Document:

NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
      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
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

    

    COMMON
      STOCK PURCHASE WARRANT

    

    To
      Purchase ___________
      Shares
      of
      Common Stock of

     

    CyberDefender
      Corporation

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, _______________
      (the
      “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date hereof (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the fifth anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from CyberDefender Corporation,
      a
      California corporation (the “Company”),
      ____________
      shares
      (the “Warrant
      Shares”)
      of
      Common Stock, no par value, of the Company (the “Common
      Stock”).
      The
      purchase price of one share of Common Stock under this Warrant shall be equal
      to
      the Exercise Price, as defined in Section 2(b). 

     

    
      	Section
              1.	
              Definitions.
                Capitalized terms used and not otherwise defined herein shall have
                the
                meanings set forth in that certain Securities Purchase Agreement
                (the
                “Purchase
                Agreement”),
                dated the Initial Exercise Date, between the Company and the
                Holder.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	Section
              2.	
              Exercise.

            

    

     

    
      	 	
              a)

            	
              Exercise
                of Warrant.
                Exercise of the purchase rights represented by this Warrant may be
                made at
                any time or times on or after the Initial Exercise Date and on or
                before
                the Termination Date by delivery to the Company of a duly executed
                facsimile copy of the Notice of Exercise Form annexed hereto (or
                such
                other office or agency of the Company as it may designate by notice
                in
                writing to the registered Holder at the address of such Holder appearing
                on the books of the Company); provided,
                however,
                within 5 Trading Days of the date said Notice of Exercise is delivered
                to
                the Company, the Holder shall have surrendered this Warrant to the
                Company
                and the Company shall have received payment of the aggregate Exercise
                Price of the shares thereby purchased by wire transfer or cashier’s check
                drawn on a United States bank. 

            

    

     

    
      	 	
              b)

            	
              Exercise
                Price.
                The exercise price per share of Common Stock under this Warrant shall
                be
                $1.25, subject to adjustment hereunder (the “Exercise
                Price”).

            

    

     

    
      	 	
              c)

            	
              Exercise
                Limitations;
                Holder’s
                Restrictions.
                The Holder shall not have the right to exercise any portion of this
                Warrant, pursuant to Section 2(c) or otherwise, to the extent that
                after
                giving effect to such issuance after exercise, the Holder (together
                with
                the Holder’s affiliates), as set forth on the applicable Notice of
                Exercise, would beneficially own in excess of 4.99% of the number
                of
                shares of the Common Stock issued and outstanding immediately after
                giving
                effect to such issuance.  For purposes of the foregoing sentence, the
                number of shares of Common Stock beneficially owned by the Holder
                and its
                affiliates shall include the number of shares of Common Stock issuable
                upon exercise of this Warrant with respect to which the determination
                of
                such sentence is being made, but shall exclude the number of shares
                of
                Common Stock which would be issuable upon (A) exercise of the remaining,
                nonexercised portion of this Warrant beneficially owned by the Holder
                or
                any of its affiliates and (B) exercise or conversion of the unexercised
                or
                nonconverted portion of any other securities of the Company (including,
                without limitation, any other Notes or Warrants) subject to a limitation
                on conversion or exercise analogous to the limitation contained herein
                beneficially owned by the Holder or any of its affiliates.  Except as
                set forth in the preceding sentence, for purposes of this Section
                2(c),
                beneficial ownership shall be calculated in accordance with Section
                13(d)
                of the Exchange Act, it being acknowledged by Holder that the Company
                is
                not representing to Holder that such calculation is in compliance
                with
                Section 13(d) of the Exchange Act and Holder is solely responsible
                for any
                schedules required to be filed in accordance therewith. To the extent
                that
                the limitation contained in this Section 2(c) applies, the determination
                of whether this Warrant is exercisable (in relation to other securities
                owned by the Holder) and of which a portion of this Warrant is exercisable
                shall be in the sole discretion of such Holder, and the submission
                of a
                Notice of Exercise shall be deemed to be such Holder’s determination of
                whether this Warrant is exercisable (in relation to other securities
                owned
                by such Holder) and of which portion of this Warrant is exercisable,
                in
                each case subject to such aggregate percentage limitation, and the
                Company
                shall have no obligation to verify or confirm the accuracy of such
                determination. For purposes of this Section 2(c), in determining
                the
                number of outstanding shares of Common Stock, the Holder may rely
                on the
                number of outstanding shares of Common Stock as reflected in (x)
                the
                Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a
                more recent public announcement by the Company or (z) any other notice
                by
                the Company or the Company’s Transfer Agent setting forth the number of
                shares of Common Stock outstanding.  Upon the written or oral request
                of the Holder, the Company shall within two Trading Days confirm
                orally
                and in writing to the Holder the number of shares of Common Stock
                then
                outstanding.  In any case, the number of outstanding shares of Common
                Stock shall be determined after giving effect to the conversion or
                exercise of securities of the Company, including this Warrant, by
                the
                Holder or its affiliates since the date as of which such number of
                outstanding shares of Common Stock was reported. The provisions of
                this
                Section 2(c) may be waived by the Holder upon, at the election of
                the
                Holder, not less than 61 days’ prior notice to the Company, and the
                provisions of this Section 2(c) shall continue to apply until such
                61st
                day (or such later date, as determined by the Holder, as may be specified
                in such notice of waiver).

            

    

    
      
        
        

      

      
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              d)

            	
              Mechanics
                of Exercise.
                

            

    

    

    
      	
            	i)	
              Authorization
                of Warrant Shares.
                The Company covenants that all Warrant Shares which may be issued
                upon the
                exercise of the purchase rights represented by this Warrant will,
                upon
                exercise of the purchase rights represented by this Warrant, be duly
                authorized, validly issued, fully paid and nonassessable and free
                from all
                taxes, liens and charges in respect of the issue thereof (other than
                taxes
                in respect of any transfer occurring contemporaneously with such
                issue).
                The Company covenants that during the period the Warrant is outstanding,
                it will reserve from its authorized and unissued Common Stock a sufficient
                number of shares to provide for the issuance of the Warrant Shares
                upon
                the exercise of any purchase rights under this Warrant. The Company
                further covenants that its issuance of this Warrant shall constitute
                full
                authority to its officers who are charged with the duty of executing
                stock
                certificates to execute and issue the necessary certificates for
                the
                Warrant Shares upon the exercise of the purchase rights under this
                Warrant. The Company will take all such reasonable action as may
                be
                necessary to assure that such Warrant Shares may be issued as provided
                herein without violation of any applicable law or regulation, or
                of any
                requirements of the Trading Market upon which the Common Stock may
                be
                listed.

            

    

    
      
        
        

      

      
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            	ii)	
              Delivery
                of Certificates Upon Exercise.
                Certificates for shares purchased hereunder shall be transmitted
                by the
                transfer agent of the Company to the Holder by crediting the account
                of
                the Holder’s prime broker with the Depository Trust Company through its
                Deposit Withdrawal Agent Commission (“DWAC”)
                system if the Company is a participant in such system, and otherwise
                by
                physical delivery to the address specified by the Holder in the Notice
                of
                Exercise within 7 Trading Days from the delivery to the Company of
                the
                Notice of Exercise Form, surrender of this Warrant and payment of
                the
                aggregate Exercise Price as set forth above (“Warrant
                Share Delivery Date”).
                This Warrant shall be deemed to have been exercised on the date the
                Exercise Price is received by the Company. The Warrant Shares shall
                be
                deemed to have been issued, and Holder or any other person so designated
                to be named therein shall be deemed to have become a holder of record
                of
                such shares for all purposes, as of the date the Warrant has been
                exercised by payment to the Company of the Exercise Price and all
                taxes
                required to be paid by the Holder, if any, pursuant to Section 2(d)(vi)
                prior to the issuance of such shares, have been paid.
                

            

    

     

    
      	
            	iii)	
              Delivery
                of New Warrants Upon Exercise.
                If this Warrant shall have been exercised in part, the Company shall,
                at
                the time of delivery of the certificate or certificates representing
                Warrant Shares, deliver to Holder a new Warrant evidencing the rights
                of
                Holder to purchase the unpurchased Warrant Shares called for by this
                Warrant, which new Warrant shall in all other respects be identical
                with
                this Warrant.

            

    

     

    
      	
            	iv)	
              Rescission
                Rights.
                If the Company fails to cause its transfer agent to transmit to the
                Holder
                a certificate or certificates representing the Warrant Shares by
                the
                Warrant Share Delivery Date, then the Holder will have the right
                to
                rescind such exercise.

            

    

     

    
      	
            	v)	
              No
                Fractional Shares or Scrip.
                No fractional shares or scrip representing fractional shares shall
                be
                issued upon the exercise of this Warrant. As to any fraction of a
                share
                which Holder would otherwise be entitled to purchase upon such exercise,
                the Company shall pay a cash adjustment in respect of such final
                fraction
                in an amount equal to such fraction multiplied by the Exercise
                Price.

            

    

     

    
      	
            	vi)	
              Charges,
                Taxes and Expenses.
                Issuance of certificates for Warrant Shares shall be made without
                charge
                to the Holder for any issue or transfer tax or other incidental expense
                in
                respect of the issuance of such certificate, all of which taxes and
                expenses shall be paid by the Company, and such certificates shall
                be
                issued in the name of the Holder or in such name or names as may
                be
                directed by the Holder; provided,
                however,
                that in the event certificates for Warrant Shares are to be issued
                in a
                name other than the name of the Holder, this Warrant when surrendered
                for
                exercise shall be accompanied by the Assignment Form attached hereto
                duly
                executed by the Holder; and the Company may require, as a condition
                thereto, the payment of a sum sufficient to reimburse it for any
                transfer
                tax incidental thereto.

            

    

    
      
        
        

      

      
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            	vii)	
              Closing
                of Books.
                The Company will not close its stockholder books or records in any
                manner
                which prevents the timely exercise of this Warrant, pursuant to the
                terms
                hereof.

            

    

     

    
      	Section
              3.	
              Certain Adjustments.

            

    

     

    
      	
            	a)	
              Stock
                Dividends and Splits.
                If the Company, at any time while this Warrant is outstanding: (A)
                pays a
                stock dividend or otherwise make a distribution or distributions
                on shares
                of its Common Stock or any other equity or equity equivalent securities
                payable in shares of Common Stock (which, for avoidance of doubt,
                shall
                not include any shares of Common Stock issued by the Company pursuant
                to
                this Warrant), (B) subdivides outstanding shares of Common Stock
                into a
                larger number of shares, (C) combines (including by way of reverse
                stock
                split) outstanding shares of Common Stock into a smaller number of
                shares,
                or (D) issues by reclassification of shares of the Common Stock any
                shares
                of capital stock of the Company, then in each case the Exercise Price
                shall be multiplied by a fraction of which the numerator shall be
                the
                number of shares of Common Stock (excluding treasury shares, if any)
                issued and outstanding before such event and of which the denominator
                shall be the number of shares of Common Stock issued and outstanding
                after
                such event and the number of shares issuable upon exercise of this
                Warrant
                shall be proportionately adjusted. Any adjustment made pursuant to
                this
                Section 3(a) shall become effective immediately after the record
                date for
                the determination of stockholders entitled to receive such dividend
                or
                distribution and shall become effective immediately after the effective
                date in the case of a subdivision, combination or
                re-classification.

            

    

     

    
      	 	
              b)

            	
              Subsequent
                Equity Sales.
                If the Company or any Subsidiary thereof, as applicable, at any time
                while
                this Warrant is outstanding, shall offer, sell, grant any option
                to
                purchase or offer, sell or grant any right to reprice its securities,
                or
                otherwise dispose of or issue (or announce any offer, sale, grant
                or any
                option to purchase or other disposition) any Common Stock or Common
                Stock
                Equivalents entitling any Person to acquire shares of Common Stock,
                at an
                effective price per share less than the then Exercise Price (such
                issuances collectively, a “Dilutive
                Issuance”),
                as adjusted hereunder (if the holder of the Common Stock or Common
                Stock
                Equivalents so issued shall at any time, whether by operation of
                purchase
                price adjustments, reset provisions, floating conversion, exercise
                or
                exchange prices or otherwise, or due to warrants, options or rights
                per
                share which is issued in connection with such issuance, be entitled
                to
                receive shares of Common Stock at an effective price per share which
                is
                less than the Exercise Price, such issuance shall be deemed to have
                occurred for less than the Exercise Price), then, the Exercise Price
                shall
                be reduced to equal a price (calculated to the nearest whole cent
                (with
                one-half being rounded upward)) determined by multiplying the Exercise
                Price by a fraction, the numerator of which shall be the number of
                shares
                of Common Stock issued and outstanding immediately prior to such
                issue
                plus the number of shares of Common Stock which the aggregate gross
                consideration received by the Company for the total number of Additional
                Shares of Common Stock so issued would purchase at the Exercise Price
                in
                effect immediately prior to such Dilutive Issuance, and the denominator
                of
                which shall be the number of shares of Common Stock outstanding
                immediately prior to such Dilutive Issuance plus the number of such
                Additional Shares of Common Stock so issued. Such adjustment shall
                be made
                whenever such Common Stock or Common Stock Equivalents are issued.
                

            

    

    
      
        
        

      

      
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              c)

            	
              Calculations.
                All calculations under this Section 3 shall be made to the nearest
                cent or
                the nearest 1/100th of a share, as the case may be. The number of
                shares
                of Common Stock outstanding at any given time shall not includes
                shares of
                Common Stock owned or held by or for the account of the Company,
                and the
                description of any such shares of Common Stock shall be considered
                on
                issue or sale of Common Stock. For purposes of this Section 3, the
                number
                of shares of Common Stock deemed to be issued and outstanding as
                of a
                given date shall be the sum of the number of shares of Common Stock
                (excluding treasury shares, if any) issued and
                outstanding.

            

    

     

    
      	
            	d)	
              Notice
                to Holders.
                

            

    

     

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to this Section 3, the Company
      shall promptly mail to each Holder a notice setting forth the Exercise Price
      after such adjustment and setting forth a brief statement of the facts requiring
      such adjustment. 

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Company shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Company shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights;; (D) the
      Company shall authorize the voluntary or involuntary dissolution, liquidation
      or
      winding up of the affairs of the Company; then, in each case, the Company shall
      cause to be mailed to the Holder at its last addresses as it shall appear upon
      the Warrant Register of the Company, at least 20 calendar days prior to the
      applicable record or effective date hereinafter specified, a notice stating
      the
      date on which a record is to be taken for the purpose of such dividend,
      distribution, redemption, rights or warrants, or if a record is not to be taken,
      the date as of which the holders of the Common Stock of record to be entitled
      to
      such dividend, distributions, redemption, rights or warrants are to be
      determined or; provided,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing the date of such notice to the effective date of the
      event triggering such notice.

    
      
        
        

      

      
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              e)

            	
              Fundamental
                Transaction.
                If, at any time while this Warrant is outstanding, (A) the Company
                effects
                any merger or consolidation of the Company with or into another Person,
                (B) the Company effects any sale of all or substantially all of its
                assets
                in one or a series of related transactions, (C) any tender offer
                or
                exchange offer (whether by the Company or another Person) is completed
                pursuant to which holders of Common Stock are permitted to tender
                or
                exchange their shares for other securities, cash or property, or
                (D) the
                Company effects any reclassification of the Common Stock or any compulsory
                share exchange pursuant to which the Common Stock is effectively
                converted
                into or exchanged for other securities, cash or property (in any
                such
                case, a “Fundamental
                Transaction”),
                then, upon any subsequent conversion of this Warrant, the Holder
                shall
                have the right to receive, for each Warrant Share that would have
                been
                issuable upon such exercise absent such Fundamental Transaction,
                at the
                option of the Holder, (a) upon exercise of this Warrant, the number
                of
                shares of Common Stock of the successor or acquiring corporation
                or of the
                Company, if it is the surviving corporation, and Alternate Consideration
                receivable upon or as a result of such reorganization, reclassification,
                merger, consolidation or disposition of assets by a Holder of the
                number
                of shares of Common Stock for which this Warrant is exercisable
                immediately prior to such event or (b) cash equal to the value of
                this
                Warrant as determined in accordance with the Black-Scholes option
                pricing
                formula (the “Alternate
                Consideration”).
                For purposes of any such exercise, the determination of the Exercise
                Price
                shall be appropriately adjusted to apply to such Alternate Consideration
                based on the amount of Alternate Consideration issuable in respect
                of one
                share of Common Stock in such Fundamental Transaction, and the Company
                shall apportion the Exercise Price among the Alternate Consideration
                in a
                reasonable manner reflecting the relative value of any different
                components of the Alternate Consideration. If holders of Common Stock
                are
                given any choice as to the securities, cash or property to be received
                in
                a Fundamental Transaction, then the Holder shall be given the same
                choice
                as to the Alternate Consideration it receives upon any exercise of
                this
                Warrant following such Fundamental Transaction. To the extent necessary
                to
                effectuate the foregoing provisions, any successor to the Company
                or
                surviving entity in such Fundamental Transaction shall issue to the
                Holder
                a new warrant consistent with the foregoing provisions and evidencing
                the
                Holder’s right to exercise such warrant into Alternate Consideration. The
                terms of any agreement pursuant to which a Fundamental Transaction
                is
                effected shall include terms requiring any such successor or surviving
                entity to comply with the provisions of this paragraph (f) and insuring
                that this Warrant (or any such replacement security) will be similarly
                adjusted upon any subsequent transaction analogous to a Fundamental
                Transaction.

            

    

    
      
        
        

      

      
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              f)

            	
              Exempt
                Issuance.
                Notwithstanding the foregoing, no adjustments, Alternate Consideration
                nor
                notices shall be made, paid or issued under this Section 3 in respect
                of
                an Exempt Issuance.

            

    

     

    
      	 	
              g)

            	
              Voluntary
                Adjustment By Company.
                The Company may at any time during the term of this Warrant reduce
                the
                then current Exercise Price to any amount and for any period of time
                deemed appropriate by the Board of Directors of the
                Company.

            

    

     

    
      	
            	Section
              4.	
              Transfer
                of Warrant.

            

    

     

    
      	 	
              a)

            	
              Transferability.
                Subject to compliance with any applicable securities laws and the
                conditions set forth in Sections 5 and 4(d) hereof and to the provisions
                of Section 4.1 of the Purchase Agreement, this Warrant and all rights
                hereunder are transferable, in whole or in part, upon surrender of
                this
                Warrant at the principal office of the Company, together with a written
                assignment of this Warrant substantially in the form attached hereto
                duly
                executed by the Holder or its agent or attorney and funds sufficient
                to
                pay any transfer taxes payable upon the making of such transfer.
                Upon such
                surrender and, if required, such payment, the Company shall execute
                and
                deliver a new Warrant or Warrants in the name of the assignee or
                assignees
                and in the denomination or denominations specified in such instrument
                of
                assignment, and shall issue to the assignor a new Warrant evidencing
                the
                portion of this Warrant not so assigned, and this Warrant shall promptly
                be cancelled. A Warrant, if properly assigned, may be exercised by
                a new
                holder for the purchase of Warrant Shares without having a new Warrant
                issued. 

            

    

     

    
      	 	
              b)

            	
              New
                Warrants.
                This Warrant may be divided or combined with other Warrants upon
                presentation hereof at the aforesaid office of the Company, together
                with
                a written notice specifying the names and denominations in which
                new
                Warrants are to be issued, signed by the Holder or its agent or attorney.
                Subject to compliance with Section 4(a), as to any transfer which
                may be
                involved in such division or combination, the Company shall execute
                and
                deliver a new Warrant or Warrants in exchange for the Warrant or
                Warrants
                to be divided or combined in accordance with such
                notice.

            

    

    
      
        
        

      

      
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              c)

            	
              Warrant
                Register.
                The Company shall register this Warrant, upon records to be maintained
                by
                the Company for that purpose (the “Warrant
                Register”),
                in the name of the record Holder hereof from time to time. The Company
                may
                deem and treat the registered Holder of this Warrant as the absolute
                owner
                hereof for the purpose of any exercise hereof or any distribution
                to the
                Holder, and for all other purposes, absent actual notice to the
                contrary.

            

    

     

    
      	 	
              d)

            	
              Transfer
                Restrictions.
                If,
                at the time
                of the surrender of this Warrant in connection with any transfer
                of this
                Warrant, the transfer of this Warrant shall not be registered pursuant
                to
                an effective registration
                statement under the Securities Act
                and under
                applicable state securities or blue sky laws, the Company may require,
                as
                a condition of allowing such transfer (i) that the Holder or transferee
                of
                this Warrant, as the case may be, furnish to the Company a written
                opinion
                of counsel (which opinion shall be in form, substance and scope customary
                for opinions of counsel in comparable transactions) to the effect
                that
                such transfer may be made without
                registration under the
                Securities Act and under applicable state securities or blue sky
                laws,
                (ii) that the holder or transferee execute and deliver to the Company
                an
                investment letter in form and substance acceptable to the Company
                and
                (iii) that the transferee be an “accredited investor” as defined in Rule
                501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the
                Securities Act or a qualified institutional buyer as defined in Rule
                144A(a) under the Securities Act.

            

    

     

    
      	
            	Section
              5.	
              Redemption
                by the Company.
                This Warrant may be redeemed by the Company by providing at least
                14 days
                prior written notice to the Holder (the “Redemption Notice”) of its
                intention to redeem the Warrant for a payment of $0.001 per Warrant
                Share.
                The Redemption Notice shall state the date upon which the redemption
                shall
                take place (the “Redemption Date”). After receipt of the Redemption
                Notice, the Holder shall have the right to exercise the Warrant at
                any
                time prior to the Redemption Date. Anything to the contrary herein
                notwithstanding, the Company shall not and may not deliver a Redemption
                Notice unless (i) the average VWAP for the 10 Trading Days immediately
                prior to the Redemption Notice (the “Lookback Period”) are equal to or
                greater than 2.5 times the then current Exercise Price, (ii) the
                average
                daily volume of the Common Stock during the Lookback Period is at
                least
                50,000 shares and (iii) there is an effective registration statement
                covering the resale of the Warrant
                Shares.

            

    

     

    
      	
            	Section
              6.	
              Miscellaneous.

            

    

     

    
      	 	
              a)

            	
              Title
                to Warrant.
                Prior to the Termination Date and subject to compliance with applicable
                laws and Section 4 of this Warrant, this Warrant and all rights hereunder
                are transferable, in whole or in part, at the office or agency of
                the
                Company by the Holder in person or by duly authorized attorney, upon
                surrender of this Warrant together with the Assignment Form annexed
                hereto
                properly endorsed. The transferee shall sign an investment letter
                in form
                and substance reasonably satisfactory to the
                Company.

            

    

     

    
      
        
        

      

      
        9
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          15

        
          

        

      

      
        
        

      

    

     

    
      	 	
              b)

            	
              No
                Rights as Shareholder Until Exercise.
                This Warrant does not entitle the Holder to any voting rights or
                other
                rights as a shareholder of the Company prior to the exercise hereof.
                Upon
                the surrender of this Warrant and the payment of the aggregate Exercise
                Price (or by means of a cashless exercise), the Warrant Shares so
                purchased shall be and be deemed to be issued to such Holder as the
                record
                owner of such shares as of the close of business on the later of
                the date
                of such surrender or payment.

            

    

     

    
      	 	
              c)

            	
              Loss,
                Theft, Destruction or Mutilation of Warrant.
                The Company covenants that upon receipt by the Company of evidence
                reasonably satisfactory to it of the loss, theft, destruction or
                mutilation of this Warrant or any stock certificate relating to the
                Warrant Shares, and in case of loss, theft or destruction, of indemnity
                or
                security reasonably satisfactory to it (which, in the case of the
                Warrant,
                shall not include the posting of any bond), and upon surrender and
                cancellation of such Warrant or stock certificate, if mutilated,
                the
                Company will make and deliver a new Warrant or stock certificate
                of like
                tenor and dated as of such cancellation, in lieu of such Warrant
                or stock
                certificate.

            

    

     

    
      	 	
              d)

            	
              Saturdays,
                Sundays, Holidays, etc.
                If the last or appointed day for the taking of any action or the
                expiration of any right required or granted herein shall be a Saturday,
                Sunday or a legal holiday, then such action may be taken or such
                right may
                be exercised on the next succeeding day not a Saturday, Sunday or
                legal
                holiday.

            

    

     

    
      	 	
              e)

            	
              Authorized
                Shares.
                The Company covenants that during the period the Warrant is outstanding,
                it will reserve from its authorized and unissued Common Stock a sufficient
                number of shares to provide for the issuance of the Warrant Shares
                upon
                the exercise of any purchase rights under this Warrant. The Company
                further covenants that its issuance of this Warrant shall constitute
                full
                authority to its officers who are charged with the duty of executing
                stock
                certificates to execute and issue the necessary certificates for
                the
                Warrant Shares upon the exercise of the purchase rights under this
                Warrant. The Company will take all such reasonable action as may
                be
                necessary to assure that such Warrant Shares may be issued as provided
                herein without violation of any applicable law or regulation, or
                of any
                requirements of the Trading Market upon which the Common Stock may
                be
                listed. 

            

    

     

    
      
        
        

      

      
        10
          of
          15

        
          

        

      

      
        
        

      

    

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    
      	 	
              f)

            	
              Jurisdiction.
                All questions concerning the construction, validity, enforcement
                and
                interpretation of this Warrant shall be determined in accordance
                with the
                provisions of the Purchase
                Agreement.

            

    

     

    
      	 	
              g)

            	
              Restrictions.
                The Holder acknowledges that the Warrant Shares acquired upon the
                exercise
                of this Warrant, if not registered, will have restrictions upon resale
                imposed by state and federal securities
                laws.

            

    

     

    
      	 	
              h)

            	
              Nonwaiver
                and Expenses.
                No course of dealing or any delay or failure to exercise any right
                hereunder on the part of Holder shall operate as a waiver of such
                right or
                otherwise prejudice Holder’s rights, powers or remedies, notwithstanding
                the fact that all rights hereunder terminate on the Termination Date.
                If
                the Company willfully and knowingly fails to comply with any provision
                of
                this Warrant, which results in any material damages to the Holder,
                the
                Company shall pay to Holder such amounts as shall be sufficient to
                cover
                any costs and expenses including, but not limited to, reasonable
                attorneys’ fees, including those of appellate proceedings, incurred by
                Holder in collecting any amounts due pursuant hereto or in otherwise
                enforcing any of its rights, powers or remedies
                hereunder.

            

    

     

    
      	 	
              i)

            	
              Notices.
                Any notice, request or other document required or permitted to be
                given or
                delivered to the Holder by the Company shall be delivered in accordance
                with the notice provisions of the Purchase
                Agreement.

            

    

     

    
      
        
        

      

      
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          15

        
          

        

      

      
        
        

      

    

     

    
      	 	
              j)

            	
              Limitation
                of Liability.
                No provision hereof, in the absence of any affirmative action by
                Holder to
                exercise this Warrant or purchase Warrant Shares, and no enumeration
                herein of the rights or privileges of Holder, shall give rise to
                any
                liability of Holder for the purchase price of any Common Stock or
                as a
                stockholder of the Company, whether such liability is asserted by
                the
                Company or by creditors of the
                Company.

            

    

     

    
      	 	
              k)

            	
              Remedies.
                Holder, in addition to being entitled to exercise all rights granted
                by
                law, including recovery of damages, will be entitled to specific
                performance of its rights under this Warrant. The Company agrees
                that
                monetary damages would not be adequate compensation for any loss
                incurred
                by reason of a breach by it of the provisions of this Warrant and
                hereby
                agrees to waive the defense in any action for specific performance
                that a
                remedy at law would be adequate.

            

    

     

    
      	 	
              l)

            	
              Successors
                and Assigns.
                Subject to applicable securities laws, this Warrant and the rights
                and
                obligations evidenced hereby shall inure to the benefit of and be
                binding
                upon the successors of the Company and the successors and permitted
                assigns of Holder. The provisions of this Warrant are intended to
                be for
                the benefit of all Holders from time to time of this Warrant and
                shall be
                enforceable by any such Holder or holder of Warrant
                Shares.

            

    

     

    
      	 	
              m)

            	
              Amendment.
                This Warrant may be modified or amended or the provisions hereof
                waived
                with the written consent of the Company and the holders of at least
                51% of
                the unexercised Warrant Shares then issuable pursuant to all
                Warrants.

            

    

     

    
      	 	
              n)

            	
              Severability.
                Wherever possible, each provision of this Warrant shall be interpreted
                in
                such manner as to be effective and valid under applicable law, but
                if any
                provision of this Warrant shall be prohibited by or invalid under
                applicable law, such provision shall be ineffective to the extent
                of such
                prohibition or invalidity, without invalidating the remainder of
                such
                provisions or the remaining provisions of this
                Warrant.

            

    

     

    
      	 	
              o)

            	
              Headings.
                The headings used in this Warrant are for the convenience of reference
                only and shall not, for any purpose, be deemed a part of this
                Warrant.

            

    

     

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

    
      
        
        

      

      
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          15

        
          

        

      

      
        
        

      

    

    

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

    

    Dated:
      _________________, 2008

     

    
      	
              CYBERDEFENDER
                CORPORATION

            
	 
	 
	
              Name:
                Gary Guseinov

              Title:
                Chief Executive Officer

            

    

    
      
        
        

      

      
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          15

        
          

        

      

      
        
        

      

    

    NOTICE
      OF EXERCISE

    

    TO:
      CYBERDEFENDER CORPORATION

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2) Payment
      shall be in lawful money of the United States.

     

    (3) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    
      	 	
              _______________________________

            
	 	 
	
              Tax
                ID Number

            	
              _______________________________
                

            

    

    

    The
      Warrant Shares shall be delivered to the following:

    

    
      	 	
              _______________________________

            
	 	 
	 	
              _______________________________

            
	 	 
	 	
              _______________________________

            

    

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

    

    Name
      of
      Investing Entity:
      _______________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      _______________________________________________________________________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT
      FORM

     

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    
      	 	
              Holder’s Signature:

            	
              _____________________________

            
	 	 	 
	 	
              Holder’s
                Address:

            	
              _____________________________

            
	 	 	 
	 	
               

            	
              _____________________________ 

            

    

    

    Signature
      Guaranteed: ___________________________________________

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.REGISTRATION
        RIGHTS AGREEMENT

      

      This
        Registration Rights Agreement (this “Agreement”)
        is
        made and entered into as of __________________________, 2008, between
        CyberDefender Corporation, a California corporation (the “Company”),
        and
        the purchaser signatory hereto (the, “Purchaser”).    

      

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

      

      The
        Company and the Purchaser hereby agree 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:

      

      “Additional
        Registrable Securities”
means
        (i) up to 3,393,378 shares of Common Stock issuable upon the exercise of
        outstanding Common Stock Purchase Warrants of the Company issued to investors
        pursuant to that certain Securities Purchase Agreement dated September 12,
        2006,
        (ii) shares of Common Stock or shares underlying Common Stock Equivalents
        issued
        or issuable in lieu of cash as payment of interest and liquidated damages
        under
        the Company’s 10% Secured Convertible Debentures due September 9, 2009 and the
        Registration Rights Agreement of the Company dated September 12, 2006, and
        (iii)
        up to 3,250,000 shares of Common Stock issuable upon exercise of warrants
        issued
        or issuable to one or more consultants of the Company.

      

      “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 120th
        day
        following the Filing Date 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 the Company first knows, or reasonably should
        have known, that such additional Registration Statement is required hereunder;
        provided,
        however,
        in the
        event the Company is notified by the Commission that one 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 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
        60th
        calendar
        day following the last closing date of the Offering, which shall be the last
        closing date reported by the Company on Form 8-K filed with the Commission
        under
        Item 3.02 thereof, and, with respect to any additional Registration Statements
        which may be required pursuant to Section 3(c), the 90th
        day
        following the date on which the Company first knows, or reasonably should
        have
        known that such additional Registration Statement is required
        hereunder.

      

      “Holder”
or
        “Holders”
means
        the holder or holders, as the case may be, from time to time of Registrable
        Securities initially acquired by the Purchaser pursuant to the Purchase
        Agreement.

      

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

      

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

      

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

      

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

      

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

      

      “Registrable
        Securities”
means
        (i) all Note Shares, (ii) all Warrant Shares, (iii) any securities issued
        or
        issuable upon any stock split, dividend or other distribution recapitalization
        or similar event with respect to the foregoing and (iv) any additional shares
        issuable in connection with any anti-dilution provisions in the Notes and
        Warrants.

      
        

        
          
            
            

          

          
            2
              of
              23

            
              

            

          

          
            
            

          

        

         

      

      “Registration
        Statement”
means
        the registration statements 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 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.

      

      “Rule
        424”
means
        Rule 424 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 purpose
        and
        effect as such Rule.

      

      
        	
                 

              	
                2.

              	
                Registration

              

      

      

      (a)
        The
        Company shall prepare and file with the Commission a Registration Statement
        covering the resale of 100% of the Registrable Securities and the Additional
        Registrable Securities for an offering to be made on a continuous basis pursuant
        to Rule 415 (or such lesser amount in accordance with the Commission’s current
        interpretations and guidance for such offerings). The Registration Statement
        shall be on Form S-1 (except if the Company is not then eligible to register
        for
        resale the Registrable Securities on Form S-1, in which case such registration
        shall be on another appropriate form in accordance herewith) and shall contain
        (unless otherwise directed by the Holders) substantially the “Plan of
        Distribution” attached hereto as Annex
        A.
        Subject
        to the terms of this Agreement, the Company shall use its best efforts to
        cause
        the 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 as determined
        by
        the counsel to the Company pursuant to a written opinion letter to such effect,
        addressed and acceptable to the Company’s transfer agent (the “Effectiveness
        Period”).
        The
        Company shall immediately notify the Holders via facsimile of the effectiveness
        of the Registration Statement on the same day that the Company receives
        notification of the effectiveness from the Commission. Failure to so notify
        the
        Holder within 1 Trading Day of such notification shall be deemed an Event
        under
        Section 2(b).

      
        

        
          
            
            

          

          
            3
              of
              23

            
              

            

          

          
            
            

          

        

      

      

      (b)
        If:
        (i) a Registration Statement is not filed on or prior to its Filing Date,
        or
        (ii) the Company fails to file with the Commission a request for acceleration
        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 a Registration Statement will
        not
        be “reviewed,” or not subject to further review; or (iii) a Registration
        Statement filed or required to be filed hereunder is not declared effective
        by
        the Commission by its Effectiveness Date; or (iv) after the Effectiveness
        Date,
        a Registration Statement ceases for any reason to remain continuously effective
        as to all Registrable Securities for which it is required to be effective
        such
        that the Holders are not permitted to utilize the Prospectus therein to resell
        such Registrable Securities for more than an aggregate of 30 calendar days
        during any 12-month period (which need not be consecutive Trading Days) (any
        such failure or breach being referred to as an “Event”,
        and
        for purposes of clause (ii) or (iii) 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 (iv) the date on which such 30 calendar
        day
        period, as 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%
        of the outstanding principal of the Note for any Registrable Securities then
        held by such Holder for the first 30 days (or part thereof) after the
        180th
        day or
        270th
        days, as
        the case may be, and an additional 1% for any subsequent 30-day period (or
        part
        thereof), thereafter. If the Company fails to pay any partial liquidated
        damages
        pursuant to this Section in full within seven days after the date payable,
        the
        Company will pay interest thereon at a rate of 10% 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. Anything
        to the
        contrary notwithstanding, total liquidated damages hereunder shall be capped
        at
        10% of the outstanding principal amount of the Notes. In its sole discretion,
        at
        the Company’s election, the Company may pay any and all liquidated damages
        accrued hereunder, and interest thereon, in shares of Common Stock (which
        shall
        not constitute Registrable Securities), valued at the average VWAP for the
        five
        Trading Days preceding the applicable due date(s) of such liquidated damages,
        provided that such average VWAP exceeds the greater of $1.00 and the then
        effective conversion price and exercise price of the Company’s 10% Secured
        Convertible Debentures due September 9, 2009 and the Common Stock Purchase
        Warrants of the Company issued on September 12, 2006, respectively.

      

      3.Registration
        Procedures

      

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

      

      
        
          
          

        

        
          4
            of
            23

          
            

          

        

        
          
          

        

      

      

      (a) Not
        less
        than 5 Trading Days prior to the filing of each Registration Statement or
        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 conduct a reasonable
        investigation within the meaning of the Securities Act. The Company shall
        not
        file the 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 such documents and provided further
        that the Company will not be subject to the liquidated damages payments
        referenced in Section 2(b) if such objection is delivered to the Company
        within
        such 5 Trading Day period. Each Holder agrees to furnish to the Company a
        completed Questionnaire in the form attached to this Agreement as Annex B
        (a
“Selling
        Holder Questionnaire”)
        not
        less than two Trading Days prior to the Filing Date or by the end of the
        fourth
        Trading Day following the date on which such Holder receives a draft of the
        applicable Registration Statement hereunder. 

      

      (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 as promptly as reasonably possible provide the Holders true and complete
        copies of all correspondence from and to the Commission relating to a
        Registration Statement; 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 at the written election of the Holder, 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 100% of the number of Registrable Securities
        that may not then be sold without volume restrictions under Rule 144 of the
        Securities Act, if any.

      
        

        
          
            
            

          

          
            5
              of
              23

            
              

            

          

          
            
            

          

        

         

      

      (d) Notify
        the Holders of Registrable Securities to be sold (which notice shall, pursuant
        to clauses (ii) 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
        five Trading Days 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; (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 (the Company shall provide true and complete copies
        thereof and all written responses thereto to each of the Holders); and (C)
        with
        respect to a Registration Statement or any post-effective amendment, when
        the
        same has become effective; (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 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) 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 the Registration Statement or
        Prospectus; provided that any and all of such information shall remain
        confidential to each Holder until such information otherwise becomes public,
        unless disclosure by a Holder is required by law; provided,
        further,
        notwithstanding each Holder’s agreement to keep such information confidential,
        the Holders make 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 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.

      

      
        
          
          

        

        
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      (f) Furnish
        to each Holder, without charge, at least one conformed copy of each such
        Registration Statement and each amendment thereto, including financial
        statements and schedules, all documents incorporated or deemed to be
        incorporated therein by reference to the extent requested by such Person,
        and
        all exhibits to the extent requested by such Person (including those previously
        furnished or incorporated by reference) promptly after the filing of such
        documents with the Commission.

      

      (g) Promptly
        deliver to each Holder, without charge, as many copies of the Prospectus
        or
        Prospectuses (including each form of prospectus) and each amendment or
        supplement thereto as such Persons may reasonably request in connection with
        resales by the Holder of Registrable Securities. 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
        on
        any notice pursuant to Section 3(d).

      

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

      

      (i) If
        requested by the Holders, cooperate with the 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,
        of all restrictive legends, and to enable such Registrable Securities to
        be in
        such denominations and registered in such names as any such Holders may
        request.

      

      (j) Upon
        the
        occurrence of any event contemplated by this Section 3, 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 (ii) through (v) 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(j) to suspend the availability of a Registration Statement and
        Prospectus, subject to the payment of partial liquidated damages pursuant
        to
        Section 2(b), for a period not to exceed 60 days (which need not be consecutive
        days) in any 12 month period.

      
        

        
          
            
            

          

          
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      (k) Comply
        with all applicable rules and regulations of the Commission.

      

      (l) 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 person thereof that has 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, any liquidated
        damages that are accruing at such time as to such Holder only shall be tolled
        and any Event that may otherwise occur solely because of such delay shall
        be
        suspended as to such Holder only, 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 the 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 (A) with respect to filings required to be made with the
        Trading Market on which the Common Stock is then listed for trading, and
        (B) 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 determination
        of
        the eligibility of the Registrable Securities for investment under the laws
        of
        such jurisdictions as requested by the Holders), (ii) printing expenses
        (including, without limitation, expenses of printing certificates for
        Registrable Securities and of printing prospectuses if the printing of
        prospectuses is reasonably requested by the holders of a majority of the
        Registrable Securities included in a Registration Statement), (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 or, except to the extent
        provided for in the Transaction Documents, any legal fees or other costs
        of the
        Holders.

      
        

        
          
            
            

          

          
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      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, agents, brokers (including
        brokers who offer and sell Registrable Securities as principal as a result
        of a
        pledge or any failure to perform under a margin call of Common Stock),
        investment advisors and employees 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, agents and employees
        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 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 form of prospectus
        or
        supplement thereto, in light of the circumstances under which they were made)
        not misleading, except to the extent, but only to the extent, that (i) such
        untrue statements or omissions are based solely upon 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 approved by such Holder expressly for use in a Registration
        Statement, such Prospectus or such form of 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)(ii)-(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.

      
        

        
          
            
            

          

          
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      (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
        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 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
        (1)
        such untrue statements or omissions are based solely upon 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
        the Registration Statement (it being understood that the Holder has approved
        Annex A hereto for this purpose), such Prospectus or such form of Prospectus
        or
        in any amendment or supplement thereto or (2) in the case of an occurrence
        of an
        event of the type specified in Section 3(d)(ii)-(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 such 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 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. 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.

      
        

        
          
            
            

          

          
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      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 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
        applicable to such actions for which such Indemnified Party is not entitled
        to
        indemnification hereunder, determined based upon the relative faults of the
        parties.

      

      (d)
        Contribution.
        If a
        claim for indemnification under Section 5(a) or 5(b) is unavailable to an
        Indemnified Party (by reason of public policy or otherwise), then each
        Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
        contribute to the amount paid or payable by such Indemnified Party as a result
        of such Losses, 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 reasonable 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
        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, except in the case of fraud
        by
        such Holder.

       

      
        
          
          

        

        
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      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 obligations
        under this Agreement, each Holder or the Company, as the case may be, in
        addition to being entitled to exercise all rights granted by law and under
        this
        Agreement, including recovery of damages, will be entitled to specific
        performance of its rights under this Agreement. 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 waive the defense
        that
        a remedy at law would be adequate.

      

      (b) [Intentionally
        Omitted]

      

      (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 the Registration Statement.

      

      (d) Discontinued
        Disposition.
        Each
        Holder agrees by its acquisition of such Registrable Securities that, upon
        receipt of a notice from the Company of the occurrence of any event of the
        kind
        described in Section 3(d), such Holder will forthwith discontinue disposition
        of
        such Registrable Securities under a Registration Statement until such Holder’s
        receipt of the copies of the supplemented Prospectus and/or amended Registration
        Statement, or until it is advised in writing (the “Advice”)
        by the
        Company that the use of the applicable Prospectus may be resumed, and, in
        either
        case, has received copies of any additional or supplemental filings that
        are
        incorporated or deemed to be incorporated by reference in such Prospectus
        or
        Registration Statement. The Company 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).

       

      
        
          
          

        

        
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    (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 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, that, the Company shall not be required to register any
      Registrable Securities pursuant to this Section 6(e) that are eligible for
      resale without restriction pursuant to Rule 144promulgated under the Securities
      Act or that are the subject of a then effective Registration
      Statement.

    

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of not less than 51% of the then
      outstanding Registrable Securities. Notwithstanding the foregoing, a waiver
      or
      consent to depart from the provisions hereof with respect to a matter that
      relates exclusively to the rights of 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 immediately preceding sentence.
      

    

    (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 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. 

    

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

    
      
        
        

      

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

    

    (l) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any 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 of reference only and shall
      not
      limit or otherwise affect the meaning 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.

    

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

    
      
        
        

      

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

    

    
      	
              CYBERDEFENDER
                CORPORATION

               

            
	
              
                

              

              Name:
                Gary Guseinov

              Title:
                Chief Executive Officer

            

    

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    
      
        
        

      

      
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    [SIGNATURE
      PAGE OF HOLDERS TO CYBERDEFENDER RRA]

     

    Name
      of
      Investing Entity: __________________________

    Signature
      of Authorized Signatory of Investing Entity:
      __________________________

    Name
      of
      Authorized Signatory: _________________________

    Title
      of
      Authorized Signatory: __________________________

    

    [SIGNATURE
      PAGES CONTINUE]

    
      
        
        

      

      
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    Plan
      of Distribution

    

    Each
      Selling Stockholder (the “Selling
      Stockholders”)
      of the
      common stock (“Common
      Stock”)
      of
      CyberDefender Corporation, a California corporation (the “Company”)
      and
      any of their pledgees, assignees and successors-in-interest may, from time
      to
      time, sell any or all of their shares of Common Stock on the Trading Market
      or
      any other stock exchange, market or trading facility on which the shares are
      traded or in private transactions. These sales may be at fixed or negotiated
      prices. A Selling Stockholder may use any one or more of the following methods
      when selling shares:

     

    
      	 	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits Purchasers;

            

    

     

    
      	 	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	 	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	 	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	 	
              ·

            	
              privately
                negotiated transactions;

            

    

     

    
      	 	
              ·

            	
              settlement
                of short sales entered into after the date of this prospectus;
                

            

    

     

    
      	 	
              ·

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	 	
              ·

            	
              a
                combination of any such methods of
                sale;

            

    

     

    
      	 	
              ·

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or otherwise;
                or

            

    

     

    
      	 	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities
      Act”),
      if
      available, rather than under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. Each
      Selling Stockholder does not expect these commissions and discounts relating
      to
      its sales of shares to exceed what is customary in the types of transactions
      involved.

    
      
        
        

      

      
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    In
      connection with the sale of our common stock or interests therein, the Selling
      Stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume. The Selling
      Stockholders may also sell shares of our common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities. The Selling
      Stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Each Selling Stockholder has informed the
      Company that it does not have any agreement or understanding, directly or
      indirectly, with any person to distribute the Common Stock.

     

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares. The Company has agreed to indemnify
      the Selling Stockholders against certain losses, claims, damages and
      liabilities, including liabilities under the Securities Act. 

     

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act. In addition, any securities covered by this prospectus
      which qualify for sale pursuant to Rule 144 under the Securities Act may be
      sold
      under Rule 144 rather than under this prospectus. Each Selling Stockholder
      has
      advised us that they have not entered into any agreements, understandings or
      arrangements with any underwriter or broker-dealer regarding the sale of the
      resale shares. There is no underwriter or coordinating broker acting in
      connection with the proposed sale of the resale shares by the Selling
      Stockholders.

     

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations under Rule 144 under the Securities
      Act
      or any other rule of similar effect or (ii) all of the shares have been sold
      pursuant to the prospectus or Rule 144 under the Securities Act or any other
      rule of similar effect. The resale shares will be sold only through registered
      or licensed brokers or dealers if required under applicable state securities
      laws. In addition, in certain states, the resale shares may not be sold unless
      they have been registered or qualified for sale in the applicable state or
      an
      exemption from the registration or qualification requirement is available and
      is
      complied with.

    
      
        
        

      

      
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    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to our common stock for a period of two business
      days prior to the commencement of the distribution. In addition, the Selling
      Stockholders will be subject to applicable provisions of the Exchange Act and
      the rules and regulations thereunder, including Regulation M, which may limit
      the timing of purchases and sales of shares of our common stock by the Selling
      Stockholders or any other person. We will make copies of this prospectus
      available to the Selling Stockholders and have informed them of the need to
      deliver a copy of this prospectus to each purchaser at or prior to the time
      of
      the sale.

    
      
        
        

      

      
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    Annex
      B

     

    CyberDefender
      Corporation

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock, no par value (the “Common
      Stock”),
      of
      CyberDefender Corporation, a California corporation (the “Company”),
      (the
“Registrable
      Securities”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      registration statement on Form S-1 (the “Registration
      Statement”)
      for
      the registration and resale under Rule 415 of the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      of
      the Registrable Securities, in accordance with the terms of the Registration
      Rights Agreement, dated as of ________________, 2008 (the “Registration
      Rights Agreement”),
      among
      the Company and the Purchaser named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms not otherwise defined herein shall have the
      meanings ascribed thereto in the Registration Rights Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus.

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it and listed below in Item 3 (unless otherwise specified under such Item
      3)
      in the Registration Statement.

     

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    
      	1.	
              Name.

            

    

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	 
	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

    

     

    
      	 
	 

    

    
      
        
        

      

      
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              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly you indirectly alone or with others has power to vote or
                dispose
                of the securities covered by the
                questionnaire):

            

    

     

    
      	 
	 

    

     

    
      2.Address
        for Notices to Selling Securityholder:

    

     

    
      	 
	 
	 
	
              Telephone:

            	 
	
              Fax:

            	 
	
              Contact Person:

            	 

    

    

    
      3.Beneficial
        Ownership of Registrable Securities:

    

     

    
      	 	
              (a)

            	
              Type
                and Principal Amount of Registrable Securities beneficially
                owned:

            

    

     

    
      	 
	 
	 
	 

    

     

    
      4.Broker-Dealer
        Status:

    

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
       ̈   
      No
       ̈

     

    
      	 	
              Note:

            	
              If
                yes, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      	 	
              (b)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes
       ̈   
      No
       ̈

     

    
      	 	
              (c)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    Yes
       ̈   
      No
       ̈

     

    
      
        
        

      

      
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              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      5.Beneficial
        Ownership of Other Securities of the Company Owned by the Selling
        Securityholder.

    

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    
      	 	
              (a)

            	
              Type
                and Amount of Other Securities beneficially owned by the Selling
                Securityholder:

            

    

     

    
      	 
	 
	 

    

    

    
      6.Relationships
        with the Company:

    

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

     

    
      	 
	 
	 

    

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 6 and the inclusion of such
      information in the Registration Statement and the related prospectus. The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus.

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

    

      
        	
                Dated:
                  ________________________

              	
                Beneficial
                  Owner: _________________________________

              
	 	 
	 	
                By:

              	 
	 	 	
                Name:

              
	 	 	
                Title:

              

      

    

     

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

    
      
        
        

      

      
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