries or any of them in
the Transaction Documents shall be disregarded.

(b)           Organization and
Qualification.  The Company and each
of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation or organization (as applicable), with the requisite power and
authority to own and use its properties and assets and to carry on its business
as currently conducted.  Neither the
Company nor any Subsidiary is in violation or default of any of the provisions
of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. 
Each of the Company and the Subsidiaries is duly qualified to conduct
business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not have or reasonably
be expected to result in (i) a material adverse effect on the legality,
validity or enforceability of any Transaction Document, (ii) a material adverse
effect on the results of operations, assets, business, prospects or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a whole,
or (iii) a material adverse effect on the Company’s ability to perform in any
material respect on a timely

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basis its
obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and no Proceeding has been instituted in any such
jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or
curtail such power and authority or qualification.

(c)           Authorization;
Enforcement.  The Company has the
requisite corporate power and authority to enter into and to consummate the
transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations hereunder and thereunder.  The execution and delivery of each of the Transaction
Documents by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the
Company, its board of directors or its stockholders in connection therewith
other than in connection with the Required Approvals.  Each Transaction Document to which the
Company is a party has been (or upon delivery will have been) duly executed by
the Company and, when delivered in accordance with the terms hereof and
thereof, will constitute the valid and binding obligation of the Company
enforceable against the Company in accordance with its terms except (i) as
limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may
be limited by applicable law.

(d)           No Conflicts.  The execution, delivery and performance of
the Transaction Documents by the Company, the issuance and sale of the Shares
and the consummation by the Company of the other transactions contemplated
hereby and thereby do not and will not (i) conflict with or violate any
provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, result in the creation of any
Lien upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or
otherwise) or other understanding to which the Company or any Subsidiary is a
party or by which any property or asset of the Company or any Subsidiary is
bound or affected, or (iii) subject to the Required Approvals, conflict with or
result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company or a Subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset of the
Company or a Subsidiary is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not have or reasonably be expected to
result in a Material Adverse Effect.

(e)           Filings, Consents
and Approvals.  Except as set forth
on Schedule 3.1(e),  the Company
is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other
federal, state, local or other governmental authority or other Person in connection
with the execution,

 10
 

delivery and
performance by the Company of the Transaction Documents, other than (i) filings
required pursuant to Section 4.4 of this Agreement, (ii) the filing with the
Commission of the Registration Statement, (iii) application(s) to each
applicable Trading Market for the listing of the Securities for trading thereon
in the time and manner required thereby, (iv) the filing of Form D with the
Commission and such filings as are required to be made under applicable state
securities laws and (v) as to the Second Closing only Stockholder Approval
(collectively, the “Required Approvals”).

(f)            Issuance of the
Securities.  The Securities to be
issued at the First Closing are, and subject only to Stockholder Approval, the
Securities to be issued at the Second Closing will be, duly authorized and,
when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free
and clear of all Liens imposed by the Company other than restrictions on
transfer provided for in the Transaction Documents.  The Warrant Shares, when issued in accordance
with the terms of the Transaction Documents, and, as to the Second Closing
only, subject to Stockholder Approval, will be validly issued, fully paid and
nonassessable, free and clear of all Liens imposed by the Company.  The Company has reserved from its duly
authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement and the Warrants as to the First Closing, and,
subject only to Stockholder Approval, as to the Second Closing.

(g)           Capitalization.  The capitalization of the Company is as set
forth on Schedule 3.1(g), which Schedule 3.1(g) shall also
include the number of shares of Common Stock owned beneficially, and of record,
by Affiliates of the Company as of the date hereof. The Company has not issued
any capital stock since its most
recently filed periodic report under the Exchange Act, other than
pursuant to the exercise of employee stock options under the Company’s stock
option plans, the issuance of shares of Common Stock to employees pursuant to
the Company’s employee stock purchase plan and pursuant to the conversion or
exercise of Common Stock Equivalents outstanding as of the date of the most
recently filed periodic report under the Exchange Act.  Except as set forth on Schedule 3.1(g),
no Person has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions contemplated
by the Transaction Documents.  Except as
set forth on Schedule 3.1(g), as a result of the purchase and sale of
the Securities, there are no outstanding options, warrants, scrip rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable or
exchangeable for, or giving any Person any right to subscribe for or acquire,
any shares of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to
issue additional shares of Common Stock or Common Stock Equivalents.  Except as set forth on Schedule 3.1(g),
the issuance and sale of the Securities will not obligate the Company to issue
shares of Common Stock or other securities to any Person (other than the
Purchasers) and will not result in a right of any holder of Company securities
to adjust the exercise, conversion, exchange or reset price under any of such
securities. All of the outstanding shares of capital stock of the Company are
validly issued, fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe
for or

 11
 

purchase
securities.  No further approval or
authorization of any stockholder, the Board of Directors of the Company or
others is required for the issuance and sale of the Securities.  There are no stockholders agreements, voting
agreements or other similar agreements with respect to the Company’s capital
stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s stockholders.

(h)           SEC Reports;
Financial Statements.  The Company
has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, since November 30,
2005, and, to Company’s knowledge, for the two years preceding the date hereof
(the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, being collectively referred to herein as the
“SEC Reports”) on a timely basis or has received a valid extension of
such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension.  As of their
respective dates, the SEC Reports complied in all material respects with the requirements
of the Securities Act and the Exchange Act, as applicable, and none of the SEC
Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. 
The financial statements of the Company included in the SEC Reports
comply in all material respects with applicable accounting requirements and the
rules and regulations of the Commission with respect thereto as in effect at
the time of filing.  Such financial
statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods
involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial
statements may not contain all footnotes required by GAAP, and fairly present
in all material respects the financial position of the Company and its
consolidated subsidiaries as of and for the dates thereof and the results of
operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments.

(i)            Material
Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited
financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there
has been no event, occurrence or development that has had or that could
reasonably be expected to result in a Material Adverse Effect, (ii) the Company
has not incurred any material liabilities (contingent or otherwise) other than
(A) trade payables and accrued expenses incurred in the ordinary course of
business consistent with past practice and (B) liabilities not required to be
reflected in the Company’s financial statements pursuant to GAAP or disclosed
in filings made with the Commission, (iii) the Company has not altered its
method of accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) the Company has not issued any equity securities to any officer,
director or Affiliate, except pursuant to existing Company stock option
plans.  The Company does not have pending
before the Commission any request for confidential

 12
 

treatment of
information.  Except for the issuance of
the Securities contemplated by this Agreement or as set forth on Schedule
3.1(i), no event, liability or development has occurred or exists with
respect to the Company or its Subsidiaries or their respective business,
properties, operations or financial condition, that would be required to be
disclosed by the Company under applicable securities laws at the time this
representation is made that has not been publicly disclosed at least 1 Trading
Day prior to the date that this representation is made.

(j)            Litigation.  There is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of
their respective properties before or by any court, arbitrator, governmental or
administrative agency or regulatory authority (federal, state, county, local or
foreign) (collectively, an “Action”) which (i) adversely affects or
challenges the legality, validity or enforceability of any of the Transaction
Documents or the Securities or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse
Effect.  Neither the Company nor any Subsidiary,
nor any director or officer thereof, is or has been the subject of any Action
involving a claim of violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty.  There has not been, and to the knowledge of
the Company, there is not pending or contemplated, any investigation by the
Commission involving the Company or any current or former director or officer
of the Company.  The Commission has not
issued any stop order or other order suspending the effectiveness of any
registration statement filed by the Company or any Subsidiary under the
Exchange Act or the Securities Act.  

(k)           Labor Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company which could reasonably be expected to result in a Material Adverse
Effect.  None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company, and neither the Company or any of its
Subsidiaries is a party to a collective bargaining agreement, and the Company
and its Subsidiaries believe that their relationships with their employees are
good.  No executive officer, to the
knowledge of the Company, is, or is now expected to be, in violation of any
material term of any employment contract, confidentiality, disclosure or
proprietary information agreement or non-competition agreement, or any other
contract or agreement or any restrictive covenant, and the continued employment
of each such executive officer does not subject the Company or any of its
Subsidiaries to any liability with respect to any of the foregoing
matters.  The Company and its
Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws
and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in
compliance could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

(l)            Compliance.  Neither the Company nor any Subsidiary (i) is
in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the Company or any
Subsidiary received notice of a claim that

 13
 

it is in
default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any order of any court,
arbitrator or governmental body, or (iii) is or has been in violation of any
statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws applicable to its
business and all such laws that affect the environment, except in each case as
could not have or reasonably be expected to result in a Material Adverse
Effect.

(m)          Regulatory Permits.  The Company and the Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their
respective businesses as described in the SEC Reports, except where the failure
to possess such permits could not have or reasonably be expected to result in a
Material Adverse Effect (“Material Permits”), and neither the Company
nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

(n)           Title to Assets.  The Company and the Subsidiaries have good
and marketable title in fee simple to all real property owned by them that is
material to the business of the Company and the Subsidiaries and good and
marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of
all Liens, except for Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be
made of such property by the Company and the Subsidiaries and Liens for the
payment of federal, state or other taxes, the payment of which is neither
delinquent nor subject to penalties.  Any
real property and facilities held under lease by the Company and the
Subsidiaries are held by them under valid, subsisting and enforceable leases
with which the Company and the Subsidiaries are in compliance.

(o)           Patents and
Trademarks.  To the knowledge of the
Company, the Company and the Subsidiaries have, or have rights to use, all
patents, patent applications, trademarks, trademark applications, service
marks, trade names, trade secrets, inventions, copyrights, licenses and other
intellectual property rights and similar rights necessary or material for use
in connection with their respective businesses as described in the SEC Reports
and which the failure to so have could have a Material Adverse Effect
(collectively, the “Intellectual Property Rights”).  Neither the Company nor any Subsidiary has
received a notice (written or otherwise) that the Intellectual Property Rights
used by the Company or any Subsidiary violates or infringes upon the rights of
any Person.  The Company and its
Subsidiaries have taken reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties, except where
failure to do so could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; and to the Company’s knowledge, the
Company’s intellectual properties are enforceable and not infringed at present
by another Person.

(p)           Insurance.  The Company and the Subsidiaries are insured
by insurers of recognized financial responsibility against such losses and
risks and in such amounts as are prudent and customary in the businesses in
which the Company and the Subsidiaries

 14
 

are engaged,
including, but not limited to, directors and officers insurance coverage at
least equal to the aggregate Subscription Amount.  Neither the Company nor any Subsidiary has
any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business without a
significant increase in cost.

(q)           Transactions With
Affiliates and Employees.  Except as
set forth in the SEC Reports, none of the officers or directors of the Company
and, to the knowledge of the Company, none of the employees of the Company is
presently a party to any transaction with the Company or any Subsidiary (other
than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such
employee or, to the knowledge of the Company, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer,
director, trustee or partner, in each case in excess of $120,000 other than for
(i) payment of salary or consulting fees for services rendered, (ii)
reimbursement for expenses incurred on behalf of the Company and (iii) other
employee benefits, including stock option agreements under any stock option
plan of the Company.

(r)            Sarbanes-Oxley;
Internal Accounting Controls.  The
Company is in material compliance with all provisions of the Sarbanes-Oxley Act
of 2002 which are applicable to it as of the Closing Date.  The
Company and the Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. The Company has established
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company
in the reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
Commission’s rules and forms.  The
Company’s certifying officers have evaluated the effectiveness of the Company’s
disclosure controls and procedures as of the end of the period covered by the
Company’s most recently filed periodic report under the Exchange Act (such
date, the “Evaluation Date”).  The
Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the
Evaluation Date.  Since the Evaluation
Date, there have been no changes in the Company’s internal control over
financial reporting (as such term is defined in the Exchange Act) that has
materially affected in an adverse manner, or is reasonably likely to materially
affect in an adverse manner, the Company’s internal control over financial
reporting.

 15
 

(s)           Certain Fees.  Except as set forth on Schedule 3.1(s),
no brokerage or finder’s fees or commissions are or will be payable by the
Company to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents. 
The Purchasers shall have no obligation with respect to any fees or with
respect to any claims made by or on behalf of other Persons for fees of a type
contemplated in this Section that may be due in connection with the transactions
contemplated by the Transaction Documents.

(t)            Private
Placement. Assuming the accuracy of the Purchasers representations and
warranties set forth in Section 3.2, no registration under the Securities Act
is required for the offer and sale of the Securities by the Company to the
Purchasers as contemplated hereby. The issuance and sale of the Securities
hereunder does not contravene the rules and regulations of the Trading Market.

(u)           Investment
Company. The Company is not, and is not an Affiliate of, and immediately
after receipt of payment for the Securities, will not be or be an Affiliate of,
an “investment company” within the meaning of the Investment Company Act of
1940, as amended.  The Company shall
conduct its business in a manner so that it will not become subject to the
Investment Company Act of 1940, as amended.

(v)           Registration
Rights.  Other than each of the
Purchasers, no Person has any right to cause the Company to effect the
registration under the Securities Act of any securities of the Company.

(w)          Listing and
Maintenance Requirements.  The
Company’s Common Stock is registered pursuant to Section 12(b) or 12(g) of the
Exchange Act, and the Company has taken no action designed to, or which to its
knowledge is likely to have the effect of, terminating the registration of the
Common Stock under the Exchange Act nor has the Company received any
notification that the Commission is contemplating terminating such
registration.  The Company has not, in
the 12 months preceding the date hereof, received notice from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect
that the Company is not in compliance with the listing or maintenance
requirements of such Trading Market. The Company is, and has no reason to
believe that it will not in the foreseeable future continue to be, in
compliance with all such listing and maintenance requirements.

(x)            Application of
Takeover Protections.  The Company
and its board of directors have taken all necessary action, if any, in order to
render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s certificate of incorporation
(or similar charter documents) or the laws of its state of incorporation that
is or could become applicable to the Purchasers as a result of the Purchasers
and the Company fulfilling their obligations or exercising their rights under
the Transaction Documents, including without limitation as a result of the
Company’s issuance of the Securities and the Purchasers’ ownership of the
Securities.

 16
 

(y)           Disclosure.  Except with respect to the material terms and
conditions of the transactions contemplated by the Transaction Documents, the
Company confirms that neither it nor any other Person acting on its behalf has
provided any of the Purchasers or their agents or counsel with any information
that it believes constitutes or might constitute material, non-public
information.   The Company understands
and confirms that the Purchasers will rely on the foregoing representation in
effecting transactions in securities of the Company.  All disclosure furnished by or on behalf of
the Company to the Purchasers regarding the Company, its business and the
transactions contemplated hereby, including the Disclosure Schedules to this
Agreement, is true and correct and does not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were
made, not misleading. The press releases disseminated by the Company during the
twelve months preceding the date of this Agreement taken as a whole do not
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the
statements, in light of the circumstances under which they were made and when
made, not misleading.  The Company
acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than
those specifically set forth in Section 3.2 hereof.

(z)            No Integrated
Offering. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, 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, to the Company’s knowledge,
cause this offering of the Securities to be integrated with prior offerings by
the Company for purposes of the Securities Act or any applicable shareholder
approval provisions of any Trading Market on which any of the securities of the
Company are listed or designated.  

(aa)         Solvency.  Based on the financial condition of the
Company as of the First Closing Date, after giving effect to the receipt by the
Company of the proceeds from the sale of the Securities hereunder, (i) the fair
saleable value of the Company’s assets exceeds the amount that will be required
to be paid on or in respect of the Company’s existing debts and other
liabilities (including known contingent liabilities) as they mature; (ii) the
Company’s assets do not constitute unreasonably small capital to carry on its
business as now conducted and as proposed to be conducted including its capital
needs taking into account the particular capital requirements of the business
conducted by the Company, and projected capital requirements and capital
availability thereof; and (iii) the current cash flow of the Company, together
with the proceeds the Company would receive, were it to liquidate all of its
assets, after taking into account all anticipated uses of the cash, would be
sufficient to pay all amounts on or in respect of its liabilities when such
amounts are required to be paid.  The
Company does not intend to incur debts beyond its ability to pay such debts as
they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt).  Assuming
the First Closing occurs, the Company has no knowledge of any facts or
circumstances which lead it to believe that it will file for reorganization or
liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date. 
Schedule 

 17
 

3.1(aa) sets
forth as of the dates thereof all outstanding secured and unsecured
Indebtedness of the Company or any Subsidiary, or for which the Company or any
Subsidiary has commitments.  For the
purposes of this Agreement, “Indebtedness” means (a) any liabilities for
borrowed money or amounts owed in excess of $50,000 (other than trade accounts
payable incurred in the ordinary course of business), (b) all guaranties,
endorsements and other contingent obligations in respect of Indebtedness of
others, whether or not the same are or should be reflected in the Company’s
balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (c) the present value of any lease payments in
excess of $50,000 due under leases required to be capitalized in accordance
with GAAP.  Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

(bb)         Tax Status.  Except for matters that would not,
individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and each Subsidiary has filed all
necessary federal, state and foreign income and franchise tax returns and has
paid or accrued all taxes shown as due thereon, and the Company has no
knowledge of a tax deficiency which has been asserted or threatened against the
Company or any Subsidiary.

(cc)         No General
Solicitation.  Neither the Company
nor any person acting on behalf of the Company has offered or sold any of the
Securities by any form of general solicitation or general advertising.  The Company has offered the Securities for
sale only to the Purchasers and certain other “accredited investors” within the
meaning of Rule 501 under the Securities Act.

(dd)         Foreign Corrupt
Practices.  Neither the Company, nor
to the knowledge of the Company, any agent or other person acting on behalf of
the Company, has (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or
domestic political parties or campaigns from corporate funds, (iii) failed to
disclose fully any contribution made by the Company (or made by any person
acting on its behalf of which the Company is aware) which is  in violation of law, or (iv) violated in any
material respect any provision of the Foreign Corrupt Practices Act of 1977, as
amended.

(ee)         Accountants.  The Company’s accounting firm is set forth on
Schedule 3.1(ee) of the Disclosure Schedule.  To the knowledge and belief of the Company,
such accounting firm (i) is a registered public accounting firm as required by
the Exchange Act and (ii) shall express its opinion with respect to the
financial statements to be included in the Company’s Annual Report on Form
10-KSB for the year ending December 31, 2006.

(ff)           No Disagreements
with Accountants and Lawyers.  There
are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers
presently employed by the Company or who have been employed by the Company
since December 1, 2005. Schedule 3.1(ee) lists any fees the Company owed
to its accountants and lawyers as of February 28, 2007.

 18
 

(gg)         Acknowledgment
Regarding Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that each
of the Purchasers is acting solely in the capacity of an arm’s length purchaser
with respect to the Transaction Documents and the transactions contemplated
thereby.  The Company further
acknowledges that no Purchaser is acting as a financial advisor or fiduciary of
the Company (or in any similar capacity) with respect to the Transaction
Documents and the transactions contemplated thereby and any advice given by any
Purchaser or any of their respective representatives or agents in connection
with the Transaction Documents and the transactions contemplated thereby is
merely incidental to the Purchasers’ purchase of the Securities.  The Company further represents to each
Purchaser that the Company’s decision to enter into this Agreement and the
other Transaction Documents has been based solely on the independent evaluation
of the transactions contemplated hereby by the Company and its representatives.

(hh)         Acknowledgement Regarding Purchaser’s Trading Activity. 
Anything in this Agreement or elsewhere herein to the contrary
notwithstanding (except for Sections 3.2(f) and 4.14 hereof), it is understood
and acknowledged by the Company (i) that none of the Purchasers have been asked
to agree, nor has any Purchaser agreed, to desist from purchasing or selling,
long and/or short, securities of the Company, or “derivative” securities based
on securities issued by the Company or to hold the Securities for any specified
term; (ii) that past or future open market or other transactions by any
Purchaser, including Short Sales, and specifically including, without
limitation, Short Sales or “derivative” transactions, before or after the
closing of this or future private placement transactions, may negatively impact
the market price of the Company’s publicly-traded securities; (iii) that any
Purchaser, and counter-parties in “derivative” transactions to which any such
Purchaser is a party, directly or indirectly, presently may have a “short”
position in the Common Stock, and (iv) that each Purchaser shall not be deemed
to have any affiliation with or control over any arm’s length counter-party in
any “derivative” transaction.  The
Company further understands and acknowledges that (a) one or more Purchasers
may engage in hedging activities at various times during the period that the
Securities are outstanding, including, without limitation, during the periods
that the value of the Warrant Shares deliverable with respect to Securities are
being determined and (b) such hedging activities (if any) could reduce the
value of the existing stockholders' equity interests in the Company at and
after the time that the hedging activities are being conducted.  The
Company acknowledges that such aforementioned hedging activities do not
constitute a breach of any of the Transaction Documents.

(ii)           Regulation M
Compliance.  The Company has not, and
to its knowledge no one acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or
manipulation of the price of any security of the Company to facilitate the sale
or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any
compensation for soliciting purchases of, any of the Securities, or (iii) paid
or agreed to pay to any Person any compensation for soliciting another to
purchase any other securities of the Company, other than, in the case of
clauses (ii) and (iii), compensation paid to the Company’s placement agent in
connection with the placement of the Securities.

 19
 

3.2           Representations
and Warranties of the Purchasers. 
Each Purchaser, for itself and for no other Purchaser, hereby represents
and warrants as of the date hereof and as of the Closing Date to the Company as
follows:

(a)           Organization;
Authority.  Such Purchaser is an
entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization with full right, corporate or partnership
power and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents and otherwise to carry out its
obligations hereunder and thereunder. The execution, delivery and performance
by such Purchaser of the transactions contemplated by this Agreement have been
duly authorized by all necessary corporate or similar action on the part of
such Purchaser.  Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and
when delivered by such Purchaser in accordance with the terms hereof, will
constitute the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except (i) as limited by
general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may
be limited by applicable law.

(b)           Own Account.  Such Purchaser understands that the
Securities are “restricted securities” and have not been registered under the
Securities Act or any applicable state securities law and is acquiring the
Securities as principal for its own account and not with a view to or for
distributing or reselling such Securities or any part thereof in violation of
the Securities Act or any applicable state securities law, has no present
intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding
the distribution of such Securities (this representation and warranty not
limiting such Purchaser’s right to sell the Securities pursuant to the
Registration Statement or otherwise in compliance with applicable federal and
state securities laws) in violation of the Securities Act or any applicable
state securities law.  Such Purchaser is
acquiring the Securities hereunder in the ordinary course of its business. Such
Purchaser understands that it may not be able to sell any of the Securities
without prior registration under the Securities Act or the existence of an exemption
from such registration requirement.

(c)           Purchaser Status.  At the time such Purchaser was offered the
Securities, it was, and at the date hereof it is, and on each date on which it
exercises any Warrants, it will be either: (i) an “accredited investor” as
defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the
Securities Act or (ii) a “qualified institutional buyer” as defined in Rule
144A(a) under the Securities Act.  Such
Purchaser is not required to be registered as a broker-dealer under Section 15
of the Exchange Act.  

(d)           Experience of
Such Purchaser.  Such Purchaser,
either alone or together with its representatives, has such knowledge,
sophistication and experience in business

 20
 

and financial
matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Securities, and has so evaluated the merits and
risks of such investment.  Such Purchaser
is able to bear the economic risk of an investment in the Securities and, at
the present time, is able to afford a complete loss of such investment. Such
Purchaser acknowledges that it has not received any legal or tax advice from
the Company or any of its representatives with respect the transactions
contemplated hereby.

(e)           General
Solicitation.  Such Purchaser is not
purchasing the Securities as a result of any advertisement, article, notice or
other communication regarding the Securities published in any newspaper,
magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement.

(f)            Short Sales and
Confidentiality Prior To The Date Hereof. 
Other than the transaction contemplated hereunder, such Purchaser has
not, nor has any Person acting on behalf of or pursuant to any understanding
with such Purchaser, directly or indirectly executed any transaction, including
Short Sales, in the securities of the Company during the period commencing
from the time that such Purchaser first received a term sheet (written or oral)
from the Company or any other Person setting forth the material terms of the
transactions contemplated hereunder until the date hereof (“Discussion Time”).  Notwithstanding the foregoing, in the case of
a Purchaser that is a multi-managed investment vehicle whereby separate
portfolio managers manage separate portions of such Purchaser's assets and the
portfolio managers have no direct knowledge of the investment decisions made by
the portfolio managers managing other portions of such Purchaser's assets, the
representation set forth above shall only apply with respect to the portion of
assets managed by the portfolio manager that made the investment decision to
purchase the Securities covered by this Agreement.  Notwithstanding the foregoing, with respect
to Lehman, this Section shall only apply to the Global Trading Strategies
group, as currently configured, of Lehman Brothers Holdings Inc., and shall not
apply to any other person, affiliate, subsidiary, business unit, area, group or
division of Lehman Brothers Holdings Inc. Other than to other Persons party to
this Agreement, such Purchaser has maintained the confidentiality of all
disclosures made to it in connection with this transaction (including the
existence and terms of this transaction).

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

4.1           Transfer Restrictions.  

(a)           The Securities may
only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the
Company or to an Affiliate of a Purchaser or in connection with a pledge as
contemplated in Section 4.1(b), the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be
reasonably satisfactory to the Company, to the effect that such transfer does
not require registration of such transferred Securities under the

 21
 

Securities
Act.  As a condition of transfer, any
such transferee shall agree in writing to be bound by the terms of this
Agreement and shall have the rights of a Purchaser under this Agreement and the
Registration Rights Agreement.

(b)           The Purchasers agree
to the imprinting, so long as is required by this Section 4.1, of a legend on
any of the Securities in the following form:

THIS SECURITY HAS NOT BEEN  REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.  THIS SECURITY
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED
BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

The Company acknowledges
and agrees that a Purchaser may from time to time pledge pursuant to a bona
fide margin agreement with a registered broker-dealer or grant a security
interest in some or all of the Securities to a financial institution that is an
“accredited investor” as defined in Rule 501(a) under the Securities Act and
who agrees to be bound by the provisions of this Agreement and the Registration
Rights Agreement and, if required under the terms of such arrangement, such
Purchaser may transfer pledged or secured Securities to the pledgees or secured
parties.  Such a pledge or transfer would
not be subject to approval of the Company and no legal opinion of legal counsel
of the pledgee, secured party or pledgor shall be required in connection
therewith.  Further, no notice shall be
required of such pledge.  At the
appropriate Purchaser’s expense, the Company will execute and deliver such
reasonable documentation as a pledgee or secured party of Securities may
reasonably request in connection with a pledge or transfer of the Securities,
including, if the Securities are subject to registration pursuant to the
Registration Rights Agreement, the preparation and filing of any required
prospectus supplement under Rule 424(b)(3) under the Securities Act or other
applicable provision of the Securities Act to appropriately amend the list of
Selling Stockholders thereunder.

(c)           Certificates
evidencing the Shares and Warrant Shares shall not contain any legend
(including the legend set forth in Section 4.1(b)), (i) while a registration
statement (including the Registration Statement) covering the resale of such
security is

 22
 

effective under the Securities Act, or (ii)
following any sale of such Shares or Warrant Shares pursuant to Rule 144, or
(iii) if such Shares or Warrant Shares are eligible for sale under Rule 144(k),
or (iv) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by
the staff of the Commission).  The
Company shall cause its counsel to issue a legal opinion to the Transfer Agent
promptly after the Effective Date if required by the Transfer Agent to effect
the removal of the legend hereunder.  If
all or any portion of a Warrant is exercised at a time when there is an
effective registration statement to cover the resale of the Warrant Shares,
such Warrant Shares shall be issued free of all legends.  The Company agrees that following the
Effective Date or at such time as such legend is no longer required under this
Section 4.1(c), it will, no later than three Trading Days following the
delivery by a Purchaser to the Company or the Transfer Agent of a certificate
representing Shares or Warrant Shares, as the case may be, issued with a
restrictive legend (such third Trading Day, the “Legend Removal Date”),
deliver or cause to be delivered to such Purchaser a certificate representing
such shares that is free from all restrictive and other legends.  The Company may not make any notation on its
records or give instructions to the Transfer Agent that enlarge the
restrictions on transfer set forth in this Section.  Certificates for Securities subject to legend
removal hereunder shall be transmitted by the Transfer Agent to the Purchasers
by crediting the account of the Purchaser’s prime broker with the Depository
Trust Company System, if the Transfer Agent is a participant in the DWAC
system, and otherwise by physical delivery of certificates as directed by the
Purchaser. The Company agrees to use commercially reasonable efforts to have a
Transfer Agent which is a DWAC participant within 1 year of the First Closing.

 

(d)           In addition to such
Purchaser’s other available remedies, the Company shall pay to a Purchaser, in
cash, as partial liquidated damages and not as a penalty, for each $1,000 of
Shares or Warrant Shares (based on the VWAP of the Common Stock on the date
such Securities are submitted to the Transfer Agent) delivered for removal of
the restrictive legend and subject to Section 4.1(c), $10 per Trading Day
(increasing to $20 per Trading Day five (5) Trading Days after such damages
have begun to accrue) for each Trading Day after the Legend Removal Date until
such certificate is delivered without a legend. Nothing herein shall limit such
Purchaser’s right to pursue actual damages for the Company’s failure to deliver
certificates representing any Securities as required by the Transaction
Documents, and such Purchaser shall have the right to pursue all remedies available
to it at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief.

(e)           Each Purchaser,
severally and not jointly with the other Purchasers, agrees that the removal of
the restrictive legend from certificates representing Securities as set forth
in this Section 4.1 is predicated upon the Company’s reliance that the
Purchaser will sell any Securities pursuant to either the registration
requirements of the Securities Act, including any applicable prospectus
delivery requirements, or an exemption therefrom, and that if Securities are
sold pursuant to a Registration Statement, they will be sold in compliance with
the plan of distribution set forth therein.

 23
 

4.2           Furnishing
of Information.  As long as any Purchaser
owns Securities, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the
Exchange Act.  As long as any Purchaser
owns Securities, if the Company is not required to file reports pursuant to the
Exchange Act, it will prepare and furnish to the Purchasers and make publicly
available in accordance with Rule 144(c) such information as is required for
the Purchasers to sell the Securities under Rule 144. The Company further
covenants that it will take such further action as any holder of Securities may
reasonably request, to the extent required from time to time to enable such
Person to sell such Securities without registration under the Securities Act
within the requirements of the exemption provided by Rule 144.

4.3           Integration.  The Company shall not sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any security (as
defined in Section 2 of the Securities Act) that could reasonably be expected
to be integrated with the offer or sale of the Securities in a manner that
would require the registration under the Securities Act of the sale of the
Securities to the Purchasers or that would be integrated with the offer or sale
of the Securities for purposes of the rules and regulations of any Trading
Market such that it would require shareholder approval prior to the closing of
such other transaction unless shareholder approval is obtained before the
closing of such subsequent transaction.

4.4           Securities Laws Disclosure;
Publicity.  The Company shall, by
8:30 a.m. (New York City time) on the Trading Day immediately following the
date hereof, issue a Current Report on Form 8-K, disclosing the material terms
of the transactions contemplated hereby, and filing the Transaction Documents
as exhibits thereto.  The Company and
each Purchaser shall consult with each other in issuing any other press releases
with respect to the transactions contemplated hereby, and neither the Company
nor any Purchaser shall issue any such press release or otherwise make any such
public statement without the prior consent of the Company, with respect to any
press release of any Purchaser, or without the prior consent of each Purchaser,
with respect to any press release of the Company, which consent shall not
unreasonably be withheld or delayed, except if such disclosure is required by
law, in which case the disclosing party shall promptly provide the other party
with prior notice of such public statement or communication.  Notwithstanding the foregoing, the Company
shall not publicly disclose the name of any Purchaser, or include the name of
any Purchaser in any filing with the Commission or any regulatory agency or
Trading Market, without the prior written consent of such Purchaser, except (i)
as required by federal securities law in connection with (A) any registration
statement contemplated by the Registration Rights Agreement and (B) the filing
of final Transaction Documents (including signature pages thereto) with the
Commission and (ii) to the extent such disclosure is required by law or Trading
Market regulations, in which case the Company shall provide the Purchasers with
prior notice of such disclosure permitted under this clause (ii).

4.5           Stockholder Rights Plan.  No claim will be made or enforced by the
Company or, with the consent of the Company, any other Person, that any
Purchaser is an “Acquiring Person” under any control share acquisition,
business combination, poison pill (including any distribution under a rights
agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the
provisions of any

 24

such plan or arrangement, by virtue of receiving Securities under the
Transaction Documents or under any other agreement between the Company and the
Purchasers.

4.6           Non-Public Information.  Except with respect to the material terms and
conditions of the transactions contemplated by the Transaction Documents, the
Company covenants and agrees that neither it nor any other Person acting on its
behalf will provide any Purchaser or its agents or counsel with any information
that the Company believes constitutes material non-public information, unless
prior thereto such Purchaser shall have executed a written agreement regarding
the confidentiality and use of such information.  The Company understands and confirms that
each Purchaser shall be relying on the foregoing representations in effecting
transactions in securities of the Company.

4.7           Use of Proceeds.  Except as set forth on Schedule 4.7
attached hereto, the Company shall use the net proceeds from the sale of the
Securities hereunder for working capital purposes and shall not use such
proceeds for the satisfaction of any portion of the Company’s debt (other than
payment of trade payables in the ordinary course of the Company’s business and
prior practices), or to redeem any Common Stock or Common Stock Equivalents or
to settle any outstanding litigation.

4.8           Indemnification of Purchasers.   Subject to the provisions of this Section
4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other
Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who
controls such Purchaser (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a
lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of
or relating to (a) any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents or (b) any action instituted against a Purchaser, or any
of them or their respective Affiliates, by any stockholder of the Company who
is not an Affiliate of such Purchaser, with respect to any of the transactions
contemplated by the Transaction Documents (unless such action is based upon a
breach of such Purchaser’s representations, warranties or covenants under the
Transaction Documents or any agreements or understandings such Purchaser may
have with any such stockholder or any violations or alleged violations by the
Purchaser of state or federal securities laws or any conduct by such Purchaser
which constitutes fraud, gross negligence, willful misconduct or
malfeasance).  If any action shall be
brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the
Company in writing, and the Company shall have the right to assume the defense
thereof with counsel of its own choosing reasonably acceptable to the Purchaser
Party.  Any Purchaser Party shall have
the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the
expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing,

 25
 

(ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in the reasonable
opinion of such separate counsel, a material conflict on any material issue
between the position of the Company and the position of such Purchaser Party,
in which case the Company shall be responsible for the reasonable fees and
expenses of no more than one such separate counsel.  The Company will not be liable to any
Purchaser Party under this Agreement (i) for any settlement by a Purchaser
Party effected without the Company’s prior written consent, which shall not be
unreasonably withheld or delayed; or (ii) to the extent, but only to the extent
that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made
by such Purchaser Party in this Agreement or in the other Transaction
Documents.

4.9           Reservation of Common Stock. Subject
to receipt of Stockholder Approval as to the Second Closing only, as of the
date hereof, the Company has reserved and the Company shall continue to reserve
and keep available at all times, free of preemptive rights, a sufficient number
of shares of Common Stock for the purpose of enabling the Company to issue
Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise
of the Warrants.   The Company shall hold
a special meeting of shareholders (which may also be the annual meeting of
shareholders) within 90 calendar days of the First Closing Date for the purpose
of obtaining Stockholder Approval, with the recommendation of the Company’s
Board of Directors that such proposal be approved, and the Company shall
solicit proxies from its shareholders in connection therewith in the same
manner as all other management proposals in such proxy statement and all
management-appointed proxyholders shall vote their proxies in favor of such
proposal. If the Company does not obtain Stockholder Approval at the first such
meeting, the Company shall call a meeting every four months thereafter to seek
Stockholder Approval until the earlier of the date Stockholder Approval is
obtained or the Warrants are no longer outstanding. Further, if the Company has
not received Stockholder Approval at any time after the First Closing Date,
then, upon the occurrence of any Change of Control Transaction, each Purchaser
shall have the right to purchase at the same Per Share Purchase Price, and the
Company shall issue, scrip representing the Shares that would have been
issuable at the Second Closing had such Shares been authorized, and such scrip
shall have the same rights to receive the consideration that would have been
receivable by a holder of an equal number of Shares upon consummation of the
Change of Control Transaction.

4.10         Listing of Common Stock.    The
Company hereby agrees to use best efforts to maintain the listing of the Common
Stock on a Trading Market, and as soon as reasonably practicable following the
Closing (but not later than the earlier of the Effective Date and the first
anniversary of the Closing Date) to list all of the Shares and Warrant Shares
on such Trading Market. The Company further agrees, if the Company applies to
have the Common Stock traded on any other Trading Market, it will include in
such application all of the Shares and Warrant Shares, and will take such other
action as is necessary to cause all of the Shares and Warrant Shares to be
listed on such other Trading Market as promptly as possible.  The Company will take all action reasonably
necessary to continue the listing and trading of its Common Stock on a Trading
Market and will comply in all respects with the Company’s reporting, filing and
other obligations under the bylaws or rules of the Trading Market.

 26
 

4.11         Equal Treatment of Purchasers.   Except
with respect to Lehman’s right to designate 1 director and the rights afforded
pursuant to Section 4.19 hereof, no consideration shall be offered or paid to
any Person to amend or consent to a waiver or modification of any provision of
any of the Transaction Documents unless the same consideration is also offered
to all of the parties to the Transaction Documents.  For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and
negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the
Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Securities or otherwise.

4.12         Participation in Future Financing.

(a)           From
the date hereof until the date that is the 24-month anniversary of the Effective
Date of the initial Registration Statement, upon any issuance by the Company or
any of its Subsidiaries of Common Stock or Common Stock Equivalents for cash
consideration to a non-Affiliated party (a “Subsequent Financing”), each
Purchaser shall have the right to participate in up to an amount of the
Subsequent Financing equal to such Purchaser’s “pro rata percentage” (defined
as such Purchaser’s actual ownership of Common Stock, as of the Second Closing,
as a percentage of the Company’s outstanding shares of Common Stock as of the
First Closing) (the “Participation Maximum”) on the same terms,
conditions and price provided for in the Subsequent Financing.

(b)           At
least 10 Trading Days prior to the closing of the Subsequent Financing, the
Company shall deliver to each Purchaser a written notice of its intention to
effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask
such Purchaser if it wants to review the details of such financing (such
additional notice, a “Subsequent Financing Notice”).  Upon the
request of a Purchaser, and only upon a request by such Purchaser, for a
Subsequent Financing Notice, the Company shall promptly, but no later than 1
Trading Day after such request, deliver a Subsequent Financing Notice to such
Purchaser.  The Subsequent Financing Notice shall describe in reasonable
detail the proposed terms of such Subsequent Financing, the amount of proceeds
intended to be raised thereunder and the Person or Persons through or with whom
such Subsequent Financing is proposed to be effected and shall include a term
sheet or similar document relating thereto as an attachment.

(c)           Any
Purchaser desiring to participate in such Subsequent Financing must provide
written notice to the Company by not later than 5:30 p.m. (New York City time)
on the 10th Trading Day after all of the Purchasers have
received the Pre-Notice that the Purchaser is willing to participate in the
Subsequent Financing, the amount of the Purchaser’s participation, and that the
Purchaser has such funds ready, willing, and available for investment on the
terms set forth in the Subsequent Financing Notice.  If the Company receives no notice from a
Purchaser as of such 10th Trading Day, such Purchaser shall be deemed to
have notified the Company that it does not elect to participate.

(d)           If
by 5:30 p.m. (New York City time) on the 10th Trading Day after
all of the Purchasers have received the Pre-Notice, notifications by the
Purchasers of their willingness to participate in the Subsequent Financing (or
to cause their designees to

 27
 

participate)
is, in the aggregate, less than the total amount of the Subsequent Financing,
then the Company may effect the remaining portion of such Subsequent Financing
on the terms and with the Persons set forth in the Subsequent Financing Notice.

(e)           If
by 5:30 p.m. (New York City time) on the 10th Trading Day after
all of the Purchasers have received the Pre-Notice, the Company receives
responses to a Subsequent Financing Notice from Purchasers seeking to purchase
more than the aggregate amount of the Participation Maximum, each such
Purchaser shall have the right to purchase its Pro Rata Portion (as defined
below) of the Participation Maximum.  “Pro Rata Portion” means the
ratio of (x) the Subscription Amount of Securities subscribed for on the First
Closing Date by a Purchaser participating under this Section 4.12 and (y) the
sum of the aggregate Subscription Amounts of Securities purchased on the First
Closing Date by all Purchasers participating under this Section 4.12.

(f)            The
Company must provide the Purchasers with a second Subsequent Financing Notice,
and the Purchasers will again have the right of participation set forth above
in this Section 4.12, if the Subsequent Financing subject to the initial
Subsequent Financing Notice is not consummated for any reason on the terms set
forth in such Subsequent Financing Notice within 60 Trading Days after the date
of the initial Subsequent Financing Notice.

(g)           Notwithstanding the foregoing, this Section
4.12 shall not apply in respect of (i) an Exempt Issuance or (ii) an
underwritten public offering of Common Stock.

4.13         Subsequent Equity Sales.

(a)           From
the date hereof until 60 days after the Effective Date, neither the Company nor
any Subsidiary shall issue shares of Common Stock or Common Stock Equivalents; provided,
however, the 60 day period set forth in this Section 4.13 shall be
extended for the number of Trading Days during such period in which (i) trading
in the Common Stock is suspended by any Trading Market, or (ii) following the
Effective Date, the Registration Statement is not effective or the prospectus
included in the Registration Statement may not be used by the Purchasers for
the resale of the Shares and Warrant Shares.

(b)           From
the date hereof until such time as no Purchaser holds any of the Securities,
the Company shall be prohibited from effecting or entering into an agreement to
effect any Subsequent Financing involving a Variable Rate Transaction.  “Variable Rate Transaction” means a
transaction in which the Company issues or sells (i) any debt or equity
securities that are convertible into, exchangeable or exercisable for, or
include the right to receive additional shares of Common Stock either (A) at a
conversion, exercise or exchange rate or other price that is based upon and/or
varies with the trading prices of or quotations for the shares of Common Stock
at any time after the initial issuance of such debt or equity securities, or
(B) with a conversion, exercise or exchange price that is subject to being
reset at some future date after the initial issuance of such debt or equity
security or upon the occurrence of specified or contingent events directly or
indirectly related to the business of the Company or the market for the Common
Stock or (ii) enters into any agreement, including, but not limited to, an
equity line of credit,

 28
 

whereby the
Company may sell securities at a future determined price.  Any Purchaser shall be entitled to obtain
injunctive relief against the Company to preclude any such issuance, which
remedy shall be in addition to any right to collect damages.

(c)           Notwithstanding
the foregoing, this Section 4.13 shall not apply in respect of an Exempt
Issuance, except that no Variable Rate Transaction shall be an Exempt Issuance.

4.14         Short
Sales and Confidentiality After The Date Hereof.  Each Purchaser severally and not jointly with
the other Purchasers covenants that neither it nor any Affiliate acting on its
behalf or pursuant to any understanding with it will execute any Short Sales
during the period commencing at the Discussion Time and ending at the time that
the transactions contemplated by this Agreement are first publicly announced as
described in Section 4.4.  Each
Purchaser, severally and not jointly with the other Purchasers, covenants that
until such time as the transactions contemplated by this Agreement are publicly
disclosed by the Company as described in Section 4.4, such Purchaser will
maintain the confidentiality of all disclosures made to it in connection with
this transaction (including the existence and terms of this transaction).  Each Purchaser understands and acknowledges,
severally and not jointly with any other Purchaser, that the Commission
currently takes the position that coverage of short sales of shares of the
Common Stock “against the box” prior to the Effective Date of the Registration
Statement with the Securities is a violation of Section 5 of the
Securities Act, as set forth in Item 65, Section A, of the Manual of Publicly
Available Telephone Interpretations, dated July 1997, compiled by the Office of
Chief Counsel, Division of Corporation Finance. 
Notwithstanding the foregoing, no Purchaser makes any representation,
warranty or covenant hereby that it will not engage in Short Sales in the
securities of the Company after the time that the transactions contemplated by
this Agreement are first publicly announced as described in Section 4.4.  Notwithstanding the foregoing, in the case of
a Purchaser that is a multi-managed investment vehicle whereby separate
portfolio managers manage separate portions of such Purchaser’s assets and the
portfolio managers have no direct knowledge of the investment decisions made by
the portfolio managers managing other portions of such Purchaser’s assets, the
covenant set forth above shall only apply with respect to the portion of assets
managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Notwithstanding the foregoing, with
respect to Lehman, this Section shall only apply to the Global Trading
Strategies group, as currently configured, of Lehman Brothers Holdings Inc.,
and shall not apply to any other person, affiliate, subsidiary, business unit,
area, group or division of Lehman Brothers Holdings Inc.

4.15         Delivery of Securities After Closing.  The Company shall deliver, or cause to be
delivered, the respective Securities purchased by each Purchaser to such
Purchaser within 3 Trading Days of the applicable Closing Date.

4.16         Form D; Blue Sky Filings.  The Company agrees to timely file a Form D
with respect to the Securities as required under Regulation D and to provide a
copy thereof, promptly upon request of any Purchaser. The Company shall take
such action as the Company shall reasonably determine is necessary in order to
obtain an exemption for, or to qualify the Securities for, sale to the
Purchasers at the First Closing under applicable securities or “Blue Sky” laws
of the states of the United States, and shall provide evidence of such actions
promptly upon request of any Purchaser.

 29
 

4.17         Composition of the Board of Directors.  As of the First Closing Date, the Company
shall have taken all necessary action to expand its Board of Directors to 6
individuals. So long as Lehman shall continue to beneficially own at least 25%
of the number of Shares originally purchased by it pursuant to this Agreement,
Lehman shall have the right to designate 1 director in accordance with this
Section 4.17 as follows: the Company agrees that it shall use best efforts to
have its Board of Directors or nominating committee, if it has one, to
re-nominate the individual designated by Lehman as director for re-election at
each meeting of stockholders called for such purpose, to recommend to the
Company’s stockholders that that they vote “for” such nominee, and that all
proxies given to management are voted in favor of such nominee. The members of
the Board of Directors as of the First Closing shall be Donald Swortwood,
Charles Mathews, Jeffrey Ferrell (who shall be the director designated by
Lehman), Roger Sabbadini and the Company’s Chief Executive Officer (with one
vacant position).  Following the First
Closing, such five directors shall use its best efforts to designate a sixth
director, who shall be reasonably acceptable to Lehman at the time of such
designation.  The Company shall use
commercially reasonable best efforts to obtain and maintain directors and
officers liability insurance in such amounts as are customary for companies of
the Company’s size; and shall enter into indemnification contracts with the
Lehman Director in form and substance reasonably satisfactory to such Lehman
Director. Nothing in this Agreement shall be construed to preclude the Company
from entering into the same or similar indemnification agreements with the
non-Lehman Directors.

4.18         Voting Agreement.  Each Purchaser hereby acknowledges and agrees
that in connection with the execution of this Agreement, such Purchaser shall
vote all shares of the Company’s capital stock held by such Purchaser at the
time of any such vote in favor of the items described by the Shareholder
Approval (which may occur in the context of a special meeting or annual meeting
of the Company’s stockholders or in connection with any action taken by written
consent in accordance with the Company’s bylaws and applicable law).  Notwithstanding anything to the contrary
contained elsewhere in this Agreement, the Agreements under this Section 4.18
shall terminate upon the earlier of either (a) the termination of this
Agreement, (b) the approval by requisite vote of any item which is part of the
Shareholder Approval (but only to the extent that such approval is obtained) or
(c) the obligations to obtain all or any portion of the items described by the
Shareholder Approval are no longer necessary in accordance with this Agreement.

4.19         Board Observer Rights.  The Company hereby invites any Purchaser,
excluding Lehman, who has purchased Securities in an amount equal to or greater
than $1,800,000 under the terms of this Agreement to select one representative
reasonably acceptable to the Company (each a “Representative”) to attend in a
nonvoting observer capacity meetings of the Board of Directors; provided,
however, that the Company reserves the right to exclude the Representative from
access to any material or meeting or portion thereof if (i) the Company
believes upon advice of counsel that such exclusion is reasonably necessary to
preserve the attorney-client privilege between the Company and its counsel;
(ii) access to such information or attendance at such meeting could create a
conflict of interest between any of the Purchasers or the Representative, on
the one hand, and the Company, on the other hand, or (iii) such portion of a
meeting is an executive session limited solely to members of the Board of
Directors and legal counsel.  In addition
and upon 30-day notice, the Company may terminate rights granted to any
Purchaser pursuant to this Section 4.19. Any Purchaser eligible to select a
Representative agrees

 30
 

that (a) such Representative shall agree in writing to hold in
confidence and trust and to act in a fiduciary manner with respect to all
information provided to the Representative, except to the extent such
information in the public domain at the time it is first provided to the
Representative, or is subsequently released into the public domain (through no
fault of the Representative), or otherwise required by law and any other
regulatory process to which the Representative is subject, (b) such
Representative shall acknowledge and agree that during the period in which the
Representative has board observation rights under this Section 4.19, the
Representative shall be subject to, and shall be deemed a “covered person”
under, any insider trading policy now or hereafter adopted by the Company and
any code of ethics and business conduct now or hereafter adopted by the
Company.

ARTICLE V.

MISCELLANEOUS

5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s
obligations hereunder only and without any effect whatsoever on the obligations
between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before April 10, 2007; provided,
however, that no such termination will affect the right of any party to
sue for any breach by the other party (or parties).

5.2           Fees and Expenses.  At the Closing, the Company has agreed to
reimburse Lehman the sum of up to $75,000 for its due diligence and legal fees
and expenses.  Except as expressly set
forth in the Transaction Documents to the contrary, each party shall pay the
fees and expenses of its advisers, counsel, accountants and other experts, if
any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.  The Company shall pay all Transfer Agent
fees, stamp taxes and other taxes and duties levied in connection with the
delivery of any Securities to the Purchasers.

5.3           Entire Agreement.  The Transaction Documents, together with the
exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements
and understandings, oral or written, with respect to such matters, which the
parties acknowledge have been merged into such documents, exhibits and
schedules.

5.4           Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the date
of transmission, if such notice or communication is delivered via facsimile at
the facsimile number set forth on the signature pages attached hereto prior to
5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after
the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number set forth on the signature pages attached
hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York
City time) on any Trading Day, (c) the 2nd Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given.  The address for
such notices and communications shall be as set forth on the signature pages
attached hereto.

 31
 

5.5           Amendments; Waivers.  No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment,
by the Company and each Purchaser or, in the case of a waiver, by the party
against whom enforcement of any such waived provision is sought.  No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of any party to exercise any right hereunder in any manner
impair the exercise of any such right.

5.6           Headings.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

5.7           Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted
assigns.  The Company may not assign this
Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger).  Any Purchaser may assign any or all of its
rights under this Agreement to any Person to whom such Purchaser assigns or
transfers any Securities, provided such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions of the
Transaction Documents that apply to the “Purchasers.”

5.8           No Third-Party Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective successors and permitted assigns and is
not for the benefit of, nor may any provision hereof be enforced by, any other
Person, except as otherwise set forth in Section 4.9.

5.9           Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of the Transaction Documents shall be
governed by and construed and enforced in accordance with the internal laws of
the State of New York, without regard to the principles of conflicts of law
thereof.  Each party agrees that all
legal proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Agreement and any other Transaction
Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York.
Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, borough of Manhattan
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper or is an inconvenient venue for
such proceeding.  Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of
process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by law. 
The parties hereby waive all rights to a trial by jury.  If either party shall commence an action or
proceeding to enforce any provisions of the Transaction Documents, then the
prevailing party in such action or proceeding shall be reimbursed by the

 32
 

other party for its reasonable attorneys’ fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

5.10         Survival.  The representations and warranties contained
herein shall survive the Closing and the delivery of the Shares and Warrant
Shares.

5.11         Execution.  This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. 
In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

5.12         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 commercially 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.

5.13         Rescission and Withdrawal Right.  Notwithstanding anything to the contrary
contained in (and without limiting any similar provisions of) any of the other
Transaction Documents, whenever any Purchaser exercises a right, election,
demand or option under a Transaction Document and the Company does not timely
and materially perform its related obligations within the periods therein
provided, then such Purchaser may rescind or withdraw, in its sole discretion
from time to time upon written notice to the Company, any relevant notice,
demand or election in whole or in part without prejudice to its future actions
and rights; provided, however, in the case of a rescission of an
exercise of a Warrant, the Purchaser shall be required to return any shares of
Common Stock delivered in connection with any such rescinded exercise notice.

5.14         Replacement of Securities.  If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue
or cause to be issued in exchange and substitution for and upon cancellation
thereof (in the case of mutilation), or in lieu of and substitution therefor, a
new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction.  The applicant for a new certificate or
instrument under such circumstances shall also pay any reasonable third-party
costs (including customary indemnity) associated with the issuance of such
replacement Securities.

5.15         Remedies.  In addition to being entitled to exercise all
rights provided herein or granted by law, including recovery of damages, each
of the Purchasers and the Company will be entitled to specific performance
under the Transaction Documents.  The parties
agree that

 33
 

monetary damages may not be adequate compensation for any loss incurred
by reason of any breach of obligations contained in the Transaction Documents
and hereby agrees to waive and not to assert in any action for specific
performance of any such obligation the defense that a remedy at law would be
adequate.

5.16         Payment Set Aside.  To the extent that the Company makes a
payment or payments to any Purchaser pursuant to any Transaction Document or a
Purchaser enforces or exercises its rights thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set
aside, recovered from, disgorged by or are required to be refunded, repaid or
otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of
any such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

5.17         Independent Nature of Purchasers’
Obligations and Rights.  The
obligations of each Purchaser under any Transaction Document are several and
not joint with the obligations of any other Purchaser, and no Purchaser shall
be responsible in any way for the performance or non-performance of the
obligations of any other Purchaser under any Transaction Document.  Nothing contained herein or in any other
Transaction Document, and no action taken by any Purchaser pursuant thereto,
shall be deemed to constitute the Purchasers as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Documents.  Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.  Each Purchaser has been represented by its
own separate legal counsel in their review and negotiation of the Transaction
Documents.  For reasons of administrative
convenience only, Purchasers and their respective counsel have chosen to
communicate with the Company through FWS. 
FWS does not represent all of the Purchasers but only Lehman.  The Company has elected to provide all
Purchasers with the same terms and Transaction Documents for the convenience of
the Company and not because it was required or requested to do so by the
Purchasers.

5.18         Liquidated Damages.  The Company’s obligations to pay any partial
liquidated damages or other amounts owing under the Transaction Documents is a
continuing obligation of the Company and shall not terminate until all unpaid
partial liquidated damages and other amounts have been paid notwithstanding the
fact that the instrument or security pursuant to which such partial liquidated
damages or other amounts are due and payable shall have been canceled.

5.19         Construction. The
parties agree that each of them and/or their respective counsel has reviewed
and had an opportunity to revise the Transaction Documents and, therefore, the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments hereto.

 34
 

5.20         Exculpation Among Purchasers.  Each Purchaser acknowledges that it is not
relying upon any person, firm or corporation (including without limitation
Lehman or any other Purchaser), other than the Company and its officers and
directors (acting in their capacity as representatives of the Company), in
deciding to invest and in making its investment in the Company.  Each
Purchaser agrees that no other Purchaser nor the respective controlling
persons, officers, directors, partners, agents or employees of any other
Purchaser shall be liable to such Purchaser for any losses incurred by such
Purchaser in connection with its investment in the Company.

5.21         Company Acknowledgement.  The Company acknowledges and agrees that (i)
each of the Purchasers is participating in the transactions contemplated by
this Agreement and the other Transaction Documents at the Company’s request and
the Company has concluded that such participation is in the Company’s best
interest and is consistent with the Company’s objectives and (ii) each of the
Purchasers is acting solely in the capacity of an arm’s length purchaser.  The Company further acknowledges that no
Purchaser is acting or has acted as an advisor, agent or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement or the
other Transaction Documents and any advice given by any Purchaser or any of its
respective representatives in connection with this Agreement or the other
Transaction Documents is merely incidental to the Purchasers’ purchase of
Shares and Warrants.  The Company further
represents to each Purchaser that the Company’s decision to enter into this
Agreement has been based solely on the independent evaluation of the
transactions contemplated hereby by the Company and its representatives.

(Signature
Pages Follow)

 35
 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

	
  LPATH, INC.

  	
   

  	
  Address for Notice:

  6335 Ferris Square, Suite A

  San Diego, CA 92121

  Attention: Scott Pancoast, CEO

  Fax: (858) 678-0900

  
	
  By:

  	
  /s/ Scott R.
  Pancoast

  	
   

  	
   

  
	
   

  	
  Name: Scott
  R. Pancoast

  	
   

  	
   

  
	
   

  	
  Title: President,
  CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to
  (which shall not constitute notice):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Eilenberg Krause
  & Paul LLP

  11 East 44th Street, 19th Floor

  New York, New York 10017

  	
   

  	
   

  

 

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SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 36
 

PURCHASER SIGNATURE PAGE TO LPATH SECURITIES PURCHASE AGREEMENT, 2007

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
to be duly executed by their respective authorized signatories as of the date
first indicated above.

	
  Name of Holder:

  	
  LB I Group Inc.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Jeffrey Ferrell

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
  Name of
  Authorized Signatory:

  	
  Jeffrey Ferrell

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder: 

  	
  Panacea Fund, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Charles Polsky

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of Authorized
  Signatory: 

  	
  Charles Polsky

  	
   

  	
   

  
	
   

  
	
  Title of
  Authorized Signatory: 

  	
  Vice President, William
  Harris Investors, Inc., 

  	
   

  	
   

  	
   

  
	
  as Manager of Panacea
  Fund, LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder:

  	
  WHI Growth Fund Q.P.,
  L.P.

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ Charles Polsky

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of
  Authorized Signatory: 

  	
  Charles Polsky

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
  Vice President, William
  Harris Investors, Inc.,

  	
   

  	
   

  	
   

  
	
  as General Partner of
  WHI Growth Fund Q.P., L.P.

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  WHI Select Fund, L.P.

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ Charles Polsky

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of
  Authorized Signatory: 

  	
  Charles Polsky

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
   Vice President, William Harris Investors,
  Inc.,

  	
   

  	
   

  	
   

  
	
  as General Partner of WHI Select Fund, L.P.

  	
   

  	
   

  	
   

  
																																																		

 

[SIGNATURE PAGES
CONTINUE]

 37
 

 

	
  Name of Holder:

  	
  WHI Morula Fund, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	 

	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Charles Polsky

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Name of
  Authorized Signatory:

  	
  Charles Polsky

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Title of
  Authorized Signatory:

  	
  Vice President, William
  Harris Investors, Inc.,

  	
   

  	
   

  	
   

  	 

	
  as Manager of WHI
  Morula Fund, LLC

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Name of Holder: 

  	
  BIOGEN IDEC MA INC.

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Michael Phelps

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Name of Authorized
  Signatory: 

  	
  Michael Phelps

  	
   

  	
   

  	
   

  	 

	
   

  	 

	
  Title of
  Authorized Signatory: 

  	
  Vice President and
  Treasurer

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Name of Holder:

  	
  Scott Pancoast

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ Scott Pancoast

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Name of
  Authorized Signatory: 

  	
  Scott Pancoast

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Title of
  Authorized Signatory:

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Name of Holder: 

  	
  Elise Stoller Living
  Trust

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ Glenn Stoller

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Name of Authorized
  Signatory: 

  	
  Glenn Stoller

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Title of
  Authorized Signatory:

  	
  Co-Trustee

  	
   

  	
   

  	
   

  	 

																																																				

 

[SIGNATURE PAGES
CONTINUE]

 38
 

 

	
  Name of Holder:

  	
  John W. Trzcinka and
  Theresa L. Trzcinka as Joint Tenants

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ John W. Trzcinka

  	
   

  	
   

  
	
   

  	
  /s/ Theresa L. Trzcinka

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of
  Authorized Signatory:

  	
  John W. Trzcinka

  	
   

  	
   

  	
   

  
	
   

  	
  Theresa L. Trzcinka

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  William S. Shestowsky

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ William S.
  Shestowsky

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of Authorized
  Signatory: 

  	
  William S. Shestowsky

  	
   

  	
   

  	
   

  
	
   

  
	
  Title of
  Authorized Signatory: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Genevieve Hansen

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ Genevieve Hansen

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of
  Authorized Signatory: 

  	
  Genevieve Hansen

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder:

  	
  J. Scott Liolios

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ J. Scott Liolios

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of
  Authorized Signatory:

  	
  J. Scott Liolios

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
   

  	
   

  	
   

  
																																											

 

[SIGNATURE PAGES
CONTINUE]

 39
 

 

	
  Name of Holder:

  	
  Charles C. Feddermann

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Charles C.
  Feddermann

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
  Name of
  Authorized Signatory:

  	
  Charles C. Feddermann

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  Roaring Fork Capital
  SBIC, L.P.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ G. Michael Machens

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of Authorized
  Signatory: 

  	
  G. Michael Machens

  	
   

  	
   

  
	
   

  
	
  Title of
  Authorized Signatory: 

  	
  Manager of Roaring Fork
  Capital Management LLC,

  	
   

  	
   

  
	
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder:

  	
  UW Jennie Peierls for
  E. J. Peierls

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ E. Jeffrey Peierls

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of
  Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
  Trustee

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  UW Jennie Peierls for
  B. E. Peierls

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ E. Jeffrey Peierls

  	
   

  	
   

  
	
   

  	
   

  
	
  Name of
  Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  	
   

  
	
   

  	
   

  
	
  Title of
  Authorized Signatory:

  	
  Trustee

  	
   

  	
   

  
																																		

 

[SIGNATURE PAGES
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 40
 

 

	
  Name of Holder: 

  	
  UD E. S. Peierls for E. F. Peierls Et Al

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
   /s/ E.
  Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  UW E. S. Peierls for BEP Art. VI- Accum

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  	 

	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  UD E. F. Peierls for E. J. Peierls

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  UD E. F. Peierls for B. E. Peierls

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  UD Ethel F. Peierls Charitable Lead Trust

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  	 

	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
																										

 

[SIGNATURE PAGES
CONTINUE]

 41
 

 

	
  Name of Holder: 

  	
  UW E. S. Peierls for EJP Art. VI- Accum

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  Brian Eliot Peierls

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Brian Eliot Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  Brian Eliot Peierls

  	
   

  	 

	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Purchaser/Holder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Holder/Purchaser

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  UD J. N. Peierls for E. J. Peierls

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:  

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Holder: 

  	
  UD J. N. Peierls for B. E. Peierls

  	
   

  
	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  	 

	
   

  	
   

  
	
  Name of Authorized Signatory: 

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Trustee

  	
   

  
																												

 

[SIGNATURE PAGES
CONTINUE]

 42
 

 

	
  Name
  of Holder:

  	
  The Peierls Foundation, Inc.

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
   E. Jeffrey
  Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  President

  	
   

  
	
   

  
	
   

  
	
  Name of Holder:

  	
   Boris Volman

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Boris Volman

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Boris Volman

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Name of Holder:

  	
  Sterling Securities International LTD

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Chris Bonvini

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Chris Bonvini

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Director

  	
   

  
	
   

  
	
   

  
	
  Name of Holder:

  	
  Bernard S. Carrey

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Bernard S. Carrey

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Bernard S. Carrey

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
																										

 

[SIGNATURE PAGES
CONTINUE]

 43
 

 

	
  Name of Holder:

  	
  Richard Molinsky

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Richard Molinsky

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Richard Molinsky

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Name of Holder:

  	
    Investment
  Strategies Fund LP

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Matthew Shefler

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Matthew Shefler

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Managing Partner

  	
   

  
	
   

  
	
   

  
	
  Name of Holder:

  	
  Alexander Ruckdaschel

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Alexander Ruckdaschel

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Alexander Ruckdaschel

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Name of Holder:

  	
  Mai N. Pogue

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Mai N. Pogue

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Mai N. Pogue

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
																							

 

[SIGNATURE PAGES
CONTINUE]

 44
 

 

	
  Name of Holder:

  	
  Jacqueline Pogue Tanner

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Jacqueline Pogue Tanner

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Jacqueline Pogue Tanner

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Name of Holder:

  	
    Gerald Pogue

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Gerald Pogue

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Gerald Pogue

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
													

 

 

 45Exhibit 10.15

REGISTRATION RIGHTS AGREEMENT

This Registration
Rights Agreement (this “Agreement”) is made and entered into as of April
6, 2007, between Lpath, Inc., a Nevada corporation (the “Company”) and
each of the several purchasers signatory hereto (each such purchaser, a “Purchaser”
and, collectively, the “Purchasers”).

This Agreement is
made pursuant to the Securities Purchase Agreement, dated as of the date
hereof, between the Company and each Purchaser (the “Purchase Agreement”).

The Company and
each Purchaser hereby agrees as follows:

1.                     Definitions

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

“Advice” shall have the meaning set forth in
Section 6(d).

“Effectiveness Date” means, with respect to the
initial Registration Statement required to be filed hereunder, the earlier of
(i) the 90th calendar day after the Second Closing or (ii)
July 31, 2007 and with respect to any additional Registration Statements which
may be required pursuant to Section 3(c), the 90th calendar day following the date on which an
additional Registration Statement is required to be filed hereunder; provided,
however, that in the event the Company is notified by the Commission
that one or more of the above Registration Statements will not be reviewed or
is no longer subject to further review and comments, the Effectiveness Date as
to such Registration Statement shall be the fifth Trading Day following the
date on which the Company is so notified if such date precedes the dates
otherwise required above.

“Effectiveness Period” shall have the meaning
set forth in Section 2(a).

“Event” shall have the meaning set forth in
Section 2(b).

“Event Date” shall have the meaning set forth
in Section 2(b).

“Filing Date” means, with respect to the
initial Registration Statement required hereunder, the earlier of (i) the 30th calendar day following the Second Closing or
(ii) June 30, 2007 and, with respect to any additional Registration Statements
which may be required pursuant to Section 3(c), the earliest practical date on
which the Company is permitted by SEC Guidance to file such additional
Registration Statement related to the Registrable Securities.

“Holder” or “Holders” means the holder
or holders, as the case may be, from time to time of Registrable Securities.

 1
 

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

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

“Initial Registration Statement” means the
initial Registration Statement filed pursuant to this Agreement.

“Initial Shares” means a number of shares of
Common Stock equal to one-third of the number of shares of Common Stock issued
and outstanding and held by non-affiliates of the Company immediately prior to
the filing date of the Initial Registration Statement.

“Losses” shall have the meaning set forth in
Section 5(a).

“Plan of Distribution” shall have the meaning
set forth in Section 2(a).

“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 a 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, including any free-writing
prospectus, as defined in Rule 433 under the Securities Act.

“Registrable Securities” means (i) all Shares,
(ii) all Warrant Shares (assuming on the date of determination the Warrants are
exercised in full without regard to any exercise limitations therein), (iii)
any additional shares of Common Stock issuable in connection with any
anti-dilution provisions in the Warrants (in each case, without giving effect
to any limitations on exercise set forth in the Warrants) and (iv) any
securities issued or issuable upon any stock split, dividend or other
distribution,  recapitalization or
similar event with respect to the foregoing. 
To the extent that the Initial Registration Statement is required to be
filed prior to the Second Closing, then any Shares or Warrant Shares issued in
connection with the Second Closing shall only become Registrable Securities as
of the Second Closing.

“Registration Statement” means the registration
statement required to be filed hereunder and any additional registration
statements contemplated by Section 3(c), including (in each case) the
Prospectus, 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 415” means Rule 415 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be amended or
interpreted from time to time, or any

 2
 

similar rule or regulation hereafter adopted by the Commission having
substantially the same purpose and effect as such Rule.

“Rule 424” means Rule 424 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be amended or
interpreted from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same purpose and effect as
such Rule.

“Selling Shareholder Questionnaire” shall have
the meaning set forth in Section 3(a).

“SEC Guidance” means (i) any publicly-available
written or oral guidance, comments, requirements or requests of the Commission
staff and (ii) the Securities Act.

2.                     Required
Registration

(a)           On or prior to each
Filing Date, the Company shall prepare and file with the Commission a
Registration Statement covering the resale of all or such portion of the
Registrable Securities as permitted by SEC Guidance (provided that the Company
shall use diligent efforts to advocate with the Commission for the registration
of all of the Registrable Securities in accordance with the SEC Guidance,
including without limitation, the Manual of Publicly Available Telephone
Interpretations D.29) that are not then registered on an effective Registration
Statement for an 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, such as Form SB-2) and
shall contain (unless otherwise directed by at least an 85% majority in
interest of the Holders) the “Plan of Distribution” substantially in the
form attached hereto as Annex A. 
Subject to the terms of this Agreement, the Company shall use its best
efforts to cause a Registration Statement to be declared effective under the
Securities Act as promptly as possible after the filing thereof, but in any
event prior to the applicable Effectiveness Date, and shall use its best efforts
to keep such Registration Statement continuously effective under the Securities
Act until all Registrable Securities covered by such Registration Statement
have been sold, or may be sold without volume restrictions pursuant to Rule
144(k) (the “Effectiveness Period”). 
The Company shall telephonically request effectiveness of a Registration
Statement as of 5:00 p.m. New York City time on a Trading Day.  The Company shall immediately notify the
Holders via facsimile or by e-mail delivery of a “.pdf” format data file of the
effectiveness of a Registration Statement on the same Trading Day that the
Company telephonically confirms effectiveness with the Commission, which shall
be the date requested for effectiveness of a Registration Statement.  The Company shall, by 9:30 a.m. New York City
time on the Trading Day after the Effective Date, file a final Prospectus with
the Commission as required by Rule 424. 
Failure to so notify the Holder within 2 Trading Days of such notification
of effectiveness or failure to file a final Prospectus as foresaid shall be
deemed an Event under Section 2(b). 
Notwithstanding any other provision of this Agreement and subject to the
payment of liquidated damages in Section

 3
 

2(b), if any SEC Guidance sets forth a limitation of
the number of Registrable Securities permitted to be registered on a particular
Registration Statement (and notwithstanding that the Company used diligent
efforts to advocate with the Commission for the registration of all or a
greater number of Registrable Securities), unless otherwise directed in writing
by a Holder as to its Registrable Securities, the number of Registrable
Securities to be registered on such Registration Statement will first be
reduced by Registrable Securities represented by Warrant Shares (applied, in
the case that some Warrant Shares may be registered, to the Holders on a pro
rata basis based on the total number of unregistered Warrant Shares held by
such Holders), and second by Registrable Securities represented by Shares
(applied, in the case that some Shares may be registered, to the Holders on a
pro rata basis based on the total number of unregistered Shares held by such
Holders). The Company may include in the Registration Statement any shares
underlying any warrants issued to the placement agents in the transactions
contemplated hereby, provided, that if any Registrable Securities are required
to be cut back, then such placement agent shares shall be cut back prior to any
Registrable Securities held by any Holder.

(b)           If: (i) the Initial
Registration Statement is not filed on or prior to its Filing Date (if the
Company files the Initial Registration Statement without affording the Holders
the opportunity to review and comment on the same as required by Section 3(a)
herein, the Company shall be deemed to have not satisfied this clause (i)), or
(ii) the Company fails to file with the Commission a request for acceleration
of a Registration Statement in accordance with Rule 461 promulgated under the
Securities Act, within five Trading Days of the date that the Company is
notified (orally or in writing, whichever is earlier) by the Commission that
such Registration Statement will not be “reviewed” or not be subject to further
review, or (iii) prior to the Effectiveness Date of a Registration Statement,
the Company fails to file a pre-effective amendment and otherwise respond in
writing to comments made by the Commission in respect of such Registration
Statement within 10 Trading Days after the receipt of comments by or notice
from the Commission that such amendment is required in order for such
Registration Statement to be declared effective, or (iv) as to, in the
aggregate among all Holders on a pro-rata basis based on their purchase of the
Securities pursuant to the Purchase Agreement, a Registration Statement
registering for resale all of the Initial Shares is not declared effective by
the Commission by the Effectiveness Date of the Initial Registration Statement,
or (v) all of the Registrable Securities are not registered for resale pursuant
to one or more effective Registration Statements on or before March 31, 2008,
or (vi) after the Effectiveness Date of a Registration Statement, such
Registration Statement ceases for any reason to remain continuously effective
as to all Registrable Securities included in such Registration Statement, or
the Holders are otherwise not permitted to utilize the Prospectus therein to
resell such Registrable Securities, for more than 30 consecutive calendar days
or more than an aggregate of 60 calendar days during any 12-month period (which
need not be consecutive calendar days) (any such failure or breach being
referred to as an “Event”, and for purposes of clause (i), (iv) or (v)
the date on which such Event occurs, or for purposes of clause (ii) the date on
which such five Trading Day period is exceeded, or for purposes of clause (iii)
the date which such 10 calendar day period is exceeded, or for purposes of
clause (vi) the date on which such 30 or 60 calendar day period, as

 4
 

applicable, is exceeded being referred to as “Event
Date”), then, in addition to any other rights the Holders may have
hereunder or under applicable law, on each such Event Date and on each monthly
anniversary of each such Event Date (if the applicable Event shall not have
been cured by such date) until the applicable Event is cured, the Company shall
pay to each Holder an amount in cash, as partial liquidated damages and not as
a penalty, equal to 1.25% of the aggregate purchase price paid by such Holder
pursuant to the Purchase Agreement for the number of shares of unregistered
Registrable Securities then held by such Holder (except such number shall not
include any Warrant Shares unless the Warrants are then “in the money” at such
time).  The parties agree that (1) the
Company shall not be liable for liquidated damages under this Agreement with
respect to any Warrants or Warrant Shares and (2) the maximum aggregate
liquidated damages payable to a Holder under this Agreement shall be 8.75% of
the aggregate Subscription Amount paid by such Holder pursuant to the Purchase
Agreement.  If the Company fails to pay
any partial liquidated damages pursuant to this Section in full within seven
calendar days after the date payable, the Company will pay interest thereon at
a rate of 18% per annum (or such lesser maximum amount that is permitted to be
paid by applicable law) to the Holder, accruing daily from the date such
partial liquidated damages are due until such amounts, plus all such interest
thereon, are paid in full. The partial liquidated damages pursuant to the terms
hereof shall apply on a daily pro rata basis for any portion of a month prior
to the cure of an Event.

3.             Registration
Procedures.

In connection with
the Company’s registration obligations hereunder, the Company shall:

(a)           Not less than 5 Trading
Days prior to the filing of each Registration Statement and not less than one
Trading Day prior to the filing of any related Prospectus or any amendment or
supplement thereto (including any document that would be incorporated or deemed
to be incorporated therein by reference), the Company shall (i) furnish to each
Holder copies of all such documents proposed to be filed, which documents
(other than those incorporated or deemed to be incorporated by reference) will
be subject to the review of such Holders and (ii) cause its officers and
directors, counsel and independent certified public accountants to respond to
such inquiries as shall be necessary, in the reasonable opinion of respective
counsel to each Holder, to conduct a reasonable investigation within the
meaning of the Securities Act. The Company shall not file a Registration
Statement or any such Prospectus or any amendments or supplements thereto to
which the Holders of a majority of the Registrable Securities shall reasonably
object in good faith, provided that the Company is notified of such objection
in writing no later than 5 Trading Days after the Holders have been so
furnished copies of a Registration Statement or 1 Trading Day after the Holders
have been so furnished copies of any related Prospectus or amendments or
supplements thereto. Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex B (a “Selling
Shareholder Questionnaire”) by the earlier of (i) two Trading Days prior to
the Filing Date or (ii) by the end of the fourth Trading Day following the date
on which such Holder receives draft materials in accordance with this Section
3(a).

 5
 

(b)           (i) Prepare and file
with the Commission such amendments, including post-effective amendments, to a
Registration Statement and the Prospectus used in connection therewith as may
be necessary to keep a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and
file with the Commission such additional Registration Statements in order to
register for resale under the Securities Act all of the Registrable Securities;
(ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement (subject to the terms of this Agreement), and, as so
supplemented or amended, to be filed pursuant to Rule 424; (iii) respond as
promptly as reasonably possible to any comments received from the Commission
with respect to a Registration Statement or any amendment thereto and provide
as promptly as reasonably possible to the Holders true and complete copies of
all correspondence from and to the Commission relating to a Registration
Statement (provided that the Company may excise any information contained
therein which would constitute material non-public information as to any Holder
which has not executed a confidentiality agreement with the Company); and (iv)
comply in all material respects with the provisions of the Securities Act and
the Exchange Act with respect to the disposition of all Registrable Securities
covered by a Registration Statement during the applicable period in accordance
(subject to the terms of this Agreement) with the intended methods of
disposition by the Holders thereof set forth in such Registration Statement as
so amended or in such Prospectus as so supplemented.

(c)           If during the
Effectiveness Period, the number of Registrable Securities at any time exceeds
100% of the number of shares of Common Stock then registered in a Registration
Statement, then the Company shall file as soon as reasonably practicable, but
in any case prior to the applicable Filing Date, an additional Registration
Statement covering the resale by the Holders of not less than the number of
such Registrable Securities, subject to any limitations pursuant to SEC
Guidance.

(d)           Notify the Holders of
Registrable Securities to be sold (which notice shall, pursuant to clauses
(iii) through (vi) hereof, be accompanied by an instruction to suspend the use
of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than one
Trading Day prior to such filing) and (if requested by any such Person) confirm
such notice in writing no later than one Trading Day following the day (i)(A)
when a Prospectus or any Prospectus supplement or post-effective amendment to a
Registration Statement is proposed to be filed; and (B) 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;; (ii) of any request by the Commission or any other federal or state
governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information; (iii) of the issuance by
the Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of a Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale

 6
 

in any jurisdiction, or the initiation or threatening
of any Proceeding for such purpose; (v) of the occurrence of any event or
passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a
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 a Registration Statement, Prospectus or other
documents so that, in the case of a Registration Statement or the 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; and (vi) of the occurrence or existence of any
pending corporate development with respect to the Company that the Company
believes may be material and that, in the determination of the Company, makes
it not in the best interest of the Company to allow continued availability of a
Registration Statement or Prospectus, provided that any and all of such
information shall be kept confidential by each Holder until such information
otherwise becomes public, unless disclosure by a Holder is required by law; provided,
further, that notwithstanding each Holder’s agreement to keep such
information confidential, each such Holder makes no acknowledgement that any
such information is material, non-public information.

(e)           Use its best efforts to
avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order
stopping or suspending the effectiveness of a Registration Statement, or (ii)
any suspension of the qualification (or exemption from qualification) of any of
the Registrable Securities for sale in any jurisdiction, at the earliest
practicable moment.

(f)            RESERVED.

(g)           Subject to the terms of
this Agreement, the Company hereby consents to the use of such Prospectus and
each amendment or supplement thereto by each of the selling Holders in
connection with the offering and sale of the Registrable Securities covered by
such Prospectus and any amendment or supplement thereto, except after the
giving of any notice pursuant to Section 3(d).

(h)            The Company shall
effect a filing with respect to the public offering contemplated by each
Registration Statement (an “Issuer Filing”) with the National
Association of Securities Dealers, Inc. (“NASD”) Corporate Financing
Department pursuant to NASD Rule 2710(b)(10)(A)(i) within one Trading Day of
the date that the Registration Statement is first filed with the Commission and
pay the filing fee required by such Issuer Filing.  The Company shall use commercially reasonable
efforts to pursue the Issuer Filing until the NASD issues a letter confirming
that it does not object to the terms of the offering contemplated by the
Registration Statement as described in the Plan of Distribution attached hereto
as Annex A.  A copy of the Issuer Filing
and all related correspondence to or from the NASD with respect thereto shall
be provided to FWS.

(i)            Prior to any resale of
Registrable Securities by a Holder, use its commercially reasonable efforts to
register or qualify or cooperate with the selling

 7
 

Holders in connection with the registration or
qualification (or exemption from the Registration or qualification) of such
Registrable Securities for the resale by the Holder under the securities or
Blue Sky laws of such jurisdictions within the United States as any Holder reasonably
requests in writing, to keep each registration or qualification (or exemption
therefrom) effective during the Effectiveness Period and to do any and all
other acts or things reasonably necessary to enable the disposition in such
jurisdictions of the Registrable Securities covered by each Registration
Statement; provided, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified,
subject the Company to any material tax in any such jurisdiction where it is
not then so subject or file a general consent to service of process in any such
jurisdiction.

(j)            If requested by a
Holder, cooperate with such Holders to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be delivered to
a transferee pursuant to a Registration Statement, which certificates shall be
free, to the extent permitted by the Purchase Agreement and applicable state
and Federal laws, of all restrictive legends, and to enable such Registrable
Securities to be in such denominations and registered in such names as any such
Holder may request.

(k)           Upon the occurrence of
any event contemplated by Section 3(d), as promptly as reasonably possible
under the circumstances taking into account the Company’s good faith assessment
of any adverse consequences to the Company and its stockholders of the
premature disclosure of such event, prepare a supplement or amendment,
including a post-effective amendment, to a Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither a Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.  If the Company notifies
the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above
to suspend the use of any Prospectus until the requisite changes to such
Prospectus have been made, then the Holders shall suspend use of such
Prospectus.  The Company will use its
best efforts to ensure that the use of the Prospectus may be resumed as
promptly as is practicable.  The Company
shall be entitled to exercise its right under this Section 3(k) to suspend the
availability of a Registration Statement and Prospectus, subject to the payment
of partial liquidated damages otherwise required pursuant to Section 2(b), for
a period not to exceed 60 calendar days (which need not be consecutive days) in
any 12 month period.

(l)            Comply in all material
respects with all applicable rules and regulations of the Commission.

(m)          In addition to providing
the information required in the Selling Shareholder Questionnaire, the Company
may require each selling Holder to furnish to the Company a certified statement
as to the number of shares of Common Stock beneficially owned by such Holder
and, if required by the Commission, the natural

 8
 

persons thereof that have voting and dispositive
control over the shares. During any periods that the Company is unable to meet
its obligations hereunder with respect to the registration of the Registrable
Securities solely because any Holder fails to furnish such information within
three Trading Days of the Company’s request or fails to deliver its Selling
Shareholder Questionnaire on a timely basis pursuant to Section 3(a) hereof,
any liquidated damages that are accruing at such time shall be tolled and any
Event that may otherwise occur solely because of such delay shall be suspended,
until such information is delivered to the Company.

4.                 Registration
Expenses. All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration
Statement. The fees and expenses referred to in the foregoing sentence shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and auditors)
(A) with respect to filings made with the Commission, (B) with respect to filings
required to be made with any Trading Market on which the Common Stock is then
listed for trading, (C) in compliance with applicable state securities or Blue
Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection
with Blue Sky qualifications or exemptions of the Registrable Securities) and
(D) if not previously paid by the Company in connection with an Issuer Filing,
with respect to any filing that may be required to be made by any broker
through which a Holder intends to make sales of Registrable Securities with the
NASD pursuant to NASD Rule 2710, so long as the broker is receiving no more
than a customary brokerage commission in connection with such sale, (ii)
printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities), (iii) messenger, telephone and
delivery expenses, (iv) fees and disbursements of counsel for the Company, (v)
Securities Act liability insurance, if the Company so desires such insurance,
and (vi) fees and expenses of all other Persons retained by the Company in
connection with the consummation of the transactions contemplated by this
Agreement.  In addition, the Company
shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual
audit and the fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange as required hereunder.  In no event shall the Company be responsible
for any broker or similar commissions of any Holder or, except to the extent
provided for in the Transaction Documents, any legal fees or other costs of the
Holders.

5.                 Indemnification.

(a)           Indemnification by
the Company. The Company shall, notwithstanding any termination of this Agreement,
indemnify and hold harmless each Holder, the officers, directors, members,
partners, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such
title or any other title) of each of them, each Person who controls any such
Holder (within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act) and the officers, directors, members, shareholders, partners,
agents and employees

 9
 

(and any other Persons with a functionally equivalent
role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each such controlling Person, to the fullest extent
permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable
attorneys’ fees) and expenses (collectively, “Losses”), as incurred,
arising out of or relating to (1) any untrue or alleged untrue statement of a
material fact contained in a Registration Statement, any Prospectus or any form
of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or supplement thereto, in
light of the circumstances under which they were made) not misleading or (2)
any violation or alleged violation by the Company of the Securities Act, the Exchange
Act or any state securities law, or any rule or regulation thereunder, in
connection with the performance of its obligations under this Agreement, except
to the extent, but only to the extent, that (i) such untrue statements or
omissions are in reliance upon, and in conformity with, information regarding
such Holder furnished in writing to the Company by such Holder expressly for
use therein, or to the extent that such information relates to such Holder or
such Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
a Registration Statement, such Prospectus or in any amendment or supplement
thereto (it being understood that the Holder has approved Annex A hereto for
this purpose) or (ii) in the case of an occurrence of an event of the type
specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(d). 
The Company shall notify the Holders promptly of the institution, threat
or assertion of any Proceeding arising from or in connection with the
transactions contemplated by this Agreement of which the Company is aware.

(b)           Indemnification by
Holders. Each Holder shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each
Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as incurred,
to the extent arising out of or based solely upon: (x) such Holder’s failure to
comply with the prospectus delivery requirements of the Securities Act or (y)
any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, any Prospectus, or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein not misleading (i) to the extent,
but only to the extent, that such untrue statement or omission is contained in
any information so furnished in writing by such Holder to the Company
specifically for inclusion in such Registration Statement or such Prospectus or
(ii) to the extent that such information relates to such Holder’s proposed
method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in a Registration
Statement (it being

 10
 

understood that the Holder has approved Annex A hereto
for this purpose), such Prospectus or in any amendment or supplement thereto or
(ii) in the case of an occurrence of an event of the type specified in Section
3(d)(iii)-(vi), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice
contemplated in Section 6(d). In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

(c)           Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against any
Person entitled to indemnity hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”) in writing, and the Indemnifying Party
shall have the right to assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that
the failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this
Agreement, except (and only) to the extent that it shall be finally determined
by a court of competent jurisdiction (which determination is not subject to
appeal or further review) that such failure shall have prejudiced the
Indemnifying Party.

An Indemnified Party shall have the right to employ
separate counsel in any such Proceeding and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party or Parties unless: 
(1) the Indemnifying Party has agreed in writing to pay such fees and
expenses; (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to
such Indemnified Party in any such Proceeding; or (3) the named parties to any
such Proceeding (including any impleaded parties) include both such Indemnified
Party and the Indemnifying Party, and counsel to the Indemnified Party shall
reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in
writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and the reasonable fees and expenses of no more than one
separate counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld or delayed.  No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party
from all liability on claims that are the subject matter of such Proceeding.

Subject to the terms of this Agreement, all reasonable
fees and expenses of the Indemnified Party (including reasonable fees and
expenses to the extent incurred in

 11
 

connection with investigating or preparing to defend such Proceeding in
a manner not inconsistent with this Section) shall be paid to the Indemnified
Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
previously disbursed and that are applicable to such actions for which such Indemnified
Party is judicially determined to be not entitled to indemnification hereunder.

(d)           Contribution. If
the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
Party or insufficient to hold an Indemnified Party harmless for any Losses,
then each Indemnifying Party shall contribute to the amount paid or payable by
such Indemnified Party, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well
as any other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission.  The
amount paid or payable by a party as a result of any Losses shall be deemed to
include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such
fees or expenses if the indemnification provided for in this Section was
available to such party in accordance with its terms.

The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph.  Notwithstanding the
provisions of this Section 5(d), no Holder shall be required to contribute, in
the aggregate, any amount in excess of the amount by which the net proceeds
actually received by such Holder from the sale of the Registrable Securities
subject to the Proceeding exceeds the amount of any damages that such Holder
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

The indemnity and contribution agreements contained in
this Section are in addition to any liability that the Indemnifying Parties may
have to the Indemnified Parties.

6.                 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,

 12
 

including recovery of
damages, shall be entitled to specific performance of its rights under this
Agreement.  The Company and each Holder
agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall not assert or shall
waive the defense that a remedy at law would be adequate.

(b)           No Piggyback on
Registrations. Except as set forth on Schedule 6(b) attached hereto
[and in connection with transactions contemplated by clause (d) under Exempt
Issuance], 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 Statements other than the Registrable Securities.  The Company shall not file any other
registration statements until the Initial Registration Statement is declared
effective by the Commission, provided that this Section 6(b) shall not prohibit
the Company from filing amendments to registration statements filed prior to
the date of this Agreement.

(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 a Registration Statement.

(d)           Discontinued
Disposition.  By its acquisition of
Registrable Securities, each Holder agrees that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in Section
3(d)(iii) through (vi), such Holder will forthwith discontinue disposition of
such Registrable Securities under a Registration Statement until it is advised
in writing (the “Advice”) by the Company that the use of the applicable
Prospectus (as it may have been supplemented or amended) may be resumed.  The Company will use its best efforts to
ensure that the use of the Prospectus may be resumed as promptly as it
practicable.  The Company agrees and
acknowledges that any periods during which the Holder is required to
discontinue the disposition of the Registrable Securities hereunder shall be
subject to the provisions of Section 2(b).

(e)           Piggy-Back Registrations.
If at any time during the Effectiveness Period there is not an effective
Registration Statement covering all of the Registrable Securities 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 the Company’s stock option or other employee benefit plans,
then the Company shall send to each Holder a written notice of such determination
and, if within fifteen days after the date 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; provided, however, that the Company shall not
be required to register any Registrable Securities pursuant to this Section
6(e) that are eligible for resale pursuant to Rule 144(k) promulgated under the
Securities Act or that are the subject of a then effective Registration
Statement.

 13
 

(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 a majority of
the then outstanding Registrable Securities (including, for this purpose any
Registrable Securities issuable upon exercise or conversion of any Security).  If a Registration Statement does not register
all of the Registrable Securities pursuant to a waiver or amendment done in
compliance with the previous sentence, then the number of Registrable
Securities to be registered for each Holder shall be reduced pro rata among all
Holders and each Holder shall have the right to designate which of its
Registrable Securities shall be omitted from such Registration Statement.
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 some Holders and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of all 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 first  sentence of this Section 6(f).

(g)           Notices. Any and
all notices or other communications or deliveries required or permitted to be
provided hereunder shall be delivered as set forth in the Purchase Agreement.

(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 (except by merger,
consolidation or similar transaction) its rights or obligations hereunder
without the prior written consent of all of the Holders of the then-outstanding
Registrable Securities. Each Holder may assign their respective rights
hereunder in the manner and to the Persons as permitted under the Purchase
Agreement.

(i)            No Inconsistent
Agreements. Neither the Company nor any of its Subsidiaries has entered, as
of the date hereof, nor shall the Company or any of its Subsidiaries, on or
after the date of this Agreement, enter into any agreement with respect to its
securities, that would have the effect of impairing the rights granted to the
Holders in this Agreement or otherwise conflicts with the provisions
hereof.  Except as set forth on Schedule
6(i), neither the Company nor any of its subsidiaries has previously
entered into any agreement granting any registration rights with respect to any
of its securities to any Person that have not been satisfied in full.

(j)            Execution and
Counterparts. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart.  In the event
that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 14
 

(k)           Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

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

(m)          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 commercially
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.

(n)           Headings. The
headings in this Agreement are for convenience only, do not constitute a part
of the Agreement and shall not be deemed to limit or affect any of the
provisions hereof.

(o)           Independent Nature
of Holders’ Obligations and Rights. The obligations of each Holder
hereunder are several and not joint with the obligations of any other Holder
hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in
any other agreement or document delivered at any closing, and no action taken
by any Holder pursuant hereto or thereto, shall be deemed to constitute the
Holders as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Holders are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement. Each Holder shall be entitled to protect and enforce its
rights, including without limitation the rights arising out of this Agreement,
and it shall not be necessary for any other Holder to be joined as an
additional party in any proceeding for such purpose.

********************

 15
 

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

	
  

  	
  LPATH,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott R.
  Pancoast

  
	
   

  	
   

  	
  Name: Scott R.
  Pancoast

  
	
   

  	
   

  	
  Title:
  President, CEO

  

 

[SIGNATURE PAGE OF
HOLDERS FOLLOWS]

 16
 

SIGNATURE
PAGE TO LPATH REGISTRATION RIGHTS AGREEMENT, 2007

	
  Name of Holder:

  	
  LB I Group Inc.

  	
   

  	
   

  
	
   

  
	
  Signature of Authorized
  Signatory of Holder:

  	
  /s/ Jeffrey Ferrell

  	
   

  
	
   

  
	
  Name of Authorized
  Signatory:

  	
  Jeffrey Ferrell

  	
   

  
	
   

  
	
  Title of Authorized
  Signatory:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Panacea Fund, LLC

  	
   

  
	
   

  
	
  Signature of Authorized
  Signatory of Holder:

  	
  /s/ Charles Polsky

  	
   

  
	
   

  
	
  Name of Authorized
  Signatory:

  	
  Charles Polsky

  	
   

  
	
   

  
	
  Title of Authorized
  Signatory:

  	
  Vice President, William
  Harris Investors, Inc.,

  	
   

  
	
  as Manager of Panacea
  Fund, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  WHI Growth Fund Q.P.,
  L.P.

  	
   

  
	
   

  
	
  Signature of Authorized
  Signatory of Holder:

  	
  /s/ Charles Polsky

  	
   

  
	
   

  
	
  Name of Authorized
  Signatory:

  	
  Charles Polsky

  	
   

  
	
   

  
	
  Title of Authorized
  Signatory:

  	
  Vice President, William
  Harris Investors, Inc.,

  	
   

  
	
  as General Partner of
  WHI Growth Fund Q.P., L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  WHI Select Fund, L.P.

  	
   

  
	
   

  
	
  Signature of Authorized
  Signatory of Holder:

  	
  /s/ Charles Polsky

  	
   

  
	
   

  
	
  Name of Authorized
  Signatory:

  	
  Charles Polsky

  	
   

  
	
   

  
	
  Title of Authorized
  Signatory:

  	
  Vice President, William
  Harris Investors, Inc.,

  	
   

  
	
  as General Partner of WHI Select Fund, L.P.

  	
   

  
																																

 

[SIGNATURE PAGES
CONTINUE]

 17
 

 

	
  Name of Holder:

  	
  WHI Morula Fund, LLC

  	
   

  	 

	
   

  	 

	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Charles Polsky

  	
   

  	 

	
   

  	 

	
  Name of Authorized Signatory:

  	
  Charles Polsky

  	
   

  	 

	
   

  	 

	
  Title of Authorized Signatory:

  	
  Vice President, William
  Harris Investors, Inc.,

  	
   

  
	
  as Manager of WHI Morula Fund, LLC

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Name of Holder:

  	
  BIOGEN IDEC MA INC.

  	
   

  	 

	
   

  	 

	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Michael Phelps

  	
   

  	 

	
   

  	 

	
  Name of Authorized Signatory:

  	
  Michael Phelps

  	
   

  	 

	
   

  	 

	
  Title of Authorized Signatory:

  	
  Vice President and Treasurer

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Name of Holder:

  	
  Scott Pancoast

  	
   

  	 

	
   

  	 

	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Scott Pancoast

  	
   

  	 

	
   

  	 

	
  Name of Authorized Signatory:

  	
  Scott Pancoast

  	
   

  	 

	
   

  	 

	
  Title of Authorized Signatory:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Name of Holder:

  	
  Elise Stoller Living Trust

  	
   

  	 

	
   

  	 

	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Glenn Stoller

  	
   

  	 

	
   

  	 

	
  Name of Authorized Signatory:

  	
  Glenn Stoller

  	
   

  	 

	
   

  	 

	
  Title of Authorized Signatory:

  	
  Co-Trustee

  	
   

  	 

																							

 

[SIGNATURE PAGES CONTINUE]

 18
 

 

	
  Name
  of Holder:

  	
  John W. Trzcinka and Theresa L. Trzcinka as Joint
  Tenants

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ John W. Trzcinka

  	
   

  
	
   

  	
  /s/ Theresa L. Trzcinka

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  John W. Trzcinka

  	
   

  
	
   

  	
  Theresa L. Trzcinka

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  William S. Shestowsky

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ William S. Shestowsky

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  William S. Shestowsky

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Genevieve Hansen

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Genevieve Hansen

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Genevieve Hansen

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  J. Scott Liolios

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ J. Scott Liolios

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  J. Scott Liolios

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
																								

 

[SIGNATURE PAGES
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  Name of Holder:

  	
  Charles C. Feddermann

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Charles C. Feddermann

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Charles C. Feddermann

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Roaring Fork Capital SBIC, L.P.

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ G. Michael Machens

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  G. Michael Machens

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Manager of Roaring Fork Capital Management LLC,

  	
   

  
	
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  UW Jennie Peierls for E. J. Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  UW Jennie Peierls for B. E. Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
																								

 

[SIGNATURE PAGES
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 20
 

 

	
  Name of Holder:

  	
  UD E. S. Peierls for E. F. Peierls Et Al

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  UW E.S. Peierls for BEP Art. VI- Accum

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  UD E. F. Peierls for E. J. Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  UD E. F. Peierls for B. E. Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
																		

 

[SIGNATURE PAGES
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 21
 

 

	
  Name of Holder:

  	
  UD Ethel F. Peierls Charitable Lead Trust

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  UW E. S. Peierls for EJP Art. VI- Accum

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Brian Eliot Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Brian Eliot Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Brian Eliot Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Purchaser/Holder

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Holder/Purchaser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  UD J. N. Peierls for E. J. Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  [SIGNATURE PAGES
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 22
 

 

	
  Name of Holder:

  	
  UD J. N. Peierls for B. E. Peierls

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  The Peierls Foundation, Inc.

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  E. Jeffrey Peierls

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Boris Volman

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Boris Volman

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Boris Volman

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Sterling Securities International LTD

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Chris Bonvini

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Chris Bonvini

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Director

  	
   

  
																			

 

[SIGNATURE PAGES
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  Name of Holder:

  	
  Richard Molinsky

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Richard Molinsky

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Richard Molinsky

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Investment Strategies Fund LP

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Matthew Shefler

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Matthew Shefler

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
  Managing Partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Alexander Ruckdaschel

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Alexander Ruckdaschel

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Alexander Ruckdaschel

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Mai N. Pogue

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Mai N. Pogue

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Mai N. Pogue

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
																					

 

[SIGNATURE PAGES
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  Name of Holder:

  	
  Jacqueline Pogue Tanner

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Jacqueline Pogue Tanner

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Jacqueline Pogue Tanner

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Holder:

  	
  Gerald Pogue

  	
   

  
	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
  /s/ Gerald Pogue

  	
   

  
	
   

  
	
  Name of Authorized Signatory:

  	
  Gerald Pogue

  	
   

  
	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
													

 

 

 

 25

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